House Introduced Bill 5726

HOUSE BILL No. 5726

May 3, 2000, Introduced by Rep. Thomas 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, 203, 203a, 213, 302, 310,

312, 315, 316, 317, 351, 401, 505, 506, and 604 (MCL 484.2101,

484.2102, 484.2103, 484.2203, 484.2203a, 484.2213, 484.2302,

484.2310, 484.2312, 484.2315, 484.2316, 484.2317, 484.2351,

484.2401, 484.2505, 484.2506, and 484.2604), sections 101, 203,

213, 310, 312, 401, and 604 as amended and sections 203a, 317,

and 351 as added by 1995 PA 216, section 102 as amended by 1998

PA 41, section 316 as amended by 1999 PA 31, section 505 as added

by 1998 PA 260, and section 506 as added by 1998 PA 259, and by

adding sections 210a, 303a, 313a, and 504a; and to repeal acts

and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

03025'99 * SAT
2

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 basic residential

5
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 existing state and

11
federal law regarding antitrust, consumer protection, and fair

12
trade to provide safeguards for competition and consumers.

13
(d) Encourage the introduction of new services, the entry of

14
new providers, the development of new technologies, and increase

15
investment in the telecommunication infrastructure in this state

16
through incentives to providers to offer the most efficient serv-

17
ices and products.

18
(e) Improve the opportunities for economic development and

19
the delivery of essential services including education and health

20
care.

21
(f) Streamline the process for setting and adjusting the

22
rates for regulated services that will ensure effective rate

23
review and reduce the costs and length of hearings traditionally

24
associated with rate cases.

25
(g) Encourage the use of existing educational telecommunica-

26
tion networks and networks established by other commercial

03025'99 *
3

1
providers as building blocks for a cooperative and efficient

2
statewide educational telecommunication system.

3
(h) Ensure effective review and disposition of disputes

4
between telecommunication providers.

5
(I) ENSURE FAIR AND EFFECTIVE REVIEW AND DISPOSITION OF RES-

6
IDENTIAL CUSTOMER COMPLAINTS.

7
Sec. 102. As used in this act:

8
(a) "Access service" means access to a local exchange net-

9
work for the purpose of enabling a provider to originate or ter-

10
minate telecommunication services within the local exchange.

11
Except for end-user common line services, access service does not

12
include access service to a person who is not a provider.

13
(b) "Basic local exchange service" or "local exchange

14
service" means the provision of an access line and usage within a

15
local calling area for the transmission of high-quality 2-way

16
interactive switched voice or data communication.

17
(c) "Cable service" means 1-way transmission to subscribers

18
of video programming or other programming services and subscriber

19
interaction for the selection of video programming or other pro-

20
gramming services.

21
(d) "Commission" means the Michigan public service

22
commission.

23
(e) "Contested case" or "case" means a proceeding as defined

24
in section 3 of the administrative procedures act of 1969, 1969

25
PA 306, MCL 24.203.

03025'99 *
4

1
(F) "COSTS", AS USED IN SECTIONS 312, 315, AND 316, MEANS

2
ADMINISTRATIVE AND OPERATIONAL COSTS AND LOST REVENUES THAT A

3
PROVIDER INCURS IN COMPLYING WITH SECTIONS 312, 315, AND 316.

4
(G) (f) "Educational institution" means a public educa-

5
tional institution or a private non-profit NONPROFIT educa-

6
tional institution approved by the department of education to

7
provide a program of primary, secondary, or higher education, a

8
public library, or a nonprofit association or consortium whose

9
primary purpose is education. A nonprofit association or consor-

10
tium under this subdivision shall consist of 2 or more of the

11
following:

12
(i) Public educational institutions.

13
(ii) Nonprofit educational institutions approved by the

14
department of education.

15
(iii) The state board of education.

16
(iv) Telecommunication providers.

17
(v) A nonprofit association of educational institutions or

18
consortium of educational institutions.

19
(H) (g) "Energy management services" means a service of a

20
public utility providing electric power, heat, or light for

21
energy use management, energy use control, energy use informa-

22
tion, and energy use communication.

23
(I) (h) "Exchange" means 1 or more contiguous central

24
offices and all associated facilities within a geographical area

25
in which local exchange telecommunication services are offered by

26
a provider.

03025'99 *
5

1
(J) (i) "Information services" or "enhanced services"

2
means the offering of a capability for generating, acquiring,

3
storing, transforming, processing, retrieving, utilizing, or

4
making available information, including energy management serv-

5
ices, that is conveyed by telecommunications TELECOMMUNICATION

6
SERVICE. Information services or enhanced services do not

7
include the use of such capability for the management, control,

8
or operation of a telecommunications TELECOMMUNICATION system

9
or the management of a telecommunications TELECOMMUNICATION

10
service.

11
(K) (j) "Interconnection" means the technical arrangements

12
and other elements necessary to permit the connection between the

13
switched networks of 2 or more providers to enable a telecommuni-

14
cation service originating on the network of 1 provider to termi-

15
nate on the network of another provider.

16
(k) "Inter-LATA prohibition" means the prohibitions on the

17
offering of inter-exchange or inter-LATA service contained in the

18
modification of final judgment entered pursuant to a consent

19
decree in United States v American Telephone and Telegraph Co.,

20
552 F. Supp. 131 (D.D.C. 1982), and in the consent decree

21
approved in United States v GTE Corp., 603 F. Supp. 730

22
(D.D.C. 1984).

23
(l) "LATA" means the local access and transport area as

24
defined in United States v American Telephone and Telegraph Co.,

25
569 F. Supp. 990 (D.D.C. 1983).

26
(l) (m) "License" means a license issued pursuant to

27
UNDER this act.

03025'99 *
6

1
(M) (n) "Line" or "access line" means the medium over

2
which a telecommunication user connects into the local exchange.

3
(N) (o) "Local calling area" means, FOR PURPOSES OF ESTAB-

4
LISHING RATES TO BE CHARGED TO END USERS, a geographic area

5
encompassing 1 or more local communities as described in maps,

6
tariffs, or rate schedules filed with and approved by the

7
commission.

8
(O) (p) "Local directory assistance" means the provision

9
by telephone A TELECOMMUNICATION SERVICE of a listed telephone

10
number within the caller's area code.

11
(P) (q) "Local exchange rate" means the monthly and usage

12
rate, including all necessary and attendant charges, imposed for

13
basic local exchange service to customers.

14
(Q) (r) "Loop" means the transmission facility between the

15
network interface on a subscriber's premises and the main distri-

16
bution frame in the servicing central office.

17
(R) (s) "Operator service" means a telecommunication serv-

18
ice that includes automatic or live assistance to a person to

19
arrange for completion and billing of a telephone call originat-

20
ing within this state that is specified by the caller through a

21
method other than 1 of the following:

22
(i) Automatic completion with billing to the telephone from

23
which the call originated.

24
(ii) Completion through an access code or a proprietary

25
account number used by the person, with billing to an account

26
previously established with the provider by the person.

03025'99 *
7

1
(iii) Completion in association with directory assistance

2
services.

3
(S) (t) "Operator service provider" or "OSP" means a pro-

4
vider of operator service.

5
(T) (u) "Payphone service" means a telephone call provided

6
from a public, semipublic, or individually owned and operated

7
telephone that is available to the public and is accessed by the

8
depositing of coin or currency or by other means of payment at

9
the time the call is made.

10
(U) (v) "Person" means an individual, corporation, part-

11
nership, association, governmental entity, or any other legal

12
entity.

13
(V) (w) "Person with disabilities" means a person who has

14
1 or more of the following physical characteristics:

15
(i) Blindness.

16
(ii) Inability to ambulate more than 200 feet without having

17
to stop and rest during any time of the year.

18
(iii) Loss of use of 1 or both legs or feet.

19
(iv) Inability to ambulate without the prolonged use of a

20
wheelchair, walker, crutches, braces, or other device required to

21
aid mobility.

22
(v) A lung disease from which the person's expiratory volume

23
for 1 second, when measured by spirometry, is less than 1 liter,

24
or from which the person's arterial oxygen tension is less than

25
60 mm/hg of room air at rest.

26
(vi) A cardiovascular disease from which the person measures

27
between 3 and 4 on the New York heart classification scale, or

03025'99 *
8

1
from which a marked limitation of physical activity causes

2
fatigue, palpitation, dyspnea, or anginal pain.

3
(vii) Other diagnosed disease or disorder including, but not

4
limited to, severe arthritis or a neurological or orthopedic

5
impairment that creates a severe mobility limitation.

6
(W) (x) "Port" except for the loop, means the entirety of

7
local exchange, including dial tone, a telephone number, switch-

8
ing software, local calling, and access to directory assistance,

9
a white pages listing, operator services, and interexchange and

10
intra-LATA toll carriers.

11
(X) (y) "Reasonable rate" or "just and reasonable rate"

12
means a rate that is not inadequate, excessive, or unreasonably

13
discriminatory. A rate is inadequate if it is less than the

14
total service long run incremental cost of providing the

15
service.

16
(Y) (z) "Residential customer" means a person to whom

17
telecommunication services are furnished predominantly for per-

18
sonal or domestic purposes at the person's dwelling.

19
(Z) (aa) "Special access" means the provision of access

20
service, other than switched access service, to a local exchange

21
network for the purpose of enabling a provider to originate or

22
terminate telecommunication service within the exchange, includ-

23
ing the use of local private lines.

24
(AA) (bb) "State institution of higher education" means an

25
institution of higher education described in sections 4, 5, and 6

26
of article VIII of the state constitution of 1963.

03025'99 *
9

1
(BB) (cc) "Telecommunication provider" or "provider" means

2
a person or an affiliate of the person each of which for

3
compensation provides 1 or more telecommunication services.

4
(CC) (dd) "Telecommunication services" or "services"

5
includes regulated and unregulated services offered to customers

6
for the transmission of 2-way interactive communication and asso-

7
ciated usage. A telecommunication service is not a public util-

8
ity service.

9
(DD) (ee) "Toll service" means the transmission of 2-way

10
interactive switched communication between local calling areas.

11
Toll service does not include individually negotiated contracts

12
for similar telecommunication services or wide area telecommuni-

13
cations service.

14
(EE) (ff) "Total service long run incremental cost" means,

15
given current service demand, including associated costs of every

16
component necessary to provide the service, 1 of the following:

17
(i) The total forward-looking cost of a telecommunication

18
service, relevant group of services, or basic network component,

19
using current least cost technology that would be required if the

20
provider had never offered the service.

21
(ii) The total cost that the provider would incur if the

22
provider were to initially offer the service, group of services,

23
or basic network component.

24
(FF) (gg) "Wide area telecommunications service" or "WATS"

25
means the transmission of 2-way interactive switched communica-

26
tion over a dedicated access line.

03025'99 *
10

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

2
this act shall not be construed to prevent any person from

3
providing telecommunication services in competition with another

4
telecommunication provider.

5
(2) THE AMENDATORY ACT THAT ADDED THIS SUBSECTION DOES NOT

6
ADOPT, APPROVE, OR CODIFY ANY COURT DECISION, RULE, ORDER, REGU-

7
LATION, PRACTICE, OR POLICY OF ANY COURT OR AGENCY RELATING TO

8
THIS ACT.

9
Sec. 203. (1) Upon EXCEPT FOR A COMPLAINT FILED BY A RES-

10
IDENTIAL CUSTOMER UNDER SECTION 203A, UPON receipt of an applica-

11
tion or complaint filed under this act, or on its own motion, the

12
commission may conduct an investigation, hold hearings, and issue

13
its findings and order under the contested hearings provisions of

14
the administrative procedures act of 1969, Act No. 306 of the

15
Public Acts of 1969, being sections 24.201 to 24.328 of the

16
Michigan Compiled Laws 1969 PA 306, MCL 24.201 TO 24.328.

17
(2) An application or complaint filed under this section

18
shall contain all information, testimony, exhibits, or other doc-

19
uments and information on which the person intends to rely to

20
support the application or complaint. Applications or complaints

21
that do not meet the requirements of this subsection shall be

22
dismissed or suspended pending the receipt by the commission of

23
the required information.

24
(3) The burden of proving a case filed under this act shall

25
be IS with the party filing the application or complaint.

26
(4) In a contested case under this section, the commission

27
can administer oaths, certify all official acts, and compel the

03025'99 *
11

1
attendance of witnesses and the production of papers, books,

2
accounts, documents, and testimony.

3
(5) Except as otherwise provided in subsections (2) and (6),

4
the commission shall issue a final order in a case filed under

5
this section within 90 days from the date the application or com-

6
plaint is filed.

7
(6) If a hearing is required, the applicant or complainant

8
shall publish a notice of hearing as required by the commission

9
within 7 days of the date the application or complaint was filed

10
or as required by the commission. The first hearing shall be

11
held within 10 days after the date of the notice. If a hearing

12
is held, the commission shall have 180 days from the date the

13
application or complaint was filed to issue its final order. If

14
the principal parties of record agree that the complexity of

15
issues involved requires additional time, the commission may have

16
up to 210 days from the date the application or complaint was

17
filed to issue its final order.

18
(7) An order of the commission shall be subject to review as

19 provided by section 26 of Act No. 300 of the Public Acts of

20
1909, being section 462.26 of the Michigan Compiled Laws 1909 PA

21
300, MCL 462.26.

22
(8) If a complaint is filed under this section by a provider

23
against another provider, the provider of service shall not dis-

24
continue service during the period of the contested case, includ-

25
ing the alternative dispute process, if the provider receiving

26
the service has posted a surety bond, provided an irrevocable

03025'99 *
12

1
letter of credit, or provided other adequate security in an

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

3
Sec. 203a. (1) For all complaints involving a dispute of

4
$1,000.00 or less BETWEEN A PROVIDER AND A RESIDENTIAL CUSTOMER,

5
or at the option of the complainant, for a period of 45 days

6
after the date the complaint is filed under section 203, the par-

7
ties shall attempt alternative means of resolving the complaint.

8
(2) Any alternative means that will result in a recommended

9
settlement may be used that is agreed to by the principal parties

10
of record, including, but not limited to, settlement conferences,

11
mediation, and other informal dispute resolution methods. If the

12
parties cannot agree on an alternative means within 20 days after

13
the date the complaint is filed, the commission shall order

14
mediation. Within the 45-day period required under subsection

15
(1), a recommended settlement shall be made to the parties.

16
(3) Within 7 days after the date of the recommended settle-

17
ment, each party shall file with the commission a written accep-

18
tance or rejection of the recommended settlement. If the parties

19
accept the recommendation, then the recommendation shall become

20
the final order. in the contested case under section 203.

21
(4) If a party rejects the recommended settlement, then the

22
application or complaint shall proceed to a contested case hear-

23
ing under THIS section. 203.

24
(5) The party that rejects the recommended settlement shall

25
pay the opposing party's actual costs of proceeding to a con-

26
tested case hearing, including attorney fees, unless the final

27
order of the commission is more favorable to the rejecting party

03025'99 *
13

1
than the recommended settlement under this section. A final

2
order is considered more favorable if it differs by 10% or more

3
from the recommended settlement in favor of the rejecting party.

4
(6) If the recommendation is not accepted under

5
subsection (3), the individual commissioners shall not be

6
informed of the recommended settlement until they have issued

7
their final order. under section 203.

8
(7) An attempt to resolve a contested case under this sec-

9
tion is exempt from the requirements of section 203 and the

10
administrative procedures act of 1969, Act No. 306 of the Public

11
Acts of 1969, being sections 24.201 to 24.328 of the Michigan

12
Compiled Laws 1969 PA 306, MCL 24.201 TO 24.328.

13
(8) SECTION 203 APPLIES TO ALL COMPLAINT PROCEEDINGS. IF

14
THERE IS A CONFLICT BETWEEN THIS SECTION AND SECTION 203, THIS

15
SECTION CONTROLS. This section shall not extend or toll the

16
time within which the commission is required to issue its final

17
order. under section 203.

18
SEC. 210A. ALL TARIFFS FOR REGULATED SERVICES FILED WITH

19
THE COMMISSION BY ANY PROVIDER SHALL ALSO BE PROVIDED IN ELEC-

20
TRONIC FORM IN A MANNER DETERMINED BY THE COMMISSION. THE COM-

21
MISSION SHALL MAKE ALL TARIFFS AVAILABLE ON ITS WORLDWIDE

22
WEBSITE.

23
Sec. 213. (1) No later than July 1, 1996, the THE commis-

24
sion shall promulgate rules for the implementation and adminis-

25
tration of this act under the administrative procedures act of

26
1969, Act No. 306 of the Public Acts of 1969, being sections

03025'99 *
14

1
24.201 to 24.328 of the Michigan Compiled Laws 1969 PA 306, MCL

2
24.201 TO 24.328.

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

4
EFFECTIVE September 1, 1996, the following administrative rules

5
shall not apply to telecommunication providers or telecommunica-

6
tion services:

7
(a) Electric power and communication lines: R 460.581 to

8
R 460.592.

9
(b) Intrastate telephone services and facilities:

10
R 460.1951 to R 460.1968.

11
(c) Filing procedures for communications common carriers

12
tariffs: R 460.2051 to R 460.2057.

13
(d) Consumer standards and billing practices, residential

14
telephone service: R 460.2211 to R 460.2279.

15
(e) Uniform systems of accounts for class A and class B

16
telephone companies: R 460.9041 and R 460.9059.

17
(3) If the Michigan supreme court rules that sections 45

18
and 46 of the administrative procedures act of 1969, Act No. 306

19
of the Public Acts of 1969, being sections 24.245 and 24.246 of

20
the Michigan Compiled Laws, are unconstitutional, and a statute

21
requiring legislative review of administrative rules is not

22
enacted within 90 days after the Michigan supreme court ruling,

23
the commission shall not promulgate rules under this act.

24
Subsection (2) does not apply if the commission is prohibited

25
from promulgating rules under this subsection. BEGINNING IN THE

26
YEAR 2000, AND IN EVERY EVEN NUMBERED YEAR THEREAFTER, THE

27
COMMISSION SHALL DO ALL OF THE FOLLOWING:

03025'99 *
15

1
(A) REVIEW ALL REGULATIONS ISSUED UNDER THIS ACT IN EFFECT

2
AT THE TIME OF THE REVIEW THAT APPLY TO THE OPERATIONS OR ACTIVI-

3
TIES OF ANY PROVIDER OF TELECOMMUNICATION SERVICE.

4
(B) DETERMINE WHETHER ANY OF THE REGULATIONS ARE STILL NEC-

5
ESSARY AS THE RESULT OF ECONOMIC COMPETITION BETWEEN PROVIDERS OF

6
THE SERVICE.

7
(C) REPEAL OR MODIFY ANY REGULATIONS IT DETERMINES TO BE NO

8
LONGER NECESSARY IN THE PUBLIC INTEREST.

9
Sec. 302. (1) After notice and hearing, the commission

10
shall approve an application for a license if the commission

11
finds both ALL of the following:

12
(a) The applicant possesses sufficient technical, financial,

13
and managerial resources and abilities to provide basic local

14
exchange service to every person within the geographic area of

15
the license.

16
(B) THE APPLICANT HAS COMMITTED, UNDER A SPECIFIC SCHEDULE

17
THAT IT HAS FILED WITH THE COMMISSION, TO OFFER ALL SERVICES ON A

18
NONDISCRIMINATORY BASIS TO ALL CUSTOMERS AND CLASSES OF CUSTOMERS

19
WHO ARE POTENTIAL USERS OF THE SERVICES WITHIN THE GEOGRAPHIC

20
AREA OF THE LICENSE. THE SERVICES SHALL BE OFFERED WITHIN 2

21
YEARS OF THE FILING OF THE APPLICATION.

22
(C) (b) The granting of a license to the applicant would

23
not be contrary to the public interest.

24
(2) THE COMMISSION SHALL AS A CONDITION TO THE GRANTING OF A

25
LICENSE REQUIRE THE PROCUREMENT OF A PERFORMANCE BOND SUFFICIENT

26
TO GUARANTEE BOTH OF THE FOLLOWING:

03025'99 *
16

1
(A) AMOUNTS DUE OR TO BECOME DUE TO OTHER PROVIDERS

2
PROVIDING ACCESS TO THE LOCAL EXCHANGE NETWORKS.

3
(B) AMOUNTS SUFFICIENT TO PROTECT ANY ADVANCES OR DEPOSITS

4
THE APPLICANT MAY COLLECT FROM ITS CUSTOMERS. ALTERNATIVELY, THE

5
COMMISSION MAY ORDER THAT THE ADVANCES OR DEPOSITS BE HELD IN

6
ESCROW OR TRUST.

7
(3) (2) The commission shall retain a copy of all granted

8
licenses and make all information contained in the licenses

9
available to the public.

10
(4) (3) Each provider granted a license shall retain a

11
copy of the license at its principal place of business and make

12
the license available for review to the public.

13
(5) AFTER GRANTING A LICENSE, THE COMMISSION SHALL ANNUALLY

14
REVIEW WHETHER THE LICENSEE CONTINUES TO POSSESS THE RESOURCES

15
AND ABILITIES SPECIFIED IN SUBSECTION (1)(A) AND IS IN COMPLIANCE

16
WITH THE SCHEDULE REQUIRED UNDER SUBSECTION (1)(B).

17
(6) THE COMMISSION SHALL SUSPEND OR REVOKE THE LICENSE OF

18
ANY PROVIDER IF, AFTER NOTICE AND A HEARING, IT FINDS THAT THE

19
PROVIDER DOES NOT MEET THE REQUIREMENTS OF THIS SECTION.

20
SEC. 303A. (1) EACH PROVIDER OF TELECOMMUNICATION SERVICES

21
SHALL ANNUALLY SUBMIT TO THE COMMISSION A REPORT CONTAINING ALL

22
OF THE FOLLOWING:

23
(A) A DESCRIPTION OF ALL OF THE PROVIDER'S REGULATED BUSI-

24
NESS CONDUCTED IN THIS STATE IN THE PREVIOUS YEAR.

25
(B) A DESCRIPTION OF THE INVESTMENTS AND CAPITAL EXPENDI-

26
TURES THAT THE PROVIDER HAS MADE IN THIS STATE IN THE PREVIOUS

27
YEAR IN CONNECTION WITH ITS REGULATED BUSINESS.

03025'99 *
17

1
(C) THE NUMBER OF CUSTOMERS OF THE PROVIDER, AS OF THE END

2
DATE OF THE REPORTING PERIOD, FOR EACH LINE OF REGULATED BUSINESS

3
IN WHICH THE PROVIDER ENGAGED IN THIS STATE.

4
(D) THE PROVIDER'S TOTAL REVENUES DERIVED FROM ITS REGULATED

5
BUSINESS IN THIS STATE IN THE PREVIOUS YEAR.

6
(2) A PROVIDER MAY SATISFY THIS SECTION BY SUBMITTING TO THE

7
COMMISSION A COPY OF A DOCUMENT THAT IT SUBMITS TO AN AGENCY OF

8
THE FEDERAL OR STATE GOVERNMENT IF IT SUBSTANTIALLY COMPLIES WITH

9
THIS SECTION.

10
(3) THE INFORMATION PROVIDED UNDER THIS SECTION MAY BE PRO-

11
TECTED FROM DISCLOSURE UNDER SECTION 210.

12
Sec. 310. (1) Except as provided by this act, the commis-

13
sion shall not review or set the rates for toll access services.

14
(2) A provider of toll access services shall set the rates

15
for toll access services. Access service rates and charges set

16
by a provider that exceed the rates allowed for the same inter-

17
state services by the federal government are not just and

18
reasonable. Providers may agree to a rate that is less than the

19
rate allowed by the federal government. If the providers cannot

20
agree on a rate, a provider may apply to the commission under

21
section 204.

22
(3) Two or more providers that each have less than 250,000

23
access lines may agree to joint toll access service rates and

24
pooling of intrastate toll access service revenues.

25
(4) A provider of toll access services shall make available

26
for intrastate access services any technical interconnection

03025'99 *
18

1
arrangements, including colocation required by the federal

2
government for the identical interstate access services.

3
(5) A provider of toll access service, whether under tariff

4
or contract, shall offer the services under the same rates, terms

5
and conditions, without unreasonable discrimination, to all

6
providers. All pricing of special toll access services and

7
switched access services, including volume discounts, shall be

8
offered to all providers under the same rates, terms, and

9
conditions. Until allowed by the federal communications commis-

10
sion, volume discounts on switched access are prohibited under

11
this subsection.

12
(6) If a toll access service rate is reduced, under section

13
304a, then the provider receiving the reduced rate shall reduce

14
its rate to its customers by an equal amount. THE COMMISSION

15
SHALL INVESTIGATE AND ENSURE THAT THE PROVIDER HAS COMPLIED WITH

16
THIS SUBSECTION.

17
Sec. 312. (1) Except as provided by this act, the commis-

18
sion shall not review or set the rates for toll service.

19
(2) A provider of toll service may charge the same rate for

20
the service on its routes of similar distance.

21
(3) The commission shall require that toll service is uni-

22
versally available to all persons within the state.

23
(4) Adjacent ALL PROVIDERS OF TOLL SERVICE SHALL MAKE

24
AVAILABLE TO THEIR CUSTOMERS ADJACENT exchange toll calling plans

25
as ordered by the commission on June 19, 1991. THE PLANS shall

26
remain in effect under this act until altered by order of the

27
commission. A provider of toll service shall implement an

03025'99 *
19

1
optional discount plan for calling to exchanges within 20 miles

2
of a customer's home exchange. The plan shall not violate the

3
conditions delineated in the commission's order in case number

4
U-9153, dated September 26, 1989. A PROVIDER MAY RECOVER FROM

5
ITS CUSTOMERS THE COSTS OF COMPLYING WITH THIS SUBSECTION.

6
(5) A PROVIDER SHALL NOT CHARGE A MANDATORY MINIMUM MONTHLY

7
OR MANDATORY FLAT-RATE CHARGE FOR INTRALATA OR INTERLATA TOLL

8
CALLS EXCEPT IN CONJUNCTION WITH THE OFFERING OF AN OPTIONAL DIS-

9
COUNT TOLL CALLING PLAN.

10
SEC. 313A. (1) THE PROLIFERATION OF CHARGES FOR SEPARATE

11
SERVICES, PRODUCTS, SURCHARGES, FEES, AND TAXES ON A BILL FOR

12
TELECOMMUNICATIONS PRODUCTS OR SERVICES HAS INCREASED THE COM-

13
PLEXITY OF THOSE BILLS TO SUCH AN EXTENT THAT THE BILLS HAVE

14
BECOME DIFFICULT FOR CUSTOMERS TO UNDERSTAND.

15
(2) A BILL FROM A PROVIDER OF BASIC LOCAL EXCHANGE SERVICE

16
SHALL BE SIMPLIFIED INTO GENERAL CATEGORIES TO PROVIDE CUSTOMERS

17
SUFFICIENT INFORMATION ABOUT THE CHARGES TO UNDERSTAND THE BASIS

18
AND SOURCE OF THE CHARGES.

19
(3) THE MONTHLY BILL FROM A PROVIDER OF BASIC LOCAL EXCHANGE

20
SERVICE SHALL INCLUDE AN AGGREGATE CHARGE FOR EACH OF THE FOLLOW-

21
ING CATEGORIES:

22
(A) BASIC LOCAL SERVICE CHARGES AND FEES, WHICH INCLUDES

23
CARRIER'S CHARGES FOR BASIC LOCAL EXCHANGE SERVICE AND RELATED

24
FEES, ASSESSMENTS, AND SURCHARGES.

25
(B) OPTIONAL SERVICES.

26
(C) ALL TAXES, WHICH INCLUDES ANY TAXES APPLICABLE TO THE

27
CHARGES DESCRIBED IN SUBDIVISIONS (A) AND (B).

03025'99 *
20

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

2
basic local exchange TELECOMMUNICATION service to provide a

3
text telephone-telecommunications device for the deaf at costs to

4
each individual who is certified as deaf or severely hearing- or

5
speech-impaired by a licensed physician, audiologist, or quali-

6
fied state agency, and to each public safety answering point as

7
defined in section 102 of the emergency telephone service ena-

8
bling act, Act No. 32 of the Public Acts of 1986, being section

9
484.1102 of the Michigan Compiled Laws 1986 PA 32, MCL

10
484.1102. THE COMMISSION SHALL COORDINATE THE PROVISION OF

11
DEVICES UNDER THIS SUBSECTION TO ENSURE THAT EACH ELIGIBLE PERSON

12
AND PUBLIC SAFETY ANSWERING POINT IS PROVIDED WITH 1 DEVICE. THE

13
COMMISSION SHALL ASSESS THE COSTS INCURRED UNDER THIS SUBSECTION

14
TO ALL PROVIDERS IN THIS STATE ON A PRO RATA BASIS. ALL COSTS OF

15
COMPLYING WITH THIS SECTION INCURRED BY ANY PROVIDER SHALL BE

16
SHARED BY ALL PROVIDERS AND MAY BE RECOVERED FROM THE CUSTOMERS

17
OF ALL PROVIDERS ON A PRO RATA, COMPETITIVELY NEUTRAL BASIS.

18
(2) The commission shall require each provider of basic

19
local exchange service to provide a telecommunication relay serv-

20
ice whereby persons using a text telephone-telecommunications

21
device for the deaf can communicate with persons using a voice

22
telephone through the use of third party intervention or auto-

23
mated translation. Each provider of basic local exchange service

24
shall determine whether to provide a telecommunication relay

25
service on its own, jointly with other basic local exchange pro-

26
viders, or by contract with other telecommunication providers.

27
The commission shall determine the technical standards and

03025'99 *
21

1
essential features of text telephone and telecommunication relay

2
service to ensure their compatibility and reliability.

3
(3) The commission shall appoint a 3-person advisory board

4
consisting of a representative of the deaf community, the commis-

5
sion staff, and providers of basic local exchange service to

6
assist in administering this section. The advisory board shall

7
hold meetings, open to the public, at least once each 3 months,

8
shall periodically seek input on the administration of this sec-

9 tion from members of the deaf, hearing, or speech impaired commu-

10
nity, and shall report to the commission at least annually. The

11
advisory board shall investigate and make recommendations on the

12
feasibility of hiring a reasonably prudent number of people from

13
the deaf or hearing impaired and speech impaired community to

14
work in the provision of telecommunication relay service.

15
(4) Rates and charges for calls placed through a telecommun-

16
ication relay service shall not exceed the rates and charges for

17
calls placed directly from the same originating location to the

18
same terminating location. Unless ordered by the commission, a

19
provider of a telecommunications relay service shall not be

20
required to handle calls from public telephones except for calls

21
charged collect, cash, to a credit card, or third party number.

22
(5) Notwithstanding any other provision of this act, a pro-

23
vider may offer discounts on toll calls where a text

24
telephone-telecommunications device for the deaf is used. The

25
commission shall not prohibit such discounts on toll calls placed

26
through a telecommunication relay service.

03025'99 *
22

1
(6) The commission shall establish a rate for each

2
subscriber line of a provider to allow the provider to recover

3
costs incurred under this section and may waive the costs

4
assessed under this section to individuals who are deaf or

5
severely hearing impaired or speech impaired.

6
Sec. 316. (1) The commission shall require each provider of

7
residential basic local exchange service to offer certain low

8
income customers the availability of basic local exchange service

9
and access service at reduced rates as described in subsections

10
(2) and (3).

11
(2) Except as provided under subsections (3) and (4), the

12
rate reductions for low income customers shall be at a minimum,

13
20% of the basic local exchange rate or $8.25, which shall be

14
inclusive of any federal contribution, whichever is greater.

15
(3) If the low income customer is 65 years of age or more,

16
the rate reduction shall be at a minimum, 25% of the basic local

17
exchange rate or $8.25, which shall be inclusive of any federal

18
contribution, whichever is greater.

19
(4) The total reduction under subsection (2) or (3) shall

20
not exceed 100% 200% of all end-user common line charges and

21
the basic local exchange rate.

22
(5) EACH PROVIDER OF BASIC LOCAL EXCHANGE SERVICE SHALL FILE

23
WITH THE COMMISSION, NO LATER THAN APRIL 1, 2001, A PLAN TO

24
IMPLEMENT THE REQUIREMENTS OF THIS SECTION BY OCTOBER 1, 2001,

25
WHICH SHALL CONTAIN ALL OF THE FOLLOWING COMMITMENTS:

26
(A) THAT THE PROVIDER WILL OFFER PAYMENT ARRANGEMENTS TO

27
ELIGIBLE CUSTOMERS WITH PAST-DUE BILLS, WITH INITIAL PAYMENTS NOT

03025'99 *
23

1
TO EXCEED $25.00 AND THE BALANCE TO BE PAID IN 6 EQUAL MONTHLY

2
PAYMENTS.

3
(B) THAT THE PROVIDER WILL NOT REQUIRE CUSTOMERS ENROLLED IN

4
PLANS REQUIRED UNDER THIS SECTION TO PAY A DEPOSIT FOR BASIC

5
LOCAL EXCHANGE SERVICE. A PROVIDER MAY REQUEST A DEPOSIT UNLESS

6
THE CUSTOMER ELECTS TOLL RESTRICTION SERVICE.

7
(C) THAT THE PROVIDER WILL PROVIDE CUSTOMERS WHO MAY BE ELI-

8
GIBLE FOR SERVICE UNDER THIS SECTION WITH A WRITTEN FORM THAT

9
WILL PERMIT CUSTOMERS TO VERIFY THEIR ELIGIBILITY, SUBJECT TO

10
AUDIT BY THE PROVIDER. THE FORMS SHALL BE MADE AVAILABLE AT THE

11
OFFICES OF APPROPRIATE STATE AGENCIES AS IDENTIFIED BY THE COM-

12
MISSION, IN QUANTITIES SUFFICIENT TO SUPPLY THEM TO ALL POTEN-

13
TIALLY ELIGIBLE PERSONS.

14
(D) THAT THE PROVIDER WILL NEGOTIATE IN GOOD FAITH WITH

15
APPROPRIATE STATE AGENCIES TO ACQUIRE ON-LINE ACCESS TO THE

16
AGENCIES' ELECTRONIC DATABASES FOR THE PURPOSE OF ACCESSING THE

17
INFORMATION NECESSARY TO VERIFY A CUSTOMER'S ELIGIBILITY FOR

18
SERVICE UNDER THIS SECTION. WHERE THE PROVIDER HAS SECURED THE

19
NECESSARY ACCESS, IT SHALL OFFER CUSTOMERS ON-LINE VERIFICATION

20
OF ELIGIBILITY.

21
(E) THAT THE PROVIDER WILL MAKE APPROPRIATE PROMOTIONAL

22
EFFORTS TO MAKE POTENTIALLY ELIGIBLE CUSTOMERS AWARE OF THE PRO-

23
GRAMS PROVIDED UNDER THIS SECTION.

24
(F) THAT THE PROVIDER WILL PROVIDE A TOLL-FREE TELEPHONE

25
NUMBER ALLOWING CUSTOMERS TO SUBSCRIBE TO, OR ACCESS INFORMATION

26
ABOUT, THE PROGRAMS PROVIDED UNDER THIS SECTION.

03025'99 *
24

1
(G) THAT THE PROVIDER WILL PROVIDE A TOLL-FREE FAX LINE

2
ALLOWING CUSTOMERS TO SUBMIT DOCUMENTATION ASSOCIATED WITH THE

3
PROGRAMS PROVIDED UNDER THIS SECTION.

4
(H) IF THE PROVIDER UTILIZES A VOICE RESPONSE UNIT TO ANSWER

5
CUSTOMER CALLS, THAT IT WILL INCLUDE INFORMATION ABOUT THE PRO-

6
GRAMS PROVIDED UNDER THIS SECTION ON THE VOICE RESPONSE UNIT MENU

7
AFTER THE CUSTOMER INDICATES AN INTEREST IN OBTAINING NEW

8
SERVICE.

9
(6) (5) To qualify for the reduced rate under this sec-

10
tion, the person's annual income shall not exceed 150% of the

11
federal poverty income standards as determined by the United

12
States office of management and budget and as approved by the

13
state treasurer.

14
(7) (6) The commission shall establish a rate for each

15
subscriber line of a provider to allow the provider to recover

16
costs incurred under this section.

17
(8) (7) The commission shall take necessary action to

18
notify the general public of the availability of lifeline serv-

19
ices including, but not limited to, public service announcements,

20
newspaper notices, and such other notice reasonably calculated to

21
reach those who may benefit from the services.

22
(9) ALL COSTS OF COMPLYING WITH THIS SECTION INCURRED BY ANY

23
PROVIDER SHALL BE SHARED BY ALL PROVIDERS AND MAY BE RECOVERED

24
FROM THE CUSTOMERS OF ALL PROVIDERS ON A PRO RATA, COMPETITIVELY

25
NEUTRAL BASIS.

03025'99 *
25

1
Sec. 317. (1) The commission shall adopt operating

2
requirements for operator service providers. The requirements

3
shall include the following:

4
(a) That an OSP shall furnish each entity with which the OSP

5
contracts to provide operator service a sticker, card, or other

6
form of information for each telephone that has access to the

7
operator service. The information shall include the name of the

8
operator service provider, a toll-free customer service telephone

9
number, and a statement that charges imposed by the operator

10
service provider may be obtained by calling the toll-free tele-

11
phone number. The operator service provider shall require by

12
contract that the entity receiving the information display the

13
information on or near each of the telephones that has access to

14
the service.

15
(b) Prior to the connection of each call, the operator serv-

16
ice provider shall do all of the following:

17
(i) Announce the operator service provider's name.

18
(ii) Quote, at the caller's request and without charge, the

19
rate and any other fees or surcharges applicable to the call

20
charged by the operator service provider.

21
(c) Allow a caller to choose the carrier of his or her

22
choice by doing either of the following:

23
(i) After informing the caller that the rates for the call

24
may not reflect the rates for a call from the location of the

25
caller and receiving the caller's consent, transfer the caller to

26
the carrier of his or her choice without charge.

03025'99 *
26

1
(ii) Instruct the caller how to reach his or her carrier of

2
choice by dialing the carrier's 950, 1-800, or 10-XXX access

3
service method.

4
(d) Allow callers to the operator service provider to reach

5
emergency services without charge.

6
(2) An operator service provider shall not provide operator

7
services in this state without first registering with the

8
commission. The registration shall include the following

9
information:

10
(a) The name of the provider.

11
(b) The address of the provider's principal office.

12
(c) If the provider is not located in this state, the

13
address of the registered office and the name of the registered

14
agent authorized to receive service of process in this state.

15
(d) Any other information that the commission may require.

16
(3) The registration shall be accompanied with a registra-

17
tion fee of $100.00.

18
(4) The registration is effective immediately upon filing

19
with the commission and the payment of the registration fee and

20
shall remain in effect for 1 year from its effective date.

21
(5) A registration may be renewed for 1 year by filing with

22
the commission a renewal registration on a form provided by the

23
commission and the payment of a renewal fee of $100.00.

24
(6) Except as otherwise authorized by the commission, a pro-

25
vider under this section shall not charge a rate for operator

26
services or toll service that is greater than 300% of the state

03025'99 *
27

1
average rate for operator or toll service by providers of

2
regulated toll service.

3
(7) A provider shall not discontinue basic local exchange

4
service for failure by a person to pay an OSP charge.

5
(8) In addition to any other penalty under this act, a

6
person who is charged for the use of an operator service provider

7
or is denied access to emergency services in violation of this

8
section may bring a civil action against the OSP to recover

9
actual damages or $250.00 $10,000.00, whichever is greater,

10
plus all reasonable attorney fees.

11
Sec. 351. Until January 1, 2000 and except for section

12
361, this article does not apply to providers who, together with

13
any affiliated providers, provide basic local exchange service or

14
basic local exchange and toll service to less than 250,000

15
end-users in this state on January 1, 1996. NOTWITHSTANDING ANY

16
PROVISION OF THIS ACT, THE COMMISSION SHALL NOT ADOPT ANY RULE OR

17
ORDER THAT WOULD PRESCRIBE FOR ANY BASIC LOCAL EXCHANGE SERVICE

18
PROVIDER ANY RULE REGARDING INTERCONNECTION, UNBUNDLING, OR

19
RESALE, ANY COST ALLOCATION RULE, OR ANY STRUCTURAL SEPARATION

20
RULE THAT IS MORE BURDENSOME THAN FEDERAL LAW OR APPLICABLE RULES

21
OR ORDERS OF THE FEDERAL GOVERNMENT.

22
Sec. 401. (1) Except as otherwise provided by law or pre-

23
empted by federal law, the commission shall not have authority

24
over enhanced services, paging, cellular, mobile, and answering

25
services, video, cable service, pay-per-view, shared tenant, pri-

26
vate networks, financial services networks, radio and television,

27
WATS, personal communication networks, municipally owned

03025'99 *
28

1
telecommunication system, 800 prefix services, burglar and fire

2
alarm services, energy management services, except for state

3
institutions of higher education, the reselling of centrex or

4
its equivalent, payphone services, and the reselling of an unli-

5
censed telecommunication service. The foregoing services shall

6
not be considered part of basic local exchange service.

7
(2) Except as otherwise provided by this act, the commission

8
shall not have the authority over a telecommunication service not

9
specifically provided for in this act.

10
SEC. 504A. (1) A PROVIDER SHALL NOT PROVIDE A TELECOMMUNI-

11
CATIONS SERVICE IN THIS STATE UNTIL IT HAS FILED A REGISTRATION

12
WITH THE COMMISSION AND HAD THE REGISTRATION APPROVED BY THE

13
COMMISSION. THE REGISTRATION SHALL INCLUDE ALL OF THE

14
FOLLOWING:

15
(A) THE PROVIDER'S BUSINESS ADDRESS AND TELEPHONE NUMBER.

16
(B) THE NAMES, TITLES, ADDRESSES, AND TELEPHONE NUMBERS OF

17
ALL OFFICERS, DIRECTORS, AND OTHER PRINCIPALS.

18
(C) THE NAME, TITLE, LOCATION, MAILING ADDRESS, AND TELE-

19
PHONE NUMBER OF A MINIMUM OF 1 AGENT AUTHORIZED TO RECEIVE SERV-

20
ICE OF PROCESS ON BEHALF OF THE PROVIDER.

21
(D) A STATEMENT OF THE PROVIDER'S FINANCIAL VIABILITY.

22
(E) ALL OTHER INFORMATION AS THE COMMISSION MAY REASONABLY

23
REQUIRE.

24
(2) A REGISTRATION STATEMENT FILED UNDER THIS SECTION SHALL

25
BE CONSIDERED APPROVED BY THE COMMISSION 30 DAYS AFTER FILING,

26
UNLESS THE COMMISSION ENTERS AN ORDER REJECTING OR SUSPENDING THE

27
REGISTRATION.

03025'99 *
29

1
(3) AFTER NOTICE AND HEARING, THE COMMISSION MAY REVOKE OR

2
SUSPEND THE AUTHORIZATION OF ANY PROVIDER TO PROVIDE SERVICE UPON

3
ANY OF THE FOLLOWING:

4
(A) THE PROVIDER FAILS TO FILE OR UPDATE ITS REGISTRATION

5
WITHIN A REASONABLE TIME PERIOD.

6
(B) THE PROVIDER PROVIDES FALSE OR INCOMPLETE INFORMATION IN

7
A REGISTRATION STATEMENT FILED UNDER THIS SECTION.

8
(4) THE COMMISSION MAY REQUIRE THE PROVIDER TO POST A BOND

9
TO ENSURE COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION.

10
Sec. 505. (1) An end user of a telecommunications provider

11
shall not be switched to another provider without the authoriza-

12
tion of the end user.

13
(2) A PROVIDER THAT RESELLS SERVICES THAT UTILIZE THE FACIL-

14
ITIES OR SERVICES OF OTHER PROVIDERS SHALL BE LIABLE FOR AN UNAU-

15
THORIZED SWITCH OF AN END USER'S PROVIDER THAT IT INITIATES OR IN

16
WHICH IT PARTICIPATES. UNLESS IT IS SHOWN BY CLEAR AND CONVINC-

17
ING EVIDENCE TO HAVE HAD SPECIFIC, ADVANCE KNOWLEDGE THAT AN

18
UNAUTHORIZED CHANGE OF AN END USER'S PROVIDER WOULD TAKE PLACE, A

19
PROVIDER WHOSE FACILITIES OR SERVICES ARE UTILIZED OR RESOLD BY A

20
RESELLER OF TELECOMMUNICATIONS SERVICES SHALL NOT BE LIABLE FOR

21
AN UNAUTHORIZED PROVIDER CHANGE INITIATED BY THE RESELLER.

22
(3) (2) The commission shall issue orders to ensure that

23
an end user of a telecommunications provider is not switched to

24
another provider without the end user's oral authorization, writ-

25
ten confirmation, confirmation through an independent third

26
party, or other verification procedures subject to commission

27
approval, confirming the end user's intent to make a switch and

03025'99 *
30

1
that the end user has approved the specific details of the

2
switch. The order issued under this section shall require that

3
all providers comply with the regulations established by the fed-

4
eral communications commission on verification procedures for the

5
switching of an end user's telecommunications provider.

6
(4) (3) As used in this section and section 506:

7
(a) "End user" means the retail subscriber of a telecommuni-

8
cations service.

9
(b) "Telecommunications provider" or "provider" means a

10
person that provides 1 or more telecommunications services for

11
compensation. Telecommunications provider does not include a

12
provider of commercial mobile service as defined in section

13
332(d)(1) or OF part I of title III of the communications act

14
of 1934, chapter 652, 96 Stat. 1096, 47 U.S.C. 332.

15
Sec. 506. (1) Upon the receipt of a complaint filed by a

16
person alleging a violation of section 505, an end user who has

17
been switched to another provider in violation of section 505, or

18
a provider who has been removed as an end user's provider without

19
the end user's authorization, or upon the commission's own

20
motion, the commission may conduct a contested case as provided

21
under section 203 SHALL CONDUCT AN INFORMAL HEARING ON THE

22
COMPLAINT. THE COMMISSION SHALL CREATE, AND SHALL SUPPLY UPON

23
REQUEST, A FORM AFFIDAVIT DESIGNED TO ENABLE AN END USER TO PRO-

24
VIDE ALL INFORMATION NECESSARY TO PROMOTE EFFICIENT RESOLUTION OF

25
COMPLAINTS ALLEGING A VIOLATION OF SECTION 505. HEARINGS CON-

26
DUCTED UNDER THIS SECTION SHALL COMPLY WITH THE FOLLOWING

27
REQUIREMENTS:

03025'99 *
31

1
(A) HEARINGS SHALL BE CONDUCTED IN A MANNER AS TO OPTIMIZE

2
EXPEDIENCY, CONVENIENCE, AND THE ABILITY OF END USERS TO BRING

3
AND PROSECUTE, WITHOUT THE ASSISTANCE OF COUNSEL, COMPLAINTS

4
ALLEGING VIOLATIONS OF SECTION 505, WHILE PRESERVING THE RIGHTS

5
OF THE PARTIES.

6
(B) IF POSSIBLE, THE COMMISSION SHALL HOLD THE HEARING AT A

7
LOCATION NEAR THE END USER'S RESIDENCE OR PLACE OF BUSINESS.

8
(C) IF THE COMPLAINANT HAS SUBMITTED AN AFFIDAVIT, ON THE

9
FORM SUPPLIED BY THE COMMISSION OR OTHERWISE, ALLEGING FACTS SUF-

10
FICIENT TO SUPPORT A FINDING OF A VIOLATION OF SECTION 505, THE

11
RESPONDENT SHALL HAVE THE BURDEN OF PROVING THAT NO VIOLATION HAS

12
OCCURRED.

13
(2) If the commission finds that a person has violated

14
section 505 or an order issued under section 505, the commission

15
shall order remedies and penalties to protect and make whole end

16
users and other persons who have suffered damages as a result of

17
the violation, including, but not limited to, 1 or more of the

18
following:

19
(a) Order the person to pay a fine for the first offense of

20
not less than $10,000.00 or more than $20,000.00. For a second

21
and any subsequent offense, the commission shall order the person

22
to pay a fine of not less than $25,000.00 or more than

23
$40,000.00. If the commission finds that the second or any of

24
the subsequent offenses were knowingly made in violation of

25
section 505, the commission shall order the person to pay a fine

26
of not more than $50,000.00. Each switch made in violation of

27
section 505 shall be a separate offense under this subdivision.

03025'99 *
32

1
(b) Order an unauthorized provider to refund to the end user

2
any amount greater than the end user would have paid to an autho-

3
rized provider.

4
(c) Order an unauthorized provider to reimburse an autho-

5
rized provider an amount equal to the amount paid by the end user

6
that should have been paid to the authorized provider.

7
(d) If the person is licensed under this act, revoke the

8
license if the commission finds a pattern of violations of

9
section 505.

10
(e) Issue cease and desist orders.

11
(3) Notwithstanding subsection (2), a fine shall not be

12
imposed for a violation of section 505 if the provider has other-

13
wise fully complied with section 505 and shows that the violation

14
was an unintentional and bona fide error notwithstanding the

15
maintenance of procedures reasonably adopted to avoid the error.

16
Examples of a bona fide error include clerical, calculation, com-

17
puter malfunction, programming, or printing errors. An error in

18
legal judgment with respect to a person's obligations under

19
section 505 is not a bona fide error. The burden of proving that

20
a violation was an unintentional and bona fide error is on the

21
provider.

22
(4) If the commission finds that a party's complaint or

23
defense filed under this section is frivolous, the commission

24
shall award to the prevailing party costs, including reasonable

25
attorney fees, against the nonprevailing party and their

26
attorney.

03025'99 *
33

1
Sec. 604. (1) This act is repealed effective January 1,

2
2001 2006.

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, is

14
repealed.

15
(4) SECTIONS 312A, 352, 353, 354, 355, 356, 357, 358, 359,

16
360, 361, 362, AND 363 OF THE MICHIGAN TELECOMMUNICATIONS ACT,

17
1991 PA 179, MCL 484.2312A, 484.2352, 484.2353, 484.2354,

18
484.2355, 484.2356, 484.2357, 484.2358, 484.2359, 484.2360,

19
484.2361, 484.2362, AND 484.2363, ARE REPEALED.

03025'99 * Final page. SAT