S*246 Session 106 (1985-1986)
S*0246(Rat #0257, Act #0169 of 1985) General Bill, By I.E. Lourie, W.R. Lee and
N.A. Theodore
A Bill to amend Section 58-5-30, Code of Laws of South Carolina, 1976,
relating to public utilities, so as to exempt operations of municipal
utilities and regional transportation authorities from Public Service
Commission regulation; to amend Chapter 25 of Title 58, Code of Laws of South
Carolina, 1976, relating to regional transportation authorities, so as to
change and add definitions; provide for the activation and dissolution of the
authorities; provide for membership on the governing bodies of authorities;
provide for the addition of members; provide for officers, quorum, vacancies,
removal of members, the employment of an executive director, employees, and
powers of authorities; provide for funding the operations of authorities,
audits, budgets, and accounting; provide that authorities must be nonprofit
and shall exist for public purposes and exempt them from taxation; to include
them in programs provided for state agencies and subdivisions; provide for
continuance of existing authorities; and to amend the Code of Laws of South
Carolina, 1976, by adding Sections 58-25-90 and 58-25-100, so as to provide
for the responsibility of the operation of the transportation services; and to
provide for the use of funds generated by the authority.-amended titl
02/13/85 Senate Introduced and read first time SJ-405
02/13/85 Senate Referred to Committee on Judiciary SJ-406
03/05/85 Senate Recalled from Committee on Judiciary SJ-748
03/05/85 Senate Referred to Committee on Transportation SJ-749
03/19/85 Senate Committee report: Favorable with amendment
Transportation SJ-911
03/20/85 Senate Amended SJ-955
03/20/85 Senate Read second time SJ-955
03/20/85 Senate Ordered to third reading with notice of
amendments SJ-955
03/27/85 Senate Amended SJ-1198
03/27/85 Senate Read third time and sent to House SJ-1198
03/28/85 House Introduced and read first time HJ-1920
03/28/85 House Referred to Committee on Labor, Commerce and
Industry HJ-1920
04/10/85 House Recalled from Committee on Labor, Commerce and
Industry HJ-2212
04/10/85 House Committed to Committee on Education and Public
Works HJ-2212
04/23/85 House Committee report: Favorable Education and Public
Works HJ-2612
04/25/85 House Debate adjourned HJ-2709
04/30/85 House Debate adjourned HJ-2745
05/01/85 House Objection by Rep. P. Bradley, Blackwell, Mattos &
Fair HJ-2818
05/09/85 House Objection withdrawn by Rep. Fair HJ-3114
05/22/85 House Special order, set for following consideration of
H 2384 (Under H 2956) HJ-3361
05/29/85 House Continued HJ-3618
05/30/85 House Reconsidered HJ-3677
05/30/85 House Debate interrupted HJ-3678
06/03/85 House Debate interrupted HJ-3803
06/04/85 House Amended HJ-3859
06/04/85 House Read second time HJ-3868
06/05/85 House Read third time HJ-3938
06/05/85 House Returned HJ-3938
06/06/85 Senate House amendment amended SJ-2864
06/06/85 House Concurred in Senate amendment and enrolled HJ-4048
06/18/85 Ratified R 257
06/24/85 Signed By Governor
06/24/85 Effective date 07/01/85
06/24/85 Act No. 169
07/10/85 Copies available
(A169, R257, S246)
AN ACT TO AMEND SECTION 58-5-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING
TO PUBLIC UTILITIES, SO AS TO EXEMPT OPERATIONS OF MUNICIPAL UTILITIES AND
REGIONAL TRANSPORTATION AUTHORITIES FROM PUBLIC SERVICE COMMISSION REGULATION;
TO AMEND CHAPTER 25 OF TITLE 58, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING
TO REGIONAL TRANSPORTATION AUTHORITIES, SO AS TO CHANGE AND ADD DEFINITIONS;
PROVIDE FOR THE ACTIVATION AND DISSOLUTION OF THE AUTHORITIES; PROVIDE FOR
MEMBERSHIP ON THE GOVERNING BODIES OF AUTHORITIES; PROVIDE FOR THE ADDITION OF
MEMBERS; PROVIDE FOR OFFICERS, QUORUM, VACANCIES, REMOVAL OF MEMBERS, THE
EMPLOYMENT OF AN EXECUTIVE DIRECTOR, EMPLOYEES, AND POWERS OF AUTHORITIES;
PROVIDE FOR FUNDING THE OPERATIONS OF AUTHORITIES, AUDITS, BUDGETS, AND
ACCOUNTING; PROVIDE THAT AUTHORITIES MUST BE NONPROFIT AND SHALL EXIST FOR PUBLIC
PURPOSES AND EXEMPT THEM FROM TAXATION; TO INCLUDE THEM IN PROGRAMS PROVIDED FOR
STATE AGENCIES AND SUBDIVISIONS; PROVIDE FOR CONTINUANCE OF EXISTING AUTHORITIES;
AND TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS
58-25-90 AND 58-25-100, SO AS TO PROVIDE FOR THE RESPONSIBILITY OF THE OPERATION
OF THE TRANSPORTATION SERVICES; AND TO PROVIDE FOR THE USE OF FUNDS GENERATED BY
THE AUTHORITY.
Be it enacted by the General Assembly of the State of South Carolina:
Commission not to have power to regulate
SECTION 1. Section 58-5-30 of the 1976 Code is amended to read:
"Section 58-5-30. Nothing contained in Articles 1, 3, and 5 of this chapter
shall give the Commission any power to regulate or interfere with public
utilities owned or operated by or on behalf of any municipality or regional
transportation authority (as defined in Chapter 25 of this Title) or their
agencies."
Regional Transportation Authority Law enacted
SECTION 2. Chapter 25 of Title 58 of the 1976 Code is amended to read:
"Chapter 25
Regional Transportation Authority Law
Section 58-25-10. This chapter is known and may be cited as the 'Regional
Transportation Authority Law'.
Section 58-25-20. As used in this chapter:
(1) 'Authority' means a regional transportation authority created pursuant
to this chapter.
(2) 'City' means any municipality with a population of five thousand or more
according to the latest United States Census of population located within the
service area of the authority.
(3) 'Consolidated government' means the governmental body formed by corporate
consolidation of municipal and county governments under the laws of this State
into a single local government entity.
(4) 'County' means any county of this State, all or any part of which may be
included in an 'urbanized area' as defined by the United States Bureau of the
Census and as further defined in this chapter.
(5) 'Metropolitan government' means any county or combination of contiguous
counties, municipality or combination of contiguous municipalities, or
combination of contiguous county or counties and municipality or municipalities,
or a consolidated government with a combined population of over fifty thousand
persons.
(6) 'Metropolitan planning organization' means the entity which has been
designated to carry on the continuing, comprehensive, cooperative transportation
planning process for the urbanized area.
(7) 'Municipality' means any incorporated city or town within the regional
transportation area.
(8) 'Operator' means any person engaged in, or intending to engage in, the
business of providing public transportation, but does not include a person
engaged primarily in the transportation of children to or from school or a person
or agency furnishing transportation solely for his or its employees or customers.
(9) 'Person' means any individual, public or private corporation, political
subdivision, government agency, municipality, industry, copartnership,
association, firm, trust, estate, or any other legal entity whatsoever.
(10) 'Public transportation' means every conveyance of human passengers by bus,
van, or any other surface vehicle as required for intrastate service which is
provided to the general public or selected groups on a regular and continuing
basis. Charter service and freight delivery are allowed as concomitant services.
(11) 'Public transportation system' means, without limitation, a combination
of real and personal property, structures, improvements, buildings, equipment,
plants, rolling stock, vehicle parking, or other facilities and rights-of-way,
or any combination, used or useful for the purposes of public transportation.
(12) 'Regional planning council' means that public agency created pursuant to
Article 3 of Chapter 7 of Title 6.
(13) 'Regional transportation area' means that area pursuant to the groupings
of counties as set forth in Article 3 of Chapter 7 of Title 6.
(14) 'Service area' means the area served by the regional transportation
authority and may be all or part of the area of jurisdiction of an authority and
in no event shall the service area contain less than fifty thousand population.
(15) 'Transportation facility' means the property or property rights, both real
and personal, of a type used for the establishment of public transportation
systems within the service area which have heretofore or may hereafter be
established by public bodies for the transportation of people and property from
place to place.
(16) 'Urbanized area' means an area so designated by the most recent United
States Census of Population.
Section 58-25-30. In order to activate a regional transportation authority the
following steps must be taken:
(1) A plan of service must be prepared. The plan of service must be
consistent with any locally adopted transportation plan for the area to be served
and must include but not be limited to:
(a) The area to be served.
(b) The procedures to be used to serve the area.
(c) The estimated capital and operating costs by year for the first five
years of operation, and the mechanism to be used to raise the local funds
necessary to support the operation.
(d) The source and amount of funds expected to be available to finance the
first year's capital and operating costs.
(2) Upon adoption of the plan of service, set forth in (1) above, by a
majority of the governing bodies of general purpose local governments within the
service area, an agreement to create an authority in conformity with the terms
of this chapter may be executed within the proposed service area of the
authority. The area to be served by the proposed authority must contain at least
fifty thousand population.
(3) Upon the execution of such agreement by the governing bodies of the cities
and the counties which include at least ninety percent of the population of the
proposed service area within their jurisdictions, the question of creating such
an authority under the terms of the executed agreement must be submitted for
ratification to the qualified electors within the proposed service area at a
general election or at a special election called for that purpose as set forth
in the agreement. Upon the approval of the majority of the voters within the
service area voting on the question, the agreement shall become operational and
the authority must be created not less than sixty days after the results of the
election are certified.
(4) The question to be placed before the electorate must state the service
area of the proposed authority (cities and counties involved) and the proposed
method of financing, including the level of tax to be initially imposed, and
membership on the board.
(5) Dissolution of the authority created pursuant to this chapter must be in
the same manner as that for creation of the authority as set forth in this
chapter. All resources of the authority including, but not limited to, real and
personal property, structures, improvements, buildings, equipment, plants,
rolling stock, vehicle improvements, vehicle parking, or other facilities and
rights-of-way must be disposed of and the proceeds distributed among the
authority's government members proportionate to their population.
(6) The adopted agreement and referendum may be revised in whole or in part
through repeating the process as stated in this section.
(7) The Plan of Service may be updated as required to remain consistent with
locally adopted transportation plans.
Section 58-25-35. The members of a regional transportation authority created
under authority of this chapter must be the cities within the service area as
defined by this chapter and the counties within the unincorporated areas or the
service area of the authority.
Section 58-25-40. The authority's board members, officers, and staff must be as
follows:
(1) The members of the authority must be represented on the governing board
of the authority by appointees of the governing bodies of the cities and counties
within the service area as set forth in Section 58-25-35. The appointees may be
elected officials of these local governing bodies and if so would serve in an ex
officio capacity. The governing board of the authority must be made up of not
more than two times the number of authority governmental members.
There must be at least five board members. The membership of the governing
board must be apportioned among the member cities and counties proportionate to
population within the authority's service area.
As many as three members of the governing board of any transportation authority
may be appointed by the Legislative Delegations of the member counties if
approved by the qualified electors within the proposed service area in accordance
with the procedures set forth in Section 58-25-30. No member government may have
less than one member on the board. County population must be determined after
subtracting the member city population in that county. The terms of the
representatives serving on the governing board of the authority must be staggered
so that the terms of approximately one-third of the governing board expire each
year. After the initial terms as set forth in the agreement to achieve staggered
terms, subsequent terms must be for a period of three years. Members of the
governing board of the authority may be reimbursed for expenses incurred in
connection with their service on the authority but they may not receive salaries,
per diem, or other compensation except that in cases of extensive services
rendered per diem may be paid by a two-thirds vote of the authority.
(2) No county or city may be a member in more than one authority except that
a metropolitan government may be a member of more than one authority when the
services provided by the authorities are different.
(3) Subsequent to the activation of the authority, contiguous counties or
cities not participating initially may become members of the authority with the
same benefits as the initial members after a majority vote of their electors
voting on the question in the procedure set forth in Section 58-25-30 and with
the approval by a majority vote of the board of the authority.
(4) The board of the authority shall elect one of its members as chairman, one
as vice-chairman, and other officers as may be necessary, to serve for one year
in that capacity or until their successors are elected and qualify. A majority
of the board constitutes a quorum. A vacancy on the board does not impair the
right of the authority to exercise all of its rights and perform all of its
duties. Upon the effective date of his appointment, or as soon thereafter as
practicable, each board member shall enter upon his duties.
(5) A board member of the authority may be removed from office by the governing
body which appointed him for misconduct, malfeasance, or neglect of duty in
office. Any vacancy so created must be filled as provided above.
(6) The authority may employ an executive director, who may serve as secretary
or treasurer, to serve at the pleasure of the authority. The executive director
may employ such employees as may be necessary for the proper administration of
the duties and functions of the authority and may determine the qualifications
of such persons. The authority shall adopt compensation plans for employees.
Section 58-25-50. The authority may:
(a) Purchase, lease, own, or operate or provide for the operation of
transportation facilities;
(b) Contract for public transportation services;
(c) Plan in concert with any appropriate local planning operation for public
transporation services;
(d) Exercise the power of eminent domain limited to right-of-way and
contiguous facility acquisition;
(e) Contract with other governmental agencies, private companies, and
individuals;
(f) Sue and be sued, implead and be impleaded, complain and defend in all
courts;
(g) Adopt, use, and alter at will a corporate seal;
(h) Acquire, purchase, hold, lease as a lessee, and use any franchise or
property, real, personal or mixed, tangible or intangible, or any interest
therein, necessary or desirable for carrying out the purposes of the authority,
and sell, lease as lessor, transfer, and dispose of any property or interest
therein acquired by it;
(i) Fix, alter, change, and establish rates, fees, fares, and other charges for
services or facilities of the authority. The rates, fees, and fares set forth
in the agreement approved by the electorate may not be increased more frequently
than annually. No single increase may exceed fifty percent;
(j) Establish public transportation routes and approve the alteration or
addition of routes based primarily on a detailed analysis or proposed use and
comprehensive cost analysis;
(k) Acquire and operate, or provide for the operation of, transportation
systems, public or private, within the area, the acquisition of a system to be
by negotiation and agreement between the authority and the operator of the system
to be acquired;
(l) Make contracts of every name and nature and execute all instruments
necessary or convenient for the carrying on of its business;
(m) Enter into management contracts with any person for the management of a
public transportation system owned or controlled by the authority for a period
of time, and under compensation and other terms and conditions, as may be
considered advisable by the authority;
(n) Contract for the services of attorneys, engineers, consultants, and agents
for any purpose of the authority;
(o) Borrow money and make and issue negotiable bonds, notes, or other evidences
of indebtedness;
(p) Accept gifts, grants, or loans of money or other property from and enter
into contracts, leases, or other transactions with and accept funds from federal,
state, or local governments, public or semipublic agencies or private individuals
or corporations and expend the funds and may carry out cooperative undertakings
and contracts;
(q) Do all acts necessary for the provision of public transportation services;
(r) To provide transportation services for residents of the service area to
destinations outside the service area;
(s) Promulgate regulations to carry out the provisions of this chapter.
Section 58-25-60. The intended mechanism for raising the necessary local funds
to support the operation of the authority must be set forth in the agreement
provided for in Section 58-25-30. The declaration of intended sources of local
funds does not preclude the use of other local, state, or federal sources which
shall subsequently become available except for state highway construction funds
which may not be used. The agreement may be amended specifically to recognize
new sources. Local funds may be generated from the following source of revenue,
notwithstanding other provisions of law. This source is not intended to be
exclusive.
A vehicle registration fee may be levied by the governing bodies of the member
cities and counties on the motor vehicles registered within the service area of
the authority. If this mechanism is used, the amount of the vehicle registration
fee must be set forth in the agreement. The authority shall request the members
of the General Assembly representing its service area to approve increases in the
registration fee. Unless these members of the General Assembly by majority vote
approve the increase, no increases may be imposed. This registration fee must
be added to the personal property tax notice collected as a part of the personal
property tax and the fee rebated to the authority.
Section 58-25-70. The authority must keep books of account, which must be
independently audited at least once in each calendar year. A copy of the audit
report must be provided to the member cities and counties. The authority must
make an annual report of its activities to the member cities and counties. The
authority must submit to the member cities and counties the annual operating and
capital budget proposed for each fiscal year, at least sixty days prior to the
beginning of the fiscal year. In the event a member city or county disagrees
with the proposed budget, it may set forth points of disagreement and transmit
its statement to the authority and other governing bodies of the member cities
and counties within thirty days of the receipt of the proposed budget. Budgets
must be adopted by a majority of the member governments. In the event a majority
of the governing bodies of the member cities and counties do not agree with the
proposed budget, the authority must convene a meeting of chief elected and
administrative officials of member governments to develop a budget which may be
acceptable to a majority of the member governments; a majority for the purposes
of this section, includes the governing bodies of the member cities and counties
representing more than one-half of the service area population. In the event a
budget acceptable to a majority of the member governments is not developed prior
to the beginning of its fiscal year, the authority shall continue to operate at
the budget levels of the previously approved budget. Any budget changes
requiring an increase in local funds in excess of ten percent during the budget
year must be approved as provided above for annual budgets.
Section 58-25-80. Each authority established, including any formed under Chapter
25 of Title 58 of the 1976 Code prior to the effective date of this chapter,
shall exist for nonprofit and public purposes and is a public agency, and it is
found and declared that the carrying out of the purpose of each authority is
exclusively for public benefit and its property is public property. No authority
shall pay any state or local ad valorem, income, sales, fuel, excise, or other
use taxes or other taxes from which municipalities and counties are exempt. The
South Carolina Tax Commission is responsible for promulgating any regulations
necessary to effect fully this provision for tax exemption. The authority or
operator providing public transportation on behalf of an authority may
participate in the State Retirement System and utilize the services of the State
Purchasing Department of the Division of General Services, the state insurance
program, including, but not limited to, all health programs, and any other joint
activity of the State carried on for the benefit of state agencies and political
subdivisions of the State. Operators providing public transportation on behalf
of an authority shall not pay state and local fuel taxes from which
municipalities and counties are exempt."
Responsibility of authority
SECTION 3. Chapter 25 of Title 58 of the 1976 Code is amended by adding:
"Section 58-25-90. The Regional Transportation Authority, through its
board, officers, and staff shall have sole responsibility for the operations of
the transportation services.
Section 58-25-100. All funds that the authority has generated locally must be
used to implement the current Plan of Service as provided for in Section
58-25-30, as amended by this act."
Existing authorities
SECTION 4. Any transportation authority formed under Chapter 25 of Title 58 of
the 1976 Code prior to the effective date of this act may continue to operate in
accordance with the terms and conditions of that law. However, as the terms of
appointees to the governing board expire, appointments and composition must be
in accordance with the provisions of Section 58-25-40 of the 1976 Code, as
amended by this act. If the authority desires to operate under the full terms
and conditions of Chapter 25 of Title 58, as amended by this act, with the
exception of the exercise of taxing power, the authority must comply with all
procedures set forth in that chapter, except those set forth in Sections 58-25-30
and 58-25-60. If the authority desires to operate under the full terms and
conditions of that chapter, as amended by this act, including the exercise of
taxing power, the authority must comply with all procedures set forth in that
chapter.
Governing boards
SECTION 5. If a majority of the member governments of any transportation
authority formed under Chapter 25 of Title 58 of the 1976 Code prior to the
effective date of this act agree, three members of the governing boards may be
appointed by a majority of the members of the legislative delegations of the
member counties.
Funds may not be used
SECTION 6. No presently existing transportation authority, agency, etc., may use
any transportation authority funds to promote the provisions of this act in an
election or referendum.
Time effective
SECTION 7. This act shall take effect July 1, 1985. |