1.1                          A bill for an act 
  1.2             relating to telecommunications; modifying and 
  1.3             recodifying telecommunications laws; appropriating 
  1.4             money; amending Minnesota Statutes 1998, section 
  1.5             13.71, by adding a subdivision; proposing coding for 
  1.6             new law as Minnesota Statutes, chapter 237A; repealing 
  1.7             Minnesota Statutes 1998, sections 237.01; 237.011; 
  1.8             237.02; 237.03; 237.035; 237.04; 237.05; 237.06; 
  1.9             237.065; 237.067; 237.068; 237.069; 237.07; 237.071; 
  1.10            237.072; 237.075; 237.076; 237.081; 237.082; 237.09; 
  1.11            237.10; 237.11; 237.115; 237.12; 237.121; 237.14; 
  1.12            237.15; 237.16; 237.162; 237.163; 237.164; 237.17; 
  1.13            237.18; 237.19; 237.20; 237.21; 237.22; 237.23; 
  1.14            237.231; 237.24; 237.25; 237.26; 237.27; 237.28; 
  1.15            237.295; 237.30; 237.33; 237.34; 237.35; 237.36; 
  1.16            237.37; 237.38; 237.39; 237.40; 237.44; 237.45; 
  1.17            237.46; 237.461, subdivision 1; 237.47; 237.49; 
  1.18            237.50; 237.51, subdivisions 1 and 5; 237.52; 237.53; 
  1.19            237.54; 237.55; 237.56; 237.57; 237.58; 237.59; 
  1.20            237.60; 237.61; 237.62; 237.625; 237.626; 237.63; 
  1.21            237.64; 237.65; 237.66; 237.661; 237.662; 237.663; 
  1.22            237.67; 237.68; 237.69; 237.70, subdivisions 1, 2, 3, 
  1.23            5, 6, and 7; 237.701; 237.71; 237.711; 237.73; 237.74; 
  1.24            237.75; 237.76; 237.761; 237.762; 237.763; 237.764; 
  1.25            237.765; 237.766; 237.767; 237.768; 237.769; 237.770; 
  1.26            237.771; 237.772; 237.773; 237.774; 237.775; 237.79; 
  1.27            237.80; 237.81; 238.01; 238.02; 238.03; 238.08; 
  1.28            238.081; 238.082; 238.083; 238.084; 238.086; 238.11; 
  1.29            238.12; 238.15; 238.16; 238.17; 238.18; 238.22, 
  1.30            subdivisions 1, 2, 4, 5, 6, 7, 8, and 9; 238.23; 
  1.31            238.24; 238.241; 238.242; 238.25; 238.26; 238.27; 
  1.32            238.35; 238.36; 238.37; 238.38; 238.39; 238.40; 
  1.33            238.41; 238.42; and 238.43; Minnesota Statutes 1999 
  1.34            Supplement, sections 237.036; 237.066; 237.461, 
  1.35            subdivisions 2, 3, and 4; 237.462; 237.51, subdivision 
  1.36            5a; 237.5799; 237.70, subdivision 4a; and 238.22, 
  1.37            subdivision 3; Minnesota Rules, parts 7817.0100; 
  1.38            7817.0200; 7817.0300; 7817.0400; 7817.0500; 7817.0600; 
  1.39            7817.0700; 7817.0800; 7817.0900; and 7817.1000.  
  1.40  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.41                             ARTICLE 1 
  1.42           TELECOMMUNICATIONS SERVICE GENERAL REGULATION
  2.1      Section 1.  [237A.01] DEFINITIONS.] 
  2.2      Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
  2.3   the terms defined in this section have the meanings given them. 
  2.4      Subd. 2.  [ACCESS LINE.] "Access line" means company-owned 
  2.5   facilities of a telecommunication service provider that are 
  2.6   furnished to permit switched access to a telecommunications 
  2.7   network and that extend from a switching facility to the 
  2.8   demarcation point on the property where a telecommunications 
  2.9   service subscriber is served.  The term includes access lines 
  2.10  provided to residential and business subscribers and Centrex 
  2.11  access lines on a trunk-equivalent basis, but does not include 
  2.12  private nonswitched or wide-area telephone service access lines. 
  2.13     Subd. 3.  [ACCESS SERVICE.] "Access service" means the 
  2.14  provision of access to local service facilities for the purpose 
  2.15  of originating or terminating toll calls. 
  2.16     Subd. 4.  [ACTUAL COMPETITION.] "Actual competition" means 
  2.17  a local service market in which at least two facilities-based 
  2.18  local service providers are offering a telecommunications 
  2.19  service. 
  2.20     Subd. 5.  [AFFILIATE.] "Affiliate" means a person that, 
  2.21  directly or indirectly, owns or controls, is owned or controlled 
  2.22  by, or is under common ownership or control with, another 
  2.23  person.  For purposes of this chapter, the term "own" means to 
  2.24  own an equity interest, or the equivalent of an equity interest, 
  2.25  of more than five percent. 
  2.26     Subd. 6.  [CABLE SERVICE.] "Cable service" means (1) the 
  2.27  one-way transmission to subscribers of video programming or 
  2.28  other programming service, and (2) subscriber interaction, if 
  2.29  any, that is required for the selection or use of the video 
  2.30  programming or other programming service.  The content of cable 
  2.31  service is controlled by the provider.  Cable service does not 
  2.32  include high-speed data transport. 
  2.33     Subd. 7.  [COMMISSION.] "Commission" means the public 
  2.34  utilities commission. 
  2.35     Subd. 8.  [DEPARTMENT.] "Department" means the department 
  2.36  of commerce. 
  3.1      Subd. 9.  [FACILITIES BASED.] "Facilities based" refers to 
  3.2   accessing end-user telecommunications service customers through 
  3.3   overbuilding or utilizing leased or purchased network elements.  
  3.4      Subd. 10.  [HIGH-SPEED DATA TRANSPORT.] "High-speed data 
  3.5   transport" means a telecommunications service that uses 
  3.6   switched, broadband telecommunications capability (1) to enable 
  3.7   users to subscribe to an information service, or (2) to 
  3.8   originate or receive voice, data, graphics, and video 
  3.9   information of the subscriber's choosing, regardless of the 
  3.10  technology employed, at transmission speeds of 256 kilobits per 
  3.11  second or greater. 
  3.12     Subd. 11.  [INCUMBENT LOCAL SERVICE PROVIDER.] "Incumbent 
  3.13  local service provider" means any local service provider, that 
  3.14  either itself or its predecessors in interest, on January 1, 
  3.15  1985, owned and operated a local public switched 
  3.16  telecommunications network in Minnesota. 
  3.17     Subd. 12.  [INFORMATION SERVICE.] "Information service" 
  3.18  means the offering of a capability for generating, acquiring, 
  3.19  storing, transforming, processing, retrieving, utilizing, or 
  3.20  making available information via telecommunications, and 
  3.21  includes electronic publishing, but does not include any use of 
  3.22  any such capability for managing, controlling, or operating a 
  3.23  telecommunications system or managing a telecommunications 
  3.24  service.  Information service does not include high-speed data 
  3.25  transport. 
  3.26     Subd. 13.  [LOCAL GOVERNMENT UNIT.] "Local government unit" 
  3.27  means a county or a statutory or home rule charter city. 
  3.28     Subd. 14.  [LOCAL LONG-DISTANCE SERVICE.] "Local 
  3.29  long-distance service" means a telecommunications service 
  3.30  originating and terminating within Minnesota for which there is 
  3.31  made a separate charge not included in contracts with 
  3.32  subscribers for local service. 
  3.33     Subd. 15.  [LOCAL PUBLIC SWITCHED TELECOMMUNICATIONS 
  3.34  NETWORK.] "Local public switched telecommunications network" 
  3.35  means a collective system of switches, transmission equipment, 
  3.36  or other facilities or combination of them by which 
  4.1   telecommunications service subscribers can originate, transport, 
  4.2   or terminate telecommunications within a discrete geographic 
  4.3   area. 
  4.4      Subd. 16.  [LOCAL SERVICE.] "Local service" means 
  4.5   telecommunications service within an area in which calls 
  4.6   originate and terminate without a toll charge. 
  4.7      Subd. 17.  [LOCAL SERVICE AREA.] "Local service area" means 
  4.8   a geographic area established by the commission in which 
  4.9   telecommunications services provided by a local service provider 
  4.10  or eligible telecommunications carrier originate and terminate 
  4.11  without a toll charge. 
  4.12     Subd. 18.  [LOCAL SERVICE PROVIDER.] "Local service 
  4.13  provider" means a telecommunications service provider that 
  4.14  provides local service. 
  4.15     Subd. 19.  [NETWORK ELEMENT.] "Network element" means a 
  4.16  facility or equipment, capable of being disaggregated from other 
  4.17  network elements, used alone or in combination for providing 
  4.18  local service.  The term also includes features, functions, and 
  4.19  capabilities that are provided by means of such facility or 
  4.20  equipment, including subscriber numbers, databases, signaling 
  4.21  systems, and information sufficient for billing and collection, 
  4.22  or used in the transmission, routing, or other provision of a 
  4.23  telecommunications service. 
  4.24     Subd. 20.  [NONQUALIFIED CARRIER.] "Nonqualified carrier" 
  4.25  means any local service provider, or its affiliate operating in 
  4.26  such local service provider's territory, who has not 
  4.27  demonstrated to the commission that 25 percent of its statewide 
  4.28  residential basic telephone customer base, measured on the basis 
  4.29  of access lines, is subject to actual competition, and who the 
  4.30  commission has determined is not in compliance with the 
  4.31  competitive checklist under United States Code, title 47, 
  4.32  section 271. 
  4.33     Subd. 21.  [OFFERED OR OFFERING.] A service is "offered" or 
  4.34  a service provider is "offering" a service under this section 
  4.35  when the commission determines that (1) the service provider is 
  4.36  physically able to deliver the service, with the addition of no 
  5.1   or only minimal additional investment, (2) no regulatory, 
  5.2   technical, or other impediments to customers taking service 
  5.3   exist, and (3) customers are reasonably aware that they may 
  5.4   purchase the service from the carrier. 
  5.5      Subd. 22.  [OVERBUILDER.] "Overbuilder" refers to accessing 
  5.6   end-user telecommunications service customers substantially 
  5.7   through facilities redundant of an incumbent local service 
  5.8   provider.  
  5.9      Subd. 23.  [PERSON.] "Person" means any individual, 
  5.10  trustee, partnership, municipality, association, corporation, or 
  5.11  other legal entity, however organized. 
  5.12     Subd. 24.  [QUALIFIED CARRIER.] "Qualified carrier" means 
  5.13  any former, nonqualified carrier (1) who has demonstrated to the 
  5.14  commission either that 25 percent of its statewide residential 
  5.15  basic telephone service customers are subject to actual 
  5.16  competition, measured on the basis of access lines, or that the 
  5.17  carrier offers high-speed data transport throughout its service 
  5.18  territory; and (2) who the commission has determined is in 
  5.19  compliance with the competitive checklist under United States 
  5.20  Code, title 47, section 271. 
  5.21     Subd. 25.  [TELECOMMUNICATIONS.] "Telecommunications" means 
  5.22  the electronic transmission, between or among points specified 
  5.23  by the user, of information of the user's choosing without 
  5.24  change in the form or content of the information as sent and 
  5.25  received. 
  5.26     Subd. 26.  [TELECOMMUNICATIONS 
  5.27  SERVICE.] "Telecommunications service" means the offering of 
  5.28  telecommunications for a fee directly to the public, or to such 
  5.29  classes of users as to be effectively available directly to the 
  5.30  public, regardless of the facilities used, and includes 
  5.31  high-speed data transport. 
  5.32     Subd. 27.  [TELECOMMUNICATIONS SERVICE 
  5.33  PROVIDER.] "Telecommunications service provider" means any 
  5.34  provider of telecommunications service. 
  5.35     Subd. 28.  [UNASSIGNED TERRITORY.] "Unassigned territory" 
  5.36  means a geographic area that has not been included in any 
  6.1   telecommunications service provider's local service territory in 
  6.2   official service area maps on file with the department. 
  6.3      Subd. 29.  [WHOLESALE TELECOMMUNICATIONS 
  6.4   SERVICE.] "Wholesale telecommunications service" means the 
  6.5   provision of interconnection, access, unbundled network 
  6.6   elements, alone or in combination; or resale to other local 
  6.7   service providers.  Wholesale telecommunications service also 
  6.8   includes any service, term, element, or duty, including 
  6.9   collocation, necessary to implement the provision of service 
  6.10  under clause (1) or (2). 
  6.11     Sec. 2.  [237A.02] [COMMISSION AUTHORITY; GOALS.] 
  6.12     Subdivision 1.  [REGULATORY AUTHORITY.] The commission 
  6.13  shall regulate telecommunications services under this chapter. 
  6.14     Subd. 2.  [STATE GOALS, CONSIDERATIONS.] The commission 
  6.15  shall consider the following state goals as it executes its 
  6.16  regulatory duties with respect to telecommunications services: 
  6.17     (1) supporting universal service; 
  6.18     (2) encouraging economically efficient deployment of 
  6.19  infrastructure for the highest speed telecommunications services 
  6.20  and greatest capacity for voice, video, and data transmission; 
  6.21     (3) encouraging fair and robust competition for 
  6.22  telecommunications and cable services in a competitively neutral 
  6.23  regulatory manner; 
  6.24     (4) maintaining or improving quality of telecommunications 
  6.25  and cable services; 
  6.26     (5) promoting customer choice; 
  6.27     (6) ensuring consumer protections are maintained; and 
  6.28     (7) encouraging voluntary resolution of issues between and 
  6.29  among competing providers and discouraging litigation. 
  6.30     Sec. 3.  [237A.03] [LOCAL SERVICE PROVIDER ENTRY 
  6.31  REGULATION.] 
  6.32     Subdivision 1.  [LOCAL SERVICE FITNESS DETERMINATION AND 
  6.33  CERTIFICATE.] No person shall provide local service in Minnesota 
  6.34  without first obtaining (1) a determination from the commission 
  6.35  that the person possesses the managerial, operational, 
  6.36  technical, and financial resources to provide the proposed local 
  7.1   service, is under no legal barrier to providing local service in 
  7.2   Minnesota, and will not jeopardize the public health, safety, or 
  7.3   welfare, and (2) a certificate of authority from the commission 
  7.4   under terms and conditions the commission finds to be consistent 
  7.5   with fair and reasonable competition, universal service, and the 
  7.6   provision of affordable telephone service of a quality 
  7.7   consistent with this chapter and the commission's rules. 
  7.8      Subd. 2.  [APPLICATION REQUIREMENTS.] An application for a 
  7.9   certificate of authority to provide local service must include 
  7.10  the following information: 
  7.11     (1) the applicant's full name and address, including the 
  7.12  address of the applicant's place of business and (i) if a 
  7.13  corporation, the names, addresses, and telephone numbers of its 
  7.14  officers, (ii) if a partnership or limited liability 
  7.15  partnership, the names, addresses, and telephone numbers of 
  7.16  persons authorized to bind the partnership, or (iii) if a 
  7.17  limited liability company, the names, addresses, and telephone 
  7.18  numbers of its managers; 
  7.19     (2) a service area map for the area the applicant proposes 
  7.20  to serve; 
  7.21     (3) a statement of the applicant's experience in providing 
  7.22  local service in Minnesota and other jurisdictions, including 
  7.23  (i) the types of services provided, (ii) the dates and nature of 
  7.24  state or federal authorization to provide those services, (iii) 
  7.25  the length of time it has provided those services, and (iv) 
  7.26  pending or completed criminal, civil, or administrative action 
  7.27  taken against the applicant by a state or federal authority, 
  7.28  including any settlements, in connection with the applicant's 
  7.29  provision of telecommunications service; 
  7.30     (4) a list of the applicant's affiliates, subsidiaries, and 
  7.31  parent organizations, if any, providing telecommunications 
  7.32  service in Minnesota; 
  7.33     (5) for the most recent fiscal year, a financial statement 
  7.34  of the applicant, consisting of a balance sheet, an income 
  7.35  statement, and statement of sources and uses of cash; 
  7.36     (6) a proposed price list or tariff setting forth the 
  8.1   rates, terms, and conditions of each service offering; 
  8.2      (7) a description of the applicant's customer service 
  8.3   operations, policies, and procedures; 
  8.4      (8) the applicant's certificate of corporation as filed 
  8.5   with the office of the secretary of state; and 
  8.6      (9) any other information the applicant wishes to provide. 
  8.7      Sec. 4.  [237A.04] [LOCAL GOVERNMENT TELECOMMUNICATIONS 
  8.8   SERVICE.] 
  8.9      Subdivision 1.  [AUTHORITY TO PROVIDE LOCAL SERVICE.] A 
  8.10  local government unit is entitled to provide facilities-based 
  8.11  local service within its own borders, subject to this chapter 
  8.12  and to a commission determination that (1) 50 percent or more of 
  8.13  the customers within the local government unit's borders are not 
  8.14  subject to actual competition, and (2) the local service 
  8.15  facilities are designed and constructed to allow for the 
  8.16  provision of wholesale service. 
  8.17     Subd. 2.  [AUTHORITY TO ENTER INTO JOINT VENTURES.] A local 
  8.18  government unit with a certificate of authority to provide local 
  8.19  service may enter into a joint venture with a telecommunications 
  8.20  service provider to provide local service within the local 
  8.21  government unit's borders. 
  8.22     Sec. 5.  [237A.05] [LONG-DISTANCE ENTRY.] 
  8.23     Subdivision 1.  [REGISTRATION REQUIREMENT.] No person shall 
  8.24  provide local long-distance service in Minnesota without first 
  8.25  filing the following information with the commission: 
  8.26     (1) the name, address, and telephone number of the entity 
  8.27  that will provide the local long-distance service; 
  8.28     (2) the name and address of the provider's registered agent 
  8.29  in Minnesota; and 
  8.30     (3) the name, address, and telephone number of the primary 
  8.31  contact for the provider with respect to telecommunications 
  8.32  regulatory issues. 
  8.33     Subd. 2.  [PREPAID SERVICES; BOND REQUIRED.] (a) A person 
  8.34  has authority to provide prepaid telecommunications services if 
  8.35  the person meets the appropriate certification or registration 
  8.36  requirements under this chapter and furnishes to the commission 
  9.1   a performance guaranty in the form of a bond, letter of credit, 
  9.2   certificate of deposit, or other instrument approved by the 
  9.3   commission in an amount determined by the commission by rule as 
  9.4   adequate to provide compensation for damages resulting from the 
  9.5   failure to meet quality of service standards or to deliver 
  9.6   promised services.  The commission may vary the amount 
  9.7   furnished, dependent on the type of service offered or proposed 
  9.8   to be offered.  The guaranty amount must be proportional to the 
  9.9   number of customers served or proposed to be served.  The 
  9.10  guaranty amount must be adjusted to reflect the number of 
  9.11  customers served and renewed annually. 
  9.12     (b) A person may not provide or offer to provide prepaid 
  9.13  telecommunications services if the person is not in compliance 
  9.14  with this section. 
  9.15                             ARTICLE 2 
  9.16                         LOCAL COMPETITION
  9.17     Section 1.  [237A.06] [REGULATION OF WHOLESALE SERVICES.] 
  9.18     Subdivision 1.  [WHOLESALE SERVICE OBLIGATION.] (a) All 
  9.19  incumbent local service providers are required to provide high 
  9.20  quality wholesale services to any telecommunications service 
  9.21  provider pursuant to this section.  
  9.22     (b) The commission may require incumbent local service 
  9.23  providers to furnish network elements approved by the Federal 
  9.24  Communications Commission and may require incumbent local 
  9.25  service providers to furnish other network elements the 
  9.26  commission believes are necessary and that if not provided would 
  9.27  impair the ability of the telecommunications service provider 
  9.28  seeking the network element to provide the services it seeks to 
  9.29  offer.  
  9.30     (c) Incumbent local service providers shall provide all 
  9.31  network elements approved by the Federal Communications 
  9.32  Commission or the commission alone or in combination with other 
  9.33  network elements.  
  9.34     Subd. 2.  [MINIMUM SERVICE QUALITY.] Wholesale 
  9.35  telecommunications service must be provided at a level that is 
  9.36  at least equal in quality to the highest level of quality 
 10.1   provided by the wholesale service provider to itself or to its 
 10.2   affiliates.  Compliance with this subdivision does not 
 10.3   necessarily demonstrate high quality service required by 
 10.4   subdivision 1. 
 10.5      Subd. 3.  [WHOLESALE SERVICE QUALITY REQUIREMENTS AND 
 10.6   RULES.] (a) A wholesale service provider shall provide firm 
 10.7   order confirmation of all orders for wholesale service within 24 
 10.8   hours after receiving an order.  The commission shall approve an 
 10.9   interim form and manner for ordering and acknowledgment to be 
 10.10  used by all wholesale service providers and their wholesale 
 10.11  customers, until final wholesale service quality rules are 
 10.12  adopted. 
 10.13     (b) A wholesale service provider shall accurately install 
 10.14  and provision orders for network elements, at least 90 percent 
 10.15  of the time, as follows: 
 10.16     (1) for common transport, one day; 
 10.17     (2) for loops, local switching, operator systems, signal 
 10.18  link transport, tandem switching, and loop combinations, two 
 10.19  days; 
 10.20     (3) for signal transfer points, three days; 
 10.21     (4) for dedicated transport, other than OC-3, five days; 
 10.22     (5) for dedicated transport through an OC-3 line, 15 days; 
 10.23     (6) for a local switch conditioning combination, 20 days.  
 10.24     (c) A wholesale service provider shall clear 95 percent of 
 10.25  all good faith trouble reports within 24 hours after a problem 
 10.26  is reported to the wholesale service provider. 
 10.27     (d) The absolute value of any billing errors or adjustments 
 10.28  with respect to wholesale services provided to a wholesale 
 10.29  service customer shall not exceed one percent of the total 
 10.30  amount of services billed to the wholesale customer per month. 
 10.31     (e) All wholesale service providers shall report quarterly 
 10.32  to the commission regarding their compliance with the wholesale 
 10.33  service requirements in this section and under any commission 
 10.34  rules.  The form and manner of the report must be approved by 
 10.35  the commission. 
 10.36     Subd. 4.  [WHOLESALE SERVICE RULES.] (a) Within one year 
 11.1   after the effective date of this agreement, the commission shall 
 11.2   adopt rules establishing requirements for wholesale 
 11.3   telecommunications services offered in the state.  These rules 
 11.4   must be consistent with the requirements of this section, but 
 11.5   may be more stringent than the minimum requirements set forth in 
 11.6   subdivision 4 and are in addition to any federal requirements 
 11.7   relating to the provision of wholesale services. 
 11.8      (b) The rules must, at a minimum: 
 11.9      (1) prescribe service interval guidelines for responding to 
 11.10  requests for wholesale services and provisioning service orders; 
 11.11     (2) prescribe methods for determining if wholesale services 
 11.12  are being provided on a nondiscriminatory and competitively 
 11.13  neutral basis; 
 11.14     (3) prescribe methodologies that wholesale 
 11.15  telecommunications service providers must employ in reporting 
 11.16  their compliance with wholesale service quality rules and the 
 11.17  requirements of this chapter; 
 11.18     (4) require the provision of equal access and 
 11.19  interconnection necessary to promote fair competition; 
 11.20     (5) provide for self-enforcing penalty mechanisms for rule 
 11.21  violations; and 
 11.22     (6) require unbundling and provision of network elements 
 11.23  and functions to at least the level required by existing federal 
 11.24  standards. 
 11.25     Subd. 5.  [MINIMUM STANDARDS.] The commission's rule 
 11.26  standards for wholesale services must be established as minimum 
 11.27  standards.  In any particular case, stricter standards may apply 
 11.28  to the provision of wholesale services if required by the terms 
 11.29  of the parties' interconnection agreements. 
 11.30     Subd. 6.  [PROHIBITED PRACTICES.] A wholesale service 
 11.31  provider or overbuilder shall not do any of the following: 
 11.32     (1) upon request, fail to disclose in a timely and uniform 
 11.33  manner information necessary for the design of equipment and 
 11.34  services that will meet specifications for the provision of 
 11.35  wholesale services; 
 11.36     (2) intentionally impair the speed, quality, or efficiency 
 12.1   of services, products, or facilities offered to a consumer; 
 12.2      (3) fail to provide a service, product, or facility to a 
 12.3   customer in accordance with the commission's rules and orders; 
 12.4      (4) refuse to provide a service, product, or facility to a 
 12.5   telecommunications service provider in accordance with the 
 12.6   commission's rules and orders; and 
 12.7      (5) impose unreasonable or discriminatory restrictions on 
 12.8   the resale of its services. 
 12.9      Subd. 7.  [GENERAL RULE.] When the public interest requires 
 12.10  every wholesale service provider or overbuilder shall, for a 
 12.11  reasonable compensation, permit physical connections to be made 
 12.12  between telecommunications service providers' lines or 
 12.13  facilities.  If the incumbent local service provider or 
 12.14  overbuilding concerned fails to agree upon physical connection, 
 12.15  or the incumbent local service provider or overbuilder and a 
 12.16  telecommunications service provider fail to agree on the terms 
 12.17  and conditions upon which the connection must be made, 
 12.18  application may be made to the commission for an order requiring 
 12.19  the connection and fixing the compensation, terms, and 
 12.20  conditions of the connection.  If after investigation and 
 12.21  hearing the commission finds that physical connections will not 
 12.22  result in irreparable injury to the incumbent local service 
 12.23  provider or overbuilder, the commission shall by order direct 
 12.24  that the connections be made and prescribe reasonable conditions 
 12.25  and compensation for the connections and for the joint use of 
 12.26  the connections.  The order must also determine who must pay for 
 12.27  the expense of making and maintaining the connection or 
 12.28  connections.  When application is made requesting physical 
 12.29  connection, it is presumed that the connection is necessary and 
 12.30  that the public convenience will be promoted by the connection.  
 12.31  The burden of overcoming the presumption is on the party 
 12.32  resisting the application.  The incumbent local service provider 
 12.33  or overbuilder so connecting shall give service over the 
 12.34  connecting line or lines without preference to or discrimination 
 12.35  against any service or person. 
 12.36     Subd. 8.  [PRICE FOR WHOLESALE SERVICES.] Prices for 
 13.1   wholesale services must be established or existing rates 
 13.2   maintained by the commission, but the rates may be adjusted by 
 13.3   the commission if necessary, based on a forward-looking economic 
 13.4   cost methodology that must include, but is not limited to, 
 13.5   consideration of the following: 
 13.6      (1) the use of the most efficient telecommunications 
 13.7   technology currently available and the least cost network 
 13.8   configuration consistent with providing the highest quality 
 13.9   telecommunications service; 
 13.10     (2) forward-looking depreciation rates; 
 13.11     (3) a reasonable allocation of forward-looking joint and 
 13.12  common costs; 
 13.13     (4) forward-looking cost of capital; and 
 13.14     (5) Minnesota tax rates and, if applicable, Minnesota 
 13.15  facility placement requirements, Minnesota topography, and 
 13.16  Minnesota climate. 
 13.17     Sec. 2.  [237A.07] [TELECOMMUNICATIONS SERVICE AREAS.] 
 13.18     No local service provider shall unreasonably limit its 
 13.19  telecommunications service offerings to particular geographic 
 13.20  areas unless facilities necessary for the service are not 
 13.21  available and cannot be made available at reasonable costs. 
 13.22     Sec. 3.  [237A.08] [UNIFORM TELECOMMUNICATIONS REGULATION.] 
 13.23     (a) The commission shall prescribe or maintain uniform 
 13.24  rules and classifications pertaining to the conduct of 
 13.25  intrastate telecommunications service and a system of accounting 
 13.26  to be used by telecommunications service providers in 
 13.27  transacting business.  The commission shall further prescribe 
 13.28  and furnish forms for reports, all of which must conform as 
 13.29  nearly as practicable to the rules, classifications, accounting 
 13.30  systems, and reports prescribed by the Federal Communications 
 13.31  Commission applicable to interstate telecommunications services. 
 13.32     (b) The commission shall use its best endeavors to 
 13.33  establish uniformity in practice in all matters pertaining to 
 13.34  regulation of telecommunications services. 
 13.35     Sec. 4.  [237A.09] [MERGERS AND ACQUISITIONS.] 
 13.36     Subdivision 1.  [COMMISSION CONSENT.] (a) No person may 
 14.1   purchase, acquire, or assume control of the property, capital 
 14.2   stock, bonds, securities, or other obligations, or the 
 14.3   franchises, rights, privileges, and immunities of any 
 14.4   nonqualified or qualified carrier without receiving the prior 
 14.5   consent of the commission. 
 14.6      (b) The transferor and transferee of any property described 
 14.7   in paragraph (a) shall both join in the application filed with 
 14.8   the commission for the approval of the purchase, acquisition, or 
 14.9   assumption of control. 
 14.10     Subd. 2.  [NOTICE TO CUSTOMERS.] At least 90 days prior to 
 14.11  applying to the commission for consent to a proposed sale, 
 14.12  acquisition or change of control of any property described in 
 14.13  subdivision 1, the transferor must provide notice to its 
 14.14  affected customers of its intent to sell, identify the name of 
 14.15  the proposed buyer, and provide the customer with the date, 
 14.16  time, and place of the public hearings to be held relating to 
 14.17  the transfer.  The notice must be included as a separate 
 14.18  document from the customer's monthly bill, but may be delivered 
 14.19  to the customer under the same cover as a monthly bill. 
 14.20     Subd. 3.  [PUBLIC HEARING.] At least 30 days prior to the 
 14.21  commission's deliberations about a proposed transfer of the 
 14.22  property described in subdivision 1, the commission must hold a 
 14.23  public hearing at a location within each affected local exchange 
 14.24  service territory, allowing the public an opportunity to be 
 14.25  heard and to present any concerns or comments regarding the 
 14.26  transfer. 
 14.27     Subd. 4.  [NET BENEFIT REQUIRED.] The commission may not 
 14.28  give consent to a transfer unless it finds that the transaction 
 14.29  will result in a net benefit to consumers affected by the 
 14.30  transfer.  For the purposes of this section, the term "net 
 14.31  benefit" means that on a preponderance of the evidence on the 
 14.32  record, the potential benefits to consumers that are likely to 
 14.33  be realized by the consummation of the transfer outweigh the 
 14.34  risks to consumers created by the transfer. 
 14.35     Sec. 5.  [237A.10] [RATE REGULATION OF NONQUALIFIED 
 14.36  CARRIERS.] 
 15.1      Subdivision 1.  [EXCLUSIVE REGULATION.] (a) All 
 15.2   telecommunications services provided by nonqualified carriers 
 15.3   are regulated exclusively under this section. 
 15.4      (b) Unless the commission otherwise orders, a nonqualified 
 15.5   carrier shall not change a rate for any telecommunications 
 15.6   service it provides, except as provided in this section. 
 15.7      Subd. 2.  [RATE CHANGE NOTICE.] In order to change a rate, 
 15.8   a nonqualified carrier must first provide 60 days notice to the 
 15.9   commission.  The notice shall include statements of fact, expert 
 15.10  opinions, substantiating documents, and exhibits supporting the 
 15.11  change requested and set for the proposed change in rates and 
 15.12  the proposed effective date of the rate change. 
 15.13     Subd. 3.  [RATE CHANGE SUSPENSION.] The commission, upon 
 15.14  objection by the department or the attorney general, may suspend 
 15.15  the effectiveness of a rate change proposed under paragraph 
 15.16  (a).  The suspension must not last longer than ten months beyond 
 15.17  the initial filing date. 
 15.18     Subd. 4.  [RATE CHANGE DETERMINATION, PROCEEDINGS 
 15.19  GENERALLY.] (a) During the suspension, the commission shall 
 15.20  determine whether all questions regarding the reasonableness of 
 15.21  the rates have been resolved to the satisfaction of the 
 15.22  parties.  If the commission finds that all significant issues 
 15.23  raised have not been resolved to the satisfaction of the 
 15.24  parties, the commission may refer the matter to the office of 
 15.25  administrative hearings with instructions for a public hearing 
 15.26  as a contested case under chapter 14, or may utilize any other 
 15.27  administrative process available to it under this chapter or 
 15.28  chapter 216A. 
 15.29     (b) All prehearing discovery activities of state agency 
 15.30  intervenors must be consolidated and conducted by the department.
 15.31     (c) If the commission does not make a final determination 
 15.32  concerning a schedule of rates within ten months after the 
 15.33  initial filing date, the schedule is deemed to have been 
 15.34  approved by the commission; except, if a settlement has been 
 15.35  submitted to and rejected by the commission, the schedule is 
 15.36  deemed to have been approved 12 months after the initial filing. 
 16.1      (d) For the purposes of this section, "final determination" 
 16.2   means the initial decision of the commission and not an order 
 16.3   that may be entered by the commission in response to a petition 
 16.4   for rehearing or other further relief.  The commission may 
 16.5   continue to suspend a proposed rate change until it resolves 
 16.6   these petitions. 
 16.7      Subd. 5.  [INTERIM RATE.] (a) Notwithstanding any 
 16.8   commission order suspending a proposed rate change, the 
 16.9   commission shall order an interim rate schedule into effect not 
 16.10  later than 60 days after the initial filing date of the proposed 
 16.11  rate change.  The commission may order the interim rate schedule 
 16.12  ex parte without a public hearing.  Notwithstanding the 
 16.13  provisions of sections 216.25 and 237A.29, no interim rate 
 16.14  schedule ordered by the commission under this section is subject 
 16.15  to an application for a rehearing or an appeal to a court until 
 16.16  the commission has rendered its final determination.  
 16.17     (b) Unless the commission finds that exigent circumstances 
 16.18  exist, the interim rate schedule must be calculated using the 
 16.19  proposed test-year cost of capital, rate base, and expenses, 
 16.20  except that it must include: 
 16.21     (1) a rate of return on common equity for the company equal 
 16.22  to that authorized by the commission in the company's most 
 16.23  recent rate proceeding; 
 16.24     (2) rate base or expense items the same in nature and kind 
 16.25  as those allowed by a currently effective order of the 
 16.26  commission in the company's most recent rate proceeding; and 
 16.27     (3) no change in the existing rate design, except for 
 16.28  products and services offered by nonregulated competitors. 
 16.29     (c) For a carrier that has not been subject to a prior 
 16.30  commission determination or that has not had a general rate 
 16.31  adjustment in the preceding three years, the commission shall 
 16.32  base the interim rate schedule on its most recent determination 
 16.33  concerning a similar carrier. 
 16.34     Subd. 6.  [REFUNDING EXCESS INTERIM RATE.] (a) If, at the 
 16.35  time of its final determination, the commission finds that the 
 16.36  interim rates are in excess of the rates in the final 
 17.1   determination, the commission shall order the company to refund 
 17.2   the excess amount collected under the interim rate schedule 
 17.3   including interest on it which must be at the rate of interest 
 17.4   determined by the commission.  The carrier shall begin 
 17.5   distributing the refund to its customers within 120 days of the 
 17.6   final order, not subject to rehearing or appeal. 
 17.7      (b) If, at the time of its final determination, the 
 17.8   commission finds that the interim rates are less than the rates 
 17.9   in the final determination, the commission shall prescribe a 
 17.10  method by which the carrier will recover the difference in 
 17.11  revenues from the date of the final determination to the date 
 17.12  the new rate schedules are put into effect. 
 17.13     (c) If the nonqualified company carrier fails to make 
 17.14  refunds within the period of time prescribed by the commission, 
 17.15  the commission shall sue for the refund and may recover on 
 17.16  behalf of all persons entitled to a refund.  In addition to the 
 17.17  amount of the refund and interest due, the commission is 
 17.18  entitled to recover reasonable attorney's fees, court costs, and 
 17.19  estimated costs of administering the distribution of the refund 
 17.20  to persons entitled to the refund.  A suit under this 
 17.21  subdivision must be instituted within two years after the end of 
 17.22  the period of time prescribed by the commission for repayment of 
 17.23  refunds. 
 17.24     Subd. 7.  [LIMITATION ON INTERIM RATE SCHEDULE.] The 
 17.25  commission shall not order an interim rate schedule in a general 
 17.26  rate case into effect as provided under subdivision 5 until at 
 17.27  least four months after it has made a final determination 
 17.28  concerning any previously filed change of the rate schedule or 
 17.29  the change has otherwise become effective under subdivision 4, 
 17.30  unless: 
 17.31     (1) the commission finds that a four-month delay would 
 17.32  unreasonably burden the carrier, its customers, or its 
 17.33  shareholders and that an earlier imposition of interim rates is 
 17.34  therefore necessary; or 
 17.35     (2) the carrier files a second general rate case at least 
 17.36  12 months after it has filed a previous general rate case for 
 18.1   which the commission has extended the suspension period under 
 18.2   subdivision 2. 
 18.3      Subd. 8.  [BURDEN OF PROOF.] The burden of proof to show 
 18.4   that the rate change is just and reasonable is on the 
 18.5   nonqualified carrier seeking the change. 
 18.6      Subd. 9.  [DETERMINATION WHEN PROPOSED RATE 
 18.7   UNACCEPTABLE.] If, after the hearing, the commission finds the 
 18.8   rates to be unjust or unreasonable or discriminatory, the 
 18.9   commission shall determine the rates to be charged or applied by 
 18.10  the nonqualified carrier for the service in question and shall 
 18.11  fix them by order to be served upon the carrier.  The rates must 
 18.12  thereafter be observed until changed, as provided by this 
 18.13  chapter.  In no event may the rates exceed the level of rates 
 18.14  requested by the nonqualified carrier, except that individual 
 18.15  rates may be adjusted upward or downward.  Rate design changes 
 18.16  are prospective from the effective date of the new rate 
 18.17  schedules approved by the commission. 
 18.18     Subd. 10.  [RATE BASE FACTORS, CONSIDERATIONS.] (a) The 
 18.19  commission, in the exercise of its powers under this chapter to 
 18.20  determine just and reasonable rates for nonqualified carriers, 
 18.21  shall give due consideration to the public need for adequate, 
 18.22  efficient, and reasonable service and to the need of the 
 18.23  nonqualified carrier for revenue sufficient to enable it to meet 
 18.24  the cost of furnishing the service, including adequate provision 
 18.25  for depreciation of its property used and useful in rendering 
 18.26  service to the public, and to earn a fair and reasonable return 
 18.27  upon the investment in the property. 
 18.28     (b) In determining the rate base upon which a nonqualified 
 18.29  carrier is to be allowed to earn a fair rate of return, the 
 18.30  commission shall consider evidence of (1) the cost of the 
 18.31  property when devoted to public use, (2) the prudent acquisition 
 18.32  cost to the carrier, less appropriate depreciation on each, (3) 
 18.33  construction work in progress, (4) offsets in the nature of 
 18.34  capital provided by sources other than the investors, and (5) 
 18.35  other expenses of a capital nature. 
 18.36     (c) To the extent that construction work in progress is 
 19.1   included in the rate base, the income used in determining the 
 19.2   actual return on the carrier's property may include an allowance 
 19.3   for funds used during construction. 
 19.4      (d) For purposes of determining rate base, the commission 
 19.5   shall consider the original cost of the carrier's property 
 19.6   included in the base and shall make no allowance for its 
 19.7   estimated current replacement value. 
 19.8      (e) The commission shall not make an allowance for 
 19.9   operating expenses incurred by a nonqualified carrier for 
 19.10  institutional advertising. 
 19.11     (f) The commission shall allow as operating expenses only 
 19.12  those charitable contributions that the commission deems prudent 
 19.13  and that qualify under section 290.21, subdivision 3, clause (b) 
 19.14  or (e).  The commission shall allow as operating expenses only 
 19.15  50 percent of the qualified contributions. 
 19.16     (g) The commission shall allow each nonqualified carrier 
 19.17  subject to the requirements of section 325F.692 to automatically 
 19.18  adjust tariffs or rates paid by information service providers to 
 19.19  reflect the reasonable cost to the company to comply with 
 19.20  section 325F.692. 
 19.21     Subd. 11.  [DISCRIMINATION PROHIBITED.] (a) A nonqualified 
 19.22  carrier shall not charge any person within a discrete wire 
 19.23  center or access line cluster greater or less compensation for 
 19.24  any intrastate service rendered by it than it charges any other 
 19.25  person within the same wire center or access line cluster for a 
 19.26  like and contemporaneous intrastate service under similar 
 19.27  circumstances. 
 19.28     (b) A nonqualified carrier that offers or provides a 
 19.29  telecommunications service to a customer on a separate, 
 19.30  stand-alone basis within a wire center or access line cluster 
 19.31  shall provide that telecommunications service to all situated 
 19.32  persons within that wire center or access line cluster. 
 19.33     Subd. 12.  [FILING REQUIREMENTS.] All nonqualified carriers 
 19.34  shall keep on file with the department a specific rate, toll, or 
 19.35  charge for every kind of telecommunications service, together 
 19.36  with all rules and classifications used by it in the conduct of 
 20.1   its telecommunications service business, including limitations 
 20.2   on liability.  The filings are governed by chapter 13. 
 20.3      Sec. 6.  [237A.11] [REGULATION OF QUALIFIED CARRIERS.] 
 20.4      Subdivision 1.  [ALTERNATIVE REGULATION PLANS; GENERAL 
 20.5   REQUIREMENTS.] (a) A qualified carrier may petition the 
 20.6   commission for approval of an alternative form of regulation 
 20.7   (AFOR) plan pursuant to this section. 
 20.8      (b) All AFOR plans must provide for the establishment of 
 20.9   three categories of competitive zones within the qualified 
 20.10  carrier's service territory. 
 20.11     Subd. 2.  [NONCOMPETITIVE ZONES.] (a) Any exchange areas 
 20.12  not meeting the standards for actual or effective competition 
 20.13  are considered noncompetitive zones and are subject to the 
 20.14  requirements set forth in paragraphs (b) to (e). 
 20.15     (b) The recurring and nonrecurring rates or prices for 
 20.16  telecommunications services that may be charged in a 
 20.17  noncompetitive zone by a qualified carrier must not exceed the 
 20.18  approved rate or prices on file with the commission for those 
 20.19  services on the date of the filing of the plan, and these rates 
 20.20  must not be changed except as provided under subdivision 3 or 4. 
 20.21     (c) Retail service quality rules must be included in any 
 20.22  AFOR plan and govern telecommunications service provided in 
 20.23  noncompetitive zones. 
 20.24     (d) Prices unique to a particular customer or group of 
 20.25  customers, or individual case-based pricing, may be allowed by 
 20.26  the commission in noncompetitive zones when differences in the 
 20.27  cost of providing a service or a service element justifies a 
 20.28  different price for a particular customer or group of customers. 
 20.29     (e) A qualified carrier in a noncompetitive zone may 
 20.30  promote the use of its services by offering a waiver of part or 
 20.31  all of a recurring or a nonrecurring charge, a redemption 
 20.32  coupon, or a premium with the purchase of a service.  The 
 20.33  customer group to which the promotion is available must be based 
 20.34  on reasonable distinctions among customers.  No single promotion 
 20.35  may be effective for longer than 90 days at a time.  The service 
 20.36  being promoted must have a price that is above the incremental 
 21.1   cost of the service, including the amortized cost of the 
 21.2   promotion.  A promotion may take effect the day after the notice 
 21.3   is filed with the commission.  The notice must identify 
 21.4   customers to whom the promotion is available and include cost 
 21.5   information demonstrating that the revenue from the service 
 21.6   covers incremental cost, including cost of the promotion.  A 
 21.7   qualified carrier that offers a promotion under this subsection 
 21.8   shall file a report on the promotion with the commission and the 
 21.9   department within 90 days of the conclusion of the promotion. 
 21.10     Subd. 3.  [ACTUAL COMPETITION ZONES.] (a) A qualified 
 21.11  carrier may lower its telecommunications services rates for 
 21.12  business customers in a particular local exchange service area 
 21.13  if 50 percent or more of the qualified carrier's business 
 21.14  customer base is subject to actual competition.  A qualified 
 21.15  carrier subject to actual competition as determined by the 
 21.16  commission under this subsection may lower its business rates to 
 21.17  any level as long as the qualified carrier's total revenue 
 21.18  derived from the exchange facility exceeds economic cost as 
 21.19  calculated for the wire center under section 237A.39. 
 21.20     (b) A qualified carrier may lower its telecommunications 
 21.21  service rates for its residential customers in a particular 
 21.22  local exchange service if 50 percent or more of the qualified 
 21.23  carrier's residential customer base is subject to actual 
 21.24  competition.  A qualified carrier subject to actual competition 
 21.25  as determined by the commission under this subsection may lower 
 21.26  its residential rates to any level as long as the qualified 
 21.27  carrier's total revenue derived from the exchange facility 
 21.28  exceeds economic cost as calculated for the wire center under 
 21.29  section. 
 21.30     (c) Retail service quality standards included in a 
 21.31  nonqualified carrier's AFOR plan shall not apply to 
 21.32  telecommunications services provided in actual competition zones.
 21.33     (d) Prices unique to a particular customer or group of 
 21.34  customers (individual case-based pricing) are allowed in actual 
 21.35  competition zones without justification by a qualified carrier. 
 21.36     (e) Restrictions on promotions applicable to nonqualified 
 22.1   carriers under subdivision 2 apply to qualified customers in 
 22.2   actual competition zones. 
 22.3      Subd. 4.  [EFFECTIVE COMPETITION ZONES.] If 50 percent of a 
 22.4   qualified carrier's business and residential customer bases in a 
 22.5   particular local service area are subject to actual competition, 
 22.6   and the commission finds that at least 25 percent of the 
 22.7   carrier's statewide revenue derived from local service are 
 22.8   wholesale service revenue, then the qualified carrier must be 
 22.9   deregulated with respect to local services provided within that 
 22.10  local service area.  Qualified carriers may not lower retail 
 22.11  rates as provided under subdivision 3 and 4 until wholesale 
 22.12  rates have been deaveraged pursuant to section 237A.39. 
 22.13     Sec. 7.  [237A.12] [QUALIFYING CARRIERS AND CLASSIFYING 
 22.14  SERVICES.] 
 22.15     Subdivision 1.  [PRESUMPTION OF NONQUALIFIED 
 22.16  CARRIER.] Unless the commission has affirmatively found 
 22.17  otherwise, all incumbent local service providers are classified 
 22.18  as nonqualified carriers. 
 22.19     Subd. 2.  [PROCEDURE FOR CARRIER QUALIFICATION OR SERVICE 
 22.20  CLASSIFICATION.] (1) The party petitioning for reclassification 
 22.21  of a carrier as either qualified or nonqualified, or for 
 22.22  establishing either an actual or effective competition zone, 
 22.23  bears the burden of presenting prima facie evidence to the 
 22.24  commission that the action should be taken.  For the purposes of 
 22.25  this section, this prima facie evidentiary burden is met if the 
 22.26  petitioning party presents both quantitative and qualitative 
 22.27  evidence that the local service provider or service in question 
 22.28  meets the criteria set forth in sections 237A.01, subdivision 
 22.29  23, and 237A.11, subdivision 3, for qualification or 
 22.30  reclassification. 
 22.31     (2) If the commission determines that this prima facie 
 22.32  burden has been met, the commission shall reclassify the carrier 
 22.33  or establish the competitive zone, unless other parties are able 
 22.34  to provide evidence to the commission that outweighs the 
 22.35  evidence supporting the reclassification or establishment of the 
 22.36  competitive zone. 
 23.1      Subd. 3.  [EXPEDITED PROCEEDING.] (a) Petitions for 
 23.2   establishment of competitive zones are deemed approved by the 
 23.3   commission unless either the department or the attorney general 
 23.4   registers an objection with the commission within 30 days of the 
 23.5   filing date of the competitive zone petition. 
 23.6      (b) If an objection is filed, the commission shall decide 
 23.7   whether the petition should be granted within 90 days after the 
 23.8   date the petition is filed. 
 23.9      Subd. 4.  [EXISTING AFOR PLANS.] (a) Any alternative form 
 23.10  of regulation (AFOR) plan approved before the effective date of 
 23.11  this chapter by the commission pursuant to former statutory 
 23.12  sections 237.76 to 237.775 may remain in effect until the 
 23.13  expiration date provided for in the plan.  A local provider 
 23.14  under an existing plan may petition the commission to become 
 23.15  subject to the local service regulatory framework set forth in 
 23.16  sections 237A.10 to 237A.12 prior to the plan's expiration. 
 23.17     (b) All local service providers that elected alternative 
 23.18  form of regulation before the effective date of this chapter 
 23.19  under former statutory section 237.773 may continue to operate 
 23.20  under that provision for one year from the effective date of 
 23.21  this chapter. 
 23.22     (c) If the commission has not determined by the end of the 
 23.23  grandfathering periods set forth in paragraphs (a) and (b) 
 23.24  whether a local service provider is operating under either type 
 23.25  of AFOR plan elected before the effective date of this chapter, 
 23.26  then the local service provider is deemed a nonqualified carrier.
 23.27     Sec. 8.  [237A.13] [EXTENDED AREA SERVICE.] 
 23.28     Subdivision 1.  [SCOPE.] This section governs the 
 23.29  establishment of toll-free calling areas. 
 23.30     Subd. 2.  [PETITION.] If 15 percent or 600 of the customers 
 23.31  of an incumbent local exchange provider, whichever is less, file 
 23.32  a petition with the commission for the creation of an extended 
 23.33  toll-free dialing area by adding an area that is adjacent to the 
 23.34  toll-free, basic flat-rate service territory of the incumbent 
 23.35  local service provider, then the commission shall investigate 
 23.36  the petition and issue an order as provided in this section. 
 24.1      Subd. 3.  [TRAFFIC STUDY.] On verifying that a petition has 
 24.2   the requisite number of valid signatures and that the petition 
 24.3   relates to an adjacent area, the commission shall perform a 
 24.4   traffic study to determine if at least 50 percent of the 
 24.5   customers in the petitioning exchange make three or more calls 
 24.6   per month to the exchange or local calling area to which 
 24.7   toll-free service is requested. 
 24.8      Subd. 4.  [COMMUNITY OF INTEREST.] (a) On determining that 
 24.9   the requisite level of traffic exists between the areas, as 
 24.10  required by subdivision 3, the commission shall then determine 
 24.11  whether there is a community of interest between the areas. 
 24.12     (b) In determining if there is a community of interest, the 
 24.13  commission shall consider, among other factors it deems relevant:
 24.14     (1) the level of calling between areas; 
 24.15     (2) the location of government, commercial, employment and 
 24.16  social centers for persons living within the petitioning area; 
 24.17     (3) the location of schools and school districts serving 
 24.18  the petitioning exchange; and 
 24.19     (4) the location of medical, emergency medical, law 
 24.20  enforcement, and fire protection services serving the 
 24.21  petitioning area. 
 24.22     Subd. 5.  [RATES.] On determining that a community of 
 24.23  interest exists, the commission shall calculate any necessary 
 24.24  extended area service rate additive.  Rates associated with the 
 24.25  establishment of an extended toll-free area must not provide for 
 24.26  the recovery of lost access charges, and need not guarantee 
 24.27  income or revenue neutrality between telecommunications service 
 24.28  providers.  An extended area service rate additive must be based 
 24.29  on actual costs to implement the service plus a reasonable 
 24.30  contribution toward common costs and profit. 
 24.31     Subd. 6.  [PUBLIC INTEREST.] (a) On determining that a 
 24.32  community of interest exists, the commission shall issue an 
 24.33  order granting the petition unless it finds that granting the 
 24.34  petition is not in the public interest. 
 24.35     (b) In determining if granting the order is in the public 
 24.36  interest, the commission shall consider: 
 25.1      (1) the amount of the rate additives calculated under 
 25.2   subdivision 5; 
 25.3      (2) fairness to consumers in the petitioned and petitioning 
 25.4   exchange; and 
 25.5      (3) any other factors the commission deems relevant. 
 25.6      Sec. 9.  [237A.14] [ESTABLISHMENT EXEMPT FROM REGULATION.] 
 25.7      Subdivision 1.  [DEFINITION.] For purposes of this section, 
 25.8   "establishment" means an individual hotel, motel, restaurant, 
 25.9   lodging house, boarding house, resort, or place of refreshment 
 25.10  licensed under chapter 157. 
 25.11     Subd. 2.  [EXEMPTION; CONDITIONS.] An establishment that 
 25.12  provides telecommunications service to patrons on the premises 
 25.13  of the establishment is not subject to regulation under this 
 25.14  chapter, except that the establishment: 
 25.15     (1) shall provide notice of charges and service providers 
 25.16  to patrons as required in section 325F.99; and 
 25.17     (2) is subject to the procedures of section 237A.20. 
 25.18     Sec. 10.  [237A.15] [PRIVATE SHARED TELECOMMUNICATIONS 
 25.19  SERVICE.] 
 25.20     Subdivision 1.  [DEFINITION.] For the purposes of this 
 25.21  section, "private shared telecommunications service" means 
 25.22  telecommunications services and equipment provided (1) within a 
 25.23  user group located in discrete private premises, (2) in building 
 25.24  complexes, campuses, or high-rise buildings, (3) by a commercial 
 25.25  shared services provider or by a user association, and (4) 
 25.26  through privately owned customer premises equipment and 
 25.27  associated data-processing and information-management services. 
 25.28  The term includes the service connections provided to the 
 25.29  facilities of a telecommunications service provider. 
 25.30     Subd. 2.  [REQUIREMENTS.] A person who owns or operates a 
 25.31  building, property, complex, or other facility where a private 
 25.32  shared telecommunications system is operated shall establish a 
 25.33  single demarcation point for services and facilities provided by 
 25.34  telecommunications service providers.  The obligation of a 
 25.35  carrier of last resort to provide service to a customer at a 
 25.36  location where a private shared telecommunication system is 
 26.1   operated is limited to providing telecommunications service and 
 26.2   facilities up to the demarcation point established for the 
 26.3   property where the private shared telecommunications system is 
 26.4   located. 
 26.5      Subd. 3.  [ACCESS TO ALTERNATIVE PROVIDER.] A tenant of a 
 26.6   building, property, complex, or other facility where a private 
 26.7   shared telecommunications system is operated may establish a 
 26.8   direct connection to and receive telecommunications services 
 26.9   from any provider.  At the request of a tenant where a private 
 26.10  shared telecommunications system is operated, the owner or 
 26.11  manager of the property shall make facilities or conduit space 
 26.12  available to the tenant to allow the tenant to make separate 
 26.13  connection to and to receive telecommunications service directly 
 26.14  from any telecommunications service provider.  The tenant has 
 26.15  the choice of installing the tenant's own facilities or using 
 26.16  the existing facilities.  The facilities or conduit space must 
 26.17  be provided by the owner or operator to the tenant at a 
 26.18  reasonable rate and on reasonable terms and conditions.  It is 
 26.19  the obligation of the tenant to arrange for premises wire, 
 26.20  cable, or other equipment necessary to connect the tenant's 
 26.21  telecommunications equipment with the facilities of the 
 26.22  telecommunications service provider operating local exchange 
 26.23  service at the location of the demarcation point. 
 26.24     Subd. 4.  [ENFORCEMENT.] If the commission finds that the 
 26.25  owner or operator of a private shared telecommunications system 
 26.26  has failed to comply with a request under this section, the 
 26.27  commission may order the owner or operator to make facilities or 
 26.28  conduit space available sufficient to allow the tenant to make 
 26.29  separate connection with the telecommunications service 
 26.30  provider, and provide the services at reasonable prices and on 
 26.31  reasonable terms and conditions. 
 26.32     Subd. 5.  [EXEMPTION.] A provider of private shared 
 26.33  telecommunications service is exempt from section 237A.03 if the 
 26.34  telecommunications service is only provided to tenants or for 
 26.35  the provider's own use. 
 26.36     Subd. 6.  [SERVICE BY PROVIDER OF LAST RESORT.] The carrier 
 27.1   of last resort providing local exchange service shall provide 
 27.2   service to anyone located within a shared services building at 
 27.3   the demarcation point within a reasonable time upon request. 
 27.4      Sec. 11.  [237A.16] [CROSS SUBSIDIZATION.] 
 27.5      A nonqualified or qualified company may not subsidize its 
 27.6   competitive telecommunications services from its noncompetitive 
 27.7   telecommunications services through allocations of costs, 
 27.8   cost-sharing agreements, or other means, direct or indirect. 
 27.9                              ARTICLE 3 
 27.10                        CONSUMER PROTECTION 
 27.11     Section 1.  [237A.17] [RETAIL RULES.] 
 27.12     (a) The commission shall adopt new retail service quality 
 27.13  rules applicable to nonqualified carriers to: 
 27.14     (1) provide for the continued provision of local emergency 
 27.15  telephone services under chapter 403; 
 27.16     (2) protect residential and commercial customers from 
 27.17  unauthorized changes in service providers in a competitively 
 27.18  neutral manner; 
 27.19     (3) require complete and accurate disclosure of 
 27.20  telecommunications services offered by telecommunications 
 27.21  service providers; 
 27.22     (4) govern requests for tracers made by persons who receive 
 27.23  harassing telephone calls; and 
 27.24     (5) provide specific standards for quality of retail 
 27.25  customer local service, including standards for measuring and 
 27.26  reporting service quality including, but not limited to, 
 27.27  standards concerning telephone operator service, the amount of 
 27.28  time within which retail customer calls to a live customer 
 27.29  service representative of a local service provider must be 
 27.30  answered, installation and time intervals for restoration or 
 27.31  repair of service, transmission of calls, provisioning of 
 27.32  service, trouble rates, exchange access line held orders, 
 27.33  customer satisfaction, dial tone access speed, and all-trunk 
 27.34  busy conditions.  
 27.35     (b) Rules adopted or maintained by the commission under 
 27.36  this subdivision do not apply to qualified companies in actual 
 28.1   or effective competition zones as defined in section 237A.11. 
 28.2      Sec. 2.  [237A.18] [DISCLOSURE OF LOCAL SERVICE OPTIONS.] 
 28.3      Subdivision 1.  [NOTICE TO LOCAL RESIDENTIAL 
 28.4   CUSTOMERS.] Within ten days after a customer requests service or 
 28.5   requests a change of service, the telecommunications service 
 28.6   provider from whom the customer has requested service shall 
 28.7   provide the customer, in a form and manner easy for the customer 
 28.8   to understand, the terms and conditions of all service options 
 28.9   available to that customer.  The department shall develop a form 
 28.10  that every telecommunications service provider shall use in 
 28.11  providing this information to customers. 
 28.12     Subd. 2.  [NEW PROVIDER; CUSTOMER NOTICE, PRIOR 
 28.13  AUTHORIZATION.] Each residential and commercial long-distance 
 28.14  customer may elect to require that the local services provider 
 28.15  serving the customer receive authorization from the customer 
 28.16  before a request to serve that customer from a different local 
 28.17  long-distance service provider than the provider currently 
 28.18  serving the customer is processed. 
 28.19     Subd. 3.  [TIMING OF NOTICE; NEW CUSTOMER.] For new 
 28.20  installations, the customer's local service provider shall 
 28.21  notify the customer of the right described in subdivision 2 when 
 28.22  the customer initially requests local long-distance service.  A 
 28.23  customer notification of the rights set forth in this section 
 28.24  must be provided utilizing uniform, competitively neutral 
 28.25  language.  The form, content, and style of the authorization 
 28.26  must be consistent with federal law and regulation and use 
 28.27  language provided and approved by the commission. 
 28.28     Subd. 4.  [CHANGE OF ELECTION.] A customer may change the 
 28.29  election under subdivision 2 at any time by notifying the local 
 28.30  services provider of that decision.  No separate charge may be 
 28.31  imposed on the customer for electing to exercise the right 
 28.32  described in subdivision 2 or to change that election. 
 28.33     Subd. 5.  [FILING; EXEMPTIONS.] Copies of both the written 
 28.34  notices and information provided to customer service 
 28.35  representatives concerning the disclosure required under 
 28.36  subdivision 1 must be filed annually with the commission and the 
 29.1   department. 
 29.2      Subd. 6.  [CALL BLOCKING.] A local services provider, when 
 29.3   a residential customer initially requests service, shall advise 
 29.4   each residential customer of the availability of all blocking 
 29.5   options including 900 number blocking and international 
 29.6   long-distance blocking. 
 29.7      Subd. 7.  [ENFORCEMENT.] If, after an expedited procedure 
 29.8   conducted under section 237A.36, the commission finds that a 
 29.9   telecommunications service provider is failing to provide 
 29.10  disclosure as required under subdivision 1, or that a local 
 29.11  service provider is failing to provide the notification required 
 29.12  under subdivision 3, it shall order such provider to take 
 29.13  corrective action as necessary. 
 29.14     Sec. 3.  [237A.19] [ANTISLAMMING.] 
 29.15     Subdivision 1.  [ANTISLAMMING DUTIES OF LOCAL SERVICE 
 29.16  PROVIDER.] If a customer has elected to exercise the right 
 29.17  described in section 237A.18, subdivision 2, the local service 
 29.18  provider serving the customer shall not process a request to 
 29.19  serve the customer by another local long-distance service 
 29.20  provider without prior authorization from the customer.  If a 
 29.21  customer has not elected to exercise the right described in that 
 29.22  subdivision, the local service provider may process a request to 
 29.23  serve the customer by another local long-distance service 
 29.24  provider. 
 29.25     Subd. 2.  [ANTISLAMMING DUTIES OF SOLICITING CARRIER.] (a) 
 29.26  Subject to subdivision 1, a telecommunications service provider 
 29.27  may request that the local service provider serving a customer 
 29.28  process a change in that customer's local long-distance or local 
 29.29  service provider, if the customer has authorized the change 
 29.30  either orally or in writing signed by the customer.  Prior to 
 29.31  requesting a change in a customer's local long-distance or local 
 29.32  service provider, the local long-distance or local service 
 29.33  provider must confirm: 
 29.34     (1) the customer's identity with information unique to the 
 29.35  customer, unless the customer refused to provide identifying 
 29.36  information, then that fact should be noted; 
 30.1      (2) that the customer has been informed of the offering 
 30.2   made by the local long-distance or local service provider; 
 30.3      (3) that the customer understands that the customer is 
 30.4   being requested to change local long-distance, local service 
 30.5   providers, or both; 
 30.6      (4) that the customer has the authority to authorize the 
 30.7   change; and 
 30.8      (5) that the customer agrees to the change. 
 30.9      (b) After requesting a change of a customer's local 
 30.10  long-distance or local service provider, the local long-distance 
 30.11  service provider must: 
 30.12     (1) notify the customer in writing that the request has 
 30.13  been processed; and 
 30.14     (2) be able to produce, upon complaint by the customer, 
 30.15  evidence that the local long-distance or local service provider 
 30.16  verified the authorization by the customer to change the 
 30.17  customer's local long-distance or local service provider.  If 
 30.18  the company used a negative checkoff verification procedure as 
 30.19  defined in subdivision 4, paragraph (c), the evidence must 
 30.20  include a tape recording of the initial oral authorization. 
 30.21     Subd. 3.  [PENALTY FOR SLAMMING.] If the local 
 30.22  long-distance or local service provider is not able to present, 
 30.23  upon complaint by the customer, evidence that complies with 
 30.24  subdivision 2, paragraph (b), clause (2), the change in service 
 30.25  is deemed to be unauthorized from the date the local 
 30.26  long-distance or local service provider requested the change; 
 30.27  then, the local long-distance or local service provider shall: 
 30.28     (1) bear all costs of immediately returning the customer to 
 30.29  the service of the customer's previous local long-distance or 
 30.30  local service provider; and 
 30.31     (2) bear all costs of serving that customer during the 
 30.32  period of unauthorized service. 
 30.33     Subd. 4.  [CUSTOMER AUTHORIZATION VERIFICATION.] (a) 
 30.34  Customer authorization for a change in the customer's local 
 30.35  long-distance or local service provider may be verified using a 
 30.36  verification procedure that complies with federal law or 
 31.1   regulation.  Except as provided in paragraph (b), the 
 31.2   requirement that the local long-distance or local service 
 31.3   provider be able to produce evidence of customer authorization 
 31.4   is satisfied if the local long-distance or local service 
 31.5   provider uses a federally authorized verification procedure. 
 31.6      (b) If federal law or regulation authorizes a local 
 31.7   long-distance or local service provider to use a negative 
 31.8   checkoff verification procedure, and the local long-distance or 
 31.9   local service provider does so, the local long-distance or local 
 31.10  service provider must be able to produce a tape recording of the 
 31.11  initial oral authorization by the customer to change local 
 31.12  long-distance or local service providers as evidence of the 
 31.13  authorization.  The initial oral authorization must include 
 31.14  confirmation of the items listed in subdivision 2, paragraph (a).
 31.15     (c) "Negative checkoff" means a verification procedure that 
 31.16  consists of: 
 31.17     (1) an initial oral authorization by the customer to change 
 31.18  the local long-distance or local service provider; and 
 31.19     (2) a mailing to the customer by the soliciting local 
 31.20  long-distance or local service provider regarding the change in 
 31.21  service providers that informs the customer that if the customer 
 31.22  fails to cancel the change in service providers, the change is 
 31.23  deemed authorized and verified. 
 31.24     Sec. 4.  [237A.20] [NOTICE AND DISCLOSURE BY LONG-DISTANCE 
 31.25  PROVIDERS.] 
 31.26     Subdivision 1.  [INFORMATION REQUIRED.] When contacted by a 
 31.27  customer regarding the purchase of local long-distance 
 31.28  telecommunications services, or when soliciting customers via 
 31.29  mail or telephone, a local long-distance service provider shall 
 31.30  provide the customer with the following information, if the 
 31.31  service is being offered to the customer, about the service 
 31.32  offering either orally or in writing: 
 31.33     (1) the price or range of prices of interstate message toll 
 31.34  service accessed by dialing "1+" or "10-xxx," including any 
 31.35  difference in prices for evening, night, or weekend calls; 
 31.36     (2) the price or range of prices of intrastate inter-LATA 
 32.1   message toll service accessed by dialing "1+" or "10-xxx," 
 32.2   including any difference in prices for evening, night, or 
 32.3   weekend calls; 
 32.4      (3) the price or range of prices of intrastate intra-LATA 
 32.5   message toll service accessed by dialing "1+" or "10-xxx," 
 32.6   including any difference in prices for evening, night, or 
 32.7   weekend calls; 
 32.8      (4) any minimum volume requirements, fixed flat fees, 
 32.9   service charges, surcharges, termination charges, or other 
 32.10  non-service-specific charges, including the fact that the local 
 32.11  long-distance service provider may charge a one-time fee for 
 32.12  changing local long-distance service providers; and 
 32.13     (5) any special promotional rate or promotional offering 
 32.14  related to the services or prices described in clauses (1) to 
 32.15  (4), including any limitations or restrictions on the 
 32.16  promotional rates or offerings. 
 32.17     Subd. 2.  [PRICES, TERMS, AND RESTRICTIONS IN WRITING.] (a) 
 32.18  If a customer agrees to purchase local long-distance 
 32.19  telecommunications services on a presubscription basis, the 
 32.20  provider shall send the customer written information regarding 
 32.21  services subscribed to, containing: 
 32.22     (1) the information regarding prices and charges described 
 32.23  in subdivision 1, clauses (1) to (5); 
 32.24     (2) the price for calls placed with a calling card issued 
 32.25  to the customer by the provider and any surcharge for placing 
 32.26  calls with a calling card; 
 32.27     (3) the price for calls charged to the customer when a 
 32.28  personal "1-800" number for local long-distance services issued 
 32.29  to the customer by the provider is used; and 
 32.30     (4) the price of directory assistance calls. 
 32.31     (b) This written information must be sent to the customer 
 32.32  within seven business days from the date of the verification of 
 32.33  the customer's authorization, unless federal law or regulation 
 32.34  requires notice to be sent by an earlier date. 
 32.35     Subd. 3.  [FILED TARIFF NO DEFENSE.] That a local 
 32.36  long-distance service provider has intrastate tariffs or price 
 33.1   lists for the services listed in subdivisions 1 and 2 on file 
 33.2   with the commission or department is not a defense to any action 
 33.3   brought for failure to disclose intrastate prices for which 
 33.4   disclosure is required under this section. 
 33.5      Sec. 5.  [237A.21] [LOADING.] 
 33.6      (a) Except as provided in paragraph (b) or (c), a 
 33.7   telecommunications service provider shall not charge a telephone 
 33.8   service subscriber, as defined in section 325F.692, for a 
 33.9   telecommunications service that is not required by the 
 33.10  commission to be offered and for which the subscriber did not 
 33.11  explicitly contract. 
 33.12     (b) If a charge is assessed on a per-use basis for a 
 33.13  service described in paragraph (a), the charge must be applied 
 33.14  as a credit to the subscriber's next monthly bill, if the 
 33.15  subscriber notifies the telecommunications service provider that 
 33.16  the subscriber did not utilize the service or did not authorize 
 33.17  the utilization of the service. 
 33.18     (c) A telecommunications service provider that receives a 
 33.19  notification from a telephone service subscriber under paragraph 
 33.20  (b) shall inform the subscriber of the ability to block the 
 33.21  services from future use by the subscriber, and shall block the 
 33.22  services from future use by the subscriber, if the subscriber so 
 33.23  requests.  If a subscriber requests that the telecommunications 
 33.24  service provider not block the service or later requests to have 
 33.25  the block lifted, the subscriber is responsible for charges 
 33.26  caused by the future utilization of that service.  The 
 33.27  telecommunications service provider shall not charge a recurring 
 33.28  fee for blocking the service. 
 33.29     Sec. 6.  [237A.22] [TELECOMMUNICATIONS CONSUMER OUTREACH 
 33.30  AND EDUCATION PROGRAM.] 
 33.31     Subdivision 1.  [ESTABLISHMENT.] (a) The department shall 
 33.32  establish a telecommunications consumer outreach and education 
 33.33  program to ensure that citizens have access to objective 
 33.34  information to make intelligent decisions in a competitive 
 33.35  marketplace.  The program must provide broad-based customer 
 33.36  education about telecommunications issues, including changes 
 34.1   resulting from the transition to a competitive market. 
 34.2      (b) The telecommunications consumer outreach and education 
 34.3   program may include the following types of initiatives: 
 34.4      (1) a multimedia program to assemble, catalog, and 
 34.5   disseminate technical information and assistance on 
 34.6   telecommunications issues such as billing, slamming, service 
 34.7   availability, and differentiation of competitors; 
 34.8      (2) outreach programs including seminars, workshops, 
 34.9   training programs, and other similar activities designed to 
 34.10  provide information and assistance to consumers and other 
 34.11  interested persons; 
 34.12     (3) consultations to help address consumer concerns and 
 34.13  complaints regarding telecommunications issues; and 
 34.14     (4) on-line information services. 
 34.15     Subd. 2.  [ADMINISTRATION.] (a) The telecommunications 
 34.16  consumer outreach and education program may be coordinated with 
 34.17  other public and private programs that provide information and 
 34.18  technical assistance to consumers. 
 34.19     (b) The department may make grants to or enter into 
 34.20  contracts with public or private entities to operate elements of 
 34.21  the program. 
 34.22     Subd. 3.  [APPROPRIATION.] Up to $1,000,000 per fiscal year 
 34.23  is appropriated to the department for use in implementing the 
 34.24  telecommunications consumer outreach and education program.  Any 
 34.25  penalties paid by local service providers under section 237A.33 
 34.26  or under the terms of an alternative form of regulation plan 
 34.27  must be dedicated to offset the general fund cost of the 
 34.28  consumer outreach campaign up to a limit of $1,000,000 per 
 34.29  year.  Expenditures used for the consumer outreach program, not 
 34.30  offset by penalty dollars, must be recovered as an indirect 
 34.31  assessment by the department pursuant to section 237A.35. 
 34.32     Sec. 7.  [237A.23] [MEDIATION; EXPEDITED PROCEEDING.] 
 34.33     Subdivision 1.  [RETAIL CUSTOMER DISPUTE RESOLUTION.] (a) A 
 34.34  retail customer of a telecommunications service provider that 
 34.35  has a dispute with the provider regarding the provider's service 
 34.36  may file a written or an oral request for assistance in 
 35.1   resolving the dispute with the department if the customer has 
 35.2   attempted to resolve the dispute with the provider but the 
 35.3   dispute has not been resolved to the customer's satisfaction.  
 35.4   In the request, the customer shall set forth the name of the 
 35.5   telecommunications service provider serving the customer, the 
 35.6   nature of the dispute, and actions taken to attempt to resolve 
 35.7   the dispute with the provider prior to filing the complaint, 
 35.8   including any unsuccessful attempt to contact the provider. 
 35.9      (b) If the department finds that a request meets the 
 35.10  requirements of paragraph (a), the provider shall participate in 
 35.11  mediation with the customer.  The department shall conduct the 
 35.12  mediation and complete it within 30 days after the filing of the 
 35.13  request. 
 35.14     (c) If the department finds that the request fails to meet 
 35.15  the requirements of paragraph (a), it shall inform the customer 
 35.16  and set forth each requirement that the request has failed to 
 35.17  meet.  A customer may resubmit a request under this section. 
 35.18     Subd. 2.  [NOTICE TO ATTORNEY GENERAL OF FAILED MEDIATION.] 
 35.19  If mediation under this section is not successful in resolving a 
 35.20  dispute, the department shall provide the residential utilities 
 35.21  division of the office of the attorney general with a copy of 
 35.22  the request for dispute resolution assistance, a brief summary 
 35.23  of the dispute, and notice that mediation was not successful in 
 35.24  resolving the dispute. 
 35.25     Subd. 3.  [EXPEDITED PROCEEDING.] The department or the 
 35.26  residential utilities division of the office of the attorney 
 35.27  general may file a complaint with the commission based upon 
 35.28  allegations that were the subject of an unsuccessful mediation 
 35.29  by the consumer affairs office.  The commission shall conduct an 
 35.30  expedited proceeding pursuant to section 237A.36 to resolve any 
 35.31  contested issue of material fact and shall make a final decision 
 35.32  on the complaint within 60 days after filing. 
 35.33     Sec. 8.  [237A.24] [ALARM TRANSMISSION TELEPHONE DEVICE; 
 35.34  RULES.] 
 35.35     Subdivision 1.  [PERMISSION REQUIRED.] A person desiring to 
 35.36  install or use an automatic, electrical, or mechanical device or 
 36.1   attachment to a telephone that reproduces a taped or prerecorded 
 36.2   message to report a police, fire, or other emergency to an 
 36.3   official emergency-reporting telephone number shall obtain 
 36.4   permission, in writing, from the sheriff of the county in which 
 36.5   located or the police chief or fire chief of the municipality 
 36.6   into whose emergency telephone number the attachment or device 
 36.7   is connected. 
 36.8      Subd. 2.  [CONDITIONS FOR CONNECTION.] The sheriff, police 
 36.9   chief, or fire chief may determine the conditions, if any, under 
 36.10  which the device or attachment may be connected, provided (1) 
 36.11  the conditions are reasonable in accordance with local 
 36.12  conditions and (2) the device or attachment complies with 
 36.13  commission rules. 
 36.14     Subd. 3.  [REMOVAL.] When the sheriff, police chief, or 
 36.15  fire chief has knowledge of the use of an attachment or device 
 36.16  not operated or maintained in accordance with this section, that 
 36.17  official may order its removal. 
 36.18     Subd. 4.  [PENALTY.] Violation of this section is a 
 36.19  misdemeanor. 
 36.20     Sec. 9.  [237A.25] [TRACER; HARASSING TELEPHONE CALL; 
 36.21  RULES.] 
 36.22     The commission shall adopt new or maintain existing rules, 
 36.23  as necessary, to govern how telephone companies respond to 
 36.24  requests for tracers made by persons who allege receiving 
 36.25  harassing telephone calls.  The rules must address when a 
 36.26  request for a tracer may be denied or delayed. 
 36.27                             ARTICLE 4 
 36.28                 COMMISSION PROCESS AND PROCEDURES 
 36.29     Section 1.  [237A.26] [FILED TARIFFS AND PRICE LISTS.] 
 36.30     The filing of a tariff or price list approved by the 
 36.31  commission does not remove the terms of the tariff or price list 
 36.32  from the requirements of this chapter, or rules or orders of the 
 36.33  commission.  
 36.34     Sec. 2.  [237A.27] [INVESTIGATION.] 
 36.35     Subdivision 1.  [COMMISSION INVESTIGATION.] The commission, 
 36.36  with or without notice, may investigate telecommunications 
 37.1   service providers for statute or rule violations, claims that 
 37.2   service cannot be obtained, or a matter relating to a 
 37.3   telecommunications service. 
 37.4      Subd. 2.  [PROCEDURE AFTER INVESTIGATION.] If, after making 
 37.5   an investigation, the commission finds that a significant 
 37.6   factual issue raised has not been resolved to its satisfaction, 
 37.7   the commission shall order that a contested case hearing be 
 37.8   conducted under chapter 14 unless the complainant, the 
 37.9   telecommunications provider, and the commission agree that an 
 37.10  expedited hearing under section 237A.36 is appropriate. 
 37.11     Subd. 3.  [ORDER RESPECTING SERVICE.] After a proceeding 
 37.12  under subdivision 2, the commission shall make an order 
 37.13  respecting telecommunications service that is just and 
 37.14  reasonable. 
 37.15     Subd. 4.  [SERVICE; NOTICE.] A copy of an order issued 
 37.16  under this section must be served upon the person against whom 
 37.17  it runs or the person's attorney, and notice of the order must 
 37.18  be given to the other parties to the proceedings or their 
 37.19  attorneys. 
 37.20     Sec. 3.  [237A.28] [TRANSCRIBED COPY OF RECORD, EXPENSE.] 
 37.21     The commission shall keep a full and complete record of any 
 37.22  formal investigation or hearing.  Testimony received or offered 
 37.23  must be recorded by a stenographer appointed by the commission. 
 37.24  A transcribed copy of the record must be furnished to a party 
 37.25  upon payment of the expense of furnishing the transcribed copy. 
 37.26     When an appeal is taken from a commission order under this 
 37.27  chapter, the commission shall promptly have a certified 
 37.28  transcript made of all proceedings, all pleadings and files, and 
 37.29  all testimony taken or offered before it upon which the order 
 37.30  was based, showing particularly what evidence offered was 
 37.31  excluded, if any.  The transcript must be filed with the court 
 37.32  administrator of the district court where the appeal is pending. 
 37.33     Sec. 4.  [237A.29] [APPEAL FROM DECISION OF COMMISSION.] 
 37.34     Any party to a proceeding before the commission or the 
 37.35  attorney general may appeal from the order in accordance with 
 37.36  chapter 14. 
 38.1      Sec. 5.  [237A.30] [ORDER FINAL AND CONCLUSIVE.] 
 38.2      If an appeal is not taken from an order of the commission, 
 38.3   then in all subsequent litigation arising between the state and 
 38.4   a telecommunications service provider or between a private party 
 38.5   and a telecommunications service provider, the order is final 
 38.6   and conclusive. 
 38.7      Sec. 6.  [237A.31] [COMPELLING OBEDIENCE.] 
 38.8      When a telecommunications service provider fails to comply 
 38.9   with a law of the state or an order of the commission after it 
 38.10  has become final, or an order or judgment of the district court, 
 38.11  the court of appeals, or the supreme court in any case taken to 
 38.12  any of the courts on appeal after the judgment or order has 
 38.13  become final, the commission shall apply to the district court 
 38.14  in the name of the state in a county in which the 
 38.15  telecommunications provider is situated, for a mandatory 
 38.16  injunction or other appropriate writ to compel obedience to the 
 38.17  law, order, or judgment.  The district court shall punish 
 38.18  disobedience of its orders in the enforcement proceedings as for 
 38.19  contempt of court. 
 38.20     Sec. 7.  [237A.32] [INFORMATION SUBJECT TO PROTECTIVE 
 38.21  ORDER.] 
 38.22     In commission meetings during which information that is 
 38.23  subject to a protective order is discussed, the commission shall 
 38.24  employ the procedures of section 14.60 to close to all persons 
 38.25  who are not authorized under law or the protective order to 
 38.26  obtain the information that portion of the meeting during which 
 38.27  the information will be discussed.  The commission shall take 
 38.28  other appropriate measures to ensure that the data is not 
 38.29  disclosed to persons who are not authorized to obtain the 
 38.30  information under law or under the protective order. 
 38.31     Sec. 8.  [237A.33] [ENFORCEMENT.] 
 38.32     Subdivision 1.  [ACTIONS.] This chapter and rules and 
 38.33  orders of the commission adopted under this chapter may be 
 38.34  enforced by any one or combination of criminal prosecution, 
 38.35  action to recover civil penalties, injunction, action to compel 
 38.36  performance, and other appropriate action. 
 39.1      Subd. 2.  [CIVIL PENALTY.] A person who knowingly and 
 39.2   intentionally violates a provision of this chapter or a rule or 
 39.3   order of the commission adopted under this chapter shall forfeit 
 39.4   and pay to the state a penalty, in an amount to be determined by 
 39.5   the court, of at least $100 and not more than $5,000 for each 
 39.6   day of each violation. 
 39.7      Subd. 3.  [CIVIL PENALTY FOR LOCAL COMPETITION VIOLATION.] 
 39.8   Notwithstanding subdivision 2, a person who knowingly and 
 39.9   intentionally commits a violation of section 237A.06 shall 
 39.10  forfeit and pay to the state a penalty, in an amount to be 
 39.11  determined by the court, of at least $100 and not more than 
 39.12  $100,000 for each day of each violation.  In determining the 
 39.13  amount of the penalty under this subdivision, the court shall 
 39.14  consider the factors in section 237A.34, subdivision 2. 
 39.15     Subd. 4.  [CIVIL PENALTY PROCEEDS DEPOSITED IN 
 39.16  TREASURY.] The civil penalties provided for in this section and 
 39.17  in section 237A.34 may be recovered by a civil action brought by 
 39.18  the attorney general in the name of the state.  Amounts 
 39.19  recovered under this section must be paid into the state 
 39.20  treasury. 
 39.21     Sec. 9.  [237A.34] [COMPETITIVE ENFORCEMENT; ADMINISTRATIVE 
 39.22  PENALTY ORDERS.] 
 39.23     Subdivision 1.  [AUTHORITY TO ISSUE PENALTY ORDERS.] (a) 
 39.24  The commission may issue an order administratively assessing 
 39.25  monetary penalties for knowing and intentional violations of: 
 39.26     (1) section 237A.06 and any rules adopted under those 
 39.27  sections; 
 39.28     (2) any standards, limitations, or conditions established 
 39.29  in a commission order pursuant to section 237A.06; 
 39.30     (3) an approved interconnection agreement if the violation 
 39.31  is material; and 
 39.32     (4) any duty or obligation of an incumbent local service 
 39.33  provider imposed by the Telecommunications Act of 1996, section 
 39.34  251, paragraph (a), (b), or (c), that relates to local service 
 39.35  provided in the state. 
 39.36     (b) The penalty order must be issued as provided in this 
 40.1   section. 
 40.2      Subd. 2.  [AMOUNT OF PENALTY; CONSIDERATIONS.] The 
 40.3   commission may issue an order assessing a penalty of between 
 40.4   $100 and $10,000 per day for each violation. 
 40.5      In determining the amount of a penalty, the commission 
 40.6   shall consider: 
 40.7      (1) the willfulness or intent of the violation; 
 40.8      (2) the gravity of the violation, including the harm to 
 40.9   customers or competitors; 
 40.10     (3) the history of past violations, including the gravity 
 40.11  of past violations, similarity of previous violations to the 
 40.12  current violation to be penalized, number of previous 
 40.13  violations, the response of the person to the most recent 
 40.14  previous violation identified, and the time lapsed since the 
 40.15  last violation; 
 40.16     (4) the number of violations; 
 40.17     (5) the economic benefit gained by the person committing 
 40.18  the violation; 
 40.19     (6) any corrective action taken or planned by the person 
 40.20  committing the violation; 
 40.21     (7) the annual revenue and assets of the company committing 
 40.22  the violation, including the assets and revenue of any 
 40.23  affiliates that have 50 percent or more common ownership or that 
 40.24  own more than 50 percent of the company; 
 40.25     (8) the financial ability of the company, including any 
 40.26  affiliates that have 50 percent or more common ownership or that 
 40.27  own more than 50 percent of the company, to pay the penalty; and 
 40.28     (9) other factors that justice may require, as determined 
 40.29  by the commission.  The commission shall specifically identify 
 40.30  any additional factors in the commission's order. 
 40.31     Subd. 3.  [BURDEN OF PROOF.] The commission may not assess 
 40.32  a penalty under this section unless the record in the proceeding 
 40.33  establishes by a preponderance of the evidence that the penalty 
 40.34  is justified based on the factors identified in subdivision 2. 
 40.35     Subd. 4.  [CONTENTS OF ORDER.] An order assessing an 
 40.36  administrative penalty under this section must include: 
 41.1      (1) a concise statement of the facts alleged to constitute 
 41.2   a violation; 
 41.3      (2) a reference to the section of the statute, rule, or 
 41.4   order that has been violated; 
 41.5      (3) a statement of the amount of the administrative penalty 
 41.6   to be imposed and the factors upon which the penalty is based; 
 41.7   and 
 41.8      (4) a statement of the person's right to review the order. 
 41.9      Subd. 5.  [PENALTY STAYED.] A penalty imposed under this 
 41.10  section is not payable earlier than 31 days after the commission 
 41.11  issues its final order assessing the penalty.  The person 
 41.12  subject to the penalty may appeal the commission's penalty order 
 41.13  under sections 14.63 to 14.68.  If the person does appeal the 
 41.14  commission's penalty order, the penalty is payable only after 
 41.15  either all appeals have been exhausted or the person withdraws 
 41.16  the appeal. 
 41.17     Subd. 6.  [EXPEDITED PROCEEDING.] (a) The commission may 
 41.18  order an expedited proceeding under this subdivision and section 
 41.19  237A.36, in lieu of a contested case under chapter 14, to 
 41.20  develop an evidentiary record in any proceeding that involves 
 41.21  contested issues of material fact either upon request of a party 
 41.22  or upon the commission's own motion if the complaint alleges a 
 41.23  violation described in subdivision 1, clauses (1) to (4).  The 
 41.24  commission may order an expedited proceeding under this 
 41.25  subdivision if the commission finds an expedited proceeding is 
 41.26  in the public interest, regardless of whether all parties agree 
 41.27  to the expedited proceeding.  In determining whether to grant an 
 41.28  expedited proceeding, the commission may consider any evidence 
 41.29  of impairment of the provision of telecommunications service to 
 41.30  subscribers in the state or impairment of the provision of any 
 41.31  service or network element subject to the jurisdiction of the 
 41.32  commission. 
 41.33     (b) Any request for an expedited proceeding under this 
 41.34  subdivision must be noted in the title of the first filing by a 
 41.35  party.  The filing must also state the specific circumstances 
 41.36  that the party believes warrant an expedited proceeding under 
 42.1   this subdivision. 
 42.2      (c) A complaint requesting an expedited proceeding, unless 
 42.3   filed by the department or the attorney general, must set forth 
 42.4   the actions and the dates of the actions taken by the party 
 42.5   filing the complaint to attempt to resolve the alleged 
 42.6   violations with the party against whom the complaint is filed, 
 42.7   including any requests that the party against whom the complaint 
 42.8   is filed correct the conduct giving rise to the violations 
 42.9   alleged in the complaint.  If no such actions were taken by the 
 42.10  complainant, the complaint must set forth the reasons why no 
 42.11  such actions were taken.  The commission may order an expedited 
 42.12  proceeding even if the filing complaint fails to meet this 
 42.13  requirement if the commission determines that it would be in the 
 42.14  public interest to go forward with the expedited proceeding 
 42.15  without information in the complaint on attempts to resolve the 
 42.16  dispute. 
 42.17     (d) The complaining party shall serve the complaint along 
 42.18  with any written discovery requests by hand delivery and 
 42.19  facsimile on the party against whom the complaint is filed, the 
 42.20  department, and the attorney general on the same day the 
 42.21  complaint is filed with the commission. 
 42.22     (e) The party responding to a complaint that includes a 
 42.23  request for an expedited proceeding under this subdivision shall 
 42.24  file an answer within 15 days after receiving the complaint.  
 42.25  The responding party shall state in the answer the party's 
 42.26  position on the request for an expedited proceeding.  The 
 42.27  responding party shall serve with the answer any objections to 
 42.28  any written discovery requests as well as any written discovery 
 42.29  requests the responding party wishes to serve on the complaining 
 42.30  party.  Except for stating any objections, the responding party 
 42.31  is not required to answer any written discovery requests under 
 42.32  this subdivision until a time established at a prehearing 
 42.33  conference.  The responding party shall serve a copy of the 
 42.34  answer and any discovery requests and objections on the 
 42.35  complaining party, the department, and attorney general by hand 
 42.36  delivery and facsimile on the same day as the answer is filed 
 43.1   with the commission. 
 43.2      (f) Within 15 days of receiving the answer to a complaint 
 43.3   in a proceeding in which a party has requested an expedited 
 43.4   hearing, the commission shall determine whether the filing 
 43.5   warrants an expedited proceeding.  If the commission decides to 
 43.6   grant a request by a party or if the commission orders an 
 43.7   expedited proceeding on its own motion, the commission shall 
 43.8   conduct within seven days of the decision a prehearing 
 43.9   conference to schedule the evidentiary hearing.  During the 
 43.10  prehearing conference, the commission shall establish a 
 43.11  discovery schedule that requires all discovery to be completed 
 43.12  no later than three days before the start of the hearing.  An 
 43.13  evidentiary hearing under this subdivision must commence no 
 43.14  later than 45 days after the commission's decision to order an 
 43.15  expedited proceeding.  A quorum of the commission shall preside 
 43.16  at any evidentiary hearing under this subdivision unless all the 
 43.17  parties to the proceeding agree otherwise. 
 43.18     (g) All pleadings submitted under this subdivision must be 
 43.19  verified and all oral statements of fact made in a hearing or 
 43.20  deposition under this subdivision must be made under oath or 
 43.21  affirmation. 
 43.22     (h) The commission shall issue a written decision and final 
 43.23  order on the complaint within 15 days after the close of the 
 43.24  evidentiary hearing under this subdivision.  On the day of 
 43.25  issuance, the commission shall notify the parties by facsimile 
 43.26  that a final order has been issued and shall provide each party 
 43.27  with a copy of the final order. 
 43.28     (i) The commission may extend any time periods under this 
 43.29  subdivision if all parties to the proceeding agree to the 
 43.30  extension or if the commission finds the extension is necessary 
 43.31  to ensure a just resolution of the complaint. 
 43.32     (j) Except as otherwise provided in this subdivision, an 
 43.33  expedited proceeding under this subdivision shall be governed by 
 43.34  the following procedural rules: 
 43.35     (1) the parties have the discovery rights provided in 
 43.36  Minnesota Rules, parts 1400.6700 to 1400.7000; 
 44.1      (2) the parties have the right to cross-examine witnesses 
 44.2   as provided in section 14.60, subdivision 3; 
 44.3      (3) the admissibility of evidence and development of record 
 44.4   for decision is governed by section 14.60 and Minnesota Rules, 
 44.5   part 1400.7300; and 
 44.6      (4) the commission may apply other procedures or standards 
 44.7   included in the rules of the office of administrative hearings, 
 44.8   as necessary to ensure the fair and expeditious resolution of 
 44.9   disputes under this section. 
 44.10     Subd. 7.  [TEMPORARY RELIEF PENDING DISPUTE RESOLUTION.] (a)
 44.11  A person filing a complaint may include in the complaint a 
 44.12  request that the commission issue an order granting temporary 
 44.13  relief under paragraph (c) if the complaint alleges a violation 
 44.14  described in subdivision 1, clauses (1) to (4).  Any request for 
 44.15  temporary relief under this subdivision must be noted in the 
 44.16  title of the complaint.  The complaining party shall provide a 
 44.17  copy of the complaint requesting temporary relief by hand 
 44.18  delivery and facsimile to the party alleged to be in violation 
 44.19  on the same day a complaint requesting such relief is filed with 
 44.20  the commission.  The commission shall issue a decision upon such 
 44.21  a request within 20 days of the filing of the complaint. 
 44.22     (b) The commission may also order temporary relief on its 
 44.23  own motion for an alleged violation of one or more of the 
 44.24  provisions of subdivision 1, clauses (1) to (4), in accordance 
 44.25  with this subdivision. 
 44.26     (c) After notice and an opportunity for comment, the 
 44.27  commission may grant an order for temporary relief under this 
 44.28  subdivision upon a verified factual showing that: 
 44.29     (1) the party seeking relief will likely succeed on the 
 44.30  merits; 
 44.31     (2) the order is necessary to protect the public's interest 
 44.32  in fair and reasonable competition; and 
 44.33     (3) the relief sought is technically feasible. 
 44.34     An order for temporary relief must include a finding that 
 44.35  the requirements of this subdivision have been fulfilled. 
 44.36     (d) In an order granting temporary relief, the commission 
 45.1   shall require the responding party to act or refrain from acting 
 45.2   as the commission deems necessary to avoid, prevent, or mitigate 
 45.3   the complained-of harm to subscribers or local exchange 
 45.4   telephone service providers resulting from the alleged violation 
 45.5   of one or more of the provisions in subdivision 1, clauses (1) 
 45.6   to (4).  The commission must give the responding party a 
 45.7   reasonable period of time to comply with the order. 
 45.8      (e) A party may seek review, reconsideration, or rehearing 
 45.9   of a temporary relief order prior to a final decision on the 
 45.10  complaint by the commission. 
 45.11     (f) If there is a material issue of fact and the commission 
 45.12  issues an order based on written pleadings without an 
 45.13  evidentiary hearing, the order may not remain in effect for more 
 45.14  than 30 days prior to which time the commission shall hold an 
 45.15  evidentiary hearing to determine whether the order for temporary 
 45.16  relief should be continued, modified, or reversed.  Otherwise, 
 45.17  an order for temporary relief shall remain in effect until a 
 45.18  final order is issued by the commission unless the commission or 
 45.19  a court issues an order or decision reversing the order for 
 45.20  temporary relief. 
 45.21     Subd. 8.  [ENFORCEMENT BY ATTORNEY GENERAL.] The attorney 
 45.22  general, on behalf of the state, may proceed to enforce and 
 45.23  collect penalties that are due and payable under this section in 
 45.24  any manner provided to the attorney general by other law. 
 45.25     Subd. 9.  [CUMULATIVE REMEDIES.] The attorney general may 
 45.26  not seek civil penalties under section 237A.33 for the same 
 45.27  violations for which the commission has issued an order imposing 
 45.28  administrative monetary penalties under this section.  The 
 45.29  imposition of administrative penalties in accordance with this 
 45.30  section is in addition to all other remedies available under 
 45.31  statutory or common law.  The payment of a penalty does not 
 45.32  preclude the use of other enforcement provisions, under which 
 45.33  penalties are not assessed, in connection with the violation or 
 45.34  violations for which the penalty was assessed. 
 45.35     Subd. 10.  [PENALTY PROCEEDS DEPOSITED IN GENERAL 
 45.36  FUND.] The proceeds of any penalty assessed under this section 
 46.1   paid to the state must be deposited in the general fund. 
 46.2      Subd. 11.  [PRIVATE REMEDIES.] Nothing in this section 
 46.3   affects the ability of a telecommunications service provider or 
 46.4   subscriber to bring a private cause of action in court against 
 46.5   an incumbent local service provider based on conduct for which a 
 46.6   penalty is imposed under this section. 
 46.7      Sec. 10.  [237A.35] [ASSESSMENT OF REGULATORY EXPENSES.] 
 46.8      Subdivision 1.  [PAYMENT FOR INVESTIGATION.] (a) Whenever 
 46.9   the department or commission, in a proceeding upon its own 
 46.10  motion, on complaint, or upon an application to it, considers it 
 46.11  necessary, in order to carry out the duties imposed on it, to 
 46.12  investigate the books, accounts, practices, and activities of 
 46.13  any company, parties to the proceeding shall pay the expenses 
 46.14  reasonably attributable to the proceeding.  The department and 
 46.15  commission shall ascertain the expenses, and the department 
 46.16  shall render a bill for those expenses to the parties, at the 
 46.17  conclusion of the proceeding.  The department is authorized to 
 46.18  submit billings to parties at intervals selected by the 
 46.19  department during the course of a proceeding. 
 46.20     (b) The allocation of costs may be adjusted for cause by 
 46.21  the commission during the course of the proceeding, or upon the 
 46.22  closing of the docket and issuance of an order.  In addition to 
 46.23  the rights granted in subdivision 3, parties to a proceeding may 
 46.24  object to the allocation at any time during the proceeding.  
 46.25  Withdrawal by a party to a proceeding does not absolve the party 
 46.26  from paying allocated costs as determined by the commission.  
 46.27  The commission may decide that a party should not pay any 
 46.28  allocated costs of the proceeding. 
 46.29     (c) The bill constitutes notice of the assessment and a 
 46.30  demand for payment.  The amount of the bills assessed by the 
 46.31  department under this subdivision must be paid by the parties 
 46.32  into the state treasury within 30 days from the date of 
 46.33  assessment.  The total amount, in a calendar year, for which a 
 46.34  telecommunications or cable service provider may become liable, 
 46.35  by reason of costs incurred by the department and commission 
 46.36  within that calendar year, may not exceed two-fifths of one 
 47.1   percent of the gross jurisdictional operating revenue of the 
 47.2   telecommunications or cable service provider in the last 
 47.3   preceding calendar year.  Direct charges may be assessed without 
 47.4   regard to this limitation until the gross jurisdictional 
 47.5   operating revenue of the telecommunications or cable service 
 47.6   provider for the preceding calendar year has been reported for 
 47.7   the first time.  Where, under this subdivision, costs are 
 47.8   incurred within a calendar year that are in excess of two-fifths 
 47.9   of one percent of the gross jurisdictional operating revenues, 
 47.10  the excess costs are not chargeable as part of the remainder 
 47.11  under subdivision 2. 
 47.12     (d) Except as otherwise provided in paragraph (e), for 
 47.13  purposes of assessing the cost of a proceeding to a party, 
 47.14  "party" means any entity or group subject to the laws and rules 
 47.15  of this state, however organized, whether public or private, 
 47.16  whether domestic or foreign, whether for profit or nonprofit, 
 47.17  and whether natural, corporate, or political, such as a business 
 47.18  or commercial enterprise organized as any type or combination of 
 47.19  corporation, limited liability company, partnership, limited 
 47.20  liability partnership, proprietorship, association, cooperative, 
 47.21  joint venture, carrier, or utility, and any successor or 
 47.22  assignee of any of them; a social or charitable organization; 
 47.23  and any type or combination of political subdivision, which 
 47.24  includes the executive, judicial, or legislative branch of the 
 47.25  state, a local government unit, an agency of the state or local 
 47.26  government unit, or a combination of any of them. 
 47.27     (e) For assessment and billing purposes, "party" does not 
 47.28  include the department or the attorney general; any entity or 
 47.29  group instituted primarily for the purpose of mutual help and 
 47.30  not conducted for profit; intervenors awarded compensation; or 
 47.31  any individual or group or counsel for the individual or group 
 47.32  representing the interests of end users or classes of end users 
 47.33  of services provided by telecommunications or cable service 
 47.34  providers, as determined by the commission. 
 47.35     Subd. 2.  [ASSESSMENT OF COSTS.] The department and 
 47.36  commission shall quarterly, at least 30 days before the start of 
 48.1   each quarter, estimate the total of their expenditures in the 
 48.2   performance of their duties relating to telecommunications or 
 48.3   cable service providers, other than amounts chargeable to 
 48.4   telecommunications or cable service providers under subdivision 
 48.5   1, 5, or 6.  The remainder must be assessed by the department to 
 48.6   the telecommunications or cable service providers operating in 
 48.7   this state in proportion to their respective gross 
 48.8   jurisdictional operating revenues during the last calendar year. 
 48.9   The assessment must be paid into the state treasury within 30 
 48.10  days after the bill has been mailed to the companies.  The bill 
 48.11  constitutes notice of the assessment and demand of payment.  The 
 48.12  total amount that may be assessed to the companies under this 
 48.13  subdivision may not exceed one-eighth of one percent of the 
 48.14  total gross jurisdictional operating revenues during the 
 48.15  calendar year.  The assessment for the third quarter of each 
 48.16  fiscal year must be adjusted to compensate for the amount by 
 48.17  which actual expenditures by the commission and department for 
 48.18  the preceding fiscal year were more or less than the estimated 
 48.19  expenditures previously assessed.  A telecommunications service 
 48.20  provider with gross jurisdictional operating revenues of less 
 48.21  than $5,000 is exempt from assessments under this subdivision. 
 48.22     Subd. 3.  [OBJECTION.] Within 30 days after the date of the 
 48.23  mailing of any bill as provided by subdivisions 1, 2, 5, and 6, 
 48.24  the parties to the proceeding, against which the bill has been 
 48.25  assessed, may file with the commission objections setting out 
 48.26  the grounds upon which it is claimed the bill is excessive, 
 48.27  erroneous, unlawful, or invalid.  The commission shall within 60 
 48.28  days issue an order in accordance with its findings.  The order 
 48.29  is appealable in the same manner as other final orders of the 
 48.30  commission. 
 48.31     Subd. 4.  [INTEREST IMPOSED.] The amounts assessed against 
 48.32  any telecommunications or cable service provider or other party 
 48.33  that is not paid after 30 days after the mailing of a notice 
 48.34  advising the telecommunications or cable service provider or 
 48.35  other party of the amount assessed against it, draw interest at 
 48.36  the rate of six percent per annum, and upon failure to pay the 
 49.1   assessment the attorney general shall proceed by action in the 
 49.2   name of the state against the telecommunications or cable 
 49.3   service provider or other party to collect the amount due, 
 49.4   together with interest and the cost of the suit. 
 49.5      Subd. 5.  [ADMINISTRATIVE HEARING COSTS; 
 49.6   APPROPRIATION.] Any amounts billed to the commission or the 
 49.7   department by the office of administrative hearings for 
 49.8   contested case hearings held pursuant to section 237A.27, 
 49.9   subdivision 2, must be assessed by the commissioner or the 
 49.10  department against the parties to the proceeding.  The 
 49.11  assessment must be paid into the state treasury within 30 days 
 49.12  after a bill, which constitutes notice of the assessment and 
 49.13  demand for payment of it, has been mailed to the parties.  Money 
 49.14  received must be credited to a special account and is 
 49.15  appropriated to the commissioner or the department for payment 
 49.16  to the office of administrative hearings. 
 49.17     Sec. 11.  [237A.36] [EXPEDITED PROCEEDING.] 
 49.18     Notwithstanding chapter 14, the commission may conduct an 
 49.19  expedited proceeding when authorized under this chapter. In an 
 49.20  expedited proceeding, the commission shall give prior notice to 
 49.21  interested persons and provide them with an opportunity to 
 49.22  present statements of fact and argument and to reply, either 
 49.23  orally or in writing or both.  In an expedited proceeding, the 
 49.24  pleadings must be verified, and oral statements of fact must be 
 49.25  made under oath or affirmation.  The commission shall make a 
 49.26  decision in an expedited proceeding based on the record. 
 49.27     Sec. 12.  [237A.37] [GROSS MISDEMEANOR VIOLATION.] 
 49.28     A telecommunications service provider who violates any 
 49.29  provision of this chapter, with intent to defraud, is guilty of 
 49.30  a gross misdemeanor. 
 49.31                             ARTICLE 5 
 49.32                         UNIVERSAL SERVICE 
 49.33     Section 1.  [237A.38] [ACCESS CHARGES.] 
 49.34     Subdivision 1.  [COMMISSION PROCEEDING; STANDARDS.] (a) 
 49.35  Within one year after the effective date of this chapter, the 
 49.36  commission shall complete a proceeding to establish access 
 50.1   charges to be charged by local service providers.  In its final 
 50.2   determination, the commission shall incorporate the standards 
 50.3   set forth in paragraphs (b) to (d). 
 50.4      (b) Access charges for any local service provider must be 
 50.5   based upon the forward-looking economic costs of providing 
 50.6   access to the local public switched telecommunications network. 
 50.7      (c) Access charges established for each provider must be 
 50.8   uniform, regardless of their application to the termination of 
 50.9   long distance or Internet traffic, and regardless of the 
 50.10  technology employed by the interconnecting company. 
 50.11     (d) The burden of justifying access charge rates based on 
 50.12  economic cost rests on the local service provider.  Unless and 
 50.13  until a higher rate is approved by the commission, a local 
 50.14  service provider is not allowed to charge more than $.01 per 
 50.15  minute for origination or termination of telecommunications. 
 50.16     Subd. 2.  [EXEMPTION.] Local service providers that wish to 
 50.17  charge access fees above the access charges established by the 
 50.18  commission must petition the commission for an exemption.  The 
 50.19  commission may grant an exemption to the limitation on access 
 50.20  charges if the commission finds that actual competition for the 
 50.21  exchange access service exists. 
 50.22     Sec. 2.  [237A.39] [UNIVERSAL SERVICE.] 
 50.23     Subdivision 1.  [DENSITY COST ZONES; RATE DEAVERAGING.] The 
 50.24  state is categorized into five density cost zones for the 
 50.25  purpose of deaveraging rates, as follows: 
 50.26     (1) urban zones with access line densities greater than 
 50.27  10,000 per square mile; 
 50.28     (2) suburban zones with access line densities between 850 
 50.29  and 10,000 per square mile; 
 50.30     (3) town zones with access line densities of between 101 
 50.31  and 850 per square mile; 
 50.32     (4) rural zones II with access line densities of between 6 
 50.33  and 100 per square mile; and 
 50.34     (5) rural zones I with access line densities of between 1 
 50.35  and 5 per square mile. 
 50.36     Subd. 2.  [DEAVERAGING CALCULATIONS.] Within 18 months 
 51.1   after the effective date of this chapter, the commission shall 
 51.2   complete a proceeding to calculate the deaveraged cost of 
 51.3   service for each local service area of an eligible 
 51.4   telecommunications carrier in the state.  In carrying out this 
 51.5   duty, the commission shall determine the cost of service for 
 51.6   each local service area of an eligible telecommunications 
 51.7   carrier in the state and pool the results into the appropriate 
 51.8   zone under subdivision 1.  In areas outside suburban and urban 
 51.9   zones, costs must be deaveraged based on a town and rural 
 51.10  distinction.  Costs should be deaveraged based on the same 
 51.11  forward-looking cost model approved by the commission.  To 
 51.12  calculate the deaveraged cost within each of the five density 
 51.13  cost zones, the costs pooled into each density cost zone must be 
 51.14  averaged.  For calculating the cost of service for each density 
 51.15  zone, the commission shall consider whether a wireless network 
 51.16  is the most efficient means of providing service. 
 51.17     Sec. 3.  [237A.40] [UNIVERSAL SERVICE FUND.] 
 51.18     Subdivision 1.  [CREATED.] (a) The Minnesota universal 
 51.19  service fund is created as a special fund in the state 
 51.20  treasury.  The fund is to be administered by the commissioner of 
 51.21  administration.  Money in the account is appropriated to the 
 51.22  commissioner of administration for the purposes of this 
 51.23  section.  All interest and earnings of the universal service 
 51.24  fund must be credited to the universal service fund account.  
 51.25  The commissioner of administration shall administer collections 
 51.26  for the fund.  
 51.27     (b) The universal service fund has two separate accounts: 
 51.28     (1) the high-cost customer account; and 
 51.29     (2) the government services account. 
 51.30  Money may be collected and transferred between fund accounts to 
 51.31  carry out the purposes of this section. 
 51.32     Subd. 2.  [ELIGIBLE TELECOMMUNICATIONS CARRIERS.] (a) A 
 51.33  telecommunications service provider designated as a 
 51.34  state-eligible telecommunications carrier under paragraph (b) or 
 51.35  (c) is eligible to receive universal service support in 
 51.36  accordance with subdivision 4 and must, throughout the service 
 52.1   area for which the designation is received: 
 52.2      (1) be able and willing to provide essential services, 
 52.3   either using its own facilities or a combination of its own 
 52.4   facilities and resale of another carrier's services, including 
 52.5   the services offered by another eligible telecommunications 
 52.6   carrier; and 
 52.7      (2) advertise the availability of these services and their 
 52.8   charges, using media of general distribution. 
 52.9      (b) Upon its own motion or upon request, the commission 
 52.10  shall designate one or more telecommunications service providers 
 52.11  that meet the requirements of paragraph (a) as eligible 
 52.12  telecommunications carriers for a service area designated by the 
 52.13  commission. 
 52.14     (c) For purposes of the high-cost customer account, 
 52.15  "essential services" means:  voice-grade access to the public 
 52.16  switched network, local usage, dual tone multifrequency (DTMF) 
 52.17  signaling or its functional equivalent capability; single-party 
 52.18  service or its functional equivalent; access to facilities 
 52.19  capable of carrying data transmissions of at least 256 kilobytes 
 52.20  per second; access to operator services; toll-free Internet 
 52.21  access; equal access; access to emergency services number 
 52.22  capability, including 911 and E911; statewide telecommunications 
 52.23  relay service for the hearing impaired; access to directory 
 52.24  services; and toll-blocking or toll-limitation services. 
 52.25     (d) The fund must be administered and distributed in 
 52.26  accordance with any rules adopted by the commission and designed 
 52.27  to preserve the availability of universal service throughout the 
 52.28  state.  To the extent that any existing rules of the commission 
 52.29  are inconsistent with this section, those rules are abolished 
 52.30  and without effect.  The commission may, if necessary, modify 
 52.31  its universal service rules to conform to this chapter. 
 52.32     Subd. 3.  [FUND REVENUE.] There is imposed a charge of 30 
 52.33  percent on the retail price paid for telecommunications service 
 52.34  by end users of those services.  The charge must be included on 
 52.35  the bill submitted by the provider of the services for which the 
 52.36  charge is payable and collected by that provider.  The provider 
 53.1   shall remit the charges collected to the commissioner of 
 53.2   administration on a monthly basis. 
 53.3      Subd. 4.  [HIGH-COST CUSTOMER ACCOUNT.] The commission 
 53.4   shall establish and annually adjust a statewide average 
 53.5   benchmark cost of service for universal telecommunications 
 53.6   service, based on the forward-looking cost of providing service 
 53.7   for each local service area of an eligible telecommunications 
 53.8   carrier in the state.  Eligible telecommunications carriers 
 53.9   whose forward-looking costs for providing essential services, 
 53.10  calculated by the commission under section 237A.39, that exceed 
 53.11  the state benchmark shall receive support from the high-cost 
 53.12  account in the universal service fund for the amount of the 
 53.13  excess for support in providing essential services to 
 53.14  residential and business customers in those high-cost areas. 
 53.15     Subd. 5.  [GOVERNMENT SERVICES ACCOUNT.] The government 
 53.16  services account funds the telephone assistance plan, the 
 53.17  telecommunications assistance of Minnesota program, and 911 
 53.18  emergency services. 
 53.19     Sec. 4.  [237A.41] [DESIGNATING ELIGIBLE CARRIERS FOR 
 53.20  UNSERVED AREAS.] 
 53.21     Subdivision 1.  [COMMISSION MAY DESIGNATE CARRIER.] If no 
 53.22  local service provider will provide the essential services that 
 53.23  are supported by state universal service support mechanisms 
 53.24  under section 237A.40, the commission may determine which local 
 53.25  service providers should provide these essential services to the 
 53.26  requesting, unserved area and may order those local service 
 53.27  providers to provide the essential services for that unserved 
 53.28  area.  Any carrier ordered to provide the essential services 
 53.29  under this paragraph must meet the requirements of section 
 53.30  237A.40, subdivision 2, and must be designated as an eligible 
 53.31  telecommunications carrier. 
 53.32     Subd. 2.  [DENSITY CRITERIA.] The commission shall not 
 53.33  require a local service provider to serve an unserved territory 
 53.34  unless 50 percent of the full-time residents and businesses 
 53.35  within a three-mile radius of the nearest technically feasible 
 53.36  interconnection point of a state-eligible telecommunications 
 54.1   carrier petition the commission for an order requiring that the 
 54.2   service be provided. 
 54.3      Sec. 5.  [237A.415] [RELINQUISHMENT OF UNIVERSAL SERVICE.] 
 54.4      The commission shall permit an eligible telecommunications 
 54.5   carrier to relinquish its designation in any area served by more 
 54.6   than one eligible telecommunications carrier.  An eligible 
 54.7   telecommunications carrier that seeks to relinquish its eligible 
 54.8   telecommunications carrier designation for an area served by 
 54.9   more than one eligible telecommunications carrier shall give 
 54.10  advance notice to the commission of the relinquishment.  Prior 
 54.11  to permitting an eligible telecommunications carrier to cease 
 54.12  providing universal service in an area served by more than one 
 54.13  eligible telecommunications carrier, the commission shall 
 54.14  require (1) any remaining eligible telecommunications carrier to 
 54.15  ensure that all customers served by the relinquishing carrier 
 54.16  will continue to be served, and (2) sufficient notice to permit 
 54.17  the purchase or construction of adequate facilities by any 
 54.18  remaining eligible telecommunications carrier.  The commission 
 54.19  shall establish a time, not to exceed one year after the 
 54.20  commission approves relinquishment under this paragraph, within 
 54.21  which the purchase or construction must be completed. 
 54.22     Sec. 6.  [237A.42] [NUMBER CONSERVATION.] 
 54.23     (a) Within two years after delegation of authority by the 
 54.24  Federal Communications Commission to the state to implement 
 54.25  measures to conserve telecommunications numbers, the commission 
 54.26  shall by order adopt measures to conserve telecommunications 
 54.27  numbers.  As part of any proceeding to adopt number conservation 
 54.28  measures under this section, the commission shall: 
 54.29     (1) identify and evaluate all methods of conserving 
 54.30  telecommunications numbers known to the commission or brought to 
 54.31  the attention of the commission by a party to the proceeding; 
 54.32  and 
 54.33     (2) adopt number conservation measures that the commission 
 54.34  finds are likely to be effective means of conserving numbers in 
 54.35  the state and are in the public interest.  
 54.36     (b) The commission shall require telecommunications service 
 55.1   providers who are allocated telecommunications numbers that have 
 55.2   not been assigned to a particular retail customer in the state 
 55.3   to implement the measures adopted by the commission. 
 55.4      Sec. 7.  [237A.43] [NUMBER SURCHARGE.] 
 55.5      (a) A charge of $1 is imposed for each telecommunications 
 55.6   number that is allocated after the effective date of this 
 55.7   section to a telecommunications service provider for use in the 
 55.8   state.  The charge is imposed on the telecommunications service 
 55.9   provider to whom the number is allocated.  The 
 55.10  telecommunications service provider shall remit the fee to the 
 55.11  commissioner of administration within 30 days after the number 
 55.12  has been allocated.  The commissioner of administration shall 
 55.13  deposit fees remitted under this section in the high-cost 
 55.14  customer account in the universal service fund for contribution 
 55.15  toward support of local service rates for rural business. 
 55.16     (b) A telecommunications service provider may not recover 
 55.17  the charge imposed on a telecommunications number under this 
 55.18  section from its customers until the number has been assigned to 
 55.19  a particular retail customer.  Once the number has been 
 55.20  assigned, the telecommunications service provider may recover 
 55.21  the $1 charge imposed upon that number from the customer to whom 
 55.22  the number has been assigned. 
 55.23     Sec. 8.  [237A.44] [DEFINITIONS.] 
 55.24     Subdivision 1.  [SCOPE.] The terms used in sections 237A.44 
 55.25  to 237A.50 have the meanings given them in this section. 
 55.26     Subd. 2.  [COMMUNICATION IMPAIRED.] "Communication impaired"
 55.27  means certified as deaf, severely hearing impaired, 
 55.28  hard-of-hearing, speech impaired, deaf and blind, or mobility 
 55.29  impaired if the mobility impairment significantly impedes the 
 55.30  ability to use standard, customer premises equipment. 
 55.31     Subd. 3.  [COMMUNICATION DEVICE.] "Communication device" 
 55.32  means a device that when connected to a telephone enables a 
 55.33  communication-impaired person to communicate with another person 
 55.34  utilizing the telephone system.  A communication device includes 
 55.35  a ring signaler, an amplification device, a telephone device for 
 55.36  the deaf, a Brailling device for use with a telephone, and any 
 56.1   other device the department of human services deems necessary. 
 56.2      Subd. 4.  [DEAF.] "Deaf" means a hearing impairment of such 
 56.3   severity that the individual must depend primarily upon visual 
 56.4   communication such as writing, lip reading, manual 
 56.5   communication, and gestures. 
 56.6      Subd. 5.  [EXCHANGE.] "Exchange" means a unit area 
 56.7   established and described by the tariff of a telecommunications 
 56.8   service provider for the administration of telecommunications 
 56.9   service in a specified geographical area, usually embracing a 
 56.10  city or town and its environs, and served by one or more central 
 56.11  offices, together with associated facilities used in providing 
 56.12  service within that area. 
 56.13     Subd. 6.  [FUND.] "Fund" means the telecommunications 
 56.14  access of Minnesota fund established in section 237A.46. 
 56.15     Subd. 7.  [HARD-OF-HEARING.] "Hard-of-hearing" means a 
 56.16  hearing impairment resulting in a functional loss, but not to 
 56.17  the extent that the individual must depend primarily upon visual 
 56.18  communication. 
 56.19     Subd. 8.  [INTEREXCHANGE SERVICE.] "Interexchange service" 
 56.20  means telecommunications service between points in two or more 
 56.21  exchanges. 
 56.22     Subd. 9.  [INTER-LATA INTEREXCHANGE SERVICE.] "Inter-LATA 
 56.23  interexchange service" means interexchange service originating 
 56.24  and terminating in different LATAs. 
 56.25     Subd. 10.  [LOCAL ACCESS AND TRANSPORT AREA.] "Local access 
 56.26  and transport area" (LATA) means a geographical area designated 
 56.27  by the Modification of Final Judgment in U.S. v. Western 
 56.28  Electric Co., Inc., 552 F. Supp. 131 (D.D.C. 1982), including 
 56.29  modifications in effect on the effective date of this chapter. 
 56.30     Subd. 11.  [LOCAL EXCHANGE SERVICE.] "Local exchange 
 56.31  service" means telecommunications service between points within 
 56.32  an exchange. 
 56.33     Subd. 12.  [TELECOMMUNICATION RELAY SERVICE.] 
 56.34  "Telecommunication relay service" means a central statewide 
 56.35  service through which a communication-impaired person, using a 
 56.36  communication device, may send and receive messages to and from 
 57.1   a non-communication-impaired person whose telephone is not 
 57.2   equipped with a communication device and through which a 
 57.3   non-communication-impaired person may, by using voice 
 57.4   communication, send and receive messages to and from a 
 57.5   communication-impaired person. 
 57.6      Sec. 9.  [237A.45] [RELAY SERVICE PROGRAM ADMINISTRATION.] 
 57.7      Subdivision 1.  [CREATION.] The department shall administer 
 57.8   through interagency agreement with the department of human 
 57.9   services a program to distribute communication devices to 
 57.10  eligible communication-impaired persons and contract with a 
 57.11  local consumer group that serves communication-impaired persons 
 57.12  to create and maintain a telecommunications relay service.  For 
 57.13  purposes of sections 237A.44 to 237A.50, the department and any 
 57.14  organization with which it contracts pursuant to this section or 
 57.15  section 237A.48, are not telecommunications service providers 
 57.16  for long-distance telephone companies. 
 57.17     Subd. 2.  [DEPARTMENT OF COMMERCE DUTIES; RULES.] In 
 57.18  addition to duties specified elsewhere in sections 237A.44 to 
 57.19  237A.50, the department shall: 
 57.20     (1) prepare the reports required by section 237A.49; 
 57.21     (2) administer the fund created in section 237A.46; and 
 57.22     (3) adopt new or maintain existing rules as necessary under 
 57.23  chapter 14 to implement sections 237A.45 to 237A.50. 
 57.24     Subd. 3.  [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 
 57.25  addition to any duties specified elsewhere in sections 237A.46 
 57.26  to 237A.50, the department of human services shall: 
 57.27     (1) define economic hardship, special needs, and household 
 57.28  criteria so as to determine the priority of eligible applicants 
 57.29  for initial distribution of devices and to determine 
 57.30  circumstances necessitating provision of more than one 
 57.31  communication device per household; 
 57.32     (2) establish a method to verify eligibility requirements; 
 57.33     (3) establish specifications for communication devices to 
 57.34  be purchased under section 237A.47, subdivision 3; and 
 57.35     (4) inform the public and specifically the community of 
 57.36  communication-impaired persons of the program. 
 58.1      (b) The department may establish an advisory board to 
 58.2   advise the department in carrying out the duties specified in 
 58.3   this section and to advise the department of commerce in 
 58.4   carrying out its duties under section 237A.45.  If so 
 58.5   established, the advisory board must include, at a minimum, the 
 58.6   following communication-impaired persons: 
 58.7      (1) at least one member who is deaf; 
 58.8      (2) at least one member who is speech impaired; 
 58.9      (3) at least one member who is mobility impaired; and 
 58.10     (4) at least one member who is hard-of-hearing. 
 58.11     The membership terms, compensation, and removal of members 
 58.12  and the filling of membership vacancies are governed by section 
 58.13  15.059.  Advisory board meetings must be held at the discretion 
 58.14  of the commissioner.  
 58.15     Sec. 10.  [237A.46] [TAM APPROPRIATION.] 
 58.16     Subdivision 1.  [ASSESSMENT.] The department shall annually 
 58.17  recommend to the commission an adequate and appropriate budget 
 58.18  to implement sections 237A.44 to 237A.50.  The commission shall 
 58.19  review the budget for reasonableness and may modify the budget 
 58.20  to the extent it is unreasonable.  
 58.21     Subd. 2.  [APPROPRIATION.] Money in the universal services 
 58.22  fund government services account fund is appropriated to the 
 58.23  department to implement sections 237A.44 to 237A.50. 
 58.24     Subd. 3.  [EXPENDITURES.] (a) Money appropriated to the 
 58.25  department may only be used for: 
 58.26     (1) expenses of the department, including personnel cost, 
 58.27  public relations, advisory board members' expenses, preparation 
 58.28  of reports, and other reasonable expenses not to exceed ten 
 58.29  percent of total program expenditures; 
 58.30     (2) reimbursing the commissioner of human services for 
 58.31  purchases made or services provided pursuant to section 237A.47; 
 58.32     (3) reimbursing telecommunications service providers for 
 58.33  purchases made or services provided under section 237A.47, 
 58.34  subdivision 5; and 
 58.35     (4) contracting for establishment and operation of the 
 58.36  telecommunication relay service required by section 237A.48. 
 59.1      (b) All costs directly associated with the establishment of 
 59.2   the program, the purchase and distribution of communication 
 59.3   devices, and the establishment and operation of the 
 59.4   telecommunication relay service are either reimbursable or 
 59.5   directly payable from the fund after authorization by the 
 59.6   department.  The department shall contract with the message 
 59.7   relay service operator to indemnify the local exchange carriers 
 59.8   of the relay service for any fines imposed by the Federal 
 59.9   Communications Commission related to the failure of the relay 
 59.10  service to comply with federal service standards.  
 59.11  Notwithstanding section 16A.41, the department may advance money 
 59.12  to the contractor of the telecommunication relay service if the 
 59.13  contractor establishes to the department's satisfaction that the 
 59.14  advance payment is necessary for the operation of the service.  
 59.15  The advance payment must be offset or repaid by the end of the 
 59.16  contract fiscal year together with interest accrued from the 
 59.17  date of payment. 
 59.18     Sec. 11.  [237A.47] [COMMUNICATION DEVICE.] 
 59.19     Subdivision 1.  [APPLICATION.] A person applying for a 
 59.20  communication device under this section shall apply to the 
 59.21  program administrator on a form prescribed by the department of 
 59.22  human services. 
 59.23     Subd. 2.  [ELIGIBILITY.] To be eligible to obtain a 
 59.24  communication device under this section, a person must be: 
 59.25     (1) able to benefit from and use the equipment for its 
 59.26  intended purpose; 
 59.27     (2) communication impaired; 
 59.28     (3) a resident of the state; 
 59.29     (4) a resident in a household that has a median income at 
 59.30  or below the applicable median household in the state, except a 
 59.31  deaf and blind person applying for a telebraille unit may reside 
 59.32  in a household that has a median income no more than 150 percent 
 59.33  of the applicable median household income in the state; and 
 59.34     (5) a resident in a household that has telecommunications 
 59.35  service or that has applied for service and has been assigned a 
 59.36  telephone number, or a resident in a residential care facility, 
 60.1   such as a nursing home or group home where telecommunications 
 60.2   service is not included as part of the overall service provision.
 60.3      Subd. 3.  [DISTRIBUTION.] The commissioner of human 
 60.4   services shall purchase and distribute a sufficient number of 
 60.5   communication devices so that each eligible household receives 
 60.6   an appropriate device.  The commissioner of human services shall 
 60.7   distribute the devices to eligible households in each service 
 60.8   area free of charge as determined under this section. 
 60.9      Subd. 4.  [TRAINING; MAINTENANCE.] The commissioner of 
 60.10  human services shall maintain the communication devices until 
 60.11  the warranty period expires, and provide training, without 
 60.12  charge, to first-time users of the devices. 
 60.13     Subd. 5.  [WIRING INSTALLATION.] If a 
 60.14  communication-impaired person is not served by 
 60.15  telecommunications service and is subject to economic hardship 
 60.16  as determined by the department of human services, the 
 60.17  telecommunications service provider providing local service 
 60.18  shall, at the direction of the administrator of the program, 
 60.19  install necessary outside wiring without charge to the household.
 60.20     Subd. 6.  [OWNERSHIP.] Communication devices purchased 
 60.21  pursuant to subdivision 3 become the property of the state of 
 60.22  Minnesota. 
 60.23     Subd. 7.  [STANDARDS.] The communication devices 
 60.24  distributed under this section must comply with the electronic 
 60.25  industries association standards and approved by the Federal 
 60.26  Communications Commission.  The commissioner of human services 
 60.27  shall provide each eligible person a choice of several models of 
 60.28  the devices, the retail value of which may not exceed $600 for a 
 60.29  communication device for the deaf, and a retail value of $7,000 
 60.30  for a telebraille device, or an amount authorized by the 
 60.31  department of human services for a telephone device for the deaf 
 60.32  with auxiliary equipment. 
 60.33     Sec. 12.  [237A.48] [TELECOMMUNICATION RELAY SERVICE.] 
 60.34     The department shall contract with a local consumer 
 60.35  organization that serves communication-impaired persons for 
 60.36  operation and maintenance of the telecommunication relay 
 61.1   system.  The department may contract with other than a local 
 61.2   consumer organization if (1) no local consumer organization is 
 61.3   available to enter into or perform a reasonable contract, or (2) 
 61.4   the only available consumer organization fails to comply with 
 61.5   the terms of a contract.  The operator of the system shall keep 
 61.6   all messages confidential, shall train personnel in the unique 
 61.7   needs of communication-impaired people, and shall inform 
 61.8   communication-impaired persons and the public of the 
 61.9   availability and use of the system.  The operator shall not 
 61.10  relay a message unless it originates or terminates through a 
 61.11  communication device for the deaf or speech synthesizer or a 
 61.12  Brailling device for use with a telephone. 
 61.13     Sec. 13.  [237A.49] [ANNUAL REPORT ON COMMUNICATION 
 61.14  ACCESS.] 
 61.15     The department shall prepare a report for presentation to 
 61.16  the commission by January 31 of each year.  Each report must 
 61.17  review the accessibility of the telecommunications system to 
 61.18  communication-impaired persons, review the ability of 
 61.19  non-communication-impaired persons to communicate with 
 61.20  communication-impaired persons via the telecommunications 
 61.21  system, describe services provided, account for money received 
 61.22  and disbursed annually for each aspect of the program to date, 
 61.23  and include predicted future operation. 
 61.24     Sec. 14.  [237A.50] [ADEQUATE SERVICE ENFORCEMENT.] 
 61.25     The services required to be provided under sections 237A.44 
 61.26  to 237A.50 may be enforced under section 237A.33 upon a 
 61.27  complaint of at least two communication-impaired persons within 
 61.28  the service area of any one telecommunications service 
 61.29  provider.  However, if only one person within the service area 
 61.30  of a company is receiving service under sections 237A.44 to 
 61.31  237A.50, the commission may proceed upon a complaint from that 
 61.32  person. 
 61.33     Sec. 15.  [237A.51] [TELEPHONE ASSISTANCE PROGRAM.] 
 61.34     Subdivision 1.  [HOUSEHOLD ELIGIBILITY FOR CREDITS.] (a) 
 61.35  The telephone assistance program must provide telephone 
 61.36  assistance credit for a residential household in Minnesota that 
 62.1   meets each of the criteria listed in paragraphs (b) to (d). 
 62.2      (b) A member of the household: 
 62.3      (1) subscribes to local exchange service; and 
 62.4      (2) is either disabled or 65 years of age or older. 
 62.5      (c) The income of the household is 150 percent or less of 
 62.6   federal poverty guidelines or a member of the household is 
 62.7   currently eligible for: 
 62.8      (1) the Minnesota family investment program; 
 62.9      (2) medical assistance; 
 62.10     (3) general assistance; 
 62.11     (4) Minnesota supplemental aid; 
 62.12     (5) food stamps; 
 62.13     (6) refugee cash assistance or refugee medical assistance; 
 62.14     (7) energy assistance; or 
 62.15     (8) supplemental security income. 
 62.16     (d) A member of the household has been certified as 
 62.17  eligible for telephone assistance plan credits. 
 62.18     Subd. 2.  [NATURE AND EXTENT OF CREDITS.] The telephone 
 62.19  assistance program may provide for telephone assistance credits 
 62.20  to eligible households up to $3.50 or 50 percent of the total 
 62.21  amount available to eligible households under the federal 
 62.22  lifeline program, whichever amount is lower. 
 62.23     Subd. 3.  [APPLICATION FORM REQUIREMENTS.] The department 
 62.24  of human services shall develop an application form that must be 
 62.25  completed by the subscriber for the purpose of certifying 
 62.26  eligibility for telephone assistance program credits to the 
 62.27  department of human services.  The application must contain the 
 62.28  applicant's social security number.  Applicants who refuse to 
 62.29  provide a social security number must be denied telephone 
 62.30  assistance program credits.  The application form must include 
 62.31  provisions for the applicant to show the name of the applicant's 
 62.32  telecommunications service provider.  Applicants must also 
 62.33  provide proof of income level.  The application must state that 
 62.34  failure to submit proof of income level with the application 
 62.35  will result in the applicant being found ineligible. 
 62.36     Subd. 4.  [NOTICE TO SUBSCRIBER.] Each telecommunications 
 63.1   service provider shall annually mail a notice of the 
 63.2   availability of the telephone assistance program to each 
 63.3   residential subscriber in a regular billing and shall mail the 
 63.4   application form to customers when requested.  The notice must 
 63.5   state the following: 
 63.6      "YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR 
 63.7   TELEPHONE BILL IF YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS.  FOR 
 63.8   MORE INFORMATION OR AN APPLICATION FORM PLEASE CONTACT 
 63.9   ............................" 
 63.10     Subd. 5.  [ANNUAL ELIGIBILITY DETERMINATION.] The 
 63.11  department of human services shall determine the eligibility for 
 63.12  telephone assistance program credits at least annually according 
 63.13  to the criteria contained in subdivision 1. 
 63.14     Subd. 6.  [SUBMITTING APPLICATION.] An application may be 
 63.15  made by the subscriber, the subscriber's spouse, or a person 
 63.16  authorized by the subscriber to act on the subscriber's behalf. 
 63.17  On completing the application certifying that the statutory 
 63.18  criteria for eligibility are satisfied, the applicant shall 
 63.19  return the application to an office of the department of human 
 63.20  services specially designated to process telephone assistance 
 63.21  program applications.  
 63.22     Subd. 7.  [INELIGIBILITY DETERMINATION; DEADLINE, 
 63.23  PROCEDURE.] (a) On receiving a completed application from an 
 63.24  applicant, the department of human services shall determine the 
 63.25  applicant's eligibility or ineligibility within 120 days.  If 
 63.26  the department fails to do so, it shall within three working 
 63.27  days provide written notice to the applicant's 
 63.28  telecommunications service provider that the provider shall 
 63.29  provide telephone assistance plan credits against monthly 
 63.30  charges in the earliest possible month following receipt of the 
 63.31  written notice.  The applicant must receive telephone assistance 
 63.32  program credits until the earliest possible month following the 
 63.33  provider's receipt of notice from the department that the 
 63.34  applicant is ineligible.  
 63.35     (b) If the department of human services determines that an 
 63.36  applicant is not eligible to receive telephone assistance 
 64.1   program credits, it shall notify the applicant within ten 
 64.2   working days of that determination. 
 64.3      Subd. 8.  [NOTICE OF ELIGIBILITY; TAP CREDITS 
 64.4   IMPLEMENTED.] (a) Within ten working days of determining that an 
 64.5   applicant is eligible to receive telephone assistance program 
 64.6   credits, the department of human services shall provide written 
 64.7   notification to the telecommunications service provider that 
 64.8   serves the applicant.  The notice must include the applicant's 
 64.9   name, address, and telephone number. 
 64.10     (b) Each provider shall provide telephone assistance 
 64.11  program credits against monthly charges in the earliest possible 
 64.12  month following receipt of notice from the department of human 
 64.13  services. 
 64.14     (c) The telecommunications service provider shall notify 
 64.15  the subscriber of the approval for the telephone assistance 
 64.16  program credit. 
 64.17     Subd. 9.  [ONGOING ELIGIBILITY REQUIREMENTS.] By December 
 64.18  31 of each year, the department of human services shall 
 64.19  redetermine eligibility of each person receiving telephone 
 64.20  assistance program credits, as required in subdivision 6.  The 
 64.21  department of human services shall submit an annual report to 
 64.22  the legislature by January 15 of each year showing that the 
 64.23  department has determined the eligibility for telephone 
 64.24  assistance program credits of each person receiving the credits 
 64.25  or explaining why the determination has not been made and 
 64.26  showing how and when the determination will be completed. 
 64.27     Subd. 10.  [NOTICE OF NONRENEWAL.] On determining that a 
 64.28  current recipient of telephone assistance program credits is not 
 64.29  eligible to receive the credits, the department of human 
 64.30  services shall notify, in writing, the recipient within ten 
 64.31  working days and the telecommunications service provider serving 
 64.32  the recipient within 20 working days of the determination.  The 
 64.33  notice must include the recipient's name, address, and telephone 
 64.34  number. 
 64.35     Subd. 11.  [TAP CREDITS DISCONTINUED.] Each 
 64.36  telecommunications service provider shall remove telephone 
 65.1   assistance program credits against monthly charges in the 
 65.2   earliest possible month following receipt of notice from the 
 65.3   department of human services. 
 65.4      Subd. 12.  [NOTICE OF DISCONNECTION.] Each 
 65.5   telecommunications service provider that disconnects a 
 65.6   subscriber receiving the telephone assistance program credit 
 65.7   shall report the disconnection to the department of human 
 65.8   services.  The reports must be submitted monthly, identifying 
 65.9   the subscribers disconnected.  Telecommunications service 
 65.10  providers that do not disconnect a subscriber receiving the 
 65.11  telephone assistance program credit are not required to report. 
 65.12     Subd. 13.  [COORDINATION, ADMINISTRATION, DUTIES.] (a) The 
 65.13  department of human services and the commissioner of 
 65.14  administration shall serve as the coordinators of the telephone 
 65.15  assistance program and be reimbursed for its administrative 
 65.16  expenses from the universal service fund government services 
 65.17  account. 
 65.18     (b) The coordinators shall require each telecommunications 
 65.19  service provider to account to the commissioner of 
 65.20  administration on a periodic basis for credits extended by the 
 65.21  provider under the telephone assistance program. 
 65.22     (c) The coordinators shall remit to each telecommunications 
 65.23  service provider from the universal service fund government 
 65.24  services account the amount necessary to compensate the provider 
 65.25  for expenses and telephone assistance program credits.  If it 
 65.26  ever appears that the dollar amount in the universal service 
 65.27  fund government services account will be inadequate to fund the 
 65.28  level of telephone assistance program credits set forth under 
 65.29  subdivision 3, the commissioner of administration shall reduce 
 65.30  the credits to a level that can be adequately funded by the 
 65.31  universal service fund government services account. 
 65.32     Subd. 14.  [RECORDKEEPING AND REPORTING.] Each 
 65.33  telecommunications service provider shall maintain adequate 
 65.34  records of expenses and credits related to the telephone 
 65.35  assistance program and shall, as part of its annual report or 
 65.36  separately, provide the commissioner of administration with a 
 66.1   financial report for the telephone assistance program for the 
 66.2   previous year. 
 66.3      Subd. 15.  [COMPLAINT INVESTIGATION.] The department shall 
 66.4   investigate complaints against telecommunications service 
 66.5   providers with regard to the telephone assistance program and 
 66.6   shall report the results of its investigation to the commission. 
 66.7      Sec. 16.  [237A.52] [TELEPHONE ASSISTANCE FUND; 
 66.8   APPROPRIATION.] 
 66.9      (a) The telephone assistance fund is created as a 
 66.10  subaccount of the government services account in the universal 
 66.11  service fund established under section 237A.40, subdivision 1.  
 66.12  The telephone assistance fund must be calculated annually by the 
 66.13  department of administration and consists of that portion of the 
 66.14  universal service fund government services account equal to 21 
 66.15  cents multiplied by the number of access lines in the state. 
 66.16     (b) Money in the fund may be used only for: 
 66.17     (1) reimbursement to telephone companies for credits 
 66.18  allowed in section 237A.51, subdivision 2; 
 66.19     (2) reimbursement of the administrative expenses of the 
 66.20  department of human services to implement section 237A.51, not 
 66.21  to exceed $580,000 annually; and 
 66.22     (3) reimbursement of the administrative expenses of the 
 66.23  commissioner of administration, not to exceed $25,000 annually. 
 66.24                             ARTICLE 6 
 66.25                            RIGHT-OF-WAY 
 66.26     Section 1.  [237A.53] [PUBLIC RIGHT-OF-WAY; DEFINITIONS.] 
 66.27     Subdivision 1.  [APPLICABILITY.] The terms used in this 
 66.28  section and section 237A.54 have the meanings given them in this 
 66.29  section. 
 66.30     Subd. 2.  [EXCAVATE.] "Excavate" means to dig into or in 
 66.31  any way remove, physically disturb, or penetrate a part of a 
 66.32  public right-of-way.  
 66.33     Subd. 3.  [LOCAL GOVERNMENT UNIT.] "Local government unit" 
 66.34  means a county, home rule charter or statutory city, or town. 
 66.35     Subd. 4.  [MANAGE THE PUBLIC RIGHT-OF-WAY.] "Manage the 
 66.36  public right-of-way" means the authority of a local government 
 67.1   unit to do any or all of the following: 
 67.2      (1) require registration; 
 67.3      (2) require construction performance bonds and insurance 
 67.4   coverage; 
 67.5      (3) establish installation and construction standards; 
 67.6      (4) establish and define location and relocation 
 67.7   requirements for equipment and facilities; 
 67.8      (5) establish coordination and timing requirements; 
 67.9      (6) require telecommunications right-of-way users to 
 67.10  submit, for right-of-way projects commenced after May 10, 1997, 
 67.11  whether initiated by a local government unit or any 
 67.12  telecommunications right-of-way user, project data reasonably 
 67.13  necessary to allow the local government unit to develop a 
 67.14  right-of-way mapping system, such as a geographical information 
 67.15  mapping system; 
 67.16     (7) require telecommunication right-of-way users to submit, 
 67.17  upon request of a local government unit, existing data on the 
 67.18  location of the user's facilities occupying the public 
 67.19  right-of-way within the local government unit, which may be 
 67.20  submitted in the form maintained by the user and in a reasonable 
 67.21  time after receipt of the request based on the amount of data 
 67.22  requested; 
 67.23     (8) establish right-of-way permitting requirements for 
 67.24  street excavation and obstruction; 
 67.25     (9) establish removal requirements for abandoned equipment 
 67.26  or facilities, if required in conjunction with other 
 67.27  right-of-way repair, excavation, or construction; and 
 67.28     (10) impose reasonable penalties for unreasonable delays in 
 67.29  construction. 
 67.30     Subd. 5.  [MANAGEMENT COSTS OR RIGHTS-OF-WAY MANAGEMENT 
 67.31  COSTS.] "Management costs" or "rights-of-way management costs" 
 67.32  means the actual costs a local government unit incurs in 
 67.33  managing its public rights-of-way, and includes such costs, if 
 67.34  incurred, as those associated with registering applicants; 
 67.35  issuing, processing, and verifying right-of-way permit 
 67.36  applications; inspecting job sites and restoration projects; 
 68.1   maintaining, supporting, protecting, or moving user equipment 
 68.2   during public right-of-way work; determining the adequacy of 
 68.3   right-of-way restoration; restoring work inadequately performed 
 68.4   after providing notice and the opportunity to correct the work; 
 68.5   and revoking right-of-way permits.  Management costs do not 
 68.6   include payment by a telecommunications right-of-way user for 
 68.7   the use of the public right-of-way, the fees and cost of 
 68.8   litigation relating to the interpretation of this section or 
 68.9   section 237A.54 or any ordinance enacted under those sections, 
 68.10  or the local unit of government's fees and costs related to 
 68.11  appeals taken pursuant to section 237A.54, subdivision 5. 
 68.12     Subd. 6.  [OBSTRUCT.] "Obstruct" means to place a tangible 
 68.13  object in a public right-of-way so as to hinder free and open 
 68.14  passage over that or any part of the right-of-way. 
 68.15     Subd. 7.  [PUBLIC RIGHT-OF-WAY.] (a) "Public right-of-way" 
 68.16  means the area on, below, or above a public roadway, highway, 
 68.17  street, cartway, bicycle lane, and public sidewalk in which the 
 68.18  local government unit has an interest, including other dedicated 
 68.19  rights-of-way for travel purposes and utility easements of local 
 68.20  government units. 
 68.21     (b) A public right-of-way does not include the airwaves 
 68.22  above a public right-of-way with regard to cellular or other 
 68.23  nonwire telecommunications or broadcast service. 
 68.24     Subd. 8.  [RIGHT-OF-WAY PERMIT.] "Right-of-way permit" 
 68.25  means a permit to perform work in a public right-of-way, whether 
 68.26  to excavate or obstruct the right-of-way. 
 68.27     Subd. 9.  [TELECOMMUNICATIONS RIGHT-OF-WAY 
 68.28  USER.] "Telecommunications right-of-way user" means a person 
 68.29  owning or controlling a facility in the public right-of-way, or 
 68.30  seeking to own or control a facility in the public right-of-way, 
 68.31  that is used or is intended to be used for transporting 
 68.32  telecommunications or other voice or data information.  
 68.33  Telecommunications activities related to providing natural gas 
 68.34  or electric energy services whether provided by a public utility 
 68.35  as defined in section 216B.02, a municipality, a municipal gas 
 68.36  or power agency organized under chapter 453 or 453A, or a 
 69.1   cooperative electric association organized under chapter 308A, 
 69.2   are not telecommunications right-of-way users for the purposes 
 69.3   of this section and section 237A.54. 
 69.4      Sec. 2.  [237A.54] [USE AND REGULATION OF PUBLIC 
 69.5   RIGHT-OF-WAY.] 
 69.6      Subdivision 1.  [LEGISLATIVE FINDING.] (a) The legislature 
 69.7   finds and establishes the principle that it is in the state's 
 69.8   interest that the use and regulation of public rights-of-way be 
 69.9   carried on in a fair, efficient, competitively neutral, and 
 69.10  substantially uniform manner, while recognizing this regulation 
 69.11  must reflect the distinct engineering, construction, operation, 
 69.12  maintenance, and public and worker safety requirements and 
 69.13  standards applicable to various users of public rights-of-way.  
 69.14     (b) Because of the potential for installation by 
 69.15  telecommunications service providers of multiple and competing 
 69.16  facilities within the public rights-of-way, the legislature 
 69.17  finds it is necessary to enact this section and section 237A.55 
 69.18  to specifically authorize local government units to regulate the 
 69.19  use of public rights-of-way by telecommunications right-of-way 
 69.20  users. 
 69.21     Subd. 2.  [AUTHORITIES; GENERALLY.] (a) Subject to this 
 69.22  section, a telecommunications right-of-way user authorized to do 
 69.23  business under the laws of this state or by license of the 
 69.24  Federal Communications Commission may construct, maintain, and 
 69.25  operate conduit, cable, switches, and related appurtenances and 
 69.26  facilities along, across, upon, above, and under any public 
 69.27  right-of-way. 
 69.28     (b) Subject to this section, a local government unit has 
 69.29  the authority to manage its public rights-of-way and to recover 
 69.30  its rights-of-way management costs.  The authority defined in 
 69.31  this section may be exercised at the option of the local 
 69.32  government unit.  The exercise of this authority is not mandated 
 69.33  under this section.  A local government unit may, by ordinance, 
 69.34  require a right-of-way user to obtain a permit, to register, and 
 69.35  to submit plans as described in paragraphs (c) through (f). 
 69.36     (c) A local government unit may require a 
 70.1   telecommunications right-of-way user seeking to excavate or 
 70.2   obstruct a public right-of-way for the purpose of providing 
 70.3   telecommunications services to obtain a right-of-way permit to 
 70.4   do so and to impose permit conditions consistent with the local 
 70.5   government unit's management of the right-of-way. 
 70.6      (d) A local unit of government may require a 
 70.7   telecommunications right-of-way user using, occupying, or 
 70.8   seeking to use or occupy a public right-of-way for the purpose 
 70.9   of providing telecommunications services to register with the 
 70.10  local government unit by providing the local government unit 
 70.11  with the following information: 
 70.12     (1) the applicant's name, gopher state one-call 
 70.13  registration number under section 216D.03, address, and 
 70.14  telephone and facsimile numbers; 
 70.15     (2) the name, address, and telephone and facsimile numbers 
 70.16  of the applicant's local representative; 
 70.17     (3) proof of adequate insurance; and 
 70.18     (4) other information deemed reasonably necessary by the 
 70.19  local government unit for the efficient administration of the 
 70.20  public right-of-way. 
 70.21     (e) The local government unit may require a 
 70.22  telecommunications right-of-way user to submit to the local 
 70.23  government unit plans for construction and major maintenance 
 70.24  that provide reasonable notice to the local government unit of 
 70.25  any project that the telecommunications right-of-way user 
 70.26  expects to undertake that may require excavation and obstruction 
 70.27  of public rights-of-way. 
 70.28     (f) A local government unit may also require a 
 70.29  telecommunications right-of-way user that is registered with the 
 70.30  local government unit pursuant to paragraph (d) to periodically 
 70.31  update the information in its registration application. 
 70.32     Subd. 3.  [RESTORATION.] (a) A telecommunications 
 70.33  right-of-way user, after an excavation of a public right-of-way, 
 70.34  shall provide for restoration of the right-of-way and 
 70.35  surrounding areas, including the pavement and its foundation, in 
 70.36  the same condition that existed before the excavation.  Local 
 71.1   government units that choose to perform their own surface 
 71.2   restoration required as a result of the excavation may require 
 71.3   telecommunications right-of-way users to reimburse the 
 71.4   reasonable costs of that surface restoration.  Restoration of 
 71.5   the public right-of-way must be completed within the dates 
 71.6   specified in the right-of-way permit, unless the permittee 
 71.7   obtains a waiver or a new or amended right-of-way permit. 
 71.8      (b) If a telecommunications right-of-way user elects not to 
 71.9   restore the public right-of-way, a local government unit may 
 71.10  impose a degradation fee in lieu of restoration to recover costs 
 71.11  associated with a decrease in the useful life of the public 
 71.12  right-of-way caused by the excavation of the right-of-way by a 
 71.13  telecommunications right-of-way user. 
 71.14     (c) A telecommunications right-of-way user that disturbs 
 71.15  uncultivated sod in the excavation or obstruction of a public 
 71.16  right-of-way shall plant grasses that are native to Minnesota 
 71.17  and, wherever practicable, that are of the local ecotype, as 
 71.18  part of the restoration required under this subdivision, unless 
 71.19  the owner of the real property over which the public 
 71.20  right-of-way traverses objects.  In restoring the right-of-way, 
 71.21  the telecommunications right-of-way user shall consult with the 
 71.22  department of natural resources regarding the species of native 
 71.23  grasses that conform to the requirements of this paragraph. 
 71.24     Subd. 4.  [PERMIT DENIAL OR REVOCATION.] (a) A local 
 71.25  government unit may deny any application for a right-of-way 
 71.26  permit if the telecommunications right-of-way user does not 
 71.27  comply with a provision of this section. 
 71.28     (b) A local government unit may deny an application for a 
 71.29  right-of-way permit if the local government unit determines that 
 71.30  the denial is necessary to protect the health, safety, and 
 71.31  welfare or when necessary to protect the public right-of-way and 
 71.32  its current use. 
 71.33     (c) A local government unit may revoke a right-of-way 
 71.34  permit granted to a telecommunications right-of-way user, with 
 71.35  or without fee refund, in the event of a substantial breach of 
 71.36  the terms and conditions of statute, ordinance, rule, or 
 72.1   regulation or any material condition of the permit.  A 
 72.2   substantial breach by a permittee includes, but is not limited 
 72.3   to, the following: 
 72.4      (1) a material violation of a provision of the right-of-way 
 72.5   permit; 
 72.6      (2) an evasion or attempt to evade any material provision 
 72.7   of the right-of-way permit, or the perpetration or attempt to 
 72.8   perpetrate any fraud or deceit upon the local government unit or 
 72.9   its citizens; 
 72.10     (3) a material misrepresentation of fact in the 
 72.11  right-of-way permit application; 
 72.12     (4) a failure to complete work in a timely manner, unless a 
 72.13  permit extension is obtained or unless the failure to complete 
 72.14  work is due to reasons beyond the permittee's control; and 
 72.15     (5) a failure to correct, in a timely manner, work that 
 72.16  does not conform to applicable standards, conditions, or codes, 
 72.17  upon inspection and notification by the local government unit of 
 72.18  the faulty condition. 
 72.19     (d) Subject to this subdivision, a local government unit 
 72.20  may not deny an application for a right-of-way permit for 
 72.21  failure to include a project in a plan submitted to the local 
 72.22  government unit under subdivision 2, paragraph (e), when the 
 72.23  telecommunications right-of-way user has used commercially 
 72.24  reasonable efforts to anticipate and plan for the project. 
 72.25     (e) In no event may a local government unit unreasonably 
 72.26  withhold approval of an application for a right-of-way permit, 
 72.27  or unreasonably revoke a permit. 
 72.28     Subd. 5.  [APPEAL.] (a) A telecommunications right-of-way 
 72.29  user that (1) has been denied registration, (2) has been denied 
 72.30  a right-of-way permit, (3) has had its right-of-way permit 
 72.31  revoked, or (4) believes that the fees imposed on the user by 
 72.32  the local government unit do not conform to the requirements of 
 72.33  subdivision 6, may have the denial, revocation, or fee 
 72.34  imposition reviewed, upon written request, by the governing body 
 72.35  of the local government unit.  The governing body of the local 
 72.36  government unit shall act on a timely written request at its 
 73.1   next regularly scheduled meeting.  A decision by the governing 
 73.2   body affirming the denial, revocation, or fee imposition must be 
 73.3   in writing and supported by written findings establishing the 
 73.4   reasonableness of the decision. 
 73.5      (b) Upon affirmation by the governing body of the denial, 
 73.6   revocation, or fee imposition, the telecommunications 
 73.7   right-of-way user is entitled to have the matter resolved by 
 73.8   binding arbitration.  Binding arbitration must be before an 
 73.9   arbitrator agreed to by both the local government unit and the 
 73.10  telecommunications right-of-way user.  If the parties cannot 
 73.11  agree on an arbitrator, the matter must be resolved by a 
 73.12  three-person arbitration panel made up of one arbitrator 
 73.13  selected by the local government unit, one arbitrator selected 
 73.14  by the telecommunications right-of-way user, and one person 
 73.15  selected by the other two arbitrators.  The costs and fees of a 
 73.16  single arbitrator must be borne equally by the local government 
 73.17  unit and the telecommunications right-of-way user.  If a third 
 73.18  arbitrator is selected, each party shall bear the expense of its 
 73.19  own arbitrator and shall jointly and equally bear with the other 
 73.20  party the expense of the third arbitrator and of the arbitration.
 73.21  Each party to the arbitration shall pay its own costs, 
 73.22  disbursements, and attorney fees. 
 73.23     Subd. 6.  [FEES.] (a) A local government unit may recover 
 73.24  its right-of-way management costs by imposing a fee for 
 73.25  registration, a fee for each right-of-way permit, or, when 
 73.26  appropriate, a fee applicable to a particular telecommunications 
 73.27  right-of-way user when that user causes the local government 
 73.28  unit to incur costs as a result of actions or inactions of that 
 73.29  user.  A local government unit may not recover from a 
 73.30  telecommunications right-of-way user costs caused by another 
 73.31  entity's activity in the right-of-way. 
 73.32     (b) Fees, or other right-of-way obligations, imposed by a 
 73.33  local government unit on telecommunications right-of-way users 
 73.34  under this section must be: 
 73.35     (1) based on the actual costs incurred by the local 
 73.36  government unit in managing the public right-of-way; 
 74.1      (2) based on an allocation among all users of the public 
 74.2   right-of-way, including the local government unit itself, which 
 74.3   shall reflect the proportionate costs imposed on the local 
 74.4   government unit by each of the various types of uses of the 
 74.5   public rights-of-way; 
 74.6      (3) imposed on a competitively neutral basis; and 
 74.7      (4) imposed in a manner so that aboveground uses of public 
 74.8   rights-of-way do not bear costs incurred by the local government 
 74.9   unit to regulate underground uses of public rights-of-way. 
 74.10     Subd. 7.  [RIGHTS AND RESPONSIBILITIES, GENERALLY; 
 74.11  FRANCHISES.] The rights, duties, and obligations regarding the 
 74.12  use of the public right-of-way imposed under this section must 
 74.13  be applied to all users of the public right-of-way, including 
 74.14  the local government unit while recognizing regulation must 
 74.15  reflect the distinct engineering, construction, operation, 
 74.16  maintenance, public and worker safety requirements, and 
 74.17  standards applicable to various users of the public 
 74.18  rights-of-way.  For users subject to the franchising authority 
 74.19  of a local government unit, to the extent those rights, duties, 
 74.20  and obligations are addressed in the terms of an applicable 
 74.21  franchise agreement, the terms of the franchise prevail over any 
 74.22  conflicting provision in an ordinance. 
 74.23     Subd. 8.  [LIMITATIONS ON LOCAL GOVERNMENT UNITS.] In 
 74.24  managing the public rights-of-way and in imposing fees under 
 74.25  this section, no local government unit may: 
 74.26     (1) unlawfully discriminate among telecommunications 
 74.27  right-of-way users; 
 74.28     (2) grant a preference to any telecommunications 
 74.29  right-of-way user; 
 74.30     (3) create or erect any unreasonable requirement for entry 
 74.31  to the public rights-of-way by telecommunications right-of-way 
 74.32  users; or 
 74.33     (4) require a telecommunications right-of-way user to 
 74.34  obtain a franchise or pay for the use of the right-of-way. 
 74.35     Subd. 9.  [PREVIOUSLY ISSUED PERMITS.] A telecommunications 
 74.36  right-of-way user need not apply for or obtain right-of-way 
 75.1   permits for facilities that are located in public rights-of-way 
 75.2   on May 10, 1997, for which the user has obtained the required 
 75.3   consent of the local government unit, or that are otherwise 
 75.4   lawfully occupying the public right-of-way.  However, the 
 75.5   telecommunications right-of-way user may be required to register 
 75.6   and to obtain a right-of-way permit for an excavation or 
 75.7   obstruction of existing facilities within the public 
 75.8   right-of-way after May 10, 1997. 
 75.9      Subd. 10.  [DATA CLASSIFICATION.] Data and documents 
 75.10  exchanged between a local government unit and a 
 75.11  telecommunications right-of-way user are subject to the terms of 
 75.12  chapter 13.  A local government unit not complying with this 
 75.13  subdivision is subject to the penalties set forth in section 
 75.14  13.08. 
 75.15     Subd. 11.  [IN-KIND SERVICES.] A local government unit may 
 75.16  not collect a fee imposed under this section through the 
 75.17  provision of in-kind services by a telecommunications 
 75.18  right-of-way user, nor may a local government unit require the 
 75.19  provision of in-kind services as a condition of consent to use 
 75.20  the local government unit's public right-of-way. 
 75.21     Subd. 12.  [UNIFORM STATEWIDE CONSTRUCTION STANDARDS.] (a) 
 75.22  To ensure the safe and convenient use of public rights-of-way in 
 75.23  the state, the commission shall develop and adopt statewide 
 75.24  construction standards for the purposes of achieving substantial 
 75.25  statewide uniformity in construction standards where 
 75.26  appropriate, providing competitive neutrality among 
 75.27  telecommunications right-of-way users and permitting efficient 
 75.28  use of technology.  The standards must govern: 
 75.29     (1) the terms and conditions of right-of-way construction, 
 75.30  excavation, maintenance, and repair; and 
 75.31     (2) the terms and conditions under which telecommunications 
 75.32  facilities and equipment are placed in the public right-of-way. 
 75.33     (b) The public utilities commission is authorized to 
 75.34  review, upon complaint by an aggrieved telecommunications 
 75.35  right-of-way user, a decision or regulation by a local 
 75.36  government unit that is alleged to violate a statewide standard. 
 76.1      (c) A local unit of government may not adopt an ordinance 
 76.2   or other regulation that conflicts with a standard adopted by 
 76.3   the commission for the purposes described in paragraph (a). 
 76.4      Sec. 3.  [237A.55] [SCOPE.] 
 76.5      To the extent they regulate telecommunications right-of-way 
 76.6   users, sections 237A.53 and 237A.54 supersede sections 222.37, 
 76.7   300.03, and 300.04, and any ordinance, regulation, or rule to 
 76.8   the contrary. 
 76.9      Sec. 4.  [237A.56] [WIRE CROSSING OR PARALLELING UTILITY 
 76.10  LINE; RULES.] 
 76.11     (a) The department shall determine and adopt reasonable 
 76.12  rules covering the maintenance, operation, nature, location, and 
 76.13  construction where telecommunication, electric light, power, or 
 76.14  other electric wires of any kind, or any natural gas pipelines, 
 76.15  cross or approximately parallel the lines of any railroad, 
 76.16  interurban railway, or other similar public service 
 76.17  corporation.  To this end, the department shall adopt general 
 76.18  rules covering each class of construction, maintenance, and 
 76.19  operation of any electric wire or natural gas pipeline crossing 
 76.20  or paralleling the railroad, railway, or similar public service 
 76.21  corporation, under the various conditions existing.  The 
 76.22  department, upon the complaint of any person, railroad, 
 76.23  interurban railway, municipal utility, cooperative electric 
 76.24  association, or other public utility claiming to be injured or 
 76.25  subjected to hazard by crossing or paralleling lines constructed 
 76.26  or about to be constructed, shall, after a hearing, make an 
 76.27  order and prescribe terms and conditions for constructing, 
 76.28  maintaining, and operating the lines in question as may be just 
 76.29  and reasonable. 
 76.30     (b) The department may, upon request of a municipal 
 76.31  utility, electric cooperative association, or public utility, 
 76.32  determine the just and reasonable charge that a railroad, or 
 76.33  owner of an abandoned railroad right-of-way, can prescribe for a 
 76.34  new or existing crossing of a railroad right-of-way by an 
 76.35  electric or gas line, based on the diminution in value caused by 
 76.36  the crossing of the right-of-way by the electric or gas line.  
 77.1   This section does not eliminate the right of a public utility, 
 77.2   municipal utility, or electric cooperative association to have 
 77.3   any of these issues determined pursuant to an eminent domain 
 77.4   proceeding commenced under chapter 117.  Unless the railroad, or 
 77.5   owner of an abandoned railroad right-of-way, asserts in writing 
 77.6   that the proposed crossing is a serious threat to the safe 
 77.7   operations of the railroad or to the current use of the railroad 
 77.8   right-of-way, a crossing can be constructed following filing of 
 77.9   the requested action with the department, pending review of the 
 77.10  requested action by the department. 
 77.11     (c) The department shall assess the cost of reviewing the 
 77.12  requested action and determining a just and reasonable charge, 
 77.13  equally among the parties. 
 77.14     (d) The department shall enforce this section and, for that 
 77.15  purpose, may cause the removal or reconstruction of the 
 77.16  telephone, telegraph, electric light, power, or other electric 
 77.17  wires crossing or paralleling such other lines and not in 
 77.18  accordance with the orders and rules issued by the department. 
 77.19                             ARTICLE 7 
 77.20                               CABLE 
 77.21     Section 1.  [237A.71] [DEFINITIONS.] 
 77.22     Subdivision 1.  [SCOPE.] The terms used in sections 237A.71 
 77.23  to 237A.94 have the meanings given them in this section. 
 77.24     Subd. 2.  [ACCESS.] "Access" means entrance onto the 
 77.25  premises of the property owner and an easement for purposes of 
 77.26  surveying, designing, installing, inspecting, maintaining, 
 77.27  operating, repairing, replacing, or removing equipment used in 
 77.28  the provision of telecommunications or cable services. [238.22, 
 77.29  subd. 6] 
 77.30     Subd. 3.  [BASIC CABLE SERVICE.] "Basic cable service" 
 77.31  means any cable service tier that includes the lawful 
 77.32  retransmission of local television broadcast signals and any 
 77.33  public, educational, and governmental access programming 
 77.34  required under a franchise to be carried on the basic tier.  
 77.35  [New] 
 77.36     Subd. 4.  [CABLE SERVICE PROVIDER.] "Cable service provider"
 78.1   means any person who provides cable services pursuant to a 
 78.2   franchise.  [New] 
 78.3      Subd. 5.  [CONDUIT SYSTEM.] Conduit system means a 
 78.4   reinforced passage or opening in, on, under, or through the 
 78.5   ground capable of containing communications facilities and 
 78.6   includes the following:  main conduit; underground dips and 
 78.7   short sections of conduit under roadways, driveways, parking 
 78.8   lots, and similar conduit installations; laterals to poles and 
 78.9   into buildings; ducts; and manholes. [238.36, subd. 3] 
 78.10     Subd. 6.  [DWELLING UNIT.] "Dwelling unit" means a single 
 78.11  unit providing complete, independent, living facilities for one 
 78.12  or more persons, including permanent provisions for living, 
 78.13  sleeping, eating, cooking, and sanitation.  [238.22, subd. 2] 
 78.14     Subd. 7.  [FRANCHISE.] "Franchise" means the rights and 
 78.15  obligations extended by the commission, or a local government 
 78.16  unit prior to the effective date of this chapter, to a person to 
 78.17  provide cable service within a franchise area. [New] 
 78.18     Subd. 8.  [FRANCHISE AREA.] "Franchise area" means the area 
 78.19  within the corporate boundaries of a local government unit as 
 78.20  now constituted or may in the future be constituted. [New] 
 78.21     Subd. 9.  [FRANCHISE FEE.] "Franchise fee" means any fee or 
 78.22  assessment of any kind imposed by the state or a local 
 78.23  government unit on a cable service provider or subscriber, which 
 78.24  is not applicable to telecommunications service providers or 
 78.25  other utility service providers.  Franchise fee does not include 
 78.26  (1) any tax, fee, or assessment of general applicability, 
 78.27  including any tax, fee, or assessment imposed on both 
 78.28  telecommunications service providers, utilities, and cable 
 78.29  operators or their services but not including a tax, fee, or 
 78.30  assessment that is unduly discriminatory against cable operators 
 78.31  or subscribers, (2) capital costs that are required by a 
 78.32  franchise to be incurred by a cable service provider for public, 
 78.33  educational, and governmental access facilities, (3) 
 78.34  requirements or charges incidental to the award or enforcement 
 78.35  of a franchise, including payments for bonds, security funds, 
 78.36  letters of credit, insurance, indemnification, penalties, or 
 79.1   liquidated damages, or (4) any fee imposed under United States 
 79.2   Code, title 17.  [New] 
 79.3      Subd. 10.  [GROSS CABLE SERVICE REVENUE.] "Gross cable 
 79.4   service revenue" means any revenue derived directly or 
 79.5   indirectly by a cable service provider including, but not 
 79.6   limited to, basic cable service, cable programming service tier, 
 79.7   premium cable services, pay-per-view cable services, 
 79.8   installation and reconnection fees, franchise fees, leased 
 79.9   channel fees, converter rentals, and advertising revenues within 
 79.10  a franchise area.  The term does not include any revenue derived 
 79.11  from the delivery of telecommunication services, or taxes on 
 79.12  services furnished by cable service provider and imposed 
 79.13  directly upon any subscriber or user by federal, state, or local 
 79.14  law and collected by cable service provider on behalf of that 
 79.15  governmental unit. [238.02, subd. 6] 
 79.16     Subd. 11.  [MULTIPLE DWELLING COMPLEX.] "Multiple dwelling 
 79.17  complex" means a site, lot, field, or tract of land or water, 
 79.18  other than a common interest community or mobile home park, 
 79.19  whether occupied or under construction, containing more than 
 79.20  four dwelling units. [238.22, subd. 3] 
 79.21     Subd. 12.  [PUBLIC, EDUCATIONAL, AND GOVERNMENT 
 79.22  ACCESS.] "Public, educational, and government access" refers to 
 79.23  the channel capacity designated for noncommercial public, 
 79.24  educational, or governmental use and facilities and the 
 79.25  equipment necessary for the use of that channel capacity. [New] 
 79.26     Subd. 13.  [PUBLIC UTILITY COMPANY POLES.] "Public utility 
 79.27  company poles" means poles owned by the public utility and poles 
 79.28  owned by others on which the public utility has the right to 
 79.29  permit others to attach in the communications space on the pole. 
 79.30  [238.36, subd. 4] 
 79.31     Subd. 14.  [STANDARD INSTALLATION.] "Standard installation" 
 79.32  means any residential installation that can be completed using a 
 79.33  drop of 150 feet or less. [New] 
 79.34     Subd. 15.  [SUBSCRIBER.] "Subscriber" means any person 
 79.35  lawfully subscribing to a cable service provided by the cable 
 79.36  service provider. [New] 
 80.1      Sec. 2.  [237A.72] [STATE IS CABLE FRANCHISOR; TRANSITION.] 
 80.2      Subdivision 1.  [STATE AUTHORITY.] The state is the 
 80.3   franchisor for all cable franchises granted in the state and is 
 80.4   substituted as the government-party franchisor in all existing 
 80.5   cable franchises between a city or consortium of cities and a 
 80.6   cable system operator. 
 80.7      Subd. 2.  [RULES; NEGOTIATION.] The public utilities 
 80.8   commission shall adopt rules providing for the terms of cable 
 80.9   franchises to be effective January 1, 2003.  The department 
 80.10  shall negotiate with existing franchisees to conform their 
 80.11  franchise agreements to the uniform state rules.  If the 
 80.12  negotiations are not successful, the franchise agreement may 
 80.13  continue according to its terms, for the shortest period 
 80.14  required under the agreement.  All cable franchises entered into 
 80.15  after January 1, 2003, must comply with the rules.  The 
 80.16  commissioner of administration is responsible for negotiating 
 80.17  and agreeing to new cable franchises under the rules. [New] 
 80.18     Sec. 3.  [237A.73] [AUTHORITY TO GRANT AND ENFORCE 
 80.19  FRANCHISES.] 
 80.20     Subdivision 1.  [COMMISSION FRANCHISING AUTHORITY.] (a) The 
 80.21  commission has the exclusive authority to grant nonexclusive 
 80.22  franchises to persons to provide cable service within one or 
 80.23  more franchise areas in Minnesota. 
 80.24     (b) It is unlawful for any person to provide cable service 
 80.25  in a franchise area without a franchise. 
 80.26     (c) The commission shall not grant a franchise to any 
 80.27  person on terms that, when the obligations and benefits of the 
 80.28  franchises as a whole are compared, is more favorable or less 
 80.29  burdensome than a franchise previously granted to a person 
 80.30  within that franchise area. 
 80.31     (d) The commission shall not grant a franchise for a term 
 80.32  longer than 15 years. 
 80.33     Subd. 2.  [PREVIOUS FRANCHISES.] Upon acceptance by a cable 
 80.34  service provider of a franchise granted by the commission, the 
 80.35  new franchise supersedes and replaces all previous ordinances, 
 80.36  amendments, or agreements granting a franchise to a cable 
 81.1   service provider or any predecessor cable operator. 
 81.2      Subd. 3.  [FRANCHISE AREA.] A cable service provider shall 
 81.3   provide cable service to the entire franchise area designated by 
 81.4   the commission in a franchise. 
 81.5      Subd. 4.  [ENFORCEMENT.] The commission has the 
 81.6   jurisdiction to enforce franchises and sections 297A.71 to 
 81.7   297A.94, but may delegate its enforcement authority to a local 
 81.8   government unit unless the local government unit provides cable 
 81.9   services through its own facilities.  
 81.10     Sec. 4.  [237A.74] [RATES REGULATION.] 
 81.11     Subdivision 1.  [AUTHORITY.] The commission may regulate 
 81.12  rates for the provision of cable service and related equipment 
 81.13  to the extent allowed under federal or state law. 
 81.14     Subd. 2.  [RATES ON FILE.] A list of current subscriber 
 81.15  rates and charges must be on file with the commission and the 
 81.16  local government unit at all times. 
 81.17     Sec. 5.  [237A.75] [CUSTOMER SERVICE OBLIGATIONS.] 
 81.18     Subdivision 1.  [SPECIAL TESTS.] The department or a local 
 81.19  government unit delegated authority to enforce franchises by the 
 81.20  commission may require special technical or operational testing 
 81.21  of a location within a franchise area and may otherwise 
 81.22  investigate and enforce allegations of noncompliance with the 
 81.23  franchise or this chapter.  These allegations must be made the 
 81.24  subject of a formal complaint before the commission.  Any 
 81.25  investigation is limited to gathering evidence relevant to the 
 81.26  specific allegations in a formal complaint before the commission.
 81.27     Subd. 2.  [ENFORCING MINIMUM CUSTOMER SERVICE 
 81.28  STANDARDS.] The commission, upon complaint by the department, a 
 81.29  local government unit delegated authority to enforce cable 
 81.30  franchises, or the attorney general, may enforce any minimum 
 81.31  customer service standards promulgated by the Federal 
 81.32  Communications Commission. 
 81.33     Subd. 3.  [CHANGE NOTICE.] A cable service provider shall 
 81.34  notify the commission and subscribers in writing of any changes 
 81.35  in rates, programming services, or channel positions 30 days 
 81.36  prior to the changes becoming effective. 
 82.1      Sec. 6.  [237A.76] [EMERGENCY ALERT.] 
 82.2      Cable service providers shall provide emergency alert 
 82.3   override capabilities for use in the event of an emergency or if 
 82.4   other vital public information must be communicated by federal, 
 82.5   state, or local governments.  A cable service provider shall 
 82.6   provide emergency alert override capabilities in a manner 
 82.7   consistent with the Federal Communications Commission's 
 82.8   emergency alert system (EAS) rules and consistent with any 
 82.9   applicable state and regional EAS plans adopted in response to 
 82.10  those rules. 
 82.11     Sec. 7.  [237A.79] [REGIONAL CHANNEL.] 
 82.12     Subdivision 1.  [DEFINITION.] For the purposes of this 
 82.13  section "regional channel entity" means an independent, 
 82.14  nonprofit corporation to govern the operation of the regional 
 82.15  channel. 
 82.16     Subd. 2.  [LEGISLATIVE PURPOSE.] The purpose of this 
 82.17  section is to facilitate the activation of a metropolitan area 
 82.18  interconnected regional channel, to be uniformly carried on VHF 
 82.19  channel 6 on cable communications systems operating in the 
 82.20  metropolitan area in order to provide a broad range of 
 82.21  informational, educational, and public service programs and 
 82.22  materials to metropolitan area cable subscribers. 
 82.23     Subd. 3.  [VHF CHANNEL 6.] Franchises for cable services 
 82.24  operating wholly or partially within the metropolitan area must 
 82.25  contain a provision designating the standard VHF channel 6 for 
 82.26  uniform regional channel usage.  The designated regional channel 
 82.27  may be combined with the government access channel until the 
 82.28  video programming usage of the government access channel expands 
 82.29  to such point as it is in use during 80 percent of the time 
 82.30  between 8:00 a.m. and 10:00 p.m. during any consecutive six-week 
 82.31  period.  Use of time on the regional channel must be made 
 82.32  available without charge. 
 82.33     Subd. 4.  [USE.] The regional channel will provide a broad 
 82.34  range of informational, educational, and public service programs 
 82.35  and materials to metropolitan area cable service subscribers. 
 82.36     Subd. 5.  [REGIONAL CHANNEL ENTITY; MEMBERS.] The 
 83.1   metropolitan council shall appoint the governing body of the 
 83.2   regional channel entity, which must consist of 15 members 
 83.3   appointed to staggered, three-year terms.  In the case of a 
 83.4   vacancy the council shall appoint a person to fill the vacancy 
 83.5   for the remainder of the unexpired term.  The metropolitan 
 83.6   council shall name three appointees from the recommendations 
 83.7   received from the association of metropolitan municipalities and 
 83.8   three from the recommendations received from the cable service 
 83.9   providers operating in the metropolitan area. 
 83.10     Subd. 6.  [REGIONAL CHANNEL OPERATOR.] The regional channel 
 83.11  entity may operate the regional channel or designate the 
 83.12  operator of the regional channel.  If the regional channel 
 83.13  entity designates the operator of the regional channel, the 
 83.14  designation must be for an initial period not exceeding three 
 83.15  years.  Before the expiration of the three-year period, the 
 83.16  regional channel entity shall review its designation and 
 83.17  consider renewal for a term not exceeding three years.  Nothing 
 83.18  in this section creates any right to renewal for the operator 
 83.19  designated by the regional channel entity.  [238.43] 
 83.20     Sec. 8.  [237A.80] [PUBLIC, EDUCATIONAL, AND GOVERNMENT 
 83.21  ACCESS.] 
 83.22     Subdivision 1.  [MINNESOTA PEG CHANNELS.] A cable service 
 83.23  provider shall make at least one public, educational, and 
 83.24  government (PEG) access channel available in its basic service 
 83.25  offering to subscribers.  Additional public, educational, and 
 83.26  government access channels may be required by the commission as 
 83.27  part of a franchise in certain communities based on a showing of 
 83.28  community need. 
 83.29     Subd. 2.  [VHF SPECTRUM.] Required access channels must be 
 83.30  transmitted on the VHF spectrum. 
 83.31     Subd. 3.  [LEASED ACCESS.] A cable service provider shall 
 83.32  offer leased commercial access programming to the public on 
 83.33  reasonable terms and conditions in accordance with federal law. 
 83.34     Sec. 9.  [237A.81] [FRANCHISE FEE.] 
 83.35     Subdivision 1.  [FRANCHISE FEE PAID.] A cable service 
 83.36  provider shall pay to the local governing authority of the 
 84.1   franchise area a franchise fee equal to five percent of its 
 84.2   gross cable service revenue, monthly, within 30 days of the end 
 84.3   of each calendar month. 
 84.4      Subd. 2.  [OVERDUE PAYMENTS.] Cable service providers shall 
 84.5   pay interest on overdue franchise fee payments, and on payments 
 84.6   to correct underpayment of franchise fees, in addition to the 
 84.7   compensation due at an annual rate equal to the prime lending 
 84.8   rate plus 1-1/2 percent computed from the due date until the 
 84.9   date of payment.  
 84.10     Subd. 3.  [AUDIT.] The local government unit has the 
 84.11  exclusive authority to audit a franchisee's accounting and 
 84.12  financial records, upon reasonable notice, to verify that 
 84.13  franchise fee payments have been made in accordance with this 
 84.14  chapter. 
 84.15     Sec. 10.  [237A.82] [REPORTING REQUIREMENTS.] Every cable 
 84.16  service provider subject to sections 297A.71 to 297A.94 shall 
 84.17  make reports to the department as the department shall from time 
 84.18  to time require.  All books, records, and files of the cable 
 84.19  service provider are subject at all times to inspection by the 
 84.20  department. 
 84.21     Sec. 11.  [237A.83] [FRANCHISE OR STATUTORY VIOLATIONS.] 
 84.22     Subdivision 1.  [DEPARTMENT INVESTIGATION.] The department 
 84.23  or a local government unit with enforcement authority delegated 
 84.24  from the commission shall investigate any claimed violation of a 
 84.25  franchise.  The department or a local government unit with 
 84.26  enforcement authority delegated from the commission may petition 
 84.27  the commission for an enforcement order and penalties in 
 84.28  accordance with law. 
 84.29     Subd. 2.  [FRANCHISE REVOCATION.] If the commission 
 84.30  determines after a public hearing, that a cable service provider 
 84.31  is in default of any material provision of this franchise, or 
 84.32  has attempted to evade any of the material provisions of this 
 84.33  franchise, or has practiced fraud or deceit upon a subscriber, 
 84.34  the commission may revoke the franchise or order any other 
 84.35  relief it deems appropriate to remedy the violation.  The 
 84.36  department or a local government unit with enforcement authority 
 85.1   delegated from the commission may require special technical or 
 85.2   operational testing of a location within a franchise area and 
 85.3   may otherwise investigate and enforce allegations of 
 85.4   noncompliance with the franchise or this chapter.  These 
 85.5   allegations must be made the subject of a formal complaint 
 85.6   before the commission.  Any investigations are limited to 
 85.7   gathering evidence relevant to the specific allegations in a 
 85.8   formal complaint before the commission. 
 85.9      Sec. 12.  [237A.84] [MERGERS AND ACQUISITIONS.] 
 85.10     Subdivision 1.  [PRIOR COMMISSION APPROVAL.] No person may 
 85.11  purchase, acquire, or assume control of (1) a franchise, (2) 
 85.12  facilities for the provision of cable service, (3) capital 
 85.13  stock, bonds, securities, or other obligations, or (4) the 
 85.14  rights, privileges, and immunities of any cable service provider 
 85.15  granted by the commission, without receiving the prior consent 
 85.16  of the commission. 
 85.17     Subd. 2.  [JOINT PETITION.] The transferor and transferee 
 85.18  of any property or other rights described in subdivision 1 shall 
 85.19  both join in the application filed with the commission for the 
 85.20  approval of the purchase, acquisition, or assumption of control. 
 85.21     Subd. 3.  [CUSTOMER NOTICE.] At least 90 days prior to 
 85.22  applying to the commission for consent to a proposed sale, 
 85.23  acquisition, or change of control of any property described in 
 85.24  subdivision 1, the transferor must provide notice to its 
 85.25  affected customers of its intent to sell, identify the name of 
 85.26  the proposed buyer, and provide the customer with the date, 
 85.27  time, and place of the public hearings to be held relating to 
 85.28  the transfer.  The notice must be included as a separate 
 85.29  document from the customer's monthly bill, but may be delivered 
 85.30  to the customer under the same cover as a monthly bill.  
 85.31     Subd. 4.  [PUBLIC HEARING.] Prior to making its decision on 
 85.32  whether to approve or reject a transfer, the commission must 
 85.33  hold a public hearing allowing the public an opportunity to be 
 85.34  heard and to present any concerns or comments regarding the 
 85.35  transfer. 
 85.36     Subd. 5.  [CONSIDERATIONS FOR DETERMINING APPROVAL.] (a) 
 86.1   The commission may not give consent to a transfer unless it 
 86.2   finds that the transaction is not likely to result in harm to 
 86.3   consumers affected by the transfer.  In determining whether no 
 86.4   harm is likely to result from a transfer, the commission shall 
 86.5   determine on a preponderance of the evidence on the record, that 
 86.6   the potential benefits to consumers that are likely to be 
 86.7   realized by the consummation of the transfer outweigh the risks 
 86.8   to consumers created by the transfer. 
 86.9      (b) In weighing the benefits and the detriments the 
 86.10  commission shall consider (1) the impact of the transfer on 
 86.11  competition in the franchise area for cable services, and (2) 
 86.12  the extent to which the transferee lacks the financial or 
 86.13  managerial qualifications to perform its obligations under this 
 86.14  chapter or the franchise, or that the proposed transferee is not 
 86.15  willing or able to meet the current or future cable service 
 86.16  needs of the community. 
 86.17     Subd. 6.  [DEADLINE FOR DECISION; EXTENSION.] (a) The 
 86.18  commission has 120 days to act upon any petition for approval of 
 86.19  a transfer. 
 86.20     (b) If a cable service provider fails to provide the 
 86.21  department or the attorney general with all information 
 86.22  necessary for it to conduct an adequate investigation as to 
 86.23  whether the proposed transfer should be approved or rejected, 
 86.24  the commission may extend the 120-day review period until all 
 86.25  information has been provided at the request of the department 
 86.26  or the attorney general.  If the commission fails to render a 
 86.27  final decision on the request within the 120-day time period, 
 86.28  the request is deemed granted. [New] 
 86.29     Sec. 13.  [237A.85] [FRANCHISE RENEWAL.] 
 86.30     All franchise renewal proceedings must be conducted in 
 86.31  accordance with federal law. 
 86.32     Sec. 14.  [237A.86] [AMENDMENT OF FRANCHISE.] 
 86.33     The commission may amend a franchise upon the petition of 
 86.34  the department, the attorney general, a local governing 
 86.35  authority, or the cable service provider holding the franchise 
 86.36  and upon a determination by the commission that the amendment 
 87.1   will be in the public interest or is required due to changes in 
 87.2   federal or state law.  
 87.3      Sec. 15.  [237A.87] [REQUIRED CONTENTS OF FRANCHISE.] 
 87.4      Every franchise granted by the commission must contain 
 87.5   provisions addressing the following issues: 
 87.6      (1) a provision regarding any required specifications of a 
 87.7   cable system that are necessary to meet the cable service needs 
 87.8   of subscribers within a franchise area; 
 87.9      (2) a provision addressing the schedule for any cable 
 87.10  system upgrades or rebuilds required by the commission under a 
 87.11  franchise; 
 87.12     (3) a provision setting forth the number of additional 
 87.13  public, educational, and government access channels, facilities, 
 87.14  and financing arrangements for the channel capacity and 
 87.15  facilities; and 
 87.16     (4) provisions relating to the management of public 
 87.17  rights-of-way by local government units, if not already provided 
 87.18  under state or local law. 
 87.19     Sec. 16.  [237A.88] [OTHER FRANCHISE TERMS AND CONDITIONS 
 87.20  PERMITTED.] 
 87.21     A franchise may contain additional terms and conditions as 
 87.22  the commission deems appropriate. 
 87.23     Sec. 17.  [237A.89] [ACCESS REQUIRED.] 
 87.24     Subdivision 1.  [PROVISION OF ACCESS.] A property owner or 
 87.25  other person controlling access shall provide any video 
 87.26  programming or telecommunications service provider access to the 
 87.27  property owner's multiple dwelling complex.  The access provided 
 87.28  must be perpetual and freely transferable by one video 
 87.29  programming or telecommunications service provider to another.  
 87.30  A video or telecommunications service provider granted access, 
 87.31  and its successors in interest, must fully comply with sections 
 87.32  237A.71 to 237A.94.  
 87.33     Subd. 2.  [RESIDENT'S RIGHTS.] The intent of sections 
 87.34  237A.71 to 237A.94 is to give residents the freedom to choose 
 87.35  among competing video programming or telecommunications service 
 87.36  providers.  No provision of sections 237A.71 to 237A.94 may be 
 88.1   interpreted to require residents to hook up or subscribe to any 
 88.2   services offered by any video programming or telecommunications 
 88.3   service provider. 
 88.4      Sec. 18.  [237A.90] [CONDITION FOR ACCESS.] 
 88.5      Subdivision 1.  [IN GENERAL.] An installation of facilities 
 88.6   for providing video programming or telecommunications services 
 88.7   under sections 237A.71 to 237A.94 must conform to reasonable 
 88.8   conditions necessary to protect the safety, functioning, and 
 88.9   aesthetic appearance of the premises, and the convenience and 
 88.10  well-being of the property owner and residents. 
 88.11     Subd. 2.  [OWNER APPROVAL.] A property owner may require 
 88.12  from a video programming or telecommunications service provider 
 88.13  before installation or modification of facilities for providing 
 88.14  the service, diagrams showing plans for the placement and 
 88.15  securing of the facilities.  A property owner may approve or 
 88.16  disapprove installation plans.  Approval of plans must not be 
 88.17  unreasonably withheld. 
 88.18     Subd. 3.  [RELOCATION.] A property owner may require a 
 88.19  video programming or telecommunications service provider, after 
 88.20  reasonable written notice, to promptly relocate facilities on or 
 88.21  within the premises of the property owner for the purpose of 
 88.22  rehabilitation, redecoration, or necessary maintenance of the 
 88.23  premises by the property owner. 
 88.24     Subd. 4.  [COMPENSATION FOR ACCESS.] A video programming or 
 88.25  telecommunications service provider shall compensate the 
 88.26  property owner for the diminution in fair market value of the 
 88.27  premises resulting directly from the installation of the 
 88.28  facilities. 
 88.29     Sec. 19.  [237A.91] [USE OF EXISTING UTILITY EASEMENT; 
 88.30  RESTRICTIONS.] 
 88.31     Subdivision 1.  [UTILITY EASEMENT DEFINED.] For purposes of 
 88.32  this section, "utility easement" includes all utility easements 
 88.33  or general purpose easements dedicated on a recorded plat to the 
 88.34  public or to the state or to any political subdivision of the 
 88.35  state; all deeded easements to the public or to the state or to 
 88.36  any political subdivision of the state that are for general or 
 89.1   utility purposes; all easements acquired by condemnation or 
 89.2   prescription by the state or any political subdivision of the 
 89.3   state that are for general or utility purposes; and all 
 89.4   easements in favor of any public service corporation for 
 89.5   telecommunications or electric transmission purposes. [238.35, 
 89.6   subd. 2] 
 89.7      Subd. 2.  [AUTHORITY TO USE EXISTING UTILITY EASEMENT.] The 
 89.8   state or any local government unit, individual, or entity, 
 89.9   however organized, that is licensed, franchised, or authorized 
 89.10  to establish and provide cable services may utilize any existing 
 89.11  utility easement in accordance with this section to install, 
 89.12  maintain, and remove equipment and facilities without the 
 89.13  payment of additional compensation to the owners or occupants of 
 89.14  the real estate subject to the easement, other than the owner of 
 89.15  the utility easement or its successors or assigns.  [238.35, 
 89.16  subd. 3] 
 89.17     Subd. 3.  [RESTRICTIONS ON USE.] (a) As a condition of 
 89.18  using any utility easement, a cable services provider is subject 
 89.19  to any burdens, duties, or obligations specified in the easement 
 89.20  of the grantee of the easement. 
 89.21     (b) A cable services provider shall restore the real 
 89.22  estate, and any landscaping on or improvements to it, to the 
 89.23  condition they were in prior to entry within 30 days of 
 89.24  completing the installation of, and making changes to, the 
 89.25  facilities for providing cable services upon that real estate.  
 89.26  Restoration that cannot be completed during the winter months 
 89.27  must be accomplished as promptly as weather conditions permit. 
 89.28  [238.35, subd. 4] 
 89.29     Sec. 20.  [237A.92] [PERMIT TO ATTACH TO POLE OR CONDUIT 
 89.30  SYSTEM.] 
 89.31     Every pole, duct, and conduit agreement must contain a 
 89.32  provision that before attaching to the public utility company's 
 89.33  poles or occupying any part of the public utility's conduit 
 89.34  system, the cable service provider shall apply and receive a 
 89.35  permit for that purpose on a form provided by the public utility 
 89.36  company.  If the cable service provider accepts the permit, it 
 90.1   may attach its equipment to the poles covered by the permit or 
 90.2   occupy the conduit system of the public utility to the extent 
 90.3   authorized by the permit, subject to sections 237A.93 and 
 90.4   237A.94 and the terms of the agreement between the contracting 
 90.5   parties.  In granting or denying a permit, the public utility 
 90.6   has the right to determine whether a grant of a permit would 
 90.7   adversely affect its public services, duties, and obligations or 
 90.8   have an adverse effect on the economy, safety, and future needs 
 90.9   of the public utility.  [238.38] 
 90.10     Sec. 21.  [237A.93] [LIABILITY; INDEMNIFY PUBLIC UTILITY.] 
 90.11     Subdivision 1.  [PROVISION IN AGREEMENT.] Every pole, duct, 
 90.12  and conduit agreement must contain a provision that the cable 
 90.13  service provider shall defend, indemnify, protect, and save 
 90.14  harmless the public utility from and against any and all claims 
 90.15  and demands for damages to property and injury or death to 
 90.16  persons, including payments made under any worker's compensation 
 90.17  law or under any plan for employees' disability and death 
 90.18  benefits, which may arise out of or be caused by (1) the 
 90.19  erection, maintenance, presence, use, or removal of the cable 
 90.20  service provider's cable, equipment, and facilities, (2) the 
 90.21  proximity of the cables, equipment, and facilities of the 
 90.22  parties to the agreement, or (3) any act of the cable service 
 90.23  provider on or in the vicinity of the public utility company's 
 90.24  poles and conduit system, in the performance of the agreement.  
 90.25     Subd. 2.  [ADDITIONAL PROTECTION FROM CLAIMS AND 
 90.26  DEMANDS.] The cable service provider shall also indemnify, 
 90.27  protect, and save harmless the public utility from and against 
 90.28  any and all claims and demands: 
 90.29     (1) that arise directly or indirectly from the operation of 
 90.30  the cable service provider's facilities including taxes and 
 90.31  special charges by others; 
 90.32     (2) for damages or loss for infringement of copyright, for 
 90.33  libel and slander, for unauthorized use of television broadcast 
 90.34  programs, and for unauthorized use of other program material; 
 90.35  and 
 90.36     (3) for infringement of patents with respect to the 
 91.1   manufacture, use, and operation of the cable communications 
 91.2   equipment in combination with the public utility company's 
 91.3   poles, conduit system, or otherwise. 
 91.4      Subd. 3.  [LIABILITY FOR NEGLIGENCE.] Nothing contained in 
 91.5   this section relieves the public utility company from liability 
 91.6   for the negligence of the public utility company or anyone 
 91.7   acting under its direction and control.  [238.40] 
 91.8      Sec. 22.  [237A.94] [INSURANCE FOR PARTIES TO POLE 
 91.9   AGREEMENT.] 
 91.10     The cable service provider shall carry insurance to protect 
 91.11  the parties to a pole attachment agreement from and against any 
 91.12  and all claims, demands, actions, judgments, costs, expenses, 
 91.13  and liabilities that may arise or result, directly or 
 91.14  indirectly, from or by reason of the loss, injury, claim, or 
 91.15  damage.  The amount of the insurance must be agreed to by the 
 91.16  parties to this agreement.  Insurance required must remain in 
 91.17  effect for the entire term of the agreement. [238.41] 
 91.18                             ARTICLE 8 
 91.19                        TECHNICAL PROVISIONS
 91.20     Section 1.  Minnesota Statutes 1998, section 13.71, is 
 91.21  amended by adding a subdivision to read: 
 91.22     Subd. 22.  [DATA ON COMPETITIVE MARKET SHARE.] A 
 91.23  telecommunications service provider's data on competitive market 
 91.24  share included in a petition for reclassification of a service 
 91.25  under section .. and marked "trade secret" are classified as 
 91.26  nonpublic data. 
 91.27     Sec. 2.  [REVISOR'S INSTRUCTION.] 
 91.28     The revisor of statutes, in consultation with the 
 91.29  department of commerce, shall correct cross-references and make 
 91.30  necessary conforming and carryforward amendments to accommodate 
 91.31  1999 law changes. 
 91.32     Sec. 3.  [REPEALER.] 
 91.33     Subdivision 1.  [STATUTES.] Minnesota Statutes 1998, 
 91.34  sections 237.01; 237.011; 237.02; 237.03; 237.035; 237.04; 
 91.35  237.05; 237.06; 237.065; 237.067; 237.068; 237.069; 237.07; 
 91.36  237.071; 237.072; 237.075; 237.076; 237.081; 237.082; 237.09; 
 92.1   237.10; 237.11; 237.115; 237.12; 237.121; 237.14; 237.15; 
 92.2   237.16; 237.162; 237.163; 237.164; 237.17; 237.18; 237.19; 
 92.3   237.20; 237.21; 237.22; 237.23; 237.231; 237.24; 237.25; 237.26; 
 92.4   237.27; 237.28; 237.295; 237.30; 237.33; 237.34; 237.35; 237.36; 
 92.5   237.37; 237.38; 237.39; 237.40; 237.44; 237.45; 237.46; 237.461, 
 92.6   subdivision 1; 237.47; 237.49; 237.50; 237.51, subdivisions 1 
 92.7   and 5; 237.52; 237.53; 237.54; 237.55; 237.56; 237.57; 237.58; 
 92.8   237.59; 237.60; 237.61; 237.62; 237.625; 237.626; 237.63; 
 92.9   237.64; 237.65; 237.66; 237.661; 237.662; 237.663; 237.67; 
 92.10  237.68; 237.69; 237.70, subdivisions 1, 2, 3, 5, 6, and 7; 
 92.11  237.701; 237.71; 237.711; 237.73; 237.74; 237.75; 237.76; 
 92.12  237.761; 237.762; 237.763; 237.764; 237.765; 237.766; 237.767; 
 92.13  237.768; 237.769; 237.770; 237.771; 237.772; 237.773; 237.774; 
 92.14  237.775; 237.79; 237.80; 237.81; 238.01; 238.02; 238.03; 238.08; 
 92.15  238.081; 238.082; 238.083; 238.084; 238.086; 238.11; 238.12; 
 92.16  238.15; 238.16; 238.17; 238.18; 238.22, subdivisions 1, 2, 4, 5, 
 92.17  6, 7, 8, and 9; 238.23; 238.24; 238.241; 238.242; 238.25; 
 92.18  238.26; 238.27; 238.35; 238.36; 238.37; 238.38; 238.39; 238.40; 
 92.19  238.41; 238.42; and 238.43; and Minnesota Statutes 1999 
 92.20  Supplement, sections 237.036; 237.066; 237.461, subdivisions 2, 
 92.21  3, and 4; 237.462; 237.51, subdivision 5a; 237.5799; 237.70, 
 92.22  subdivision 4a; and 238.22, subdivision 3, are repealed. 
 92.23     Subd. 2.  [RULES.] Minnesota Rules, parts 7817.0100; 
 92.24  7817.0200; 7817.0300; 7817.0400; 7817.0500; 7817.0600; 
 92.25  7817.0700; 7817.0800; 7817.0900; and 7817.1000, are repealed. 
 92.26     Sec. 4.  [EFFECTIVE DATE.] 
 92.27     Articles 1 to 8 are effective July 1, 2000.