South Carolina General Assembly
115th Session, 2003-2004

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Bill 3530

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

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AMENDED

June 2, 2004

H. 3530

Introduced by Reps. Cato, Wilkins, Sandifer, Young, Cotty, Edge and Owens

S. Printed 6/2/04--H.

Read the first time February 6, 2003.

            

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 58-3-27 SO AS TO PROHIBIT MEMBERSHIP ON AND RESTRICT EMPLOYMENT BY THE PUBLIC SERVICE COMMISSION OF A PERSON ASSOCIATED WITH A REGULATED BUSINESS; BY ADDING SECTION 58-3-35 SO AS TO PROVIDE FOR ETHICS STANDARDS AND REQUIREMENTS FOR PUBLIC SERVICE COMMISSIONERS; BY ADDING SECTION 58-3-65 SO AS TO ESTABLISH AN ADVISORY STAFF AND AN ADVOCACY STAFF FOR THE COMMISSION AND DESCRIBE THEIR RESPONSIBILITIES; AND BY ADDING SECTION 58-3-400 SO AS TO PROHIBIT EX PARTE COMMUNICATIONS WITH AND BY A COMMISSIONER OR ADVISORY STAFF IN CONNECTION WITH A PENDING PROCEEDING; TO AMEND SECTION 58-3-20, AS AMENDED, RELATING TO ESTABLISHMENT OF THE PUBLIC SERVICE COMMISSION, SO AS TO PROVIDE FOR QUALIFICATIONS, SCREENING, AND TERMS OF MEMBERSHIP; TO AMEND SECTION 58-3-24, AS AMENDED, RELATING TO PERSONS INELIGIBLE TO SERVE ON THE PUBLIC SERVICE COMMISSION, SO AS TO ALLOW A MEMBER OF THE GENERAL ASSEMBLY TO SERVE FOUR YEARS AFTER HE HAS NOT FILED FOR REELECTION TO THE GENERAL ASSEMBLY; TO AMEND PART 6, CHAPTER 6, TITLE 37, RELATING TO THE DIVISION OF CONSUMER ADVOCACY OF THE DEPARTMENT OF CONSUMER AFFAIRS, SO AS TO DELETE ANY RESPONSIBILITIES OF THE DIVISION IN CONNECTION WITH THE PUBLIC SERVICE COMMISSION; TO AMEND SECTION 8-13-90, RELATING TO SEEKING OR OFFERING PLEDGES OF VOTES, SO AS TO PROHIBIT THE DIRECT OR INDIRECT SEEKING OF A PLEDGE OR COMMUNICATION ABOUT SCREENING UNTIL CANDIDATES FOR THE OFFICE ARE DETERMINED; AND TO REPEAL SECTION 58-3-60 RELATING TO EMPLOYMENT OF STAFF FOR THE PUBLIC SERVICE COMMISSION.

Amend Title To Conform

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

SECTION    1.    A.        Section 58-9-2200(6) of the 1976 Code, as added by Act 112 of 1999, is amended to read:

"(6)    'Service address' means the location of the telecommunications equipment from which telecommunications services are originated or at which telecommunications services are received by a retail customer. If this location is not a defined location, as in the case of mobile phones, paging systems, maritime systems, and the like, 'service address' means the location of the retail customer's primary use of the telecommunications equipment or the billing address as provided by the customer gives to the service provider, provided that the billing address is within the licensed service area of the service provider. A sale of postpaid calling services is sourced to the origination point of the telecommunications signal as first identified by either (i) the seller's telecommunications system; or (ii) information received by the seller from its service provider, if the system used to transport such signals is not that of the seller."

B.     Section 58-9-2200 of the 1976 Code, as added by Act 112 of 1999, is amended by adding an appropriately numbered item at the end to read:

"( )    'Postpaid calling service' means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number that is not associated with the origination or termination of the telecommunications service."

C.     Section 58-9-2220(2) of the 1976 Code, as added by Act 112 of 1999, is amended to read:

"(2)(a)    The maximum business license tax that may be levied by a municipality on the gross income derived from the sale of retail telecommunications services for the preceding calendar or fiscal year which either originate or terminate in the municipality and which are charged to a service address within the municipality regardless of where these amounts are billed or paid and on which a business license tax has not been paid to another municipality for a business license tax year beginning after 2003 is the lesser of seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunication services. or the maximum business license tax rate as calculated by the Board of Economic Advisors pursuant to subsection (b). For a business in operation for less than one year, the amount of business license tax authorized by this section must be computed based on a twelve-month projected income.

(b)    The Board of Economic Advisors from the appropriate municipal records shall determine actual total municipal revenues from business license taxes, franchise fees, and other fees contractually imposed on the sale of telecommunications services and received from telecommunications companies in 1998, and actual total revenues received by municipalities in 1999, 2000, 2001, 2002, and 2003 from such taxes and fees imposed on the gross income derived from the sale of retail telecommunications services. The board shall determine an annual average growth rate applicable to such revenues by averaging the annual growth rates applicable to these revenues for 1999-2000, 2000-2001, 2001-2002, and 2002-2003 and shall apply that average growth rate to the 1998 actual revenues compounded annually to derive an estimated 2004 total revenue. The tax rate to be calculated by the board is the fraction produced by dividing the 2004 estimated revenue as determined above by gross income in 2003 derived from the sale of retail telecommunications services in municipalities in this State.

(c) If the maximum business license tax rate that may be levied by a municipality on retail telecommunications services, as determined by the Board of Economic Advisors, is calculated or determined to exceed seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunication services a joint telecommunications study committee shall review the maximum business license tax calculation, as determined by the Board of Economic Advisors, and verify the maximum business license tax calculation. Upon verification of the maximum business license tax calculation, the joint telecommunications study committee must sponsor a joint resolution to allow a municipality to levy the maximum business license tax rate greater than seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunications services.

(d)    The joint telecommunications study committee shall consist of six members of the General Assembly: three Senators appointed by the President Pro Tempore of the Senate and three Representatives appointed by the Speaker of the House. The joint telecommunications study committee shall utilize the staff and resources of the Labor, Commerce and Industry Committee of the House of Representatives and the Judiciary Committee of the Senate. The joint telecommunications study committee is authorized to verify the maximum business license tax rate determined by the Board of Economic Advisors."

D.     Section 58-9-2230 of the 1976 Code, as added by Act 112 of 1999, is amended to read:

"Section 58-9-2230.    (A)    A municipality must shall manage its public rights-of-way on a competitively neutral and nondiscriminatory basis and may impose a fair and reasonable franchise or consent fee on a telecommunications company for use of the public streets and public property to provide telecommunications service unless the telecommunications company has an existing contractual, constitutional, statutory, or other right to construct or operate in the public streets and public property including, but not limited to, consent previously granted by a municipality. Any such A fair and reasonable franchise or consent fee which may be imposed upon a telecommunications company shall not exceed the annual sum as set forth in the following schedule based on population:

Tier I--1--1,000--$ 100.00

Tier II--1,001--3,000--$ 200.00

Tier III--3,001--5,000--$ 300.00

Tier IV--5,001--10,000--$ 500.00

Tier V--10,001--25,000--$ 750.00

Tier VI--Over 25,000--$1,000.00

This franchise or consent fee is in lieu of any permit fee, encroachment fee, degradation fee, or other fee assessed on a telecommunications provider for its occupation of or work within the public right-of-way.

(B)    A municipality must shall manage its public rights-of-way on a competitively neutral and nondiscriminatory basis and may impose an administrative fee upon a telecommunications company which that is not subject to subsection (A) in this section and that constructs or installs or has previously constructed or installed facilities in the public streets and public property to provide telecommunications service. Any such The fee which may be imposed on a telecommunications company shall not exceed the annual sum as set forth in the following schedule based on population:

Tier I--1--1,000--$ 100.00

Tier II--1,001--3,000--$ 200.00

Tier III--3,001--5,000--$ 300.00

Tier IV--5,001--10,000--$ 500.00

Tier V--10,001--25,000--$ 750.00

Tier VI--Over 25,000--$1,000.00

This administrative fee is in lieu of any permit fee, encroachment fee, degradation fee, or other fee assessed on a telecommunications provider for its occupation of or work within the public right-of-way.

(C)    No A municipality shall not levy any tax, license, fee, or other assessment on, with respect to, or measured by the receipts from any a telecommunications service, other than (a) (1) the business license tax authorized by this article, and (b) (2) franchise fees as defined and regulated under 47 U.S.C. Section 542; provided, however, that nothing herein shall in this subsection restrict restricts the right of any a municipality to impose ad valorem taxes, service fees, sales taxes, or other taxes and fees lawfully imposed on other businesses within the municipalities. This subsection does not prohibit a municipality from assessing upon a telecommunications company fees of general applicability such as sanitation fees, building permit fees, and zoning permit fees that are not related to the telecommunications company's occupation of or work within the public right-of-way.

(D)    A telecommunications company, including a mobile telecommunications company providing mobile telecommunications services, shall not be deemed is not considered to be using public streets or public property unless it has constructed or installed physical facilities in public streets or on public property,. provided that the The use of public streets or public property under lease, site license, or other similar contractual arrangement between a municipality and a telecommunications company shall does not constitute the use of public streets or public property under for purposes of this article. Without limiting the generality of the foregoing, a telecommunications company shall not be deemed is not considered to be using public streets or public property under for purposes of this article solely because of its use of airwaves within a municipality. Should any If a telecommunications company, including a telecommunications company providing mobile telecommunications services, request requests of a municipality permission to construct or install physical facilities in public streets or on public property, such that request shall must be considered by such the municipality in a manner that is competitively neutral and nondiscriminatory as amongst among all telecommunications companies."

SECTION    2.    This act takes effect upon approval by the Governor.

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