HB-4314, As Passed House, May 26, 2011HB-4314, As Passed Senate, May 26, 2011

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4314

A bill to amend 1991 PA 179, entitled

"Michigan telecommunications act,"

by amending sections 101, 102, 103, 201, 202, 205, 210, 213, 303,

304, 305, 305a, 305b, 309, 310a, 313, 315, 316, 353a, 401, 502, and

503 (MCL 484.2101, 484.2102, 484.2103, 484.2201, 484.2202,

484.2205, 484.2210, 484.2213, 484.2303, 484.2304, 484.2305,

484.2305a, 484.2305b, 484.2309, 484.2310a, 484.2313, 484.2315,

484.2316, 484.2353a, 484.2401, 484.2502, and 484.2503), sections

101, 102, 103, 201, 202, 205, 210, 213, 303, 304, 305, 309, 315,

316, 401, and 502 as amended and sections 305a, 305b, 310a, and

353a as added by 2005 PA 235 and section 503 as amended by 2000 PA

295, and by adding section 305c; and to repeal acts and parts of

acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 101. (1) This act shall be known and may be cited as the

"Michigan telecommunications act".

(2) The purpose of this act is to do all of the following:

(a) Ensure that every person has access to just, reasonable,

and affordable basic residential telecommunication service.

(b) Allow and encourage competition to determine the

availability, prices, terms, and other conditions of providing

telecommunication services.

~~(c) Restructure regulation to focus on price and quality of~~

~~service and not on the provider. Supplement existing state and~~

~~federal law regarding antitrust, consumer protection, and fair~~

~~trade to provide additional safeguards for competition and~~

~~consumers.~~

of new providers, the development of new technologies, and increase

investment in the telecommunication infrastructure in this state

through incentives to providers to offer the most efficient

services and products.

(d) ~~(e)~~ Improve the opportunities for economic development and

the delivery of essential services including education and health

care.

~~(f) Streamline the process for setting and adjusting the rates~~

~~for regulated services that will ensure effective rate review and~~

~~reduce the costs and length of hearings associated with rate cases.~~

(e) ~~(g)~~ Encourage the use of existing educational

telecommunication networks and networks established by other

commercial providers as building blocks for a cooperative and

efficient statewide educational telecommunication system.

(f) ~~(h)~~ Ensure effective and timely review and disposition of

disputes between telecommunication providers.

(g) ~~(i)~~ Authorize actions to encourage the development of a

competitive telecommunication industry.

Sec. 102. As used in this act:

(a) "Access service" means access to a local exchange network

for the purpose of enabling a provider to originate or terminate

telecommunication services within the local exchange. Except for

end-user common line services, access service does not include

access service to a person who is not a provider.

(b) "Basic local exchange service" or "local exchange service"

means the provision of an access line and usage within a local

calling area for the transmission of high-quality 2-way interactive

switched voice or data communication.

transmitting data over an access line at a rate greater than 200

kilobits per second.

(d) "Cable service" means 1-way transmission to subscribers of

video programming or other programming services and subscriber

interaction for the selection of video programming or other

programming services.

(e) "Commission" means the Michigan public service commission.

(f) "Contested case" or "case" means a proceeding as defined

in section 3 of the administrative procedures act of 1969, 1969 PA

306, MCL 24.203.

(g) "Educational institution" means a public educational

institution or a private non-profit educational institution

approved by the department of education to provide a program of

primary, secondary, or higher education, a public library, or a

nonprofit association or consortium whose primary purpose is

education. A nonprofit association or consortium under this

subdivision shall consist of 2 or more of the following:

(i) Public educational institutions.

(ii) Nonprofit educational institutions approved by the

department of education.

(iii) The state board of education.

(iv) Telecommunication providers.

(v) A nonprofit association of educational institutions or

consortium of educational institutions.

(h) "End user" means the retail subscriber of a

telecommunication service.

(i) "Energy management services" means a service of a public

utility providing electric power, heat, or light for energy use

management, energy use control, energy use information, and energy

use communication.

(j) "Exchange" means 1 or more contiguous central offices and

all associated facilities within a geographical area in which basic

local exchange service is offered by a provider.

(k) "Information services" or "enhanced services" means the

offering of a capability for generating, acquiring, storing,

transforming, processing, retrieving, utilizing, or making

available information, including energy management services, that

is conveyed by telecommunications. Information services or enhanced

services do not include the use of ~~such~~ that capability for the

management, control, or operation of a telecommunications system or

the management of a telecommunications service.

(l) "Interconnection" means the technical arrangements and

other elements necessary to permit the connection between the

switched networks of 2 or more providers to enable a

telecommunication service originating on the network of 1 provider

to terminate on the network of another provider.

(m) "License" means a license issued ~~pursuant to~~ under this

act.

(n) "Line" or "access line" means the medium over which a

telecommunication user connects into the local exchange.

(o) "Local calling area" means a geographic area encompassing

1 or more local communities as described in maps, tariffs, or rate

schedules filed with and approved by the commission.

(p) "Local directory assistance" means the provision by

telephone of a listed telephone number within the caller's area

code.

(q) "Local exchange rate" means the monthly and usage rate,

including all necessary and attendant charges, imposed for basic

local exchange service to customers.

(r) "Loop" means the transmission facility between the network

interface on a subscriber's premises and the main distribution

frame in the servicing central office.

(s) "Operator service" means a telecommunication service that

includes automatic or live assistance to a person to arrange for

completion and billing of a telephone call originating within this

state that is specified by the caller through a method other than 1

of the following:

(i) Automatic completion with billing to the telephone from

which the call originated.

(ii) Completion through an access code or a proprietary account

number used by the person, with billing to an account previously

established with the provider by the person.

(iii) Completion in association with directory assistance

services.

(t) "Operator service provider" or "OSP" means a provider of

operator service.

(u) "Payphone service" means a telephone call provided from a

public, semipublic, or individually owned and operated telephone

that is available to the public and is accessed by the depositing

of coin or currency or by other means of payment at the time the

call is made.

(v) "Person" means an individual, corporation, partnership,

association, governmental entity, or any other legal entity.

(w) "Person with disabilities" means ~~a person~~ an individual

who has 1 or more of the following physical characteristics:

(i) Blindness.

(ii) Inability to ambulate more than 200 feet without having to

stop and rest during any time of the year.

(iii) Loss of use of 1 or both legs or feet.

(iv) Inability to ambulate without the prolonged use of a

wheelchair, walker, crutches, braces, or other device required to

aid mobility.

(v) A lung disease from which the ~~person's~~ individual's

expiratory volume for 1 second, when measured by spirometry, is

less than 1 liter, or from which the ~~person's~~ individual's arterial

oxygen tension is less than 60 mm/hg of room air at rest.

(vi) A cardiovascular disease from which the ~~person~~ individual

measures between 3 and 4 on the New York heart classification

scale, or from which a marked limitation of physical activity

causes fatigue, palpitation, dyspnea, or anginal pain.

(vii) Other diagnosed disease or disorder including, but not

limited to, severe arthritis or a neurological or orthopedic

impairment that creates a severe mobility limitation.

(x) "Port", except for the loop, means the entirety of local

exchange, including dial tone, a telephone number, switching

software, local calling, and access to directory assistance, a

white pages listing, operator services, and interexchange and

intra-LATA toll carriers.

~~(y) "Primary basic local exchange service" means the provision~~

~~of 1 primary access line to a residential customer for voice~~

~~communication and shall include all of the following:~~

(i~~) Not fewer than 100 outgoing calls per month.~~

(ii~~) Not less than 12,000 outgoing minutes per month.~~

(~~iii~~~~) Unlimited incoming calls.~~

(y) ~~(z)~~ "Public safety system" means a communication system

operated by a public entity to provide emergency police, fire,

medical, and other first responder services. Public safety system

includes the Michigan state police communication system.

(z) ~~(aa)~~ "Reasonable rate" or "just and reasonable rate" means

a rate that is not inadequate, excessive, or unreasonably

discriminatory. ~~A rate is inadequate if it is less than the total~~

~~service long run incremental cost of providing the service.~~

(aa) ~~(bb)~~ "Residential customer" means a person to whom

telecommunication services are furnished predominantly for personal

or domestic purposes at the person's dwelling.

(bb) ~~(cc)~~ "Special access" means the provision of access

service, other than switched access service, to a local exchange

network for the purpose of enabling a provider to originate or

terminate telecommunication service within the exchange, including

the use of local private lines.

(cc) ~~(dd)~~ "State institution of higher education" means an

institution of higher education described in sections 4, 5, and 6

of article VIII of the state constitution of 1963.

(dd) ~~(ee)~~ "Telecommunications act of 1996" means Public Law

104-104.

(ee) ~~(ff)~~ "Telecommunication provider" or "provider" means a

person that for compensation provides 1 or more telecommunication

services. Telecommunication provider does not include a provider of

commercial mobile service as defined in section 332(d)(1) of the

telecommunications act of 1996, 47 USC 332.

(ff) ~~(gg)~~ "Telecommunication services" or "services" includes

regulated and unregulated services offered to customers for the

transmission of 2-way interactive communication and associated

usage. A telecommunication service is not a public utility service.

(gg) ~~(hh)~~ "Toll service" means the transmission of 2-way

interactive switched communication between local calling areas.

Toll service does not include individually negotiated contracts for

similar telecommunication services or wide area telecommunications

service.

(hh) ~~(ii)~~ "Total service long run incremental cost" means,

given current service demand, including associated costs of every

component necessary to provide the service, 1 of the following:

(i) The total forward-looking cost of a telecommunication

service, relevant group of services, or basic network component,

using current least cost technology that would be required if the

provider had never offered the service.

(ii) The total cost that the provider would incur if the

provider were to initially offer the service, group of services, or

basic network component.

(ii) ~~(jj)~~ "Wide area telecommunications service" or "WATS"

means the transmission of 2-way interactive switched communication

over a dedicated access line.

Sec. 103. (1) Except as otherwise provided in this act, this

act shall not be construed to prevent any person from providing

telecommunication services in competition with another

telecommunication provider.

(2) The commission shall submit an annual report describing

the status of competition in telecommunication services in this

state, including, but not limited to, the toll and local exchange

service markets in this state. The report required under this

section shall be submitted to the governor and the house and senate

standing committees with oversight of telecommunication issues.

(3) A provider shall submit to the commission all information

requested by the commission necessary for the preparation of the

annual report under this section.

(4) Subsections (2) and (3) do not apply after the commission

issues its annual report under subsection (2) in 2013.

Sec. 201. (1) Except as otherwise provided by this act or

federal law, the ~~Michigan public service~~ commission ~~shall have~~ has

the jurisdiction and authority to administer this act and all

federal telecommunications laws, rules, orders, and regulations

that are delegated to the state, including, but not limited to, the

authority to arbitrate and enforce interconnection agreements and

to establish rates in accordance with the standards set forth by

applicable law.

(2) The commission shall exercise its jurisdiction and

authority consistent with this act and all federal

telecommunications laws, rules, orders, and regulations.

Sec. 202. (1) In addition to the other powers and duties

prescribed by this act, the commission shall do all of the

following:

(a) Establish by order the manner and form in which

telecommunication providers of regulated services within the state

keep accounts, books of accounts, and records in order to determine

the total service long-run incremental ~~costs and imputation~~ cost

requirements of this act of providing a service. The commission

requirements under this subdivision shall be consistent with any

regulations covering the same subject matter made by the federal

communications commission.

(b) ~~Require~~ Except as otherwise provided in this subdivision,

require by order that a provider of a regulated service, including

access service, make available for public inspection and file with

the commission a schedule of the provider's rates, services, and

conditions of service, including access service provided by

contract. Except for access service, a provider is exempt from any

commission order requiring that provider to file with the

commission its rates, services, and conditions of regulated service

if the provider files a certification with the commission opting

out of the filing requirement. A certification under this

subdivision shall be signed by an officer of the provider.

enforce quality standards for all of the following:

(i) The provision of basic local exchange service to end users.

(ii) The provision of unbundled network elements and local

interconnection services to providers ~~which~~ that are used in the

provision of basic local exchange service.

(iii) The timely and complete transfer of an end user from 1

provider of basic local exchange service to another provider.

(iv) Providers of basic local exchange service that cease to

provide the service to any segment of end users or geographic area,

go out of business, or withdraw from the state, including the

transfer of customers to other providers and the reclaiming of

unused telephone numbers.

~~(d) Preserve the provision of high quality basic local~~

~~exchange service.~~

(2) Rules promulgated under subsection (1)(c) shall include

remedies for the enforcement of the rules that are consistent with

this act and federal law. Rules promulgated under subsection

(1)(c)(ii) shall not apply to the provision of unbundled network

elements and local interconnection services subject to quality

standards in an interconnection agreement approved by the

commission. In promulgating any rules under subsection (1)(c), the

commission shall consider to what extent current market conditions

are sufficient to provide adequate service quality to basic local

exchange service end users. Any service quality rules promulgated

by the commission shall expire within 3 years of the effective date

of the rules. The commission may, ~~prior to~~ before the expiration of

the rules, promulgate new rules under subsection (1)(c). However,

the commission may promulgate new rules under subsection (1)(c)(iii)

at any time. Any service quality rules promulgated by the

commission under subsection (1)(c)(i) and any retail service quality

rules promulgated before January 1, 2006 shall expire on June 30,

2011.

(3) The commission shall permit the electronic filing of any

pleadings, tariffs, or any other document required or allowed to be

filed with the commission under this act.

Sec. 205. ~~(1)~~ The commission may investigate and resolve

complaints under this act. The penalties under this act shall not

be imposed for a violation that occurred more than 2 years before

the date the complaint was filed.

~~(2) If the commission finds, after notice and hearing, that~~

~~the rates, quality, general availability, or conditions for a~~

~~regulated service violate this act, an order of the commission~~

~~under this act, or is adverse to the public interest, the~~

~~commission may require changes in how the telecommunication~~

~~services are provided. The commission's authority includes, but is~~

~~not limited to, the revocation of a license and issuing cease and~~

~~desist orders.~~

Sec. 210. (1) Except under the terms of a mandatory protective

order, trade secrets and commercial or financial information

submitted under this act are exempt from the freedom of information

act, 1976 PA 442, MCL 15.231 to 15.246.

(2) If information is disclosed ~~pursuant to~~ under a mandatory

protective order, then the information may be included in the

commission's evidentiary record if admissible, but shall remain

confidential.

(3) There is a rebuttable presumption that cost studies,

customer usage data, marketing studies, and contracts between

providers are trade secrets or commercial or financial information

protected under subsection (1). The burden of removing the

presumption under this subsection is with the party seeking to have

the information disclosed.

(4) Information regarding settlement, including a recommended

settlement issued by a mediator in a proceeding, shall be disclosed

only to the parties to the proceeding unless all parties consent to

disclosure. A mediator's recommended settlement may be disclosed to

the commission after the commission has issued a final order. The

administrative law judge assigned to any contested case proceeding

arising from a mediation shall not be made aware of the acceptance

or rejection by the parties of the recommended settlement, or the

terms of the recommended settlement. The parties to the mediation

shall not disclose or reveal the terms of the recommended

settlement to anyone other than the parties to the mediation.

Sec. 213. (1) Subject to section 201 and limited to its

specific authority over a service as provided under this act, the

commission may promulgate rules under the administrative procedures

act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

~~(2) The following administrative rules shall not apply to~~

~~telecommunication providers or telecommunication services:~~

~~(a) Electric power and communication lines: R 460.581 to R~~

~~460.592.~~

~~(b) Intrastate telephone services and facilities: R 460.1951~~

~~to R 460.1968.~~

~~(c) Filing procedures for communications common carriers~~

~~tariffs: R 460.2051 to R 460.2057.~~

~~(d) Consumer standards and billing practices, residential~~

~~telephone service: R 460.2211 to R 460.2279.~~

~~(e) Uniform systems of accounts for class A and class B~~

~~telephone companies: R 460.9041 and R 460.9059.~~

(2) ~~(3)~~ A proceeding before the commission to promulgate rules

under this act shall be concluded within 180 days from the date

that the proceeding is initiated.

(3) The following administrative rules are rescinded:

(a) Privacy standards for telecommunication services, R

484.201 to R 484.208 of the Michigan administrative code.

(b) Billing standards for basic residential telecommunication

service, R 484.301 to R 484.386 of the Michigan administrative

code.

of the Michigan administrative code.

Sec. 303. (1) The sale or transfer of shares of stock of a

provider of ~~primary~~ basic local exchange service is not a sale or

transfer of a license or a discontinuance of service.

(2) The commission has the authority to approve or deny a

proposed addition, elimination, or modification of an area code in

this state. The commission shall give public notice and shall

conduct a public hearing in the affected geographic area before an

addition, elimination, or modification of an area code is made in

this state.

(3) A license issued under this act is not transferable to an

unlicensed provider.

(4) In case of the bankruptcy of a licensed provider, the

commission shall establish the procedures for the transfer of the

license to another qualified provider.

Sec. 304. ~~(1) The rates for primary basic local exchange~~

~~service shall be just and reasonable. Each provider shall set the~~

~~initial rates for primary basic local exchange service to be~~

~~effective no later than April 1, 2006. Except as provided under~~

~~section 310a or a higher rate approved by the commission under~~

~~subsection (2)(d), the initial rates may not exceed the rates for~~

~~the lowest cost calling plan that includes a limited number of~~

~~outgoing calls of the provider in place before the rates are set~~

~~under this subsection. If a provider does not offer a calling plan~~

~~with a limited number of outgoing calls, the provider shall set the~~

~~initial rate for primary basic local exchange service which shall~~

~~be just and reasonable and may be subject to commission review~~.

~~(2) A provider may alter its rates for primary basic local~~

~~exchange services by 1 or more of the following:~~

~~(a) Filing with the commission notice of a reduction in a~~

~~primary basic local exchange rate. A rate alteration under this~~

~~subdivision shall become effective without commission review or~~

~~approval.~~

~~(b) Filing with the commission a notice of an increase in a~~

~~primary basic local exchange rate to a level not to exceed the rate~~

~~established under subsection (1) or subdivisions (c) and (d). A~~

~~rate alteration under this subdivision is effective without~~

~~commission review or approval.~~

~~(c) Filing with the commission notice of an increase in a~~

~~basic local exchange rate that does not exceed 1% less than the~~

~~consumer price index. Unless the commission determines that the~~

~~rate alteration exceeds the allowed increase under this~~

~~subdivision, the rate alteration shall take effect 90 days from the~~

~~date of the notice required under subsection (3). As used in this~~

~~subdivision, "consumer price index" means the most recent reported~~

~~annual average percentage increase in the Detroit consumer price~~

~~index for all items for the prior 12-month period by the United~~

~~States department of labor.~~

~~(d) Filing with the commission an application to increase a~~

~~primary basic local exchange rate in an amount greater than that~~

~~allowed under subsection (1) or subdivision (c). The application~~

~~shall be accompanied with sufficient documentary support that the~~

~~rate alteration is just and reasonable. The commission shall make a~~

~~determination within the 90-day period provided for in subsection~~

~~(5) of 1 of the following:~~

(i~~) That the rate alteration is just and reasonable.~~

(ii~~) That a filing under section 203 is necessary to review the~~

~~rate alteration.~~

~~(3) Notice to customers of a rate alteration is required for a~~

~~rate alteration under subsection (2)(c) or (d) and shall be~~

~~included in or on the bill of each affected customer of the~~

~~provider at least 1 billing cycle before the effective date of the~~

~~rate alteration.~~

~~(4) The notice required under subsection (3) shall contain at~~

~~least all of the following information:~~

~~(a) A statement that the customer's rate may change.~~

~~(b) An estimate of the amount of the annual change for the~~

~~typical residential customer that would result by the rate change.~~

~~(c) A statement that a customer may comment on or receive~~

~~complete details of the rate alteration by calling or writing the~~

~~commission. The statement shall also include the telephone number~~

~~and address of the commission. Complete details of the rate~~

~~alteration shall be provided free of charge to the customer at the~~

~~expense of the provider.~~

~~(5) Except as otherwise provided in subsections (2) and (6),~~

~~an altered primary basic local exchange rate shall take effect 90~~

~~days from the date of the notice required by subsection (3).~~

~~(6) Upon receiving a complaint or pursuant to a determination~~

~~under subsection (2)(d), the commission may require a filing under~~

~~section 203 to review a proposed rate alteration under subsection~~

~~(2)(d). The commission's final order may approve, modify, or reject~~

~~the rate alteration.~~

~~(7) In reviewing a rate alteration under subsection (6), the~~

~~commission shall consider only 1 or more of the following factors~~

~~if relevant to the rate alteration as specified by the provider:~~

~~(a) Total service long run incremental cost of basic local~~

~~exchange services.~~

~~(b) Comparison of the proposed rate to the rates charged by~~

~~other providers in this state for the same service.~~

~~(c) Whether a new function, feature, or capability is being~~

~~offered as a component of basic local exchange service.~~

~~(d) Whether there has been an increase in the costs to provide~~

~~basic local exchange service in the geographic area of the proposed~~

~~rate.~~

~~(e) Whether the provider's further investment in the network~~

~~infrastructure of the geographic area of the proposed rate is~~

~~economically justifiable without the proposed rate.~~

~~(8) A provider shall be allowed only 1 rate increase for each~~

~~regulated service during any 12-month period.~~

(1) ~~(9)~~ A call made to a local calling area adjacent to the

caller's local calling area ~~shall be~~ is considered a local call and

shall be billed as a local call. Effective December 31, 2007, a

call made to a called party who is not located within the

geographic area of the caller's local calling area or an adjacent

local calling area as defined by the commission's order in case

numbers U-12515 and U-12528, dated February 5, 2001, is not a local

call if the tariff of the provider originating the call does not

classify the call as a local call. ~~The commission shall convene a~~

~~workgroup of interested parties for the purpose of resolving issues~~

~~surrounding virtual NXX. Virtual NXX is the assignment of a~~

~~telephone number to customers who are not physically located in the~~

~~exchange to which the NXX is assigned. The workgroup shall consider~~

~~the utilization of virtual NXX services to transport interexchange~~

~~traffic and the associated inter-carrier compensation. Prior to~~

~~July 1, 2006, the commission shall submit a report to the governor~~

~~and the house and senate standing committees with oversight of~~

~~telecommunication issues on the progress of workgroup discussions.~~

~~The report shall include a commission policy statement relating to~~

~~the provision of virtual NXX services, and recommendations for~~

~~legislation, if any.~~

~~(10) A provider not in compliance with subsection (9), or not~~

~~already the subject of a commission order on adjacent local~~

~~calling, shall submit to the commission an adjacent local calling~~

~~plan to implement subsection (9) no later than October 1, 2006. In~~

~~reviewing the plan, the commission shall give consideration to the~~

~~revenues lost and additional cost incurred by the provider in~~

~~implementing the plan and shall approve or modify the plan or find~~

~~that the plan is not required because a cost benefit analysis~~

~~demonstrates that the plan is not in the best interest of the~~

~~customers.~~

~~(11) An alteration by a provider to the rate of a package,~~

~~combination, or bundle of telecommunication or other services which~~

~~includes primary basic local exchange service is not subject to~~

~~this section as long as the primary basic local exchange service~~

~~component of the package, combination, or bundle is available for~~

~~purchase on a stand-alone basis.~~

~~(12) A provider shall offer its unregulated calling features~~

~~on a stand-alone basis to its primary basic local exchange service~~

~~customers. The purchase of a calling feature under this subsection~~

~~shall not affect the regulated rate of the primary basic local~~

~~exchange service.~~

~~(13) A person with disabilities or who is voluntarily~~

~~providing a service for an organization classified by the internal~~

~~revenue service as a section 501(c)(3) or (19) organization, or a~~

~~person who provides a service for a congressionally chartered~~

~~veterans organization or their duly authorized foundations, is~~

~~exempt from the 100 calls per month limitation and shall receive a~~

~~flat rate allowing unlimited calls per month. A person exempt from~~

~~the call cap under this subsection shall not be charged a rate~~

~~greater than the flat rate charged residential customers for~~

~~primary basic local exchange service.~~

~~(14) Except as provided in subsection (15), for the purposes~~

~~of this section and the act, providers who, together with any~~

~~affiliated providers, provide basic local exchange service or basic~~

~~local exchange and toll service to less than 250,000 end-users in~~

~~this state may determine total service long run incremental cost~~

~~through preparation of a cost study or may determine that their~~

~~total service long run incremental cost is the same as that of a~~

~~provider with more than 250,000 end-users.~~

(2) ~~(15)~~ A provider of basic local exchange service with less

than ~~15,000~~ 10,000 end-users in this state may determine that their

total service long run incremental cost is the same as that of a

provider with more than 250,000 end-users.

~~(16) A provider shall file with the commission for review and~~

~~approval a tariff for the rates and charges for calls made that~~

~~exceed the 100-call limit of primary basic local exchange service.~~

Sec. 305. A provider of basic local exchange service shall not

do any of the following:

(a) Discriminate against another provider by refusing or

delaying access service to the local exchange.

(b) Refuse or delay interconnections or provide inferior

connections to another provider.

provider.

(d) Impair the speed, quality, or efficiency of lines used by

another provider.

(e) Develop new services to take advantage of planned but not

publicly known changes in the underlying network.

(f) Refuse or delay a request of another provider for

information regarding the technical design, equipment capabilities

and features, geographic coverage, and traffic patterns of the

local exchange network.

(g) Refuse or delay access service or be unreasonable in

connecting another provider to the local exchange whose product or

service requires novel or specialized access service requirements.

(h) Upon a request, fail to fully disclose in a timely manner

all available information necessary for the design of equipment

that will meet the specifications of the local exchange network.

(i) Discriminate against any provider or any party who

requests the information for commercial purposes in the

dissemination of customer proprietary information. A provider shall

provide without unreasonable discrimination or delay telephone

directory listing information and related services to persons

purchasing telephone directory listing information to the same

extent and in the same quality as provided to the provider,

affiliates of the provider, or any other listing information

purchaser.

(j) Refuse or delay access service by any person to another

provider.

~~(k) Sell, lease, or otherwise transfer an asset to an~~

~~affiliate for an amount less than the fair market value of the~~

~~asset.~~

(l~~) Buy, lease, or otherwise acquire an asset from an affiliate~~

~~of the provider for an amount greater than the fair market value of~~

~~the asset.~~

(k) ~~(m)~~ Bundle unwanted services or products for sale or lease

to another provider.

(l) ~~(n)~~ Perform any act that has been prohibited by this act or

an order of the commission.

(m) ~~(o)~~ Sell services or products, extend credit, or offer

other terms and conditions on more favorable terms to an affiliate

of the provider than the provider offers to other providers.

~~(p) Discriminate in favor of an affiliated burglar and fire~~

~~alarm service over a similar service offered by another provider.~~

Sec. 305a. (1) Except as otherwise provided by federal law,

where technically feasible, a provider originating or forwarding an

intrastate call that is terminated on the network of another

provider shall do all of the following:

(a) For originated calls, transmit the telephone number of the

party originating the call. The telephone number shall be

transmitted without alteration in the network signaling

information.

(b) For forwarded calls, transmit the telephone number of the

party originating the call to the extent ~~such~~ that information has

been provided by the originating carrier. The telephone number

shall be transmitted without alteration in the network signaling

information.

(2) The commission ~~may~~ shall investigate complaints alleging

violations of this section and may initiate proceedings under

section 203 to resolve disputes between providers regarding

identification of traffic and disputes regarding compensation

rights and obligations between providers who originate, forward, or

terminate intrastate traffic.

(3) If the commission determines that the telephone number has

not been transmitted as required by this section, the provider

against whom the complaint was filed shall demonstrate that it was

not technically feasible to transmit the information, or that it

had a legitimate business or other good faith reason for not

transmitting the telephone number.

(4) If the commission determines that a provider violated this

section, the commission shall determine if the violation resulted

in a nonpayment or underpayment of compensation to the complaining

provider under the terms of the parties' compensation agreement or

its intrastate access tariff. The commission shall determine the

amount of the nonpayment or underpayment and order the violating

provider to make payment. The commission ~~may~~ shall assess a fine

against the violating provider in an amount equal to 2 times the

payment amount, or and may take any other action authorized by

Michigan law that it considers necessary.

(5) A provider that originates an intrastate call subject to

section 251(b)(5) of the telecommunications act of 1996, 47 USC

251, shall agree to establish a reciprocal compensation arrangement

for the termination of those calls. Originating and terminating

providers shall agree to begin negotiations no more than 30 days

after the originating provider receives a request from a

terminating provider to establish an arrangement. During the

negotiation period, reciprocal compensation rates shall be assessed

by the terminating carrier under an interim arrangement with the

originating carrier. Originating and terminating providers shall

use good faith efforts to conclude negotiations and finalize an

agreement within a reasonable time period.

(6) A provider that originates an intrastate intra-LATA call

subject to a terminating carrier's intrastate access tariffs shall

pay the tariffed rate for termination of the call.

(7) The commission may resolve disputes under this section

between originating and terminating providers related to

negotiation of the reciprocal compensation agreement and the

payment of the tariffed rates.

Sec. 305b. A provider of any telecommunication service shall

do all of the following:

(a) ~~Prior to the customer purchasing the service or upon~~ Upon

request, provide each customer a clear and simple explanation of

the terms and conditions of the services purchased by the customer

including, but not limited to, a statement of all fees, charges,

and taxes that will be included in the customer's monthly bill.

(b) The statement required under subdivision (a) shall include

a good faith estimate by the provider of the actual monthly cost

that the customer will be required to pay if the service is

purchased.

truth in billing, E 9-1-1 services, and ~~primary~~ basic local

exchange service.

(d) If E 9-1-1 service is not available to the customer,

ensure that the customer has an alternative means to reach

emergency service responders.

~~(e) Comply with sections 505 and 507.~~

Sec. 305c. A provider of basic local exchange service shall

comply with the following emergency power requirements:

(a) A facilities-based provider shall equip each central

office, remote switch, remote line unit, and interexchange toll

switching office or access tandem with a minimum of 3 hours of peak

load battery reserve, if permanent auxiliary power is installed,

and 5 hours of battery reserve, if permanent emergency power is not

installed, or 8 hours of battery reserve if the central office is

in a remote location. A facilities-based provider shall have

available a mobile power unit to be delivered and connected to

central offices, remote switches, and remote line units within 8

hours.

(b) An E 9-1-1 service supplier shall provide 24-hour, 7-day-

a-week database access to permit information to be acquired or

corrected.

answering point, or any entity providing or maintaining E 9-1-1

database information shall correct each error in the 9-1-1 system

or database within 1 business day.

Sec. 309. (1) A provider of basic local exchange service shall

provide to each customer local directory assistance and may

distribute a printed telephone directory to each customer. If a

provider of basic local exchange service elects not to distribute a

printed telephone directory to each customer, a customer may

request either a printed telephone directory or an electronic

telephone directory from the provider that shall provide that

directory at no additional charge to the customer. ~~, an annual~~

~~printed telephone directory.~~

(2) A provider of basic local exchange service shall provide

each customer at no additional charge the option of having access

to 900 prefix services blocked through the customer's exchange

service.

Sec. 310a. ~~(1)~~ After June 1, 2007, all providers of

telecommunication services in this state shall not charge, assess,

or impose on end-users an intrastate subscriber line charge or end-

user line charge.

~~(2) If a provider is charging, assessing, or imposing an~~

~~intrastate subscriber line charge or end-user line charge on July~~

~~1, 2005, the provider may no later than June 1, 2007 file with the~~

~~commission under section 304(2)(d) notice of an increase in the~~

~~primary basic local exchange rate in an amount not to exceed the~~

~~provider's intrastate subscriber line charge or end-user line~~

~~charge in effect on July 1, 2005.~~

Sec. 313. (1) A telecommunication provider that provides

either basic local exchange or toll service, or both, ~~may~~ shall not

discontinue either service to an exchange unless 1 or more

alternative ~~telecommunication~~ providers for toll service, or 2 or

more alternative providers for basic local exchange service, are

furnishing ~~the same telecommunication~~ a comparable voice service to

the customers in the exchange. A comparable voice service includes

any 2-way voice service offered through any form of technology that

is capable of placing and receiving calls from a provider of basic

local exchange service, including voice over internet protocol

services and wireless services.

(2) A telecommunication provider proposing to discontinue a

regulated service to an exchange shall file a notice of the

discontinuance of service with the commission, publish the notice

in a newspaper of general circulation within the exchange, provide

notice to each of its customers within the exchange by first-class

mail or within customer bills, and provide other reasonable notice

as required by the commission.

(3) Within 30 60 days after the date of publication or receipt

of the notice required by subsection (2), a person or other

telecommunication provider affected by a discontinuance of services

by a telecommunication provider may apply to the commission to

determine if the discontinuance of service is authorized ~~pursuant~~

to under this act. Within 90 days after the date of publication of

the notice required by subsection (2), the commission may, in

response to a request or on its own initiative, commence a

proceeding to determine if the discontinuance of service is

authorized under this act. The commission has 180 days from the

date any proceeding is initiated under this subsection to issue its

final order. A provider shall not discontinue service unless it has

provided at least 60 days' notice to each customer after a

commission order has been issued under this subsection or after the

last day for initiating a proceeding under this subsection.

(4) Discontinuance of basic local exchange service under this

section by an incumbent local exchange carrier does not affect the

requirements of that incumbent local exchange carrier under federal

law. As used in this subdivision, "incumbent local exchange

carrier" means that term as defined in section 251(h) of the

telecommunications act of 1996, 47 USC 251.

Sec. 315. (1) The commission shall require each provider of

basic local exchange service to provide a text telephone-

telecommunications device for the deaf at ~~costs~~ cost to each

individual who is certified as deaf or hard of hearing or speech-

impaired by a licensed physician, licensed audiologist, or

qualified state agency, and to each public safety answering point

as defined in section 102 of the emergency ~~telephone~~ 9-1-1 service

enabling act, 1986 PA 32, MCL 484.1102.

(2) The commission shall require each provider of basic local

exchange service to provide a telecommunication relay service

whereby persons using a text telephone-telecommunications device

for the deaf can communicate with persons using a voice telephone

through the use of third party intervention or automated

translation. Each provider of basic local exchange service shall

determine whether to provide a telecommunication relay service on

its own, jointly with other basic local exchange providers, or by

contract with other telecommunication providers. The commission

shall determine the technical standards and essential features of

text telephone and telecommunication relay service to ensure their

compatibility and reliability.

~~(3) The Michigan telecommunication relay service advisory~~

~~board is created within the department. The board shall consist of~~

~~9 members. One member shall be the chair of the commission or his~~

~~or her designated representative. One member shall be the director~~

~~of the division on deaf and hard of hearing within the department~~

~~or his or her designated representative. One member shall be a deaf~~

~~consumer appointed by the director of the department upon the~~

~~recommendation of the Michigan deaf association. One member shall~~

~~be a hard of hearing consumer appointed by the department upon the~~

~~recommendation of Michigan self-help for hard of hearing. One~~

~~member shall be a speech impaired consumer appointed by the~~

~~director of the department. Four members shall be appointed by the~~

~~director of the department to represent telecommunication~~

~~providers. Appointed members shall be appointed for terms of 4~~

~~years. A vacancy on the board shall be filled in the same manner as~~

~~the original appointment for the remainder of the unexpired term.~~

~~(4) The board shall designate from among its appointed members~~

~~a chairperson and vice-chairperson, who shall serve for 2-year~~

~~terms and who may be reelected. The board shall meet not less than~~

~~4 times each year. Special meetings may be called by the~~

~~chairperson, or upon written request of not less than 4 board~~

~~members. Meetings shall be held at a location designated by the~~

~~chairperson.~~

~~(5) Members of the board shall serve without compensation, but~~

~~shall be reimbursed for actual and necessary expenses.~~

~~(6) Staff services shall be performed by personnel of the~~

~~department. Assistance shall also be made available, as requested~~

~~by the board, from other agencies, departments, and authorities of~~

~~the state. The board may employ a staff to assist it in the~~

~~performance of its duties, subject to civil service rules and~~

~~within fiscal restraints.~~

~~(7) A majority of the members appointed to and serving on the~~

~~board constitute a quorum. A majority vote of the members voting~~

~~shall be required to pass upon any question, action, or business of~~

~~the board.~~

~~(8) The business performed by the board shall be conducted at~~

~~a public meeting of the board. The board shall keep minutes of its~~

~~proceedings, showing the vote of each member on each proposition or~~

~~question, or indicating if a member is absent or fails to vote. A~~

~~record of board action and business shall be made and maintained.~~

~~(9) A writing prepared, owned, used, in the possession of, or~~

~~retained by the board in the performance of an official function~~

~~shall be made available to the public.~~

(3) ~~(10)~~ Rates and charges for calls placed through a

telecommunication relay service shall not exceed the rates and

charges for calls placed directly from the same originating

location to the same terminating location. Unless ordered by the

commission, a provider of a telecommunications relay service shall

not be required to handle calls from public telephones except for

calls charged collect , or to cash, to a credit card, or a third

party number.

(4) ~~(11)~~ Notwithstanding any other provision of this act, a

provider may offer discounts on toll calls where a text telephone-

telecommunications device for the deaf is used. The commission

shall not prohibit such discounts on toll calls placed through a

telecommunication relay service.

(5) ~~(12)~~ The commission shall establish a rate for each

subscriber line of a provider to allow the provider to recover

costs incurred under this section and may waive the costs assessed

under this section to individuals who are deaf or severely hearing

impaired or speech impaired. The rate established by the commission

under this subsection may be assessed as a line item on an end-

user's bill.

~~(13) No later than January 1, 2008, the board shall conduct a~~

~~study and report to the governor and the house and senate standing~~

~~committees with oversight of telecommunication issues on the~~

~~ability for deaf, hard of hearing, and speech-impaired customers to~~

~~access telecommunication services. The report shall include, but is~~

~~not limited to, activities by the commission to ensure reasonable~~

~~access, impediments to access, identification of activities in~~

~~other states to improve access, and recommendations for~~

~~legislation, if any.~~

~~(14) As used in this section:~~

~~(a) "Board" means the Michigan telecommunication relay service~~

~~advisory board created under subsection (3).~~

~~(b) "Department" means the department of labor and economic~~

~~growth.~~

Sec. 316. (1) The commission shall require each provider of

residential basic local exchange service to offer certain low

income customers the availability of basic local exchange service

and access service at reduced rates as described in subsections (2)

and (3).

(2) Except as provided under subsections (3) and (4), the rate

reductions for low income customers shall be at a minimum, 20% of

the basic local exchange rate or $8.25, which shall be, inclusive

of any federal contribution, whichever is greater.

(3) If Except as provided under subsection (4), if the low

income customer is 65 years of age or ~~more~~ older, the rate

reduction shall be, at a minimum, 25% of the basic local exchange

rate or $12.35, which shall be inclusive of any federal

contribution, whichever is greater.

(4) The total reduction under subsection (2) or (3) shall not

exceed 100% of all end-user common line charges and the basic local

exchange rate. The dollar amounts in subsections (2) and (3) shall

be adjusted annually to reflect any increases or decreases in the

federal contribution.

(5) To qualify for the reduced rate under this section, the

person's annual income shall not exceed 150% of the federal poverty

~~income standards as determined by the United States office of~~

~~management and budget~~ guidelines published annually in the federal

services and as approved by the state treasurer, or the person must

participate in 1 of the following federal assistance programs:

(a) Medicaid.

(b) Food stamps.

(d) Federal public housing assistance.

(e) Low-income home energy assistance program.

(f) National school lunch program's free lunch program.

(g) Temporary assistance for needy families.

(6) The commission shall establish a rate for each subscriber

line of a provider to allow the provider to recover costs incurred

under this section. The rate established by the commission under

this subsection may be assessed as a line item on an end-user's

bill.

(7) The commission shall take necessary action to notify the

general public of the availability of lifeline services including,

but not limited to, public service announcements, newspaper

notices, and ~~such~~ any other notice reasonably calculated to reach

those who may benefit from the services.

Sec. 353a. (1) When negotiating a successor interconnection

agreement, unless the parties agree otherwise, the parties shall

use an interconnection agreement which has been approved by the

commission in the 3-year period immediately preceding the

commencement of negotiations as the baseline document. ~~A party~~

~~requesting the adoption of language different than that found in~~

~~the baseline document in an arbitration proceeding bears the burden~~

~~of persuasion that the requested change is lawful and appropriate.~~

(2) If a party negotiating an interconnection agreement takes

a position that the opposing party believes is contrary to a prior

ruling of the commission in an arbitration proceeding, the opposing

party ~~shall~~ may file a motion with the commission for a

determination under this section. The motion shall be filed no

later than 90 days from the commencement of negotiations. The

commission shall rule upon the motion within 21 days of the date

the motion is filed, and the commission shall determine the extent

to which the issue may be relitigated.

Sec. 401. (1) Except as otherwise provided by law or preempted

by federal law, the commission ~~shall~~ does not have authority over

enhanced services, paging, cellular, mobile, answering services,

retail broadband service, video, cable service, pay-per-view,

shared tenant, private networks, financial services networks, radio

and television, WATS, personal communication networks, municipally

owned telecommunication system, 800 prefix services, burglar and

fire alarm services, energy management services, except for state

institutions of higher education the reselling of centrex or its

equivalent, payphone services, interconnected voice over internet

protocol service, and the reselling of an unlicensed

telecommunication service. The ~~foregoing~~ services listed in this

subsection shall not be considered part of basic local exchange

service.

(2) The commission ~~shall have~~ has authority over the

telecommunication services specifically provided for in this act.

(3) This section does not modify or affect either of the

following:

(a) The authority of a provider or the commission to act

pursuant to or enforce 47 USC 251, 47 USC 252, any lawful and

applicable tariff, or any state law, regulation, or order related

to wholesale rights and obligations, including the rights and

obligations of local exchange carriers to interconnect and exchange

voice traffic.

(b) The payment of switched access rates or other intercarrier

compensation rates, as applicable.

Sec. 502. (1) A provider of a ~~telecommunication~~ basic local

exchange service shall not do any of the following:

(a) Make a statement or representation, including the omission

of material information, regarding the rates, terms, or conditions

of providing a ~~telecommunication~~ service that is intentionally

false, misleading, or deceptive. As used in this subdivision,

"material information" includes, but is not limited to, a good

faith estimate of all applicable fees, taxes, and charges that will

be billed to the end-user, regardless of whether the fees, taxes,

or charges are authorized by state or federal law.

(b) Charge an end-user for a subscribed service ~~that~~ for which

the end-user did not make an initial affirmative order. Failure to

refuse an offered or proposed subscribed service is not an

affirmative order for the service.

for service provided after the effective date the service was

canceled.

~~(d) If a residential end-user has orally ordered a service,~~

~~fail to confirm the order in writing within 15 days after the~~

~~service is ordered.~~

~~(e) State to an end-user that their basic local exchange~~

~~service or other regulated service will be discontinued unless the~~

~~end-user pays a charge that is due for an unregulated service.~~

~~(f) Disparage the services, business, or reputation of another~~

~~by false, deceptive, or misleading representation of fact.~~

~~(g) Represent to a party to whom services are supplied that~~

~~the services are being supplied in response to a request made by or~~

~~on behalf of the party when they are not.~~

(d) ~~(h)~~ Cause a probability of confusion or a misunderstanding

as to the legal rights, obligations, or remedies of a party to a

transaction by making a an intentionally false, deceptive, or

misleading statement or by failing to inform the customer of a

material fact, the omission of which is deceptive or misleading.

(e) ~~(i)~~ Represent or imply that the subject of a transaction

will be provided promptly, or at a specified time, or within a

reasonable time, if the provider knows or has reason to know it

will not be so provided.

~~(j) Cause coercion and duress as a result of the time and~~

~~nature of a sales presentation.~~

(f) ~~(k)~~ Require the purchase of a regulated service of the

provider as a condition of purchasing an unregulated service.

(g) (l) If a bona fide dispute exists between a customer and

the provider, disconnect the service to the customer before the

resolution of a that dispute.

(2) When the commission has authority to bring a proceeding

for a violation of this section, the commission may accept an

assurance of discontinuance of a method, act, or practice ~~which~~

that is alleged to be unlawful under this section from the person

who is alleged to have engaged, be engaging, or be about to engage

in the method, act, or practice. The assurance ~~shall not be~~ of

discontinuance is not an admission of guilt or and shall not be

introduced in any other proceeding. Unless rescinded by the parties

or voided by the court for good cause, the parties to the assurance

of discontinuance may ~~be enforced~~ enforce the assurance in ~~the~~

circuit court. ~~by the parties to the assurance.~~ The assurance of

discontinuance may include a stipulation for any of the following:

(a) The voluntary payment by the person for the cost of

investigation.

(b) An amount to be held in escrow pending the outcome of an

action.

Sec. 503. ~~(1) The commission shall promulgate rules that~~

~~establish privacy guidelines in the providing of telecommunication~~

~~services.~~

~~(2) The rules promulgated under this section shall include,~~

~~but need not be limited to, protections against the releasing of~~

~~certain customer information and customer privacy intrusions.~~

~~(3)~~ A person who obtains an unpublished telephone number using

a telephone caller identification service shall not do any of the

following without the written consent of the customer of the

unpublished telephone number:

(a) Disclose the unpublished telephone number to another

person for commercial gain.

(b) Use the unpublished telephone number to solicit business.

through a computer data base, on-line bulletin board, or other

similar mechanism.

Enacting section 1. Sections 301a, 306, 308, 309a, 309b, 311,

312, 314, 321, 362, 504, and 602 of the Michigan telecommunications

act, 1991 PA 179, MCL 484.2301a, 484.2306, 484.2308, 484.2309a,

484.2309b, 484.2311, 484.2312, 484.2314, 484.2321, 484.2362,

484.2504, and 484.2602, are repealed.