April 30, 2014, Introduced by Reps. Oakes, Tlaib, LaVoy, Dianda, Talabi, Lipton, Abed and Segal and referred to the Committee on Energy and Technology.
A bill to amend 1991 PA 179, entitled
"Michigan telecommunications act,"
by amending sections 103, 304, 310, 313, 317, 320, and 502 (MCL
484.2103, 484.2304, 484.2310, 484.2313, 484.2317, 484.2320, and
484.2502), as amended by 2014 PA 52.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
103. (1) Except as otherwise provided in this act, this
act shall not be construed to prevent any person from providing
telecommunication services in competition with another
telecommunication provider.
(2)
The commission shall maintain a publicly available
database
of providers in each exchange that are licensed to or
otherwise
provide toll and local exchange service in this state.
(3)
A provider shall submit to the commission all information
requested
by the commission necessary for the preparation and
maintenance
of the database under this section.
Sec. 304. (1) A call made to a local calling area adjacent to
the caller's local calling area is considered a local call and
shall be billed as a local call. Effective December 31, 2007, a
call made to a called party who is not located within the
geographic area of the caller's local calling area or an adjacent
local calling area as defined by the commission's order in case
numbers U-12515 and U-12528, dated February 5, 2001, is not a local
call
if the tariff , service guide, or similar document containing
the
terms and conditions of the
provider originating the call does
not classify the call as a local call.
(2) A provider of basic local exchange service with less than
10,000 end-users in this state may determine that their total
service long run incremental cost is the same as that of a provider
with more than 250,000 end-users.
Sec. 310. (1) Except as provided by this section, the
commission shall not review or set the rates for toll access
services.
(2) A provider of toll access services shall set the rates for
intrastate switched toll access services at rates that do not
exceed the rates allowed for the same interstate services by the
federal government and shall use the access rate elements for
intrastate switched toll access services that are in effect for
that provider and are allowed for the same interstate services by
the federal government. Eligible providers shall comply with this
subsection as of the date established for the commencement of the
operation of the restructuring mechanism under subsection (9).
Providers other than eligible providers shall not charge intrastate
toll access service rates in excess of those rates in effect as of
July 1, 2009 and shall reduce the differential, if any, between
intrastate and interstate switched toll access service rates in
effect as of July 1, 2009 in no more than 5 steps of at least 20%
each of the differential on the following dates: January 1, 2011;
January 1, 2012; January 1, 2013; January 1, 2014; and January 1,
2015. Providers may agree to a rate that is less than the rate
allowed by the federal government.
(3) Two or more providers that each have less than 250,000
access lines may agree to joint toll access service rates and
pooling of intrastate toll access service revenues.
(4) A provider of toll access services shall make available
for intrastate access services any technical interconnection
arrangements, including colocation required by the federal
government for the identical interstate access services.
(5) A provider of toll access service, whether under tariff or
contract, shall offer the services under the same rates, terms, and
conditions, without unreasonable discrimination, to all providers.
All pricing of special toll access services and switched access
services, including volume discounts, shall be offered to all
providers under the same rates, terms, and conditions.
(6) If a toll access service rate is reduced, then the
provider receiving the reduced rate shall reduce its rate to its
customers by an equal amount. The commission may investigate and
ensure that the provider has complied with this subsection.
(7) In order to restructure intrastate switched toll access
service rates, there is hereby established in the department of
licensing and regulatory affairs an intrastate switched toll access
rate restructuring mechanism as a separate interest-bearing fund.
The state treasurer shall direct the investment of the
restructuring mechanism. Money in the restructuring mechanism shall
remain in the restructuring mechanism at the close of the fiscal
year and shall not revert to the general fund.
(8) An eligible provider is entitled to receive monthly
disbursements from the restructuring mechanism as provided in
subsection (11) in order to recover the lost intrastate switched
toll access service revenues resulting from rate reductions under
subsection (2).
(9) The restructuring mechanism shall be administered by the
commission. The restructuring mechanism shall be established and
shall begin operation by September 13, 2010. Subject to the
preceding sentence, the commission shall establish the date for
commencing the operation of the restructuring mechanism and shall
notify the participants in the restructuring mechanism at least 30
days in advance of that date. The commission shall recover its
actual costs of administering the restructuring mechanism from
assessments collected for the operation of the restructuring
mechanism.
(10) The commission shall establish the procedures and
timelines for organizing, funding, and administering the
restructuring mechanism. The commission shall report to the
legislature and the governor annually regarding the administration
of the restructuring mechanism. The report shall include the total
amount of money collected from contributing providers, the total
amount of money disbursed from the restructuring mechanism annually
to each eligible provider, the costs of administration, and any
other
information considered relevant by the commission. The report
shall
also identify any duplicative costs or revenues that are
already
being recovered by eligible providers through federal
access
recovery charges or the connect America fund. If the
commission
identifies duplicative recovery, the commission shall
notify
the federal communications commission and all contributing
providers.
Any duplicative recovery identified by the commission is
not
exempt from public disclosure under section 210. Beginning with
the
first report following the recalculation required under
subsection
(16), the annual report shall include recommendations
for
altering the restructuring mechanism, based on the results of
the
recalculation and the state and federal regulations in effect
at
the time, to ensure that the restructuring mechanism is still
achieving
the purposes for which it was originally established. Any
company-specific information pertaining to access lines, switched
toll access services minutes of use, switched toll access demand
quantities, contributions, and intrastate telecommunication
services revenues submitted to the commission under this subsection
are confidential commercial or financial information and exempt
from public disclosure under section 210.
(11) The initial size of the restructuring mechanism shall be
calculated as follows:
(a) By February 15, 2010 each eligible provider shall submit
to the commission information and all the supporting documentation
that establishes the amount of the reduction in annual intrastate
switched toll access revenues that will result from the reduction
in rates required in subsection (2). The reduction shall be
calculated for each eligible provider as the difference between
intrastate and interstate switched toll access service rates in
effect as of July 1, 2009, multiplied by the intrastate switched
access minutes of use and other switched access demand quantities
for the calendar year 2008.
(b) The commission shall compute the size of the initial
restructuring mechanism disbursements for each eligible provider
and shall inform each eligible provider of that computation within
60 days after receiving the information and supporting
documentation from the eligible providers under subdivision (a).
(12) The restructuring mechanism shall be created and
supported by a mandatory monthly contribution by all providers of
retail intrastate telecommunication services and all providers of
commercial mobile service. Interconnected voice over internet
protocol services shall not be considered an intrastate
telecommunication service for the purposes of this section and
interconnected voice over internet protocol service providers shall
not be required to pay, directly or indirectly, the mandatory
monthly contributions established in this subsection. A provider of
telecommunication services to a provider of interconnected voice
over internet protocol services shall not pay a mandatory monthly
contribution related to those interconnected voice over internet
protocol services or attempt to pass through any mandatory monthly
contributions, directly or indirectly, to a provider of
interconnected voice over internet protocol services. Nothing in
this act grants the commission authority over commercial mobile
service providers or voice over internet protocol service providers
except as is strictly necessary for administration of the
restructuring mechanism.
(13) By February 15, 2010, each contributing provider shall
report its 2008 intrastate retail telecommunication services
revenues to the commission. Notwithstanding anything in subsection
(12), if the federal communications commission determines that
interconnected voice over internet protocol services may be subject
to state regulation for universal services purposes, the commission
may open a proceeding to determine who is required to participate
in a universal service fund.
(14) The initial contribution assessment percentage shall be a
uniform percentage of retail intrastate telecommunication services
revenues determined by projecting the total amount necessary to
cover the initial intrastate switched toll access rate
restructuring mechanism disbursement levels for 12 months,
including projected cash reserve requirements, actual and projected
administrative costs, and projected uncollectible contribution
assessments, divided by the 2008 calendar year total retail
intrastate telecommunication services revenues in this state, less
projected uncollectible revenues, reported to the commission. The
commission shall issue an order establishing the initial
calculation of the contribution assessment percentage by May 16,
2010. The commission may increase or decrease the contribution
assessment on a quarterly or other basis as necessary to maintain
sufficient funds for disbursements.
(15) Each contributing provider shall remit to the commission
on a monthly basis an amount equal to its intrastate retail
telecommunication services revenues, less uncollectible revenues,
multiplied by the contribution assessment percentage determined
under subsection (14), according to a time frame established by the
commission. These contributions shall continue until the end of the
period for which eligible providers are entitled to receive monthly
disbursements from the restructuring mechanism under subsections
(11) and (16).
(16) The commission shall recalculate the size of the
restructuring
mechanism for each eligible provider on March 13,
2018.
4 years from the date the
initial restructuring mechanism
becomes operational pursuant to subsection (9) and again 4 years
thereafter. The recalculation process shall be as follows:
(a) The restructuring mechanism shall be recalculated each
time as the difference between the intrastate switched toll access
rates in effect as of July 1, 2009 and the interstate switched toll
access rates in effect at the time of the recalculation, multiplied
by the intrastate switched toll access minutes of use and other
switched access demand quantities for the calendar year 2008.
(b) The recalculated restructuring mechanism shall be further
adjusted during the first recalculation by the percentage change,
if any, in the number of access lines in service for each eligible
provider from December 31, 2008 to December 31 of the year
immediately preceding the year in which the adjustment is made.
(c) The recalculated restructuring mechanism shall be adjusted
during the second recalculation by the percentage change, if any,
in the number of access lines in service for each eligible provider
from December 31 of the year of the first recalculation to December
31 of the year immediately preceding the second recalculation.
(d)
(c) Each eligible provider is entitled to receive
monthly
disbursements from the restructuring mechanism for a period of no
more than 12 years from the date the restructuring mechanism is
established under subsection (9), at which time the restructuring
mechanism shall cease to exist.
(d)
The commission shall reduce the amount of the monthly
disbursement
to an eligible provider from the restructuring
mechanism
on a pro rata basis for each exchange in which the
provider
discontinues basic local exchange service under section
313.
A reduction under this subsection is effective on the date of
the
discontinuance of service.
(17) The money received and administered by the commission for
the support and operation of the restructuring mechanism created by
2009 PA 182 shall not be used by the commission or any department,
agency, or branch of the government of this state for any other
purpose, and that money is not subject to appropriation,
allocation, assignment, expenditure, or other use by any
department, agency, or branch of the government of this state.
(18) If the federal government adopts intercarrier
compensation reforms or takes any action that causes or requires a
significant change in interstate switched toll access service
rates, the commission may initiate, or any interested party may
file an application for, a proceeding under section 203 within 60
days of that action to determine whether any modifications to the
size, operation, or composition of the restructuring mechanism are
warranted. During the pendency of that proceeding, the requirement
in subsection (2) for eligible providers to set intrastate switched
toll access service rates equal to interstate switched toll access
service shall be temporarily suspended by those providers.
Intrastate access rates may not be increased above the levels that
exist at the time of the suspension. Following notice and hearing,
upon a showing of good cause, the commission may stop or place
certain conditions on the temporary suspension.
(19) If the federal government changes the federal universal
service contribution methodology so that it is not based on a
percentage of total interstate telecommunication services revenues,
the commission shall modify the contribution methodology for the
restructuring mechanism to be consistent with the federal
methodology. The commission shall initiate a proceeding to modify
the contribution methodology for the restructuring mechanism and to
establish a reasonable time period for transition to the new
contribution methodology.
(20) Disputes arising under this section may be submitted to
the commission for resolution under sections 203 and 204.
(21) If any contributing provider subject to this section
fails to make the required contributions or fails to provide
required information to the commission, the commission shall
initiate an enforcement proceeding under section 203. If the
commission finds that a contributing provider has failed to make
contributions or to perform any act required under this section, a
contributing provider is subject to the remedies and penalties
under section 601.
(22) Eligible providers and contributing providers shall
provide information to the commission that is required for the
administration of the restructuring mechanism. Company-specific
information pertaining to access lines, switched toll access
services minutes of use, switched toll access demand quantities,
contributions, and intrastate telecommunication services revenues
submitted to the commission under this subsection is confidential
commercial or financial information and exempt from public
disclosure under section 210.
(23) As used in this section:
(a) "Commercial mobile service" means that term as defined in
section 332(d)(1) of the telecommunications act of 1996, 47 USC
332.
(b) "Contributing provider" means an entity required to pay
into the restructuring mechanism.
(c) "Eligible provider" means an incumbent local exchange
carrier as defined in section 251(h) of the telecommunications act
of 1996, 47 USC 251, that as of January 1, 2009 had rates for
intrastate switched toll access services higher than its rates for
the same interstate switched toll access services, and that
provides the services and functionalities identified by rules of
the federal communications commission described at 47 CFR
54.101(a).
(d) "Interconnected voice over internet protocol service"
means that term as defined in 47 CFR 9.3.
(e) "Restructuring mechanism" means the intrastate switched
toll access rate restructuring mechanism established in this
section.
Sec. 313. (1) A telecommunication provider that provides
either basic local exchange or toll service, or both, shall not
discontinue either service to an exchange unless 1 or more
alternative providers for toll service, or 2 or more alternative
providers for basic local exchange service, are furnishing a
comparable voice service to the customers in the exchange. A
comparable voice service includes any 2-way voice service offered
through any form of technology that is capable of placing and
receiving calls from a provider of basic local exchange service,
including voice over internet protocol services and wireless
services.
(2) A telecommunication provider proposing to discontinue a
regulated service to an exchange shall file a notice of the
discontinuance of service with the commission, publish the notice
in a newspaper of general circulation within the exchange, provide
notice to each of its customers within the exchange by first-class
mail or within customer bills, and provide other reasonable notice
as required by the commission.
(3) Within 60 days after the date of publication or receipt of
the notice required by subsection (2), a person or other
telecommunication provider affected by a discontinuance of services
by a telecommunication provider may apply to the commission to
determine if the discontinuance of service is authorized under this
act. Within 90 days after the date of publication of the notice
required by subsection (2), the commission may, in response to a
request or on its own initiative, commence a proceeding to
determine if the discontinuance of service is authorized under this
act. The commission has 180 days from the date any proceeding is
initiated under this subsection to issue its final order. A
provider shall not discontinue service unless it has provided at
least 60 days' notice to each customer after a commission order has
been issued under this subsection or after the last day for
initiating a proceeding under this subsection.
(4) Discontinuance of basic local exchange service under this
section by an incumbent local exchange carrier does not affect the
requirements of that incumbent local exchange carrier under federal
law. and
this act. As used in this subdivision, subsection,
"incumbent local exchange carrier" means that term as defined in
section 251(h) of the telecommunications act of 1996, 47 USC 251.
This
section does not create, restrict, or expand the commission's
jurisdiction
and authority for any of the following:
(a)
The jurisdiction and authority established under section
201.
(b)
The jurisdiction and authority to carry out the
commission's
obligations to enforce the rights, duties, and
obligations
of an entity that are established in sections 251 and
252
of the telecommunications act of 1996, 47 USC 251 and 252, and
any
applicable agreement or wholesale tariff or state law, rule,
regulation,
or order related to wholesale rights, duties, and
obligations,
including, but not limited to, interconnection and
exchange
voice traffic.
(c)
The jurisdiction and authority to regulate switched access
rates,
terms, and conditions, including the implementation of
federal
or state law concerning intercarrier compensation.
(5)
Subsections (1) to (3) do not apply after December 31,
2016.
Beginning January 1, 2017, a telecommunication provider that
provides
basic local exchange or toll service may discontinue that
service
in an exchange by doing each of the following:
(a)
At the same time as filing a petition under section 214 of
the
telecommunications act of 1996, 47 USC 214, all of the
following:
(i) File a notice of the proposed discontinuance of
service
with
the commission.
(ii) Publish a notice of the proposed discontinuance of
service
in
a newspaper of general circulation within the exchange.
(iii) Provide notice of the proposed discontinuance of
service
to
each of the telecommunication provider's customers within the
exchange
by first-class mail or within customer bills.
(iv) Provide notice of the proposed discontinuance of
service
to
any interconnecting telecommunication providers by first-class
mail
or other notice permitted under the terms of the
interconnection
agreement between the providers.
(b)
Upon approval of the federal communications commission to
discontinue
service, at least 90 days before discontinuing service,
all
of the following:
(i) File a notice of the discontinuance of service
with the
commission.
(ii) Publish a notice of the discontinuance of service
in a
newspaper
of general circulation within the exchange.
(iii) Provide notice of the discontinuance of service to
each of
the
telecommunication provider's customers within the exchange by
first-class
mail or within customer bills.
(iv) Provide notice to any interconnecting
telecommunication
providers
by first-class mail or other notice permitted under the
terms
of the interconnection agreement between the providers.
(6)
After January 1, 2017, and only in an area in which a
telecommunication
provider either has given notice of a proposed
discontinuance
of service under subsection (5) or has discontinued
service
within the previous 90 days, a customer of that provider or
any
interconnecting telecommunication provider may request the
commission
to investigate the availability of comparable voice
service
with reliable access to 9-1-1 and emergency services to
that
customer or a customer of an interconnecting telecommunication
provider.
If the commission, after conducting an investigation to
last
no longer than 180 days regarding the availability of
comparable
voice service with reliable access to 9-1-1 and
emergency
services, determines that the federal communications
commission
failed to make a finding that the present and future
public
convenience and necessity is not adversely affected or has
not
adequately addressed the issue, the commission shall declare by
order
that an emergency exists in an area in this state that is not
served
by at least 1 voice service provider offering comparable
voice
service with reliable access to 9-1-1 and emergency services
through
any technology or medium and shall conduct a request for
service
process to identify a willing provider of comparable voice
service
with reliable access to 9-1-1 and emergency services in
that
area, including the current provider. A provider shall not be
required
to participate in the request for service process. The
willing
provider may utilize any form of technology that is capable
of
providing comparable voice service with reliable access to 9-1-1
and
emergency services, including voice over internet protocol
services
and wireless services. If the commission determines that
another
provider is not capable of providing comparable voice
service
with reliable access to 9-1-1 and emergency services in
that
area, the commission shall issue an order requiring the
current
telecommunication provider to provide comparable voice
service
with reliable access to 9-1-1 and emergency services in
that
area utilizing any form of technology that the commission
determines
is capable of providing comparable voice service with
reliable
access to 9-1-1 and emergency services, including voice
over
internet protocol services and wireless services, until
another
willing provider is available. An intrastate universal
service
fund under section 316a shall not be created or used to
compensate
or fund a willing provider or current telecommunication
provider
to provide service under this section. As used in this
subsection:
(a)
"Comparable voice service" includes any 2-way voice
service
offered through any form of technology, including voice
over
internet protocol services and wireless services, that is
capable
of placing calls to and receiving calls from a provider of
basic
local exchange service.
(b)
"Emergency services" means services provided to the public
by
police, fire, ambulance, or other first responders.
(c)
"Reliable access to 9-1-1" means the rules, regulations,
and
guidelines set forth in the FCC trials order, including all
appendices,
that provide comparable and reliable consumer access to
emergency
services.
(d)
"Willing provider" means a provider that voluntarily
participates
in the request for service process.
(7)
Beginning January 1, 2017, a telecommunication provider
that
discontinues service under this section shall adhere to all
rules,
regulations, and guidelines set forth in the FCC trials
order,
including all appendices, for each of that telecommunication
provider's
exchanges in this state, whether or not the
discontinuance
is undertaken pursuant to an official trial under
the
FCC trials order, except that all notices or reports to be
filed
with the federal communications commission shall be submitted
to
the Michigan public service commission for its information. This
subsection
is effective until the federal communications commission
determines
the legal and policy framework and establishes the
requirements
for the IP-transition including emergency connectivity
requirements
that provide comparable and reliable consumer access
to
emergency services.
(8)
As used in this section, "FCC trials order" means the
order
of the federal communications commission, GN docket nos. 13-5
and
12-353, adopted January 30, 2014, and any subsequent order of
the
federal communications commission modifying or revising that
order
that includes emergency connectivity requirements that
provide
comparable and reliable consumer access to emergency
services.
Sec. 317. (1) An operator service provider shall not provide
operator services in this state without first registering with the
commission. The registration shall include the following
information:
(a) The name of the provider.
(b) The address of the provider's principal office.
(c) If the provider is not located in this state, the address
of the registered office and the name of the registered agent
authorized to receive service of process in this state.
(d) Any other information that the commission may require.
(2) The registration shall be accompanied with a registration
fee of $100.00.
(3) The registration is effective immediately upon filing with
the commission and the payment of the registration fee and shall
remain in effect for 1 year from its effective date.
(4) A registration may be renewed for 1 year by filing with
the commission a renewal registration on a form provided by the
commission and the payment of a renewal fee of $100.00.
(5) (4)
At no charge, an operator service
provider shall
immediately connect a person making an emergency call to an
emergency responder service.
Sec. 320. (1) A person shall not provide payphone service in
this state without first registering with the commission. The
registration shall include all of the following information:
(a) The name of the provider.
(b) The address and telephone number of the provider's
principal office.
(c) If the provider is not located in this state, the address
and telephone number of the registered office and the name and
telephone number of the registered agent authorized to receive
service of process in this state.
(d) The specific location of each payphone in this state owned
or operated by the provider. Information required under this
subdivision shall be made available to the local unit of government
solely for the enforcement of the reporting, repairing, and
replacement standards under subsection (8). The information
required to be provided under this subsection is considered
commercial information under section 210, and the information
submitted is exempt from the freedom of information act, 1976 PA
442, MCL 15.231 to 15.246.
(2) The registration shall be accompanied by a registration
fee of $100.00.
(3) The registration is effective immediately upon filing with
the commission and the payment of the registration fee and shall
remain in effect for 1 year from its effective date.
(4) A registration may be renewed for 1 year by filing with
the commission a renewal registration on a form provided by the
commission and the payment of a renewal fee of $100.00.
(5) (4)
The commission shall establish a
toll-free number that
can be dialed to report to the commission a payphone that is
inoperative. The toll-free number shall be conspicuously displayed
by the provider on or near each payphone.
(6) (5)
If the commission receives a report
under subsection
(4),
(5), it shall immediately notify the provider of the
inoperative payphone.
(7) (6)
After consulting with providers of
payphone service,
local units of government, and other interested parties, the
commission shall promulgate rules or issue orders under section 213
to establish and enforce quality standards in the providing of
payphone service.
(8) (7)
Except as provided in subsection (8),
(9), a local
unit of government shall not regulate payphone service.
(9) (8)
A local unit of government may
enforce the reporting,
repairing, and replacement of inoperative payphones within its
jurisdiction by adopting an ordinance that conforms to the
standards
established by the commission under subsection (6). (7).
A local unit of government shall not impose standards greater than
those established by the commission.
Sec. 502. (1) A provider of a basic local exchange service
shall not do any of the following:
(a) Make a statement or representation, including the omission
of material information, regarding the rates, terms, or conditions
of providing a service that is intentionally false, misleading, or
deceptive. As used in this subdivision, "material information"
includes, but is not limited to, a good faith estimate of all
applicable fees, taxes, and charges that will be billed to the end-
user, regardless of whether the fees, taxes, or charges are
authorized by state or federal law.
(b) Charge an end-user for a subscribed service for which the
end-user did not make an initial affirmative order. Failure to
refuse an offered or proposed subscribed service is not an
affirmative order for the service.
(c) If an end-user has canceled a service, charge the end-user
for service provided after the effective date the service was
canceled.
(d) Cause a probability of confusion or a misunderstanding as
to the legal rights, obligations, or remedies of a party to a
transaction by making an intentionally false, deceptive, or
misleading statement or by failing to inform the customer of a
material fact, the omission of which is deceptive or misleading.
(e) Represent or imply that the subject of a transaction will
be provided promptly, or at a specified time, or within a
reasonable time, if the provider knows or has reason to know it
will not be so provided.
(f) Require the purchase of a regulated service of the
provider as a condition of purchasing an unregulated service.
(g) If a bona fide dispute exists between a customer and the
provider,
disconnect the service to the customer for nonpayment of
that
disputed amount.before the
resolution of that dispute.
(2) When the commission has authority to bring a proceeding
for a violation of this section, the commission may accept an
assurance of discontinuance of a method, act, or practice that is
alleged to be unlawful under this section from the person who is
alleged to have engaged, be engaging, or be about to engage in the
method, act, or practice. The assurance of discontinuance is not an
admission of guilt and shall not be introduced in any other
proceeding. Unless rescinded by the parties or voided by the court
for good cause, the parties to the assurance of discontinuance may
enforce the assurance in circuit court. The assurance of
discontinuance may include a stipulation for any of the following:
(a) The voluntary payment by the person for the cost of
investigation.
(b) An amount to be held in escrow pending the outcome of an
action.
(c) An amount for restitution to an aggrieved person.