HB-5237, As Passed House, October 20, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5237

 

 

                      (As amended October 20, 2005)

 

 

 

 

 

 

 

 

 

     [A bill to amend 1991 PA 179, entitled

 

"Michigan telecommunications act,"

 

by amending sections 101, 102, 103, 201, 202, 203, 203a, 204, 205,

 

210, 213, 214, 301, 302, 303, 304, 305, 306, 307, 309, 309a, 310,

 

312, 314a, 315, 316, 316a, 317, 321, 352, 353, 355, 357, 358, 359, 401,

 

502, 505, and 604 (MCL 484.2101, 484.2102, 484.2103, 484.2201,

 

484.2202, 484.2203, 484.2203a, 484.2204, 484.2205, 484.2210,

 

484.2213, 484.2214, 484.2301, 484.2302, 484.2303, 484.2304,

 

484.2305, 484.2306, 484.2307, 484.2309, 484.2309a, 484.2310,

 

484.2312, 484.2314a, 484.2315, 484.2316, 484.2316a, 484.2317, 484.2321,

 

484.2352, 484.2353, 484.2355, 484.2357, 484.2358, 484.2359,

 

484.2401, 484.2502, 484.2505, and 484.2604), sections 101, 103,

 

201, 203, 203a, 302, 303, 304, 310, 312, 502, and 604 as amended


House Bill No. 5237 (H-3) as amended October 20, 2005

and sections 214 and 316a as added by 2000 PA 295, section 102 as

 

amended by 1998 PA 41, sections 202, 205, 210, 301, 305, 306, 307,

 

309a, and 401 as amended and sections 317, 321, 352, 353, 355, 357,

 

358, and 359 as added by 1995 PA 216, section 213 as amended by

 

2004 PA 591, section 314a as added by 2003 PA 206, section 316 as amended

 

by 1999 PA 31, and section 505 as added by 1998 PA 260, and by adding

 

sections 211a, 252, 301a, 305a, 305b, 310a, and 353a; and to repeal acts

 

and parts of acts.]

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

"Michigan telecommunications act".

 

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

 

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

 

and affordable basic residential telecommunication service.

 

     (b) Allow and encourage competition to determine the

 

availability, prices, terms, and other conditions of providing

 

telecommunication services.

 

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

 

service and not on the provider. Supplement existing state and

 

federal law regarding antitrust, consumer protection, and fair

 

trade to provide additional safeguards for competition and

 

consumers.

 

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

 

new providers, the development of new technologies, and increase

 

investment in the telecommunication infrastructure in this state

 

through incentives to providers to offer the most efficient

 

services and products.

 

     (e) Improve the opportunities for economic development and the


 

delivery of essential services including education and health care.

 

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

 

for regulated services that will ensure effective rate review and

 

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

 

     (g) Encourage the use of existing educational

 

telecommunication networks and networks established by other

 

commercial providers as building blocks for a cooperative and

 

efficient statewide educational telecommunication system.

 

     (h) Ensure effective and timely review and disposition of

 

disputes between telecommunication providers.

 

     (i) Authorize actions to encourage the development of a

 

competitive telecommunication industry.

 

     Sec. 102. As used in this act:

 

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

 

for the purpose of enabling a provider to originate or terminate

 

telecommunication services within the local exchange. Except for

 

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

 

access service to a person who is not a provider.

 

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

 

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

 

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

 

switched voice or data communication.

 

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

 

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

 

kilobits per second.

 

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

 

subscribers of video programming or other programming services and


 

subscriber interaction for the selection of video programming or

 

other programming services.

 

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

 

commission.

 

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

 

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

 

1969 PA 306, MCL 24.203.

 

     (g)  (f)  "Educational institution" means a public educational

 

institution or a private non-profit educational institution

 

approved by the department of education to provide a program of

 

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

 

nonprofit association or consortium whose primary purpose is

 

education. A nonprofit association or consortium under this

 

subdivision shall consist of 2 or more of the following:

 

     (i) Public educational institutions.

 

     (ii) Nonprofit educational institutions approved by the

 

department of education.

 

     (iii) The state board of education.

 

     (iv) Telecommunication providers.

 

     (v) A nonprofit association of educational institutions or

 

consortium of educational institutions.

 

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

 

telecommunication service.

 

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

 

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

 

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

 

energy use communication.


 

     (j)  (h)  "Exchange" means 1 or more contiguous central

 

offices and all associated facilities within a geographical area in

 

which basic local exchange  telecommunication services are  service

 

is offered by a provider.

 

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

 

the offering of a capability for generating, acquiring, storing,

 

transforming, processing, retrieving, utilizing, or making

 

available information, including energy management services, that

 

is conveyed by telecommunications. Information services or enhanced

 

services do not include the use of such capability for the

 

management, control, or operation of a telecommunications system or

 

the management of a telecommunications service.

 

     (l)  (j)  "Interconnection" means the technical arrangements

 

and other elements necessary to permit the connection between the

 

switched networks of 2 or more providers to enable a

 

telecommunication service originating on the network of 1 provider

 

to terminate on the network of another provider.

 

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

 

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

 

modification of final judgment entered pursuant to a consent decree

 

in United States v American Telephone and Telegraph Co., 552 F.

 

Supp. 131 (D.D.C. 1982), and in the consent decree approved in

 

United States v GTE Corp., 603 F. Supp. 730 (D.D.C. 1984).

 

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

 

in United States v American Telephone and Telegraph Co., 569 F.

 

Supp. 990 (D.D.C. 1983).

 

     (m) "License" means a license issued pursuant to this act.


 

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

 

telecommunication user connects into the local exchange.

 

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

 

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

 

schedules filed with and approved by the commission.

 

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

 

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

 

code.

 

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

 

including all necessary and attendant charges, imposed for basic

 

local exchange service to customers.

 

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

 

interface on a subscriber's premises and the main distribution

 

frame in the servicing central office.

 

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

 

includes automatic or live assistance to a person to arrange for

 

completion and billing of a telephone call originating within this

 

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

 

of the following:

 

     (i) Automatic completion with billing to the telephone from

 

which the call originated.

 

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

 

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

 

established with the provider by the person.

 

     (iii) Completion in association with directory assistance

 

services.

 

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


 

operator service.

 

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

 

public, semipublic, or individually owned and operated telephone

 

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

 

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

 

call is made.

 

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

 

association, governmental entity, or any other legal entity.

 

     (w) "Person with disabilities" means a person who has 1 or

 

more of the following physical characteristics:

 

     (i) Blindness.

 

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

 

stop and rest during any time of the year.

 

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

 

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

 

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

 

aid mobility.

 

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

 

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

 

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

 

mm/hg of room air at rest.

 

     (vi) A cardiovascular disease from which the person measures

 

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

 

which a marked limitation of physical activity causes fatigue,

 

palpitation, dyspnea, or anginal pain.

 

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

 

limited to, severe arthritis or a neurological or orthopedic


 

impairment that creates a severe mobility limitation.

 

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

 

exchange, including dial tone, a telephone number, switching

 

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

 

white pages listing, operator services, and interexchange and

 

intra-LATA toll carriers.

 

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

 

of 1 primary access line to a residential customer for voice

 

communication and shall include all of the following:

 

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

 

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

 

     (iii) Unlimited incoming calls.

 

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

 

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

 

medical, and other first responder services. Public safety system

 

includes the Michigan state police communication system.

 

     (aa)  (y)  "Reasonable rate" or "just and reasonable rate"

 

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

 

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

 

service long run incremental cost of providing the service.

 

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

 

telecommunication services are furnished predominantly for personal

 

or domestic purposes at the person's dwelling.

 

     (cc)  (aa)  "Special access" means the provision of access

 

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

 

network for the purpose of enabling a provider to originate or

 

terminate telecommunication service within the exchange, including


 

the use of local private lines.

 

     (dd)  (bb)  "State institution of higher education" means an

 

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

 

of article VIII of the state constitution of 1963.

 

     (ee) "Telecommunication act of 1996" means Public Law 104-104,

 

110 Stat. 56.

 

     (ff)  (cc)  "Telecommunication provider" or "provider" means a

 

person  or an affiliate of the person each of which  that for

 

compensation provides 1 or more telecommunication services.

 

Telecommunication provider does not include a provider of

 

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

 

communications act of 1934, 47 USC 332.

 

     (gg)  (dd)  "Telecommunication services" or "services"

 

includes regulated and unregulated services offered to customers

 

for the transmission of 2-way interactive communication and

 

associated usage. A telecommunication service is not a public

 

utility service.

 

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

 

interactive switched communication between local calling areas.

 

Toll service does not include individually negotiated contracts for

 

similar telecommunication services or wide area telecommunications

 

service.

 

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

 

given current service demand, including associated costs of every

 

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

 

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

 

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


 

using current least cost technology that would be required if the

 

provider had never offered the service.

 

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

 

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

 

basic network component.

 

     (jj)  (gg)  "Wide area telecommunications service" or "WATS"

 

means the transmission of 2-way interactive switched communication

 

over a dedicated access line.

 

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

 

act shall not be construed to prevent any person from providing

 

telecommunication services in competition with another

 

telecommunication provider.

 

     (2) The commission shall submit an annual report describing

 

the status of competition in telecommunication services in this

 

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

 

service markets in this state. The report required under this

 

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

 

standing committees with oversight of telecommunication issues.

 

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

 

requested by the commission necessary for the preparation of the

 

annual report under this section.

 

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

 

federal law, the Michigan public service commission shall have the

 

jurisdiction and authority to administer this act and all federal

 

telecommunications laws, rules, orders, and regulations that are

 

delegated to the state.

 

     (2) The commission shall exercise its jurisdiction and


 

authority consistent with this act and all federal

 

telecommunications laws, rules, orders, and regulations.

 

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

 

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

 

following:

 

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

 

telecommunication providers of regulated services within the state

 

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

 

the total service long run incremental costs and imputation

 

requirements of this act of providing a service. The commission

 

requirements under this subdivision shall be consistent with any

 

regulations covering the same subject matter made by the federal

 

communications commission.

 

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

 

including access service, make available for public inspection and

 

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

 

services, and conditions of service, including access service

 

provided by contract.

 

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

 

establish and enforce quality standards for providing

 

telecommunication services in this state. to establish and enforce

 

quality standards for all of the following:

 

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

 

     (ii) The provision of unbundled network elements and local

 

interconnection services to providers which are used in the

 

provision of basic local exchange service.

 

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


 

provider of basic local exchange service to another provider.

 

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

 

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

 

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

 

transfer of customers to other providers and the reclaiming of

 

unused telephone numbers.

 

     (d) Preserve the provision of high quality basic local

 

exchange service.

 

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

 

federal universal service fund and the need for the establishment

 

of a state universal service fund to promote and maintain basic

 

local exchange service in high cost rural areas at affordable

 

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

 

governor on or before December 31, 1996 containing its findings and

 

recommendations. The task force shall consist of all of the

 

following members:

 

     (i) The chairperson of the commission.

 

     (ii) One representative from each basic local exchange provider

 

with 250,000 or more access lines.

 

     (iii) Four representatives from providers who, together with

 

affiliated providers, provide basic local exchange or toll service

 

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

 

     (iv) Two representatives of other providers of regulated

 

services.

 

     (v) One representative of the general public.

 

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

 

and report to the legislature and governor on the following matters


 

that have impact on the basic local exchange calling activities of

 

all residential customers in the state:

 

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

 

which are charged as basic local exchange calls.

 

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

 

exchange calling areas.

 

     (iii) The ability of customers to contact emergency services,

 

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

 

government without a toll call.

 

     (iv) Whether there are significant differences in basic local

 

exchange calling patterns between urban, suburban, and rural areas.

 

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

 

if basic local exchange calling areas are altered.

 

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

 

LATA boundaries.

 

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

 

occur if basic local exchange calling areas are expanded within

 

LATA boundaries.

 

     (g) On or before January 1, 1997, conduct a study of internet

 

access provider locations to determine which exchanges can reach

 

the nearest location only by making a toll call. The commission

 

shall then gather input from internet access providers, local

 

exchange providers, and other interested parties and make a

 

recommendation to the legislature as to the steps needed to allow

 

all local exchange customers to access an internet provider by

 

making a local call.

 

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


 

remedies for the enforcement of the rules that are consistent with

 

this act and federal law. Rules promulgated under subsection

 

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

 

elements and local interconnection services subject to quality

 

standards in an interconnection agreement approved by the

 

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

 

commission shall consider to what extent current market conditions

 

are sufficient to provide adequate service quality to basic local

 

exchange service end users. Any service quality rules promulgated

 

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

 

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

 

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

 

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

 

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

 

filed with the commission under this act.

 

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

 

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

 

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

 

order under the contested hearings provisions of the administrative

 

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

 

     (2) If a complaint filed under this section alleges facts that

 

warrant emergency relief, the complainant may request an emergency

 

relief order. On the date of filing, the complaint and request for

 

emergency relief shall be hand-delivered to the respondent at its

 

principal place of business in Michigan. The commission shall allow

 

5 business days for a filing in response to the request for

 

emergency relief. The commission shall review the complaint, the


 

request for emergency relief, the response, and all supporting

 

materials and determine whether to deny the request for emergency

 

relief or to conduct an initial evidentiary hearing. The initial

 

evidentiary hearing shall be conducted within 5 business days from

 

the date of the notice of hearing and the commission shall issue an

 

order granting or denying the request for emergency relief. An

 

order for emergency relief may require a party to act or refrain

 

from action to protect competition. Any action required by an order

 

for emergency relief shall be technically feasible and economically

 

reasonable and the respondent shall be given a reasonable period of

 

time to comply with the order. At the hearing for emergency relief,

 

the respondent has the burden of showing that the order is not

 

technically feasible and not economically reasonable. If the

 

commission finds that extraordinary circumstances exist that

 

warrant expedited review before the commission's issuance of a

 

final order, it shall set a schedule providing for the issuance of

 

a partial final order as to all or part of the issues for which

 

emergency relief was granted within 90 days of the issuance of the

 

emergency relief order.

 

     (3) An order for emergency relief may be granted under

 

subsection (2) if the commission finds all of the following:

 

     (a) That the party has demonstrated exigent circumstances that

 

warrant emergency relief.

 

     (b) That the party seeking relief will likely succeed on the

 

merits.

 

     (c) That the party will suffer irreparable harm in its ability

 

to serve customers if emergency relief is not granted.


 

     (d) That the order is not adverse to the public interest.

 

     (4) The commission may require the complainant to post a bond

 

in an amount sufficient to make whole the respondent in the event

 

that the order for emergency relief is later found to have been

 

erroneously granted.

 

     (5) An order for emergency relief shall expire upon the sooner

 

of any of the following:

 

     (a) Ninety days after its issuance.

 

     (b) Issuance of the commission's partial final order.

 

     (c) An earlier date set by the commission. Notwithstanding

 

this subsection, the commission may extend the emergency relief

 

order to a date no later than the date on which the final order in

 

the proceeding is issued.

 

     (6) An order granting or denying emergency relief under

 

subsection (2) shall be subject to immediate review in the court of

 

appeals as a matter of right by the party aggrieved. The review

 

shall be de novo and shall comply with Michigan court rule

 

7.211(c)(6). The court may stay an order granting emergency relief

 

upon the posting of a bond or other security in an amount and on

 

terms set by the court. Regardless of whether an appeal is made

 

under this subsection, the commission shall proceed with the case

 

and issue a final order as otherwise required under this section.

 

     (7) An application or complaint filed under this section shall

 

contain all information, testimony, exhibits, or other documents

 

and information within the person's possession on which the person

 

intends to rely to support the application or complaint.

 

Applications or complaints that do not meet the requirements of


 

this subsection shall be dismissed or suspended pending the receipt

 

by the commission of the required information. If the complainant

 

or applicant requires information in the possession of the

 

respondent, not within the complainant's or applicant's possession,

 

the commission may allow a reasonable opportunity for discovery to

 

allow the complainant or applicant to provide all relevant

 

information, testimony, exhibits, or other documents on which the

 

complainant or applicant intends to rely to support its application

 

or complaint.

 

     (8) The burden of proving a case filed under this act is with

 

the party filing the application or complaint.

 

     (9) In a contested case under this section, the commission can

 

administer oaths, certify all official acts, and compel the

 

attendance of witnesses and the production of papers, books,

 

accounts, documents, and testimony.

 

     (10) Except as otherwise provided in this section, the

 

commission shall issue a final order in a case filed under this

 

section within 90 days from the date the application or complaint

 

is filed.

 

     (11) Except as provided for a hearing involving a request for

 

emergency relief, if a hearing is required, the applicant or

 

complainant shall publish a notice of hearing as required by the

 

commission within 7 days of the date the application or complaint

 

was filed or as required by the commission. The first hearing shall

 

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

 

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

 

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


 

principal parties of record agree that the complexity of issues

 

involved requires additional time, the commission may have up to

 

210 days from the date the application or complaint was filed to

 

issue its final order. If the application or complaint is subject

 

to section 203a, the commission shall have an additional  45  60

 

days to issue its final order.

 

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

 

provided by section 26 of 1909 PA 300, MCL 462.26  under this act

 

is subject to appellate review as of right in the court of appeals.

 

The appeal shall be initiated by the filing of a claim of appeal

 

with the court of appeals within 30 days of the issuance of an

 

order or within 30 days of an order issued on a petition for

 

rehearing of an order.

 

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

 

against another provider, the provider of service shall not

 

discontinue service during the period of the contested case,

 

including the alternative dispute process, if the provider

 

receiving the service has posted a surety bond, provided an

 

irrevocable letter of credit, or provided other adequate security

 

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

 

     (14) Except if there is a request for emergency relief under

 

this section, if the complaint filed under this section involves an

 

interconnection dispute between providers, the commission shall

 

require the parties to utilize the alternative dispute process

 

under section 203a.

 

     (15) In addition to any other relief provided by this act, the

 

commission or a party may seek to compel compliance with a


 

commission order by proceedings in mandamus, injunction, or by

 

other appropriate civil remedies in the circuit court or other

 

court of proper jurisdiction.

 

     (16)  The amendatory act that added this subsection does not

 

amend, alter, or limit any case or proceeding commenced before the

 

effective date of this subsection.  Upon the filing of a motion for

 

stay, the commission may, on terms as it considers just, stay the

 

effect or enforcement of an order, except an order regarding rates

 

or cost studies. A motion for stay, including a request for setting

 

the amount of any appeal bond, are governed by the provisions for

 

obtaining a stay of a civil action set forth in rule 7.209 of the

 

Michigan court rules. The commission shall decide a motion for stay

 

within 10 days from the date the motion is filed with the

 

commission.

 

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

 

$1,000.00 or less, a dispute under section 203(14), or  at the

 

option of the complainant  upon the consent of all parties after

 

the complaint is filed, for a period of  45  60 days after the date

 

the complaint is filed under section 203, the parties shall attempt

 

alternative means of resolving the complaint.

 

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

 

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

 

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

 

mediation, and other informal dispute resolution methods. If the

 

parties cannot agree on an alternative means within  20  10 days

 

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

 

mediation. Within the  45-day  60-day period required under


 

subsection (1), a recommended settlement shall be made to the

 

parties.

 

     (3) Within 7 days after the date of the recommended

 

settlement, each party shall file with the commission a written

 

acceptance or rejection of the recommended settlement. If the

 

parties accept the recommendation, then the recommendation shall

 

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

 

     (4) If a party rejects or fails to respond within 7 days to

 

the recommended settlement, then the application or complaint shall

 

proceed to a contested case hearing under section 203.

 

     (5) The party that rejects the recommended settlement shall

 

pay the opposing party's actual costs of proceeding to a contested

 

case hearing, including attorney fees, unless the final order of

 

the commission is more favorable to the rejecting party than the

 

recommended settlement under this section. A final order is

 

considered more favorable if it differs by 10% or more from the

 

recommended settlement in favor of the rejecting party.

 

     (6) If the recommendation is not accepted under subsection

 

(3), the individual commissioners shall not be informed of the

 

recommended settlement until they have issued their final order

 

under section 203.

 

     (7) An attempt to resolve a contested case under this section

 

is exempt from the requirements of section 203 and the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (8) This section shall not extend or toll the time within

 

which the commission is required to issue its final order under


 

section 203.

 

     Sec. 204. If 2 or more telecommunication providers are unable

 

to agree on a matter relating to a regulated telecommunication

 

issue between the parties, including but not limited to,  service

 

or a matter prohibited by section 305, then either

 

telecommunication provider may file with the commission an

 

application for resolution of the matter.

 

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

 

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

 

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

 

the date the complaint was filed.

 

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

 

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

 

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

 

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

 

commission may require changes in how the telecommunication

 

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

 

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

 

desist orders.

 

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

 

order, trade secrets and commercial or financial information

 

submitted under this act are exempt from the freedom of information

 

act,  Act No. 442 of the Public Acts of 1976, being sections 15.231

 

to 15.246 of the Michigan Compiled Laws  1976 PA 442, MCL 15.231 to

 

15.246.

 

     (2) If information is disclosed pursuant to a mandatory

 

protective order, then the information may be included in the


 

commission's evidentiary record if admissible,  and remains  but

 

shall remain confidential.

 

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

 

customer usage data, marketing studies, and contracts between

 

providers are trade secrets or commercial or financial information

 

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

 

presumption under this subsection is with the party seeking to have

 

the information disclosed.

 

     Sec. 211a. A provider of any telecommunication service

 

utilizing a new or emerging technology shall register with the

 

commission. The registration shall include all of the following

 

information:

 

     (a) The name of the provider.

 

     (b) A description of the services provided.

 

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

 

principal office.

 

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

 

registered agent authorized to receive service in this state.

 

     (e) Any other information the commission considers necessary.

 

     Sec. 213. (1) Subject to section 201, the commission may

 

promulgate rules under the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.201 to 24.328.

 

     (2)  Effective September 1, 1996, the  The following

 

administrative rules shall not apply to telecommunication providers

 

or telecommunication services:

 

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

 

460.592.


 

     (b) Intrastate telephone services and facilities: R 460.1951

 

to R 460.1968.

 

     (c) Filing procedures for communications common carriers

 

tariffs: R 460.2051 to R 460.2057.

 

     (d) Consumer standards and billing practices, residential

 

telephone service: R 460.2211 to R 460.2279.

 

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

 

telephone companies: R 460.9041 and R 460.9059.

 

     (3) Rules promulgated after January 1, 1996 under this act are

 

considered to have been promulgated under the authority granted

 

under subsection (1). R 484.453(5), 484.455(2), 484.455(3),

 

484.457(3), and 484.458(4) of the Michigan administrative code may

 

not be enforced until a court determines that the rules do not

 

exceed the commission's authority under this act. It is the

 

legislature's intent that providers voluntarily comply with the

 

rules until a court makes a determination. A provider that

 

voluntarily agrees to abide by the rules does not relinquish its

 

rights to challenge the legality of the rules.

 

     (3)  (4)  A proceeding before the commission to promulgate

 

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

 

date that the proceeding is initiated.

 

     Sec. 214. (1) The commission shall issue orders that assign

 

the telephone digits 2-1-1 to community resource information and

 

referral answering points established under subsection (3) and

 

prescribe appropriate interconnection orders to carry out the

 

intent of this section.

 

     (2) Each provider of basic local exchange service in this


 

state shall assign the telephone number 2-1-1 only to a community

 

resource information and referral answering point established under

 

subsection (3).

 

     (3) The commission shall designate a community resource

 

information and referral entity to be the 2-1-1 answering point for

 

various geographical areas within this state. In making its

 

determination, the commission shall consider all of the following:

 

     (a) The recommendations of  the  Michigan  alliance for

 

information and referral systems  2-1-1, inc.

 

     (b) Whether the relevant state-endorsed  multipurpose  

 

community collaborative bodies are in agreement.

 

     (c) Whether the entity has established a framework to assure

 

the provision of coverage of the 2-1-1 telephone number 24 hours

 

per day, 7 days per week.

 

     (d) Whether the entity meets 2-1-1 standards adopted by the

 

Michigan alliance for information and referral systems.

 

     (4) Each community resource information and referral entity

 

designated by the commission to be the 2-1-1 answering point for a

 

particular geographical area within the state shall establish the

 

framework to provide sufficient resources to operate the 2-1-1

 

telephone number 24 hours per day, 7 days per week.

 

     (5) Not later than April 1, 2006, the commission shall

 

designate an entity to serve as the state 2-1-1 coordinating

 

agency. The designated agency shall assist and provide information

 

and resources in implementing 2-1-1 service in this state. The

 

designated agency shall also coordinate the providing of 2-1-1

 

services of the community resource information and referral


House Bill No. 5237 (H-3) as amended October 20, 2005

entities designated under subsection (3).

 

     (6) Before a state agency or local unit of government

 

implements a community resource information or referral service,

 

the state agency or local unit of government shall consult with the

 

state 2-1-1 coordinating agency designated by the commission under

 

subsection (5).

 

     (7) By 2008, the commission shall issue orders that assign the

 

telephone digits 2-1-1 to a statewide central routing system

 

connecting regional community resource information and referral

 

answering points established under subsection (3). Each provider of

 

basic local exchange service in the state will reassign the

 

telephone number 2-1-1 to the central system without additional

 

charge.

 

     Sec. 252. (1) A public entity may provide telecommunication

 

services within its incorporated boundaries if the public entity

 

has complied with the requirements of section 14 of the

 

metropolitan extension telecommunications right-of-way oversight

 

act, 2002 PA 48, MCL 484.3114, and all of the following apply:

 

     (a) The public entity has issued a request for competitive

 

sealed bids to provide telecommunication services.

 

     (b) The public entity has received less than [3] qualified bids

 

from private providers or no provider has offered services as

 

required under subsection (2).

 

     (c) It is more than 60 days from the date the request for bids

 

was issued.

 

     (d) The public entity is providing the telecommunication

 

services under the same terms and conditions as required under the


House Bill No. 5237 (H-3) as amended October 20, 2005

request for bids issued pursuant to subdivision (a).

 

     [                                                            

 

                                                                    

 

                                                                  

 

                                                                  

 

                                                                  

 

                                                                 

 

     (2)] Except as provided under subsection (4), a public entity

 

shall not provide telecommunication services outside its

 

incorporated boundaries.

 

     [(3)] Two or more public entities may jointly request bids under

 

subsection (1) and provide telecommunication services if all

 

participating public entities meet the requirements of this

 

section. If a public entity does not receive a qualified bid as

 

required under subsection (1), the public entity may contract with

 

another public entity to receive telecommunication services.

 

     [(4)] A public entity shall not establish a board or other

 

entity for the purpose of providing regulation of a private

 

provider of services under this section.

 

     [(5)] This section does not apply to all of the following:

 

     (a) Public safety systems.

 

     (b) Systems used only for the internal use of the public

 

entity or for the sharing of information between the public entity

 

and another public entity.

 

    [(C) A PUBLIC ENTITY THAT IS CURRENTLY PROVIDING TELECOMMUNICATION

 

SERVICES OR THAT HAS HELD A PUBLIC HEARING BY NOVEMBER 1, 2005 ON A

 

PROPOSAL TO PROVIDE TELECOMMUNICATION SERVICES, OR HAS ISSUED A REQUEST

FOR BIDS BY NOVEMBER 1, 2005 TO PROVIDE TELECOMMUNICATION SERVICES, OR HAS AN ENFORCEABLE CONTRACT TO BEGIN CONSTRUCTION OF A TELECOMMUNICATION SYSTEM BY NOVEMBER 1, 2005.

     (D) A PUBLIC ENTITY THAT IS CURRENTLY PROVIDING SERVICE IN ANOTHER PUBLIC ENTITy'S BOUNDARIES.


House Bill No. 5237 (H-3) as amended October 20, 2005

     (e)] Services offered by a public entity to the public within a

 

facility owned and operated by the public entity.

     [(F) SYSTEMS OR SERVICES USED OR OFFERED BY 1 or more PUBLIC ENTITies OR CONSORTIUMs TO ADVANCE OR PROMOTE THE PUBLIC HEALTH, SAFETY, AND PROVISION OF E-GOVERNMENT SERVICES.

     (6)] As used in this section, "public entity" means a county,

 

city, village, township, or any agency or subdivision of the public

 

entity.

 

     Sec. 301. (1) A telecommunication provider shall not provide

 

or resell basic local exchange service in this state, without a

 

license issued from the commission  pursuant to  under this act.

 

     (2) Pending the determination of an application for a license,

 

the commission without notice and hearing may issue a temporary

 

license for a period not to exceed 1 year.

 

     Sec. 301a. A provider licensed under this act shall offer

 

primary basic local exchange service to each residential customer

 

within the provider's service area where the provider is offering

 

residential basic local exchange service.

 

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

 

approve an application for a license if the commission finds both

 

of the following:

 

     (a) The applicant possesses sufficient technical, financial,

 

and managerial resources and abilities to provide basic local

 

exchange service  to all residential and commercial customers

 

within the geographic area of the license and that the applicant

 

intends to provide service within 1 year from the date the license

 

is granted.

 

     (b) The granting of a license to the applicant would not be

 

contrary to the public interest.

 

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


 

and make all information contained in the licenses available to the

 

public.

 

     (3) Each provider granted a license shall retain a copy of the

 

license at its principal place of business and make the license

 

available for review to the public.

 

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

 

geographic area of a license, grant a competing license, or revoke

 

a license of a provider if within 2 years from the date the license

 

was granted the provider has not marketed its services to all

 

potential customers or has refused to provide services to certain

 

customers.

 

     (2) A telecommunication provider shall not provide basic local

 

exchange service to customers or end-users located within another

 

telecommunication provider's licensed service area except through

 

interconnection arrangements as provided by this act.

 

     (1)  (3)  The sale or transfer of shares of stock of a

 

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

 

transfer of a license or a discontinuance of service.

 

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

 

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

 

in this state. The commission shall give public notice and shall

 

conduct a public hearing in the affected geographic area before an

 

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

 

this state.

 

     (5) To the extent that it is technically and economically

 

feasible, the commission shall issue orders requiring the

 

modification of all area code boundaries in this state to insure


 

that they conform to county lines.

 

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

 

unlicensed provider.

 

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

 

commission shall establish the procedures for the transfer of the

 

license to another qualified provider.

 

     Sec. 304. (1)  Except as provided in section 304a, the  The

 

rates for primary basic local exchange service shall be just and

 

reasonable. Each provider shall set the initial rates for primary

 

basic local exchange service to be effective no later than April 1,

 

2006. Except as provided under section 310a or a higher rate

 

approved by the commission under subsection (2)(d), the initial

 

rates may not exceed the rates for the lowest cost calling plan

 

that includes a limited number of outgoing calls of the provider in

 

place before the rates are set under this subsection. If a provider

 

does not offer a calling plan with a limited number of outgoing

 

calls, the provider shall set the initial rate for primary basic

 

local exchange service which shall be just and reasonable and may

 

be subject to commission review.

 

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

 

exchange services by 1 or more of the following:

 

     (a) Filing with the commission notice of a  decrease,

 

discount, or other rate  reduction in a primary basic local

 

exchange rate. A rate alteration under this subdivision shall

 

become effective without commission review or approval.

 

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

 

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


 

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

 

rate alteration under this subdivision is effective without

 

commission review or approval.

 

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

 

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

 

consumer price index. Unless the commission determines that the

 

rate alteration exceeds the allowed increase under this

 

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

 

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

 

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

 

annual average percentage increase in the Detroit consumer price

 

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

 

States department of labor.

 

     (d)  (c)  Filing with the commission an application to

 

increase a primary basic local exchange rate in an amount greater

 

than that allowed under  subdivision (b)  subsection (1) or

 

subdivision (c). The application shall be accompanied with

 

sufficient documentary support that the rate alteration is just and

 

reasonable. The commission shall make a determination within the

 

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

 

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

 

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

 

rate alteration.

 

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

 

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

 

(2)(c) or (d) and shall be included in or on the bill of each

 

affected customer of the provider at least 1 billing cycle before


 

the effective date of the rate alteration.

 

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

 

least all of the following information:

 

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

 

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

 

typical residential customer that would result by the rate change.

 

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

 

complete details of the rate alteration by calling or writing the

 

commission. The statement shall also include the telephone number

 

and address of the commission. Complete details of the rate

 

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

 

expense of the provider.

 

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

 

an altered primary basic local exchange rate shall take effect 90

 

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

 

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

 

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

 

filing under section 203 to review a proposed rate alteration under

 

subsection  (2)(c)  (2)(d). The commission's final order may

 

approve, modify, or reject the rate alteration.

 

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

 

commission shall consider only 1 or more of the following factors

 

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

 

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

 

exchange services.

 

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

 

other providers in this state for the same service.


 

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

 

offered as a component of basic local exchange service.

 

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

 

basic local exchange service in the geographic area of the proposed

 

rate.

 

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

 

infrastructure of the geographic area of the proposed rate is

 

economically justifiable without the proposed rate.

 

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

 

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

 

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

 

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

 

     (10) The commission shall exempt a provider from this section

 

and section 310(2) if it finds all of the following:

 

     (a) The provider provides basic local exchange service or

 

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

 

users in this state.

 

     (b) The provider offers to end-users single-party basic local

 

exchange service, tone dialing, toll access service, including end-

 

user common line services and dialing parity at a total price of no

 

higher than the amount charged as of May 1, 2000.

 

     (c) The provider provides dialing parity access to operator,

 

telecommunication relay, and emergency services to all basic local

 

exchange end-users.

 

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

 

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

 

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


 

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

 

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

 

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

 

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

 

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

 

classify the call as a local call.

 

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

 

already the subject of a commission order on adjacent local

 

calling, shall submit to the commission an adjacent local calling

 

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

 

reviewing the plan, the commission shall give consideration to the

 

revenues lost and additional cost incurred by the provider in

 

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

 

that the plan is not required because a cost benefit analysis

 

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

 

customers.

 

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

 

combination, or bundle of telecommunication or other services which

 

includes primary basic local exchange service is not subject to

 

this section as long as the primary basic local exchange service

 

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

 

purchase on a stand-alone basis.

 

     (12) A provider shall offer its unregulated calling features

 

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

 

customers. The purchase of a calling feature under this subsection

 

shall not affect the regulated rate of the primary basic local

 

exchange service.


 

     (13) A person with disabilities or who is voluntarily

 

providing a service for an organization classified by the internal

 

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

 

congressionally chartered veterans organization or their duly

 

authorized foundations, is exempt from the 100 calls per month

 

limitation and shall receive a flat rate allowing unlimited calls

 

per month. A person exempt from the call cap under this subsection

 

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

 

residential customers for primary basic local exchange service.

 

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

 

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

 

affiliated providers, provide basic local exchange service or basic

 

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

 

this state may determine total service long run incremental cost

 

through preparation of a cost study or may determine that their

 

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

 

provider with more than 250,000 end-users.

 

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

 

15,000 end-users in this state may determine that their total

 

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

 

with more than 250,000 end-users.

 

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

 

shall not do any of the following:

 

     (a) Discriminate against another provider by refusing or

 

delaying access service to the local exchange.

 

     (b) Refuse or delay interconnections or provide inferior

 

connections to another provider.


 

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

 

provider.

 

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

 

another provider.

 

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

 

publicly known changes in the underlying network.

 

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

 

information regarding the technical design, equipment capabilities

 

and features, geographic coverage, and traffic patterns of the

 

local exchange network.

 

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

 

connecting another provider to the local exchange whose product or

 

service requires novel or specialized access service requirements.

 

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

 

all available information necessary for the design of equipment

 

that will meet the specifications of the local exchange network.

 

     (i) Discriminate against any provider or any party who

 

requests the information for commercial purposes in the

 

dissemination of customer proprietary information. A provider shall

 

provide without unreasonable discrimination or delay telephone

 

directory listing information and related services to persons

 

purchasing telephone directory listing information to the same

 

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

 

affiliates of the provider, or any other listing information

 

purchaser.

 

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

 

provider.


 

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

 

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

 

asset.

 

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

 

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

 

the asset.

 

     (m) Bundle unwanted services or products for sale or lease to

 

another provider.

 

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

 

order of the commission.

 

     (o) Sell services or products, extend credit, or offer other

 

terms and conditions on more favorable terms to an affiliate of the

 

provider than the provider offers to other providers.

 

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

 

alarm service over a similar service offered by another provider.

 

     (2) A provider of cellular telecommunication services shall

 

not do either of the following:

 

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

 

other terms and conditions on more favorable terms to an affiliate

 

of the provider or to its retail department that sells to end users

 

than the provider offers to other providers.

 

     (b) Unreasonably use rates or proceeds from providers,

 

directly or indirectly, to subsidize or offset the costs of

 

cellular service offered by the provider, or an affiliate of the

 

provider, to other providers or to end-users.

 

     (3) Until a provider has complied with section 304a, the

 

provider of a rate regulated service shall not provide that service


 

in combination with an unregulated service in section 401 or an

 

unbundled or resold service under section 357 at a price that does

 

not exceed the total service long run incremental cost of each

 

service.

 

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

 

where technically feasible, a provider originating or forwarding an

 

intrastate call that is terminated on the network of another

 

provider shall do all of the following:

 

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

 

party originating the call. The telephone number shall be

 

transmitted without alteration in the network signaling

 

information.

 

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

 

party originating the call to the extent such information has been

 

provided by the originating carrier. The telephone number shall be

 

transmitted without alteration in the network signaling

 

information.

 

     (2) The commission may investigate complaints alleging

 

violations of this section and may initiate proceedings under

 

section 203 to resolve disputes between providers regarding

 

identification of traffic and disputes regarding compensation

 

rights and obligations between providers who originate, forward, or

 

terminate intrastate traffic.

 

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

 

not been transmitted as required by this section, the provider

 

against whom the complaint was filed shall demonstrate that it was

 

not technically feasible to transmit the information, or that it


 

had a legitimate business or other good faith reason for not

 

transmitting the telephone number.

 

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

 

section, the commission shall determine if the violation resulted

 

in a nonpayment or underpayment of compensation to the complaining

 

provider under the terms of the parties' compensation agreement or

 

its intrastate access tariff. The commission shall determine the

 

amount of the nonpayment or underpayment and order the violating

 

provider to make payment. The commission may assess a fine against

 

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

 

amount, or may take any other action authorized by Michigan law

 

that it considers necessary.

 

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

 

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

 

251, shall agree to establish a reciprocal compensation arrangement

 

for the termination of those calls. Originating and terminating

 

providers shall agree to begin negotiations no more than 30 days

 

after the originating provider receives a request from a

 

terminating provider to establish an arrangement. During the

 

negotiation period, reciprocal compensation rates shall be assessed

 

by the terminating carrier under an interim arrangement with the

 

originating carrier. Originating and terminating providers shall

 

use good faith efforts to conclude negotiations and finalize an

 

agreement within a reasonable time period.

 

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

 

subject to a terminating carrier's intrastate access tariffs shall

 

pay the tariffed rate for termination of the call.


 

     (7) The commission may resolve disputes under this section

 

between originating and terminating providers related to

 

negotiation of the reciprocal compensation agreement and the

 

payment of the tariffed rates.

 

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

 

do all of the following:

 

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

 

request, provide each customer a clear and simple explanation of

 

the terms and conditions of the services purchased by the customer

 

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

 

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

 

     (b) The statement required under subdivision (a) and all

 

advertisements regarding a service shall include a good faith

 

estimate by the provider of the actual monthly cost that the

 

customer will be required to pay if the service is purchased.

 

     (c) Comply with all federal and state requirements regarding

 

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

 

exchange service.

 

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

 

ensure that the customer has an alternative means to reach

 

emergency service responders.

 

     (e) Comply with sections 505 and 507.

 

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

 

telecommunication provider of basic local exchange service is not

 

required to provide toll services. If a telecommunication provider

 

that provides basic local exchange service does not offer toll or

 

have interconnection with a toll provider, the commission shall


 

order a toll provider to interconnect with the telecommunication

 

provider upon terms that are fair to both providers.

 

     Sec. 307. (1) Educational institutions shall have the

 

authority to own, construct, and operate a telecommunication system

 

or to purchase telecommunication services or facilities from an

 

entity capable of providing the service or facility.

 

     (2) Educational institutions that provide telecommunication

 

services offered in subsection (3) shall not be subject to

 

regulation under this act or by any other governmental unit.

 

     (3)  Except as provided in subsection (6), educational  

 

Educational institutions may only sell telecommunication services

 

required for, or useful in, the instruction and training, including

 

worker training, of students and other people utilizing the

 

institution's educational services, the conducting of research, or

 

the operation of the institution. The services shall not be

 

considered basic local exchange services as long as they are used

 

for the instruction and training of students and other people

 

utilizing the institution's education services, the conducting of

 

research, or the operation of the institution. Educational

 

institutions may initiate and maintain cooperative arrangements

 

with telecommunication providers without the institutions being

 

subject to this act.

 

     (4) Upon the request of an educational institution,

 

telecommunication providers may provide to an educational

 

institution services for the transmission of interactive data,

 

voice and video communications between the institution's facilities

 

or to the homes of students or employees of the institution,


 

regardless of whether the exchanges are in the same or different

 

LATAs.

 

     (5) The rates for services provided to an educational

 

institution by a provider under this section shall be determined by

 

an open bid process.

 

     (6) Except for a state institution of higher education, if an

 

educational institution has excess capacity, it may sell the excess

 

capacity subject to subsection (3) and to  both  all of the

 

following:

 

     (a) The amount of capacity sold shall not exceed 25% of the

 

institution's total capacity.

 

     (b) The capacity shall not be sold below the total service

 

long run incremental cost of the provider of basic local exchange

 

service in the service area of the educational institution. If

 

there is more than 1 provider in the service area, the educational

 

institution shall use the lowest total service long run incremental

 

cost.

 

     (c) The educational institution has held not less than 1

 

public hearing on the proposed plan to sell the excess capacity.

 

The educational institution shall give notice of the time and place

 

of the public hearing not less than 15 days before the hearing by 1

 

publication in a newspaper of general circulation in the geographic

 

area in which the excess capacity is to be sold. Notice shall also

 

be provided on the educational institution's website.

 

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

 

provide to each customer local directory assistance and, at no

 

additional charge to the customer, an annual printed telephone


House Bill No. 5237 (H-3) as amended October 20, 2005

directory.

 

     (2) A provider of interzone service, as defined in tariffs on

 

file with the commission on December 31, 1991, shall continue to

 

provide the service pursuant to the terms of the tariffs. A

 

provider may alter interzone service rates pursuant to provisions

 

of section 304.

 

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

 

provide each customer at no additional charge the option of having

 

access to 900 prefix services blocked through the customer's

 

exchange service.

 

     [                                                          

 

                                                            ]

 

     Sec. 309a.  (1)  A provider of telecommunication service,

 

including, basic local exchange service, may provide cable service

 

if the provider has received a franchise agreement from the local

 

unit of government to provide cable service.

 

     (2) If a new provider of cable service seeks to offer the

 

service in an area that has an incumbent provider of cable service

 

operating under a franchise agreement, in negotiating a franchise

 

agreement during the term of a franchise agreement entered into

 

prior to July 1, 1995, the local government unit may consider terms

 

and conditions of the franchise agreement of the incumbent

 

provider, existing cable franchise fees, development of new

 

services, the state of technology, and other factors.

 

     Sec. 310. (1) Except as provided by this  act  section, the

 

commission shall not review or set the rates for toll access

 

services.


 

     (2)  Except as otherwise provided under subsection (7), a  A

 

provider of toll access services shall set the rates for toll

 

access services. Access service rates and charges set by a provider

 

that do not exceed the rates allowed for the same interstate

 

services by the federal government are  not  just and reasonable.

 

In no event may end-user or subscriber line charges exceed the

 

rates allowed for the same interstate services by the federal

 

government as of May 1, 2000.  Providers may agree to a rate that

 

is less than the rate allowed by the federal government.  If the

 

providers cannot agree on a rate, a provider may apply to the

 

commission under section 204.

 

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

 

access lines may agree to joint toll access service rates and

 

pooling of intrastate toll access service revenues.

 

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

 

for intrastate access services any technical interconnection

 

arrangements, including colocation required by the federal

 

government for the identical interstate access services.

 

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

 

contract, shall offer the services under the same rates, terms and

 

conditions, without unreasonable discrimination, to all providers.

 

All pricing of special toll access services and switched access

 

services, including volume discounts, shall be offered to all

 

providers under the same rates, terms, and conditions.  Until

 

allowed by the federal communications commission, volume discounts

 

on switched access are prohibited under this subsection.

 

     (6) If a toll access service rate is reduced, then the


 

provider receiving the reduced rate shall reduce its rate to its

 

customers by an equal amount. The commission shall investigate and

 

ensure that the provider has complied with this subsection.

 

     (7) A provider of basic local exchange service shall not

 

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

 

or end-user line charge.

 

     (7)  (8)  This section shall not apply to basic local exchange

 

providers that have 250,000 or fewer customers in this state.

 

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

 

telecommunication services in this state shall not charge, assess,

 

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

 

user line charge.

 

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

 

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

 

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

 

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

 

basic local exchange rate in an amount not to exceed the provider's

 

intrastate subscriber line charge or end-user line charge in effect

 

on July 1, 2005. An increase under this subsection is considered

 

just and reasonable under section 304(2)(d)(i).

 

     Sec. 312. (1)  Except as provided by this act, the  The

 

commission shall not review or set the rates for toll service.

 

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

 

the service on its routes of similar distance.

 

     (2)  (3)  The commission shall require that toll service is

 

universally available to all persons within the state.

 

     (3)  (4)  Upon commission review and approval, all providers


 

of toll service shall make available to their customers adjacent

 

exchange toll calling plans. All providers of toll service shall

 

inform their customers of the available plans that provide a

 

monthly allowance of toll calling to adjacent exchanges for which

 

there is no local calling. All providers of toll service shall

 

inform their customers of the available plans. The plans required

 

under this subsection shall remain in effect under this act until

 

altered by order of the commission.  A provider of toll service

 

shall implement an optional discount plan for calling to exchanges

 

within 20 miles of a customer's home exchange. The plan shall not

 

violate the conditions delineated in the commission's order in case

 

number U-9153, dated September 26, 1989.

 

     (5) Except as otherwise approved by the commission, a provider

 

shall not charge a mandatory minimum monthly or mandatory flat-rate

 

charge for toll calls except in connection with an optional

 

discount toll calling plan.

 

     Sec. 314a. (1) Except as otherwise provided by this section, a

 

telecommunication provider shall not discontinue basic local

 

exchange telecommunication service to the residence of a qualifying

 

customer who has made a filing under this section. A customer

 

making a filing under this section shall retain the telephone

 

number assigned to the customer on the date of the filing.

 

     (2) A qualifying customer may apply for shut-off protection

 

for telecommunication service under this section by notifying the

 

provider that the qualifying customer is in need of assistance

 

caused by a reduction in household income through a call to active

 

duty status in the military.


 

     (3) A provider of service may request verification of the call

 

to active duty status from the qualifying customer. A provider of

 

service may also request verification of the qualified customer's

 

reduction in household income.

 

     (4) A provider of service may require restrictions or

 

elimination of calling features or toll service as a condition of

 

granting a qualifying customer's request for shut-off protection

 

under this section.

 

     (5) A qualifying customer may receive shut-off protection from

 

the provider of service under this section for up to 90 days. Upon

 

application to the provider, the provider may grant the qualifying

 

customer 1 or more extensions.

 

     (6) A qualifying customer receiving assistance under this

 

section shall notify the provider of the end of the call to active

 

duty status as soon as that status is known.

 

     (7) Unless waived by the provider, the shut-off protection

 

provided under this section does not void or limit the obligation

 

of the qualifying customer to pay for telecommunication services

 

received during the time of assistance.

 

     (8) Within 48 hours of receiving all information requested of

 

the qualifying customer, a provider shall do all of the following:

 

     (a) Create a repayment plan requiring minimum monthly payments

 

that allows the qualifying customer to pay any past due amounts

 

over a reasonable time period not to exceed 1 year.

 

     (b) Provide a qualifying customer with information regarding

 

any governmental, provider, or other assistance programs.

 

     (9) This section does not affect or amend any commission rules


 

or orders pertaining to billing standards. If the terms and

 

conditions arranged by the provider with the qualifying customer

 

under subsection (8) are not followed by the customer, then the

 

provider shall follow procedures as set forth in the commission's

 

billing standards for basic residential telecommunication service.

 

     (10) As used in this section, "qualifying customer" means all

 

of the following:

 

     (a) A residential household where the income is reduced

 

because the customer of record, or the spouse of the customer of

 

record, is called to active military service by the president of

 

the United States or the governor of this state during a time of

 

declared national or state emergency or war.

 

     (b) Assistance is needed by the residential household to

 

maintain telecommunication service.

 

     (c) The residential household notifies the provider of the

 

need for assistance and provides verification of the call to active

 

duty status.

 

     (d) Services for the deaf, hard of hearing, and speech

 

impaired.

 

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

 

basic local exchange service to provide a text telephone-

 

telecommunications device for the deaf at costs to each individual

 

who is certified as deaf or  severely hearing-  hard of hearing or

 

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

 

qualified state agency, and to each public safety answering point

 

as defined in section 102 of the emergency telephone service

 

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


 

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

 

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

 

exchange service to provide a telecommunication relay service

 

whereby persons using a text telephone-telecommunications device

 

for the deaf can communicate with persons using a voice telephone

 

through the use of third party intervention or automated

 

translation. Each provider of basic local exchange service shall

 

determine whether to provide a telecommunication relay service on

 

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

 

contract with other telecommunication providers. The commission

 

shall determine the technical standards and essential features of

 

text telephone and telecommunication relay service to ensure their

 

compatibility and reliability.

 

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

 

consisting of a representative of the deaf community, the

 

commission staff, and providers of basic local exchange service to

 

assist in administering this section. The advisory board shall hold

 

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

 

periodically seek input on the administration of this section from

 

members of the deaf, hearing, or speech impaired community, and

 

shall report to the commission at least annually. The advisory

 

board shall investigate and make recommendations on the feasibility

 

of hiring a reasonably prudent number of people from the deaf or

 

hearing impaired and speech impaired community to work in the

 

provision of telecommunication relay service.

 

     (3) The Michigan telecommunication relay service advisory

 

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


 

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

 

or her designated representative. One member shall the director of

 

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

 

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

 

consumer appointed by the director of the department upon the

 

recommendation of the Michigan deaf association. One member shall

 

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

 

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

 

member shall be a speech impaired consumer appointed by the

 

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

 

director of the department to represent telecommunication

 

providers. Appointed members shall be appointed for terms of 4

 

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

 

the original appointment for the remainder of the unexpired term.

 

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

 

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

 

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

 

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

 

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

 

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

 

chairperson.

 

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

 

shall be reimbursed for actual and necessary expenses.

 

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

 

department. Assistance shall also be made available, as requested

 

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

 

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


 

performance of its duties, subject to civil service rules and

 

within fiscal restraints.

 

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

 

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

 

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

 

the board.

 

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

 

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

 

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

 

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

 

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

 

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

 

retained by the board in the performance of an official function

 

shall be made available to the public.

 

     (10)  (4)  Rates and charges for calls placed through a

 

telecommunication relay service shall not exceed the rates and

 

charges for calls placed directly from the same originating

 

location to the same terminating location. Unless ordered by the

 

commission, a provider of a telecommunications relay service shall

 

not be required to handle calls from public telephones except for

 

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

 

number.

 

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

 

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

 

telecommunications device for the deaf is used. The commission

 

shall not prohibit such discounts on toll calls placed through a

 

telecommunication relay service.


House Bill No. 5237 (H-3) as amended October 20, 2005 (1 of 2)

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

 

subscriber line of a provider to allow the provider to recover

 

costs incurred under this section and may waive the costs assessed

 

under this section to individuals who are deaf or severely hearing

 

impaired or speech impaired.

 

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

 

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

 

committees with oversight of telecommunication issues on the

 

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

 

access telecommunication services. The report shall include, but is

 

not limited to, activities by the commission to ensure reasonable

 

access, impediments to access, identification of activities in

 

other states to improve access, and recommendations for

 

legislation, if any.

 

     (14) As used in this section:

 

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

 

advisory board created under subsection (3).

 

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

 

growth.

     [Sec. 316. (1) The commission shall require each provider of residential basic local exchange service to offer certain low income customers the availability of basic local exchange service and access service at reduced rates as described in subsections (2) and (3).

     (2) Except as provided under subsections (3) and (4), the rate reductions for low income customers shall be at a minimum, 20% of the basic local exchange rate or $8.25, which shall be inclusive of any federal contribution, whichever is greater.

     (3) If the low income customer is 65 years of age or more, the rate reduction shall be at a minimum, 25% of the basic local exchange rate or $8.25 $12.35, which shall be inclusive of any federal contribution, whichever is greater.

     (4) The total reduction under subsection (2) or (3) shall not exceed 100% of all end-user common line charges and the basic local exchange rate. THE DOLLAR AMOUNTS IN SUBSECtIONS (2) AND (3) SHALL BE ADJUSTED ANNUALLY TO REFLECT ANY INCREASES OR DECREASES IN THE FEDERAL CONTRIBUTION.

     (5) To qualify for the reduced rate under this section, the person's annual income shall not exceed 150% of the federal poverty

House Bill No. 5237 (H-3) as amended October 20, 2005  (2 of 2)

income standards as determined by the United States office of management and budget and as approved by the state treasurer, OR THE PERSON MUST PARTICIPATE IN 1 OF THE FOLLOWING FEDERAL ASSISTANCE PROGRAMS:                          (A) MEDICAID.

     (B) FOOD STAMPS.

     (C) SUPPLEMENTAL SECURITY INCOME.

     (D) FEDERAL PUBLIC HOUSING ASSISTANCE.

     (E) LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

     (F) NATIONAL SCHOOL LUNCH PROGRAM'S FREE LUNCH PROGRAM.

     (G) TEMPORARY ASSISTANCE FOR NEEDY FAMILIES.

     (6) The commission shall establish a rate for each subscriber line of a provider to allow the provider to recover costs incurred under this section.

     (7) The commission shall take necessary action to notify the general public of the availability of lifeline services including, but not limited to, public service announcements, newspaper notices, and such other notice reasonably calculated to reach those who may benefit from the services.]

     Sec. 316a. (1) As used in this section:

 

     (a) "Affordable rates" means, at a minimum, rates in effect on

 

January 1,  2001  2006 or as determined by the commission.

 

     (b) "Intrastate universal service fund" means a fund created

 

by the commission to provide a subsidy to customers for the

 

provision of supported telecommunication services provided by any

 

telecommunication carrier.

 

     (c) "Supported telecommunication services" means primary


 

residential access lines and a minimum level of local usage on

 

those lines, as determined by the commission.

 

     (d) "Universal service" shall mean the provision of supported

 

telecommunication services by any carrier.

 

     (2) No sooner than July 1, 2002, the commission shall initiate

 

an investigation to determine whether an intrastate universal

 

service fund should be created. The commission shall complete the

 

investigation no sooner than December 1, 2002. All providers shall

 

be made respondents in the proceeding and any other interested

 

party may participate and intervene in the proceeding.

 

     (2)  (3)  The commission shall determine for each provider

 

whether and to what extent the affordable rate level to provide

 

supported telecommunication services is below each provider's

 

forward looking economic cost of the supported telecommunication

 

services.

 

     (3)  (4)  If  a  an intrastate universal fund is created under

 

this section, to the extent providers provide supported

 

telecommunication services at an affordable rate that is below the

 

forward looking economic cost of the supported telecommunication

 

services, the fund shall provide a subsidy for customers in an

 

amount which is equal to the difference between the affordable rate

 

as determined by the commission and the forward looking economic

 

cost of the supported services, less any federal universal service

 

support received for those supported services.

 

     (4)  (5)  Eligibility for customers to receive intrastate

 

universal service support under subsection  (4)  (3) shall be

 

consistent with the eligibility guidelines of section 254(e) of the


 

telecommunications act of 1996 and the rules and regulations of the

 

federal communications commission. The state fund shall be

 

administered by an independent third-party administrator selected

 

by the commission.

 

     (5)  (6)  To the extent an intrastate universal service fund

 

is established, the commission shall require that the costs of the

 

fund be recovered from all telecommunication providers on a

 

competitively neutral basis. Providers contributing to the

 

intrastate universal service fund may recover from end-users the

 

costs of the financial support through surcharges assessed on end-

 

users' bills.

 

     (6)  (7)  Upon request or on its own motion, the commission,

 

after notice and hearing, shall determine if, based upon changes in

 

technology or other factors, the findings made under this section

 

should be reviewed.

 

     (7)  (8)  This section does not apply if an interstate

 

universal service fund exists on the federal level unless otherwise

 

approved by the commission.

 

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

 

requirements for operator service providers. The requirements shall

 

include the following:

 

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

 

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

 

form of information for each telephone that has access to the

 

operator service. The information shall include the name of the

 

operator service provider, a toll-free customer service telephone

 

number, and a statement that charges imposed by the operator


 

service provider may be obtained by calling the toll-free telephone

 

number. The operator service provider shall require by contract

 

that the entity receiving the information display the information

 

on or near each of the telephones that has access to the service.

 

     (b) Prior to the connection of each call, the operator service

 

provider shall do all of the following:

 

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

 

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

 

rate and any other fees or surcharges applicable to the call

 

charged by the operator service provider.

 

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

 

by doing either of the following:

 

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

 

not reflect the rates for a call from the location of the caller

 

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

 

carrier of his or her choice without charge.

 

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

 

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

 

service method.

 

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

 

emergency services without charge.

 

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

 

operator services in this state without first registering with the

 

commission. The registration shall include the following

 

information:

 

     (a) The name of the provider.

 

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


 

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

 

of the registered office and the name of the registered agent

 

authorized to receive service of process in this state.

 

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

 

     (2)  (3)  The registration shall be accompanied with a

 

registration fee of $100.00.

 

     (3)  (4)  The registration is effective immediately upon

 

filing with the commission and the payment of the registration fee

 

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

 

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

 

with the commission a renewal registration on a form provided by

 

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

 

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

 

provider under this section shall not charge a rate for operator

 

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

 

average rate for operator or toll service by providers of regulated

 

toll service.

 

     (7) A provider shall not discontinue basic local exchange

 

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

 

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

 

who is charged for the use of an operator service provider or is

 

denied access to emergency services in violation of this section

 

may bring a civil action against the OSP to recover actual damages

 

or $250.00, whichever is greater, plus all reasonable attorney

 

fees.

 

     (5) At no charge, an operator service provider shall

 

immediately connect a person making an emergency call to an


 

emergency responder service.

 

     Sec. 321.  Except as otherwise provided under section 304a, a 

 

A provider of a regulated telecommunication service shall not

 

charge a rate for the service that is less than the total service

 

long run incremental cost of providing the service.

 

     Sec. 352. (1)  Until January 1, 1997, the  The rates of a

 

provider of basic local exchange service for interconnection under

 

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

 

incremental cost of providing the service.  After January 1, 1997,

 

the rate for interconnection shall be just and reasonable as

 

determined by the commission.

 

     (2) The rates for network elements and combinations of network

 

elements, unbundled loops, number portability, and the termination

 

of local traffic shall be the rates established  under  by the

 

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

 

total service long run incremental cost studies for such services

 

have been approved by the commission.

 

     (3) The rate of a network element shall not exceed either of

 

the following:

 

     (a) The tariffed or contract rate a retail customer or

 

affiliate is or would be charged for the element, service, or its

 

functional equivalent.

 

     (b) The rate and other appropriate charges, or portions of

 

charges, if any, to be determined by the commission, of a retail

 

service which includes the same network element less the total

 

service long run incremental costs of all other components that

 

together form the same retail service.


 

     (4) If the network element imputation test in subsection (3)

 

is not met, the unbundled network element rate shall be reduced

 

until the network element rate meets that standard.

 

     (5) Existing network element rates may be revised or new

 

network element rates established by the commission after notice

 

and hearing. To initiate a proceeding under this subsection, a

 

party shall file with the commission a petition to establish or

 

alter network element rates. The petition shall clearly state the

 

proposed rate or rates and include reasonable documentary support

 

for the proposed rate or rates. If the petitioner seeks an increase

 

to a previously commission ordered rate, the petitioner shall

 

demonstrate that the proposed revision results from an increase in

 

underlying cost and the increase in underlying cost has been

 

reflected in retail rates.

 

     Sec. 353. The commission shall issue a report and make

 

recommendations to the legislature and the governor on or before

 

January 1,  1998  2007 involving the issues, scope, terms, and

 

conditions of interconnection of telecommunication providers with

 

the basic local exchange service.

 

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

 

agreement, unless the parties agree otherwise, the parties shall

 

use an interconnection agreement which has been approved by the

 

commission in the 3-year period immediately preceding the

 

commencement of negotiations as the baseline document. A party

 

requesting the adoption of language different than that found in

 

the baseline document in an arbitration proceeding bears the burden

 

of persuasion that the requested change is lawful and appropriate.


 

     (2) If a party negotiating an interconnection agreement takes

 

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

 

ruling of the commission in an arbitration proceeding, the opposing

 

party shall file a motion with the commission for a determination

 

under this section. The motion shall be filed no later than 90 days

 

from the commencement of negotiations. The commission shall rule

 

upon the motion within 21 days of the date the motion is filed, and

 

the commission shall determine the extent to which the issue may be

 

relitigated.

 

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

 

basic local exchange service shall unbundle and separately price

 

each basic local exchange service offered by the provider into the

 

loop and port components and allow other providers to purchase such

 

services on a nondiscriminatory basis.

 

     (2) Unbundled services and points of interconnection shall

 

include at a minimum the loop and the switch port.

 

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

 

available for resale on nondiscriminatory terms and conditions all

 

basic local exchange services that on January 1, 1996 it is

 

offering to its retail customers. Resale shall be provided on a

 

wholesale basis.

 

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

 

exchange service may include in its wholesale tariffs any use or

 

class of customer restrictions it includes in its retail tariffs.

 

     (3) A provider of local exchange service is not required to

 

offer for resale either of the following:

 

     (a) A package of services where basic local exchange service


 

is jointly marketed or combined with other services, or for any

 

promotional or discounted offering of basic local exchange service.

 

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

 

facilities in place to serve the intended end user, or any service

 

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

 

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

 

local exchange service shall file tariffs with the commission which

 

set forth the wholesale rates, terms, and conditions for basic

 

local exchange services. The wholesale rates shall be set at levels

 

no greater than the provider's current retail rates less the

 

provider's avoided costs.

 

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

 

not be less than the provider's total service long run incremental

 

cost of the services.

 

     (6) This section does not apply after December 31, 2007.

 

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

 

means the capability for a local exchange customer at a particular

 

location to change providers of basic local exchange service

 

without any change in the local exchange customer's telephone

 

number, while preserving the full range of functionality that the

 

customer could obtain by changing telephone numbers.

 

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

 

local exchange service shall provide number portability. The

 

commission shall, consistent with federal law, enforce number

 

portability, number administration, number reclamation, and number

 

assignment between regulated and unregulated providers.

 

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


 

technologically feasible to provide number portability before the

 

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

 

providers of basic local exchange service to provide the service

 

before that date.

 

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

 

local exchange service shall make available to other providers

 

direct inward dialing and remote call forwarding.

 

     Sec. 359. (1)  No later than January 1, 1996  Except as

 

otherwise provided by federal law, a provider of basic local

 

exchange service shall establish a rate charge for other providers

 

of basic local exchange service for the termination of local

 

traffic on its network as provided under section 352.

 

     (2) This section does not prohibit providers of basic local

 

exchange service from entering into an agreement to provide for the

 

exchange of local traffic on other terms and conditions. Any

 

compensation arrangements agreed to between providers under this

 

subsection shall be available to other providers with the same

 

terms and conditions on a nondiscriminatory basis.

 

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

 

by federal law, the commission shall not have authority over

 

enhanced services, paging, cellular, mobile,  and  answering

 

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

 

view, shared tenant, private networks, financial services networks,

 

radio and television, WATS, personal communication networks,

 

municipally owned telecommunication system, 800 prefix services,

 

burglar and fire alarm services, energy management services, except

 

for state institutions of higher education the reselling of centrex


 

or its equivalent, payphone services, and the reselling of an

 

unlicensed telecommunication service. The foregoing services shall

 

not be considered part of basic local exchange service.

 

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

 

commission shall  not  have  the  authority over  a  the

 

telecommunication  service not  services specifically provided for

 

in this act.

 

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

 

not do any of the following:

 

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

 

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

 

of providing a telecommunication service that is false, misleading,

 

or deceptive. As used in this subdivision, "material information"

 

includes, but is not limited to, all applicable fees, taxes, and

 

charges that will be billed to the end-user, regardless of whether

 

the fees, taxes, or charges are authorized by state or federal law.

 

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

 

user did not make an initial affirmative order. Failure to refuse

 

an offered or proposed subscribed service is not an affirmative

 

order for the service.

 

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

 

for service provided after the effective date the service was

 

canceled.

 

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

 

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

 

service is ordered.

 

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


 

service or other regulated service will be discontinued unless the

 

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

 

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

 

by false, deceptive, or misleading representation of fact.

 

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

 

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

 

on behalf of the party when they are not.

 

     (h) Cause a probability of confusion or a misunderstanding as

 

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

 

transaction by making a false, deceptive, or misleading statement

 

or by failing to inform the customer of a material fact, the

 

omission of which is deceptive or misleading.

 

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

 

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

 

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

 

will not be so provided.

 

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

 

nature of a sales presentation.

 

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

 

provider as a condition of purchasing an unregulated service.

 

     (l) If a dispute exists between a customer and the provider,

 

disconnect service to the customer before the resolution of a

 

dispute.

 

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

 

for violation of this section, the commission may accept an

 

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

 

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


 

alleged to have engaged, be engaging, or be about to engage in the

 

method, act, or practice. The assurance shall not be an admission

 

of guilt or be introduced in any other proceeding. Unless rescinded

 

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

 

may be enforced in the circuit court by the parties to the

 

assurance. The assurance may include a stipulation for any of the

 

following:

 

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

 

investigation.

 

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

 

action.

 

     (c) An amount for restitution to an aggrieved person.

 

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

 

shall not be switched to another provider without the authorization

 

of the end user.

 

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

 

user of a telecommunications provider is not switched to another

 

provider without the end user's oral authorization, written

 

confirmation, confirmation through an independent third party, or

 

other verification procedures subject to commission approval,

 

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

 

user has approved the specific details of the switch. The order

 

issued under this section shall require that all providers comply

 

with the regulations established by the federal communications

 

commission on verification procedures for the switching of an end

 

user's telecommunications provider.

 

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


 

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

 

telecommunications service.

 

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

 

that provides 1 or more telecommunications services for

 

compensation. Telecommunications provider does not include a

 

provider of commercial mobile service as defined in section

 

332(d)(1) or part I of title III of the communications act of 1934,

 

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

 

     Sec. 604. This act is repealed effective December 31,  2005

 

2009.

 

     Enacting section 1. Sections 207, 208, 304a, 304b, 312a, 319,

 

322, 354, 360, 504, and 701 of the Michigan telecommunications act,

 

1991 PA 179, MCL 484.2207, 484.2208, 484.2304a, 484.2304b,

 

484.2312a, 484.2319, 484.2322, 484.2354, 484.2360, 484.2504, and

 

484.2701, are repealed.