2009 House Bill 4257 / Public Act 182

Repeal certain small phone company price control exemption

Introduced in the House

Feb. 11, 2009

Introduced by Rep. Tim Melton (D-29)

To repeal an exemption for small telephone companies on a government-mandated price control that prohibits intrastate toll service charges greater than out-of-state tolls.

Referred to the Committee on Energy and Technology

Dec. 2, 2009

Reported without amendment

With the recommendation that the substitute (H-6) be adopted and that the bill then pass.

Dec. 3, 2009

Substitute offered

To replace the previous version of the bill with one that would impose what is essentially a new tax on all phone service providers (except Voice Over Internet Protocol of VOIP providers). See House-passed version.

The substitute passed by voice vote

Amendment offered by Rep. Douglas Geiss (D-22)

To clarify details of the new assessment exeption for VOIP service.

The amendment passed by voice vote

Passed in the House 101 to 5 (details)

To impose what is essentially a new tax on all phone service providers (except Voice Over Internet Protocol providers) to pay a subsidy to small phone companies for a reduction in intrastate toll rates they would be allowed to charge. The bill repeals an exemption for those small companies from a government-mandated price control that prohibits intrastate toll service charges greater than out-of-state tolls.

Received in the Senate

Dec. 8, 2009

Referred to the Committee on Energy Policy and Public Utilities

Dec. 9, 2009

Reported without amendment

With the recommendation that the bill pass.

Amendment offered by Sen. Dennis Olshove (D-9)

To allow the small phone companies to index certain rates capped by this statute to the (presumably higher) rates in effect in December, 2009 rather than the ones in July, 2009.

The amendment failed by voice vote

Passed in the Senate 37 to 0 (details)

To impose what is essentially a new tax on all phone service providers (except Voice Over Internet Protocol providers) to pay a subsidy to small phone companies for a reduction in intrastate toll rates they would be allowed to charge. The bill repeals an exemption for those small companies from a government-mandated price control that prohibits intrastate toll service charges greater than out-of-state tolls.

Signed by Gov. Jennifer Granholm

Dec. 17, 2009