HOUSE BILL No. 4314

 

February 22, 2011, Introduced by Reps. Horn and Roy Schmidt and referred to the Committee on Energy and Technology.

 

     A bill to amend 1991 PA 179, entitled

 

"Michigan telecommunications act,"

 

by amending sections 101, 102, 103, 202, 205, 210, 211a, 213, 303,

 

305, 305b, 309, 310a, 313, 315, 316, 401, 503, and 601 (MCL

 

484.2101, 484.2102, 484.2103, 484.2202, 484.2205, 484.2210,

 

484.2211a, 484.2213, 484.2303, 484.2305, 484.2305b, 484.2309,

 

484.2310a, 484.2313, 484.2315, 484.2316, 484.2401, 484.2503, and

 

484.2601), sections 101, 102, 103, 202, 205, 210, 213, 303, 305,

 

309, 315, 316, and 401 as amended and sections 211a, 305b, and 310a

 

as added by 2005 PA 235 and sections 503 and 601 as amended by 2000

 

PA 295; 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.

 

     (c) (d) Encourage the introduction of new services, the entry

 

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.

 

     (c) "Broadband service" means a retail service capable of

 

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 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 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 expiratory volume

 

for 1 second, when measured by spirometry, is less than 1 liter, or

 

from which the person's arterial oxygen tension is less than 60

 


mm/hg of room air at rest.

 

     (vi) A cardiovascular disease from which the person 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.

 

     (x) (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.

 

     (y) (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.

 


     (z) (bb) "Residential customer" means a person to whom

 

telecommunication services are furnished predominantly for personal

 

or domestic purposes at the person's dwelling.

 

     (aa) (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.

 

     (bb) (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.

 

     (cc) (ee) "Telecommunications act of 1996" means Public Law

 

104-104.

 

     (dd) (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.

 

     (ee) (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.

 

     (ff) (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.

 


     (gg) (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.

 

     (hh) (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.

 

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

 


prescribed by this act, the commission shall do all each 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

 

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.

 

     (a) (b) 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.

 

     (b) (c) Promulgate rules under section 213 to establish and

 

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 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) (1)(b) 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) (1)(b)(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) (1)(b)(i), 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 under

 

subsection (1)(b) shall expire within 3 years of the effective date

 

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

 

rules, promulgate new rules under subsection (1)(c) (1)(b). Any

 

service quality rules promulgated by the commission under

 

subsection (1)(b)(i) 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 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. 211a. A provider of any telecommunication service

 

utilizing a new or emerging technology shall register with the

 

commission. The registration shall include all of the following

 

information:

 

     (a) The name of the provider.

 

     (b) A description of the services provided.

 

     (c) The address and telephone number of the provider's

 

principal office.

 

     (d) The address and telephone number of the provider's

 

registered agent authorized to receive service in this state.

 

     (e) Any other information the commission considers necessary.

 

     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) Any rules promulgated by the commission under this section

 

before the effective date of the amendatory act that added this

 

subsection that are inconsistent with the limited rule-making

 

authority in this section are rescinded.

 

     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. 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.

 

     (c) Degrade the quality of access service provided to another

 

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. 305b. A provider of any telecommunication service shall

 

do all both of the following:

 

     (a) Prior to the customer purchasing the service or 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.

 

     (a) (c) Comply with all federal and state requirements

 

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

 

local exchange service.

 

     (b) (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. 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, that provider shall

 

provide a printed or electronic telephone directory to a customer

 

upon request, 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 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, and

 

provide other reasonable notice as required by the commission.

 

     (3) Within 30 days after the date of publication 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 this

 


act.

 

     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

 

register by the United States department of health and human

 

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.

 

     (c) Supplemental security income.

 

     (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. 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 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.

 

     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.

 

     (c) Intentionally disclose the unpublished telephone number

 

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

 

similar mechanism.

 

     Sec. 601. If after notice and hearing the commission finds a

 

person has violated this act, the commission shall order remedies

 

and penalties to protect and make whole ratepayers and other

 

persons who have suffered an economic loss as a result of the

 

violation, including, but not limited to, 1 or more of the

 

following:

 

     (a) Except as provided in subdivision (b), ordering the person

 

to pay a fine for the first offense of not less than $1,000.00 nor

 

more than $20,000.00 per day that the person is in violation of

 

this act, and for each subsequent offense, a fine of not less than

 

$2,000.00 nor more than $40,000.00 per day.

 

     (b) If the provider has less than 250,000 access lines,

 

ordering the provider to pay a fine for the first offense of not

 

less than $200.00 or more than $500.00 per day that the provider is

 

in violation of this act, and for each subsequent offense a fine of

 

not less than $500.00 or more than $1,000.00 per day.

 

     (c) A Ordering a refund to the ratepayers of the provider of

 


any collected excessive rates.

 

     (d) If the person is a licensee under this act, ordering that

 

the person's license is revoked.

 

     (e) Cease Issuing cease and desist orders.

 

     (f) Except for an arbitration case under section 252 of part

 

II of title II of the communications act of 1934, chapter 622, 110

 

Stat. 66, attorney fees and actual costs of a person or a provider

 

of less than 250,000 end-users.

 

     Enacting section 1. Sections 301a, 304, 306, 308, 309a, 309b,

 

311, 312, 314, 321, 351, 352, 353, 355, 356, 357, 358, 359, 362,

 

363, 375, 376, 402, 502, 504, and 602 of the Michigan

 

telecommunications act, 1991 PA 179, MCL 484.2301a, 484.2304,

 

484.2306, 484.2308, 484.2309a, 484.2309b, 484.2311, 484.2312,

 

484.2314, 484.2321, 484.2351, 484.2352, 484.2353, 484.2355,

 

484.2356, 484.2357, 484.2358, 484.2359, 484.2362, 484.2363,

 

484.2375, 484.2376, 484.2402, 484.2502, 484.2504, and 484.2602, are

 

repealed.