2001 Senate Bill 881 / 2002 Public Act 49

Introduced in the Senate

Nov. 29, 2001

Introduced by Sen. Leon Stille (R-32)

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 Committee on Technology and Energy

Feb. 19, 2002

Substitute offered

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

Feb. 20, 2002

Passed in the Senate 33 to 3 (details)

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.

Received in the House

Feb. 20, 2002

March 13, 2002

Substitute offered

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

Amendment offered by Rep. Bob Brown (D-16)

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

Passed in the House 98 to 9 (details)

Received in the Senate

March 13, 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.

March 14, 2002

Amendment offered by Sen. Ken Sikkema (R-31)

To correct a drafting error in the House-passed version of the bill.

The amendment passed by voice vote

Amendment offered by Sen. Ken Sikkema (R-31)

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

Passed in the Senate 32 to 3 (details)

To concur with the House-passed version of the bill, as amended.

Received in the House

March 14, 2002

Passed in the House 94 to 10 (details)

To concur with the Senate amendments to the House-passed version of the bill.

Received in the Senate

March 14, 2002

Signed by Gov. John Engler

March 14, 2002