The bill H. 5568 aims to amend the South Carolina Code of Laws by adding Article 11 to Chapter 1, Title 6, which establishes a framework for the transfer of water systems between political subdivisions. It defines key terms such as "eligible system transferor," which refers to a political subdivision with fewer than 2,500 residents that is in arrears for water supplied under a long-term contract. The bill allows these eligible transferors to transfer their water systems to supplying subdivisions without a referendum, provided that the transfer is full and in fee simple, and that the transferee assumes all rights and responsibilities for the system.

Additionally, the bill outlines the conditions under which the transferee can set rates and manage the transferred system, including the possibility of granting an exclusive franchise for operation and imposing a franchise fee on the transferee. It also establishes a process for filing the transfer agreement with the clerk of court, ensuring that any challenges to the transfer must be made within 21 days of filing. Amendments to the transfer agreement can be made by mutual consent of both governing bodies and must also be recorded to become incontestable. The act will take effect upon the Governor's approval.