SENATE BILL No. 1193

March 30, 2000, Introduced by Senators DUNASKISS and YOUNG and referred to the

Committee on Technology and Energy.

A bill to ensure the availability of certain communication

services; to prescribe the powers and duties of certain state

agencies and officials; to prescribe penalties; and to repeal

certain acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

2 "Michigan communication act of 2000".

3 Sec. 102. As used in this act:

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

5 work for the purpose of enabling a communication provider to

6 originate or terminate communication services within the local

7 exchange. Except for end-user common line services, access serv-

8 ice does not include access service to a person who is not a

9 provider.

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

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

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

4 interactive switched voice or data communication.

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

6 sion in the department of consumer and industry services.

7 (d) "Communication provider" or "provider" means a person or

8 an affiliate of the person each of which provides 1 or more com-

9 munication services.

10 (e) "Communication services" or "services" includes all

11 services offered to persons in this state for the transmission of

12 2-way interactive communication and associated usage utilizing

13 any medium or technology, including, but not limited to, telecom-

14 munication, cable modem, cellular, wireless, and computer. A

15 communication service is not a public utility service.

16 (f) "Exchange" means 1 or more contiguous central offices

17 and all associated facilities within a geographical area in which

18 local exchange communication services are offered by a provider.

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

20 communication services user connects into the local exchange.

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

22 including all necessary and attendant charges, imposed for basic

23 local exchange service to customers.

24 (i) "Person" means an individual, corporation, partnership,

25 association, governmental entity, or any other legal entity.

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1 (j) "Residential customer" means a person to whom

2 communication services are furnished predominantly for personal

3 or domestic purposes at the person's dwelling.

4 (k) "Telecommunications act of 1996" means Public Law

5 104-104, 110 Stat. 56.

6 (l) "Toll service" means the transmission of 2-way interac-

7 tive switched communication between local calling areas. Toll

8 service does not include individually negotiated contracts for

9 similar communication services or wide area communications

10 service.

11 Sec. 201. (1) The Michigan public service commission shall

12 have the jurisdiction and authority to administer this act.

13 (2) The commission shall issue orders and promulgate rules

14 to implement the requirement of the telecommunications act of

15 1996, and the rules and regulations of the federal communications

16 commission issued under that act.

17 (3) The commission does not have authority or jurisdiction

18 to adopt or impose requirements that exceed or differ from the

19 requirement of the telecommunications act of 1996, and the rules

20 and regulations of the federal communications commission involv-

21 ing services included under this act.

22 Sec. 301. (1) An end user of a communication provider shall

23 not be switched to another provider without the authorization of

24 the end user.

25 (2) The commission shall issue orders to ensure that an end

26 user of a communication provider is not switched to another

27 provider without the end user's oral authorization, written

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1 confirmation, confirmation through an independent third party, or

2 other verification procedures subject to commission approval,

3 confirming the end user's intent to make a switch and that the

4 end user has approved the specific details of the switch. The

5 order issued under this section shall require that all communica-

6 tion providers comply with the regulations established by the

7 federal communications commission on verification procedures for

8 the switching of an end user's communications provider.

9 (3) Upon the receipt of a complaint filed by a person alleg-

10 ing a violation of this section, an end user who has been

11 switched to another provider in violation of this section, or a

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

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

14 motion, the commission may conduct a contested case under the

15 administrative procedures act of 1969, MCL 24.201 to 24.328.

16 (4) If the commission finds that a person has violated this

17 section or an order issued under this section, the commission

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

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

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

21 following:

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

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

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

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

26 $40,000.00. If the commission finds that the second or any of

27 the subsequent offenses were knowingly made in violation of this

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1 section, the commission shall order the person to pay a fine of

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

3 section shall be a separate offense under this subdivision.

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

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

6 rized provider.

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

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

9 that should have been paid to the authorized provider.

10 (d) If the person is licensed to do business in this state,

11 revoke the license if the commission finds a pattern of viola-

12 tions of this section.

13 (e) Issue cease and desist orders.

14 (5) Notwithstanding subsection (4), a fine shall not be

15 imposed for a violation of this section if the provider has oth-

16 erwise fully complied with this section and shows that the viola-

17 tion was an unintentional and bona fide error notwithstanding the

18 maintenance of procedures reasonably adopted to avoid the error.

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

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

21 legal judgment with respect to a person's obligations under this

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

23 violation was an unintentional and bona fide error is on the

24 provider.

25 (6) If the commission finds that a party's complaint or

26 defense filed under this section is frivolous, the commission

27 shall award to the prevailing party costs, including reasonable

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1 attorney fees, against the nonprevailing party and their

2 attorney.

3 (7) As used in this section, "end user" means a retail cus-

4 tomer of a communication service.

5 Sec. 302. (1) The commission shall require each communica-

6 tion provider of basic local exchange service to provide a text

7 telephone-telecommunications device for the deaf at costs to each

8 individual who is certified as deaf or severely hearing- or

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

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

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

12 bling act, 1986 PA 32, MCL 484.1102.

13 (2) The commission shall require each communication provider

14 of basic local exchange service to provide a telecommunication

15 relay service whereby persons using a text

16 telephone-telecommunications device for the deaf can communicate

17 with persons using a voice telephone through the use of third

18 party intervention or automated translation. Each communication

19 provider of basic local exchange service shall determine whether

20 to provide a telecommunication relay service on its own, jointly

21 with other basic local exchange providers, or by contract with

22 other communication providers. The commission shall determine

23 the technical standards and essential features of text telephone

24 and telecommunication relay service to ensure their compatibility

25 and reliability.

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

27 consisting of a representative of the deaf community, the

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1 commission staff, and communication providers of basic local

2 exchange service to assist in administering this section. The

3 advisory board shall hold meetings, open to the public, at least

4 once each 3 months, shall periodically seek input on the adminis-

5 tration of this section from members of the deaf, hearing, or

6 speech impaired community, and shall report to the commission at

7 least annually. The advisory board shall investigate and make

8 recommendations on the feasibility of hiring a reasonably prudent

9 number of people from the deaf or hearing impaired and speech

10 impaired community to work in the provision of telecommunication

11 relay service.

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

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

14 calls placed directly from the same originating location to the

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

16 communication provider of a telecommunications relay service

17 shall not be required to handle calls from public telephones

18 except for calls charged collect, cash, to a credit card, or

19 third party number.

20 (5) A communication provider may offer discounts on toll

21 calls where a text telephone-telecommunications device for the

22 deaf is used. The commission shall not prohibit such discounts

23 on toll calls placed through a telecommunication relay service.

24 (6) The commission shall establish a rate for each sub-

25 scriber line of a communication provider to allow the communica-

26 tion provider to recover costs incurred under this section and

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1 may waive the costs assessed under this section to individuals

2 who are deaf or severely hearing impaired or speech impaired.

3 Sec. 303. (1) The commission shall require each communica-

4 tion provider of residential basic local exchange service to

5 offer certain low income customers the availability of basic

6 local exchange service and access service at reduced rates as

7 described in subsections (2) and (3).

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

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

10 20% of the basic local exchange rate or $8.25, which shall be

11 inclusive of any federal contribution, whichever is greater.

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

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

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

15 contribution, whichever is greater.

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

17 not exceed 100% of all end-user common line charges and the basic

18 local exchange rate.

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

20 person's annual income shall not exceed 150% of the federal pov-

21 erty income standards as determined by the United States office

22 of management and budget and as approved by the state treasurer.

23 (6) The commission shall establish a rate for each sub-

24 scriber line of a communication provider to allow the communica-

25 tion provider to recover costs incurred under this section.

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

27 general public of the availability of lifeline services

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1 including, but not limited to, public service announcements,

2 newspaper notices, and such other notice reasonably calculated to

3 reach those who may benefit from the services.

4 Enacting section 1. This act takes effect January 1, 2001.

5 Enacting section 2. This act is repealed effective December

6 31, 2002.

7 Enacting section 3. The Michigan telecommunications act,

8 1991 PA 179, MCL 484.2101 to 484.2604, is repealed.

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