Bill Text: MI SB1339 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Communications; telecommunications; state eligibility requirements for low-income program; revise and modify when providers may shut off service to certain customers. Amends secs. 304, 316 & 502 of 1991 PA 179 (MCL 484.2304 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-10-17 - Referred To Committee On Energy And Technology [SB1339 Detail]

Download: Michigan-2011-SB1339-Introduced.html

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SENATE BILL No. 1339

 

 

October 17, 2012, Introduced by Senator NOFS and referred to the Committee on Energy and Technology.

 

 

 

     A bill to amend 1991 PA 179, entitled

 

"Michigan telecommunications act,"

 

by amending sections 304, 316, and 502 (MCL 484.2304, 484.2316, and

 

484.2502), as amended by 2011 PA 58.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 304. (1) A call made to a local calling area adjacent to

 

the caller's local calling area is considered a local call and

 

shall be billed as a local call. Effective December 31, 2007, a

 

call made to a called party who is not located within the

 

geographic area of the caller's local calling area or an adjacent

 

local calling area as defined by the commission's order in case

 

numbers U-12515 and U-12528, dated February 5, 2001, is not a local

 

call if the tariff of the provider originating the call, or if no

 

tariff exists for a service, the provider's service guide for that

 

service, does not classify the call as a local call.

 

     (2) A provider of basic local exchange service with less than

 

10,000 end-users in this state may determine that their total

 

service long run incremental cost is the same as that of a provider

 

with more than 250,000 end-users.

 

     Sec. 316. (1) The commission shall require each provider of

 

residential basic local exchange service to offer certain low

 

income customers the availability of basic local exchange service

 

and access service at reduced rates as described in subsections (2)

 

and (3).

 

     (2) Except as provided under subsections (3) and (4), the rate

 

reductions for low income customers shall be at a minimum, 20% of

 

the basic local exchange rate or $8.25, which shall be, inclusive

 

of any federal contribution, whichever is greater.

 

     (3) Except as provided under subsection (4), if the low income

 

customer is 65 years of age or older, the rate reduction shall be,

 

at a minimum, 25% of the basic local exchange rate or $12.35, which

 

shall be inclusive of any federal contribution, whichever is

 

greater.

 

     (4) The total reduction under subsection (2) or (3) shall not

 

exceed 100% of all end-user common line charges and the basic local

 

exchange rate. The dollar amounts in subsections (2) and (3) shall

 

be adjusted annually to reflect any increases or decreases in the

 

federal contribution.

 

     (5) To qualify for the reduced rate under this section, the

 

person's annual income shall not exceed 150% 135% of the federal

 

poverty guidelines published annually in the federal register by

 

the United States department of health and human services and as

 

approved by the state treasurer, or the person must participate in

 

1 of the following federal assistance programs:

 

     (a) Medicaid.

 

     (b) Food stamps.

 

     (c) Supplemental security income.

 

     (d) Federal public housing assistance.

 

     (e) Low-income home energy assistance program.

 

     (f) National school lunch program's free lunch program.

 

     (g) Temporary assistance for needy families.

 

     (6) The commission shall establish a rate for each subscriber

 

line of a provider to allow the provider to recover costs incurred

 

under this section. The rate established by the commission under

 

this subsection may be assessed as a line item on an end-user's

 

bill.

 

     (7) The commission shall take necessary action to notify the

 

general public of the availability of lifeline services including,

 

but not limited to, public service announcements, newspaper

 

notices, and any other notice reasonably calculated to reach those

 

who may benefit from the services.

 

     Sec. 502. (1) A provider of a basic local exchange service

 

shall not do any of the following:

 

     (a) Make a statement or representation, including the omission

 

of material information, regarding the rates, terms, or conditions

 

of providing a service that is intentionally false, misleading, or

 

deceptive. As used in this subdivision, "material information"

 

includes, but is not limited to, a good faith estimate of all

 

applicable fees, taxes, and charges that will be billed to the end-

 

user, regardless of whether the fees, taxes, or charges are

 

authorized by state or federal law.

 

     (b) Charge an end-user for a subscribed service for which the

 

end-user 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 an end-user has canceled a service, charge the end-user

 

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 an intentionally 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 it

 

will not be so provided.

 

     (f) Require the purchase of a regulated service of the

 

provider as a condition of purchasing an unregulated service.

 

     (g) If a bona fide dispute exists between a customer and the

 

provider, disconnect the service to the customer before the

 

resolution of that dispute.for nonpayment of that disputed amount.

 

     (2) When the commission has authority to bring a proceeding

 

for a violation of this section, the commission may accept an

 

assurance of discontinuance of a method, act, or practice that is

 

alleged to be unlawful under this section from the person who is

 

alleged to have engaged, be engaging, or be about to engage in the

 

method, act, or practice. The assurance of discontinuance is not an

 

admission of guilt and shall not be introduced in any other

 

proceeding. Unless rescinded by the parties or voided by the court

 

for good cause, the parties to the assurance of discontinuance may

 

enforce the assurance in circuit court. The assurance of

 

discontinuance may include a stipulation for any of the following:

 

     (a) The voluntary payment by the person for the cost of

 

investigation.

 

     (b) An amount to be held in escrow pending the outcome of an

 

action.

 

     (c) An amount for restitution to an aggrieved person.