HOUSE BILL No. 4804


     June 17, 1999, Introduced by Rep. Shulman 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, 201, 202, 203, 208, 213, 251,

   252, 253, 303, 304, 304a, 304b, 305, 306, 308, 309b, 310, 312a,

   317, 352, 353, 354, 355, 356, 357, 358, 362, 401, 402, 502, 601,

   and 604 (MCL 484.2101, 484.2102, 484.2103, 484.2201, 484.2202,

   484.2203, 484.2208, 484.2213, 484.2251, 484.2252, 484.2253,

   484.2303, 484.2304, 484.2304a, 484.2304b, 484.2305, 484.2306,

   484.2308, 484.2309b, 484.2310, 484.2312a, 484.2317, 484.2352,

   484.2353, 484.2354, 484.2355, 484.2356, 484.2357, 484.2358,

   484.2362, 484.2401, 484.2402, 484.2502, 484.2601, and 484.2604),

   sections 101, 202, 203, 208, 213, 303, 304, 305, 306, 308, 310,

   401, 601, and 604 as amended and sections 251, 252, 253, 304a,

   309b, 312a, 317, 352, 353, 354, 355, 356, 357, 358, 362, and 502

   as added by 1995 PA 216, and sections 102 and 304b as amended by


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   1998 PA 41, and by adding sections 214, 316a, 502a, and 507; and

   to repeal acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

 2    the "Michigan telecommunications act".

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

 4         (a) Ensure that every person has access to AFFORDABLE basic

 5    residential telecommunication service.

 6         (b) Allow and encourage competition to determine the avail-

 7    ability, prices, terms, and other conditions of providing tele-

 8    communication services.

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

10     service and not on the provider.  Rely more on 
                       SUPPLEMENT exist-

11    ing state and federal law regarding antitrust, consumer protec-

12    tion, and fair trade to provide ADDITIONAL safeguards for compe-

13    tition and consumers.

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

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

16    investment in the telecommunication infrastructure in this state

17    through incentives to providers to offer the most efficient serv-

18    ices and products.

19         (e) Improve the opportunities for economic development and

20    the delivery of essential services including education and health

21    care.

22         (f) Streamline the process for setting and adjusting the

23    rates for regulated services that will ensure effective rate





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 1    review and reduce the costs and length of hearings

 2     traditionally  associated with rate cases.

 3         (g) Encourage the use of existing educational telecommunica-

 4    tion networks and networks established by other commercial pro-

 5    viders as building blocks for a cooperative and efficient state-

 6    wide educational telecommunication system.

 7         (h) Ensure effective review and disposition of disputes

 8    between telecommunication providers.

 9         (I) IMPLEMENT CERTAIN PROVISIONS OF THE TELECOMMUNICATIONS

10    ACT OF 1996, PUBLIC LAW 104-104, 110 STAT. 56.

11         (J) PROHIBIT CONTRACTS, COMBINATIONS, AND CONSPIRACIES IN

12    RESTRAINT OF TRADE OR COMMERCE IN TELECOMMUNICATION SERVICES AND

13    PROHIBIT MONOPOLIES AND ATTEMPTS TO MONOPOLIZE TRADE OR COMMERCE

14    IN TELECOMMUNICATION SERVICES.

15         (K) AUTHORIZE THE COMMISSION TO TAKE ACTIONS TO ENCOURAGE

16    THE DEVELOPMENT OF A COMPETITIVE TELECOMMUNICATION INDUSTRY.

17         Sec. 102.  As  EXCEPT AS OTHERWISE PROVIDED BY
             THIS ACT, AS

18    used in this act:

19         (a) "Access service" means access to a local exchange net-

20    work for the purpose of enabling a provider to originate or ter-

21    minate telecommunication services within the local exchange.

22    Except for end-user common line services, access service does not

23    include access service to a person who is not a provider.

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

25    service" means the provision of an access line and usage within a

26    local calling area for the transmission of high-quality 2-way

27    interactive switched voice or data communication.



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

 2    of video programming or other programming services and subscriber

 3    interaction for the selection of video programming or other pro-

 4    gramming services.

 5         (d) "Commission" means the Michigan public service commis-

 6    sion IN THE DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES.

 7         (e) "Contested case" or "case" means a proceeding as defined

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

 9    PA 306, MCL 24.203.

10         (F) "COMPETITIVE LOCAL EXCHANGE CARRIER" OR "CLEC" MEANS A

11    PROVIDER OF BASIC LOCAL EXCHANGE SERVICE AS DEFINED IN THE TELE-

12    COMMUNICATIONS ACT OF 1996 THAT IS NOT AN INCUMBENT LOCAL

13    EXCHANGE CARRIER.

14         (G) "DSL" MEANS DIGITAL SUBSCRIBER LINE.

15         (H)  (f)  "Educational institution" means a
             public educa-

16    tional institution or a private  non-profit 
             NONPROFIT educa-

17    tional institution approved by the department of education to

18    provide a program of primary, secondary, or higher education, a

19    public library, or a nonprofit association or consortium whose

20    primary purpose is education.  A nonprofit association or consor-

21    tium under this subdivision shall consist of 2 or more of the

22    following:

23         (i) Public educational institutions.

24         (ii) Nonprofit educational institutions approved by the

25    department of education.

26         (iii) The state board of education.





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 1         (iv) Telecommunication providers.

 2         (v) A nonprofit association of educational institutions
             or

 3    consortium of educational institutions.

 4         (I)  (g)  "Energy management services" means a
             service of a

 5    public utility providing electric power, heat, or light for

 6    energy use management, energy use control, energy use informa-

 7    tion, and energy use communication.

 8         (J)  (h)  "Exchange" means 1 or more
             contiguous central

 9    offices and all associated facilities within a geographical area

10    in which local exchange telecommunication services are offered by

11    a provider.

12         (K) "INCUMBENT LOCAL EXCHANGE CARRIER" OR "ILEC" HAS THE

13    SAME MEANING AS DEFINED IN THE TELECOMMUNICATIONS ACT OF 1996.

14         (l)  (i)  "Information services" or
             "enhanced services"

15    means the offering of a capability for generating, acquiring,

16    storing, transforming, processing, retrieving, utilizing, or

17    making available information, including energy management serv-

18    ices, that is conveyed by  telecommunications 
             TELECOMMUNICATION

19    SERVICES.  Information services or enhanced services do not

20    include the use of such capability for the management, control,

21    or operation of a  telecommunications 
             TELECOMMUNICATION system

22    or the management of a  telecommunications 
             TELECOMMUNICATION

23    service.

24         (M)  (j)  "Interconnection" means the
             technical arrangements

25    and other elements necessary to permit the connection between the

26    switched networks of 2 or more providers to enable a





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 1    telecommunication service originating on the network of 1

 2    provider to terminate on the network of another provider.

 3         (N)  (k)  "Inter-LATA prohibition" means the
             prohibitions on

 4    the offering of inter-exchange or inter-LATA service contained in

 5    the  modification of final judgment entered pursuant to a
             consent

 6     decree in United States v American Telephone and Telegraph
                       Co.,

 7     552 F. Supp. 131 (D.D.C. 1982), and in the consent decree

 8     approved in United States v GTE Corp., 603 F. Supp. 730

 9     (D.D.C. 1984)  TELECOMMUNICATIONS ACT OF 1996.

10         (O)  (l)  "LATA" means the local access
             and transport area

11    as defined in  United States v American Telephone and
             Telegraph

12     Co., 569 F. Supp. 990 (D.D.C. 1983)  THE
                       TELECOMMUNICATIONS ACT

13    OF 1996.

14         (P)  (m)  "License" means a license issued
              pursuant to 

15    UNDER this act.

16         (Q)  (n)  "Line" or "access line" means the
             medium over

17    which a telecommunication user connects into the local exchange.

18         (R)  (o)  "Local calling area" means a
             geographic area

19    encompassing 1 or more local communities as described in maps,

20    tariffs, or rate schedules filed with and approved by the

21    commission.

22         (S)  (p)  "Local directory assistance" means
             the provision

23    by  telephone  A TELECOMMUNICATION SERVICE of a
             listed telephone

24    number within the caller's area code.

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

26    rate, including all necessary and attendant charges, imposed for

27    basic local exchange service to customers.



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 1         (U)  (r)  "Loop" means the transmission
             facility between the

 2    network interface on a subscriber's premises and the main distri-

 3    bution frame in the servicing central office.

 4         (V)  (s)  "Operator service" means a
             telecommunication serv-

 5    ice that includes automatic or live assistance to a person to

 6    arrange for completion and billing of a telephone call originat-

 7    ing within this state that is specified by the caller through a

 8    method other than 1 of the following:

 9         (i) Automatic completion with billing to the telephone
             from

10    which the call originated.

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

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

13    previously established with the provider by the person.

14         (iii) Completion in association with directory
             assistance

15    services.

16         (W)  (t)  "Operator service provider" or "OSP"
             means a pro-

17    vider of operator service.

18         (X)  (u)  "Payphone service" means a telephone
             call provided

19    from a public, semipublic, or individually owned and operated

20    telephone that is available to the public and is accessed by the

21    depositing of coin or currency or by other means of payment at

22    the time the call is made.

23         (Y)  (v)  "Person" means an individual,
             corporation, part-

24    nership, association, governmental entity, or any other legal

25    entity.

26         (Z)  (w)  "Person with disabilities" means a
             person who has

27    1 or more of the following physical characteristics:



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 1         (i) Blindness.

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

 3    to stop and rest during any time of the year.

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

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

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

 7    aid mobility.

 8         (v) A lung disease from which the person's expiratory
             volume

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

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

11    60 mm/hg of room air at rest.

12         (vi) A cardiovascular disease from which the person
             measures

13    between 3 and 4 on the New York heart classification scale, or

14    from which a marked limitation of physical activity causes

15    fatigue, palpitation, dyspnea, or anginal pain.

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

17    limited to, severe arthritis or a neurological or orthopedic

18    impairment that creates a severe mobility limitation.

19         (AA)  (x)  "Port", except for the loop, means
             the entirety

20    of local exchange, including dial tone, a telephone number,

21    switching software, local calling, and access to directory

22    assistance, a white pages listing, operator services, and inter-

23    exchange and intra-LATA toll carriers.

24         (BB)  (y)  "Reasonable rate" or "just and
             reasonable rate"

25    means a rate that is not inadequate, excessive, or unreasonably

26    discriminatory.  A rate is inadequate if it is less than the





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 1    total service long run incremental cost of providing the

 2    service.

 3         (CC)  (z)  "Residential customer" means a
             person to whom

 4    telecommunication services are furnished predominantly for per-

 5    sonal or domestic purposes at the person's dwelling.

 6         (DD)  (aa)  "Special access" means the
             provision of access

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

 8    network for the purpose of enabling a provider to originate or

 9    terminate telecommunication service within the exchange, includ-

10    ing the use of local private lines.

11         (EE)  (bb)  "State institution of higher
             education" means an

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

13    of article VIII of the state constitution of 1963.

14         (FF)  (cc)  "Telecommunication provider" or
             "provider" means

15    a person or an affiliate of the person each of which for compen-

16    sation provides 1 or more telecommunication services.

17         (GG)  (dd)  "Telecommunication services" or
             "services"

18    includes regulated and unregulated services offered to customers

19    for the transmission of 2-way interactive communication and asso-

20    ciated usage.  A telecommunication service is not a public util-

21    ity service.

22         (HH) "TELECOMMUNICATIONS ACT OF 1996" MEANS PUBLIC LAW

23    104-104, 110 STAT. 56.

24         (II)  (ee)  "Toll service" means the
             transmission of 2-way

25    interactive switched communication between local calling areas.

26    Toll service does not include individually negotiated contracts





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 1    for similar telecommunication services or wide area

 2    telecommunications service.

 3         (JJ)  (ff)  "Total service long run
             incremental cost" means,

 4    given current service demand, including associated costs of every

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

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

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

 8    OR UNBUNDLED NETWORK ELEMENT, using current least cost technology

 9    that would be required if the provider had never offered the

10    service.

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

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

13    or basic network component OR UNBUNDLED NETWORK ELEMENT.

14         (KK) "UNBUNDLED NETWORK ELEMENT" MEANS A NETWORK ELEMENT

15    THAT AN INCUMBENT LOCAL EXCHANGE CARRIER CAN UNBUNDLE.  UNBUNDLED

16    NETWORK ELEMENTS INCLUDE, BUT ARE NOT LIMITED TO, THE LOCAL LOOP,

17    NETWORK INTERFACE DEVICE, LOCAL SWITCHING CAPABILITY, TANDEM

18    SWITCHING CAPABILITY, INTEROFFICE TRANSMISSION FACILITIES, SIG-

19    NALING NETWORKS, CALL-RELATED DATABASES, SERVICE MANAGEMENT SYS-

20    TEMS, OPERATIONS SUPPORT SYSTEMS FUNCTIONS, OPERATOR SERVICES,

21    AND DIRECTORY ASSISTANCE.

22         (ll)  (gg)  "Wide area
             telecommunications service" or "WATS"

23    means the transmission of 2-way interactive switched communica-

24    tion over a dedicated access line.

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

26    this act shall not be construed to prevent  any  A
             person from





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 1    providing telecommunication services in competition with another

 2    telecommunication provider.

 3         (2) THIS ACT SHALL NOT BE CONSTRUED TO EXEMPT A TELECOMMUNI-

 4    CATION PROVIDER FROM THE REQUIREMENTS OF THE MICHIGAN ANTITRUST

 5    REFORM ACT, 1984 PA 274, MCL 445.771 TO 445.788, AND THE MICHIGAN

 6    CONSUMER PROTECTION ACT, 1976 PA 331, MCL 445.901 TO 445.922.

 7         Sec. 201.  (1)  The  EXCEPT AS OTHERWISE
             PROVIDED BY THIS

 8    ACT, THE Michigan public service commission shall have the juris-

 9    diction and authority to administer this act and the applicable

10    provisions of the telecommunications act of 1996.

11         (2) In administering this act, the commission shall  be

12     limited to  HAVE the powers and duties prescribed
                       by this act OR

13    THAT ARE NECESSARY TO IMPLEMENT THIS ACT.

14         Sec. 202.  In addition to the other powers and duties pre-

15    scribed by this act, the commission shall do all of the

16    following:

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

18    munication providers of regulated services within the state keep

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

20    the total service long run incremental costs and imputation

21 requirements of this act of providing a service.  The commission

22    requirements under this subdivision shall be consistent with any

23    regulations covering the same subject matter made by the federal

24    communications commission.

25         (b) Require by order that a provider of a regulated service,

26    including access service, make available for public inspection

27    and file with the commission a schedule of the provider's rates,



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 1    services, and conditions of service, including access service

 2    provided by contract.  THE COMMISSION SHALL MAKE ALL TARIFFS

 3    AVAILABLE ON THE INTERNET.

 4         (c) Promulgate rules under section 213 and issue orders to

 5    establish and enforce quality standards for providing telecommun-

 6    ication services in this state.

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

 8    exchange service.

 9          (e) Create a task force to study changes occurring in
             the

10     federal universal service fund and the need for the
                       establishment

11     of a state universal service fund to promote and maintain
                       basic

12     local exchange service in high cost rural areas at
                       affordable

13     rates.  The task force shall issue a report to the
                       legislature

14     and governor on or before December 31, 1996 containing its
                       find-

15     ings and recommendations.  The task force shall consist of
                       all of

16     the following members:

17          (i) The chairperson of the commission.

18          (ii) One representative from each basic local
                       exchange pro-

19     vider with 250,000 or more access lines.

20          (iii) Four representatives from providers who,
                       together with

21     affiliated providers, provide basic local exchange or toll
                       serv-

22     ice to less than 250,000 end users in this state.

23          (iv) Two representatives of other providers of
                       regulated

24     services.

25          (v) One representative of the general public.

26          (f) On or before January 1, 1997, the commission shall
                       study

27     and report to the legislature and governor on the following



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 1    matters that have impact on the basic local exchange calling

 2     activities of all residential customers in the state:

 3          (i) The percentage of intra-LATA calls and
                       minutes of usage

 4     which are charged as basic local exchange calls.

 5          (ii) The average size and range of sizes of
                       basic local

 6     exchange calling areas.

 7          (iii) The ability of customers to contact
                       emergency serv-

 8     ices, school districts, and county, municipal, and local
                       units of

 9     government without a toll call.

10          (iv) Whether there are significant differences
                       in basic

11     local exchange calling patterns between urban, suburban, and

12     rural areas.

13          (v) The impact on basic local exchange rates
                       which would

14     occur if basic local exchange calling areas are altered.

15          (vi) The impact when basic local exchange
                       calling areas

16     overlap LATA boundaries.

17          (vii) The impact on basic local exchange rates
                       which would

18     occur if basic local exchange calling areas are expanded
                       within

19     LATA boundaries. 

20         (E) RESOLVE DISPUTES BETWEEN TELECOMMUNICATION PROVIDERS AND

21    LOCAL UNITS OF GOVERNMENT.  THE COMMISSION MAY DESIGNATE 1 COM-

22    MISSIONER TO EXERCISE THE AUTHORITY GRANTED UNDER THIS

23    SUBDIVISION.

24         (F)  (g)  On or before January 1, 
             1997  2002, conduct a

25    study of internet  access provider locations 
             SERVICE PROVIDERS

26    ON AN EXCHANGE-BY-EXCHANGE BASIS to determine which 
             exchanges

27     can reach the nearest location only by making a toll call
                        END



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 1    USERS MAY MAKE A CALL PRICED EQUIVALENT TO A LOCAL CALL IN

 2    REACHING AN INTERNET SERVICE PROVIDER.  The commission shall

 3     then  gather input from internet  access
              SERVICE providers,

 4    local exchange providers, and other interested parties and make a

 5    recommendation to the legislature as to the steps needed to allow

 6    all local exchange customers to access an internet provider by

 7    making A CALL PRICED EQUIVALENT TO a local call.

 8         (G) SUBJECT TO SECTION 255, ENFORCE THE PROHIBITION IN THE

 9    TELECOMMUNICATIONS ACT OF 1996 AGAINST A LOCAL STATUTE OR REGULA-

10    TION OR LOCAL LEGAL REQUIREMENT THAT MAY PROHIBIT OR HAVE THE

11    EFFECT OF PROHIBITING THE ABILITY OF AN ENTITY TO PROVIDE AN

12    INTERSTATE OR INTRASTATE TELECOMMUNICATION SERVICE.

13         (H) INSTITUTE AN ACTION BEFORE THE FEDERAL COMMUNICATIONS

14    COMMISSION TO SEEK A RULING UNDER 47 U.S.C. 253(D) THAT A LOCAL

15    UNIT HAS VIOLATED THE REQUIREMENTS OF 47 U.S.C. 253.

16         (I) ALLOW THE INTERVENTION OF A PARTY IN CONTESTED CASE PRO-

17    CEEDINGS BEFORE THE COMMISSION SO THAT PROVIDERS WHICH MAY BE

18    AFFECTED BY THE COMMISSION'S DECISION HAVE THE OPPORTUNITY TO

19    PARTICIPATE IN THE PROCEEDINGS.

20         (J) DETERMINE WHICH NETWORK ELEMENTS MUST BE UNBUNDLED IN

21    ADDITION TO THOSE LISTED IN THIS ACT.

22         Sec. 203.  (1) Upon receipt of an application or complaint

23    filed under this act, or on its own motion, the commission may

24    conduct an investigation, hold hearings, and issue its findings

25    and order under the contested hearings provisions of the adminis-

26    trative procedures act of 1969,  Act No. 306 of the Public
             Acts

27     of 1969, being sections 24.201 to 24.328 of the Michigan
                       Compiled



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 1    Laws  1969 PA 306, MCL 24.201 TO 24.328.  THE
             COMMISSION MAY

 2    CONDUCT A PROCEEDING UNDER THIS SECTION WITHOUT A SHOWING OF A

 3    DIRECT INJURY RESULTING FROM AN ALLEGED VIOLATION.

 4         (2) IF A COMPLAINT FILED UNDER THIS SECTION ALLEGES FACTS

 5    THAT WARRANT EMERGENCY RELIEF, THE COMPLAINANT MAY REQUEST AN

 6    EMERGENCY RELIEF ORDER.  THE COMMISSION SHALL ISSUE AN ORDER

 7    GRANTING OR DENYING THE REQUEST FOR EMERGENCY RELIEF WITHIN 7

 8    BUSINESS DAYS FROM THE DATE THE COMPLAINT WAS FILED.  IF AN ORDER

 9    FOR EMERGENCY RELIEF IS GRANTED, IT SHALL INCLUDE THE BASIS FOR

10    THE FINDING THAT EXIGENT CIRCUMSTANCES EXIST THAT WARRANT EMER-

11    GENCY RELIEF.  AN ORDER FOR EMERGENCY RELIEF MAY REQUIRE A PARTY

12    TO ACT OR REFRAIN FROM ACTION TO PROTECT THE PROVISION OF COMPET-

13    ITIVE SERVICE OFFERINGS PURSUANT TO THE STANDARDS UNDER SECTION

14    208 TO CUSTOMERS.  IN ITS ORDER GRANTING OR DENYING THE REQUEST

15    FOR EMERGENCY RELIEF, THE COMMISSION MAY ORDER THE PAYMENT OF

16    REASONABLE ATTORNEY FEES AND COSTS TO THE PREVAILING PARTY.

17         (3) AN ORDER FOR TEMPORARY EMERGENCY RELIEF MAY BE GRANTED

18    UNDER SUBSECTION (2) WITHOUT AN EVIDENTIARY HEARING IF THE COM-

19    PLAINT INCLUDES A VERIFIED FACTUAL SHOWING OF ALL OF THE

20    FOLLOWING:

21         (A) THAT THE PARTY HAS DEMONSTRATED EXIGENT CIRCUMSTANCES

22    THAT WARRANT EMERGENCY RELIEF.

23         (B) THAT THE PARTY SEEKING RELIEF WILL LIKELY SUCCEED ON THE

24    MERITS.

25         (C) THAT THE PARTY WILL SUFFER IRREPARABLE HARM IN ITS ABIL-

26    ITY TO SERVE CUSTOMERS IF EMERGENCY RELIEF IS NOT GRANTED.





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 1         (D) THAT THE ORDER IS NOT ADVERSE TO THE PUBLIC INTEREST.

 2         (4) IF AN ORDER FOR TEMPORARY EMERGENCY RELIEF IS ISSUED

 3    WITHOUT AN EVIDENTIARY HEARING UNDER SUBSECTION (3), THE COMMIS-

 4    SION SHALL CONDUCT AN EVIDENTIARY HEARING TO REVIEW THE ORDER

 5    WITHIN 10 DAYS OF THE DATE THE ORDER WAS ISSUED TO DETERMINE

 6    WHETHER THE ORDER SHOULD BECOME A FINAL ORDER OR BE TERMINATED.

 7         (5)  (2)  An application or complaint filed
             under this sec-

 8    tion shall contain all information, testimony, exhibits, or other

 9    documents and information WITHIN THE PERSON'S POSSESSION on which

10    the person intends to rely to support the application or

11    complaint.  Applications or complaints that do not meet the

12    requirements of this subsection shall be dismissed or suspended

13    pending the receipt by the commission of the required

14    information.  IN THE EVENT THE COMPLAINANT OR APPLICANT REQUIRES

15    INFORMATION IN THE POSSESSION OF THE RESPONDENT, NOT WITHIN THE

16    COMPLAINANT'S OR APPLICANT'S POSSESSION, THE COMMISSION SHALL

17    ALLOW A REASONABLE OPPORTUNITY FOR DISCOVERY TO ALLOW THE COM-

18    PLAINANT OR APPLICANT TO PROVIDE ALL INFORMATION, TESTIMONY,

19    EXHIBITS, OR OTHER DOCUMENTS ON WHICH THE COMPLAINANT OR APPLI-

20    CANT INTENDS TO RELY TO SUPPORT ITS APPLICATION OR COMPLAINT.

21         (6)  (3)  The burden of proving a case filed
             under this act

22     shall be  IS with the party filing the application
             or

23    complaint.  A PARTY HAS THE BURDEN OF PROOF REGARDING FACTS WHICH

24    ARE IN THE PERSON'S POSSESSION.

25         (7)  (4)  In a contested case under this
             section, the com-

26    mission can administer oaths, certify all official acts, and





   03328'99 *
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 1    compel the attendance of witnesses and the production of papers,

 2    books, accounts, documents, and testimony.

 3         (8)  (5)  Except as otherwise provided in
              subsections (2)

 4     and (6)  THIS SECTION, the commission shall issue a
                       final order

 5    in a case filed under this section within 90 days from the date

 6    the application or complaint is filed.

 7         (9)  (6) If  EXCEPT AS PROVIDED IN SUBSECTION
             (2), IF a

 8    hearing is required, the applicant or complainant shall publish a

 9    notice of hearing as required by the commission within 7 days of

10    the date the application or complaint was filed or as required by

11    the commission.  The first hearing shall be held within 10 days

12    after the date of the notice.  If a hearing is held, the commis-

13    sion shall have 180 days from the date the application or com-

14    plaint was filed to issue its final order.  If the principal par-

15    ties of record agree that the complexity of issues involved

16    requires additional time, the commission may have up to 210 days

17    from the date the application or complaint was filed to issue its

18    final order.

19         (10)  (7)  An order of the commission shall be
             subject to

20    review as provided by section 26 of  Act No. 300 of the
             Public

21     Acts of 1909, being section 462.26 of the Michigan Compiled
                       Laws 

22    1909 PA 300, MCL 462.26.

23         (11)  (8)  If a complaint is filed under this
             section by a

24    provider against another provider, the provider of service shall

25    not discontinue service during the period of the contested case,

26    including the alternative dispute process, if the provider

27    receiving the service has posted a surety bond, provided an



   03328'99 *
                                  18

 1    irrevocable letter of credit, or provided other adequate security

 2    in an amount and on a form as determined by the commission.

 3         (12) EXCEPT IF THERE IS A REQUEST FOR EMERGENCY RELIEF UNDER

 4    THIS SECTION, IF THE COMPLAINT FILED UNDER THIS SECTION INVOLVES

 5    AN INTERCONNECTION DISPUTE BETWEEN PROVIDERS, THE COMMISSION

 6    SHALL REQUIRE THE PARTIES TO UTILIZE THE ALTERNATIVE DISPUTE PRO-

 7    CESS UNDER SECTION 203A.

 8         (13) IN ADDITION TO ANY OTHER RELIEF PROVIDED BY THIS ACT,

 9    THE COMMISSION OR ANY OTHER INTERESTED PERSON MAY SEEK TO COMPEL

10    COMPLIANCE WITH THIS ACT AND WITH THE RULES OR ORDERS OF THE COM-

11    MISSION BY PROCEEDINGS IN MANDAMUS, INJUNCTION, OR BY OTHER

12    APPROPRIATE CIVIL REMEDIES IN THE CIRCUIT COURT OR OTHER COURT OF

13    PROPER JURISDICTION.

14         (14) A COURT SHALL NOT ISSUE A STAY ORDER PERTAINING TO ANY

15    COMMISSION ORDER UNTIL ALL OF THE FOLLOWING CONDITIONS ARE MET:

16         (A) AFTER HEARING ON THE WRITTEN MOTION FOR STAY THAT IS

17    SUPPORTED BY AFFIDAVIT AND STATES WITH PARTICULARITY THE GROUNDS

18    FOR THE STAY.

19         (B) ON FINDING, IN A WRITTEN OPINION AND ORDER, ALL OF THE

20    FOLLOWING:

21         (i) THAT THE APPLICANT SEEKING THE STAY WILL SUFFER
             IRREPA-

22    RABLE INJURY IF A STAY IS NOT ENTERED.

23         (ii) THAT THE APPLICANT SEEKING THE STAY HAS MADE A
             STRONG

24    SHOWING THAT IT IS LIKELY TO PREVAIL ON THE MERITS.

25         (iii) THAT THE PUBLIC INTEREST WILL BE ADVANCED IF A
             STAY IS

26    GRANTED.





   03328'99 *
                                  19

 1         (iv) THAT THE HARM TO THE APPLICANT SEEKING THE STAY IN
             THE

 2    ABSENCE OF A STAY OUTWEIGHS THE HARM TO OTHER PARTIES TO THE

 3    PROCEEDINGS IF A STAY IS GRANTED.

 4         (C) ON THE FILING BY THE APPLICANT SEEKING THE STAY A BOND

 5    IN THE AMOUNT REQUIRED TO PROTECT THE PUBLIC AND OTHER PARTIES,

 6    CONDITIONED ON BOTH OF THE FOLLOWING:

 7         (i) TO PROSECUTE THE REVIEW TO A DECISION AND TO OBEY
             AND

 8    ACT IN ACCORDANCE WITH THE DECISION OR ORDER AS ENTERED BY THE

 9    COURT.

10         (ii) TO OBEY AND ACT IN ACCORDANCE WITH THE ORDER OR
             DECI-

11    SION IF IT IS NOT SET ASIDE OR REVISED.

12         Sec. 208.  (1) If a competitive market EXISTS IN THIS STATE

13    for a  regulated telecommunication  BASIC LOCAL
             EXCHANGE service

14     in which the rate is regulated exists in this state, a
             provider 

15    AN ILEC may file AN APPLICATION with the commission to classify

16    that service  for all providers  within the
             competitive market as

17    a competitive service.  THE COMMISSION SHALL ISSUE NOTICE OF ANY

18    APPLICATION MADE UNDER THIS SUBSECTION AND HOLD HEARINGS TO

19    DETERMINE WHETHER THE SERVICE SHOULD BE RECLASSIFIED.

20         (2)  Except as provided under section 321, if a
             regulated

21     service  IF A BASIC LOCAL EXCHANGE SERVICE OF AN
                       INCUMBENT LOCAL

22    EXCHANGE CARRIER is classified as competitive, the rate for the

23    service shall be deregulated and not subject to review under this

24    act UNLESS THE SERVICE IS OFFERED AT A PRICE LOWER THAN ITS TOTAL

25    SERVICE LONG RUN INCREMENTAL COST.

26         (3) A service is competitive under this section if for an

27    identifiable class or group of customers in an exchange, group of



   03328'99 *
                                  20

 1    exchanges, or other clearly defined geographical area, the

 2    service is available from more than 1 unaffiliated provider and

 3     3 or more  ALL of the following apply:

 4         (a)  Actual  EFFECTIVE competition, including
             facilities

 5    based competition, exists FOR THE SERVICES within the local

 6    exchange, group of exchanges, or geographic area.

 7         (b)  Both residential and business end-users have
             service

 8     alternatives available from more than 1 unaffiliated
                       provider or

 9     service reseller.  THOSE CLASSES OF END USERS WHO
                       WILL BE

10    IMPACTED BY COMPETITIVE CLASSIFICATION OF THE SERVICE HAVE SERV-

11    ICE SUBSTITUTES AVAILABLE FROM MORE THAN 1 PROVIDER OR SERVICE

12    RESELLER THAT IS NOT AFFILIATED, DIRECTLY OR INDIRECTLY, WITH THE

13    PARTY SEEKING COMPETITIVE CLASSIFICATION OF THE SERVICE.

14         (c)  Competition  EFFECTIVE COMPETITION FOR
             THE SERVICE and

15    end-user usage has been demonstrated and measured by independent

16    and reliable methods.

17         (d) Rates and charges for the service  have changed
             within

18     the previous 12-month period  ARE NOT EXPECTED TO
                       BE ADVERSELY

19    IMPACTED AS A RESULT OF COMPETITIVE CLASSIFICATION OF THE

20    SERVICE.

21         (e) There is a functionally equivalent service, reasonably

22    available to end users from an unaffiliated provider or

23    supplier.

24         (F) WITHIN THE PROPOSED COMPETITIVE SERVICE AREA 1 PROVIDER

25    OTHER THAN THE INCUMBENT LOCAL EXCHANGE CARRIER PROVIDES AT LEAST

26    20% OF THE SERVICE.





   03328'99 *
                                  21

 1         (G) NO INCUMBENT LOCAL EXCHANGE CARRIER HAS DOMINANT MARKET

 2    POWER IN ANY PORTION OF THE SUBJECT MARKET AS MEASURED BY THE

 3    HERFINDAHL/HIRSCHMANN INDEX AND OTHER APPROPRIATE FACTORS.

 4         (4) Except as provided under subsection (5), a service is

 5    not competitive under this section if for an identifiable class

 6    or group of customers in an exchange, group of exchanges, or

 7    other clearly defined geographical area, 1 of the providers of

 8    the service is an unaffiliated provider of facilities based basic

 9    local exchange service to less than 250,000 end-users in this

10    state.  A provider may apply to the commission for a review of

11 the service under section 203 to determine whether the service is

12    competitive and the rate deregulated.

13         (5) Subsection (4) does not apply if there are 3 or more

14    providers of facilities based basic local exchange service

15    throughout the competitive market and 1 or more of the providers

16    is a provider of facilities based basic local exchange service to

17    less than 250,000 end-users in this state.

18         (6)  A provider  AN ILEC shall give notice to
             its customers

19     if a service is to be  AND ALL OTHER PROVIDERS OF
             BASIC LOCAL

20    EXCHANGE SERVICE SERVING THE RELEVANT LOCAL EXCHANGE, GROUP OF

21    EXCHANGES, OR GEOGRAPHIC AREA IF THE ILEC FILES AN APPLICATION

22    SEEKING TO HAVE ITS BASIC LOCAL EXCHANGE classified as competi-

23    tive and its rate deregulated.  The notice shall be included in

24    or on the bill of each affected customer of the  provider
              ILEC

25    before the effective date of the classification.







   03328'99 *
                                  22

 1          (7) The service classification under this section
             shall

 2     take effect 45 days from the date of the notice required by

 3     subsection (4). 

 4         (7)  (8)  Upon receiving a complaint OR
             APPLICATION filed by

 5    a provider or consumer or on its own motion, the commission may

 6    require a filing under section 203 to review a competitive clas-

 7    sification and issue an order approving, modifying, or rejecting

 8    the classification.

 9         (8)  (9)  A provider shall not file to have a
             service clas-

10    sified as competitive until the provider has received the

11    approval of the commission of a total service long run incremen-

12    tal cost study for the service to be classified.

13         (9)  (10)  Except as otherwise provided by
             law, the commis-

14    sion or a local unit of government does not have authority over a

15    rate for a service classified as competitive under this section.

16         (10) THE COMMISSION MAY RECLASSIFY A TELECOMMUNICATION SERV-

17    ICE OR OTHER SERVICE OR BUSINESS ACTIVITY THAT IT HAS FOUND TO BE

18    COMPETITIVE IF IT FINDS THAT SUFFICIENT COMPETITION IS NO LONGER

19    PRESENT, THAT THE PROVIDER HAS ENGAGED IN UNFAIR COMPETITION WITH

20    RESPECT TO THE SERVICE, OR THAT THE PROVIDER HAS FAILED TO PRO-

21    VIDE NONDISCRIMINATORY ACCESS IN THE PROVISION OF THE SERVICE.

22         Sec. 213.  (1) No later than July 1, 1996, the
              THE commis-

23    sion shall promulgate rules for the implementation and adminis-

24    tration of this act under the administrative procedures act of

25    1969,  Act No. 306 of the Public Acts of 1969, being
             sections

26     24.201 to 24.328 of the Michigan Compiled Laws 
                       1969 PA 306,

27    MCL 24.201 TO 24.328.



   03328'99 *
                                  23

 1          (2) Except as provided in subsection (3), effective

 2     September 1, 1996, the following administrative rules shall
                       not

 3     apply to telecommunication providers or telecommunication

 4     services:

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

 6     R 460.592.

 7          (b) Intrastate telephone services and facilities:

 8     R 460.1951 to R 460.1968.

 9          (c) Filing procedures for communications common
                       carriers

10     tariffs:  R 460.2051 to R 460.2057.

11          (d) Consumer standards and billing practices,
                       residential

12     telephone service:  R 460.2211 to R 460.2279.

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

14     telephone companies:  R 460.9041 and R 460.9059.

15          (3) If the Michigan supreme court rules that sections
                       45 and

16     46 of the administrative procedures act of 1969, Act No. 306
                       of

17     the Public Acts of 1969, being sections 24.245 and 24.246 of
                       the

18     Michigan Compiled Laws, are unconstitutional, and a statute

19     requiring legislative review of administrative rules is not

20     enacted within 90 days after the Michigan supreme court
                       ruling,

21     the commission shall not promulgate rules under this act.

22     Subsection (2) does not apply if the commission is
                       prohibited

23     from promulgating rules under this subsection. 

24         SEC. 214.  (1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS

25    ACT, THE COMMISSION MAY REVIEW AND INVESTIGATE ANY RATE TO DETER-

26    MINE THE EFFECT THE RATE HAS ON THE DEVELOPMENT OF A COMPETITIVE

27    MARKET IN THIS STATE.



   03328'99 *
                                  24

 1         (2) IF AFTER NOTICE AND HEARING HELD UPON A COMPLAINT OR ITS

 2    OWN MOTION THE COMMISSION FINDS THAT A RATE IS NONCOMPETITIVE,

 3    EXCESSIVE, OR DISCRIMINATORY, IT SHALL ISSUE AN ORDER PROVIDING

 4    FOR SUCH REMEDIES AS ARE CONSISTENT WITH THIS ACT AND ALLOWED

 5    UNDER SECTION 602.

 6         (3) IN ANY HEARING HELD UNDER SUBSECTION (2), THE PROVIDER

 7    SHALL HAVE THE BURDEN OF PROVING THAT THE RATE IS NOT NONCOMPETI-

 8    TIVE, EXCESSIVE, OR DISCRIMINATORY.

 9         Sec. 251.  (1) Except as provided in subsections (2) and

10    (3), a local unit of government shall grant a permit for access

11    to and the ongoing use of all  right-of-ways 
             PUBLIC

12    RIGHT-OF-WAY, easements, and OTHER public places under its con-

13    trol and jurisdiction to providers of telecommunication

14    services.

15         (2) This section shall not limit a local unit of

16    government's right to  review and approve  MANAGE a
             provider's

17    access to and ongoing use of a PUBLIC right-of-way, easement, or

18    OTHER public place  or limit the unit's authority to ensure
             and 

19    TO THE EXTENT NECESSARY TO protect the  health, 
             safety  , and

20     welfare  of the public PROVIDED THAT THE MANAGEMENT
                       IS COMPETI-

21    TIVELY NEUTRAL AND NONDISCRIMINATORY AS TO ALL PROVIDERS.

22         (3) A local unit of government shall approve or deny access

23    under this section within  90  30 days from the
             date a provider

24    files an application for a permit for access to a PUBLIC

25    right-of-way, easement, or OTHER public place.  A LOCAL UNIT OF

26    GOVERNMENT MAY ONLY ASSESS A PROVIDER A FEE ONLY ON CONDITIONS

27    THAT ARE NECESSARY TO PROTECT THE PUBLIC SAFETY AND PROVIDED THAT



   03328'99 *
                                  25

 1    SUCH FEE SHALL BE COMPETITIVELY NEUTRAL AND NONDISCRIMINATORY AS

 2    TO ALL PROVIDERS.  THE FEE SHALL BE BASED ONLY ON THE LOCAL UNIT

 3    OF GOVERNMENT'S ACTUAL COSTS INCURRED IN GRANTING THE PERMIT. A

 4    provider's right to access and use of a right-of-way, easement,

 5    or public place shall not be unreasonably denied by a local unit

 6    of government.  A local unit of government may require as a con-

 7    dition of the permit that a bond be posted by the provider, which

 8    shall not exceed the reasonable cost, to ensure that the PUBLIC

 9    right-of-way, easement, or OTHER public place is  returned
             

10    RESTORED to its original condition  during and 
             after the

11    provider's access and use.

12         (4) A MUNICIPALITY SHALL NOT CHARGE ANY FEES OR REQUIRE A

13    PERMIT TO USE THE RIGHT-OF-WAY WITHIN ITS JURISDICTIONAL BOUNDA-

14    RIES FROM A TELECOMMUNICATION PROVIDER OR RESELLER THAT IS USING

15    THE PUBLIC RIGHT-OF-WAY OF ANOTHER UNIT OF GOVERNMENT OR PRIVATE

16    RIGHT-OF-WAY OF A NONGOVERNMENTAL PERSON.  IT IS UNLAWFUL FOR ANY

17    MUNICIPALITY TO CHARGE ANY CONSENT FEE, INSTALLATION PERMIT FEE,

18    REASONABLE CHARGE FOR THE GOVERNMENTAL FUNCTIONS, OR ANY OTHER

19    ASSESSMENT, FEE, OR COST FOR A TELECOMMUNICATION PROVIDER OR

20    RESELLER TO ENTER UPON, CONSTRUCT, OR MAINTAIN CABLES OR LINES

21    IN, ON, UNDER, OVER, OR UPON THE RIGHT-OF-WAY OF OTHERS.

22         Sec. 252.  Any conditions of a permit granted under section

23    251 shall be limited to the provider's access and usage of any

24    PUBLIC right-of-way, easement, or OTHER public place PROVIDED

25    THAT THE CONDITIONS ARE COMPETITIVELY NEUTRAL AND NONDISCRIMINA-

26    TORY AS TO ALL PROVIDERS.





   03328'99 *
                                  26

 1         Sec. 253.  (1) Any fees or assessments made under section

 2    251 shall be on a nondiscriminatory basis and shall not exceed

 3    the  fixed and variable  ACTUAL costs to the local
             unit of gov-

 4    ernment in granting a permit and  maintaining 
             RESTORING the

 5     right-of-ways  PUBLIC RIGHTS-OF-WAY, easements, or
             OTHER public

 6    places used by a provider TO THE CONDITION THAT EXISTED IMMEDI-

 7    ATELY PRECEDING THE PROVIDER'S USE.

 8         (2) A PROVIDER, INCLUDING A RESELLER, THAT DOES NOT OWN,

 9    OPERATE, MAINTAIN, INSTALL, CONSTRUCT, OR DISTURB THE PUBLIC

10    RIGHTS-OF-WAY, EASEMENTS, OR OTHER PUBLIC PLACES SHALL NOT BE

11    CHARGED ANY FEE OR BE REQUIRED TO OBTAIN ANY PERMIT TO ACCESS THE

12    PUBLIC RIGHTS-OF-WAY, EASEMENTS, OR OTHER PUBLIC PLACES.

13         Sec. 303.  (1) The commission may alter or amend the geo-

14    graphic area of a license, grant a competing license, or autho-

15    rize the sale or transfer of a license to another person.

16          (2) A telecommunication provider shall not provide
             basic

17     local exchange service to customers or end-users located
                       within

18     another telecommunication provider's licensed service area
                       except

19     through interconnection arrangements as provided by this
                       act. 

20         (2)  (3) The  EXCEPT AS PROVIDED IN SUBSECTION
             (3), THE sale

21    or transfer of shares of stock of a provider of basic local

22    exchange service is not a sale or transfer of a license or a dis-

23    continuance of service.

24         (3) IF THE SALE OR TRANSFER OF SHARES OF STOCK OF AN ILEC IS

25    SUBJECT TO A PROCEEDING BY THE FEDERAL COMMUNICATIONS COMMISSION,

26    THE COMMISSION SHALL MAKE AN INQUIRY UNDER THIS SUBSECTION.  THE

27    COMMISSION SHALL DO ALL OF THE FOLLOWING:



   03328'99 *
                                  27

 1         (A) CONDUCT AN INVESTIGATION, HOLD HEARINGS, AND EXAMINE

 2    WITNESSES, BOOKS, PAPERS, DOCUMENTS, OR CONTRACTS THE COMMISSION

 3    CONSIDERS OF IMPORTANCE IN ENABLING IT TO REACH A DETERMINATION.

 4         (B) PERMIT THE INTERVENTION OF LOCAL UNITS OF GOVERNMENT,

 5    COMPETING PROVIDERS, AND ORGANIZATIONS WHOSE MEMBERSHIP CONSISTS

 6    OF A SUBSTANTIAL NUMBER OF RATEPAYERS OR PROVIDERS WITHIN THE

 7    SERVICE AREA OF THE PROVIDER AS PROVIDED BY RULES OF THE

 8    COMMISSION.

 9         (C) ISSUE FINDINGS AND CONCLUSIONS ON THE IMPACT OF THE PRO-

10    POSED SALE, TRANSFER, OR MERGER ON THE STATE INCLUDING THE IMPACT

11    ON THE DEVELOPMENT OF A COMPETITIVE TELECOMMUNICATIONS MARKET,

12    THE POTENTIAL FOR ANTICOMPETITIVE ACTS, THE IMPACT ON PRICES,

13    COMPETITION, SERVICES LEVELS, AND QUALITY OF TELECOMMUNICATION

14    SERVICES IN THIS STATE AND IS NOT ADVERSE TO THE PUBLIC

15    INTEREST.

16         (D) INTERVENE IN PROCEEDINGS OF THE FEDERAL COMMUNICATIONS

17    COMMISSION AND DELIVER THE FINDINGS AND RECOMMENDATIONS OF THE

18    COMMISSION TO THE UNITED STATES DEPARTMENT OF JUSTICE.

19         Sec. 304.  (1) Except as provided in  section 
             SECTIONS

20    208(2) AND 304a, the rates OF AN ILEC for basic local exchange

21    service shall be just and reasonable.

22         (2)  A provider  AN ILEC may alter its rates
             for basic local

23    exchange services by 1 or more of the following:

24         (a) Filing with the commission notice of a decrease, dis-

25    count, or other rate reduction in a basic local exchange rate.  A

26    rate alteration under this subdivision shall become effective

27    without commission review or approval.



   03328'99 *
                                  28

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

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

 3    consumer price index.  Unless the commission determines that the

 4    rate alteration exceeds the allowed increase under this subdivi-

 5    sion, the rate alteration shall take effect 90 days from the date

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

 7    subdivision, "consumer price index" means the most recent

 8    reported annual average percentage increase in the Detroit con-

 9    sumer price index for all items for the prior 12-month period by

10    the United States department of labor.

11         (c) Filing with the commission an application to increase a

12    basic local exchange rate in an amount greater than that allowed

13    under subdivision (b).  The application shall be accompanied with

14    sufficient documentary support that the rate alteration is just

15    and reasonable.  The commission shall make a determination within

16    the 90-day period provided for in subsection (5) of 1 of the

17    following:

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

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

20    the rate alteration.

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

22    a rate alteration under subsection (2)(b) or (c) and section 304a

23    and shall be included in or on the bill of each affected customer

24    of the provider before the effective date of the rate

25    alteration.

26         (4) The notice required under subsection (3) shall contain

27    at least all of the following information:



   03328'99 *
                                  29

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

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

 3    typical residential customer that would result by the rate

 4    change.

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

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

 7    commission.  The statement shall also include the telephone

 8    number and address of the commission.  Complete details of the

 9    rate alteration will be provided free of charge to the customer

10    at the expense of the provider.

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

12    an altered basic local exchange rate shall take effect 90 days

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

14         (6) Upon receiving a complaint or pursuant to a determina-

15    tion under subsection (2)(c), the commission may require a filing

16    under section 203 to review a proposed rate alteration under

17    subsection (2)(c).  The commission's final order may approve,

18    modify, or reject the rate alteration.

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

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

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

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

23    exchange services.

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

25    other providers in this state for the same service.

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

27    offered as a component of basic local exchange service.



   03328'99 *
                                  30

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

 2    provide basic local exchange service in the geographic area of

 3    the proposed rate.

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

 5    infrastructure of the geographic area of the proposed rate is

 6    economically justifiable without the proposed rate.

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

 8    each class or type of service during any 12-month period.

 9         (9) A provider shall not make a rate alteration under this

10    section until the rate has been restructured under section 304a.

11         (10) A CLEC MAY ALTER ITS RATES FOR BASIC LOCAL EXCHANGE

12    SERVICES BY FILING WITH THE COMMISSION NOTICE OF A RATE ALTER-

13    ATION UNDER THIS SUBSECTION WHICH SHALL BECOME EFFECTIVE WITHOUT

14    COMMISSION REVIEW OR APPROVAL.  THE RATE ALTERATION SHALL TAKE

15    EFFECT 30 DAYS FROM THE DATE OF THE NOTICE REQUIRED UNDER SUBSEC-

16    TION (11).

17         (11) NOTICE TO CUSTOMERS OF A RATE ALTERATION IS REQUIRED

18    FOR A RATE ALTERATION UNDER SUBSECTION (10) AND SHALL BE INCLUDED

19    IN OR ON THE BILL OF EACH AFFECTED CUSTOMER OF THE PROVIDER

20    BEFORE THE EFFECTIVE DATE OF THE RATE ALTERATION.

21         (12) THE NOTICE REQUIRED UNDER SUBSECTION (11) SHALL CONTAIN

22    AT LEAST BOTH OF THE FOLLOWING INFORMATION:

23         (A) A STATEMENT THAT THE CUSTOMER'S RATE MAY CHANGE.

24         (B) A STATEMENT THAT A CUSTOMER MAY COMMENT ON OR RECEIVE

25    COMPLETE DETAILS OF THE RATE ALTERATION BY CALLING OR WRITING THE

26    COMMISSION.  THE STATEMENT SHALL ALSO INCLUDE THE TELEPHONE

27    NUMBER AND ADDRESS OF THE COMMISSION.  COMPLETE DETAILS OF THE



   03328'99 *
                                  31

 1    RATE ALTERATION WILL BE PROVIDED FREE OF CHARGE TO THE CUSTOMER

 2    AT THE EXPENSE OF THE PROVIDER.

 3         Sec. 304a.  (1)  Upon filing with and the approval of
             the

 4     commission, a basic local exchange provider shall
                       restructure  AN

 5    ILEC SHALL CONTINUE TO ASSURE its rates for basic local exchange,

 6    toll, and access services to ensure that the rates are not less

 7    than the total service long run incremental cost of providing

 8    each service.

 9         (2)  The provider may determine when each rate is
             restruc-

10     tured and may phase in the rate restructuring until January
                       1,

11     2000.  After January 1, 2000, the provider's  THE
                       ILEC'S rates

12    for basic local exchange, toll, and access services shall not be

13    less than the total service long run incremental cost for each

14    service.

15          (3) The rate restructuring may include, but is not
             limited

16     to, 1 or more of the following:

17          (a) Touchtone capability and associated charges into
                       basic

18     local exchange services at rate levels no greater than the
                       sum of

19     the current basic local exchange service rates and the
                       touchtone

20     service rates.  Residential customers with rotary dial
                       service

21     may retain such service at their current rate.

22          (b) Within basic local exchange rates, all or part of
                       the

23     existing rate elements and charges for other services that
                       are

24     designed to recover the costs associated with the local
                       exchange

25     network.

26          (c) Restructure existing basic local exchange rates to

27     reflect the existing variations in costs to provide basic
                       local



   03328'99 *
                                  32

 1    exchange services based upon differences in geographic
             areas,

 2     classes of customers, calling patterns and volumes,
                       technology,

 3     and other factors.

 4          (4) The commission shall have 45 days from the date of
                       a

 5     filing under this section to review the proposed rate
                       restructur-

 6     ing to ensure that the rates are not less than the total
                       service

 7     long run incremental costs of the service, or that the rate

 8     restructuring brings rates that are below such costs closer
                       to

 9     the costs.  If the commission is unable to make a
                       determination

10     within the allowed 45 days under this subsection, the
                       commission

11     shall have an additional 45 days to review the rate

12     restructuring.

13          (5) If the commission does not complete its review
                       within

14     the time period required under subsection (4), the rate
                       restruc-

15     turing is considered approved under this section.  The basic

16     local exchange provider may implement the restructured rates

17     10 days following commission approval or the end of the
                       period

18     provided for commission review, whichever is earlier.
                       

19         (3)  (6)  Except as provided in subsection
             (7), for the pur-

20    poses of this section and the act,  providers  ILEC
             who, together

21    with any affiliated providers, provide basic local exchange serv-

22    ice or basic local exchange and toll service to less than 250,000

23    end-users in this state may determine total service long run

24    incremental cost through preparation of a cost study or may

25    determine that their total service long run incremental cost is

26    the same as that of a provider with more than 250,000 end-users.





   03328'99 *
                                  33

 1         (4)  (7) A provider of basic local exchange service
              AN ILEC

 2    with less than 15,000 end-users in this state may determine that

 3    their total service long run incremental cost is the same as that

 4    of a provider with more than 250,000 end-users.

 5         Sec. 304b.  (1)  A provider of basic local exchange
             service 

 6    EACH ILEC AND CLEC shall develop and offer various rate plans

 7    that reflect residential customer calling patterns that shall

 8    include, but not limited to, all of the following at the option

 9    of the customer unless it is not technologically feasible:

10         (a) A flat rate allowing unlimited personal and domestic

11    outgoing calls.

12         (b) A flat rate allowing personal and domestic outgoing

13    calls up to 400 calls per month per line.  Calls in excess of 400

14    per month may be charged at an incremental rate as set by the

15    provider under section 304.  If a customer has more than 1 line

16    at the same location that appears on the customer's bill, the

17    allowable calls under this subdivision shall be the aggregate of

18    all the lines regardless from which line the calls originate.  A

19    person with disabilities or who is voluntarily providing a serv-

20    ice for an organization classified by the internal revenue serv-

21    ice as a section 501(c)(3) or (19) organization, or a congressio-

22    nally chartered veterans organization or their duly authorized

23    foundations, is exempt from the 400 calls per month limitation

24    and shall receive a flat rate allowing unlimited calls per

25    month.  A person exempt from the call cap under this subdivision

26    shall not be charged a rate greater than the flat rate charged

27    other residential customers for 400 calls.



   03328'99 *
                                  34

 1         (c) A flat rate allowing personal and domestic outgoing

 2    calls of not less than 50 nor more than 150 per month, per line.

 3    Providers may offer additional plans allowing personal and domes-

 4    tic outgoing calls of not less than 150 per month nor more than

 5    400 per month, per line.  Calls in excess of upper per call limit

 6    per month may be charged at an incremental rate as set by the

 7    provider under section 304.  If a customer has more than 1 line

 8    at the same location that appears on the customer's bill, the

 9    allowable calls under this subdivision shall be the aggregate of

10    all the lines regardless from which line the calls originate.

11         (d) A rate determined by the time duration of service usage

12    or the distance between the points of service origination and

13    termination.

14         (e) A rate determined by the number of times the service is

15    used.

16         (f) A rate that includes 1 or more of the rates allowed by

17    this section.

18         (g) A rate that includes toll-free calling to contiguous

19    Michigan local calling exchanges.

20         (2) If an option required under subsection (1) is not being

21    offered by the provider on January 1, 1996, the provider shall

22    set the initial rate for the option.

23         (3) A provider who, together with any affiliated providers,

24    provides basic local exchange service or basic local exchange and

25    toll service to less than 250,000 end-users in this state is not

26    required to provide a rate plan required under subsection (1) if

27    it is not economically feasible to provide the rate plan.



   03328'99 *
                                  35

 1         Sec. 305.  (1)  A provider of basic local exchange
             service 

 2    AN ILEC shall not do any of the following:

 3         (a) Discriminate against another provider by refusing or

 4    delaying access service to the local exchange.

 5          (b) Refuse or delay interconnections or provide
             inferior

 6     connections to another provider.

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

 8     another provider.

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

10     by another provider. 

11         (B)  (e)  Develop new services to take
             advantage of planned

12    but not publicly known changes in the underlying network.

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

14    information regarding the technical design, equipment capabili-

15    ties and features, geographic coverage, and traffic patterns of

16    the local exchange network.

17         (D)  (g)  Refuse or delay access service or be
             unreasonable

18    in connecting another provider to the local exchange whose pro-

19    duct or service requires novel or specialized access service

20    requirements.

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

22    manner all available information necessary for the design of

23    equipment that will meet the specifications of the local exchange

24    network.

25          (i) Discriminate against any provider or any party who

26     requests the information for commercial purposes in the

27     dissemination of customer proprietary information.  A
                       provider



   03328'99 *
                                  36

 1    shall provide without unreasonable discrimination or delay

 2     telephone directory listing information and related services
                       to

 3     persons purchasing telephone directory listing information
                       to the

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

 5     affiliates of the provider, or any other listing information

 6     purchaser.

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

 8     provider. 

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

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

11    asset.

12         (G)  (l)  Buy, lease, or otherwise
             acquire an asset from an

13    affiliate of the provider for an amount greater than the fair

14    market value of the asset.

15         (H)  (m)  Bundle unwanted services or products
             for sale or

16    lease to another provider.

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

18     an order of the commission. 

19         (I)  (o)  Sell services or products, extend
             credit, or offer

20    other terms and conditions on more favorable terms to an affili-

21    ate of the provider than the provider offers to other providers.

22         (J)  (p)  Discriminate in favor of an
             affiliated burglar and

23    fire alarm service over a similar service offered by another

24    provider.

25         (2) A PROVIDER OF BASIC LOCAL EXCHANGE SERVICE SHALL NOT DO

26    ANY OF THE FOLLOWING:





   03328'99 *
                                  37

 1         (A) REFUSE OR DELAY INTERCONNECTIONS OR PROVIDE INFERIOR

 2    CONNECTIONS TO ANOTHER PROVIDER.

 3         (B) DEGRADE THE QUALITY OF ACCESS SERVICE PROVIDED TO

 4    ANOTHER PROVIDER.

 5         (C) IMPAIR THE SPEED, QUALITY, OR EFFICIENCY OF LINES USED

 6    BY ANOTHER PROVIDER.

 7         (D) DISCRIMINATE AGAINST ANY PROVIDER OR ANY PARTY WHO

 8    REQUESTS THE INFORMATION FOR COMMERCIAL PURPOSES IN THE DISSEMI-

 9    NATION OF CUSTOMER PROPRIETARY INFORMATION.  A PROVIDER SHALL

10    PROVIDE WITHOUT UNREASONABLE DISCRIMINATION OR DELAY TELEPHONE

11    DIRECTORY LISTING INFORMATION AND RELATED SERVICES TO PERSONS

12    PURCHASING TELEPHONE DIRECTORY LISTING INFORMATION TO THE SAME

13    EXTENT AND IN THE SAME QUALITY AS PROVIDED TO THE PROVIDER,

14    AFFILIATES OF THE PROVIDER, OR ANY OTHER LISTING INFORMATION

15    PURCHASER.

16         (E) REFUSE OR DELAY ACCESS SERVICE BY ANY PERSON TO ANOTHER

17    PROVIDER.

18         (F) PERFORM ANY ACT THAT HAS BEEN PROHIBITED BY THIS ACT OR

19    AN ORDER OF THE COMMISSION.

20         (G) VIOLATE THE TERMS OF AN INTERCONNECTION AGREEMENT

21    ENTERED INTO UNDER SECTIONS 351 TO 363 OR UNDER FEDERAL LAW.

22         (H) FAIL TO COMPLY WITH AN EMERGENCY RELIEF ORDER ISSUED

23    UNDER SECTION 203.

24         (3)  (2)  A provider of cellular
             telecommunication services

25    shall not do either of the following:

26         (a) Unreasonably provide services, extend credit, or offer

27    other terms and conditions on more favorable terms to an



   03328'99 *
                                  38

 1    affiliate of the provider or to its retail department that sells

 2    to end users than the provider offers to other providers.

 3         (b) Unreasonably use rates or proceeds from providers,

 4    directly or indirectly, to subsidize or offset the costs of cel-

 5    lular service offered by the provider, or an affiliate of the

 6    provider, to other providers or to end-users.

 7         (4)  (3)  Until  a provider 
             AN ILEC has complied with

 8     section 304a  SECTIONS 304A AND 208, the 
             provider of  THE ILEC

 9    THAT PROVIDES a rate regulated service shall not provide that

10    service in combination with an unregulated service in section 401

11    or an unbundled or resold service under section 357 at a price

12    that does not exceed the total service long run incremental cost

13    of each service.

14         Sec. 306.  Except as provided in section 312b, a
              A tele-

15    communication provider of basic local exchange service is not

16    required to provide toll services.  If a telecommunication pro-

17    vider that provides basic local exchange service does not offer

18    toll or have interconnection with a toll provider, the commission

19    shall order a toll provider to interconnect with the telecommuni-

20    cation provider upon terms that are fair to both providers.

21         Sec. 308.  (1)  Basic  FOR AN ILEC, ITS BASIC
             local exchange

22    or access rates or proceeds from the sale, lease, or transfer of

23    rate acquired assets shall not be used, directly or indirectly,

24    to subsidize or offset the costs of other products or services

25    offered by the provider or an affiliate of the provider by pro-

26    viding such other products or services at less than the total

27    service long-run incremental cost.



   03328'99 *
                                  39

 1         (2)  A provider of basic local exchange service
              AN ILEC

 2    shall not sell or transfer capital assets used to provide the

 3    service for an amount less than the fair market value to any

 4    other provider or affiliated entity for the purpose of providing

 5    an unregulated service.

 6         (3)  A provider of basic local exchange service
              AN ILEC

 7    shall notify the commission when it transfers, in whole or in

 8    part, substantial assets, functions or employees, INCLUDING THE

 9    SHARING OR ASSIGNING OF EMPLOYEES, associated with basic local

10    exchange service to an affiliated entity, indicating the identity

11    of the affiliated entity, description of the transaction and the

12    impact on basic local exchange service.  AS USED IN THIS SUBSEC-

13    TION, "SUBSTANTIAL ASSETS" MEANS ASSETS WITH A VALUE OF

14    $100,000.00 OR MORE TRANSFERRED DURING ANY 3-MONTH PERIOD.

15         (4) In an investigation under this section or under

16    section 203, the commission shall have the authority to review

17    the books and accounts of both the provider and affiliated enti-

18    ties of the provider.

19         (5) AN ILEC SHALL REPORT THE VALUE OF ANY BRAND NAME, TRADE-

20    MARK, OR SERVICES MARK USED BY ANY OTHER PROVIDER OR AFFILIATED

21    ENTITY FOR THE PURPOSE OF PROVIDING AN UNREGULATED SERVICE.

22         Sec. 309b.  A provider of  inter-LATA toll 

23    TELECOMMUNICATION service in Michigan shall take no action pro-

24    hibited under state or federal labor laws to discourage or pre-

25    vent its employees from seeking union representation, pursuing

26    collective bargaining or engaging in any other activities





   03328'99 *
                                  40

 1    protected, including, but not limited to, the closing of an

 2    office or facility in Michigan to prevent organizing.

 3         Sec. 310.  (1) Except as provided by this act, the commis-

 4    sion shall not review or set the rates for toll access services.

 5         (2)  A provider of toll access services  AN
             ILEC shall set

 6    the rates for toll access services.  Access service rates
             and

 7     charges set by a provider that exceed the rates allowed for
                       the

 8     same interstate services by the federal government are not
                       just

 9     and reasonable.  Providers may agree to a rate that is less
                       than

10     the rate allowed by the federal government.  If the
                       providers

11     cannot agree on a rate, a provider may apply to the
                       commission

12     under section 204.  A PROVIDER SHALL NOT SET AN
                       INTRASTATE ACCESS

13    SERVICE RATE OR CHARGE THAT EXCEEDS ITS TOTAL SERVICE LONG RUN

14    INCREMENTAL COST OF PROVIDING THE ACCESS SERVICE.  A PROVIDER OF

15    TOLL ACCESS SERVICES MAY PETITION THE COMMISSION FOR APPROVAL OF

16    AN ACCESS SERVICE OR RATE CHARGE THAT EXCEEDS THE TOTAL SERVICE

17    LONG RUN INCREMENTAL COST OF PROVIDING THE ACCESS SERVICE.  THE

18    COMMISSION MAY GRANT ITS APPROVAL AFTER NOTICE TO ALL INTERESTED

19    PARTIES AND A HEARING IF THE COMMISSION FINDS, BY CLEAR AND CON-

20    VINCING EVIDENCE, EACH OF THE FOLLOWING:

21         (A) THAT THE TELECOMMUNICATIONS PROVIDER HAS EXPERIENCED A

22    SUBSTANTIAL CHANGE IN ITS CIRCUMSTANCES THAT JUSTIFIES THE PRO-

23    POSED ACCESS SERVICE RATE OR CHARGE.

24         (B) THAT THE PROPOSED ACCESS SERVICE RATE OR CHARGE WILL NOT

25    HAVE AN ANTICOMPETITIVE EFFECT OR IMPACT ON ANY COMPETITOR OF THE

26    TELECOMMUNICATIONS PROVIDER.





   03328'99 *
                                  41

 1         (C) THAT THE PROPOSED ACCESS SERVICE RATE OR CHARGE WILL NOT

 2    EXCEED THE RATES ALLOWED FOR THE SAME OR SIMILAR INTERSTATE

 3    ACCESS SERVICES ALLOWED BY THE FEDERAL GOVERNMENT.

 4         (D) THAT THE PROPOSED ACCESS SERVICE RATE OR CHARGE WILL NOT

 5    EXCEED THE LOWEST COMPENSATION RATE OR COMBINATION OF RATES THAT

 6    IT CHARGES, WHETHER TARIFF OR AGREEMENT, THAT IT CHARGES ITSELF,

 7    AN AFFILIATE OF THE PROVIDER, OR ANY OTHER PROVIDER FOR THE SAME

 8    OR SIMILAR SERVICE, BASIC NETWORK FUNCTION OR ELEMENT USED FOR

 9    THE TERMINATION OR TRANSPORT OF A LOCAL EXCHANGE CALL.

10         (3) Two or more providers that each have less than 250,000

11    access lines may agree to joint toll access service rates and

12    pooling of intrastate toll access service revenues.

13         (4) A provider of toll access services shall make available

14    for intrastate access services any technical interconnection

15    arrangements, including colocation required by the federal gov-

16    ernment for the identical interstate access services.

17         (5) A provider of toll access service, whether under tariff

18    or contract, shall offer the services under the same rates, terms

19    and conditions, without unreasonable discrimination, to all

20    providers.  All pricing of special toll access services and

21    switched access services, including volume discounts, shall be

22    offered to all providers under the same rates, terms, and

23    conditions.  Until allowed by the federal communications commis-

24    sion, volume discounts on switched access are prohibited under

25    this subsection.

26         (6) If a toll access service rate is reduced under section

27    304a, then the provider receiving the reduced rate shall reduce



   03328'99 *
                                  42

 1    its rate to its customers  by an equal amount  IN A
             MANNER THAT

 2    SHALL REFLECT THAT REDUCTION.

 3         Sec. 312a.  Effective January 1, 1996, if a waiver to
             the

 4     inter-LATA prohibitions has been granted for a specific
                       service

 5     area and the service area has 2 or more providers of local

 6     exchange service, the  A provider of basic local
                       exchange service

 7    shall provide 1+intra-LATA toll dialing parity within  the
              ITS

 8    service area.  that is subject to the waiver. 

 9         SEC. 316A.  (1) AS USED IN THIS SECTION:

10         (A) "AFFORDABLE RATES" MEANS, AT A MINIMUM, RATES IN EFFECT

11    ON JANUARY 1, 2001 OR AS DETERMINED BY THE COMMISSION.

12         (B) "INTRASTATE UNIVERSAL SERVICE FUND" MEANS A FUND CREATED

13    BY THE COMMISSION TO PROVIDE A SUBSIDY FOR THE PROVISION OF SUP-

14    PORTED TELECOMMUNICATION SERVICES PROVIDED BY ANY TELECOMMUNICA-

15    TION CARRIER FURNISHING SERVICE WITHIN A GEOGRAPHIC AREA CUR-

16    RENTLY SERVED BY AN INCUMBENT LOCAL EXCHANGE CARRIER WHOSE BASIC

17    LOCAL EXCHANGE AREA INCLUDES LESS THAN 35,000 SUBSCRIBER ACCESS

18    LINES.

19         (C) "SUPPORTED TELECOMMUNICATION SERVICES" MEANS PRIMARY

20    RESIDENTIAL ACCESS LINES AND A MINIMUM LEVEL OF LOCAL USAGE ON

21    THOSE LINES, AS DETERMINED BY THE COMMISSION.

22         (D) "UNIVERSAL SERVICE" SHALL MEAN THE PROVISION OF SUP-

23    PORTED TELECOMMUNICATION SERVICES BY ANY CARRIER SERVING CUSTOM-

24    ERS IN A GEOGRAPHIC AREA CURRENTLY SERVED BY AN INCUMBENT LOCAL

25    EXCHANGE CARRIER WHOSE BASIC LOCAL EXCHANGE AREA INCLUDES LESS

26    THAN 35,000 SUBSCRIBER ACCESS LINES.





   03328'99 *
                                  43

 1         (2) NO LATER THAN JULY 1, 2001, THE COMMISSION SHALL

 2    INITIATE AN INVESTIGATION TO DETERMINE WHETHER AN INTRASTATE

 3    UNIVERSAL SERVICE FUND SHOULD BE CREATED.  THE COMMISSION SHALL

 4    COMPLETE THE INVESTIGATION NO LATER THAN DECEMBER 1, 2001.  ALL

 5    ILECS WITH LESS THAN 35,000 SUBSCRIBER ACCESS LINES SHALL BE MADE

 6    RESPONDENTS IN THE PROCEEDING AND ANY OTHER INTERESTED PARTY MAY

 7    PARTICIPATE AND INTERVENE IN THE PROCEEDING.

 8         (3) THE COMMISSION SHALL DETERMINE FOR EACH PROVIDER WHETHER

 9    AND TO WHAT EXTENT THE AFFORDABLE RATE LEVEL TO PROVIDE SUPPORTED

10    TELECOMMUNICATION SERVICES IS BELOW EACH PROVIDER'S FORWARD LOOK-

11    ING ECONOMIC COST OF THE SUPPORTED TELECOMMUNICATION SERVICES.

12         (4) TO THE EXTENT PROVIDERS PROVIDE SUPPORTED TELECOMMUNICA-

13    TION SERVICES AT AN AFFORDABLE RATE THAT IS BELOW THE FORWARD

14    LOOKING ECONOMIC COST OF THE SUPPORTED TELECOMMUNICATION SERV-

15    ICES, THE COMMISSION SHALL CREATE A UNIVERSAL SERVICE FUND TO

16    PROVIDE A SUBSIDY IN AN AMOUNT WHICH IS EQUAL TO THE DIFFERENCE

17    BETWEEN THE AFFORDABLE RATE AS DETERMINED BY THE COMMISSION AND

18    THE FORWARD LOOKING ECONOMIC COST OF THE SUPPORTED SERVICES, LESS

19    ANY FEDERAL UNIVERSAL SERVICE SUPPORT RECEIVED FOR THOSE SUP-

20    PORTED SERVICES.

21         (5) A CARRIER'S ELIGIBILITY TO RECEIVE INTRASTATE UNIVERSAL

22    SERVICE SUPPORT UNDER SUBSECTION (4) SHALL BE CONSISTENT WITH THE

23    ELIGIBILITY GUIDELINES OF SECTION 254(E) OF THE TELECOMMUNICA-

24    TIONS ACT OF 1996 AND THE RULES AND REGULATIONS OF THE FEDERAL

25    COMMUNICATIONS COMMISSION.  THE STATE FUND SHALL BE ADMINISTERED

26    BY AN INDEPENDENT THIRD PARTY ADMINISTRATOR SELECTED BY THE





   03328'99 *
                                  44

 1    COMMISSION AFTER CONSULTATION WITH ALL TELECOMMUNICATION

 2    CARRIERS.

 3         (6) TO THE EXTENT AN INTRASTATE UNIVERSAL SERVICE FUND IS

 4    ESTABLISHED, THE COMMISSION SHALL REQUIRE THAT THE COSTS OF THE

 5    FUND BE RECOVERED FROM ALL TELECOMMUNICATION PROVIDERS ON A COM-

 6    PETITIVELY NEUTRAL BASIS.  PROVIDERS CONTRIBUTING TO THE INTRA-

 7    STATE UNIVERSAL SERVICE FUND MAY RECOVER FROM END-USERS THE COSTS

 8    OF THE FINANCIAL SUPPORT THROUGH SURCHARGES ASSESSED ON END-USERS

 9    BILLS.

10         Sec. 317.  (1) The commission shall adopt operating require-

11    ments for operator service providers.  The requirements shall

12    include the following:

13         (a) That an OSP shall furnish each entity with which the OSP

14    contracts to provide operator service a sticker, card, or other

15    form of information for each telephone that has access to the

16    operator service.  The information shall include the name of the

17    operator service provider, a toll-free customer service telephone

18    number, and a statement that charges imposed by the operator

19    service provider may be obtained by calling the toll-free tele-

20    phone number.  The operator service provider shall require by

21    contract that the entity receiving the information display the

22    information on or near each of the telephones that has access to

23    the service.

24         (b) Prior to the connection of each call, the operator serv-

25    ice provider shall do all of the following:

26         (i) Announce the operator service provider's name.





   03328'99 *
                                  45

 1         (ii) Quote, at the caller's request and without charge,
             the

 2    rate and any other fees or surcharges applicable to the call

 3    charged by the operator service provider.

 4         (c) Allow a caller to choose the carrier of his or her

 5    choice by doing either of the following:

 6         (i) After informing the caller that the rates for the
             call

 7    may not reflect the rates for a call from the location of the

 8    caller and receiving the caller's consent, transfer the caller to

 9    the carrier of his or her choice without charge.

10         (ii) Instruct the caller how to reach his or her carrier
             of

11    choice by dialing the carrier's 950, 1-800,  or 
             10-XXX, OR

12    SIMILAR access service method.

13         (d) Allow callers to the operator service provider to reach

14    emergency services without charge.

15         (2) An operator service provider shall not provide operator

16    services in this state without first registering with the

17    commission.  The registration shall include the following

18    information:

19         (a) The name of the provider.

20         (b) The address of the provider's principal office.

21         (c) If the provider is not located in this state, the

22    address of the registered office and the name of the registered

23    agent authorized to receive service of process in this state.

24         (d) Any other information that the commission may require.

25         (3) The registration shall be accompanied with a registra-

26    tion fee of $100.00.





   03328'99 *
                                  46

 1         (4) The registration is effective immediately upon filing

 2    with the commission and the payment of the registration fee and

 3    shall remain in effect for 1 year from its effective date.

 4         (5) A registration may be renewed for 1 year by filing with

 5    the commission a renewal registration on a form provided by the

 6    commission and the payment of a renewal fee of $100.00.

 7         (6) Except as otherwise authorized by the commission, a pro-

 8    vider under this section shall not charge a rate for operator

 9    services or toll service that is greater than 300% of the state

10    average rate for operator or toll service by providers of regu-

11    lated toll service.

12         (7) A provider shall not discontinue basic local exchange

13    service for failure by a person to pay an OSP charge.

14         (8) In addition to any other penalty under this act, a

15    person who is charged for the use of an operator service provider

16    or is denied access to emergency services in violation of this

17    section may bring a civil action against the OSP to recover

18    actual damages or $250.00, whichever is greater, plus all reason-

19    able attorney fees.

20         Sec. 352.  (1) Until January 1, 1997, the rates of a
             pro-

21     vider of basic local exchange service for interconnection
                       under

22     this article shall be at the provider's total service long
                       run

23     incremental cost of providing the service.  After January 1,

24     1997, the rate for interconnection shall be just and
                       reasonable

25     as determined by the commission. 

26         (1)  (2)  The rates for INTERCONNECTION,
             unbundled  loops 

27    NETWORK ELEMENTS, number portability, and the termination of



   03328'99 *
                                  47

 1    local traffic shall be the rates established  under
              BY THE

 2    commission  case U-10647 and shall remain in effect until
             new

 3     total service long run incremental cost studies for such
                       services

 4     have been approved by the commission  AND SHALL BE
                       SET AT THE

 5    ILEC'S TOTAL SERVICE LONG RUN INCREMENTAL COST.

 6         (2) THE RATES FOR THE TERMINATION OF LOCAL TRAFFIC SHALL BE

 7    APPLICABLE TO ALL LOCAL CALLS AS DEFINED BY THE ORIGINATING

 8    PROVIDER'S LOCAL CALLING AREA.

 9         Sec. 353.  The commission shall issue  a  AN
             ANNUAL report

10    NO LATER THAN JANUARY 1 OF EACH YEAR and make recommendations to

11    the legislature and the governor  on or before January 1,
             1998 

12    involving the issues, scope, terms, and conditions of intercon-

13    nection of telecommunication providers with the basic local

14    exchange service.

15         Sec. 354.  (1) Except as otherwise provided in

16     subsection (2), until  UNTIL inter-LATA
                       prohibitions are removed

17    for  providers of basic local exchange service, a provider
             of

18     basic local exchange service  AN ILEC, AN ILEC
                       shall not do  any 

19    EITHER of the following:

20         (a) Jointly market or offer as a package a basic local

21    exchange service together with an inter-LATA toll service or con-

22    dition a rate for basic local exchange service on the customer

23    also ordering an inter-LATA toll service.

24         (b) Discriminate against providers of toll service by not

25    making available customer names and addresses that are available

26    to an affiliate of the basic local exchange provider.





   03328'99 *
                                  48

 1          (2) Subsection (1)(a) does not apply to a Michigan
             facility

 2     based provider or to the extent that a provider is providing

 3     1+intra-LATA toll dialing parity under section 312b.
                       

 4         Sec. 355.  (1)  On or before January 1, 1996, a
              A provider

 5    of basic local exchange service shall unbundle and separately

 6    price each basic local exchange service offered by the provider

 7    into the loop and port components,  and allow other
             providers to

 8     purchase such services on a nondiscriminatory basis
                        INCLUDING

 9    ALL UNBUNDLED NETWORK ELEMENTS, AND ALLOW OTHER PROVIDERS TO PUR-

10    CHASE SERVICES ON A NONDISCRIMINATORY BASIS FOR BASIC LOCAL

11    EXCHANGE SERVICE, TOLL SERVICE, ACCESS, OR LONG DISTANCE.

12         (2) Unbundled services and points of interconnection shall

13    include  at a minimum  the loop,  and
              the switch port, AND OTHER

14    UNBUNDLED NETWORK ELEMENTS.

15         (3) EACH INCUMBENT LOCAL EXCHANGE CARRIER SHALL INVENTORY

16    ALL DSL CAPABLE LOOPS AND SHALL MAKE THIS INVENTORY AVAILABLE

17    ELECTRONICALLY TO ANY OTHER PROVIDER.

18         (4) EACH INCUMBENT LOCAL EXCHANGE CARRIER SHALL PROVIDE ALL

19    REQUESTED COMBINATIONS OF UNBUNDLED NETWORK ELEMENTS AT RATES TO

20    BE DETERMINED BY THE COMMISSION BASED ON THE MOST RECENTLY

21    APPROVED TOTAL SERVICE LONG RUN INCREMENTAL COST STUDIES.

22         Sec. 356.  A provider of local exchange service
              AN ILEC

23    shall allow and provide for virtual co-location with other pro-

24    viders at or near the central office of the provider of local

25    exchange service of transmission equipment that the provider has

26    exclusive physical control over and is necessary for efficient

27    interconnection of the unbundled services.  Providers may enter



   03328'99 *
                                  49

 1    into an agreement that allows for interconnection on other terms

 2    and conditions than provided under this subsection.

 3         Sec. 357.  (1) A provider of local exchange service shall

 4    make available for resale on nondiscriminatory terms and condi-

 5    tions all basic local exchange services that  on January 1,
             1996 

 6    it is offering to its retail customers.  Resale BY AN ILEC shall

 7    be provided on a wholesale basis.

 8         (2) Except for restrictions on resale,  a provider of
             local

 9     exchange service  AN ILEC may include in its
                       wholesale tariffs

10    any use or class of customer restrictions it includes in its

11    retail tariffs.

12         (3) A provider of BASIC local exchange service is not

13    required to offer for resale  either of the following:  (a)
             A  A

14    package of services where basic local exchange service is jointly

15    marketed or combined with other services, or for any promotional

16    or discounted offering of basic local exchange service.

17          (b) Services for which the provider does not have
             existing

18     facilities in place to serve the intended end user, or any
                       serv-

19     ice offered for the first time subsequent to March 1, 1996.
                       

20         (4)  No later than January 1, 1996, each provider of
             local

21     exchange service  EACH ILEC shall file tariffs with
                       the commis-

22    sion which set forth the wholesale rates, terms, and conditions

23    for basic local exchange services.  The wholesale rates shall be

24    set at levels no greater than the  provider's 
             ILEC'S current

25    retail rates less the  provider's  ILEC'S avoided
             costs.







   03328'99 *
                                  50

 1         (5)  After January 1, 2000, wholesale 
             WHOLESALE rates shall

 2    not be less than the  provider's  ILEC'S total
             service long run

 3    incremental cost of the services.

 4         Sec. 358.  (1) As used in this section, "number portability"

 5    means the capability for a local exchange customer at a particu-

 6    lar location to change providers of basic local exchange service

 7    without any change in the local exchange customer's telephone

 8    number, while preserving the full range of functionality that the

 9    customer could obtain by changing telephone numbers.

10      (2)  No later than January 1, 1999, a  A
   provider of basic

11    local exchange service shall provide number portability ON A NON-

12    DISCRIMINATORY BASIS IN ACCORDANCE WITH THE TELECOMMUNICATIONS

13    ACT OF 1996.

14          (3) If the commission determines that it is
             economically

15     and technologically feasible to provide number portability
                       before

16     the date required under subsection (2), the commission shall

17     order providers of basic local exchange service to provide
                       the

18     service before that date.

19          (4) Until number portability is available, a provider
                       of

20     basic local exchange service shall make available to other
                       pro-

21     viders direct inward dialing and remote call forwarding.
                       

22         Sec. 362.  (1) The rate of  a provider of local
             exchange

23     service  AN ILEC is subject to subsection (2) if
                       all of the fol-

24    lowing apply:

25         (a) The  provider  ILEC has a service that
             competes with a

26    service of another provider.





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 1         (b) The other provider utilizes a service, including any

 2    unbundled service element or basic network component, from the

 3     provider of local exchange service  ILEC that is
             not available

 4    within the relevant market or geographic area from any other

 5    provider.  of local exchange service. 

 6         (c) The  provider of local exchange service 
             ILEC uses that

 7    same noncompetitive service or its functional equivalent.

 8         (2) The rate of a telecommunication service shall exceed the

 9    sum of both of the following:

10         (a) The tariffed rates, including access, carrier common

11    line, residual interconnection, and similar charges, for the non-

12    competitive service or its functional equivalent that is actually

13    used by the  provider of local exchange service 
             ILEC, as those

14    rates would be charged a customer for the use of that service.

15         (b) The total service long run incremental costs of all

16    other components of the  provider of local exchange service
             

17    ILEC.

18         Sec. 401.  (1) Except as otherwise provided by law or pre-

19    empted by federal law, the commission shall not have authority

20    over enhanced services, paging, cellular, mobile, and answering

21    services, video, cable service, pay-per-view, shared tenant, pri-

22    vate networks, financial services networks, radio and television,

23    WATS, personal communication networks, municipally owned telecom-

24    munication system, 800, 877, 888, AND SIMILAR prefix services,

25    burglar and fire alarm services, energy management services,

26    except for state institutions of higher education the reselling

27    of centrex or its equivalent, payphone services, and the



   03328'99 *
                                  52

 1    reselling of an unlicensed telecommunication service.  The

 2    foregoing services shall not be considered part of basic local

 3    exchange service.

 4         (2) Except as otherwise provided by this act, the commission

 5    shall not have the authority over a telecommunication service not

 6    specifically provided for in this act.

 7         Sec. 402.  (1) A provider of an unregulated service may file

 8    with the commission a tariff which shall contain the information

 9    the provider determines to be appropriate regarding the offered

10    service.

11         (2) The commission shall retain a tariff filed under this

12    section and make all information contained in the tariff avail-

13    able to the public, INCLUDING PUBLICATION ON THE INTERNET.

14         Sec. 502.  (1) A provider of a telecommunication service

15    shall not do any of the following:

16         (a) Make a statement or representation, including the omis-

17    sion of material information, regarding the rates, terms, or con-

18    ditions of providing a telecommunication service that is false,

19    misleading, or deceptive.

20         (b) Charge an end-user for a subscribed service that the

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

22    refuse an offered or proposed subscribed service is not an affir-

23    mative order for the service.

24         (c) If an end-user has canceled a service, charge the

25    end-user for service provided after the effective date the serv-

26    ice was canceled.





   03328'99 *
                                  53

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

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

 3    service is ordered.

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

 5    service or other regulated service will be discontinued unless

 6    the end-user pays a charge that is due for an unregulated

 7    service.

 8         (F) DISPARAGING THE SERVICES, BUSINESS, OR REPUTATION OF

 9    ANOTHER BY FALSE OR MISLEADING REPRESENTATION OF FACT.

10         (G) REPRESENTING TO A PARTY TO WHOM SERVICES ARE SUPPLIED

11    THAT THE SERVICES ARE BEING SUPPLIED IN RESPONSE TO A REQUEST

12    MADE BY OR ON BEHALF OF THE PARTY WHEN THEY ARE NOT.

13         (H) CAUSING A PROBABILITY OF CONFUSION OR A MISUNDERSTANDING

14    AS TO THE LEGAL RIGHTS, OBLIGATIONS, OR REMEDIES OF A PARTY TO A

15    TRANSACTION.

16         (I) REPRESENTING OR IMPLYING THAT THE SUBJECT OF A TRANSAC-

17    TION WILL BE PROVIDED PROMPTLY, OR AT A SPECIFIED TIME, OR WITHIN

18    A REASONABLE TIME, IF THE PROVIDER KNOWS OR HAS REASON TO KNOW IT

19    WILL NOT BE SO PROVIDED.

20         (J) CAUSING COERCION AND DURESS AS A RESULT OF THE TIME AND

21    NATURE OF A SALES PRESENTATION.

22         (2) WHEN THE COMMISSION HAS AUTHORITY TO BRING A PROCEEDING

23    FOR VIOLATION OF THIS SECTION, THE COMMISSION MAY ACCEPT AN

24    ASSURANCE OF DISCONTINUANCE OF A METHOD, ACT, OR PRACTICE WHICH

25    IS ALLEGED TO BE UNLAWFUL UNDER THIS SECTION FROM THE PERSON WHO

26    IS ALLEGED TO HAVE ENGAGED, BE ENGAGING, OR BE ABOUT TO ENGAGE IN

27    THE METHOD, ACT, OR PRACTICE.  THE ASSURANCE SHALL NOT BE AN



   03328'99 *
                                  54

 1    ADMISSION OF GUILT OR BE INTRODUCED IN ANY OTHER PROCEEDING.

 2    UNLESS RESCINDED BY THE PARTIES OR VOIDED BY THE COURT FOR GOOD

 3    CAUSE, THE ASSURANCE MAY BE ENFORCED IN THE CIRCUIT COURT BY THE

 4    PARTIES TO THE ASSURANCE.  THE ASSURANCE MAY INCLUDE A STIPULA-

 5    TION FOR ANY OF THE FOLLOWING:

 6         (A) THE VOLUNTARY PAYMENT BY THE PERSON FOR THE COST OF

 7    INVESTIGATION.

 8         (B) AN AMOUNT TO BE HELD IN ESCROW PENDING THE OUTCOME OF AN

 9    ACTION.

10         (C) AN AMOUNT FOR RESTITUTION TO AN AGGRIEVED PERSON.

11         (3) IT IS A DEFENSE TO ANY ALLEGED VIOLATION OF THIS SECTION

12    TO THE EXTENT THAT THE ALLEGED VIOLATION WAS CAUSED THROUGH THE

13    CONDUCT OF ANOTHER PROVIDER OR THIRD PARTY NOT UNDER THE DIREC-

14    TION OR CONTROL OF THE ALLEGED VIOLATOR.

15         SEC. 502A.  (1) A CONTRACT, COMBINATION, OR CONSPIRACY

16    BETWEEN 2 OR MORE PERSONS IN RESTRAINT OF, OR TO MONOPOLIZE,

17    TRADE, OR COMMERCE IN TELECOMMUNICATION SERVICES IS UNLAWFUL.

18         (2) THE ESTABLISHMENT, MAINTENANCE, OR USE OF A MONOPOLY, OR

19    ANY ATTEMPT TO ESTABLISH A MONOPOLY, OF TRADE OR COMMERCE IN

20    TELECOMMUNICATION SERVICES BY ANY PERSON, FOR THE PURPOSE OF

21    EXCLUDING OR LIMITING COMPETITION OR CONTROLLING, FIXING, OR

22    MAINTAINING PRICES, IS UNLAWFUL.

23         (3) THIS SECTION SHALL NOT APPLY TO TRANSACTION OR CONDUCT

24    SPECIFICALLY AUTHORIZED UNDER THIS ACT OR THE TELECOMMUNICATIONS

25    ACT OF 1996.

26         (4) THE ATTORNEY GENERAL MAY BRING AN ACTION FOR APPROPRIATE

27    INJUNCTIVE OR EQUITABLE RELIEF AND CIVIL PENALTIES IN THE NAME OF



   03328'99 *
                                  55

 1    THE STATE FOR A VIOLATION OF THIS SECTION.  THE COURT MAY ASSESS

 2    FOR BENEFIT OF THE STATE A CIVIL FINE OF NOT MORE THAN

 3    $5,000,000.00 FOR EACH VIOLATION OF THIS SECTION.

 4         (5) THE STATE, A POLITICAL SUBDIVISION, OR ANY PUBLIC AGENCY

 5    THREATENED WITH INJURY OR INJURED DIRECTLY OR INDIRECTLY IN ITS

 6    BUSINESS OR PROPERTY BY A VIOLATION OF THIS SECTION MAY BRING AN

 7    ACTION FOR APPROPRIATE INJUNCTIVE OR OTHER EQUITABLE RELIEF,

 8    ACTUAL DAMAGES SUSTAINED BY REASON OF A VIOLATION OF THIS ACT,

 9    AND, AS DETERMINED BY THE COURT, INTEREST ON THE DAMAGES FROM THE

10    DATE OF THE COMPLAINT, TAXABLE COSTS, AND REASONABLE ATTORNEY

11    FEES.

12         (6) ANY OTHER PERSON THREATENED WITH INJURY OR INJURED

13    DIRECTLY OR INDIRECTLY IN HIS, HER, OR ITS BUSINESS OR PROPERTY

14    BY A VIOLATION OF THIS SECTION MAY BRING AN ACTION FOR APPROPRI-

15    ATE INJUNCTIVE OR OTHER EQUITABLE RELIEF AGAINST IMMEDIATE IRREP-

16    ARABLE HARM, ACTUAL DAMAGES SUSTAINED BY REASON OF A VIOLATION OF

17    THIS SECTION, AND, AS DETERMINED BY THE COURT, INTEREST ON THE

18    DAMAGES FROM THE DATE OF THE COMPLAINT, TAXABLE COSTS, AND REA-

19    SONABLE ATTORNEY FEES.  IF THE TRIER OF FACT FINDS THAT THE VIO-

20    LATION IS FLAGRANT, IT MAY INCREASE RECOVERY TO AN AMOUNT NOT IN

21    EXCESS OF 3 TIMES THE ACTUAL DAMAGES SUSTAINED BY REASON OF A

22    VIOLATION OF THIS SECTION.

23         (7) THE ATTORNEY GENERAL SHALL HAVE THE AUTHORITY PROVIDED

24    UNDER SECTION 6 OF THE MICHIGAN ANTITRUST REFORM ACT, 1984

25    PA 274, MCL 445.776, TO CONDUCT AN INVESTIGATION FOR VIOLATION OF

26    THIS SECTION.





   03328'99 *
                                  56

 1         (8) THIS SECTION SHALL APPLY TO AN EMPLOYEE OR OFFICIAL OF A

 2    LOCAL UNIT OF GOVERNMENT WHO ENTERS INTO AN AGREEMENT, DIRECTLY

 3    OR INDIRECTLY, OR A CONSPIRACY WITH A TELECOMMUNICATIONS PROVIDER

 4    TO VIOLATE THIS SECTION.

 5         SEC. 507.  (1) A TELECOMMUNICATION PROVIDER SHALL NOT ADD TO

 6    OR ALTER AN END-USER'S SERVICE PACKAGE WITHOUT THE AUTHORIZATION

 7    OF THE END-USER.

 8         (2) THE COMMISSION SHALL ISSUE ORDERS ESTABLISHING PROCE-

 9    DURES THAT TELECOMMUNICATIONS PROVIDERS SHALL ADOPT TO ENSURE

10    THAT SERVICES ARE NOT ADDED TO AN END-USER'S SERVICE PACKAGE

11    WITHOUT THE END-USER'S AUTHORIZATION.

12         (3) ALL BILLINGS BY A TELECOMMUNICATIONS PROVIDER SHALL BE

13    WRITTEN IN A CLEAR AND CONSPICUOUS MANNER AND PROVIDE THE NECES-

14    SARY INFORMATION TO ALLOW AN END-USER TO MAKE INFORMED DECISIONS

15    REGARDING SERVICES AND SERVICE PROVIDERS.

16         (4) ALL BILLINGS SHALL BE CLEARLY ORGANIZED AND SHALL

17    INCLUDE, BUT NOT BE LIMITED TO, ALL OF THE FOLLOWING:

18         (A) IDENTIFICATION OF ANY NEW CHARGES OR CHANGES TO THE

19    END-USER'S SERVICES FROM THE PREVIOUS BILLING PERIOD.

20         (B) COMPLETE DESCRIPTIONS OF ALL CHARGES AND THE SERVICE

21    PROVIDER RESPONSIBLE FOR EACH CHARGE, INCLUDING THE PROVIDER'S

22    ADDRESS AND TOLL-FREE TELEPHONE NUMBER.

23         (C) INFORMATION REGARDING HOW THE END-USER MAY DISPUTE A

24    CHARGE AND HOW TO FILE A COMPLAINT WITH THE COMMISSION UNDER THIS

25    ACT.

26         (5) UPON THE RECEIPT OF A COMPLAINT FILED BY A PERSON

27    ALLEGING A VIOLATION OF THIS SECTION OR UPON THE COMMISSION'S OWN



   03328'99 *
                                  57

 1    MOTION, THE COMMISSION MAY CONDUCT A CONTESTED CASE AS PROVIDED

 2    UNDER SECTION 203.

 3         (6) IF THE COMMISSION FINDS THAT A PERSON HAS VIOLATED THIS

 4    SECTION, THE COMMISSION SHALL ORDER REMEDIES AND PENALTIES AS

 5    PROVIDED BY THIS ACT.

 6         (7) IF THE COMMISSION FINDS THAT A PARTY'S COMPLAINT OR

 7    DEFENSE FILED UNDER THIS SECTION IS FRIVOLOUS, THE COMMISSION

 8    SHALL AWARD TO THE PREVAILING PARTY COSTS, INCLUDING REASONABLE

 9    ATTORNEY FEES, AGAINST THE NONPREVAILING PARTY AND THEIR

10    ATTORNEY.

11         (8) AS USED IN THIS SECTION:

12         (A) "END-USER" MEANS THE RETAIL SUBSCRIBER OF A TELECOMMUNI-

13    CATIONS SERVICE.

14         (B) "TELECOMMUNICATIONS PROVIDER" OR "PROVIDER" MEANS A

15    PERSON THAT PROVIDES 1 OR MORE TELECOMMUNICATIONS SERVICES FOR

16    COMPENSATION.

17         Sec. 601.  (1) If after notice and hearing the commission

18    finds a person has violated this act, the commission shall order

19    remedies and penalties to protect and make whole ratepayers and

20    other persons who have suffered an economic loss as a result of

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

22    following:

23         (a) Except as provided in subdivision (b), the person to pay

24    a fine for the first offense of not less than $1,000.00 nor more

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

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

27    $2,000.00 nor more than $40,000.00 per day.



   03328'99 *
                                  58

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

 2    provider to pay a fine for the first offense of not less than

 3    $200.00 or more than $500.00 per day that the provider is in vio-

 4    lation of this act, and for each subsequent offense a fine of not

 5    less than $500.00 or more than $1,000.00 per day.

 6         (c) A refund to the ratepayers of the provider of any col-

 7    lected excessive rates.

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

 9    person's license is revoked.

10         (e) Cease and desist orders.

11         (F) ATTORNEY FEES AND ACTUAL COSTS.

12         (G) WHEN DETERMINING WHETHER TO AWARD COMPENSATORY DAMAGES

13    AND DETERMINING THE AMOUNT OF COMPENSATORY DAMAGES SO AS TO MAKE

14    WHOLE RATEPAYERS AND OTHER PERSONS, DOUBTS AS TO THE CERTAINTY OF

15    DAMAGES MUST BE RESOLVED AGAINST THE WRONGDOER.  THERE IS NO

16    RIGHT TO A JURY TRIAL IN ANY MATTER BEFORE THE COMMISSION.

17         (2) A PERSON WHO ENGAGES IN ANY VIOLATION OF SECTION 502A

18    WITH THE INTENT TO ACCOMPLISH A RESULT PROHIBITED BY THE SECTION

19    SHALL BE GUILTY OF A MISDEMEANOR, PUNISHABLE BY IMPRISONMENT OF

20    NOT MORE THAN 2 YEARS OR A FINE OF NOT MORE THAN $100,000.00, OR

21    BOTH, IF AN INDIVIDUAL, OR NOT MORE THAN $10,000,000.00 IF THE

22    PERSON IS OTHER THAN AN INDIVIDUAL.  A CRIMINAL PROSECUTION SHALL

23    NOT BE BROUGHT UNDER THIS SECTION IF A PRIOR CRIMINAL PROSECUTION

24    HAS BEEN INITIATED UNDER THE FEDERAL SHERMAN ACT OR THE MICHIGAN

25    ANTITRUST REFORM ACT ARISING OUT OF THE SAME TRANSACTIONS OR

26    OCCURRENCES.





   03328'99 *
                                  59

 1         Sec. 604.  (1) This act is repealed effective January 1,

 2     2001  2005.

 3         (2) Section 312b of  Act No. 179 of the Public Acts of
             1991,

 4     being section 484.2312b of the Michigan Compiled Laws
                        THE

 5    MICHIGAN TELECOMMUNICATIONS ACT, 1991 PA 179, MCL 484.2312B, is

 6    repealed effective July 1, 1997.

 7         (3) Sections 206, 207a, 212, 307a, 501, and 605 of  Act

 8     No. 179 of the Public Acts of 1991, being sections 
                       THE MICHIGAN

 9    TELECOMMUNICATIONS ACT, 1991 PA 179, MCL 484.2206, 484.2207a,

10    484.2212, 484.2307a, 484.2501, and 484.2605,  of the
             Michigan

11     Compiled Laws,  are repealed.

12         (4) Section 3g of  Act No. 206 of the Public Acts of
             1913,

13     being section 484.103g of the Michigan Compiled Laws
                        1913

14    PA 206, MCL 484.103G, is repealed.

15         (5) SECTIONS 311, 321, 351, 359, AND 360 OF THE MICHIGAN

16    TELECOMMUNICATIONS ACT, 1991 PA 179, MCL 484.2311, 484.2321,

17    484.2351, 484.2359, AND 484.2360, ARE REPEALED.























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