SENATE BILL No. 998

January 9, 2002, Introduced by Senators SIKKEMA, HAMMERSTROM, GOSCHKA,

JOHNSON, SANBORN, SHUGARS, GOUGEON and GAST and referred to the

Committee on Technology and Energy.

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:

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

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

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

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

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

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

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

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

9 allowed for the same interstate services by the federal

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

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

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

3 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 gov-

10 ernment 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 commis-

18 sion, volume discounts on switched access are prohibited under

19 this subsection.

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

21 vider 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 EXCEPT UPON A FILING AND COMMISSION APPROVAL UNDER

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

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

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

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1 UNDER THIS SUBSECTION, THE COMMISSION SHALL INCLUDE IN ITS

2 CONSIDERATION WHETHER THE PROPOSED LINE CHARGE PROVIDES A REASON-

3 ABLE RATE OF RETURN FOR THE SERVICES PROVIDED.

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

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

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

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

8 PROVIDER COMPLIES WITH ALL OF THE FOLLOWING:

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

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

11 SUBSECTION (7).

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

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

14 AMENDATORY ACT THAT ADDED THIS SUBSECTION.

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

16 CHARGE AFTER THE COMMISSION ISSUES ITS DECISION ON A FILING MADE

17 UNDER SUBSECTION (7) RELATING TO THAT LINE CHARGE.

18 (9) (8) This section shall not apply to basic local

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

20 state.

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