HOUSE BILL No. 5460


     November 28, 2001, Introduced by Reps. Shulman and Bradstreet and referred to the Committee on Energy and Technology.


        A bill to amend 1991 PA 179, entitled

   "Michigan telecommunications act,"

   by amending section 310 (MCL 484.2310), as amended by 2000

   PA 295.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

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      sion shall not review or set the rates for toll access services.

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

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      provider of toll access services shall set the rates for toll

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      access services.  Access service rates and charges set by a pro-

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      vider that exceed the rates allowed for the same interstate serv-

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      ices by the federal government are not just and reasonable.  In

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

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      allowed for the same interstate services by the federal

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


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

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

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      commission under section 204.

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

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      access lines may agree to joint toll access service rates and

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      pooling of intrastate toll access service revenues.

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

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      for intrastate access services any technical interconnection

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      arrangements, including colocation required by the federal gov-

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      ernment for the identical interstate access services.

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

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

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      and conditions, without unreasonable discrimination, to all

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      providers.  All pricing of special toll access services and

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      switched access services, including volume discounts, shall be

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

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      conditions.  Until allowed by the federal communications commis-

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      sion, volume discounts on switched access are prohibited under

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      this subsection.

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

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      vider receiving the reduced rate shall reduce its rate to its

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      customers by an equal amount.  The commission shall investigate

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      and ensure that the provider has complied with this subsection.

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           (7)  A  EXCEPT UPON A FILING AND COMMISSION APPROVAL UNDER

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      SECTION 304, A provider of basic local exchange service shall not

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      assess or impose on end-users an intrastate subscriber line

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      charge or end-user line charge.  IN REVIEWING A FILING ALLOWED



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      UNDER THIS SUBSECTION, THE COMMISSION SHALL INCLUDE IN ITS

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      CONSIDERATION WHETHER THE PROPOSED LINE CHARGE PROVIDES A REASON-

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      ABLE RATE OF RETURN FOR THE SERVICES PROVIDED.

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           (8) IF A PROVIDER IS ASSESSING OR IMPOSING AN INTERSTATE

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      SUBSCRIBER LINE CHARGE OR END-USER LINE CHARGE ON THE EFFECTIVE

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      DATE OF THE AMENDATORY ACT THAT ADDED THIS SUBSECTION, THE PRO-

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      VIDER MAY CONTINUE TO ASSESS OR IMPOSE THE LINE CHARGE IF THE

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      PROVIDER COMPLIES WITH ALL OF THE FOLLOWING:

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           (A) WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THE AMENDATORY

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      ACT THAT ADDED THIS SUBSECTION, THE PROVIDER MAKES A FILING UNDER

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      SUBSECTION (7).

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           (B) THE LINE CHARGE IS NOT GREATER THAN THE AMOUNT OF THE

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      LINE CHARGE ASSESSED OR IMPOSED AS OF THE EFFECTIVE DATE OF THE

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      AMENDATORY ACT THAT ADDED THIS SUBSECTION.

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           (C) THE PROVIDER MAKES ANY NECESSARY ADJUSTMENTS TO THE LINE

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      CHARGE AFTER THE COMMISSION ISSUES ITS DECISION ON A FILING MADE

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      UNDER SUBSECTION (7) RELATING TO THAT LINE CHARGE.

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

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

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      state.

















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