SB-0190, As Passed Senate, March 19, 2009
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 190
A bill to amend 2006 PA 480, entitled
"Uniform video services local franchise act,"
by amending section 10 (MCL 484.3310).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10. (1) A video service provider shall not do in
connection with the providing of video services to its subscribers
and the commission may enforce compliance with any of the following
to the extent that the activities are not covered by section
2(3)(l):
(a) Make a statement or representation, including the omission
of material information, regarding the rates, terms, or conditions
of providing video service that is false, misleading, or deceptive.
As used in this subdivision, "material information" includes, but
is not limited to, all applicable fees, taxes, and charges that
will be billed to the subscriber, regardless of whether the fees,
taxes, or charges are authorized by state or federal law.
(b) Charge a customer for a subscribed service for which the
customer 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 a customer has canceled a service, charge the customer
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 a 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 that
it will not be so provided.
(f) Cause coercion and duress as a result of the time and
nature of a sales presentation.
(2) Each video service provider shall establish a dispute
resolution process for its customers. Each provider shall maintain
a local or toll-free telephone number for customer service contact.
(3)
The commission shall submit to the legislature no later
than
June 1, 2007 a proposed process to be added to this act that
would
allow the commission to review disputes which are not
resolved
under subsection (2), disputes between a provider and a
franchising
entity, and disputes between providers.
(3) (4)
Each provider shall notify its
customers not less than
annually of the dispute resolution process created under this
section. Each provider shall include the dispute resolution process
on its website.
(4) Before a customer can file a complaint with the commission
under subsection (5), the customer shall first attempt to resolve
the dispute through the dispute resolution process established by
the provider under subsection (2). If the dispute cannot be
resolved by the provider's dispute resolution process, the customer
may file a complaint with the commission under subsection (5). The
provider shall provide the customer with the commission's toll-free
customer service number and website address.
(5) A complaint filed under this section involving a dispute
between a customer and a provider shall be handled by the
commission in the following manner:
(a) An attempt to resolve the dispute shall first be made
through an informal resolution process. Upon receiving a complaint,
the commission shall forward the complaint to the provider and
attempt to informally mediate a resolution. The provider shall have
10 business days to respond and offer a resolution. If the dispute
cannot be resolved through the informal process, the customer can
file a formal complaint under subdivision (b).
(b) A formal complaint filed under this subdivision shall be
in writing and shall state the section or sections of this act that
the customer alleges the provider has violated, sufficient facts to
support the allegations, and the exact relief sought from the
provider. The formal complaint shall comply with the same
requirements of a written complaint filed under section 203 of the
Michigan telecommunications act, 1991 PA 179, MCL 484.2203. The
complaint shall be resolved by 1 of the following:
(i) If the dispute involves an amount of $5,000.00 or less, the
commission shall appoint a mediator within 7 business days of the
date the complaint is filed. The mediator shall make
recommendations for resolution within 30 days from the date of
appointment. Within 10 days of the date of the mediator's
recommendations, any named party in the complaint may request a
contested case as provided under subparagraph (ii).
(ii) If the dispute involves an amount greater than $5,000.00,
a contested case hearing in the same manner as provided under
section 203 of the Michigan telecommunications act, 1991 PA 179,
MCL 484.2203.
(6) If the dispute is between a provider and a franchising
entity or between 2 or more providers, the dispute will be resolved
in the following manner:
(a) An attempt to resolve the dispute shall first be made
through an informal resolution process. If a provider or
franchising entity believes that a violation of this act or the
franchising agreement has occurred, the provider or franchising
entity may begin an informal complaint process with the commission.
The provider or the franchising entity shall file with the
commission a written notice of dispute identifying the nature of
the dispute, request an informal dispute resolution, and serve the
notice of dispute on the other party. Commission staff will conduct
an informal mediation in an attempt to resolve the dispute. If a
satisfactory resolution to the dispute is not achieved, any named
party in the complaint may file a formal complaint under
subdivision (b).
(b) A formal complaint to the commission filed under this
subdivision shall be in writing and shall state the section or
sections of this act or parts of the franchising agreement that the
party alleges have been violated, sufficient facts to support the
allegations, the relief requested, and shall further contain all
information, testimony, exhibits, or other documents and
information within the moving party's possession on which the party
intends to rely to support the complaint. For a period of 60 days
after the date the complaint is filed, the parties shall attempt
alternative means of resolving the complaint. If the parties cannot
agree on the alternative means within 10 days after the date the
complaint is filed, the commission shall order mediation. Within 60
days from the date mediation is ordered, the mediator shall issue a
recommended settlement. Within 7 days after the date the
recommended settlement is issued, each party shall file with the
commission a written acceptance or rejection of the recommended
settlement. If the parties accept the recommendation, then the
recommendation shall become the final order in the contested case.
If a party rejects or fails to respond within 7 days to the
recommended settlement, then the complaint shall proceed to a
contested case hearing in the same manner as provided under section
203 of the Michigan telecommunications act, 1991 PA 179, MCL
484.2203. A party that rejects the recommended settlement shall pay
the opposing party's actual costs of proceeding to a contested case
hearing, including a reasonable, nonexcessive attorney fee, unless
the final order of the commission is more favorable to the
rejecting party than the recommended settlement. A final order is
considered more favorable if it differs by 10% or more from the
recommended settlement in favor of the rejecting party. If the
recommendation is not accepted, the individual commissioners shall
not be informed of the recommended settlement until they have
issued their final order.