SC 9-1-1 Legislation Update

*Thursday, February 18, 2010  (House-Public Utility sub-committee:  room 403 of the Blatt Building)  

Robert Adams and Michael Fields spoke in opposition on behalf of the retailers, second largest tax collector in the state.  They pleaded with the committee to find another way to collect the money.  The Honorable Bill Sandifer asked the retailers to moderate their position and the retailers were still opposed.

The Honorable Bill Sandifer made the motion to revise (23-47-50 Section 3A) the programable lines carring voice/data to an arbitrary number of $5 and a maximum charge of 50 lines and the motion carried.

The Honorable McLain "Mac" Toole motioned to move the bill forward to full committee and the motion carried. 

*Tuesday, February 23, 2010   (House-Labor, Commerce and Industry Committee)
Committee report adopted (opposed by the Honorable Tim Scott from Berkeley and Charleston District 117: 803.212.6879)

*Thursday, February 25, 2010  (Senate Judiciary Sub-Committee: Room 308 in the Gressette Bldg)
Verizon and the Rural Telephone Companies spoke about Section 67E and wanted the language changed to reflect one number one charge.  They do not want double billing.

Robert Adams and Michael Fields again spoke in opposition on behalf of the retailers. 

The Honorable Brad Hutto asked if DOR could redo the form to reflect the change for the tax and make it easier on the retailers.

Gary with the Department of Revenue (DOR) spoke on how the form could be redone to make it easier to submit the tax to the state.  The possibility of making the submission yearly for your very small mom & pop operations was discussed.

The Honorable Brad Hutto made the motion to adopt the amendment and move the bill to full committee and the motion carried.

*Tuesday, March 2, 2010  (Senate Judiciary Committee:  Room 105 in the Gressette Bldg)
The Honorable John "Jake" Knotts, Jr made the motion to revise the amendment to make the collection fee 3% (Section 68F) for the retailers and the motion carried with a vote of 20-0.

The Honorable Luke Rankin and the Honorable Brad Hutto made the motion to adopt the amendment to have only one 9-1-1 surcharge (Section 67E) and the motion carried with a vote of 20-0.

The Honorable Glenn McConnel made the motion to adopt the committee report as amended and the motion passed with a vote 18-1.  (opposed by Senator Lee Bright from Spartanburg District 12:  803.212.6108)

April 27, 2010
H.4551 was recently signed into law by the Governor.  It requires Prepaid Wireless accounts to pay 911 charges at the point of sale; applies 911 charges to VOIP communications services; and clarifies the number of 911 charges applicable to voice channels on derived channel services, e.g. PRI and DS1.  The majority of the provisions of the law are effective 7/1/11.  Below is a brief summary of the new law which provides a reference to the Section Number of the Bill and the effective date of the provisions:

·        Ensures fair and adequate funding of 911 systems by applying a 911 charge, equivalent to the existing 911 charge on postpaid wireless service, to prepaid wireless service.  This charge will be collected at the time of purchase by the retailer, which is allowed to retain 3% of the charges collected prior to remitting the remainder to the Department of Revenue. [Section 7 - Effective 7/1/11] 

·        Ensures fair and adequate funding of 911 systems by applying a 911 charge to communications services using VoIP (Voice Over Internet Protocol) technology equivalent to the 911 charge for landline local exchange service. [Section 6 - Effective 7/1/11] 

·        Addresses existing uncertainty by clarifying that the number of 911 charges to be collected on a landline “pipe” is equal to: (a) the number of outward voice transmission paths activated on such a facility in cases where the number of activated outward voice transmission paths can be modified by the subscriber only with the assistance of the service supplier; or (b) five (5) 911 charges, where the number of activated outward voice transmission paths can be modified by the subscriber without the assistance of the service supplier.  The total number of 911 charges is subject to the maximum of fifty 911 charges per account.   [Section 3 - Effective 7/1/11] 

·        Also provides that no provider is liable for collecting any different number of 911 charges before that clarification becomes effective, and ensures that citizens will not be “back-billed” 911 charges after that clarification cap becomes effective. [Section 4- Effective 3/30/10] 

·        Officially reauthorizes the South Carolina 911 Advisory Committee, and instructs that funds from prepaid wireless 911 charges are to be handled in the same manner as funds from postpaid wireless 911 charges are handled today.  Likewise, VoIP 911 charges would be handled the same way wireline 911 charges are handled today. [Section 5 - Effective 7/1/11] 

·        Clarifies that all companies whose 911 services are not covered by regulatory tariffs will be held to the same statutory liability standards that currently apply to wireless companies. [Section 9 - Effective 3/30/10]

The full bill can be viewed by clicking on:   http://www.scstatehouse.gov/sess118_2009-2010/bills/4551.htm