South Carolina General Assembly
117th Session, 2007-2008

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S. 464

STATUS INFORMATION

General Bill
Sponsors: Senators Ritchie, Malloy, Cromer, Fair, Leventis, Martin, Alexander, Campsen, Knotts, Ford, Anderson, Sheheen, Patterson, Williams and McConnell
Document Path: l:\s-jud\bills\ritchie\jud0064.jhr.doc

Introduced in the Senate on February 20, 2007
Currently residing in the Senate Committee on Judiciary

Summary: Communication services

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   2/20/2007  Senate  Introduced and read first time SJ-6
   2/20/2007  Senate  Referred to Committee on Judiciary SJ-6
   2/22/2007  Senate  Referred to Subcommittee: Moore (ch), Ford, Mescher, 
                        Rankin, Scott

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

2/20/2007

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 58-9-200, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN REGARD TO COMMUNICATIONS SERVICES, SO AS TO INCLUDE DEFINITIONS FOR COMMERCIAL MOBILE RADIO SERVICE AND END-USER SUBSCRIBER LINE; AND TO AMEND SECTION 58-9-280, RELATING TO THE ESTABLISHMENT OF A STATE UNIVERSAL SERVICE FUND, SO AS TO MODIFY THE PURPOSES OF THE FUND AND EXPAND THE CONTRIBUTORS TO THE FUND TO INCLUDE WIRELESS PROVIDERS.

Whereas, the General Assembly of the State of South Carolina finds that access to computers and the Internet, along with the ability to effectively use these technologies, is becoming increasingly important for full participation in America's economic, political, and social life; and

Whereas, affordable, high-speed Internet access is critical to attracting, growing, and retaining businesses in the highly competitive global marketplace; and

Whereas, in the digital age, universal connectivity at an affordable price is a necessity for business transactions, education and training, health care, and government services; and

Whereas, broadband service to access information and resources is pivotal to eliminating the digital divide and promoting the economic and personal self-sufficiency of low-income individuals; and

Whereas, broadband service is proving valuable to the economic transitioning and growth of distressed urban and rural communities; and

Whereas, while broadband is increasing in availability, the deployment of such technology is lagging in the rural areas of the State; and

Whereas, access to appropriate end-user equipment is critical to taking advantage of a broadband deployment; and

Whereas, access to computers and broadband access at home and at school enhances the learning environment for school age children; and

Whereas, voice, video, and data technologies are converging so that voice grade telephone service can be delivered over the same facilities as broadband services. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 58-9-200 of the 1976 Code is amended to read:

"Section 58-9-200.    As used in Sections 58-9-275, 58-9-280, 58-9-285, 58-9-295, and 58-9-297:

(1)    'Communications service provider' means:

(a)    a telephone utility as defined in Section 58-9-10(6);

(b)    a government-owned telecommunications service provider as defined in Section 58-9-2610(1);

(c)    a provider of commercial mobile radio service as defined in 47 C.F.R. Section 20.3. The term includes any wireless two-way communication device, including radio-telephone communications used in cellular telephone service, personal communication service, or the functional or competitive equivalent of a radio-telephone communications line used in cellular telephone service, a personal communication service, or a network radio access line;

(d)    a telephone cooperative as defined in Section 33-46-20(4);

(d)(e)    a person or entity providing telephone, voice over internet protocol, similar voice service, or any other voice replacement service, data service, video service, or any information service; or

(e)(f)    an entity using or allowing another entity to use its cable, wires, fiber, or any material, facilities, or equipment that have the ability to carry voice, data, video, or any other information transmissions. 'Communications service provider' does not mean a radio common carrier as defined in Section 58-11-10(f).

(2)    'Communications service' means:

(a)    telephone service, including without limitation basic local exchange telephone service as defined in Section 58-9-10(9);

(b)    voice over internet protocol, or similar voice or voice replacement service;

(c)    data service;

(d)    video service; or

(e)    any information service.

(3)    'End-user subscriber line' means a communication path provided by a local exchange telephone utility, radio telephone utility, cellular radio telephone carrier, reseller or broadband service provider from its serving central office, or equivalent facilities to the subscriber's premises or terminating equipment."

SECTION    2.    Section 58-9-280(E) of the 1976 Code is amended to read:

"(E)(1)        In continuing South Carolina's commitment to universally available basic local exchange telephone service and broadband services at affordable rates and to assist with the alignment of prices and/or cost recovery with costs ensure continued public safety communications, and consistent with applicable federal policies, the commission shall establish a modify the state 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 necessary for the funding and management of the USF within twelve months of the effective date of this section except that the commission, upon notice, may extend that period up to an additional ninety days. These guidelines must not be inconsistent with applicable federal law and shall address, without limitation, the following to:

(a)    provide continued support for low-income telephone subscribers through the Lifeline and Link-up programs as directed by the commission in Order No. 2001-996;

(b)    provide funds for the South Carolina Wireless Technology and Communications Commission to perform its powers and duties including, but not limited to, establishing a statewide wireless broadband network;

(c)    provide funding for a broadband deployment incentive program;

(d)    provide incentive funding for school districts to issue laptops to all middle and junior high school children attending public schools;

(e)    provide for the phase-out over a seven-year period of the USF high cost support authorized by the commission in Order No. 2001-996; and

(f)    provide funds for the administration of the USF by the Office of Regulatory Staff or its designee.

(1)(2)    The USF shall be administered by the Office of Regulatory Staff or a third party designated by the Office of Regulatory Staff under guidelines to be adopted by the commission.

(2)(3)    The commission shall require all telecommunications companies providing telecommunications All communications services companies providing communications services within South Carolina to must contribute to the USF as determined by the commission. Communications service providers must impose a monthly charge to all end-user subscriber lines as necessary to fund the operation of the USF. The amount of the charge must be determined by the commission at least annually and must not exceed $0.95 per subscriber line per month. The communications service providers must collect the charge from their customers and transfer the monies collected to the USF. The charge collected and remitted by the communications service providers is not subject to any tax, fee, or assessment, nor may it be considered revenue of the communications service providers. The commission may provide for the funding of the USF through contributions from other sources. The fund must be established, invested, and managed for the exclusive purpose of implementing the provisions of this article.

(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 the services not exceed $53 million annually. 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 the estimates. The commission shall set the size of the fund on an annual basis based on the following guidelines:

(a)    The USF high cost distribution to carriers of last resort as ordered by the commission in Order No. 2001-996 must be phased out over a seven-year period.

(b)    The funding for state Lifeline and Link-up support should be no less than $1 million and will be adjusted based on the growth of the program.

(c)    No more than $30 million will be allocated to the Broadband Incentive Program in any fiscal year. All communications service providers shall be eligible to receive these incentive funds pursuant to the guidelines established by the commission.

(d)    No more than $10 million will be allocated to the Department of Education for distribution of laptops and related supportive technology to eighth grade school students. For schools in the top twenty-five percent of schools with students receiving free or reduced lunch, incentive funds will be provided at a ratio of 4-to-1. For schools in the second twenty-five percent of schools with students receiving free or reduced lunch, incentive funds will be provided at a ratio of 3-to-1. For schools in the third twenty-five percent of schools with students receiving free or reduced lunch, incentive funds will be provided at a ratio of 2-to-1. For schools in the lowest twenty-five percent of schools with students receiving free or reduced lunch, incentive funds will be provided at a ratio of 1-to-1. Districts and schools may utilize private sector contributions as matching funds.

(e)    No less than $200,000 will be allocated for fund administration.

(f)    The Broadband Incentive Program should be phased out over a ten-year period.

(g)    Funding may be provided, as needed, to the commission to assist it in performing its duties and responsibilities including, but not limited to, establishing basic Internet access to through the laptop distribution program.

(5)    Monies The commission shall annually establish the allocation to carriers of last resort. The annual allocation of 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 based upon the percentage of high costs funds the carrier received at January first, 2007. Other monies in the USF shall be distributed based on the parameters and guidelines established by the commission.

(6)    The commission shall require any carrier of last resort seeking reimbursement from the fund to file with the commission and provide to the Office of Regulatory Staff 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 has 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 and the Office of Regulatory Staff, 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 interest; provided, however, that before implementing any such finding, the commission shall provide for recovery of unrecovered costs through the USF of such additional service by the affected carrier of last resort.

(9)    Nothing in subsection (G) of this section shall preclude the commission from assessing broadband service revenues for purposes of contributions to the USF, pursuant to this subsection."

SECTION    3.    This act takes effect upon approval by the Governor.

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