Bill
SD 602
Summary of SD 602: An Act Amending Successor Supplier Laws OverviewThis proposed bill aims to update and clarify the laws governing "successor supplier" relationships in the state.
This proposed bill aims to update and clarify the laws governing "successor supplier" relationships in the state. A successor supplier is a company that takes over the operations of another supplier, often through a merger or acquisition. The bill seeks to establish new guidelines and requirements for these types of business transitions in order to protect consumers and ensure continuity of service.
The main components of SD 602 include:
Notification Requirements: The bill would mandate that any successor supplier provide at least 90 days' advance written notice to all customers before assuming control of operations. This notice must include details on any changes to service terms, pricing, or contract conditions.
Service Guarantees: For a period of 1 year following a takeover, the successor supplier would be required to maintain the same level of service, pricing, and contractual terms as provided by the previous supplier. Customers could not be forced into new contracts without their consent.
Regulatory Oversight: The state's public utilities commission would be granted expanded authority to review and approve successor supplier transactions. They could impose conditions to protect the public interest as part of the approval process.
Penalties for Non-Compliance: Successor suppliers found to be in violation of the new notification, service, or regulatory requirements could face civil penalties of up to $100,000 per infraction.
If passed, SD 602 would impact any company that acquires or merges with an existing supplier of services regulated by the state, such as electricity, natural gas, telecommunications, or water. Customers of these essential utilities would be the primary beneficiaries, gaining additional protections and stability during ownership transitions.
The bill has already passed the state Senate and is currently under consideration in the House. If approved by the House and signed into law by the Governor, the new successor supplier requirements would take effect 90 days after enactment.
Compiled from official sources — confirm details with the bill’s official record.
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