(A) A conflict of interest transaction is a transaction with the Public Service Authority in which a director of the Public Service Authority has a direct or indirect interest. A conflict of interest transaction is not voidable by the Public Service Authority solely because of the director's interest in the transaction if any one of the following is true:
(1) the material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors, and the board of directors or a committee authorized, approved, or ratified the transaction; or
(2) the transaction was fair to the Public Service Authority and its customers.
If item (1) has been accomplished, the burden of proving unfairness of any transaction covered by this section is on the party claiming unfairness. If item (1) has not been accomplished, the party seeking to uphold the transaction has the burden of proving fairness.
(B) For purposes of this section, a Director of the Public Service Authority has an indirect interest in a transaction if:
(1) another entity in which he has a material financial interest or in which he is a general partner is a party to the transaction; or
(2) another entity of which he is a director, officer, or trustee is a party to the transaction and the transaction is or should be considered by the board of directors of the Public Service Authority.
(C) For purposes of subsection (A)(1), a conflict of interest transaction is authorized, approved, or ratified if it receives the affirmative vote of a majority of the directors on the board of directors (or on the committee) who have no direct or indirect interest in the transaction, but a transaction may not be authorized, approved, or ratified under this section by a single director. If a majority of the directors who have no direct or indirect interest in the transaction vote to authorize, approve, or ratify the transaction, a quorum is present for the purpose of taking action under this section. The presence of, or a vote cast by, a director with a direct or indirect interest in the transaction does not affect the validity of any action taken under subsection (A)(1) if the transaction is otherwise authorized, approved, or ratified as provided in that subsection.
(D) Any violation of this code section by a director shall constitute grounds for removal from office by the Governor pursuant to Section 1-3-240.
HISTORY: 2005 Act No. 137, Section 7, eff May 25, 2005; 2021 Act No. 90 (H.3194), Section 5, eff June 15, 2021.
Editor's Note
2005 Act No. 137, Section 10, provides as follows:
"Responsibilities and duties of the directors of the Public Service Authority created by the provisions of this act are in addition to responsibilities and duties created by other provisions of law."
Effect of Amendment
2021 Act No. 90, Section 5, added (D), and made a nonsubstantive change.
Structure South Carolina Code of Laws
Title 58 - Public Utilities, Services and Carriers
Chapter 31 - Public Service Authority
Section 58-31-10. Creation of South Carolina Public Service Authority; offices.
Section 58-31-20. Board of directors; advisory board.
Section 58-31-30. Powers of Authority.
Section 58-31-40. Remedies upon default of obligations; appointment of receiver.
Section 58-31-50. Right to and procedure for acquisition of property by Authority.
Section 58-31-55. Standards for director's discharge of duties; immunity.
Section 58-31-56. Conflict of interest transactions.
Section 58-31-57. Suits for breach of duty.
Section 58-31-60. Duties and powers of board of directors.
Section 58-31-70. Use of facilities and operation of business of Authority.
Section 58-31-90. Payments in lieu of taxes to certain counties and school districts.
Section 58-31-100. Payment of additional sums in lieu of taxes.
Section 58-31-110. Net earnings; disposition and use.
Section 58-31-120. Authority shall use labor and materials from this State.
Section 58-31-150. Amendments or repeal of chapter; effect.
Section 58-31-160. Authority may construct Santee-Cooper project.
Section 58-31-170. Designation of Lake Moultrie and Lake Marion.
Section 58-31-200. Joint ownership of nuclear electric generating station in Fairfield County.
Section 58-31-225. Office of Regulatory Staff; inspections, audits, and examinations.
Section 58-31-227. Renewable energy facilities and resources.
Section 58-31-230. Public Service Authority broadband authority.
Section 58-31-240. Joint Bond Review Committee; annual reporting of real property transactions.
Section 58-31-250. Legislative oversight.
Section 58-31-310. Definitions.
Section 58-31-320. Customers to whom Authority shall provide electric service.
Section 58-31-330. Service area of authority.
Section 58-31-340. Filing and correcting drawings; acquisition of facilities outside service area.
Section 58-31-350. Acquisition of facilities within service area.
Section 58-31-360. State covenant with holders of obligations of Authority.
Section 58-31-370. Jurisdiction of circuit court.
Section 58-31-380. Annual report of Authority as to rates.
Section 58-31-400. Submission of annual budget.
Section 58-31-440. Maintenance of existing lines; customer choice in certain circumstances.
Section 58-31-450. Erosion control.
Section 58-31-510. Definitions.
Section 58-31-520. Termination procedures; contents.
Section 58-31-530. Third-party notification program.
Section 58-31-540. Disconnection when public safety emergency exists.
Section 58-31-550. Private right of action; duty of care.
Section 58-31-710. Adoption and publication of pricing principles.
Section 58-31-720. Definition of "customer".
Section 58-31-730. Retail rate adjustment process; notice; interim rates; judicial review.