Bill 246

                    Current Status

Bill Number:               246
Ratification Number:       257
Act Number:                169
Introducing Body:          Senate
Subject:                        Exempt operations of municipal
                           utilities and regional transportation
                           authorities from

(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.