LANSING – The Senate on Thursday passed a bill that would streamline the process for phone companies to end traditional landline service to customers under certain conditions, changing some wording to ensure the Public Service Commission must take a consumer’s complaint regarding service providers if his or her current provider chooses to discontinue that service.

“If someone makes a complaint, (the PSC) may invoke an emergency situation if they feel they need to,” said Sen. Mike Nofs (R-Battle Creek), sponsor of SB 636 and chair of the Senate Energy and Technology Committee that reported the bill earlier this week.

The new language replaces the word “may” with “shall” in several spots. As a result, the bill would now require, instead of merely allow, the PSC to declare an emergency if it finds a lack of any provider to offer reliable voice service and 911 functions. The new language also requires, again, instead of simply allowing, the PSC to seek interested providers to fill the gap.

The wording change was a primary issue of Sen. Howard Walker (R-Traverse City), who was the lone no-vote on the bill when it left committee (See Gongwer Michigan Report, December 3, 2013). However, colleagues Sen. Tonya Schuitmaker (R-Lawton) and Sen. James Marleau (R-Lake Orion) also voiced concern about the wording, but gave Mr. Nofs their support in committee out of respect for the chair.

“When we were in committee, (Walker) asked the committee, why don’t we put ‘shall’ in there, that you have to make a determination? And (the PSC) said, ‘well we don’t know why we wouldn’t ever take someone’s complaint, that’s our job,'” Nofs explained. “But (Walker) felt more comfortable and thought it protected consumer protection, which is the right thing to do.”

SB 636 first passed 32-3, with Sen. Mike Green (R-Mayville) and Sen. Morris Hood II (D-Detroit) absent, and Sen. Goeff Hansen (R-Hart), Sen. Jack Brandenburg (R-Harrison Township) and Sen. Glenn Anderson (D-Westland) in opposition. Sen. Tom Casperson (R-Escanaba) did not record his vote in time, and so the Senate reconsidered the vote. Upon reconsideration, Mr. Casperson voted against the measure and Senate Majority Floor Leader Arlan Meekhof (R-West Olive) did not vote, for a final vote of 31-4.

The goal of the bill is to streamline the process for a telephone provider to discontinue traditional landline service. Initially, the bill would have minimized the role the PSC in the event that a telephone provider sought to discontinue traditional landline service by simply ending the need for PSC approval. The PSC stated its opposition to that, and Nofs worked with the commission to win their approval. Current law requires both PSC and Federal Communications Commission approval, and the bill would leave the issue solely with the FCC.

In committee earlier this week, the bill was changed to accommodate a customer of a provider seeking to discontinue landline service, or an interconnecting telecommunications provider, to petition the PSC to investigate the availability of reliable voice service with access to 911.

On the floor Thursday, the word “reliable” was switched to “comparable” as a matter of definitions. Matt Resch, spokesperson for AT&T, said the term “reliable” left too much to question, and “comparable” was already defined in law as a result of some changes made to the Michigan Telecommunications Act a couple years ago.

Resch said the company is still reviewing the changes and determining their effects, but overall it is “grateful that the Senate moved the process forward,” he said.

The bill then lays out how the commission can declare an emergency in that area and conduct a request for service to find a willing provider of that can offer comparable voice service with 911 capabilities and other emergency services.

If such a provider cannot be found, then under the bill, the PSC can compel the provider that wants to end landline service in an area to continue voice service, either through an alternative technology, or if that is not sufficiently reliable, by maintaining its landline system.

“What we did is we strengthened the consumer protection … in that the MPSC will come out and investigate, and if it’s not rectified, they have the power to ensure to their liking that you’re satisfied,” Nofs told members of the media after session. “It made very clear who has the final determination, whether or not the service is comparable and/or reliable. We made it very, very clear that the Michigan Public Service Commission will make that determination.”

Sen. Hoon-Yung Hopgood (D-Taylor) joined Nofs in support of the bill on the floor.

“(Nofs) is correct in stating that multiple provisions have been added throughout the process to help protect consumers and make sure they have access to those critical emergency 911 services,” Hopgood said. “It does make an effort to strike a balance towards looking toward the future as we transition into what is a fast-paced, changing environment.”

Now the bill goes to the House.

“While no transition is perfect, I am confident that we have addressed as many of the concerns as we can anticipate and provide our citizens with the important consumer protections that will ensure that when they pick up their home phone, regardless of where they are in this great state, the call will get through just like it always has,” Nofs said.

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