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COMMITTEE REPORT
February 11, 2004
H. 4656
Introduced by Reps. Cato, Sandifer, Huggins, Bailey, Bales, Barfield, Bingham, Bowers, G. Brown, J. Brown, Chellis, Cooper, Dantzler, Edge, Hamilton, Harrell, Harrison, Hinson, Jennings, Leach, Lee, Limehouse, Lourie, Mack, Martin, McCraw, Miller, Perry, Quinn, Rice, Richardson, Rutherford, Scarborough, Scott, J.R. Smith, W.D. Smith, Thompson, Tripp, Trotter, White, Witherspoon, Young, Moody-Lawrence, Gourdine and Allen
S. Printed 2/11/04--H.
Read the first time January 29, 2004.
To whom was referred a Bill (H. 4656) to amend Section 58-9-280, as amended, Code of Laws of South Carolina, 1976, relating to the requirements for a telephone utility to be granted, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Section 58-9-280(I) of the 1976 Code, as last amended by Act 354 of 1996, is further amended to read:
"(I) The incumbent LECs subject to this section shall must 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 must not be filed with the commission, except as required by federal law, provided that telecommunications carriers that have not elected to have rates, terms, and conditions determined pursuant to the plan described in Section 58-9-576(B) or that are not operating under an alternative means of regulation pursuant to section 58-9-575, 58-9-577, or 58-9-585, shall must provide access to such these contracts to the commission as required."
SECTION 2. Section 58-9-576(A) of the 1976 Code, as added by Act 354 of 1996, is amended to read:
"(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 the LEC is a participant with an entity determined by the commission not to be affiliated with the LEC or the commission determines that another provider's service competes with the LEC's basic local exchange telephone service, or the LEC is a 'small local exchange carrier' as defined in Section 58-9-10(14)."
SECTION 3. Section 58-9-576(B)(5) of the 1976 Code, as added by Act 354 of 1996, is amended to read:
"(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 of these rates are subject to a complaint process for abuse of market position in accordance with guidelines to be adopted by the commission. The commission shall resolve any such complaint within one hundred twenty days of the date it is filed with the commission. As used in this section, 'abuse of market position' means any anticompetitive pricing action that prohibits an equally efficient new firm from entering a market or that would cause an equally efficient firm to exit a market."
SECTION 4. Chapter 9, Title 58 of the 1976 Code is amended by adding:
"Section 58-9-285. (A) As used in this section:
(1) 'qualifying LEC' means any LEC operating under an alternative means of regulation pursuant to Section 58-9-575; any LEC that has elected to have rates, terms, and conditions for its services determined pursuant to the plan described in Section 58-9-576(B); and any LEC that has elected to have rates, terms, and conditions determined pursuant alternative means of regulation under Section 58-9-577;
(2) 'qualifying IXC' means any interexchange carrier operating under alternative means of regulation pursuant to section 58-9-585;
(3) 'bundled offering' means:
(a) for a qualifying LEC, an offering of two or more products or services to customers at a single price provided that:
(i ) each regulated product or service in the offering is available on a stand-alone basis under a tariff on file with the commission; and
(ii) the qualifying LEC has a tariffed flat-rated local exchange service offering for residential customers and for single-line business customers on file with the commission that provides access to the services and functionalities set forth in Section 58-9-10(9).
(b) for a qualifying IXC, an offering of two or more products or services to customers at a single price provided that each regulated product or service in the offering is available on a stand-alone basis under a tariff on file with the commission.
(4) 'Contract offering' means any contractual agreement by which a qualifying LEC or a qualifying IXC offers any tariffed product or service to any customer at rates, terms, and conditions that differ from those set forth in the qualfying LEC's or qualifying IXC's tariffs.
(B) The commission shall not:
(1) impose any requirements related to the terms, conditions, rates, or availability of any bundled offering or contract offering of any qualifying LEC or qualifying IXC; or
(2) otherwise regulate any bundled offering or contract offering of any qualifying LEC or qualifying IXC. Without limiting the foregoing, purchasers of bundled offerings and contract offerings may submit complaints regarding such offerings to the commission, and the commission may provide a copy of such complaint to the qualifying LEC or qualifying IXC referenced in the complaint. The commission may endeavor to facilitate a voluntary and mutually-acceptable resolution of such complaints.
(C) A qualifying LEC or qualifying IXC providing bundled offerings or contract offerings is obligated to provide contributions to the Universal Service Fund (USF), and the commission shall ensure that contributions to the state USF, pursuant to Section 58-9-280(E) must be maintained at appropriate levels.
(D) Access minutes of use must continue to be classified and reported for purposes of administering the Interim LEC Fund, pursuant to Section 58-9-280(M), in the same manner as they were classified and reported before the effective date of this subsection (d).
(E) Nothing in this section affects any jurisdiction conferred upon the commission by 47 U.S.C. Section 254(k).
(F) Nothing in this section affects the commission's jurisdiction over complaints alleging that a change in a subscriber's selection of a provider of telecommunications service was made without appropriate authorization."
SECTION 5. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
HARRY F. CATO for Committee.
EXPLANATION OF IMPACT:
The Public Service Commission is another funded agency. There will be no fiscal impact on the General Fund of the State. The agency indicates there will be no fiscal impact on other funds.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 58-9-280, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENTS FOR A TELEPHONE UTILITY TO BE GRANTED A CERTIFICATE OF NECESSITY BEFORE THE CONSTRUCTION, OPERATION, OR EXTENSION OF A PLANT OR SYSTEM, SO AS TO PROVIDE THAT TELECOMMUNICATIONS CARRIERS THAT HAVE ELECTED TO HAVE RATES, TERMS, AND CONDITIONS DETERMINED PURSUANT TO THE PLAN DESCRIBED IN SECTION 58-9-576(B) SHALL PROVIDE THESE CONTRACTS TO THE PUBLIC SERVICE COMMISSION AS REQUIRED; AND TO AMEND SECTION 58-9-576, AS AMENDED, RELATING TO THE ELECTION A LOCAL EXCHANGE CARRIER MAY MAKE WITH REGARD TO ITS REGULATION, SO AS TO PROVIDE FURTHER CONDITIONS UNDER WHICH A LOCAL EXCHANGE CARRIER MAY MAKE THIS ELECTION, TO DEFINE "ABUSE OF MARKET POSITION" AND REQUIRE THE COMMISSION TO RESOLVE COMPLAINTS WITHIN ONE HUNDRED TWENTY DAYS, TO DEFINE "BUNDLED OFFERING" AND "CONTRACT OFFERING", TO PROHIBIT THE COMMISSION FROM REGULATING A BUNDLED OFFERING OR CONTRACT OFFERING BY A CARRIER AND REQUIRE A CARRIER TO ADHERE TO AN ALTERNATIVE REGULATORY PLAN UNTIL IT EXPIRES OR IS TERMINATED BY THE COMMISSION, WHICHEVER IS SOONER, TO PROVIDE THAT A LOCAL EXCHANGE CARRIER PROVIDING BUNDLED OFFERINGS OR CONTRACT OFFERINGS IS OBLIGATED TO PROVIDE CERTAIN UNIVERSAL SERVICE FUND (USF) CONTRIBUTIONS, AND TO PROVIDE FOR THE MANNER IN WHICH ACCESS MINUTES OF USE MUST BE CLASSIFIED AND REPORTED FOR PURPOSES OF ADMINISTERING THE INTERIM LOCAL EXCHANGE CARRIER FUND.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 58-9-280(I) of the 1976 Code, as last amended by Act 354 of 1996, is further amended to read:
"(I) The incumbent LEC's subject to this section shall must 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 must not be filed with the commission, except as required by federal law, provided that telecommunications carriers that have not elected to have rates, terms, and conditions determined pursuant to the plan described in Section 58-9-576(B) shall provide access to such these contracts to the commission as required."
SECTION 2. Section 58-9-576(A) of the 1976 Code, as added by Act 354 of 1996, is amended to read:
"(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 the LEC is a participant with an entity determined by the commission not to be affiliated with the LEC or the commission determines that another provider's service competes with the LEC's basic local exchange telephone service, or the LEC is a 'small local exchange carrier' as defined in Section 58-9-10(14).
SECTION 3. Section 58-9-576(B)(5) of the 1976 Code, as added by Act 354 of 1996, is amended to read:
"(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 of these rates are subject to a complaint process for abuse of market position in accordance with guidelines to be adopted by the commission. The commission shall resolve the complaint within one hundred twenty days of the date it is filed with the commission. As used in this section, 'abuse of market position' means any anticompetitive pricing action that prohibits an equally efficient new firm from entering a market or that would cause an equally efficient firm to exit a market."
SECTION 4. Section 58-9-576(B)(7) of the 1976 Code, as added by Act 354 of 1996, is amended to read:
"(7)(a) As used in this subsection:
(i) 'bundled offering' means an offering of two or more products or services to customers at a single price provided that each regulated product or service in the offering is available on a stand-alone basis under a tariff on file with the commission; and the LEC has a tariffed flat-rated local exchange service offering for residential customers and for single-line business customers on file with the commission that provides access to the services and functionalities set forth in Section 58-9-10(9); and
(ii) 'contract offering' means any contractual agreement by which the LEC offers any tariff product or service to any customer at rates, terms, and conditions that differ from those set forth in the LEC's tariffs.
(b) The commission shall not:
(i) impose any requirements related to the terms, conditions, rates, or availability of any bundled offering or contract offering of any LEC operating under this section; or
(ii) otherwise regulate any bundled offering or contract offering of any LEC operating under this section.
(c) A LEC providing bundled offerings or contract offerings is obligated to provide contributions to the Universal Service Fund (USF) and the commission shall ensure that contributions to the state USF, pursuant to Section 58-9-280(E) must be maintained at appropriate levels.
(d) Access minutes of use must continue to be classified and reported for purposes of administering the Interim LEC Fund, pursuant to Section 58-9-280(M), in the same manner as they were classified and reported before the effective date of this subitem (d).
(8) Nothing in this subsection affects any jurisdiction conferred upon the commission by 47 U.S.C. Section 254(k).
(9) Any An incumbent LEC operating under an alternative regulatory plan approved by the commission before the effective date of this section must shall adhere to such the plan until such the plan expires or is terminated by the commission, whichever is sooner."
SECTION 5. This act takes effect upon approval by the Governor.
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