H 4754

South Carolina General Assembly
126th Session, 2025-2026
Bill 4754
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION
33-31-1709 SO AS TO ESTABLISH NEUTRAL PRINCIPLES OF LAW GOVERNING THE
OWNERSHIP, TRANSFER, AND RELEASE OF TRUST INTERESTS IN REAL PROPERTY OF LOCAL
CHURCHES DISAFFILIATING WITH STATE OR NATIONAL RELIGIOUS ORGANIZATIONS WHICH
ASSERTS A TRUST INTEREST IN THE REAL PROPERTY IN CERTAIN CIRCUMSTANCES.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  Article 17, Chapter 31, Title 33 of the S.C. Code is
amended by adding:
    Section
33-31-1709.  (A) The purpose of
this section is to establish neutral principles of law governing the ownership,
transfer, and release of trust interests in real property used by local
churches affiliated with state or national religious organization conference.
This section governs civil property consequences when a local church
disaffiliates, but this section does not regulate doctrine, ecclesiastical
authority, internal governance, or matters of faith.
    (B)
For purposes of this section:
       (1)
"Local church" means a congregation, parish, or other local religious body
organized as a religious corporation under the provisions of this section.
       (2)
"Organization conference" means any state, regional, national, or international
religious body, denomination, convention, or conference with which a local
church is affiliated, and which asserts a trust interest in the real property
of the local church.
       (3)
"Real property" means all land, buildings, and improvements used by the local
church for religious, charitable, educational, or administrative purposes.
       (4)
"Financial investments" means monetary contributions by the organization
conference directly used for the acquisition, maintenance, improvement, or
capital renovation of the local church's real property.
    (C)
When a local church disaffiliates from an organization conference, the local
church shall retain ownership of its real and personal property, free and clear
of any trust, reversionary interest, or other claim asserted by the
organization conference, when the local church, in its sole discretion,
determines that:
       (1)
the organization conference, or a national conference of which it is a member,
has failed or refused to consistently uphold or abide by its own democratically
adopted laws, doctrines, bylaws, or governing documents, including disciplinary
rules, internal policies, or standards of conduct; and
       (2)
the failure described in item (1) materially affects the ongoing relationship
between the local church and the organization conference. A determination under
this subsection must be made by the body authorized by the local church's
governing documents and certified in writing; or
       (3)
the local church determines that such disaffiliation is in the best interests
of the church.
    (D)
When a local church disaffiliates, the local church shall reimburse the
organization conference for financial investments made by the organization
conference for the acquisition, maintenance, or improvement of the real
property used by the local church, as determined under subsection (E).
    (E)(1) Upon receiving written notice
that a local church has disaffiliated or intends to disaffiliate, the
organization conference shall provide the local church with a full,
transparent, itemized, and documented accounting of all financial investments
it has made in the acquisition, maintenance, or improvement of the real
property used by the local church. The accounting must include dates, amounts,
purposes, and supporting documentation.
       (2)
A disaffiliating local church may not be required to reimburse the organization
conference for:
  (a)
any amounts attributable to financial investments for the acquisition,
maintenance, or renovation of real property made by the local church itself; or
  (b)
any amounts contributed by the local church to the organization conference that
were allocated for general denominational purposes or for activities not
directly related to the real property at issue.
    (F)
When the reimbursement amount determined under subsection (E) has been paid,
the organization conference shall execute and deliver all documents necessary
to release, extinguish, or transfer any trust interest, lien, or encumbrance it
claims in the local church's real property. The release must be recorded in the
county where the property is located.
    (G)
All disputes arising under this section must be resolved exclusively under
neutral principles of law, without inquiry into or resolution of questions of
doctrine, discipline, ecclesiology, or internal church governance.
    (H)
The articles or bylaws of an organization conference may limit or abolish the
right of a religious corporation under this section.
SECTION 2.  This act takes effect upon approval
by the Governor.
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This web page was last updated on December 17, 2025 at 01:28 PM