§ 58-9-2620 — Duties and restrictions; cost and rate computations; accounting requirements.

Notwithstanding any other provision of law, a government-owned communications service provider must: (1) be subject to the same local, state, and federal regulatory, statutory, and other legal requirements to which nongovernment-owned communications service providers are subject, including regulation and other legal requirements by the commission and the Office of Regulatory Staff; (2) not receive a financial benefit that is not available to a nongovernment-owned communications service provider on the same terms and conditions as it is available to a government-owned communications service provider, including, but not limited to, tax exemptions and governmental subsidies of any type. Tax exempt capital financing may be used consistent with Sections 58-9-2620(4)(a) and 58-9-2630(C); (3) not be permitted to subsidize the cost of providing a communications service with funds from any other noncommunications service, operation, or other revenue source. If a determination is made that a direct or indirect subsidy has occurred, the government-owned communications service provider immediately must increase prices for communications service in a manner that ensures that the subsidy will not continue, and any amounts used directly or indirectly to subsidize the past operations will be reimbursed to the general treasury of the appropriate state or local government. This subsection does not prohibit a government-owned communications service provider from providing matching funds or in-kind contributions in order to comply with the terms of a federal grant as long as it imputes the matching funds and the value of the in-kind contributions in calculating the cost incurred and in the rates to be charged for the provision of a communications service; (4) impute, in calculating the cost incurred and in the rates to be charged for the provision of a communications service, the following: (a) cost of capital component that is the equivalent to the cost of capital available to nongovernment-owned communications service providers in the same state or locality; and (b) an amount equal to all taxes, licenses, fees, and other assessments applicable to a nongovernment-owned communications provider including, but not limited to, federal, state, and local taxes, rights-of-way franchise consent, or administrative fees, and pole attachment fees; (5) keep separate books and separately account for the revenues, expenses, property, and source of investment dollars associated with the provision of communications service; and (6) be required to prepare and publish an independent annual audit in accordance with generally accepted accounting principles that reflects the full cost of providing the service, including all direct and indirect costs. The indirect costs must include, but are not limited to, amounts for rights-of-way franchise, consent, or administrative fees, regulatory fees, occupation taxes, pole attachment fees, and ad valorem taxes. The annual accounting must reflect any direct or indirect subsidies received by the government-owned communications service provider. Notwithstanding any other provision of law, the Office of Regulatory Staff has jurisdiction to investigate, and the commission has authority to enforce, a government-owned communications service provider to comply with the provisions of this section. Records demonstrating compliance with the provisions of this section must be filed with the commission, provided to the Office of Regulatory Staff and made available for public inspection and copying. Nothing in this article expands or restricts the existing jurisdiction of the commission or the Office of Regulatory Staff regarding a service or provider other than a government-owned communications service provider.

Legislative History

HISTORY: 2002 Act No. 360, SECTION 1A, eff July 1, 2002; 2006 Act No. 318, SECTION 72, eff May 24, 2006; 2012 Act No. 284, SECTION 6, eff June 29, 2012. Editor's Note 2012 Act No. 284, SECTION 11, provides as follows: "The provisions of this act do not expand, diminish, or otherwise affect the provisions of Chapter 151, Title 59 regarding the South Carolina LightRail Consortium"