Bill Text: MI SB1151 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Transportation; other; carriers by water act; modify to allow regulation of fares and operations of certain ferry companies by the public service commission. Amends title & secs 1, 2, 3, 4, 5 & 6 of 1921 PA 246 (MCL 460.201 et seq.) & adds secs. 7, 8 & 10.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-05-29 - Referred To Committee On Government Operations [SB1151 Detail]
Download: Michigan-2011-SB1151-Introduced.html
SENATE BILL No. 1151
May 29, 2012, Introduced by Senator MEEKHOF and referred to the Committee on Government Operations.
A bill to amend 1921 PA 246, entitled
"An act to regulate the service, rates, fares and charges of
carriers by water within this state,"
by amending the title and sections 1, 2, 3, 4, 5, and 6 (MCL
460.201, 460.202, 460.203, 460.204, 460.205, and 460.206) and by
adding sections 7, 8, and 10.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to regulate the service, rates, fares, schedules, and
charges
of carriers by water within this state;
. to provide for
uniform carrier by water local franchises; to promote competition
in providing carrier by water service in this state; to ensure
reasonable local control of rights-of-way; to permit local units of
government to impose fees; to provide for the powers and duties of
certain state and local agencies and officials; and to prescribe
penalties.
Sec.
1. (1) Any and all persons, firms and corporations
engaged
in the transportation of freight, passengers, or express,
by
water, wholly within this state shall, within 30 days after this
act
shall take effect, make and A
carrier by water shall file a
tariff detailing rates, fares, charges, and schedules for the
transporting of passengers, freight, express, or other property
with
the Michigan public utilities commission in such a form
as it
shall
prescribe, its schedule of rates, fares, and charges for the
carrying
of freight, passengers, and express; which said and manner
prescribed by the commission. Except as otherwise provided in this
section,
a tariff of rates, fares, and
charges, and schedules shall
continue
in force until superseded by other schedules, another
tariff
filed in the manner above
prescribed, by said a carrier
,
with
or ordered by the Michigan public utilities commission. :
Provided,
however, That said Michigan public utilities The
commission
may, either upon request , or
upon its own motion,
suspend
the operation of any rate, fare, charge, or a tariff
filed
as
aforesaid, under this section
for a period not exceeding 30 90
days. ;
and in case any such rate, fare, charge, or If a tariff
shall
be is suspended by said Michigan public utilities the
commission,
it the commission shall give immediately notify the
interested
carrier immediate notice thereof, of the suspension and
,
within 10 days from the date of
such after the suspension
, shall
fix
set a date of for a hearing , not more than 20 45 days
from
after
the date of said the suspension. ,
and The commission shall
give
notice thereof to said notify
an interested carrier of a
hearing
under this subsection and provide the carrier
and to other
persons
in interest, who may be heard; and after said hearing said
commission
shall fix the rate, fare, charge, or tariff in the
matter
complained of; and such rate, fare, charge or tariff, when
so
fixed, shall continue to be the legal rate, fare, charge, or
tariff
in force until superseded as provided by law: Provided, That
any
ferry company operating within any municipality under an
agreement
with such municipality shall not be affected either as to
fares
or operation by this act. other
interested persons an
opportunity to be heard. While a tariff is suspended, the rates,
fares, charges, and schedules in effect prior to the suspension
shall apply. After conducting a hearing under this subsection, the
commission shall fix a tariff of rates, fares, charges, and
schedules in the matter and the tariff of rates, fees, charges, and
schedules shall continue to be the legal tariff of rates, fares,
charges, and schedules in force until superseded by a later filing
of a tariff by the carrier or an order of the commission.
(2) Beginning on the effective date of the amendatory act that
added this subsection, a carrier providing service to a city,
township, or village under an agreement with the city, township, or
village is subject to this act, including, but not limited to, the
requirements under this act regarding fares and the time and manner
of operation. A tariff in effect under subsection (1), including,
but not limited to, a tariff established by order of the
commission, takes precedence over any inconsistent or conflicting
local law, ordinance, resolution, rule, regulation, policy, or
practice.
(3) A carrier by water is a common carrier and is not a public
utility.
Sec.
2. The Michigan public utilities commission may examine
any
and all and audit the books, accounts, records, and papers of
any
such a carrier by water, and audit the same; and it
shall be
the
duty of any such regarding the
transport of passengers,
freight,
express, or other property by the carrier. A carrier by
water,
to shall furnish to said Michigan public utilities
commission,
its proper officers, and employes, any
and all data in
relation
related to its investment, income, or
operating expenses ,
and
such regarding the transport
of passengers, freight, express,
or other property by the carrier to the commission or its officers
or
employees, along with any other
statistical data as it may
require
regarding the transport of
passengers, freight, express, or
other property by the carrier as required by the commission.
Sec.
3. The Michigan public utilities commission is hereby
authorized,
empowered and directed to make all needful may
promulgate rules and regulations under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328,
governing
its investigations of the affairs of such carriers by
water , under this act and to shall prescribe the form of all
reports
required from such carriers
under this act.
Sec.
4. Whenever any If a complaint shall be is made
to said
Michigan
public utilities the commission by any person, firm, or
corporation
against any regarding a rate, fare, charge, schedule,
or
tariff of any a carrier by water within this state, or against
any
regarding a rule, regulation, or service of such a carrier , or
against
regarding the neglect, failure, or refusal of any such a
carrier to make, observe, or perform any rate, fare, charge,
schedule,
or tariff , or any rule, regulation, or service, said
Michigan
public utilities the commission shall investigate the
same,
and it matter. The commission
may regulate the performance or
observance
of any a rate, fare, charge, schedule, or tariff ,
and
any
or a rule, regulation, or service , and may prescribe the same
a rate, fare, charge, schedule, or tariff, or a rule, regulation,
or
service to be observed by such a carrier, :
Provided, That such
including, but not limited to, compliance with section 7(1). A
carrier
shall in all cases be is entitled to reasonable notice and
an
opportunity to be heard on such an
investigation conducted by
the
commission under this section before any
a rate, fare, charge,
or
schedule, or tariff, or any a rule, regulation, or
service shall
be
is prescribed, established, or imposed by said the commission. ,
in
accordance with the terms of this section, and when any When a
rate,
fare, charge, or schedule,
or tariff, or any a rule,
regulation,
or service shall be is prescribed, established, or
imposed
by said the commission, it shall thereafter be the duty of
said
a carrier to shall observe and obey the same.decision of the
commission.
Sec.
5. Any An order made by of the Michigan public
utilities
commission
prescribing or affecting any a
rate, fare, charge, or
schedule,
or tariff, or any a rule,
regulation, or service of any a
carrier
by water within this state, shall be is subject to review
in
the same manner as is now provided by law for the review of
orders
made by said Michigan public utilities commission.of the
commission under section 26 of 1909 PA 300, MCL 462.26.
Sec.
6. Any person, firm, or corporation violating any of the
provisions
A violation of this act
, or any order of the Michigan
public
utilities commission made in
pursuance thereof, shall be
under
this act is punishable by a fine not to
exceed 100 dollars
$100.00
for each violation. ,
and any A violation of this
act or
any
order of the commission by an officer
or director of any
corporation
violating the provisions of this act, or any of the
orders
of the Michigan public utilities commission made in
pursuance
thereof, shall be a carrier is
a misdemeanor punishable
by
a fine not exceeding 100 dollars for each such violation, or by
imprisonment
in the county jail for not more than 3 months, or by
both
such fine and punishment, in the discretion of the
court.imprisonment for not more than 90 days or a
fine of not more
than $100.00, or both.
Sec. 7. (1) When transporting passengers, freight, express, or
other property near or under a bridge, a carrier shall actively
cooperate with the owner or operator of the bridge on matters
relating to the safety and security of the bridge. When
transporting passengers, freight, express, or other property near
an international border, a carrier shall actively cooperate with
state and federal law enforcement officials on matters relating to
homeland security, customs, and immigration.
(2) The provisions of this act apply notwithstanding a
provision of a public act or local ordinance, resolution, or
charter provision to the contrary.
(3) It is the intent of the legislature that the provisions of
this act constitute an exercise of general control by the
legislature, provide uniformity, address matters of statewide
concern, are necessary to provide for the protection of the waters
of this state, are comprehensive and general in nature, and apply
to the entire state.
Sec. 8. (1) No later than 30 days after the effective date of
the amendatory act that added this section, the commission shall
issue an order establishing a standardized form for the uniform
carrier by water local franchise agreement to be used by each
franchising entity in this state.
(2) A local unit of government may require a person providing
carrier by water service and utilizing the public rights-of-way
within the local unit of government to obtain a franchise as
provided in this section. If a local unit of government requires a
person providing carrier by water service within the local unit of
government to obtain a franchise, the local unit of government may
only impose requirements authorized under this act. Except as
otherwise provided in this section, if a local unit of government
requires a person providing carrier by water service within the
local unit of government to obtain a franchise, a person shall not
provide carrier by water service within that local unit of
government without first obtaining a uniform carrier by water local
franchise.
(3) The uniform carrier by water local franchise agreement
under subsection (1) shall include all of the following provisions:
(a) The name of the person seeking to provide carrier by water
service.
(b) The address and telephone number of the person's principal
place of business.
(c) The name of the person's principal executive officers and
any persons authorized to represent the person before the
franchising entity and the commission.
(d) If the person is not already a carrier by water, the date
on which the person expects to provide carrier by water service in
the area identified under subdivision (e).
(e) A description of the geographic area to be served by the
person.
(f) A requirement that the person pay the carrier by water
franchise fee required under this section.
(g) A requirement that the person agrees to comply with all
valid and enforceable federal and state statutes and regulations.
(h) A requirement that the person actively cooperate with the
owner or operator of a bridge on matters relating to the safety and
security of the bridge when transporting passengers, freight,
express, or other property near or under a bridge.
(i) A requirement that the person cooperate with state and
federal law enforcement officials on matters relating to homeland
security, customs, and immigration when transporting passengers,
freight, express, or other property near an international border.
(j) A grant of authority by the franchising entity to the
person for the provision of carrier by water service in the
geographic area described in subdivision (e).
(k) A grant of authority by the franchising entity to the
person to use and occupy public rights-of-way of the franchising
entity in the provision of carrier by water service, subject to the
laws of this state and the general police powers of the franchising
entity not specifically applicable to or limited to carriers by
water.
(l) A requirement that the franchising entity and the person
are subject to the provisions of this act.
(m) The penalties provided for under subsection (17).
(4) If a local unit of government requires a person providing
carrier by water service within the local unit of government to
obtain a franchise as described in subsection (2), before offering
carrier by water service within the boundaries of a local unit of
government, a carrier shall enter into or possess a franchise
agreement with the local unit of government as required by this
section. A franchising entity shall notify a carrier as to whether
a submitted franchise agreement is complete as required by this
section within 15 business days after the date that the franchise
agreement is filed. If the franchise agreement is not complete, the
franchising entity shall notify the carrier of the reasons the
franchise agreement is incomplete. A franchising entity has 30 days
after the submission date of a complete franchise agreement to
approve the agreement. If the franchising entity does not notify
the carrier regarding the completeness of the franchise agreement
or approve the franchise agreement within the time periods required
under this subsection, the franchise agreement shall be considered
complete and the franchise agreement approved.
(5) A uniform carrier by water local franchise agreement
issued by a franchising entity or an existing franchise of an
incumbent carrier is fully transferable to any successor in
interest to the carrier to which it is initially granted. A notice
of transfer shall be filed with the franchising entity within 15
days of the completion of the transfer.
(6) The uniform carrier by water local franchise agreement
issued by a franchising entity may be terminated or the geographic
area served by the carrier may be modified by the carrier by
submitting notice to the franchising entity. If any of the
information contained in the franchise agreement changes, the
carrier shall timely notify the franchising entity. The uniform
carrier by water local franchise shall be for a period of 10 years
from the date it is issued. Before the expiration of the initial
franchise agreement or any subsequent renewals, the carrier may
apply for an additional 10-year renewal under this section.
(7) As a condition to obtaining or holding a franchise, a
franchising entity shall not require a carrier to obtain any other
franchise, assess any other fee or charge, or impose any other
franchise requirement or regulation other than those allowed under
this section. For purposes of this subsection, a franchise
requirement or regulation includes, but is not limited to, any of
the following:
(a) A provision regulating rates, fares, or other charges of a
carrier.
(b) The schedule of a carrier.
(c) The time and manner of operation of a carrier.
(d) The keeping and management of vessels of the carrier.
(e) Imposition or satisfaction of any build-out requirements.
(f) Requiring the deployment of any facilities or equipment.
(g) A requirement or regulation within the jurisdiction of the
commission under this act.
(8) As of the effective date of the amendatory act that added
this section, no existing franchise agreement with a franchising
entity shall be renewed or extended upon the expiration date of the
agreement. On the effective date of the amendatory act that added
this section, any provisions of an existing franchise agreement
that are inconsistent with or in addition to the provisions of a
uniform carrier by water local franchise agreement are unreasonable
and unenforceable by the franchising entity. A carrier, at its
option, may continue to provide carrier by water service in the
local unit of government by electing to do 1 of the following:
(a) Terminate the existing franchise agreement with the local
unit of government before the expiration date of the agreement and
enter into a new franchise under a uniform carrier by water local
franchise agreement.
(b) Amend the existing franchise agreement to include only
those provisions required under a uniform carrier by water local
franchise and continue under the existing franchise agreement.
(c) Continue to operate under the terms of an expired
franchise agreement until a uniform carrier by water local
franchise agreement takes effect. A carrier has 120 days after the
effective date of the amendatory act that added this section to
file for a uniform carrier by water local franchise agreement.
(9) If a franchising entity authorizes 2 or more carriers to
provide carrier by water service through an existing franchise, a
uniform carrier by water local franchise agreement, or an agreement
under subsection (6), the franchising entity shall not enforce a
term, condition, or requirement of a franchise agreement that is
more burdensome than the terms, conditions, or requirements
contained in another franchise agreement.
(10) A carrier shall calculate and pay an annual carrier by
water franchise fee to the franchising entity as provided in this
subsection. The fee shall be paid quarterly within 45 days after
the close of each quarter. Each payment shall include a statement
explaining the basis for the calculation of the fee. The
franchising entity shall not demand any additional fees or charges
from a carrier and shall not demand the use of any other
calculation method other than allowed under this act. If a carrier
provides carrier by water service on a route providing service to 2
franchising entities, the fee calculated, attributable, and payable
under this subsection to each franchising entity for service on
that route shall be reduced by 50%. A carrier may identify and
collect as a separate line item from each user of the carrier's
service an amount equal to the percentage established under this
subsection applied against the amount charged by the carrier for
use of the carrier's service. The fee under this subsection shall
be 1 of the following:
(a) If there is an existing franchise agreement, an amount
equal to the percentage of gross revenues paid to the franchising
entity by the carrier providing service within the local unit of
government with the largest number of passengers in the prior
calendar year.
(b) After the expiration of an existing franchise agreement or
if there is no existing franchise agreement, an amount equal to the
percentage of gross revenues of the carrier not to exceed 1% and
applicable to all carriers. If a carrier provides carrier by water
service on a route providing service to 2 franchising entities, the
combined amount attributable and paid to each franchising entity
may not exceed 1% of the gross revenue of the carrier generated by
that route.
(11) Not more than once every 24 months, a franchising entity
may perform reasonable audits of a carrier's calculation of the
fees paid under this section to the franchising entity for the
preceding 24-month period only. All records reasonably necessary
for the audits shall be made available by the carrier at the
location where the records are kept in the ordinary course of
business. The franchising entity and the carrier shall each be
responsible for its respective costs of the audit. Any additional
amount due as verified by the franchising entity shall be paid by
the carrier within 30 days of the franchising entity's submission
of an invoice for the sum. Any claims by a franchising entity that
fees have not been paid as required under this section, and any
claims for refunds or other corrections to the remittance of the
carrier, shall be made within 3 years from the date compensation is
remitted to the franchising entity.
(12) All determinations and computations made under this
section shall be pursuant to generally accepted accounting
principles.
(13) A franchising entity shall provide a carrier with open,
comparable, nondiscriminatory, and competitively neutral access to
the public rights-of-way of the franchising entity. A carrier shall
not be required to comply with, and a franchising entity may not
impose or enforce, any mandatory service, build-out or deployment
provisions, schedules, or other requirements, unless specifically
authorized under this section.
(14) A franchising entity may impose on a carrier a permit fee
only to the extent it imposes the same fee on all other carriers
and the fee does not exceed the actual, direct costs incurred by
the franchising entity for issuing the relevant permit. A
franchising entity shall not impose a fee under this subsection if
the carrier already has paid a permit fee of any kind in connection
with the same activity that would otherwise be covered by the
permit fee under this subsection, or is otherwise authorized by law
or contract to place the facilities used by the carrier in the
public rights-of-way or for general revenue purposes.
(15) Except under the terms of a mandatory protective order,
trade secrets and commercial or financial information submitted
under this act to a franchising entity or commission are exempt
from disclosure under section 13(1)(d) of the freedom of
information act, 1976 PA 442, MCL 15.243. If information is
disclosed under a mandatory protective order, then the franchising
entity or commission may use the information for the purpose for
which it is required, but the information shall remain
confidential. There is a rebuttable presumption that cost studies,
customer usage data, marketing studies and plans, and contracts are
trade secrets or commercial or financial information protected
under this subsection. The burden of removing the presumption under
this subsection is with the party seeking to have the information
disclosed.
(16) This act does not prohibit a local unit of government and
a carrier from entering into a voluntary franchise agreement that
includes terms and conditions different from those required under
this act, including, but not limited to, a reduction in the
franchise fee under subsection (10) in return for the carrier
making available to the franchising entity services, equipment,
capabilities, or other valuable consideration. This subsection does
not apply unless it is technically feasible and commercially
practicable for each carrier servicing the franchising entity to
comply with similar terms and conditions in the franchise agreement
and the franchise agreement is offered to each carrier.
(17) After notice and hearing, if the commission finds that a
person has violated this act, the commission shall order remedies
and penalties to protect and make whole persons who have suffered
damages as a result of the violation, including, but not limited
to, 1 or more of the following:
(a) Order the person to pay a fine of not less than $500.00 or
more than $1,000.00 for the first offense. For a second and any
subsequent offense, the commission shall order the person to pay a
fine of not less than $1,000.00 or more than $5,000.00.
(b) If the person has received a uniform carrier by water
local franchise, revoke the franchise.
(c) Issue a cease and desist order.
(18) Notwithstanding subsection (17), the commission shall not
impose a fine for a violation of this act if the carrier has
otherwise fully complied with this act and shows that the violation
was an unintentional and bona fide error notwithstanding the
maintenance of procedures reasonably adopted to avoid the error.
Examples of a bona fide error include, but are not limited to,
clerical, calculation, computer malfunction, programming, or
printing errors. An error in legal judgment with respect to a
person's obligations under this act is not a bona fide error. The
carrier bears the burden of proving that a violation was an
unintentional and bona fide error. If the commission finds that a
party's complaint or defense filed under this section is frivolous,
the commission shall award to the prevailing party costs, including
reasonable attorney fees, against the nonprevailing party and his
or her attorney. All parties of interest have the same rights to
appeal and review an order or finding of the commission.
(19) The authority of a franchising entity and the commission
to administer this act is limited to the powers and duties
explicitly provided for under this act, and neither a franchising
entity nor the commission has the authority to regulate or control
a carrier under this act as a public utility.
(20) Within 30 days after an appropriation to the commission,
the commission shall ascertain the amount of the appropriation
attributable to the actual costs to the commission in exercising
its duties under this act. This amount shall be assessed against
each carrier doing business in this state. Each carrier shall pay a
portion of the total assessment in the same proportion that the
carrier's gross revenue for the prior calendar year derived from
operations in this state bears to the total gross revenue of all
carriers derived from doing business in this state during the same
calendar year. Each carrier shall pay a minimum assessment of not
less than $50.00. This subsection does not apply after December 31,
2016.
(21) As used in this section:
(a) "Franchising entity" means a local unit of government
within which a carrier offers carrier by water service through a
franchise.
(b) "Gross revenues" means all consideration of any kind or
nature, including, without limitation, cash, credits, property, and
in-kind contributions received by a carrier from users for the
provision of carrier by water service within the geographic area of
a franchising entity. Gross revenues include all of the following:
(i) All charges and fees paid by users for the provision of
carrier by water service, including fees attributable to carrier by
water service when sold individually or as part of a package or
bundle, or functionally integrated, with services other than
carrier by water service.
(ii) A franchise fee imposed on the carrier that is passed on
to users.
(iii) Compensation received by the carrier for the promotion or
exhibition of any products or services over the carrier by water
service.
(iv) All revenue derived by the carrier from compensation
arrangements for advertising attributable to the local franchise
area.
(v) Advertising commissions paid to an affiliated third party
for carrier by water advertising.
(vi) Revenue of an affiliate of a carrier, but only to the
extent that the treatment of the revenue as revenue of the
affiliate has the effect of evading the payment of franchise fees
that would otherwise be paid for by the carrier.
(c) "Gross revenues" do not include any of the following:
(i) Revenue not actually received by a carrier, even if billed,
such as bad debt net of any recoveries of bad debt.
(ii) Refunds, rebates, credits, or discounts to users to the
extent not already offset by subparagraph (i) and to the extent the
refund, rebate, credit, or discount is attributable to the carrier.
(iii) Any revenues received by the carrier or its affiliates
from the provision of services or capabilities other than carrier
by water service.
(iv) Any amounts attributable to the provision of carrier by
water service to customers at no charge, including the provision of
carrier by water service to public institutions without charge.
(v) Any tax, fee, or assessment of general applicability
imposed on the customer or the transaction by a federal, state, or
local government or any other governmental entity, collected by the
carrier, and required to be remitted to the taxing entity,
including, but not limited to, any applicable sales and use taxes.
(vi) Any forgone revenue from the provision of carrier by water
service at no charge to any person, except that any forgone revenue
exchanged for trades, barters, services, or other items of value
shall be included in gross revenues.
(vii) Sales of capital assets or surplus equipment.
(viii) Reimbursement by programmers of marketing costs actually
incurred by the carrier.
(ix) The sale of carrier by water service for resale to the
extent the purchaser certifies in writing that it will resell the
service and pay a franchise fee with respect to the service.
(d) "Local unit of government" means a city, village, or
township.
(e) "Person" means an individual, corporation, association,
partnership, limited liability company, governmental entity, or any
other legal entity.
(f) "Public rights-of-way" means the areas on, below, or above
a public roadway, highway, street, sidewalk, alley, waterway, other
public place, or utility easements dedicated for compatible uses.
(g) "Uniform carrier by water local franchise agreement" or
"franchise agreement" means the franchise agreement required under
this act to be the operating agreement between each franchising
entity and carrier in this state.
Sec. 10. As used in this act:
(a) "Carrier by water" or "carrier" means a person engaged in,
or indicating to the public that the person is engaged in, the
business of transporting passengers, freight, express, or other
property by water wholly within this state, including, but not
limited to, a ferry operator.
(b) "Commission" means the Michigan public service commission
established in 1939 PA 3, MCL 460.1 to 460.11.
(c) "Public act" includes a public act of the legislature of
this state or a local act of the legislature of this state.