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.