Amend the bill, as and if amended, SECTION 5.A., Section 58-9-280(E), page 10, by striking lines 9-21 and inserting:
/ (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. The commission shall commence a proceeding to ensure that USF disbursements do not exceed the amounts necessary to sustain universal service in South Carolina, do not overburden consumers, and do not conflict with the state's goal of promoting competition for local telecommunications services. The commission shall issue its final order no later than December 31, 2016. The commission's order shall make the following determinations for each COLR receiving disbursements from the USF:
(a) The commission shall determine which exchanges are competitive and the amount of USF support provided annually for each competitive exchange. An exchange is competitive if at least two non-affiliated unsubsidized facilities-based competitors offer voice communication services, using any available technology, to at least seventy-five percent of the population in the exchange. The amount of annual USF support provided for each competitive exchange shall be determined using an allocation methodology established by the commission. The COLR's annual USF disbursements shall be reduced by the sum of the USF annual report amounts provided to its competitive exchanges.
(b) The commission shall determine an annual amount by which USF support shall be reduced in exchanges that are not determined to be competitive. This amount shall be determined based on the number of residential lines in service and the difference between the benchmark rate established by the commission and the rate charged by the COLR for basic local exchange telephone service. The commission shall determine a benchmark rate based on a rate that is reasonably affordable to South Carolina residential consumers. In making this determination, the commission shall consider Tables 1.2 and 1.3 in the Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service, Industry Analysis and Technology Division, Wireline Competition Bureau (2008), and the prevailing urban residential rates in South Carolina and other states.
(c) The COLR's total annual USF support reductions shall be the sum of the reductions determined under subsections (a) and (b). These USF support reductions will take effect on January 1, 2017, and may be phased in over a period to be determined by the commission not to exceed five years.
(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.
(10) The USF shall be terminated on December 31, 2021." /
Renumber sections to conform.
Amend title to conform.