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| (1) provide for the reasonable interconnection of facilities between all certificated local telephone service providers upon a bona fide request for interconnection, subject to the negotiation process set forth in subsection (D) of this section;
(2) provide for the transfer of telephone numbers between local telephone service providers in a manner that is technically feasible;
(3) provide for the reasonable unbundling of network elements upon a request from a LEC where technically feasible and priced in a manner that recovers the providing LEC's cost;
(4) determine, for small LECs, when and under what circumstances resale of local exchange telephone services is in the public interest and should be allowed. Telecommunications services that are available at retail to a specific category of subscribers only shall not be offered for resale to a different category of subscribers; and
(5) provide for the continued development and encouragement of universally available basic local exchange telephone service at reasonably affordable rates.
The final commission order implementing these requirements shall be issued within six months of the effective date of this section, except that the commission, upon notice, may extend that period up to an additional ninety days.
(D) A LEC shall negotiate the rates, terms, and conditions for local interconnection. In the event that the parties are unable to agree on appropriate rates, terms, and conditions for interconnection within one hundred thirty-five to one hundred sixty days of receipt of a bona fide request, either party may petition the commission for determination of the appropriate rates, terms, and conditions for interconnection. This period may be shortened or extended by mutual agreement of the parties. The commission shall determine the appropriate rates, terms, and conditions for interconnection within nine months from the filing of the petition in accordance with the terms of applicable federal law.
(E) In continuing South Carolina's commitment to universally available basic local exchange telephone service at affordable rates and to assist with the alignment of prices and/or cost recovery with costs, and consistent with applicable federal policies, the commission shall establish a universal service fund (USF) for distribution to a carrier(s) of last resort. The commission shall issue its final order adopting such guidelines as may be
(1) The USF shall be administered by the commission or a third party designated by the commission under guidelines to be adopted by the commission.
(2) The commission shall require all telecommunications companies providing telecommunications services within South Carolina to contribute to the USF as determined by the commission.
(3) The commission also shall require any company providing telecommunications service to contribute to the USF if, after notice and opportunity for hearing, the commission determines that the company is providing private local exchange services or radio-based local exchange services in this State that compete with a local telecommunications service provided in this State.
(4) The size of the USF shall be determined by the commission and shall be the sum of the difference, for each carrier of last resort, between its costs of providing basic local exchange services and the maximum amount it may charge for such services. The commission may use estimates to establish the size of the USF on an annual basis, provided it establishes a mechanism for adjusting any inaccuracies in such estimates.
(5) Monies in the USF shall be distributed to a carrier of last resort upon application and demonstration of the amount of the difference between its cost of providing basic local exchange services and the maximum amount it may charge for such services.
(6) The commission shall require any carrier of last resort seeking reimbursement from the fund to file the information necessary to determine the costs of providing basic local exchange telephone services. In the event that a carrier of last resort does not currently conduct detailed cost studies relating to such services, the commission shall allow for an appropriate surrogate for such study.
(7) The commission shall have the authority to make adjustments to the contribution or distribution levels based on yearly reconciliations and to order further contributions or distributions as needed.
(8) After notice and an opportunity for hearing to all affected carriers, the commission by rule may expand the set of services within the definition of universal service based on a finding that the uniform statewide demand for such additional service is such that including the service within the definition of universal service will further the public
(F) Nothing in this chapter shall be interpreted to limit or restrict any right that any local exchange carrier may have under federal law.
(G) Competition exists for a particular service if, for an identifiable class or group of customers in an exchange, group of exchanges, or other clearly defined geographical area, the service, its functional equivalent, or a substitute service is available from two or more providers. The commission shall not regulate a service for which competition exists if the market for that service is sufficiently competitive to protect the public interest. If the commission finds that competition exists for a particular service, but that service is not sufficiently competitive to protect the public interest, the commission shall provide appropriate regulatory and pricing flexibility to all providers of the service.
(H) Any local exchange carrier, upon a showing of changed circumstances or that it is necessary or appropriate to realign rates with the costs of various telecommunications components, may petition the commission to reexamine any rates that have been capped pursuant to the provisions of this chapter and to set new price caps.
(I) The incumbent LECs subject to this section shall be authorized to meet the offerings of any local exchange carrier serving the same area by packaging services together, using volume discounts and term discounts, and by offering individual contracts for services, except as restricted by federal law. Individual contracts for services or contracts with other providers of telecommunications services shall not be filed with the commission, except as required by federal law, provided that telecommunications carriers shall provide access to such contracts to the commission as required.
(J) Subject to the requirements of applicable federal law, a small LEC may define the term `cost', as used within this section and where applicable to a small LEC, to include all embedded cost as well as a reasonable contribution to universal local service, where applicable, until such time as these costs are recovered from other sources.
(K) Subject to federal law, if the commission finds that the resale of any service or unbundled capability, element, feature, or function in a small LEC area is in the public interest, then the small LEC shall not be required to offer its services at a price below its cost.
(L) Upon enactment of this section and the establishment of the Small LEC Fund, as specified in subsection (M) of this section, the commission shall, subject to the requirements of federal law, require any electing
(M) The commission shall, not later than December 31, 1996, establish a Small LEC Fund. The Small LEC Fund shall initially be funded by those entities receiving an access or interconnection rate reduction from LECs pursuant to subsection (L) in proportion to the amount of the rate reduction. To the extent that affected LECs are entitled to payments from the USF, the Small LEC Fund must transition into the USF as outlined in Section 58-9-280(E) when funding for the USF is finalized and adequate to support the obligations of the Small LEC Fund.
(N) The commission shall ensure that any requirements implemented under Section 58-9-280(C) are appropriate for the service territory of the small LEC and may implement such alternative requirements necessary to protect the public interest in such service area. Specifically, the commission shall ensure for small LECs that telecommunications services that are available at retail to a specific category of subscribers only shall not be offered for resale to a different category of subscribers. Additionally, consistent with the federal Telecommunications Act of 1996, LECs shall not be required to offer for resale services which they do not make available on a retail basis.
(O) If any provision or section of this chapter is held invalid or held not to apply to a particular local exchange carrier, such holding shall not affect the remaining provisions of this chapter or their application to any local exchange carrier to which they might apply."
SECTION 3. The 1976 Code is amended by adding:
"Section 58-9-576. (A) Any LEC may elect to have rates, terms, and conditions determined pursuant to the plan described in subsection (B), provided the commission has approved a local interconnection agreement in which such LEC is a participant or the commission determines that another provider's service competes with such LEC's basic local exchange telephone service.
(B) Notwithstanding any other provision of this chapter, effective July 1, 1996, any LEC may elect to have its rates, terms, and conditions for
(1) If the provisions of (A) have been met, the plan under this subsection becomes effective on the date specified by the electing LEC but in no event sooner than thirty days after such notice is filed with the commission.
(2) On the date a LEC notifies the commission of its intent to elect the plan described in this section, existing rates, terms, and conditions for the services provided by the electing LEC contained in the then-existing tariffs and contracts are considered just and reasonable.
(3) The rates for flat-rated local exchange services for residential and single-line business customers on the date of election shall be the maximum rates that such LEC may charge for these local exchange services for a period of two years from the date the election is filed with the commission. During such period, the local exchange company may charge less than the authorized maximum rates for these services. For those small LECs whose prices are below the statewide average local service rate, weighted by number of access lines, the commission shall waive the requirements of this paragraph.
(4) For those companies to which item (3) applies, after the expiration of the period set forth above, the rates for flat-rate local exchange residential and single-line business service provided by a LEC may be adjusted on an annual basis pursuant to an inflation-based index.
(5) The LECs shall set rates for all other services on a basis that does not unreasonably discriminate between similarly situated customers; provided, however, that all such rates are subject to a complaint process for abuse of market position in accordance with guidelines to be adopted by the commission.
(6) A LEC subject to this section shall file tariffs for its local exchange services that set out the terms and conditions of the services and the rates for such services. The tariff shall be presumed valid and become effective seven days after filing for price decreases and fourteen days after filing for price increases and new services.
(7) Any incumbent LEC operating under an alternative regulatory plan approved by the commission before the effective date of this section must adhere to such plan until such plan expires or is terminated by the commission, whichever is sooner.
Section 58-9-577. Notwithstanding Sections 58-9-575 and 58-9-576, any small LEC may elect to have the rates, terms, and conditions of its
(a) protects the affordability of basic local exchange telephone service, as such service is defined by the commission;
(b) reasonably assures the continuation of basic local exchange telephone service that meets reasonable service standards that the commission may adopt;
(c) will not unreasonably prejudice any class of telephone customers, including telecommunications companies;
(d) is not inconsistent with the federal Telecommunications Act of 1996; and
(e) is otherwise consistent with the public interest.
Upon approval of a price regulation plan, price regulation shall be the sole form of regulation imposed upon the electing local exchange carrier, and the commission shall regulate the electing local exchange carrier's prices rather than its earnings. The small LEC shall file a tariff for its local exchange services that sets out the terms and conditions of the services and the rates for these services. The tariff shall be presumed valid and shall become effective seven days after filing for price decreases and fourteen days after filing for price increases and new services, subject to a complaint process in accordance with guidelines to be adopted by the commission. The commission shall issue an order denying or approving the proposed plan for alternative regulation or price regulation, with or without modification, not more than ninety days from the filing of the application. However, the commission may extend the time period for an additional sixty days, in the discretion of the commission. If the commission approves the application with modifications, the local exchange carrier, subject to such approval, may accept the modifications and implement the proposed plans as modified or may at its option:
(i) withdraw its application and continue to be regulated under the form of regulation that existed immediately before the filing of the application, or
(ii) file another proposed plan for price regulation."
SECTION 4. This act takes effect upon approval by the Governor./
Amend title to conform.
Rep. CATO explained the amendment.
Rep. L. WHIPPER proposed the following Amendment No. 2 (Doc Name P:\amend\PFM\9231JM.96), which was tabled.
Amend the Committee on Labor, Commerce and Industry Report, as and if amended, page 4694-6, by striking lines 14 through 24 and inserting:
/(G) Competition exists for a particular service if, for an identifiable class or group of customers in an exchange, group of exchanges, or other clearly defined geographical area, the service, its functional equivalent, or a substitute service is available from one or more unaffiliated alternative providers which offer functionally equivalent service at a price lower or comparable to the incumbent LEC to a substantial share of the customers and subscribers in the particular geographic area. Basic local exchange telephone service for residential and single-line business customers, as defined in Section 58-9-10(9), is a single service. The commission shall not regulate a service for which competition exists if the market for that service is sufficiently competitive to protect the public interest. If the commission finds that competition exists for a particular service, but that service is not sufficiently competitive to protect the public interest, the commission shall provide appropriate regulatory and pricing flexibility to all providers of the service./
Renumber sections to conform.
Amend title to conform.
Rep. L. WHIPPER explained the amendment.
Rep. CATO spoke against the amendment.
Rep. YOUNG-BRICKELL moved to table the amendment, which was agreed to.
Pursuant to Rule 7.7 the yeas and nays were taken on the passage of the Bill resulting as follows:
Those who voted in the affirmative are:
Allison Askins Bailey Baxley Boan Breeland Brown, G. Brown, H. Brown, J. Brown, T. Carnell Cato Cave Chamblee Cobb-Hunter Cooper Cotty Cromer
Dantzler Davenport Delleney Easterday Fulmer Gamble Govan Hallman Harrell Harrison Harvin Haskins Hines, J. Hodges Howard Hutson Inabinett Jennings Keegan Kelley Keyserling Kinon Kirsh Klauber Knotts Koon Lanford Law Lee Limbaugh Limehouse Littlejohn Lloyd Loftis Marchbanks Martin Mason McAbee McCraw McKay McMahand McTeer Meacham Moody-Lawrence Neal Neilson Phillips Quinn Rhoad Rice Richardson Riser Robinson Sandifer Scott Seithel Sharpe Sheheen Shissias Simrill Smith, D. Smith, R. Stille Stoddard Stuart Thomas Townsend Tripp Trotter Vaughn Waldrop Walker Whatley Whipper, S. White Wilder Wilkes Wilkins Witherspoon Wofford Worley Wright Young-Brickell
Those who voted in the negative are:
So, the Bill, as amended, was read the second time and ordered to third reading.
Rep. J. BROWN moved that the House do now adjourn, which was adopted.
Rep. QUINN moved to reconsider the vote whereby H. 4498 was continued and the motion was noted.
The Senate returned to the House with concurrence the following:
H. 4951 -- Rep. Neal: A CONCURRENT RESOLUTION EXPRESSING THE PROFOUND SORROW AND DEEPEST SYMPATHY OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE FAMILY AND COUNTLESS FRIENDS OF A TRUE PUBLIC SERVANT, SECRETARY OF COMMERCE RONALD H. BROWN, ONE OF THE FINEST AND MOST DISTINGUISHED LEADERS IN OUR NATION'S HISTORY.
H. 4955 -- Reps. R. Smith, Clyburn, Mason, Sharpe and Spearman: A CONCURRENT RESOLUTION RECOGNIZING ROBERT M. BELL OF AIKEN COUNTY FOR HIS MANY CONTRIBUTIONS TO HIS COMMUNITY AND HIS INCLUSION IN WHO'S WHO IN THE SOUTH AND SOUTHWEST.
At 5:50 P.M. the House in accordance with the motion of Rep. SANDIFER adjourned in memory of Paul H. Shelton, Jr. of Seneca, to meet at 10:00 A.M. tomorrow.
Indicates Matter Stricken
Indicates New Matter
The House assembled at 10:00 A.M.
Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark as follows:
Eternal Father, before Whose Majesty we bow in these moments of prayer, we confess that our puny strength and our fallible judgements are unequal to the tests and tasks that are often thrust upon us. Forbid, then, that we should rely only on our own devices and councils. Through the tangled wilderness of human relations, show us the clear path that leads to the summit of Your will. With eyes cleansed of selfish motives, may we see Your way. And in that vision, may we move in confidence in the words of the Psalmist "God is our Refuge and Strength, a very present Help in time of trouble." (Psalm 46:1)
We pray to our God Who cares for us more than a father cares for his children. Amen.
Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.
After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.
Rep. SANDIFER moved that when the House adjourns, it adjourn in memory of James Melvin Golden of Seneca, which was agreed to.
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report, on:
H. 4431 -- Reps. Townsend, P. Harris, Huff, H. Brown, Cooper and Stille: A BILL TO AMEND SECTION 59-20-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DETERMINATION OF ALLOCATIONS TO SCHOOL DISTRICTS
Ordered for consideration tomorrow.
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