HOUSE BILL No. 4764


     May 15, 2001, Introduced by Reps. Neumann, Mortimer and Gosselin and referred to the Committee on Energy and Technology.


        A bill to amend 1991 PA 179, entitled

   "Michigan telecommunications act,"

   by amending section 101 (MCL 484.2101), as amended by 2000 PA

   295, and by adding section 305a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 101.  (1) This act shall be known and may be cited as

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      the "Michigan telecommunications act".

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           (2) The purpose of this act is to do all of the following:

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           (a) Ensure that every person has access to just, reasonable,

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      and affordable basic residential telecommunication service.

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           (b) Allow and encourage competition to determine the avail-

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      ability, prices, terms, and other conditions of providing tele-

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      communication services.

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           (c) Restructure regulation to focus on price and quality of

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      service and not on the provider.  Supplement existing state and


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      federal law regarding antitrust, consumer protection, and fair

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      trade to provide additional safeguards for competition and

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      consumers.

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           (d) Encourage the introduction of new services, the entry of

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      new providers, the development of new technologies, and increase

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      investment in the telecommunication infrastructure in this state

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      through incentives to providers to offer the most efficient serv-

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      ices and products.

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           (e) Improve the opportunities for economic development and

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      the delivery of essential services including education and health

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      care.

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           (f) Streamline the process for setting and adjusting the

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      rates for regulated services that will ensure effective rate

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      review and reduce the costs and length of hearings associated

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      with rate cases.

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           (g) Encourage the use of existing educational telecommunica-

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      tion networks and networks established by other commercial pro-

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      viders as building blocks for a cooperative and efficient state-

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      wide educational telecommunication system.

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           (h) Ensure effective review and disposition of disputes

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      between telecommunication providers.

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           (i) Authorize actions to encourage the development of a com-

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      petitive telecommunication industry.

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           (J) ENSURE ALL LOCAL EXCHANGE CUSTOMERS RECEIVE THE BENEFITS

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      OF COMPETITION IN THE LOCAL EXCHANGE BY ELIMINATING THE BARRIERS

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      TO COMPETITION CREATED BY THE INCUMBENT LOCAL EXCHANGE

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      PROVIDERS.



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           SEC. 305A.  (1) NO LATER THAN JANUARY 1, 2003, EACH

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      INCUMBENT LOCAL EXCHANGE PROVIDER AS DEFINED IN SECTION 251(H) OF

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      PART II OF TITLE II OF THE COMMUNICATIONS ACT OF 1934, CHAPTER

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      652, 110 STAT. 61, 47 U.S.C. 251, WITH 250,000 OR MORE CUSTOMERS

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      IN THIS STATE SHALL STRUCTURALLY SEPARATE ITS RETAIL TELECOMMUNI-

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      CATION SERVICES FROM THE NETWORK ELEMENTS AND SERVICES PROVIDED

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      TO OTHER TELECOMMUNICATION PROVIDERS.

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           (2) RETAIL TELECOMMUNICATION SERVICES SHALL BE PROVIDED BY

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      AN AFFILIATE OR ENTITY DIFFERENT THAN AND SEPARATE FROM THE

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      AFFILIATE OR ENTITY PROVIDING NETWORK ELEMENTS AND SERVICES TO

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      OTHER TELECOMMUNICATION PROVIDERS.

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           (3) THE AFFILIATE OR ENTITY PROVIDING RETAIL SERVICES SHALL

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      HAVE AT LEAST 20% OF ITS COMMON STOCK PUBLICLY TRADED SEPARATELY

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      FROM THE STOCK OF THE AFFILIATE OR ENTITY PROVIDING PROVIDER

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      SERVICES.

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           (4) THE AFFILIATE OR ENTITY PROVIDING PROVIDER SERVICES

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      SHALL NOT TRANSFER OR ASSIGN ANY NETWORK ELEMENTS TO THE AFFILI-

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      ATE OR ENTITY PROVIDING RETAIL SERVICES.





















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