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S. 837
STATUS INFORMATION
Joint Resolution
Sponsors: Senators Rankin, Kuhn and Hutto
Document Path: l:\council\bills\gjk\20837sd04.doc
Introduced in the Senate on January 14, 2004
Introduced in the House on April 13, 2004
Last Amended on February 5, 2004
Currently residing in the House Committee on Ways and Means
Summary: Public Service Authority, Santee Cooper, surplus property
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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1/14/2004 Senate Introduced and read first time SJ-13
1/14/2004 Senate Referred to Committee on Judiciary SJ-13
2/4/2004 Senate Committee report: Favorable with amendment Judiciary
SJ-39
2/5/2004 Senate Amended SJ-30
3/17/2004 Senate Read second time SJ-64
4/7/2004 Senate Read third time and sent to House SJ-21
4/13/2004 House Introduced and read first time HJ-14
4/13/2004 House Referred to Committee on Ways and Means HJ-14
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
COMMITTEE AMENDMENT ADOPTED
February 5, 2004
S. 837
S. Printed 2/5/04--S.
Read the first time January 14, 2004.
TO PROVIDE THE PROCEEDS FROM THE SALE OF ANY SURPLUS REAL PROPERTY IDENTIFIED BY THE BOARD OF DIRECTORS OF THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY MUST BE RETAINED BY SANTEE COOPER AND USED FOR ITS PURPOSES AND NOT TRANSFERRED TO THE STATE OF SOUTH CAROLINA TO HELP ALLEVIATE STATE BUDGET SHORTFALLS, TO PROVIDE THAT ANY OTHER USE OF THESE PROCEEDS MUST BE EXPRESSLY APPROVED BY THE GENERAL ASSEMBLY, TO PROVIDE THAT, IF THE PROCEEDS FROM SUCH SALES HAVE BEEN USED OR DISTRIBUTED IN VIOLATION OF THIS RESOLUTION, THESE PROCEEDS MUST BE RETURNED TO THE PUBLIC SERVICE AUTHORITY AND USED IN THE MANNER REQUIRED BY THIS JOINT RESOLUTION, AND TO PROVIDE THAT ANY RESOLUTION OR PARTS OF A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PUBLIC SERVICE AUTHORITY CONTRARY TO THE REQUIREMENTS OF THIS JOINT RESOLUTION ARE NULL AND VOID.
Amend Title To Conform
Whereas, the South Carolina Public Service Authority is established by the provisions of Chapter 31 of Title 58 of the 1976 Code and is authorized by these provisions to generate and produce electricity and to treat or sell water at wholesale; and
Whereas, Section 58-31-110 of the 1976 Code provides as follows:
"The South Carolina Public Service Authority is a corporation, completely owned by and to be operated for the benefit of the people of this State, and any and all net earnings thereof not necessary or desirable for the prudent conduct and operation of its business or to pay the principal of and interest on its bonds, notes, or other evidences of indebtedness or other obligations or to fulfill the terms and provisions of any agreements made with the purchasers or holders thereof or others shall be paid over semiannually to the State Treasurer for the general funds of the State and shall be used to reduce the tax burdens on the people of this State."; and
Whereas, the Santee Cooper Board of Directors, by resolution, has determined that certain real properties owned by Santee Cooper are surplus to its future operating needs; and
Whereas, the board believes that the sale of these surplus properties would produce approximately thirteen million dollars; and
Whereas, the board has adopted a resolution proposing to transfer this thirteen million dollars to the State of South Carolina to assist the State with its budget difficulties and revenue shortfalls and has further proposed in the resolution the specific manner and use of these funds by the State; and
Whereas, the General Assembly believes no such action should be undertaken by the board in regard to the sale of any surplus property where the proceeds of such sale are directed toward a purpose other than those of the Public Service Authority without the express approval of the General Assembly and further that any such other use of the proceeds is solely the prerogative of the General Assembly; and
Whereas, the proceeds from such sales should not be transferred to the State but instead should be used for the purposes of the Public Service Authority including rate reductions to customers, payment of additional principal and interest on existing bonded or other debt, and for other recurring purposes of the authority; and
Whereas, to not retain these proceeds would constitute an indirect tax increase on the customers of Santee Cooper by depriving Santee Cooper of resources that could be used for the benefit of these customers and for the betterment of Santee Cooper as an economic development engine of the State of South Carolina. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. (A) Except as provided in Section 58-31-110, the proceeds from the sale of any surplus property identified by the Board of Directors of the South Carolina Public Service Authority or funds derived from any other source, including borrowed funds, must be retained by Santee Cooper and used for its purposes and not transferred to the State of South Carolina to help alleviate state budget shortfalls.
(B) If the proceeds from such sales have been used or distributed in violation of subsection (A), these proceeds must be returned to the Public Service Authority and used in the manner required by this joint resolution.
(C) Any resolution or parts of a resolution of the Board of Directors of the Public Service Authority contrary to the requirements of this joint resolution are null and void.
SECTION 2. This joint resolution takes effect upon approval by the Governor.
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