Public Act 49 of 2002

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• Introduced by Sen. Leon Stille (R) on November 29, 2001, to authorize a Michigan Community Communications Authority to issue bonds, and make loans, grants, and joint venture financing to communications developers and operators to acquire, construct, maintain, and operate infrastructure required to provide high speed Internet access. It would be financed by a portion of a new seven-cents per linear foot telecommunications right-of-way fee imposed on all telecommunications providers, including those who provide lines for telephone, DSL, cable, Internet, etc. Providers would be authorized to pass on the fees to customers with permission of the Public Service Commission. The bill is part of a package comprised of Senate Bills 879 to 881.
  • Referred to the Senate Technology and Energy Committee on November 29, 2001.
  • Substitute offered in the Senate on February 19, 2002, to replace the previous version of the bill with a version recommended by the committee which reported it. The substitute significantly reduces the powers of the new authority. It would not be authorized to award grants to or enter into partnerships with private sector companies, but could still provide low-interest loans to a private telecommunications provider, backed by the state’s the tax exempt status and credit rating. Since the authority would not be making grants or entering into business partnerships, the it would receive no funds from the right-of-way fee proposed by SB 880. The authority would be prohibited from making new loans after 2008. The substitute was amended to subject the authority to the same financial reporting requirements that apply to other municipalities and government entities. The substitute passed by voice vote in the Senate on February 19, 2002.
• Passed 33 to 3 in the Senate on February 20, 2002, to authorize a new Michigan Community Communications Authority to provide low-interest infrastructure construction loans to private telecommunications providers, backed by legislative appropriations and by the state’s tax exempt status and credit rating. The authority would be prohibited from making new loans after 2008. The bill is part of a package comprised of Senate Bills 880, 881, and 999.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on February 20, 2002, to authorize a new Michigan Community Communications Authority to provide low-interest infrastructure construction loans to private telecommunications providers, backed by legislative appropriations and by the state’s tax exempt status and credit rating. The authority would be prohibited from making new loans after 2008. The bill is part of a package comprised of Senate Bills 880, 881, and 999.
  • Substitute offered in the House on March 13, 2002, to replace the Senate-passed version of the bill with a version recommended by the House Energy and Technology Committee. The substitute requires that $1 million of the initial debt taken on by the new entity be used to assist companies seeking to provide broadband service in underserved areas of the state to negotiate the state assistance application process. The substitute passed by voice vote in the House on March 13, 2002.
  • Amendment offered by Rep. Bob Brown (D) on March 13, 2002, to establish a defintion of "member of the same political party" as it applies to Michigan Community Communications Authority board members. The amendment passed by voice vote in the House on March 13, 2002.
• Passed 98 to 9 in the House on March 13, 2002.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on March 13, 2002.
  • Amendment offered by Sen. Ken Sikkema (R) on March 14, 2002, to correct a drafting error in the House-passed version of the bill. The amendment passed by voice vote in the Senate on March 14, 2002.
  • Amendment offered by Sen. Ken Sikkema (R) on March 14, 2002, to authorize the Authority to enter joint venture and partnership agreements with governmental entities, including state authorities, municipalities, counties, and townships, police, fire and other public safety organizations, judicial entities, medical entities, schools, colleges, universities, hospitals, libraries, community centers, and local economic development entities, to acquire, construct, develop, create, maintain, own, and operate all or portions of a broadband infrastructure system for non-commercial use. The amendment passed by voice vote in the Senate on March 14, 2002.
• Passed 32 to 3 in the Senate on March 14, 2002, to concur with the House-passed version of the bill, as amended.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on March 14, 2002, to concur with the House-passed version of the bill, as amended.
• Passed 94 to 10 in the House on March 14, 2002, to concur with the Senate amendments to the House-passed version of the bill.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. John Engler on March 14, 2002.