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COMMITTEE REPORT
May 23, 2001
S. 280
S. Printed 5/23/01--S. [SEC 5/24/01 1:48 PM]
Read the first time February 6, 2001.
To whom was referred a Bill (S. 280) to amend Section 58-5-30, Code of Laws of South Carolina, 1976, relating to the exemption of municipal utilities from regulation by the Public Service Commission, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, page 1, beginning on line 31, by striking Section 58-5-30, as contained in SECTION 1, and inserting therein:
/ "Section 58-5-30. Nothing contained in Articles 1, 3, and 5 of this chapter shall give gives the Commission 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.
However, those public utilities owned or operated by or on behalf of a municipality furnishing water or sewer services that are required to comply with the provisions of Section 6-1-330(D) and fail to do so are subject to the jurisdiction of the commission." /
Amend the bill further, as and if amended, page 1, beginning on line 41, by striking Section 58-27-1010, as contained in SECTION 2, and inserting therein:
/ "Section 58-27-1010. The Commission commission shall must not regulate any contracts made by any municipality with its customers, and nothing in this chapter shall be construed as
permitting the regulation by the Commission commission of the rates to be charged by any municipal plant to any of its customers, whether these customers be are other municipalities, persons, firms, or corporations.
However, contracts or rates of public utilities owned or operated by or on behalf of a municipality furnishing water or sewer that are required to comply with the provisions of Section 6-1-330(D) and fail to do so are subject to the jurisdiction of the commission." /
Amend the bill further, as and if amended, by adding an appropriately numbered new SECTION to read:
/ SECTION ___. Section 6-1-330 of the 1976 Code is amended to read:
"Section 6-1-330. (A) A local governing body, by ordinance approved by a positive majority, is authorized to charge and collect a service or user fee. A local governing body must provide public notice of any new service or user fee being considered and the governing body is required to hold a public hearing on any proposed new service or user fee prior to final adoption of any new service or user fee. Public comment must be received by the governing body prior to the final reading of the ordinance to adopt a new service or user fee. A fee adopted or imposed by a local governing body prior to December 31, 1996, remains in force and effect until repealed by the enacting local governing body, notwithstanding the provisions of this section.
(B) The revenue derived from a service or user fee imposed to finance the provision of public services must be used to pay costs related to the provision of the service or program for which the fee was paid. If the revenue generated by a fee is five percent or more of the imposing entity's prior fiscal year's total budget, the proceeds of the fee must be kept in a separate and segregated fund from the general fund of the imposing governmental entity.
(C) If a governmental entity proposes to adopt a service or user fee to fund a service that was previously funded by property tax revenue, the notice required pursuant to Section 6-1-80 must include that fact in the text of the published notice.
(D) Any public utility owned or operated by or on behalf of a municipality furnishing water or sewer services outside its corporate limits that charge fees for these services that are at least fifty percent higher to residential users outside the corporate limits as compared to residential users inside the corporate limits must establish its user fee and rates based on a comprehensive cost of service study conducted in accordance with methods recognized by the American Water Works Association "Manual M1" or an equivalent standard. The study must be available for public inspection not less than fifteen days before the public hearing provided for in Section 6-1-330(A). Failure to comply with this subsection subjects these public utilities to the jurisdiction of the Public Service Commission as set forth in Sections 58-5-30 and 58-27-1010. The provisions of this subsection do not apply to any municipality which provides water or sewer service to less than one thousand taps outside its corporate limits." /
Renumber sections to conform.
Amend title to conform.
Majority favorable. Minority unfavorable.
ADDISON G. WILSON MAGGIE W. GLOVER
For Majority. For Minority.
EXPLANATION OF IMPACT:
The Public Service Commission has indicated that there would be an initial cost to the other funds category of approximately $200,000. This cost is comprised of $141,348 in personal services for 5.00 FTEs and $58,652 in other operating expenses. These expenses will be incurred from the regulation of 146 municipalities which provide water/sewer, electric services or both to individuals outside their municipal limits. After the first year, the $200,000 cost would be reimbursed through assessments to the new service providers.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 58-5-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXEMPTION OF MUNICIPAL UTILITIES FROM REGULATION BY THE PUBLIC SERVICE COMMISSION, SO AS TO LIMIT THE EXEMPTION TO A PUBLIC UTILITY'S OPERATIONS WITHIN THE MUNICIPALITY'S CORPORATE LIMITS; AND TO AMEND SECTION 58-27-1010, RELATING TO THE PROHIBITION ON REGULATION BY THE PUBLIC SERVICE COMMISSION OF CONTRACTS MADE BY A MUNICIPALITY, SO AS TO LIMIT THE PROHIBITION TO CONTRACTS MADE BY A MUNICIPALITY WITH CUSTOMERS LOCATED WITHIN THE CORPORATE LIMITS OF THE MUNICIPALITY.
Be it enacted by the General Assembly of the State of South Carolina:
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 gives the Commission commission any power to regulate or interfere with public utilities owned or operated by or on behalf of any municipality within its corporate limits or regional transportation authority (as defined in Chapter 25 of this Title) or their agencies."
SECTION 2. Section 58-27-1010 of the 1976 Code is amended to read:
"Section 58-27-1010. The Commission commission shall may not regulate any contracts made by any municipality with its customers who are located within the limits of the municipality, and nothing in this chapter shall may be construed as permitting the regulation by the Commission commission of the rates to be charged by any municipal plant to any of its customers who are located within the limits of the municipality, whether these customers be are other municipalities, persons, firms, or corporations."
SECTION 3. This act takes effect upon approval by the Governor.
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