Journal of the House of Representatives
of the Second Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 9, 1996

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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 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.

(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.


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(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 incumbent LEC, other than an incumbent LEC operating under an alternative regulation plan approved by the commission before the effective date of this section, to immediately set its toll switched access rates at levels comparable to the toll switched access rate levels of the largest LEC operating within the State. To offset the adverse effect on the revenues of the incumbent LEC, the commission shall allow adjustment of other rates not to exceed statewide average rates, weighted by number of access lines, and shall allow distributions from the Small LEC Fund, as may be necessary to recover those revenues lost through the concurrent reduction of the intrastate switched access rates.

(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


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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 its services determined pursuant to the plan described in this subsection, in lieu of other forms of regulation including, but not limited to, rate of return or rate base monitoring or regulation, upon the filing of notice with the commission as follows:

(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


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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 services determined pursuant to alternative forms of regulation, which may differ among companies and may include, but not be limited to, price regulation, rather than rate of return or other forms of earning regulation. Upon application, the commission shall approve such alternative regulation or price regulation, which may differ among local exchange companies, upon finding that the plan as proposed:

(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


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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.

Further proceedings were interrupted by expiration of time on the uncontested Calendar, the pending question being consideration of amendment No. 1, Rep. CATO having the floor.

RECURRENCE TO THE MORNING HOUR

Rep. CATO moved that the House recur to the morning hour, which was agreed to by a division vote of 60 to 17.

H. 4694--OBJECTIONS

Debate was resumed on the following Bill, the pending question being the consideration of Amendment No. 1, Rep. CATO having the floor.

H. 4694 -- Reps. Harrison, Wofford, Stuart, Hodges, Neal, Cave, Govan, Baxley, Knotts, Meacham, Bailey, Delleney, Shissias, Klauber, Simrill, Thomas, Clyburn, Wright, Fulmer, Jennings, Martin, J. Harris, Kinon, J. Young, Boan, Limbaugh, McCraw, Young-Brickell, T. Brown, Scott, Tucker, White, D. Smith and Phillips: A BILL TO AMEND SECTION 58-9-10, CODE OF LAWS OF SOUTH CAROLINA, 1976,


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RELATING TO THE REGULATION OF TELEPHONE COMPANIES AND DEFINITIONS, SO AS TO ADD PROVISIONS DEFINING "BASIC LOCAL EXCHANGE TELEPHONE SERVICE", "CARRIER OF LAST RESORT", "INCUMBENT LOCAL EXCHANGE CARRIER" OR "INCUMBENT LEC", "LOCAL EXCHANGE CARRIER" OR "LEC", "NEW ENTRANT LOCAL EXCHANGE CARRIER" OR "NEW ENTRANT LEC", "SMALL LOCAL EXCHANGE CARRIER" OR "SMALL LEC", "TELECOMMUNICATIONS SERVICES", AND "UNIVERSAL SERVICE"; TO AMEND SECTION 58-9-280, RELATING TO TELEPHONE COMPANIES AND THE REQUIREMENT THAT A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY MUST BE OBTAINED BEFORE CONSTRUCTION, OPERATION, OR EXTENSION OF A PLANT OR SYSTEM, SO AS TO ADD PROVISIONS WHICH PROVIDE, AMONG OTHER THINGS, THAT AFTER NOTICE AND AN OPPORTUNITY TO BE HEARD, THE PUBLIC SERVICE COMMISSION MAY GRANT A CERTIFICATE TO OPERATE AS A TELEPHONE UTILITY TO APPLICANTS PROPOSING TO FURNISH LOCAL TELEPHONE SERVICE IN THE SERVICE TERRITORY OF AN "INCUMBENT LEC", SUBJECT TO CERTAIN CONDITIONS AND EXEMPTIONS, AND TO PROVIDE FOR RELATED MATTERS; TO AMEND THE 1976 CODE BY ADDING SECTION 58-9-576 SO AS TO PROVIDE THAT AN "INCUMBENT LEC" MAY ELECT TO HAVE RATES, TERMS, AND CONDITIONS PURSUANT TO THE PLAN DESCRIBED IN THIS SECTION, AND TO PROVIDE FOR RELATED MATTERS; AND TO AMEND THE 1976 CODE BY ADDING SECTION 58-9-577 SO AS TO PROVIDE THAT, NOTWITHSTANDING SECTIONS 58-9-575 AND 58-9-576, A "SMALL LEC" MAY ELECT TO HAVE THE RATES, TERMS, AND CONDITIONS OF ITS SERVICES DETERMINED PURSUANT TO ALTERNATIVE FORMS OF REGULATION, WHICH MAY DIFFER AMONG COMPANIES AND MAY INCLUDE, BUT NOT BE LIMITED TO, PRICE REGULATION, RATHER THAN RATE OF RETURN OR OTHER FORMS OF EARNING REGULATION, AND TO PROVIDE FOR RELATED MATTERS.

Reps. S. WHIPPER, L. WHIPPER, ANDERSON, BREELAND, COBB-HUNTER, HOWARD, CATO, COOPER, VAUGHN, EASTERDAY, YOUNG-BRICKELL, CAIN, MARCHBANKS and LIMBAUGH objected to the Bill.


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ORDERED TO THIRD READING

The following Bills were taken up, read the second time, and ordered to a third reading:

S. 1041 -- Senators Gregory, Ryberg, Courson, Wilson, Martin, Greg Smith and O'Dell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-1-65 SO AS TO GRANT EMPLOYERS IMMUNITY, BOTH ABSOLUTE AND QUALIFIED DEPENDING ON THE SCOPE OF THE INFORMATION, FOR RESPONDING TO PROSPECTIVE EMPLOYERS' REQUESTS FOR REFERENCES.

Rep. HARRISON explained the Bill.

H. 3671 -- Rep. Askins: A BILL TO AMEND SECTION 12-36-930, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALES TAX DUE ON THE SALE OF A MOTOR VEHICLE TO A RESIDENT OF ANOTHER STATE FOR LICENSING IN THE OTHER STATE, SO AS TO EXTEND THIS CALCULATION OF THE TAX DUE TO BOATS AND MOTORS SOLD TO A RESIDENT OF ANOTHER STATE FOR LICENSING IN THE OTHER STATE.

Rep. ROBINSON explained the Bill.

S. 1041--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. HARRISON, with unanimous consent, it was ordered that S. 1041 be read the third time tomorrow.

H. 3671--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. ROBINSON, with unanimous consent, it was ordered that H. 3671 be read the third time tomorrow.

H. 4323--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 4323 -- Reps. Knotts, Kinon, Lanford, Littlejohn, Keyserling, Haskins, Vaughn, Riser, Law and Simrill: A BILL TO AMEND SECTION 56-5-1520, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SPEED LIMITS, SO AS TO PROVIDE THAT THE MAXIMUM SPEED LIMIT ON AN INTERSTATE HIGHWAY IS SEVENTY MILES AN HOUR; AND TO REPEAL SECTION 56-5-1510, RELATING TO THE STATE'S


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FIFTY-FIVE MILE AN HOUR MAXIMUM SPEED LIMIT AND FEDERAL LAWS THAT PERMIT THE STATE TO SET SPEED LIMITS GREATER THAN FIFTY-FIVE MILES AN HOUR.

The Education and Public Works Committee proposed the following Amendment No. 1 (Doc Name P:\amend\DKA\3647CM.96), which was adopted.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Section 56-5-1520 of the 1976 Code, as last amended by Part II, Section 36R, Act 497 of 1994, is further amended to read:

"Section 56-5-1520. (a) General rule. No(A) A person shall not drive a vehicle on a highway at a speed greater than is reasonable and prudent under the conditions and having regard to the actual and potential hazards then existing. In every event Speed must be so controlled as may be necessary to avoid colliding with any a person, vehicle, or other conveyance on or entering the highway in compliance with legal requirements and the duty of all persons a person to use care.

(b) Maximum speed limits.(B) Except when a special hazard exists that requires lower speed for compliance with paragraph (a) of this section subsection (A), the limits specified in this section or established as hereinafter authorized are maximum lawful speeds, and no a person shall not drive a vehicle on a highway at a speed in excess of these maximum limits:

(1) thirty miles an hour in any urban district; seventy miles an hour on the interstate highway system and other freeways where official signs giving notice of this speed limit are posted;

(2) sixty miles an hour on multilane divided primary highways where official signs giving notice of this speed limit are posted; and

(3) fifty-five miles an hour in other locations or on other sections of highways except where speeds above fifty-five miles an hour are otherwise provided by Section 56-5-1510.

(C) Thirty miles an hour is the maximum speed in an urban district. `Urban district' means the territory contiguous to and including any street which is built up with structures devoted to business, industry, or dwelling houses situated at intervals of less than one hundred feet for a distance of a quarter of a mile or more.

(D) The maximum speed limits set forth in this section may be altered as authorized in pursuant to Sections 56-5-1530 and 56-5-1540.

(c) When lower speeds required; penalties; citation for violating speed limits.


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(E) The driver of every a vehicle shall drive, consistent with the requirements of paragraph (a) subsection (A), drive at an appropriate reduced speed when approaching and crossing an intersection or railway grade crossing, when approaching and going around a curve, approaching a hillcrest, when traveling upon any narrow bridge, narrow or winding roadway, and when special hazard exists with respect to pedestrians or other traffic or by reason of weather or highway conditions.

(d) Any(F) A person violating the speed limits established by this section is guilty of a misdemeanor and, upon conviction for a first offense, must be fined or imprisoned as follows:

(1) in excess of the above posted limit but not in excess of ten miles an hour by a fine of not less than fifteen dollars nor more than twenty-five dollars;

(2) in excess of ten miles an hour but less than fifteen miles an hour above the posted limit by a fine of not less than twenty-five dollars nor more than fifty dollars;

(3) in excess of fifteen miles an hour but less than twenty-five miles an hour above the posted limit by a fine of not less than fifty dollars nor more than seventy-five dollars; and

(4) in excess of twenty-five miles an hour above the posted limit by a fine of not less than seventy-five dollars nor more than two hundred dollars or imprisoned for not more than thirty days.

(e)(G) Any A citation for violating the speed limits issued by any authorized officer must note on it the rate of speed for which the citation is issued.

(f)(H) In expending the funds credited to the state general fund from fines generated under subsection (d) (F), the department first shall consider the need for additional highway patrolmen."

SECTION 2. Section 56-5-1535 of the 1976 Code, as added by Act 409 of 1994, is amended to read:

"Section 56-5-1535. (A) It is unlawful for a person to drive a motor vehicle in a highway work zone at a speed in excess of the speed limit set and posted by signs. A person violating this section is guilty of a misdemeanor and, upon conviction, must be fined not less than seventy-five nor more than two hundred dollars or imprisoned not more than thirty days, or both.

(B) A `highway work zone' is the area between the first sign that informs motorists of the existence of the work zone on the highway and the last sign that informs motorists of the end of the work zone.

(C) The penalty imposed by this section applies only:


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(1) if a sign is posted at the beginning of the active work zone that states "HIGHWAY `WORK ZONE - NO SPEEDING - TWO HUNDRED DOLLAR $200 FINE AND THIRTY 30 DAYS IMPRISONMENT FOR SPEEDING'";

(2) to the area between the posted sign and the `END CONSTRUCTION' sign. Signs may be posted at the discretion of the Department of Transportation in the highway work zones designed to comply with work zone traffic control standards contained in the Manual on Uniform Traffic Control Devices published by the Federal Highway Administration.

(D) The penalty imposed pursuant to subsection (C) is in addition to all other penalties prescribed for exceeding the lawful speed limit."

SECTION 3. Section 56-5-1540(a)(2) of the 1976 Code is amended to read:

"(2) increases the limit within an urban district but not to more than fifty-five seventy miles an hour, except that speed limits above fifty-five miles an hour are required when stipulated by Section 56-5-1510; or"

SECTION 4. The 1976 Code is amended by adding:

"Section 56-5-616. The interstate highway system consists of the segments of highways in South Carolina in the officially designated national system of interstate and defense highways."

SECTION 5. The 1976 Code is amended by adding:

"Section 56-5-617. The state highway primary system consists of a connected system of principal state highways, not to exceed ten thousand miles, connecting centers of population, determined by the Commission of the Department of Transportation."

SECTION 6. The 1976 Code is amended by adding:

"Section 57-3-175. Notwithstanding any other provision of law, a person moving or hauling a mobile home on the State's interstate highways shall travel at a maximum speed of not more than ten miles an hour below the posted speed limit."

SECTION 7. Section 56-5-1510 of the 1976 Code is repealed.

SECTION 8. This act takes effect upon approval by the Governor./

Amend title to conform.

Rep. COOPER explained the amendment.

The amendment was then adopted.


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