South Carolina General Assembly
117th Session, 2007-2008

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Bill 4735

Indicates Matter Stricken
Indicates New Matter


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

Indicates Matter Stricken

Indicates New Matter

COMMITTEE AMENDMENT AMENDED AND ADOPTED

April 10, 2008

H. 4735

Introduced by Reps. Harrell, Cato, Funderburk, Loftis, Sandifer, Thompson, Owens, Harvin, Bedingfield, Leach, Bales, Whipper and R. Brown

S. Printed 4/10/08--S.    [SEC 4/11/08 10:14 AM]

Read the first time March 6, 2008.

            

A JOINT RESOLUTION

TO CREATE THE SOUTH CAROLINA EDUCATIONAL BROADBAND SERVICE COMMISSION FOR THE PURPOSE OF OBTAINING AND EVALUATING PROPOSALS FROM COMMERCIAL ENTITIES FOR THE LEASING OF SPECTRUM CAPACITY LICENSED TO THE SOUTH CAROLINA EDUCATIONAL TELEVISION NETWORK, TO PROVIDE A PROCESS FOR APPROVAL OF THE LEASES, TO PROVIDE THAT ANY REVENUE RECEIVED FROM THE LEASE OF SPECTRUM CAPACITY SHALL BE DEPOSITED INTO THE STATE GENERAL FUND, TO EXEMPT THE LEASES FROM THE CONSOLIDATED PROCUREMENT CODE, AND TO PROVIDE FOR THE MEMBERSHIP, POWERS, AND DUTIES OF THE COMMISSION.

Whereas, access to computers and the internet is becoming increasingly important for full participation in America's economic, political, and social life; and

Whereas, changes to the 2500-2690 MHz band of spectrum licensed by the Federal Communications Commission for Educational Broadband Service and Broadband Radio Service will enable providers to use that spectrum in a more technologically and economically efficient manner, encourage licensees to digitize their frequencies thereby creating excess capacity on their spectrum, and allow licensees to lease up to ninety-five percent of their capacity to commercial entities; and

Whereas, the South Carolina Educational Television Network (ETV) holds Education Broadband Service licenses throughout the State of South Carolina; and

Whereas, H. 3569 of 2007 provided that ETV could not lease its excess spectrum capacity prior to approval of the recommendations of the study committee by the General Assembly, which were submitted to the General Assembly on February 6, 2008. Now, therefore,

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

SECTION    1.    (A)    There is created a commission to be known as the South Carolina Educational Broadband Service Commission. All appointees must have a background of substantial duration and expertise in business. The commission shall be composed of the following seven members:

(1)    one member of the private sector appointed by the President Pro Tempore of the Senate;

(2)    one member of the private sector appointed by the Speaker of the House of Representatives;

(3)    one member of the private sector appointed by the Chairman of the Senate Finance Committee;

(4)    one member of the private sector appointed by the Chairman of the House Ways and Means Committee;

(5)    one member of the private sector appointed by the Chairman of the State Regulation of Public Utilities Review Committee;

(6)    one member of the private sector appointed by the Vice-Chairman of the State Regulation of Public Utilities Review Committee; and

(7)    one member of the private sector appointed by the Governor.

(B)    The appointee of the President Pro Tempore of the Senate shall serve as the chairman of the commission. The appointee of the Speaker of the House of Representatives shall serve as the vice-chairman of the commission.

(C)    The commission must meet as soon as practicable after a majority of members have been appointed. A majority of members of the commission who have been appointed shall constitute a quorum for the transaction of business. A vacancy on the commission shall not impair the ability of a quorum to exercise and perform the powers and duties of the commission.

(D)    Commission members serve at the pleasure of the appointing authority. A vacancy in the membership of the commission must be filled in the manner of the original appointment. Commission membership does not constitute an office for purposes of the prohibition on dual office holding provided in Section 3, Article VI of the Constitution of the State. Commission members are subject to the provisions of the Ethics, Government Accountability, and Campaign Reform Act, Chapter 13 of Title 8.

(E)    Members serve without compensation but are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business.

(F)    The commission has the following powers and duties:

(1)    The commission shall use a competitive process to obtain proposals from commercial entities for the leasing of the spectrum capacity of the Education Broadband Service (EBS) licenses held by the South Carolina Educational Television Network. The commission shall seek proposals that utilize the spectrum capacity of the EBS licenses in the following manners: (a) a single lease of ETV's spectrum capacity without any service requirements; (b) a single lease of ETV's spectrum capacity with service requirements as recommended by the commission; (c) multiple leases on a regional basis without any service requirements, such regions to be determined by the commission; (d) multiple leases on a regional basis with service requirements as recommended by the commission, such regions to be determined by the commission; and (e) other manners deemed appropriate by the commission. The commission must also consider whether to include any lease of tower space in the proposals in the lease of spectrum capacity. In determining any service requirements to impose on potential lessees, the commission must consider the costs and benefits, both monetary and societal, that would be borne by or inure to the public at large, as well as the public to be served. Because broadband service may be provided using a number of different technologies, each of which has unique characteristics and advantages, the commission, in developing its recommended service requirements, must consider the costs and benefits of all methods available to deploy broadband services throughout the State, including wireline, wireless technologies utilizing other bands of the spectrum, or satellite. The commission must not impose any pricing requirements on lessees and must take steps to ensure that the state's assets are not made available to a private broadband service provider to subsidize a private company's competitive service offerings. The competitive process used by the commission shall be governed exclusively by the procedures stated herein and procedures established by the commission.

(2)    The commission shall evaluate the proposals and present the proposals and its recommendations to the Joint Bond Review Committee. The Joint Bond Review Committee shall evaluate the proposals and the commission's recommendations to determine whether a proposal shall be approved. If the Joint Bond Review Committee determines that a proposal shall be approved, this determination shall be presented at the next meeting of the Budget and Control Board for review and approval. If the Budget and Control Board does not approve a proposal, it shall be returned to the Joint Bond Review Committee for further evaluation and recommendation. The South Carolina Education Television Network must take actions necessary to facilitate the lease of the spectrum capacity of the EBS licenses in the manner set forth in an approved proposal and to ensure that ETV complies with any FCC rules or requirements. Revenue received by the State from an approved proposal must be deposited into the State General Fund for recommendation by the Governor and appropriation by the General Assembly.

(3)    The commission is exempt from the Consolidated Procurement Code and is authorized to engage legal counsel, consultants, or other experts to assist it in carrying out its powers and duties without any further approval or oversight of any governmental entity or official.

(G)    The commission shall use clerical and professional employees of the Budget and Control Board. Upon request of the commission, the South Carolina Educational Television Network must make staff available to the commission.

(H)    The commission shall terminate six months after all agreements resulting from an approved proposal are finally executed or no later than June 30, 2010. Upon termination of the commission, the Budget and Control Board shall assume responsibility for the management and administration of all agreements resulting from an approved proposal.

(I)    The Budget and Control Board is authorized and directed to pay for any expenses of the commission incurred in the performance of its responsibilities including, but not limited to, the cost of professional assistance, up to an aggregate amount not to exceed seven hundred fifty thousand dollars. The Executive Director of the Budget and Control Board is authorized to expend and use such sources of agency funds as the director determines, including the dormant Funded Debt Sinking Fund. In addition to any other carry forward allowed by law, the Budget and Control Board is specially authorized to carry forward from fiscal year 2007-2008 into fiscal year 2008-2009 unspent general fund appropriations in the maximum amount it may be required to expend in support of the commission and its activities.

SECTION    2.    This joint resolution takes effect upon approval by the Governor.

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