County of Florence v. West Florence Fire District , 422 S.C. 316 ( 2018 )


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  •         THE STATE OF SOUTH CAROLINA
    In The Supreme Court
    County of Florence and Florence County Council,
    Respondents,
    v.
    West Florence Fire District, purported to have been
    created by S.C. Act No. 183 of 2014, the West Florence
    Fire District Commission, purported to have been created
    by S. C. Act. No. 183 of 2014, David Brown, Dustin
    Fails, Linda Lang Gipco, Richard Hewitt and C. Allen
    Matthews, each in his or her purported official capacity
    as a member of the West Florence Fire District
    Commission and the State of South Carolina, Defendants,
    of whom West Florence Fire District, purported to have
    been created by S.C. Act No. 183 of 2014, the West
    Florence Fire District Commission, purported to have
    been created by S. C. Act. No. 183 of 2014, David
    Brown, Dustin Fails, Linda Lang Gipco, Richard Hewitt
    and C. Allen Matthews, each in his or her purported
    official capacity as a member of the West Florence Fire
    District Commission are Appellants.
    Appellate Case No. 2017-000693
    Appeal From Florence County
    The Honorable J. C. Nicholson, Jr., Circuit Court Judge
    Opinion No. 27776
    Heard December 13, 2017 – Filed March 7, 2018
    AFFIRMED
    Blake A. Hewitt, of Bluestein Thompson Sullivan LLC,
    of Columbia and Wallace H. Jordan, Jr., of Florence, for
    Appellants.
    Steve A. Matthews, of Haynsworth Sinkler Boyd, P.A.,
    of Columbia and D. Malloy McEachin, Jr., of McEachin
    & McEachin, P.A., of Florence, for Respondents.
    Attorney General Alan Wilson and Deputy Solicitor
    General J. Emory Smith, Jr., for Defendant, State of
    South Carolina.
    JUSTICE HEARN: In this declaratory judgment action, Florence County
    challenges the validity of the West Florence Fire District, arguing that it violates this
    Court's decision in Wagener v. Smith, 
    221 S.C. 438
    , 
    71 S.E.2d 1
     (1952) and conflicts
    with the state's constitutional provisions concerning special legislation and home
    rule. See S.C. Const. art. III, § 34, and S.C. Const. art. VIII, § 7. The circuit court
    held in favor of Florence County on all three grounds, and the West Florence Fire
    District appealed. We affirm on Article VIII, § 7 grounds.
    FACTUAL BACKGROUND
    Prior to 2014, Florence County (the County) operated several special tax
    districts to fund fire protection services provided by not-for-profit fire departments.
    Each district implemented its own capital expense programs and bore responsibility
    for its own expenditures. To fund these services, the County assessed a millage rate
    based on ad valorem property taxes within each district, resulting in different millage
    rates between districts. For example, shortly before the County restructured the
    districts, residents in West Florence were taxed at a rate of 8 mills while Johnsonville
    residents were taxed at a rate of 40 mills.
    In 2014, in an effort to reform the method for financing fire protection
    services, the County hired a firm to analyze and recommend improvements to the
    existing scheme, one of which was to consolidate the districts into one district to
    achieve a more equitable millage rate scheme and to ensure adequate funding. Under
    the consolidated district, the County planned to assess a unified rate and provide
    more administrative oversight in an effort to lower millage rates for many residents,
    cut the insurance premiums for the district, and enact a more equitable funding
    scheme. However, while the proposal expected to curtail the high millage rates for
    many residents, the rate in West Florence would nearly triple.
    The County conducted public hearings and, over the course of a few months,
    garnered enough public support for the consolidation proposal. However, residents
    of West Florence, upset about their increased millage rate, looked to their
    representatives in the General Assembly for help. In response, the General Assembly
    passed Act No. 183 in the spring of 2014 (the Act), creating the West Florence Fire
    District which encompassed part of Florence County—mainly West Florence—and
    a negligible portion of Darlington County that consisted of the right-of-way along a
    one-mile stretch of Interstate 95 and three small parcels of land adjacent to the
    interstate.
    The General Assembly explained the purpose of the Act, stating:
    [T]hat a certain portion of Darlington County primarily consisting of
    Interstate 95 from the Florence County line northward to Exit 169 in
    Darlington County is presently served by fire departments in Florence
    County because no fire department in Darlington County provides
    service to this area. This therefore presents concerns for the safety and
    well-being of citizens residing and traveling in this area in addition to
    placing additional burdens on fire personnel in Florence County which
    are called on to provide fire service in this area. The General Assembly
    has therefore determined to create a joint county fire district in the same
    manner other joint county fire districts have been established pursuant
    to this chapter, consisting of areas in two counties, to solve this
    problem, and to provide fire service to all areas of the district on the
    most economically feasible basis possible.
    
    S.C. Code Ann. § 4-23-1000
     (Supp. 2017) (emphasis added). When the County
    challenged the constitutionality of the Act, the General Assembly reacted by passing
    an amendment (Amended Act) that: (1) clarified the precise boundary of the district;
    (2) added part of a neighborhood in Darlington County1 to the district; (3) transferred
    property from the prior district to West Florence District; and (4) included a sunset
    provision whereby the amendment would expire five years after its effective date.
    In response, the County filed a declaratory judgment action, arguing both the
    Act and the Amended Act were unconstitutional under S.C. Const. art. VIII, § 7,
    1
    The neighborhood consisted of about 100 lots and straddles the Darlington and
    Florence County lines.
    S.C. Const. art. III, § 34, and Wagener. The West Florence District countered that
    statutes are presumed constitutional and the County failed to meet its burden in
    demonstrating otherwise. The circuit court ruled in favor of the County on all three
    grounds. First, the court held Wagener prohibited the General Assembly from
    establishing an entity that provided the same service in an area served by Florence
    County, noting that the rule was applied to a special tax district in North Carolina
    Electric Membership Corporation. v. White, 
    301 S.C. 274
    , 
    391 S.E.2d 571
     (1990)
    (holding that a city council could not create a special tax district to perform water
    and sewage services in the same area where the General Assembly had previously
    created a special purpose district). Second, the circuit court found the Act violated
    the rule against special legislation under Article III, § 34. Lastly, the circuit court
    held Article VIII, § 7's prohibition against laws for a specific county rendered the
    legislation unconstitutional, even though three parcels of Darlington County were
    included.
    STANDARD OF REVIEW
    A party challenging the constitutionality of a statute has a high hurdle to
    overcome because all statutes are presumed constitutional. Curtis v. State, 
    345 S.C. 557
    , 569, 
    549 S.E.2d 591
    , 597 (2001). Furthermore, "[A] legislative enactment will
    be declared unconstitutional only when its invalidity appears so clearly as to leave
    no room for reasonable doubt that it violates some provision of the constitution."
    Westvaco Corp. v. S.C. Dep't of Revenue, 
    321 S.C. 59
    , 62–63, 
    467 S.E.2d 739
    , 741
    (1995).
    DISCUSSION
    The West Florence District contends the Act does not violate Article VIII, §
    7 because the district encompasses more than one county. Moreover, it argues the
    circuit court improperly weighed the wisdom of the legislation, thereby encroaching
    on the prerogative of the General Assembly. On the other hand, the County asserts
    the negligible portion of Darlington County does not transform what is essentially a
    special purpose district for West Florence into a multicounty district. Additionally,
    the County claims the circuit court did not impermissibly weigh the wisdom of the
    legislation; instead, the court merely inquired into the territorial composition of the
    West Florence District to determine whether there was sufficient regional impact to
    constitutionally justify its creation.
    We begin by recognizing the General Assembly's plenary power to enact
    legislation. Hampton v. Haley, 
    403 S.C. 395
    , 403, 
    743 S.E.2d 258
    , 262 (2013) (citing
    Clarke v. S.C. Pub. Serv. Auth., 
    177 S.C. 427
    , 438–39, 
    181 S.E. 481
    , 486 (1935)
    ("[T]he General Assembly has plenary power over all legislative matters unless
    limited by some constitutional provision.")). One constitutional limitation is
    commonly referred to as "home rule," which this Court has recognized as a means
    to determine how power is allocated between the General Assembly and local
    governments. See Williams v. Town of Hilton Head Island, 
    311 S.C. 417
    , 422, 
    429 S.E.2d 802
    , 804–05 (1993) (citing Southern Bell Telephone and Telegraph Company
    v. City of Aiken, 
    279 S.C. 269
    , 271, 
    306 S.E.2d 220
    , 221 (1983) ("Article VIII of the
    South Carolina Constitution was completely revised for the purpose of
    accomplishing home rule; thus granting renewed autonomy to local government.")).
    Prior to the 1970s, "Columbia [was] the seat of county government," as the General
    Assembly had the power to control local functions. Knight v. Salisbury, 
    262 S.C. 565
    , 571, 
    206 S.E.2d 875
    , 877 (1974). However, the state constitution was amended
    to reverse this allocation of power,2 and under Article VIII, § 7, the General
    Assembly cannot enact legislation "relating to a specific county which relates to
    those powers, duties, functions and responsibilities, which under the mandated
    systems of government, are set aside for counties." Kleckley v. Pulliam, 
    265 S.C. 177
    , 183, 
    217 S.E.2d 217
    , 220 (1975). This transfer of power "reflects a serious
    effort upon the part of the electorate and the General Assembly to restore local
    government to the county level." Knight, 
    262 S.C. at 569
    , 
    206 S.E.2d at 876
    . While
    Article VIII, § 7 did not dissolve pre-home rule special purpose districts, it does
    2
    Addressing special purpose districts within a county, the Court in Knight warned:
    There is a sound reason for curtailing the power of the General
    Assembly to create special purpose districts within a county. If, despite
    the prohibition of laws for a specific county, the General Assembly may
    continue to carve a given county into special purpose districts, a
    frightful conflict would exist between the power of the General
    Assembly and the power of the county government. Each county could
    be carved into enumerable special districts. Commission[s] or other
    agencies might be established for each, with each given the power to
    perform a function intended to have been vested in the county
    government. Such a result could well be chaotic and home rule intended
    by Section 7 would be frustrated in whole or in part since the result
    could well be that the governing body in each county contemplated by
    the draftsmen of Section 7 would have little or no power left. To point
    out the potential results of such a theory compels its rejection.
    Knight, 
    262 S.C. at
    572–73, 
    206 S.E.2d at 878
    .
    apply to legislation enacted post-home rule that concerns a special purpose district
    created prior to the rule. Spartanburg Sanitary Sewer Dist. v. City of Spartanburg,
    
    283 S.C. 67
    , 80, 
    321 S.E.2d 258
    , 265 (1984).
    South Carolina jurisprudence is clear that a special purpose district limited to
    one county violates home rule. In Knight, the Court held that a special purpose
    district established by the General Assembly and limited to providing recreational
    facilities in a portion of Dorchester County was unconstitutional because it violated
    Article VIII, § 7. Knight, 
    262 S.C. at 572
    , 
    206 S.E.2d at 878
    . In discussing home
    rule, the Court noted, "It is clear that Section 7 sought to put an end to this practice,
    at least insofar as it relates to special purpose districts within a given county." 
    Id.
    However, the Court expressly left open the question of whether Article VIII, § 7
    prevents multicounty special purpose districts. Id. at 573, 
    206 S.E.2d at 878
    .
    The Court again addressed the limits of home rule in Kleckley, which involved
    a pre-home rule special purpose district funded in part by legislation enacted after
    home rule. In that case, the Court denied an Article VIII, § 7 challenge to legislation
    that funded improvements to airport facilities within the Richland-Lexington Airport
    District. Kleckley, 
    265 S.C. at 180
    , 
    217 S.E.2d at 218
    . In order to fund the
    improvements, the General Assembly imposed an annual ad valorem tax on property
    within the district. 
    Id.
     In response to a taxpayer lawsuit claiming the legislation
    violated Article VIII, § 7, the Court upheld the provision because it concerned two
    counties, and more significantly, because the district's purpose triggered a state-wide
    interest rather than a purely local concern limited to one county. Id. at 185, 
    217 S.E.2d at 221
    . Emphasizing the importance of the airport district as a state interest,
    the Court ultimately held the legislation was "not a county function within the
    meaning of Article VIII, Section 7, but one of state concern." Id. at 187, 
    217 S.E.2d at 222
     (emphasis added). Thus, the Court weighed the function of the district more
    heavily than the territorial boundary.
    Just one year after Kleckley, the Court reached a different conclusion in
    Torgerson v. Craver, 
    267 S.C. 558
    , 563, 
    230 S.E.2d 228
    , 230 (1976), which also
    involved funding for facilities within an airport district. This time the Court relied
    heavily on the fact that the Charleston County Airport District was solely within
    Charleston County. Id. at 563, 
    230 S.E.2d at 230
    . Additionally, the Court stated that
    although the airport served travelers from across the region, the county was capable
    of solving any problems within the district, unlike in Kleckley, where neither
    Richland nor Lexington County alone could regulate the district. 
    Id.
     While the
    physical boundary of the district was important, the Court clarified its holding in
    Kleckley, noting that the bond legislation in Kleckley was not for a specific county
    but rather for a region.
    Kleckley and Torgerson demonstrate the conjunctive nature of the analysis—
    in determining whether legislation violates home rule, a district's physical
    boundaries and function must be taken into account. In this case, the West Florence
    District relies in part on a 2011 South Carolina Attorney General's opinion that
    focuses almost entirely on the district's physical boundary. S.C. Att'y. Gen. Op. dated
    Apr. 25, 2011 (
    2011 WL 1740746
    ). Addressing the South Lynches Fire District, the
    2011 opinion reversed an earlier opinion which concluded that district was probably
    unconstitutional. 
    Id.
     (reversing S.C. Att'y. Gen. Op. dated June 16, 1983 (
    1983 WL 181917
    )).
    The 2011 opinion acknowledged earlier attorney general opinions that
    suggested the Court's decisions in Kleckley and Torgerson stood for the proposition
    that the nature of the service—whether regional in scope or purely local—and
    physical territory are both important in the analysis. 
    Id.
     However, the 2011 opinion
    articulated the principle that only physical territory is relevant in determining
    whether Article VIII, § 7 is violated. Nevertheless, the 2011 opinion addressed a fire
    district split approximately 60% in Florence County and 40% in Williamsburg
    County. We find that scenario readily distinguishable from the instant case, where
    the vast majority of the challenged district is located in one county and only a
    comparatively small portion is located in an adjacent county.3
    Moreover, the Court noted in Kleckley that since the General Assembly could
    not legally pass a special act to curtail the governing body's county-wide powers, it
    was likewise impermissible for the General Assembly to achieve the same result
    indirectly. Kleckley, 
    265 S.C. at 184
    , 
    217 S.E.2d at 220
    . Here, home rule precludes
    local legislation—fire protection services—specific to West Florence. See 
    S.C. Code Ann. §4-9-30
    (5) (1986 & Supp. 2017) (stating fire protection services are part of a
    county government's enumerated powers); 
    S.C. Code Ann. §4-19-10
     (1986 & Supp.
    2017) (enacting the Fire Protection Services Act). Therefore, it follows the General
    Assembly cannot indirectly accomplish the same goal merely by adding a small
    amount of acreage of another county; to do so would render Article VIII, § 7
    meaningless. Kleckley and Torgerson demonstrate that where the legislation's
    3
    It appears from the record that the three parcels in Darlington County total one-
    tenth of a square mile and represent less than 1% of the district.
    function is local and within a county, home rule mandates the County is the proper
    body to address the matter rather than the General Assembly.
    Accordingly, we find the Act creating the West Florence District violates
    home rule. Because our analysis of Article VIII, § 7 is dispositive, we decline to
    reach the district's remaining two grounds for reversal. Young v. Charleston Cty.
    Sch. Dist., 
    397 S.C. 311
    , 310, 
    725 S.E.2d 107
    , 111 (2012) (declining to address
    additional grounds after reaching a dispositive issue).
    CONCLUSION
    In summary, we affirm the circuit court and hold the creation of the West
    Florence District violates Article VIII, § 7 of the South Carolina Constitution
    because the district is not truly a multicounty district. To hold that three parcels—
    totaling one-tenth of a square mile—is sufficient to remove the legislation from the
    purview of § 7 would eviscerate home rule.
    Accordingly, we AFIIRM and REMAND the matter to the circuit court for
    its approval of a plan to transition the district to county control.
    BEATTY, C.J., KITTREDGE, FEW and JAMES, JJ., concur.