Public Act 480 of 2006

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• Introduced by Rep. Mike Nofs (R) on September 12, 2006, to create a state video service authorization system that would replace the current system of local franchising of cable TV providers, and also would apply to new providers who would provide service through phone lines. Providers would have to provide customers with local stations and "public access" stations, as is currently required for cable systems. Providers would have to pay a fee (tax) of up to five percent of gross revenues (which presumably would be passed on to customers), and would be given to local governments.
  • Referred to the House Energy and Technology Committee on September 12, 2006.
    • Reported in the House on September 20, 2006, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
  • Substitute offered in the House on September 21, 2006, to replace the previous version of the bill with one that revises many details but does not change the overall substance of the bill as previously described. Under the substitute, the maximum franchise fee (tax) would be 5 percent of a provider's gross revenues in a jurisdiction, plus an additional 1 percent for "community access" facilities. The state Public Service Commission would create a standard video services application form, and providers would submit this to local governments. It also revises the treatment of taxes and tax credits paid by pbone companies offering video in a way that results in higher payments to local governments. The substitute passed in the House (101 to 6) on September 21, 2006. [Vote Details and Comments]
  • Amendment offered by Rep. Mike Nofs (R) on September 21, 2006, to require that if a video services provider voluntarily enters into a franchise agreement with a local government that is different from the standard state agreement, the local government must also offer the same terms to any other provider in its jurisdiction. The amendment passed in the House by voice vote on September 21, 2006.
• Passed in the House (80 to 21) on November 14, 2006, to require the Public Service Commission to create a state video service franchise application that would be submitted to local governments by both cable TV providers and phone companies providing video through phone lines. All providers would have to offer local stations, and any "public access" stations currently provided by cable systems. Local governments would be allowed (but not required) to impose a fee (tax) of five percent of gross revenues plus an additional 1 percent for public access facilities. [Vote Details and Comments]
• Received in the Senate on November 28, 2006.
  • Referred to the Senate Technology and Energy Committee on November 28, 2006.
    • Reported in the Senate on December 5, 2006, with the recommendation that the bill be referred to the Committee on Government Operations.
  • Referred to the Senate Government Operations and Reform Committee on December 5, 2006.
    • Reported in the Senate on December 12, 2006, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.
  • Substitute offered in the Senate on December 12, 2006, to replace the previous version of the bill with one that increases from 1 percent to 2 percent the amount local governments are allowed (but not required) to tax video service providers for "public, educational governmental programming facilities" (PEG); allows that tax to be used for these community access channel operations rather than just capital costs; adds more prohibitions against "slamming" by providers (adding unauthorized services to a customer's package); imposes on providers a pro-rated share of an aggregate $1 million charge to pay for PSC regulation; includes provisions against local governments imposing other charges on providers; and revises the procedures related to right-of-way taxes imposed under the "Metro Act;" and more. The substitute passed in the Senate by voice vote on December 12, 2006.
  • Amendment offered by Sen. Patricia Birkholz (R), Sen. Nancy Cassis (R) and Sen. Tom George (R) on December 12, 2006, to prohibit local cable TV providers from choosing to be regulated under the proposed law rather than under the terms of their existing local franchise agreement ("abrogating") unless other providers have signed up at least 5 percent of the households in a provider's service area. The amendment failed in the Senate by voice vote on December 12, 2006.
• Passed in the Senate (26 to 12) on December 12, 2006, to require the Public Service Commission to create a state video service franchise application that would be submitted to local governments by both cable TV providers and phone companies providing video through phone lines. All providers would have to offer local stations, and any "public access" stations currently provided by cable systems. Local governments would be allowed (but not required) to impose a fee (tax) of five percent of gross revenues plus an additional 2 percent for public access facilities. [Vote Details and Comments]
• Received in the House on December 12, 2006, to concur with the Senate-passed version of the bill, which raises the maximum allowable community access channel tax from 1 percent to 2 percent, and makes other changes. Passed in the House (86 to 21) on December 12, 2006. [Vote Details and Comments]
• Signed by Gov. Jennifer Granholm on December 21, 2006.