October 22, 2013, Introduced by Senator NOFS and referred to the Committee on Energy and Technology.
A bill to amend 1991 PA 179, entitled
"Michigan telecommunications act,"
by amending sections 304, 310, 313, 315, 317, 320, and 502 (MCL
484.2304, 484.2310, 484.2313, 484.2315, 484.2317, 484.2320, and
484.2502), sections 304, 313, 315, and 502 as amended by 2011 PA
58, section 310 as amended by 2009 PA 182, section 317 as amended
by 2005 PA 235, and section 320 as added by 1995 PA 216.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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
energy,
labor, and economic growth 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 within 270 days after the effective date of
the
amendatory act that added this subsection. 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. Any
company-specific information pertaining to access lines, switched
toll access services minutes of use, switched toll access demand
quantities, contributions, and intrastate telecommunications
services revenues submitted to the commission under this subsection
are confidential commercial or financial information and exempt
from
public disclosure pursuant to under
section 210.
(11) The initial size of the restructuring mechanism shall be
calculated as follows:
(a)
Within 60 days of the effective date of the amendatory act
that
added this subsection 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 which
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 telecommunications services and all providers of
commercial mobile service. Interconnected voice over internet
protocol services shall not be considered an intrastate
telecommunications 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
telecommunications 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)
Within 60 days of the effective date of the amendatory
act
that added this subsection, By
February 15, 2010, each
contributing provider shall report its 2008 intrastate retail
telecommunications 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 telecommunications 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 telecommunications 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 within 150
days
of the effective date of the amendatory act that added this
subsection.
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
telecommunications 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 4 years from the
date
the initial restructuring mechanism becomes operational
pursuant
to subsection (9) and again 4 years thereafter. on March
13, 2018. 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.
(c) (d)
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.
(17) The money received and administered by the commission for
the support and operation of the restructuring mechanism created by
the
amendatory act that created this subsection 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 pursuant to 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 telecommunications 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 pursuant to 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 shall be 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 telecommunications services revenues
submitted to the commission under this subsection is confidential
commercial or financial information and exempt from public
disclosure
pursuant to 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 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. As used in this subdivision, "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 established in sections 251 and 252 of the
telecommunications act of 1996, 47 USC 251 and 252, 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 telecommunications provider that
provides basic local exchange or toll service may discontinue that
service in an exchange by doing all of the following at least 90
days before discontinuing service:
(a) Filing a notice of the discontinuance of service with the
commission.
(b) Publishing a notice of the discontinuance of service in a
newspaper of general circulation within the exchange.
(c) Providing notice of the discontinuance of service to each
of the telecommunications provider's customers within the exchange
by first-class mail or within customer bills.
(d) Providing notice to any interconnecting telecommunications
providers by first-class mail or other notice permitted under the
terms of the interconnection agreement between the providers.
Sec.
315. (1) The commission shall require each Each provider
of
basic local exchange service to shall
provide a text telephone-
telecommunications device for the deaf at cost to each individual
who is certified as deaf or hard of hearing or speech-impaired by a
licensed physician, licensed audiologist, or qualified state
agency, and to each public safety answering point as defined in
section 102 of the emergency 9-1-1 service enabling act, 1986 PA
32, MCL 484.1102.
(2)
The commission shall require each Each provider of basic
local
exchange service to shall provide a telecommunication relay
service whereby persons using a text telephone-telecommunications
device for the deaf can communicate with persons using a voice
telephone through the use of third party intervention or automated
translation. Each provider of basic local exchange service shall
determine whether to provide a telecommunication relay service on
its own, jointly with other basic local exchange providers, or by
contract
with other telecommunication providers. The commission
shall
determine the technical standards and essential features of
text
telephone and telecommunication relay service to ensure their
compatibility
and reliability.
(3) Rates and charges for calls placed through a
telecommunication relay service shall not exceed the rates and
charges for calls placed directly from the same originating
location
to the same terminating location. Unless ordered by the
commission,
a A provider of a telecommunications relay service
shall
is not be required to handle calls from public
telephones
except for calls charged collect or to cash, a credit card, or a
third party number.
(4) Notwithstanding any other provision of this act, a
provider may offer discounts on toll calls where a text telephone-
telecommunications
device for the deaf is used. The commission
shall
not prohibit such discounts on toll calls placed through a
telecommunication
relay service.
(5)
The commission shall establish a rate for each subscriber
line
of a provider to allow the A provider to may recover costs
incurred under this section and may waive the costs assessed under
this section to individuals who are deaf or severely hearing
impaired
or speech impaired. The rate established by the commission
under
this subsection may be assessed as a line item on an end-
user's
bill.
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.
(4) (5)
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 shall be is
considered commercial information under section 210, and the
information
submitted shall be is exempt from the freedom of
information
act, Act No. 442 of the Public Acts of 1976, being
sections
15.231 to 15.246 of the Michigan Compiled Laws.1976 PA
442, MCL 15.231 to 15.246.
(2) 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.
(4) (5)
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.
(5) (6)
If the commission receives a report
pursuant to under
subsection
(5), (4), it shall immediately notify the provider of
the inoperative payphone.
(6) (7)
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.
(7) (8)
Except as provided in subsection (9),
(8), a local
unit of government shall not regulate payphone service.
(8) (9)
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 (7). (6).
A local unit of government shall not impose standards greater than
these
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 before the
resolution
of that dispute.for
nonpayment of that disputed amount.
(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.