S*0868(Rat #0225, Act #0205 of 2016)  General Bill, By Young, Massey, Setzler and 
Nicholson

Similar(H 4326)
 AN ACT TO AMEND SECTION 58-7-10, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO RIGHTS, POWERS, AND PRIVILEGES OF TELEGRAPH AND TELEPHONE
 COMPANIES CONFERRED ON PIPELINE COMPANIES, SO AS TO PROVIDE THAT CERTAIN
 RIGHTS, POWERS, PRIVILEGES DO NOT APPLY TO PRIVATE, FOR-PROFIT PIPELINE
 COMPANIES, AND TO PROVIDE THAT THE PROVISIONS OF THIS ACT ARE REPEALED ON JUNE
 30, 2019. - ratified title

   06/03/15  Senate Introduced and read first time (Senate Journal-page 13)
   06/03/15  Senate Referred to Committee on Judiciary
                     (Senate Journal-page 13)
   06/04/15  Senate Referred to Subcommittee: Young (ch), Hutto, Massey
   02/10/16  Senate Committee report: Favorable with amendment
                     Judiciary (Senate Journal-page 10)
   02/11/16         Scrivener's error corrected
   02/11/16         Scrivener's error corrected
   02/18/16  Senate Amended (Senate Journal-page 22)
   02/19/16         Scrivener's error corrected
   02/25/16  Senate Read second time (Senate Journal-page 24)
   02/25/16  Senate Roll call Ayes-38  Nays-0 (Senate Journal-page 24)
   03/03/16  Senate Read third time and sent to House
                     (Senate Journal-page 11)
   03/08/16  House  Introduced and read first time (House Journal-page 9)
   03/08/16  House  Referred to Committee on Judiciary
                     (House Journal-page 9)
   05/24/16  House  Committee report: Favorable with amendment
                     Judiciary (House Journal-page 12)
   05/31/16  House  Requests for debate-Rep(s). Whipper, Henderson,
                     Brannon, Nanney, Bedingfield, Atwater, VS Moss,
                     Gilliard, Rhyal, Ott, King, Willis, Weeks,
                     Crosby, Neal, Hardee, Jefferson
                     (House Journal-page 17)
   06/01/16  House  Amended (House Journal-page 120)
   06/01/16  House  Read second time (House Journal-page 120)
   06/01/16  House  Roll call Yeas-89  Nays-3 (House Journal-page 122)
   06/02/16  House  Read third time and returned to Senate with
                     amendments (House Journal-page 42)
   06/02/16  Senate Concurred in House amendment and enrolled
                     (Senate Journal-page 39)
   06/02/16         Ratified R 225
   06/03/16         Signed By Governor
   06/09/16         Effective date 06/03/16
   06/09/16         Act No. 205

(A205, R225, S868)

AN ACT TO AMEND SECTION 58-7-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RIGHTS, POWERS, AND PRIVILEGES OF TELEGRAPH AND TELEPHONE COMPANIES CONFERRED ON PIPELINE COMPANIES, SO AS TO PROVIDE THAT CERTAIN RIGHTS, POWERS, PRIVILEGES DO NOT APPLY TO PRIVATE, FOR-PROFIT PIPELINE COMPANIES, AND TO PROVIDE THAT THE PROVISIONS OF THIS ACT ARE REPEALED ON JUNE 30, 2019.

Whereas, petroleum and petroleum products are a national commodity, yet are commodities that may pose a threat to the property and health of South Carolinians if not properly transported or stored; and

Whereas, questions have recently arisen regarding petroleum pipeline siting in South Carolina, as well as questions regarding responsibility for monitoring and for inspecting these pipelines; and

Whereas, the General Assembly recognizes the importance of economic development in this State, yet recognizes there must be a balance between economic development and the protection of the health, safety, welfare, and property of this state's citizens; and

Whereas, the General Assembly also recognizes the importance of, and intends to defend, the rights of private property owners within this State, rights which have been established within the South Carolina Constitution, the laws of this State, and case law; and

Whereas, the South Carolina Attorney General's Office issued an opinion on July 1, 2015, which states there is "substantial doubt" that Section 58-7-10 intended to extend the public power of eminent domain to any private petroleum or oil pipeline company pipeline that is not defined in, or otherwise outside of the regulatory scope of, Title 58 of the South Carolina Code of Laws; and

Whereas, the General Assembly does not find that a private, for-profit pipeline company, which includes a publicly traded for-profit company, that is not defined as a "public utility" in Title 58 of the 1976 Code of Laws meets the current "public use" requirement for purposes of eminent domain; and

Whereas, natural gas and petroleum companies utilize pipelines as a method to transport their respective products and both types of companies are primarily regulated by federal law; however, due to the differences in the products these companies provide, the federal government has differing statutory and regulatory provisions for natural gas and petroleum companies, and the majority of the states differentiate between natural gas and petroleum companies, including South Carolina; and

Whereas, unlike other companies that utilize pipelines that are defined in Title 58 as a public utility, such as natural gas companies and water companies, petroleum companies are not defined in Title 58 as a public utility; and

Whereas, the General Assembly finds that South Carolina Code Section 58-7-10 was not intended to confer the right of eminent domain to a private, for-profit company, including a publicly traded for-profit company, that is not defined as a "public utility" in Title 58 of the 1976 Code of Laws; and

Whereas, a recent pipeline leak of over 300,000 gallons of petroleum product near Belton, South Carolina, has demonstrated the risks inherent in pipeline transportation of refined petroleum products; and

Whereas, the cleanup of refined petroleum products from soil and groundwater is an expensive, imperfect, and time consuming process; and

Whereas, the financial and technical abilities of the party responsible for the cleanup of any refined petroleum products released from a pipeline are critical to ensure that the responsibility for the cleanup is not imposed upon the citizens of South Carolina; and

Whereas, it is the duty of the General Assembly to establish the policy for the authorization of use for eminent domain and to provide statutory processes and procedures to balance the interests of the state's health, safety, welfare, and property of this state's citizens without unnecessarily impeding or discouraging economic development; and

Whereas, it is the duty of the General Assembly to address any potential expansion of the use of eminent domain authority in this State in a meaningful and deliberative manner. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

Certain rights, powers, and privileges inapplicable to private, for-profit pipeline companies

SECTION    1.    Section 58-7-10 of the 1976 Code is amended to read:

"Section 58-7-10.    (A)    Subject to the same duties and liabilities, all the rights, powers, and privileges conferred upon telegraph and telephone companies under Article 17, Chapter 9 of this title are hereby granted to pipeline companies incorporated under the laws of this State or to such companies incorporated under the laws of any other state when such companies have complied with the laws of this State regulating the doing of business herein by foreign corporations.

(B)    The provisions of this section and of Chapter 2, Title 28 do not apply to private, for-profit pipeline companies, including publicly traded for-profit companies, that are not defined within this title as a public utility."

Provisions to sunset June 30, 2019

SECTION    2.    Unless the General Assembly amends Section 58-7-10 in any manner before the passing of three years after the effective date of this act or if the language of subsection (B) is reenacted or otherwise extended by the General Assembly, the provisions of subsection (B), as added by this act, are repealed June 30, 2019.

Time effective

SECTION    3.    This act takes effect upon approval by the Governor.

Ratified the 2nd day of June, 2016.

Approved the 3rd day of June, 2016.