HOUSE BILL No. 5237

September 27, 2005, Introduced by Reps. Nofs, Proos, Accavitti, Moore, Schuitmaker, Emmons, Baxter, Stahl, Drolet, LaJoy, Huizenga, Mayes, Clemente, Hunter, Hopgood, Murphy, Dillon and Palsrok and referred to the Committee on Energy and Technology.

      A bill to amend 1991 PA 179, entitled

"Michigan telecommunications act,"

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

205, 209, 210, 211, 213, 214, 301, 302, 303, 304, 305, 306, 307,

309, 309a, 310, 312, 314a, 315, 316a, 317, 318, 320, 321, 322,

351, 352, 353, 355, 357, 358, 359, 401, 502, 503, 504, 505, and

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

484.2203, 484.2203a, 484.2204, 484.2205, 484.2209, 484.2210,

484.2211, 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, 484.2316a, 484.2317,

484.2318, 484.2320, 484.2321, 484.2322, 484.2351, 484.2352,

484.2353, 484.2355, 484.2357, 484.2358, 484.2359, 484.2401,

484.2502, 484.2503, 484.2504, 484.2505, and 484.2604), sections

101, 103, 201, 203, 203a, 302, 303, 304, 310, 312, 502, 503, and

604 as amended and sections 214, 316a, and 322 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, 318, 320, 321, 351, 352, 353, 355, 357, 358, 359, and 504 as

added by 1995 PA 216, section 213 as amended by 2004 PA 591,

section 314a as added by 2003 PA 206, and section 505 as added by

1998 PA 260, and by adding section 252; and to repeal acts and

parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

 2  the "Michigan telecommunications act".

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

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

 5  and affordable basic residential telecommunication service.

 6        (b) Allow and encourage competition to determine the

 7  availability, prices, terms, and other conditions of providing

 8  telecommunication services.

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

10  service and not on the provider. Supplement existing state and

11  federal law regarding antitrust, consumer protection, and fair

12  trade to provide additional safeguards for competition and

13  consumers.

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

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

16  investment in the telecommunication infrastructure in this state

17  through incentives to providers to offer the most efficient

18  services and products.

 1        (e) Improve the opportunities for economic development and

 2  the delivery of essential services including education and health

 3  care.

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

 5  rates for regulated services that will ensure effective rate

 6  review and reduce the costs and length of hearings associated

 7  with rate cases.

 8        (g) Encourage the use of existing educational

 9  telecommunication networks and networks established by other

10  commercial providers as building blocks for a cooperative and

11  efficient statewide educational telecommunication system.

12        (h) Ensure effective and timely review and disposition of

13  disputes between telecommunication providers.

14        (i) Authorize actions to encourage the development of a

15  competitive telecommunication industry.

16        Sec. 102. As used in this act:

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

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

19  terminate telecommunication services within the local exchange.

20  Except for end-user common line services, access  Access service

21  does not include access service to a person who is not a

22  provider.

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

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

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

26  interactive switched voice or data communication.

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

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

 2  kilobits per second.

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

 4  subscribers of video programming or other programming services

 5  and subscriber interaction for the selection of video programming

 6  or other programming services.

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

 8  commission.

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

10  defined in section 3 of the administrative procedures act of

11  1969, 1969 PA 306, MCL 24.203.

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

13  educational institution or a private non-profit educational

14  institution approved by the department of education to provide a

15  program of primary, secondary, or higher education, a public

16  library, or a nonprofit association or consortium whose primary

17  purpose is education. A nonprofit association or consortium under

18  this subdivision shall consist of 2 or more of the following:

19        (i) Public educational institutions.

20        (ii) Nonprofit educational institutions approved by the

21  department of education.

22        (iii) The state board of education.

23        (iv) Telecommunication providers.

24        (v) A nonprofit association of educational institutions or

25  consortium of educational institutions.

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

27  telecommunication service.

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

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

 3  energy use management, energy use control, energy use

 4  information, and energy use communication.

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

 6  offices and all associated facilities within a geographical area

 7  in which basic local exchange  telecommunication services are

 8  service is offered by a provider.

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

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

11  storing, transforming, processing, retrieving, utilizing, or

12  making available information, including energy management

13  services, that is conveyed by telecommunications. Information

14  services or enhanced services do not include the use of such

15  capability for the management, control, or operation of a

16  telecommunications system or the management of a

17  telecommunications service.

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

19  and other elements necessary to permit the connection between the

20  switched networks of 2 or more providers to enable a

21  telecommunication service originating on the network of 1

22  provider to terminate on the network of another provider.

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

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

25  modification of final judgment entered pursuant to a consent

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

27  552 F. Supp. 131 (D.D.C. 1982), and in the consent decree

 1  approved in United States v GTE Corp., 603 F. Supp. 730 (D.D.C.

 2  1984).

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

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

 5  569 F. Supp. 990 (D.D.C. 1983).

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

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

 8  telecommunication user connects into the local exchange.

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

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

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

12  commission.

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

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

15  code.

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

17  including all necessary and attendant charges, imposed for basic

18  local exchange service to customers.

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

20  network interface on a subscriber's premises and the main

21  distribution frame in the servicing central office.

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

23  that includes automatic or live assistance to a person to arrange

24  for completion and billing of a telephone call originating within

25  this state that is specified by the caller through a method other

26  than 1 of the following:

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

 1  which the call originated.

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

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

 4  previously established with the provider by the person.

 5        (iii) Completion in association with directory assistance

 6  services.

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

 8  operator service.

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

10  a public, semipublic, or individually owned and operated

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

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

13  the time the call is made.

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

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

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

17  more of the following physical characteristics:

18        (i) Blindness.

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

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

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

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

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

24  aid mobility.

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

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

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

 1  60 mm/hg of room air at rest.

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

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

 4  from which a marked limitation of physical activity causes

 5  fatigue, palpitation, dyspnea, or anginal pain.

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

 7  limited to, severe arthritis or a neurological or orthopedic

 8  impairment that creates a severe mobility limitation.

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

10  local exchange, including dial tone, a telephone number,

11  switching software, local calling, and access to directory

12  assistance, a white pages listing, operator services, and

13  interexchange and intra-LATA toll carriers.

14        (x) "Primary basic local exchange service" means the

15  provision of 1 primary access line to a residential customer for

16  voice communication and a minimum amount of local usage of not

17  fewer than 100 outgoing calls or more than 12,000 outgoing

18  minutes per month.

19        (y) "Public safety system" means a communication system

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

21  and medical services.

22  (z)  (y) "Reasonable rate" or "just and reasonable rate"

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

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

25  service long run incremental cost of providing the service.

26  (aa)  (z) "Residential customer" means a person to whom

27  telecommunication services are furnished predominantly for

 1  personal or domestic purposes at the person's dwelling.

 2  (bb)  (aa) "Special access" means the provision of access

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

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

 5  terminate telecommunication service within the exchange,

 6  including the use of local private lines.

 7  (cc)  (bb) "State institution of higher education" means an

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

 9  of article VIII of the state constitution of 1963.

10        (dd) "Telecommunication act of 1996" means Public Law 104-

11  104, 110 Stat. 56.

12  (ee)  (cc) "Telecommunication provider" or "provider" means

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

14  compensation provides 1 or more telecommunication services.

15  (ff)  (dd) "Telecommunication services" or "services"

16  includes regulated and unregulated services offered to customers

17  for the transmission of 2-way interactive communication and

18  associated usage. A telecommunication service is not a public

19  utility service.

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

21  interactive switched communication between local calling areas.

22  Toll service does not include individually negotiated contracts

23  for similar telecommunication services or wide area

24  telecommunications service.

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

26  given current service demand, including associated costs of every

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

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

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

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

 4  provider had never offered the service.

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

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

 7  or basic network component.

 8  (ii)  (gg) "Wide area telecommunications service" or "WATS"

 9  means the transmission of 2-way interactive switched

10  communication over a dedicated access line.

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

12  act shall not be construed to prevent any person from providing

13  telecommunication services in competition with another

14  telecommunication provider.

15        (2) The commission shall submit an annual report describing

16  the status of competition in telecommunication services in this

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

18  service markets in this state. The report required under this

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

20  senate standing committees with oversight of telecommunication

21  issues.

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

23  information requested by the commission necessary for the

24  preparation of the annual report under this section.

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

26  federal law, the Michigan public service commission shall have

27  the jurisdiction and authority to administer this act and all

 1  federal telecommunications laws, rules, orders, and regulations

 2  that are delegated to the state.

 3        (2) The commission shall exercise its jurisdiction and

 4  authority consistent with this act and all federal

 5  telecommunications laws, rules, orders, and regulations.

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

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

 8  following:

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

10  telecommunication providers of regulated services within the

11  state keep accounts, books of accounts, and records in order to

12  determine the total service long run incremental costs and

13  imputation requirements of this act of providing a service. The

14  commission requirements under this subdivision shall be

15  consistent with any regulations covering the same subject matter

16  made by the federal communications commission.

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

18  including access service, make available for public inspection

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

20  services, and conditions of service, including access service

21  provided by contract.

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

23  establish and enforce quality standards for providing

24  telecommunication services in this state. to establish and

25  enforce quality standards for all of the following:

26        (i) The provision of basic local exchange service.

27        (ii) The provision of unbundled network elements and local

 1  interconnection services to providers which are used in the

 2  provision of basic local exchange service.

 3        (iii) The timely transfer of an end user from 1 provider of

 4  basic local exchange service to another provider.

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

 6  provide the service to any segment of end users or geographic

 7  area, go out of business, or withdraw from the state.

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

 9  exchange service.

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

11  federal universal service fund and the need for the establishment

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

13  local exchange service in high cost rural areas at affordable

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

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

16  and recommendations. The task force shall consist of all of the

17  following members:

18        (i) The chairperson of the commission.

19        (ii) One representative from each basic local exchange

20  provider with 250,000 or more access lines.

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

22  affiliated providers, provide basic local exchange or toll

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

24        (iv) Two representatives of other providers of regulated

25  services.

26        (v) One representative of the general public.

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

 1  and report to the legislature and governor on the following

 2  matters that have impact on the basic local exchange calling

 3  activities of all residential customers in the state:

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

 5  which are charged as basic local exchange calls.

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

 7  exchange calling areas.

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

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

10  government without a toll call.

11        (iv) Whether there are significant differences in basic local

12  exchange calling patterns between urban, suburban, and rural

13  areas.

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

15  occur if basic local exchange calling areas are altered.

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

17  overlap LATA boundaries.

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

19  occur if basic local exchange calling areas are expanded within

20  LATA boundaries.

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

22  internet access provider locations to determine which exchanges

23  can reach the nearest location only by making a toll call. The

24  commission shall then gather input from internet access

25  providers, local exchange providers, and other interested parties

26  and make a recommendation to the legislature as to the steps

27  needed to allow all local exchange customers to access an

 1  internet provider by making a local call.

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

 3  remedies for the enforcement of the rules that are consistent

 4  with this act and federal law. Rules promulgated under subsection

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

 6  elements and local interconnection services subject to quality

 7  standards in an interconnection agreement approved by the

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

 9  the commission shall consider to what extent current market

10  conditions are sufficient to provide adequate service quality to

11  basic local exchange service. Any service quality rules

12  promulgated by the commission shall expire within 3 years of the

13  effective date of the rules. The commission may, prior to the

14  expiration of the rules, promulgate new rules under subsection

15  (1)(c).

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

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

18  be filed with the commission under this act.

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

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

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

22  and order under the contested hearings provisions of the

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

24  24.328.

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

26  that warrant emergency relief, the complainant may request an

27  emergency relief order. On the date of filing, the complaint and

 1  request for emergency relief shall be hand-delivered to the

 2  respondent at its principal place of business in Michigan. The

 3  commission shall allow 5 business days for a filing in response

 4  to the request for emergency relief. The commission shall review

 5  the complaint, the request for emergency relief, the response,

 6  and all supporting materials and determine whether to deny the

 7  request for emergency relief or to conduct an initial evidentiary

 8  hearing. The initial evidentiary hearing shall be conducted

 9  within 5 business days from the date of the notice of hearing and

10  the commission shall issue an order granting or denying the

11  request for emergency relief. An order for emergency relief may

12  require a party to act or refrain from action to protect

13  competition. Any action required by an order for emergency relief

14  shall be technically feasible and economically reasonable and the

15  respondent shall be given a reasonable period of time to comply

16  with the order. At the hearing for emergency relief, the

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

18  technically feasible and not economically reasonable. If the

19  commission finds that extraordinary circumstances exist that

20  warrant expedited review before the commission's issuance of a

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

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

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

24  of the emergency relief order.

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

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

27        (a) That the party has demonstrated exigent circumstances

 1  that warrant emergency relief.

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

 3  merits.

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

 5  ability to serve customers if emergency relief is not granted.

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

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

 8  bond in an amount sufficient to make whole the respondent in the

 9  event that the order for emergency relief is later found to have

10  been erroneously granted.

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

12  sooner of any of the following:

13        (a) Ninety days after its issuance.

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

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

16  this subsection, the commission may extend the emergency relief

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

18  in the proceeding is issued.

19        (6) An order granting or denying emergency relief under

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

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

22  review shall be de novo and shall comply with Michigan court rule

23  7.211(c)(6). The court may stay an order granting emergency

24  relief upon the posting of a bond or other security in an amount

25  and on terms set by the court. Regardless of whether an appeal is

26  made under this subsection, the commission shall proceed with the

27  case and issue a final order as otherwise required under this

 1  section.

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

 3  shall contain all information, testimony, exhibits, or other

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

 5  the person intends to rely to support the application or

 6  complaint. Applications or complaints that do not meet the

 7  requirements of this subsection shall be dismissed or suspended

 8  pending the receipt by the commission of the required

 9  information. If the complainant or applicant requires information

10  in the possession of the respondent, not within the complainant's

11  or applicant's possession, the commission may allow a reasonable

12  opportunity for discovery to allow the complainant or applicant

13  to provide all relevant information, testimony, exhibits, or

14  other documents on which the complainant or applicant intends to

15  rely to support its application or complaint.

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

17  with the party filing the application or complaint.

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

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

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

21  accounts, documents, and testimony.

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

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

24  section within 90 days from the date the application or complaint

25  is filed.

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

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

 1  complainant shall publish a notice of hearing as required by the

 2  commission within 7 days of the date the application or complaint

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

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

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

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

 7  If the principal parties of record agree that the complexity of

 8  issues involved requires additional time, the commission may have

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

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

11  is subject to section 203a, the commission shall have an

12  additional  45  60 days to issue its final order.

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

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

15  act is subject to appellate review as of right in the court of

16  appeals. The appeal shall be initiated by the filing of a claim

17  of appeal with the court of appeals within 30 days of the

18  issuance of an order or within 30 days of an order issued on a

19  petition for rehearing of an order.

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

21  provider against another provider, the provider of service shall

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

23  including the alternative dispute process, if the provider

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

25  irrevocable letter of credit, or provided other adequate security

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

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

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

 2  an interconnection dispute between providers, the commission

 3  shall require the parties to utilize the alternative dispute

 4  process under section 203a.

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

 6  the commission or a party may seek to compel compliance with a

 7  commission order by proceedings in mandamus, injunction, or by

 8  other appropriate civil remedies in the circuit court or other

 9  court of proper jurisdiction.

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

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

12  the effective date of this subsection.  Upon the filing of a

13  motion for stay, the commission may, on terms as it considers

14  just, stay the effect or enforcement of an order, except an order

15  regarding rates or cost studies. A motion for stay, including a

16  request for setting the amount of any appeal bond, are governed

17  by the provisions for obtaining a stay of a civil action set

18  forth in rule 7.209 of the Michigan court rules. The commission

19  shall decide a motion for stay within 10 days from the date the

20  motion is filed with the commission.

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

22  $1,000.00  $25,000.00 or less, a dispute under section 203(14),

23  or  at the option of the complainant  upon the consent of all

24  parties after the complaint is filed, for a period of  45  60

25  days after the date the complaint is filed under section 203, the

26  parties shall attempt alternative means of resolving the

27  complaint.

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

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

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

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

 5  parties cannot agree on an alternative means within  20  10 days

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

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

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

 9  parties.

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

11  settlement, each party shall file with the commission a written

12  acceptance or rejection of the recommended settlement. If the

13  parties accept the recommendation, then the recommendation shall

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

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

16  the recommended settlement, then the application or complaint

17  shall proceed to a contested case hearing under section 203.

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

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

20  contested case hearing, including attorney fees, unless the final

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

22  than the recommended settlement under this section. A final order

23  is considered more favorable if it differs by 10% or more from

24  the recommended settlement in favor of the rejecting party.

25        (6) If the recommendation is not accepted under subsection

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

27  recommended settlement until they have issued their final order

 1  under section 203.

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

 3  section is exempt from the requirements of section 203 and the

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

 5  24.328.

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

 7  which the commission is required to issue its final order under

 8  section 203.

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

10  unable to agree on a matter relating to a regulated

11  telecommunication issue between the parties, including but not

12  limited to,  service or a matter prohibited by section 305, then

13  either telecommunication provider may file with the commission an

14  application for resolution of the matter.

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

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

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

18  the date the complaint was filed.

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

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

21  a regulated service violate this act,  or an order of the

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

23  the commission may require changes in how the telecommunication

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

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

26  and desist orders.

27        Sec. 209. (1) If the commission finds that a party's

 1  position in a proceeding under this act was frivolous, the

 2  commission shall award to the prevailing party the costs,

 3  including reasonable attorney fees, against the nonprevailing

 4  party and their attorney.

 5        (2) As used in this section:

 6        (a) "Frivolous" means that at least 1 of the following

 7  conditions is met:

 8        (i) The party's primary purpose in initiating the proceeding

 9  or asserting the defense was to harass, embarrass, or injure the

10  prevailing party.

11        (ii) The party had no reasonable basis to believe that the

12  facts underlying that party's legal position were true.

13        (iii) The party's legal position was devoid of arguable legal

14  merit.

15        (b) "Frivolous" does not mean a complaint filed to challenge

16  a rate alteration increase for basic local service if the

17  complaint has been reviewed by the commission and has not been

18  dismissed by the commission  pursuant to  under section  203(2)

19  203.

20        (c) "Prevailing party" means a party who wins in the

21  proceeding.

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

23  protective order, trade secrets and commercial or financial

24  information submitted under this act are exempt from the freedom

25  of information act,  Act No. 442 of the Public Acts of 1976,

26  being sections 15.231 to 15.246 of the Michigan Compiled Laws

27  1976 PA 442, MCL 15.231 to 15.246.

 1        (2) If information is disclosed pursuant to a mandatory

 2  protective order, then the information may be included in the

 3  commission's evidentiary record if admissible,  and remains  but

 4  shall remain confidential.

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

 6  customer usage data, marketing studies, and contracts between

 7  providers are trade secrets or commercial or financial

 8  information protected under subsection (1). The burden of

 9  removing the presumption under this subsection is with the party

10  seeking to have the information disclosed.

11        Sec. 211. Each telecommunication provider of a regulated

12  service in this state shall pay an assessment in an amount equal

13  to the expenses of the commission pursuant to  Act No. 299 of the

14  Public Acts of 1972, being sections 460.111 to 460.120 of the

15  Michigan Compiled Laws  1972 PA 299, MCL 460.111 to 460.120.

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

17  promulgate rules under the administrative procedures act of 1969,

18  1969 PA 306, MCL 24.201 to 24.328.

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

20  administrative rules shall not apply to telecommunication

21  providers or telecommunication services:

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

23  460.592.

24        (b) Intrastate telephone services and facilities: R 460.1951

25  to R 460.1968.

26        (c) Filing procedures for communications common carriers

27  tariffs: R 460.2051 to R 460.2057.

 1        (d) Consumer standards and billing practices, residential

 2  telephone service: R 460.2211 to R 460.2279.

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

 4  telephone companies: R 460.9041 and R 460.9059.

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

 6  are considered to have been promulgated under the authority

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

 8  484.455(3), 484.457(3), and 484.458(4) of the Michigan

 9  administrative code may not be enforced until a court determines

10  that the rules do not exceed the commission's authority under

11  this act. It is the legislature's intent that providers

12  voluntarily comply with the rules until a court makes a

13  determination. A provider that voluntarily agrees to abide by the

14  rules does not relinquish its rights to challenge the legality of

15  the rules.

16  (3)  (4) A proceeding before the commission to promulgate

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

18  date that the proceeding is initiated.

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

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

21  referral answering points established under subsection (3) and

22  prescribe appropriate interconnection orders to carry out the

23  intent of this section.

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

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

26  resource information and referral answering point established

27  under subsection (3).

 1        (3) The commission shall designate a community resource

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

 3  for various geographical areas within this state. In making its

 4  determination, the commission shall consider all of the

 5  following:

 6        (a) The recommendations of  the Michigan  alliance for

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

 8        (b) Whether the relevant state-endorsed  multipurpose

 9  community collaborative bodies are in agreement.

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

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

12  per day, 7 days per week.

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

14  Michigan alliance for information and referral systems.

15        (4) Each community resource information and referral entity

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

17  a particular geographical area within the state shall establish

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

19  1 telephone number 24 hours per day, 7 days per week.

20        (5) Within 90 days of the effective date of the amendatory

21  act that added this subsection, the commission shall designate an

22  entity to serve as the state 2-1-1 coordinating agency. The

23  designated agency shall assist and provide information and

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

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

26  services of the community resource information and referral

27  entities designated under subsection (3).

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

 2  implements a community resource information or referral service,

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

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

 5  under subsection (5).

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

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

 8  connecting regional community resource information and referral

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

10  of basic local exchange service in the state will reassign the

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

12  charge.

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

14  services within its incorporated boundaries if all of the

15  following apply:

16        (a) The public entity has issued a reasonable request for

17  bids to provide telecommunication services.

18        (b) The public entity has received less than 2 bids from

19  qualified private providers.

20        (c) It is more than 90 days from the date the request for

21  bids was issued.

22        (2) A provider awarded a contract to provide services under

23  subsection (1) shall begin to offer the services within 12 months

24  of the date of the contract. If the provider fails to offer

25  services as required by this subsection, the contract is void and

26  shall be awarded to the next higher qualified bidder. If the

27  conditions of subsection (1) are met, the public entity may offer

 1  the services.

 2        (3) A public entity shall not provide telecommunication

 3  services outside its incorporated boundaries.

 4        (4) Two or more public entities may jointly provide

 5  telecommunication services if all participating public entities

 6  meet the requirements of this section.

 7        (5) A public entity shall not establish a board or other

 8  entity for the purpose of providing oversight of a private

 9  provider of services under this section.

10        (6) This section does not apply to all of the following:

11        (a) Public safety systems.

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

13  entity.

14        (c) A public entity that is offering telecommunication

15  services to 10% or more of its population on the effective date

16  of the amendatory act that added this section.

17        (7) As used in this section, "public entity" means a county,

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

19  public entity.

20                 A. PRIMARY BASIC LOCAL EXCHANGE

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

22  or resell primary basic local exchange service in this state,

23  without a license issued from the commission  pursuant to  under

24  this act.

25        (2) Pending the determination of an application for a

26  license, the commission without notice and hearing may issue a

27  temporary license for a period not to exceed 1 year.

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

 2  approve an application for a license if the commission finds both

 3  of the following:

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

 5  and managerial resources and abilities to provide primary basic

 6  local exchange service  to all residential and commercial

 7  customers within the geographic area of the license and that the

 8  applicant intends to provide service within 1 year from the date

 9  the license is granted.

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

11  contrary to the public interest.

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

13  licenses and make all information contained in the licenses

14  available to the public.

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

16  the license at its principal place of business and make the

17  license available for review to the public.

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

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

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

21  the license was granted the provider has not marketed its

22  services to all potential customers or has refused to provide

23  services to certain customers.

24        (2) A telecommunication provider shall not provide basic

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

26  another telecommunication provider's licensed service area except

27  through interconnection arrangements as provided by this act.

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

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

 3  transfer of a license or a discontinuance of service.

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

 5  deny a proposed addition, elimination, or modification of an area

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

 7  shall conduct a public hearing in the affected geographic area

 8  before an addition, elimination, or modification of an area code

 9  is made in this state.

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

11  feasible, the commission shall issue orders requiring the

12  modification of all area code boundaries in this state to insure

13  that they conform to county lines.

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

15  rates for primary basic local exchange service shall be just and

16  reasonable. Each provider shall set the initial rates for primary

17  basic local exchange service to be effective no later than April

18  1, 2006. The initial rates may not exceed the rates for the

19  lowest cost calling plan of the provider in place before the

20  rates are set under this subsection unless the rates in place do

21  not exceed the total service long run incremental costs of the

22  rates.

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

24  exchange services by 1 or more of the following:

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

26  discount, or other rate reduction in a primary basic local

27  exchange rate. A rate alteration under this subdivision shall

 1  become effective without commission review or approval.

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

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

 4  consumer price index. Unless the commission determines that the

 5  rate alteration exceeds the allowed increase under this

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

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

 8  this subdivision, "consumer price index" means the most recent

 9  reported annual average percentage increase in the Detroit

10  consumer price index for all items for the prior 12-month period

11  by the United States department of labor.

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

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

14  rate established under subsection (1) or subdivision (c). A rate

15  alteration under this subdivision is effective without commission

16  review or approval.

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

18  primary basic local exchange rate in an amount greater than that

19  allowed under  subdivision (b)  subsection (1). The application

20  shall be accompanied with sufficient documentary support that the

21  rate alteration is just and reasonable. The commission shall make

22  a determination  within the 90-day period provided for in

23  subsection (5) of 1 of the following:

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

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

26  the rate alteration.

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

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

 2  304a  (2)(c) and shall be included in or on the bill of each

 3  affected customer of the provider at least 1 billing cycle before

 4  the effective date of the rate alteration.

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

 6  at least all of the following information:

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

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

 9  typical residential customer that would result by the rate

10  change.

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

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

13  commission. The statement shall also include the telephone number

14  and address of the commission. Complete details of the rate

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

16  the expense of the provider.

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

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

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

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

21  determination under subsection (2)(c), the commission may require

22  a filing under section 203 to review a proposed rate alteration

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

24  approve, modify, or reject the rate alteration.

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

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

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

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

 2  exchange services.

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

 4  other providers in this state for the same service.

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

 6  offered as a component of basic local exchange service.

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

 8  provide basic local exchange service in the geographic area of

 9  the proposed rate.

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

11  infrastructure of the geographic area of the proposed rate is

12  economically justifiable without the proposed rate.

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

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

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

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

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

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

19        (a) The provider provides basic local exchange service or

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

21  users in this state.

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

23  local exchange service, tone dialing, toll access service,

24  including end-user common line services and dialing parity at a

25  total price of no higher than the amount charged as of May 1,

26  2000.

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

 1  telecommunication relay, and emergency services to all basic

 2  local exchange end-users.

 3        (5) A provider may charge a late payment fee to customers

 4  who do not make timely payments of the outstanding balance of

 5  their account as provided in tariffs filed with the commission.

 6  (6)  (11) A call made to a local calling area adjacent to

 7  the caller's local calling area shall be considered a local call

 8  and shall be billed as a local call.

 9        (7) A provider not in compliance with subsection (6), or not

10  already the subject of a commission order on adjacent calling,

11  shall submit to the commission an adjacent calling plan to

12  implement subsection (6) no later than October 1, 2006. In

13  reviewing the plan, the commission shall give consideration to

14  the revenues lost and additional cost incurred by the provider in

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

16  find that the plan is not required because a cost benefit

17  analysis demonstrates that the plan is not in the best interest

18  of the customers.

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

20  combination, or bundle of telecommunication or other services

21  which includes primary basic local exchange service is not

22  subject to this section as long as the primary basic local

23  exchange service component of the package, combination, or bundle

24  is available for purchase on a stand-alone basis.

25        (9) A person with disabilities or who is voluntarily

26  providing a service for an organization classified by the

27  internal revenue service as a section 501(c)(3) or (19)

 1  organization, or a congressionally chartered veterans

 2  organization or their duly authorized foundations, is exempt from

 3  the 100 calls per month limitation and shall receive a flat rate

 4  allowing unlimited calls per month. A person exempt from the call

 5  cap under this subsection shall not be charged a rate greater

 6  than the flat rate charged residential customers for primary

 7  basic local exchange service.

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

 9  shall not do any of the following:

10        (a) Discriminate against another provider by refusing or

11  delaying access service to the local exchange.

12        (b) Refuse or delay interconnections or provide inferior

13  connections to another provider.

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

15  another provider.

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

17  by another provider.

18        (e) Develop new services to take advantage of planned but

19  not publicly known changes in the underlying network.

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

21  information regarding the technical design, equipment

22  capabilities and features, geographic coverage, and traffic

23  patterns of the local exchange network.

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

25  connecting another provider to the local exchange whose product

26  or service requires novel or specialized access service

27  requirements.

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

 2  manner all available information necessary for the design of

 3  equipment that will meet the specifications of the local exchange

 4  network.

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

 6  requests the information for commercial purposes in the

 7  dissemination of customer proprietary information. A provider

 8  shall provide without unreasonable discrimination or delay

 9  telephone directory listing information and related services to

10  persons purchasing telephone directory listing information to the

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

12  affiliates of the provider, or any other listing information

13  purchaser.

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

15  provider.

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

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

18  asset.

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

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

21  market value of the asset.

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

23  to another provider.

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

25  an order of the commission.

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

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

 1  the provider than the provider offers to other providers.

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

 3  alarm service over a similar service offered by another provider.

 4        (2) A provider of cellular telecommunication services shall

 5  not do either of the following:

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

 7  other terms and conditions on more favorable terms to an

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

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

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

11  directly or indirectly, to subsidize or offset the costs of

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

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

14  (2)  (3) Until a provider has complied with section 304a,

15  the The provider of a rate regulated service shall not provide

16  that service in combination with an unregulated service in

17  section 401 or an unbundled or resold service under section 357

18  at a price that does not exceed the total service long run

19  incremental cost of each service.

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

21  telecommunication provider of basic local exchange service is not

22  required to provide toll services. If a telecommunication

23  provider that provides basic local exchange service does not

24  offer toll or have interconnection with a toll provider, the

25  commission shall order a toll provider to interconnect with the

26  telecommunication provider upon terms that are fair to both

27  providers.

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

 2  authority to own, construct, and operate a telecommunication

 3  system or to purchase telecommunication services or facilities

 4  from an entity capable of providing the service or facility.

 5        (2) Educational institutions that provide telecommunication

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

 7  regulation under this act or by any other governmental unit.

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

 9  Educational institutions may only sell telecommunication services

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

11  including worker training, of students and other people utilizing

12  the institution's educational services, the conducting of

13  research, or the operation of the institution. The services shall

14  not be considered basic local exchange services as long as they

15  are used for the instruction and training of students and other

16  people utilizing the institution's education services, the

17  conducting of research, or the operation of the institution.

18  Educational institutions may initiate and maintain cooperative

19  arrangements with telecommunication providers without the

20  institutions being subject to this act.

21        (4) Upon the request of an educational institution,

22  telecommunication providers may provide to an educational

23  institution services for the transmission of interactive data,

24  voice and video communications between the institution's

25  facilities or to the homes of students or employees of the

26  institution, regardless of whether the exchanges are in the same

27  or different LATAs.

 1        (5) The rates for services provided to an educational

 2  institution by a provider under this section shall be determined

 3  by an open bid process.

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

 5  an educational institution has excess capacity, it may sell the

 6  excess capacity subject to subsection (3) and to both of the

 7  following:

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

 9  institution's total capacity.

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

11  long run incremental cost of the provider of basic local exchange

12  service in the service area of the educational institution. If

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

14  educational institution shall use the lowest total service long

15  run incremental cost.

16        (6) After July 1, 2006, an educational institution shall not

17  sell any excess capacity for purposes other than as allowed under

18  this section.

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

20  shall provide to each customer local directory assistance and, at

21  no additional charge to the customer, an annual printed telephone

22  directory.

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

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

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

26  provider may alter interzone service rates pursuant to provisions

27  of section 304.

 1  (2)  (3) A provider of basic local exchange service shall

 2  provide each customer at no additional charge the option of

 3  having access to 900 prefix services blocked through the

 4  customer's exchange service.

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

 6  including, basic local exchange service, may provide cable

 7  service if the provider has received a franchise agreement from

 8  the local unit of government to provide cable service.

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

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

11  service operating under a franchise agreement, in negotiating a

12  franchise agreement during the term of a franchise agreement

13  entered into prior to July 1, 1995, the local government unit may

14  consider terms and conditions of the franchise agreement of the

15  incumbent provider, existing cable franchise fees, development of

16  new services, the state of technology, and other factors.

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

18  commission shall not review or set the rates for toll access

19  services.

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

21  provider of toll access services shall set the rates for toll

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

23  provider that do not exceed the rates allowed for the same

24  interstate services by the federal government are  not just and

25  reasonable. In no event may end-user or subscriber line charges

26  exceed the rates allowed for the same interstate services by the

27  federal government as of May 1, 2000.  Providers may agree to a

 1  rate that is less than the rate allowed by the federal

 2  government.  If the providers cannot agree on a rate, a provider

 3  may apply to the commission under section 204.

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

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

 6  pooling of intrastate toll access service revenues.

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

 8  for intrastate access services any technical interconnection

 9  arrangements, including colocation required by the federal

10  government for the identical interstate access services.

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

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

13  and conditions, without unreasonable discrimination, to all

14  providers. All pricing of special toll access services and

15  switched access services, including volume discounts, shall be

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

17  conditions.  Until allowed by the federal communications

18  commission, volume discounts on switched access are prohibited

19  under this subsection.

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

21  provider receiving the reduced rate shall reduce its rate to its

22  customers by an equal amount. The commission shall investigate

23  and ensure that the provider has complied with this subsection.

24        (7)  A  After January 1, 2007, a provider of basic local

25  exchange service shall not assess or impose on end-users an

26  intrastate subscriber line charge or end-user line charge.

27        (8) If a provider is assessing or imposing an intrastate

 1  subscriber line charge or end user line charge on July 1, 2005,

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

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

 4  basic local exchange rate in an amount not to exceed the

 5  provider's intrastate subscriber line charge or end user line

 6  charge in effect on July 1, 2005. An increase under this

 7  subsection is considered just and reasonable under section

 8  304(2)(c)(i).

 9  (9)  (8)  This section shall not apply to basic local

10  exchange providers that have 250,000 or fewer customers in this

11  state.

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

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

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

15  the service on its routes of similar distance.

16  (2)  (3) The commission shall require that toll service is

17  universally available to all persons within the state.

18  (3)  (4) Upon commission review and approval, all providers

19  of toll service shall make available to their customers adjacent

20  exchange toll calling plans. All providers of toll service shall

21  inform their customers of the available plans that provide a

22  monthly allowance of toll calling to adjacent exchanges for which

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

24  inform their customers of the available plans. The plans required

25  under this subsection shall remain in effect under this act until

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

27  shall implement an optional discount plan for calling to

 1  exchanges within 20 miles of a customer's home exchange. The plan

 2  shall not violate the conditions delineated in the commission's

 3  order in case number U-9153, dated September 26, 1989.

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

 5  provider shall not charge a mandatory minimum monthly or

 6  mandatory flat-rate charge for toll calls except in connection

 7  with an optional discount toll calling plan.

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

 9  a telecommunication provider shall not discontinue basic local

10  exchange telecommunication service to the residence of a

11  qualifying customer who has made a filing under this section.

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

13  for telecommunication service under this section by notifying the

14  provider that the qualifying customer is in need of assistance

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

16  active duty status in the military.

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

18  call to active duty status from the qualifying customer. A

19  provider of service may also request verification of the

20  qualified customer's reduction in household income.

21        (4) A provider of service may require restrictions or

22  elimination of calling features or toll service as a condition of

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

24  under this section.

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

26  from the provider of service under this section for up to 90

27  days. Upon application to the provider, the provider may grant

 1  the qualifying customer 1 or more extensions.

 2        (6) A qualifying customer receiving assistance under this

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

 4  active duty status as soon as that status is known.

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

 6  provided under this section does not void or limit the obligation

 7  of the qualifying customer to pay for telecommunication services

 8  received during the time of assistance.

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

10  of the qualifying customer, a provider shall do all of the

11  following:

12        (a) Create a repayment plan requiring minimum monthly

13  payments that allows the qualifying customer to pay any past due

14  amounts over a reasonable time period not to exceed 1 year.

15        (b) Provide a qualifying customer with information regarding

16  any governmental, provider, or other assistance programs.

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

18  rules or orders pertaining to billing standards. If the terms and

19  conditions arranged by the provider with the qualifying customer

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

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

22  billing standards for basic residential telecommunication

23  service.

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

25  all of the following:

26        (a) A residential household where the income is reduced

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

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

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

 3  declared national or state emergency or war.

 4        (b) Assistance is needed by the residential household to

 5  maintain telecommunication service.

 6        (c) The residential household notifies the provider of the

 7  need for assistance and provides verification of the call to

 8  active duty status.

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

10  impaired.

11          E. SERVICES FOR THE HARD OF HEARING  IMPAIRED

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

13  basic local exchange service to provide a text telephone-

14  telecommunications device for the deaf at costs to each

15  individual who is certified as deaf or  severely hearing-  hard

16  of hearing or speech-impaired by a licensed physician, licensed

17  audiologist, or qualified state agency, and to each public safety

18  answering point as defined in section 102 of the emergency

19  telephone service enabling act,  Act No. 32 of the Public Acts of

20  1986, being section 484.1102 of the Michigan Compiled Laws   1986

21  PA 32, MCL 484.1102.

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

23  local exchange service to provide a telecommunication relay

24  service whereby persons using a text telephone-telecommunications

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

26  telephone through the use of third party intervention or

27  automated translation. Each provider of basic local exchange

 1  service shall determine whether to provide a telecommunication

 2  relay service on its own, jointly with other basic local exchange

 3  providers, or by contract with other telecommunication providers.

 4  The commission shall determine the technical standards and

 5  essential features of text telephone and telecommunication relay

 6  service to ensure their compatibility and reliability.

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

 8  consisting of a representative of the deaf community, the

 9  commission staff, and providers of basic local exchange service

10  to assist in administering this section. The advisory board shall

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

12  shall periodically seek input on the administration of this

13  section from members of the deaf, hearing, or speech impaired

14  community, and shall report to the commission at least annually.

15  The advisory board shall investigate and make recommendations on

16  the feasibility of hiring a reasonably prudent number of people

17  from the deaf or hearing impaired and speech impaired community

18  to work in the provision of telecommunication relay service.

19        (3) The Michigan telecommunication relay service advisory

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

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

22  his or her designated representative. One member shall the

23  director of the division on deaf and hard of hearing within the

24  department or his or her designated representative. One member

25  shall be a deaf consumer appointed by the director of the

26  department upon the recommendation of the Michigan deaf

27  association. One member shall be a hard of hearing consumer

 1  appointed by the department upon the recommendation of Michigan

 2  self-help for hard of hearing. One member shall be a speech

 3  impaired consumer appointed by the director of the department.

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

 5  to represent telecommunication providers. Appointed members shall

 6  be appointed for terms of 4 years. A vacancy on the board shall

 7  be filled in the same manner as the original appointment for the

 8  remainder of the unexpired term.

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

10  members a chairperson and vice-chairperson, who shall serve for

11  2-year terms and who may be reelected. The board shall meet not

12  less than 4 times each year. Special meetings may be called by

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

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

15  chairperson.

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

17  but shall be reimbursed for actual and necessary expenses.

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

19  department. Assistance shall also be made available, as requested

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

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

22  performance of its duties, subject to civil service rules and

23  within fiscal restraints.

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

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

26  voting shall be required to pass upon any question, action, or

27  business of the board.

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

 2  at a public meeting of the board. The board shall keep minutes of

 3  its proceedings, showing the vote of each member on each

 4  proposition or question, or indicating if a member is absent or

 5  fails to vote. A record of board action and business shall be

 6  made and maintained.

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

 8  or retained by the board in the performance of an official

 9  function shall be made available to the public.

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

11  telecommunication relay service shall not exceed the rates and

12  charges for calls placed directly from the same originating

13  location to the same terminating location. Unless ordered by the

14  commission, a provider of a telecommunications relay service

15  shall not be required to handle calls from public telephones

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

17  third party number.

18  (11)  (5) Notwithstanding any other provision of this act,

19  a provider may offer discounts on toll calls where a text

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

21  commission shall not prohibit such discounts on toll calls placed

22  through a telecommunication relay service.

23  (12)  (6) The commission shall establish a rate for each

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

25  costs incurred under this section and may waive the costs

26  assessed under this section to individuals who are deaf or

27  severely hearing impaired or speech impaired.

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

 2  a study and report to the governor and the house and senate

 3  standing committees with oversight of telecommunication issues on

 4  the ability for deaf, hard of hearing, and speech impaired

 5  customers to access telecommunication services. The report shall

 6  include, but is not limited to, activities by the commission to

 7  ensure reasonable access, impediments to access, identification

 8  of activities in other states to improve access, and

 9  recommendations for legislation, if any.

10        (14) As used in this section:

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

12  service advisory board created under subsection (3).

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

14  growth.

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

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

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

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

19  by the commission to provide a subsidy to customers for the

20  provision of supported telecommunication services provided by any

21  telecommunication carrier.

22        (c) "Supported telecommunication services" means primary

23  residential access lines and a minimum level of local usage on

24  those lines, as determined by the commission.

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

26  supported telecommunication services by any carrier.

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

 1  initiate an investigation to determine whether an intrastate

 2  universal service fund should be created. The commission shall

 3  complete the investigation no sooner than December 1, 2002. All

 4  providers shall be made respondents in the proceeding and any

 5  other interested party may participate and intervene in the

 6  proceeding.

 7  (2)  (3) The commission shall determine for each provider

 8  whether and to what extent the affordable rate level to provide

 9  supported telecommunication services is below each provider's

10  forward looking economic cost of the supported telecommunication

11  services.

12  (3)  (4) If  a  an intrastate universal fund is created

13  under this section, to the extent providers provide supported

14  telecommunication services at an affordable rate that is below

15  the forward looking economic cost of the supported

16  telecommunication services, the fund shall provide a subsidy for

17  customers in an amount which is equal to the difference between

18  the affordable rate as determined by the commission and the

19  forward looking economic cost of the supported services, less any

20  federal universal service support received for those supported

21  services.

22  (4)  (5) Eligibility for customers to receive intrastate

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

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

25  the telecommunications act of 1996 and the rules and regulations

26  of the federal communications commission. The state fund shall be

27  administered by an independent third-party administrator selected

 1  by the commission.

 2  (5)  (6) To the extent an intrastate universal service fund

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

 4  the fund be recovered from all telecommunication providers on a

 5  competitively neutral basis. Providers contributing to the

 6  intrastate universal service fund may recover from end-users the

 7  costs of the financial support through surcharges assessed on

 8  end-users' bills.

 9  (6)  (7) Upon request or on its own motion, the commission,

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

11  in technology or other factors, the findings made under this

12  section should be reviewed.

13  (7)  (8) This section does not apply if an interstate

14  universal service fund exists on the federal level unless

15  otherwise approved by the commission.

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

17  requirements for operator service providers. The requirements

18  shall include the following:

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

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

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

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

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

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

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

26  telephone number. The operator service provider shall require by

27  contract that the entity receiving the information display the

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

 2  the service.

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

 4  service provider shall do all of the following:

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

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

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

 8  charged by the operator service provider.

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

10  choice by doing either of the following:

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

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

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

14  the carrier of his or her choice without charge.

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

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

17  service method.

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

19  emergency services without charge.

20  (1)  (2) An operator service provider shall not provide

21  operator services in this state without first registering with

22  the commission. The registration shall include the following

23  information:

24        (a) The name of the provider.

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

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

27  address of the registered office and the name of the registered

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

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

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

 4  registration fee of $100.00.

 5  (3)  (4) The registration is effective immediately upon

 6  filing with the commission and the payment of the registration

 7  fee and shall remain in effect for 1 year from its effective

 8  date.

 9  (4)  (5) A registration may be renewed for 1 year by filing

10  with the commission a renewal registration on a form provided by

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

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

13  provider under this section shall not charge a rate for operator

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

15  average rate for operator or toll service by providers of

16  regulated toll service.

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

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

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

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

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

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

23  actual damages or $250.00, whichever is greater, plus all

24  reasonable attorney fees.

25        Sec. 318. (1) A provider of basic local exchange service

26  shall not discriminate in favor of its or an affiliate's payphone

27  service over similar services offered by another provider.

 1        (2) A provider of payphone service shall comply with all

 2  nonstructural safeguards adopted by the federal communications

 3  commission for payphone service.

 4        Sec. 320. (1) A person shall not provide payphone service in

 5  this state without first registering with the commission. The

 6  registration shall include all of the following information:

 7        (a) The name of the provider.

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

 9  principal office.

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

11  address and telephone number of the registered office and the

12  name and telephone number of the registered agent authorized to

13  receive service of process in this state.

14        (d) The specific location of each payphone in this state

15  owned or operated by the provider. Information required under

16  this subdivision shall be made available to the local unit of

17  government solely for the enforcement of the reporting,

18  repairing, and replacement standards under subsection (8). The

19  information required to be provided under this subsection shall

20  be considered commercial information under section 210, and the

21  information submitted shall be exempt from the freedom of

22  information act,  Act No. 442 of the Public Acts of 1976, being

23  sections 15.231 to 15.246 of the Michigan Compiled Laws  1976 PA

24  442, MCL 15.231 to 15.246.

25        (2) The registration shall be accompanied by a registration

26  fee of $100.00.

27        (3) The registration is effective immediately upon filing

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

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

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

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

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

 6        (5) The commission shall establish a toll-free number that

 7  can be dialed to report to the commission a payphone that is

 8  inoperative. The toll-free number shall be conspicuously

 9  displayed by the provider on or near each payphone.

10        (6) If the commission receives a report pursuant to

11  subsection (5), it shall immediately notify the provider of the

12  inoperative payphone.

13        (7) After consulting with providers of payphone service,

14  local units of government, and other interested parties, the

15  commission shall promulgate rules or issue orders under section

16  213 to establish and enforce quality standards in the providing

17  of payphone service.

18        (8) Except as provided in subsection (9), a local unit of

19  government shall not regulate payphone service.

20        (9) A local unit of government may enforce the reporting,

21  repairing, and replacement of inoperative payphones within its

22  jurisdiction by adopting an ordinance that conforms to the

23  standards established by the commission under subsection (7). A

24  local unit of government shall not impose standards greater than

25  these established by the commission.

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

27  a  A provider of a regulated telecommunication service shall not

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

 2  long run incremental cost of providing the service.

 3        Sec. 351.  Until January 1, 2000 and except  Except for

 4  section 361, this article does not apply to providers who,

 5  together with any affiliated providers, provide basic local

 6  exchange service or basic local exchange and toll service to less

 7  than 250,000 end-users in this state on January 1, 1996.

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

 9  provider of basic local exchange service for interconnection

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

11  run incremental cost of providing the service.  After January 1,

12  1997, the  The rate for interconnection shall be just and

13  reasonable as determined by the commission.

14        (2) The rates for unbundled loops, number portability, and

15  the termination of local traffic shall be the rates established

16  under commission case U-10647 and shall remain in effect until

17  new total service long run incremental cost studies for such

18  services have been approved by the commission.

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

20  recommendations to the legislature and the governor on or before

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

22  conditions of interconnection of telecommunication providers with

23  the basic local exchange service.

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

25  of basic local exchange service shall unbundle and separately

26  price each basic local exchange service offered by the provider

27  into the loop and port components and allow other providers to

 1  purchase such services on a nondiscriminatory basis.

 2        (2) Unbundled services and points of interconnection shall

 3  include at a minimum the loop and the switch port.

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

 5  make available for resale on nondiscriminatory terms and

 6  conditions all basic local exchange services that on January 1,

 7  1996 it is offering to its retail customers. Resale shall be

 8  provided on a wholesale basis.

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

10  exchange service may include in its wholesale tariffs any use or

11  class of customer restrictions it includes in its retail tariffs.

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

13  offer for resale either of the following:

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

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

16  promotional or discounted offering of basic local exchange

17  service.

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

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

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

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

22  local exchange service shall file tariffs with the commission

23  which set forth the wholesale rates, terms, and conditions for

24  basic local exchange services. The wholesale rates shall be set

25  at levels no greater than the provider's current retail rates

26  less the provider's avoided costs.

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

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

 2  incremental cost of the services.

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

 4  means the capability for a local exchange customer at a

 5  particular location to change providers of basic local exchange

 6  service without any change in the local exchange customer's

 7  telephone number, while preserving the full range of

 8  functionality that the customer could obtain by changing

 9  telephone numbers.

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

11  local exchange service shall provide number portability at a rate

12  approved by the commission.

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

14  technologically feasible to provide number portability before the

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

16  providers of basic local exchange service to provide the service

17  before that date.

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

19  basic local exchange service shall make available to other

20  providers direct inward dialing and remote call forwarding.

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

22  otherwise provided by federal law, a provider of basic local

23  exchange service shall establish a rate charge for other

24  providers of basic local exchange service for the termination of

25  local traffic on its network as provided under section 352.

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

27  exchange service from entering into an agreement to provide for

 1  the exchange of local traffic on other terms and conditions. Any

 2  compensation arrangements agreed to between providers under this

 3  subsection shall be available to other providers with the same

 4  terms and conditions on a nondiscriminatory basis.

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

 6  preempted by federal law, the commission shall not have authority

 7  over enhanced services, services other than basic local exchange

 8  services, paging, cellular, mobile,  and answering services,

 9  broadband, video, cable service, pay-per-view, shared tenant,

10  private networks, financial services networks, radio and

11  television, WATS, personal communication networks, municipally

12  owned telecommunication system, 800 prefix services, burglar and

13  fire alarm services, energy management services, except for state

14  institutions of higher education the reselling of centrex or its

15  equivalent, payphone services, and the reselling of an unlicensed

16  telecommunication service. The foregoing services shall not be

17  considered part of basic local exchange service.

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

19  commission shall  not have  the authority over  a  only the

20  telecommunication  service not  services specifically provided

21  for in this act.

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

23  shall not do any of the following:

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

25  omission of material information, regarding the rates, terms, or

26  conditions of providing a telecommunication service that is

27  false, misleading, or deceptive.

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

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

 3  refuse an offered or proposed subscribed service is not an

 4  affirmative order for the service.

 5        (c) If an end-user has canceled a service in compliance with

 6  a tariff or contract, charge the end-user for service provided

 7  after the effective date the service was canceled.

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

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

10  service is ordered.

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

12  service or other regulated service will be discontinued unless

13  the end-user pays a charge that is due for an unregulated

14  service.

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

16  another by false, deceptive, or misleading representation of

17  fact.

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

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

20  or on behalf of the party when they are not.

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

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

23  transaction by making a false, deceptive, or misleading

24  statement.

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

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

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

 1  will not be so provided.

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

 3  nature of a sales presentation.

 4        (k) Make the availability of an unregulated service

 5  contingent on the purchase of a regulated service.

 6        (l) Impose fines or charges for early termination of a

 7  service contract that exceed the amount of profits that the

 8  provider would have received had the contract been fully

 9  completed.

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

11  for violation of this section, the commission may accept an

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

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

14  is alleged to have engaged, be engaging, or be about to engage in

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

16  admission of guilt or be introduced in any other proceeding.

17  Unless rescinded by the parties or voided by the court for good

18  cause, the assurance may be enforced in the circuit court by the

19  parties to the assurance. The assurance may include a stipulation

20  for any of the following:

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

22  investigation.

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

24  action.

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

26        Sec. 503. (1) The commission shall promulgate rules that

27  establish privacy guidelines in the providing of

 1  telecommunication services  basic local exchange service.

 2        (2) The rules promulgated under this section shall include,

 3  but need not be limited to, protections against the releasing of

 4  certain customer information and customer privacy intrusions.

 5        (3) A person who obtains an unpublished telephone number

 6  using a telephone caller identification service shall not do any

 7  of the following without the written consent of the customer of

 8  the unpublished telephone number:

 9        (a) Disclose the unpublished telephone number to another

10  person for commercial gain.

11        (b) Use the unpublished telephone number to solicit

12  business.

13        (c) Intentionally disclose the unpublished telephone number

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

15  similar mechanism.

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

17  shall not be switched to another provider without the

18  authorization of the end user.

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

20  user of a telecommunications provider is not switched to another

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

22  confirmation, confirmation through an independent third party, or

23  other verification procedures subject to commission approval,

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

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

26  order issued under this section shall require that all providers

27  comply with the regulations established by the federal

 1  communications commission on verification procedures for the

 2  switching of an end user's telecommunications provider.

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

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

 5  telecommunications service.

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

 7  person that provides 1 or more telecommunications services for

 8  compensation. Telecommunications provider does not include a

 9  provider of commercial mobile service as defined in section

10  332(d)(1) or part I of title III of the communications act of

11  1934, chapter 652, 96 Stat. 1096, 47 U.S.C. 332.

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

13  person has violated this act, the commission shall order remedies

14  and penalties to protect and make whole ratepayers and other

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

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

17  following:

18        (a) Except as provided in subdivision (b), the person to pay

19  a fine for the first offense of not less than $1,000.00 nor more

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

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

22  $2,000.00 nor more than $40,000.00 per day.

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

24  provider to pay a fine for the first offense of not less than

25  $200.00 or more than $500.00 per day that the provider is in

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

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

 1        (c) A refund to the ratepayers of the provider of any

 2  collected excessive rates.

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

 4  person's license is revoked.

 5        (e) Cease and desist orders.

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

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

 8  110 Stat. 66, attorney fees and actual costs of a person or a

 9  provider of less than 250,000 end-users.

10        Sec. 602. The commission shall assure that none of the

11  amounts paid pursuant to section 601 or any other related defense

12  costs are passed through to the provider's customers in any

13  manner.

14        Sec. 603. The following acts and parts of acts are repealed:

15 Year Public Act Section Compiled Law

16 of Act Number Numbers Sections (1979)

17 1883 72 484.51

18 1913 206 1 to 3f 484.101 to 484.103f

19 4 to 11a 484.104 to 484.111a

20 12 to 14 484.112 to 484.114

21 19 to 24 484.119 to 484.124

22 26 484.126

23 1913 383 469.491 to 469.493

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

25  2009.

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

 1  319, 322, 354, 360, 504, and 701 of the Michigan

 2  telecommunications act, 1991 PA 179, MCL 484.2207, 484.2208,

 3  484.2304a, 484.2304b, 484.2312a, 484.2319, 484.2322, 484.2354,

 4  484.2360, 484.2504, and 484.2701, are repealed.