Journal of the Senate
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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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. 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.

(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


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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 LEC's 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 costs 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 Interim 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 the number of access lines, and shall allow distributions from the Interim 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 an Interim LEC Fund. The Interim LEC Fund shall initially be funded by those entities receiving an access or interconnection rate reduction from


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LEC's pursuant to subsection (L) in proportion to the amount of the rate reduction. To the extent that affected LEC's are entitled to payments from the USF, the Interim 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 Interim 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 LEC's 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, LEC's 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.


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(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 LEC's 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 LEC's 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:

(1) protects the affordability of basic local exchange telephone service, as such service is defined by the commission;

(2) reasonably assures the continuation of basic local exchange telephone service that meets reasonable service standards that the commission may adopt;


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(3) will not unreasonably prejudice any class of telephone customers, including telecommunications companies;

(4) is not inconsistent with the federal Telecommunications Act of 1996; and

(5) 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 plan as modified or may at its option:

(1) withdraw its application and continue to be regulated under the form of regulation that existed immediately before the filing of the application, or

(2) file another proposed plan for price regulation."

SECTION 4. This act takes effect upon approval by the Governor./

Amend title to conform.

There being no further amendments, the Bill was read the third time and ordered returned to the House of Representatives with amendments.

READ THE SECOND TIME

WITH NOTICE OF GENERAL AMENDMENTS

H. 3785 -- Reps. Sharpe, Knotts, Hutson, Limehouse, Littlejohn, A. Young, Whatley, Fleming, Bailey, Fair, Easterday, Allison, Meacham, Walker, Moody-Lawrence, R. Smith, Neal, Tripp, Neilson, Stille, Davenport, Witherspoon, Hines, Vaughn, Rice, Cato, Haskins, Sandifer, Shissias, Mason, Riser, J. Brown, Wright, Wofford, Richardson, J. Harris, Dantzler and Harrison: A BILL TO AMEND TITLE 40, CHAPTER 30, CODE OF LAWS OF SOUTH CAROLINA, 1976,


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RELATING TO MASSEURS AND MASSEUSES, TO ENACT THE MASSAGE PRACTICE ACT SO AS TO CREATE THE BOARD OF MASSAGE AND TO PROVIDE FOR ITS POWERS AND DUTIES; TO ESTABLISH LICENSURE AND RENEWAL REQUIREMENTS FOR MASSAGE THERAPISTS; TO DEFINE ACTS OF MISCONDUCT AND TO PROVIDE DISCIPLINARY ACTION AND PROCEDURES FOR MISCONDUCT, AND TO PROVIDE PENALTIES.

Senator BRYAN asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

On motion of Senator BRYAN, with unanimous consent, the Bill was read the second time, with notice of general amendments and ordered placed on the third reading Calendar, carrying over all amendments.

COMMITTEE AMENDMENT AMENDED AND ADOPTED

AMENDED, READ THE SECOND TIME

WITH NOTICE OF GENERAL AMENDMENTS

H. 4541 -- Reps. Simrill, Moody-Lawrence and Kirsh: A BILL TO AMEND SECTION 16-17-600, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL DESTRUCTION OR DESECRATION OF HUMAN REMAINS OR REPOSITORIES AND THE PENALTIES THEREFOR, SO AS TO INCREASE THE MONETARY PENALTIES FOR CERTAIN VIOLATIONS.

Senator McCONNELL asked unanimous consent to make a motion to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Judiciary.


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Amendment No. P-1

Senator ALEXANDER proposed the following Amendment No. P-1 (4541R005.TCA), which was adopted:

Amend the committee amendment, as and if amended, page 28, after item (L) by adding an appropriately lettered new item to read:

/( ). Notwithstanding any other provision of law, when a cemetery vault or other merchandise is installed by an installer other than the manufacturer, the installer shall provide the customer for whom the vault or other merchandise is installed a warranty which must be equivalent to the warranty offered by the manufacturer for vaults or merchandise of the type installed./.

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

Senator ALEXANDER moved that the amendment be adopted.

The amendment was adopted.

Amendment No. P-2

Senator ALEXANDER proposed the following Amendment No. P-2 (4541R004.TCA), which was adopted:

Amend the committee amendment, as and if amended, by adding an appropriately numbered new SECTION to read:

/SECTION . Notwithstanding any other provision of law, seventy-five percent of any fee paid for funeral services pursuant to a funeral service contract must be placed in escrow by the service provider to defray costs associated with preparing the grave."/.

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

Senator ALEXANDER moved that the amendment be adopted.

The amendment was adopted.


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Amendment No. P-3

Senators McCONNELL, JACKSON and FORD proposed the following Amendment No. P-3 (4541R006.GFM), which was adopted:

Amend the committee amendment, as and if amended, page [4541-27], after line 11, by adding an appropriately numbered new SECTION to read:

/SECTION . A. There is hereby established on the grounds of the State House an African-American History Monument. The design and placement of the monument shall be determined by the commission appointed pursuant to subsection B of this section. The commission shall make reasonable efforts to incorporate all eras of African-American history in the design. The monument shall be erected as soon as is reasonably possible after it is approved by the General Assembly by concurrent resolution and the State House Renovation Project is completed.

B. (1) An African-American History Monument Commission is created to determine the design of the monument and to determine the placement of the monument on the State House grounds. The commission is empowered and directed to raise private funds and to receive gifts and grants to carry out the purpose for which it is created. By January 1, 1997, the commission shall report the proposed design of the monument to the State House Committee for its approval. After action by the committee approving the design, the State House Committee shall cause to be introduced the concurrent resolution serving as the instrument of approval as provided in subsection A of this section. The State shall ensure proper maintenance of the monument as is done for other historical monuments on the State House grounds.

Four members must be appointed by the President Pro Tempore of the Senate, four members must be appointed by the Speaker of the House of Representatives, and one member must be appointed by the Governor. Notwithstanding Section 8-13-770 of the 1976 Code, members of the General Assembly may be appointed to this commission. One of the members appointed by the President Pro Tempore must be a Senator and one of the members appointed by the Speaker must be a member of the House of Representatives.

Commission members are not entitled to receive the subsistence, mileage, and per diem otherwise provided by law for members of state boards, committees, and commissions.

(2) The commission also shall study the feasibility of establishing an African-American History Museum analogous to the Confederate Relic Room and make recommendations with respect to its findings on this


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subject to the State House Committee. This new museum would collect and display historical artifacts and other items reflecting African-American history in this State. A preliminary report on this study must be made to the State House Committee no later than January 1, 1997, with a final report and recommendations due as soon as practicable thereafter.

(3) The commission established pursuant to this section is dissolved on the later of the dedication of the African-American History Monument or the final report of the commission on the feasibility of establishing an African-American History Museum.

C. The monument placed on the State House Grounds pursuant to this section, along with all other monuments located on the State House Grounds, shall receive the protections from desecration and destruction provided in Section 16-17-600./

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

The Judiciary Committee proposed the following amendment (JUD4541.003), which was adopted as follows:

Amend the bill, as and if amended, page 1, beginning on line 33, in Section 16-17-600(A), as contained in SECTION 1, by striking lines 33 and 34 in their entirety and inserting therein the following:

/thousand dollars and or imprisoned not less than one year nor more than ten years, or both.

A crematory operator shall be held blameless and harmless for the cremation of a body which has been incorrectly identified by the funeral director or person bringing the deceased to the crematory or which the funeral director has obtained incorrect authorization to cremate./.

Amend the bill further, as and if amended, page 2, line 38, by striking SECTION 3 in its entirety and inserting therein the following:

/SECTION 3. Chapter 55, Title 39, as amended, of the 1976 Code is amended to read:

"CHAPTER 55

Cemeteries

SECTION 39-55-15. The provisions of this chapter are known and may be cited as the `South Carolina Cemetery Act of 1984'.

SECTION 39-55-25. It is found to be necessary in the public interest that cemeteries, burial grounds, and any agreement or contract which has


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for a purpose the furnishing or delivering of any person, property, or merchandise of any nature in connection with the final disposition of a dead human body, must be subject to sufficient regulation by the State to ensure that sound business practices are followed by all entities subject to the provisions of this chapter.

SECTION 39-55-35. As used in this chapter, unless otherwise stated or unless the context clearly indicates otherwise:

1. `Board' means the South Carolina Cemetery Board.

2. `Cemetery' means a place used, dedicated, or designated for cemetery purposes including any one or combination of:

(a) perpetual care cemeteries;

(b) burial parks for earth interment;

(c) mausoleums;

(d) columbariums.

3. `Cemetery company' means any legal entity that owns or controls cemetery lands or property and conducts the business of a cemetery, including all cemeteries owned and operated by cemetery sales organizations or cemetery management organizations or any other legal entity.

4. `Columbarium' means a structure or building substantially exposed aboveground intended to be used for the interment of the cremated remains of a deceased person.

5. `Grave space' means a space of ground in a cemetery intended to be used for the interment in the ground of the remains of a deceased person.

6. `Human remains' or `remains' means the body of a deceased person and includes the body in any stage of decomposition.

7. `Mausoleum' means a structure or building substantially exposed aboveground, intended to be used for the entombment of the remains of a deceased person.

8. `Perpetual care' means the maintenance and the reasonable administration of the cemetery grounds and buildings in keeping with a properly maintained cemetery. In the event that a cemetery offers perpetual care for some designated sections of its property but does not offer perpetual care to other designated sections, the cemetery must be considered a perpetual care cemetery for the purposes of this chapter.

9. `Person' means an individual, corporation, partnership, joint venture, or association.

10. `Vault' means a crypt or underground receptacle which is used for interment in the ground and is designed to encase and protect caskets


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