1.1                          A bill for an act 
  1.2             relating to telecommunications; modifying, 
  1.3             recodifying, and clarifying telecommunications 
  1.4             statutes; amending Minnesota Statutes 1998, sections 
  1.5             216B.16, subdivision 2; 238.02, by adding a 
  1.6             subdivision; 238.03; 297A.25, by adding a subdivision; 
  1.7             308A.210, subdivision 8; and 403.09; Minnesota 
  1.8             Statutes 1999 Supplement, sections 125B.20, 
  1.9             subdivision 2; and 216A.03, subdivision 7; proposing 
  1.10            coding for new law as Minnesota Statutes, chapter 
  1.11            237A; repealing Minnesota Statutes 1998, sections 
  1.12            237.01, subdivisions 1, 2, 3, 4, and 6; 237.011; 
  1.13            237.035; 237.06; 237.065; 237.067; 237.068; 237.069; 
  1.14            237.07; 237.071; 237.072; 237.075; 237.076; 237.081; 
  1.15            237.082; 237.09; 237.10; 237.11; 237.14; 237.16, 
  1.16            subdivisions 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 
  1.17            237.18; 237.21; 237.22; 237.25; 237.26; 237.27; 
  1.18            237.28; 237.44; 237.47; 237.57; 237.5799; 237.58; 
  1.19            237.59, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, and 
  1.20            10; 237.60; 237.61; 237.62; 237.625; 237.626; 237.63; 
  1.21            237.64; 237.65; 237.67; 237.68; 237.74, subdivisions 
  1.22            1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 13; 237.76; 
  1.23            237.761; 237.762; 237.763; 237.764; 237.765; 237.766; 
  1.24            237.767; 237.768; 237.769; 237.770; 237.771; 237.772; 
  1.25            237.773; 237.774; and 237.775; Minnesota Statutes 1999 
  1.26            Supplement, sections 237.036; 237.066; and 237.5799; 
  1.27            Laws 1995, chapter 156, section 25. 
  1.28  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.29                             ARTICLE 1 
  1.30                  MINNESOTA TELECOMMUNICATIONS ACT 
  1.31     Section 1.  [SHORT TITLE.] 
  1.32     This act may be cited as the "Minnesota Telecommunications 
  1.33  Act." 
  1.34     Sec. 2.  [237A.01] [DEFINITIONS.] 
  1.35     Subdivision 1.  [SCOPE.] The terms used in this chapter 
  1.36  have the meanings given them in this section. 
  2.1      Subd. 2.  [AFFORDABLE PRICES.] "Affordable prices" means 
  2.2   prices for local exchange service approved by the commission in 
  2.3   compliance with this chapter that promote universal service, 
  2.4   giving consideration to the economic conditions and costs to 
  2.5   provide service in rural high cost areas. 
  2.6      Subd. 3.  [CABLE TELEVISION SERVICE.] "Cable television 
  2.7   service" means the one-way transmission to subscribers of video 
  2.8   programming or other programming service and subscriber 
  2.9   interaction, if any, required for the selection or use of video 
  2.10  programming or other programming service. 
  2.11     Subd. 4.  [COMMERCIAL MOBILE RADIO SERVICE.] "Commercial 
  2.12  mobile radio service" means private paging, excluding 
  2.13  not-for-profit paging systems that serve only the licensee's own 
  2.14  internal communications needs; business radio services that 
  2.15  offer customers for-profit interconnected service; land mobile 
  2.16  systems, specialized mobile radio services, public land mobile 
  2.17  service, and domestic public cellular radio telecommunications 
  2.18  service; air-ground radio telephone service; mobile satellite 
  2.19  service; personal communications service; and other services so 
  2.20  defined under federal law. 
  2.21     Subd. 5.  [COMMISSION.] "Commission" means the public 
  2.22  utilities commissioner or its successor. 
  2.23     Subd. 6.  [COMPETITIVE ACCESS PROVIDER.] "Competitive 
  2.24  access provider" means a telecommunications carrier that 
  2.25  provides intrastate dedicated access or transport service in its 
  2.26  service area, and that has no common ownership interest, whether 
  2.27  by way of parent, subsidiary, or other affiliation, with an 
  2.28  incumbent telecommunications carrier providing service within or 
  2.29  between its local exchange area or areas in the state. 
  2.30     Subd. 7.  [COMPETITIVE LOCAL EXCHANGE 
  2.31  CARRIER.] "Competitive local exchange carrier" means a 
  2.32  telecommunications carrier that provides competitive local 
  2.33  exchange service in its service area and is not an incumbent 
  2.34  telecommunications carrier providing service within or between 
  2.35  its local exchange area or areas in the state. 
  2.36     Subd. 8.  [EFFECTIVELY COMPETITIVE TELECOMMUNICATIONS 
  3.1   SERVICE.] "Effectively competitive telecommunications service" 
  3.2   means a service that has been determined to be subject to 
  3.3   effective competition under section 237A.07. 
  3.4      Subd. 9.  [ELIGIBLE TELECOMMUNICATIONS CARRIER.] "Eligible 
  3.5   telecommunications carrier" means eligible telecommunication 
  3.6   carrier as defined in federal law for purposes of eligibility 
  3.7   for and participation in a universal service fund. 
  3.8      Subd. 10.  [EMERGING COMPETITIVE TELECOMMUNICATIONS 
  3.9   SERVICE.] "Emerging competitive telecommunications service" 
  3.10  means a service that has been determined to be subject to 
  3.11  emerging competition under section 237A.12. 
  3.12     Subd. 11.  [FUND.] "Fund" means the Minnesota universal 
  3.13  service fund established in section 237A.05. 
  3.14     Subd. 12.  [INCUMBENT RURAL TELECOMMUNICATIONS 
  3.15  CARRIER.] "Incumbent rural telecommunications carrier" means a 
  3.16  local exchange carrier that serves fewer than 50,000 access 
  3.17  lines within the state and was providing local exchange service 
  3.18  within the state on or before February 8, 1996, including its 
  3.19  successor in interest, if any. 
  3.20     Subd. 13.  [INCUMBENT TELECOMMUNICATIONS 
  3.21  CARRIER.] "Incumbent telecommunications carrier" means any local 
  3.22  exchange carrier that was providing local exchange service 
  3.23  within the state on or before February 8, 1996, including its 
  3.24  successor in interest, if any. 
  3.25     Subd. 14.  [INTEGRATED COMMUNICATIONS SERVICES 
  3.26  PROVIDER.] "Integrated communications services provider" means a 
  3.27  telecommunications carrier that is authorized under law to 
  3.28  provide, and which does in fact provide, all of the following 
  3.29  services within the state of Minnesota: 
  3.30     (1) interstate, interLATA telecommunications services; 
  3.31     (2) intrastate, interLATA telecommunications services; 
  3.32     (3) intrastate, intraLATA telecommunications services; 
  3.33     (4) local exchange service; 
  3.34     (5) cable television or satellite direct broadcast 
  3.35  television services; and 
  3.36     (6) high-speed Internet access.  For purposes of the 
  4.1   chapter, "high-speed Internet access" is defined as access to 
  4.2   the Internet at transmission speeds in excess of 56 kilobits per 
  4.3   second. 
  4.4      Subd. 15.  [LOCAL EXCHANGE AREA.] "Local exchange area" 
  4.5   means a geographic area encompassing part or all of one or more 
  4.6   local communities, as described in maps, tariffs, or price 
  4.7   schedules filed with the commission, where local exchange prices 
  4.8   apply. 
  4.9      Subd. 16.  [LOCAL EXCHANGE SERVICE.] "Local exchange 
  4.10  service" means the transmission of two-way, interactive, 
  4.11  switched voice communications furnished by a telecommunications 
  4.12  carrier to its retail customers within a local exchange area. 
  4.13     Subd. 17.  [LONG DISTANCE TELECOMMUNICATIONS CARRIER.] Long 
  4.14  distance telecommunications carrier" means a telecommunications 
  4.15  carrier that provides long distance service within the state and 
  4.16  that has no common ownership interest, whether by way of parent, 
  4.17  subsidiary, or other affiliation, with an incumbent 
  4.18  telecommunications carrier providing service within the state; 
  4.19  provided however, that a subsidiary or affiliate of an incumbent 
  4.20  telecommunications carrier may qualify as a long distance 
  4.21  telecommunications carrier if the incumbent telecommunications 
  4.22  carrier has obtained approval by the Federal Communications 
  4.23  Commission to provide originating interLATA long distance 
  4.24  telecommunications services from Minnesota, or has otherwise 
  4.25  complied with applicable federal law, and the subsidiary or 
  4.26  affiliate meets the structural and transactional requirements, 
  4.27  nondiscrimination safeguards, and audit requirements required by 
  4.28  federal law to engage in the origination of interLATA 
  4.29  telecommunications services from Minnesota. 
  4.30     Subd. 18.  [LONG DISTANCE SERVICE.] "Long distance service" 
  4.31  means telecommunications service between local exchange areas 
  4.32  that originates and terminates within the state. 
  4.33     Subd. 19.  [NETWORK ELEMENT.] "Network element" has the 
  4.34  meaning given in United States Code, title 47, section 153, and 
  4.35  includes any additional elements determined by the commission. 
  4.36     Subd. 20.  [NONCOMPETITIVE TELECOMMUNICATIONS 
  5.1   SERVICE.] "Noncompetitive telecommunications service" means a 
  5.2   service that has not been determined to be subject to effective 
  5.3   competition under section 237A.07. 
  5.4      Subd. 21.  [PRIVATE TELECOMMUNICATIONS SERVICE.] (a) 
  5.5   "Private telecommunications service" means a system, including 
  5.6   the construction, maintenance, or operation of the system, for 
  5.7   providing telecommunications service, or a portion of that 
  5.8   service, by a person or entity for the sole and exclusive use of 
  5.9   that person or entity and not for resale, directly or indirectly.
  5.10     (b) For purposes of this definition, the person or entity 
  5.11  that may use the service includes any affiliate of the person or 
  5.12  entity if at least 80 percent of the assets or voting stock of 
  5.13  the affiliates is owned by the person or entity. 
  5.14     (c) If any other person or entity uses the 
  5.15  telecommunications service, whether for hire or not, the 
  5.16  telecommunications service is defined as a public 
  5.17  telecommunications service. 
  5.18     Subd. 22.  [PUBLIC TELECOMMUNICATIONS SERVICE.] (a) "Public 
  5.19  telecommunications service" means the transmission of signs, 
  5.20  signals, writings, images, sounds, messages, data or other 
  5.21  information of any nature by wire, radio, lightwaves or other 
  5.22  electromagnetic means, originating and terminating in this state 
  5.23  regardless of actual call routing.  
  5.24     (b) Public telecommunications service does not include the 
  5.25  provision of terminal equipment used to originate or terminate 
  5.26  this service; private telecommunications service; broadcast 
  5.27  transmissions by radio, television, and satellite broadcast 
  5.28  stations regulated by the Federal Communications Commission; 
  5.29  radio common carrier services, including, but not limited to, 
  5.30  mobile telephone service and radio paging; Internet services; or 
  5.31  cable television service. 
  5.32     Subd. 23.  [RETAIL.] "Retail" means, when used in 
  5.33  connection with public telecommunications service and prices, 
  5.34  services provided to an end-user customer for the customer's own 
  5.35  use and prices charged for these services, excluding all amounts 
  5.36  from surcharges, gross receipts taxes, excise taxes, franchise 
  6.1   fees, and similar charges. 
  6.2      Subd. 24.  [TELECOMMUNICATIONS 
  6.3   CARRIER.] "Telecommunications carrier" means an individual, 
  6.4   corporation, partnership, joint venture, company, firm, 
  6.5   association, proprietorship, or other entity, other than an 
  6.6   integrated communications services provider, that provides 
  6.7   public telecommunications service. 
  6.8      Subd. 25.  [WHOLESALE SERVICES.] "Wholesale services" means 
  6.9   the services provided between and among telecommunications 
  6.10  carriers for the origination or termination of public 
  6.11  telecommunications services to their customers. 
  6.12     Sec. 3.  [237A.025] [EXEMPTION FOR PRIVATE SERVICE.] 
  6.13     Construction, maintenance, or operation of a private 
  6.14  telecommunications service does not constitute the provision of 
  6.15  public telecommunications service, and a private 
  6.16  telecommunications service is not subject to regulation by the 
  6.17  commission under this chapter. 
  6.18     Sec. 4.  [237A.03] [COMMISSION DUTIES AND POWERS.] 
  6.19     Subdivision 1.  [JURISDICTION.] Except as otherwise 
  6.20  provided in this chapter, each public telecommunications service 
  6.21  is declared to be affected with the public interest and, as 
  6.22  such, is subject to the provisions of this chapter.  The 
  6.23  commission has exclusive jurisdiction to regulate 
  6.24  telecommunications carriers pursuant to this chapter and retains 
  6.25  all other authority previously granted to it by Minnesota and 
  6.26  federal law, including, but not limited to, the authority to 
  6.27  enforce compliance with retail and wholesale service quality 
  6.28  standards, to police and prevent the occurrence of 
  6.29  anticompetitive acts, and to secure the consumer protections 
  6.30  adopted under this chapter.  Consistent with Minnesota and 
  6.31  federal law, the commission shall make and enforce rules to 
  6.32  implement this chapter, as well as applicable federal law. 
  6.33     Subd. 2.  [DUTIES.] Except as otherwise provided in this 
  6.34  chapter, with respect to telecommunications carriers, and common 
  6.35  carriers, the commission shall: 
  6.36     (1) fix, determine, supervise, regulate, and control all 
  7.1   prices, charges, and rates of telegraph and telephone companies, 
  7.2   telecommunications carriers, and common carriers within the 
  7.3   state; 
  7.4      (2) determine any matters of public convenience and 
  7.5   necessity with respect to matters subject to its regulatory 
  7.6   authority as provided by law; 
  7.7      (3) require telephone and telegraph companies, 
  7.8   telecommunications carriers, and other common carriers to 
  7.9   provide and maintain adequate equipment and personnel in order 
  7.10  to sustain and improve service quality and provide for 
  7.11  appropriate interconnection in accordance with state and federal 
  7.12  law; 
  7.13     (4) change, amend, and rescind rates for noncompetitive 
  7.14  services; 
  7.15     (5) hear and decide upon requests to discontinue specific 
  7.16  services; 
  7.17     (6) enforce its rules through administrative sanctions and 
  7.18  in the courts; and 
  7.19     (7) carry out all other duties and have all other powers 
  7.20  provided by law. 
  7.21     Subd. 3.  [POWERS.] (a) The commission is authorized to 
  7.22  perform the duties and exercise the powers that federal law 
  7.23  provides may be performed or exercised by a state commission.  
  7.24  To the extent that it finds that it would not be inconsistent 
  7.25  with the transition to a competitive telecommunications market, 
  7.26  the commission may, in fixing prices for noncompetitive 
  7.27  services, consider the earnings, investments, and expenditures 
  7.28  derived by a carrier including without limitation those derived 
  7.29  from or related to the sale of directory advertising and other 
  7.30  directory listing services. 
  7.31     (b) The commission may subpoena witnesses and documents, 
  7.32  enforce its subpoenas through any court and, through the court, 
  7.33  punish for contempt. 
  7.34     (c) The commission has the power, after notice and hearing 
  7.35  of record, to determine and decide any question and to issue 
  7.36  orders relating to its powers and duties.  The commission's 
  8.1   rules must include procedures necessary and proper to designate 
  8.2   and protect confidential information obtained from a regulated 
  8.3   carrier, and this information, once designated confidential by 
  8.4   the commission under these rules, must be protected to the 
  8.5   maximum extent allowable by law.  For purposes of this 
  8.6   paragraph, "confidential information" means information that 
  8.7   would likely result in competitive harm to the carrier if it 
  8.8   were made public; provided that, in a proceeding before the 
  8.9   commission, the commission has the power to require the 
  8.10  production of confidential information subject to an appropriate 
  8.11  confidentiality order issued in compliance with commission rules.
  8.12     Subd. 4.  [APPEAL.] (a) An interested party may appeal from 
  8.13  a final order of the commission by filing a notice of appeal 
  8.14  with the state supreme court asking for review of the order 
  8.15  within 30 days of the final order.  The appellant shall pay to 
  8.16  the commission any costs of preparing and transmitting the 
  8.17  record to the court. 
  8.18     (b) The pendency of an appeal does not automatically stay 
  8.19  the order appealed from the appellant may seek to obtain a stay 
  8.20  from the commission or the supreme court. 
  8.21     (c) The appeal must be on the record of the hearing before 
  8.22  the commission and is governed by the appellate rules applicable 
  8.23  to administrative appeals.  The supreme court shall affirm the 
  8.24  commission's order unless it is: 
  8.25     (1) arbitrary, capricious, or an abuse of discretion; 
  8.26     (2) not supported by substantial evidence in the record; or 
  8.27     (3) otherwise not in accordance with law. 
  8.28     Subd. 5.  [ENFORCEMENT OF ORDER.] In the case of a failure 
  8.29  or refusal of any person to comply with an order of the 
  8.30  commission within the time prescribed in the order or within 30 
  8.31  days after the order is entered, whichever is later, unless a 
  8.32  stay has been granted, the commission and the attorney general 
  8.33  have direct enforcement authority in accordance with the 
  8.34  provisions of this chapter.  Enforcement proceedings must be 
  8.35  held by the commission on an expedited basis. 
  8.36     Sec. 5.  [237A.04] [CERTIFICATE REQUIRED.] 
  9.1      Subdivision 1.  [REQUIREMENT AND PROHIBITION.] (a) No 
  9.2   public telecommunications service may be offered in this state 
  9.3   except in accordance with this chapter. 
  9.4      (b) No public telecommunications service may be offered 
  9.5   within this state without the telecommunications carrier first 
  9.6   having obtained from the commission a certificate of public 
  9.7   convenience and necessity or a certificate of authority or 
  9.8   registration consistent with this chapter. 
  9.9      Subd. 2.  [COMMISSION AUTHORITY.] The commission has full 
  9.10  power and authority to determine all issues of fact and law 
  9.11  relating to the issuance of a certificate of public convenience 
  9.12  and necessity or certificate of authority or registration to a 
  9.13  provider of public telecommunications service; provided, 
  9.14  however, that in keeping with the purposes of this chapter and 
  9.15  federal law, the commission shall not deny an applicant a 
  9.16  certificate on the grounds of duplication of facilities if it is 
  9.17  shown that the applicant possesses adequate financial resources 
  9.18  and technical competency to provide the service. 
  9.19     Subd. 3.  [RULES.] For the purposes of considering and 
  9.20  acting upon applications for certificates pursuant to this 
  9.21  section, the commission shall adopt rules that are (1) 
  9.22  competitively neutral and consistent with this chapter and 
  9.23  federal law, and (2) necessary to preserve and advance universal 
  9.24  service, protect the public safety and welfare, ensure the 
  9.25  continued quality of public telecommunications services, 
  9.26  safeguard the rights of consumers, and encourage the development 
  9.27  of competition. 
  9.28     Subd. 4.  [CONSIDERATIONS FOR ISSUING CERTIFICATE.] In 
  9.29  determining whether to issue a certificate to provide a public 
  9.30  telecommunications service, the commission shall consider the 
  9.31  following: 
  9.32     (1) whether the applicant has sufficient financial 
  9.33  resources to provide the proposed service properly and 
  9.34  continuously; 
  9.35     (2) whether the applicant has competent and experienced 
  9.36  management and personnel to provide the proposed service; and 
 10.1      (3) whether the applicant is willing and able to conform to 
 10.2   applicable laws, rules, and regulations applicable generally to 
 10.3   providers of public telecommunications services. 
 10.4      Subd. 5.  [STATUS OF EXISTING CERTIFICATES.] All 
 10.5   certificates existing as of the effective date of this act 
 10.6   continue in full force and effect and remain subject to all 
 10.7   terms and conditions imposed by statute or commission order at 
 10.8   the time of issuance or any subsequent amendment. 
 10.9      Sec. 6.  [237A.05] [UNIVERSAL SERVICE FUND; BOARD.] 
 10.10     Subdivision 1.  [ESTABLISHMENT AND IMPLEMENTATION.] The 
 10.11  Minnesota universal service fund is established.  The commission 
 10.12  shall implement no later than January 1, 2001, the Minnesota 
 10.13  universal service fund to maintain and support at affordable 
 10.14  prices any public telecommunications services as are determined 
 10.15  by the commission.  Money deposited in the fund is not public 
 10.16  money and the administration of the fund is not subject to the 
 10.17  provisions of law regulating public funds.  
 10.18     Subd. 2.  [PURPOSE; GENERAL REQUIREMENTS.] The fund must be 
 10.19  competitively and technologically neutral, equitable, and 
 10.20  nondiscriminatory in its collection and distribution of funds, 
 10.21  portable between eligible telecommunications carriers, targeted 
 10.22  to high cost rural areas.  The fund must provide a specific, 
 10.23  predictable, and sufficient support mechanism as determined by 
 10.24  the commission that reduces implicit subsidies including, but 
 10.25  not limited to, long distance switched access charges, and 
 10.26  ensures universal service in the state.  Any reductions in 
 10.27  charges for intrastate switched access services resulting from 
 10.28  compliance with this section must be passed on for the benefit 
 10.29  of consumers in the state. 
 10.30     Subd. 3.  [SURCHARGE.] (a) The fund must be financed by a 
 10.31  surcharge on all intrastate retail public telecommunications 
 10.32  services revenue, excluding (1) revenue from services provided 
 10.33  pursuant to a low-income telephone assistance plan billed to 
 10.34  end-user customers by a telecommunications carrier, and (2) all 
 10.35  amounts from surcharges, gross receipts taxes, excise taxes, 
 10.36  franchise fees, and similar charges.  
 11.1      (b) For the purpose of funding the Minnesota universal 
 11.2   service fund, the commission has the authority to apply the 
 11.3   surcharge on all end-user retail public telecommunications 
 11.4   services provided in the state by telecommunications carriers 
 11.5   and to comparable retail alternative services provided by 
 11.6   telecommunications carriers and nontelecommunications carriers, 
 11.7   including, but not limited to, commercial mobile radio services, 
 11.8   operator services, and aggregator services, offered by providers 
 11.9   other than telecommunications carriers at a competitively and 
 11.10  technologically neutral rate or rates to be determined by the 
 11.11  commission.  In prescribing competitively and technologically 
 11.12  neutral surcharge rates, the commission may make distinctions 
 11.13  between and among services subject to a surcharge, but it shall 
 11.14  require telecommunications carriers and nontelecommunications 
 11.15  carriers to apply uniform surcharge rates for the same or 
 11.16  comparable services.  
 11.17     (c) The commission shall not apply the surcharge to a 
 11.18  private telecommunications network. 
 11.19     Subd. 4.  [ELIGIBILITY.] The commission shall establish 
 11.20  eligibility criteria for participation in the fund, consistent 
 11.21  with federal law, that ensure the availability of service at 
 11.22  affordable prices without unreasonably increasing prices to 
 11.23  local exchange service and long distance service customers while 
 11.24  still granting eligible telecommunications carriers a reasonable 
 11.25  profit on supported services in geographic areas requiring 
 11.26  support from the fund; provided however, that the eligibility 
 11.27  criteria:  
 11.28     (1) must not require any investigations of the costs or 
 11.29  prices of a telecommunications carrier receiving support from 
 11.30  the fund, other than that provided for in subdivision 7; and 
 11.31     (2) must not restrict or limit an eligible 
 11.32  telecommunications carrier from receiving federal universal 
 11.33  service support. 
 11.34     Subd. 5.  [SURCHARGE COLLECTION.] The commission shall 
 11.35  provide for the collection of the surcharge on a competitively 
 11.36  neutral basis, and the administration and disbursement of money 
 12.1   from the fund, in a manner consistent with federal law.  
 12.2   Administration and disbursement of the Minnesota universal 
 12.3   service fund must be separate from that of the federal Universal 
 12.4   Service Fund. 
 12.5      Subd. 6.  [SUPPORT FOR TARGETED AREAS.] The commission 
 12.6   shall determine those geographic areas and public 
 12.7   telecommunications services requiring support from the fund.  
 12.8   The fund established by the commission must be narrowly targeted 
 12.9   to ensure the availability of essential public 
 12.10  telecommunications service as determined by the commission at 
 12.11  affordable prices in rural high cost areas of the state. 
 12.12     Subd. 7.  [RULES.] (a) The commission shall adopt rules for 
 12.13  the implementation and administration of the fund in accordance 
 12.14  with this section. 
 12.15     (b) The cost basis for establishing the fund and 
 12.16  determining the rate of distribution for areas served by an 
 12.17  incumbent rural telecommunications carrier with fewer than 
 12.18  50,000 access lines must be the same cost of providing the 
 12.19  supported service by geographic area determined by the Federal 
 12.20  Communications Commission, and must include the same return 
 12.21  authorized by the Federal Communications Commission, for use in 
 12.22  rates filed by the National Exchange Carriers Association at the 
 12.23  Federal Communications Commission for those carriers. 
 12.24     (c) The cost basis for establishing the fund and 
 12.25  determining the rate of distribution of the new fund for areas 
 12.26  served by incumbent local exchange carriers with 50,000 or more 
 12.27  access lines must be the forward-looking economic cost of 
 12.28  providing the supported service in the geographic area as 
 12.29  determined by the commission. 
 12.30     Subd. 8.  [FUND ADMINISTRATOR; ADVISORY BOARD.] (a) Upon 
 12.31  implementation of the fund, the commission shall select a 
 12.32  neutral third-party administrator to collect, administer, and 
 12.33  disburse money from the fund under the supervision and control 
 12.34  of the commission pursuant to the established criteria and the 
 12.35  rules adopted by the commission.  The administrator may be 
 12.36  reasonably compensated for services from the surcharge proceeds 
 13.1   to be received by the fund under subdivision 3. 
 13.2      (b) The neutral third-party administrator shall consult 
 13.3   with an advisory board established by the commission composed of 
 13.4   representatives from all participating providers. 
 13.5      (c) For purposes of this subdivision, the commission may 
 13.6   designate itself as the neutral third-party administrator. 
 13.7      Subd. 9.  [REVENUE REPORTING.] To ensure that all providers 
 13.8   of telecommunications services contribute to the fund as 
 13.9   required, and to further ensure that the surcharge to be paid by 
 13.10  the end-user customer will be held to a minimum, the commission 
 13.11  in its adopted rules shall take appropriate action to enforce 
 13.12  the accurate reporting of intrastate retail public 
 13.13  telecommunications services revenue. 
 13.14     Subd. 10.  [ACCESS PRICE REDUCTION.] (a) Upon receipt of a 
 13.15  Minnesota universal service fund distribution, an incumbent 
 13.16  telecommunications carrier shall reduce its average intrastate 
 13.17  per-minute-of-use interexchange access prices in such a manner 
 13.18  that the revenue from the intrastate interexchange access prices 
 13.19  is reduced by an amount equal to the carrier's annual Minnesota 
 13.20  universal service fund distribution.  The incumbent 
 13.21  telecommunications carrier shall file a conforming tariff 
 13.22  revision as a prerequisite to receiving further distributions 
 13.23  from the Minnesota universal service fund. 
 13.24     (b) The commission may, on its own motion, prospectively 
 13.25  alter or amend the reductions in intrastate interexchange access 
 13.26  prices required under paragraph (a) for incumbent rural 
 13.27  telecommunications carriers upon the implementation by the 
 13.28  Federal Communications Commission of a costing methodology 
 13.29  required for an incumbent rural telecommunications carrier to 
 13.30  continue to receive support from the federal universal service 
 13.31  high cost fund.  Upon implementation of this costing 
 13.32  methodology, the incumbent rural telecommunications carrier's 
 13.33  intrastate interexchange access price may be adjusted 
 13.34  accordingly by the commission to reflect the costing methodology.
 13.35     Sec. 7.  [237A.06] [DISCONTINUING LOCAL EXCHANGE SERVICE 
 13.36  OPERATION.] 
 14.1      A telecommunications carrier that has either a certificate 
 14.2   of public convenience and necessity or authority permitting it 
 14.3   to provide local exchange service in Minnesota is not allowed to 
 14.4   discontinue the provision of local exchange service operations 
 14.5   in an area it currently serves (1) without providing its current 
 14.6   customers with sufficient notice and (2) without an order of the 
 14.7   commission finding that there is another telecommunications 
 14.8   carrier with facilities in place capable of providing local 
 14.9   exchange service without interruption to the discontinuing 
 14.10  telecommunications carrier's current customers.  The transfer of 
 14.11  control of the shares of a company providing local exchange 
 14.12  service, or the sale or transfer of exchanges or access lines 
 14.13  between certificated telecommunications carriers, must not be 
 14.14  construed as a discontinuation of public telecommunications 
 14.15  services operations under this section. 
 14.16     Sec. 8.  [237A.07] [SERVICES SUBJECT TO EFFECTIVE 
 14.17  COMPETITION.] 
 14.18     Subdivision 1.  [NON-PRICE-REGULATED SERVICES.] Within 120 
 14.19  days after a petition is filed by any interested person, and 
 14.20  after notice and the opportunity for hearing, the commission 
 14.21  shall determine if a retail public telecommunications service or 
 14.22  interexchange access is subject to effective competition in a 
 14.23  relevant market area.  When the commission has made a 
 14.24  determination that a service or part of a service is subject to 
 14.25  effective competition, the service must be non-price-regulated, 
 14.26  and the commission shall, consistent with the purposes of this 
 14.27  chapter, eliminate rules and other requirements applicable to 
 14.28  establishing, determining, and changing specific prices for the 
 14.29  service, consistent with this section.  Upon petition or request 
 14.30  of an affected telecommunications carrier, and upon a finding 
 14.31  that the requirements of subdivision 3 are met, the commission 
 14.32  may modify the same or similar regulatory requirements for those 
 14.33  providers of comparable public telecommunications services in 
 14.34  the same relevant markets, so that there is reasonable parity of 
 14.35  regulatory standards and requirements for these providers. 
 14.36     Subd. 2.  [CONSIDERATIONS IN DETERMINING EFFECTIVE 
 15.1   COMPETITION.] In determining whether a retail public 
 15.2   telecommunications service is subject to effective competition 
 15.3   in a relevant market area, the commission shall consider the 
 15.4   following with respect to the type of retail public 
 15.5   telecommunications service offered and the geographic area in 
 15.6   which the retail public telecommunications service is offered: 
 15.7      (1) the extent to which services are reasonably available 
 15.8   from alternate providers; 
 15.9      (2) the ability of alternate providers to make functionally 
 15.10  equivalent or substitute services readily available at 
 15.11  competitive prices, terms, and conditions; and 
 15.12     (3) existing economic or regulatory barriers to entry. 
 15.13     Subd. 3.  [SUBSIDIZATION PROHIBITED.] No provider of retail 
 15.14  public telecommunications service may use current revenues 
 15.15  earned or expenses incurred in conjunction with any 
 15.16  noncompetitive service to subsidize a retail public 
 15.17  telecommunications service subject to emerging or effective 
 15.18  competition.  In order to avoid cross-subsidization of services 
 15.19  subject to emerging or effective competition by noncompetitive 
 15.20  and emerging competitive retail public telecommunications 
 15.21  services, prices charged for a retail public telecommunications 
 15.22  service subject to emerging or effective competition must cover 
 15.23  the commission-defined cost of providing the service, including 
 15.24  the imputed price of wholesale service elements as may be 
 15.25  required by the commission.  Upon complaint by an interested 
 15.26  person, including the commission staff under section 237A.23, 
 15.27  the commission shall require a telecommunications carrier to 
 15.28  demonstrate that the price of a retail public telecommunications 
 15.29  service subject to emerging or effective competition covers the 
 15.30  commission-defined cost of providing the service, including the 
 15.31  imputed price of wholesale service elements as may be required 
 15.32  by the commission.  The commission shall impose any appropriate 
 15.33  remedies upon consideration and adjudication of the complaint.  
 15.34  Complaints under this section must be resolved within 60 days. 
 15.35     Subd. 4.  [TARIFF UPDATES.] Each telecommunications carrier 
 15.36  shall maintain and regularly update a tariff filed with the 
 16.1   commission, describing the prices, terms, and offering 
 16.2   conditions for the services subject to emerging and effective 
 16.3   competition of the telecommunications carrier. 
 16.4      Sec. 9.  [237A.08] [CHANGE IN PRICES.] 
 16.5      Subdivision 1.  [BURDEN OF PROOF TO INCREASE PRICE.] At any 
 16.6   hearing involving an increase in prices sought by a 
 16.7   telecommunications carrier under this section, the burden of 
 16.8   proof to show that the increased price is just and reasonable is 
 16.9   on the telecommunications carrier. 
 16.10     Subd. 2.  [NOTICE, HEARING, AND DECISION TO CHANGE 
 16.11  PRICE.] (a) Except as otherwise provided in sections 237A.07, 
 16.12  237A.09, 237A.10, 237A.11, 237A.12, 237A.13, 237A.14, 237A.15, 
 16.13  237A.16, 237A.20, and 237A.28, a telecommunications carrier 
 16.14  proposing a price change shall comply with the procedures set 
 16.15  forth in paragraphs (b) to (d). 
 16.16     (b) No telecommunications carrier shall make a change in an 
 16.17  established price except after 30 days' notice to the 
 16.18  commission.  The notice must plainly state the changes proposed 
 16.19  to be made in the prices then in force, the time when the 
 16.20  changed prices will go into effect, and other information as the 
 16.21  commission by rule requires.  The telecommunications company 
 16.22  shall also give notice of the proposed changes to other 
 16.23  interested persons as the commission may direct.  All proposed 
 16.24  changes must be shown by filing new schedules that must be kept 
 16.25  open to public inspection.  For good cause shown, the commission 
 16.26  may allow changes in prices without requiring the 30 days' 
 16.27  notice, under conditions that it may prescribe. 
 16.28     (c) Whenever a telecommunications carrier files a complete 
 16.29  application proposing new prices, the commission may, upon 
 16.30  complaint or upon its own initiative and after reasonable 
 16.31  notice, enter upon a hearing concerning the reasonableness of 
 16.32  the proposed prices.  If the commission determines a hearing is 
 16.33  necessary, it shall suspend the operation of the proposed prices 
 16.34  before they become effective but not for a longer initial period 
 16.35  that nine months beyond the time when the prices would otherwise 
 16.36  go into effect, unless the commission finds that a longer time 
 17.1   will be required, in which case the commission may extend the 
 17.2   period for an additional three months.  The commission shall 
 17.3   hear and decide cases with reasonable promptness.  The 
 17.4   commission shall adopt rules identifying criteria for various 
 17.5   price and tariff filings under this section to be eligible for 
 17.6   suspension periods shorter than what is allowed by this 
 17.7   paragraph and to be eligible for summary approval without 
 17.8   hearing. 
 17.9      (d) If after a hearing under this section the commission 
 17.10  finds the proposed prices to be unjust, unreasonable, or in any 
 17.11  way in violation of law, the commission shall either (1) 
 17.12  determine the just and reasonable prices to be charged or 
 17.13  applied by the telecommunications carrier for the service in 
 17.14  question and shall fix the prices by order to be served upon the 
 17.15  telecommunications carrier, or (2) direct the telecommunications 
 17.16  carrier to file new prices for the service in question that are 
 17.17  just and reasonable.  Those prices must thereafter be observed 
 17.18  until changed as provided by this chapter. 
 17.19     Sec. 10.  [237A.09] [REGULATING RETAIL PRICES OF INCUMBENT 
 17.20  RURAL CARRIER.] 
 17.21     Subdivision 1.  [REGULATORY AUTHORITY.] Prices for retail 
 17.22  public telecommunications services provided by an incumbent 
 17.23  rural telecommunications carrier are subject to regulation by 
 17.24  the commission in the manner and to the extent authorized by 
 17.25  this section and section 237A.27. 
 17.26     Subd. 2.  [PRICE CHANGE NOTICE REQUIREMENTS.] (a) An 
 17.27  incumbent rural telecommunications carrier shall file tariffs 
 17.28  for all its retail public telecommunications services.  
 17.29     (b) Prices, and price changes, for retail public 
 17.30  telecommunications services, other than residential local 
 17.31  exchange service, are effective after ten days' notice to the 
 17.32  commission. 
 17.33     (c) Prices for residential local exchange service may be 
 17.34  increased by an incumbent rural telecommunications carrier only 
 17.35  after 60 days' notice to all affected subscribers.  This notice 
 17.36  of increase must include:  
 18.1      (1) the reasons for the price increase; 
 18.2      (2) a description of the affected service; 
 18.3      (3) an explanation of the right of the subscriber to 
 18.4   petition the commission for a public hearing on the price 
 18.5   increase; 
 18.6      (4) a list of local exchange areas affected by the proposed 
 18.7   price increase; and 
 18.8      (5) the dates, times, and places for the public 
 18.9   informational meetings required by this section.  
 18.10     Subd. 3.  [COST OF LEGAL REQUIREMENTS.] An incumbent rural 
 18.11  telecommunications carrier may increase its prices for 
 18.12  residential local exchange service in the manner otherwise 
 18.13  provided in this section as necessary to recover a reasonable 
 18.14  allocation of costs incurred due to requirements imposed by any 
 18.15  federal or state law or rule or regulation.  
 18.16     Subd. 4.  [PUBLIC INFORMATIONAL MEETINGS.] An incumbent 
 18.17  rural telecommunications carrier that proposes to increase its 
 18.18  prices for residential local exchange service shall hold at 
 18.19  least one public informational meeting in each local exchange 
 18.20  area, as established by the commission, in which there are 
 18.21  affected customers. 
 18.22     Subd. 5.  [PRICE INCREASE REVIEW.] (a) Local exchange 
 18.23  service prices increased by any rural telecommunications carrier 
 18.24  pursuant to subdivision 2 or 3 must be reviewed by the 
 18.25  commission upon motion by commission staff, the attorney 
 18.26  general, the department of commerce, or upon written complaint 
 18.27  signed by three percent of all affected subscribers.  
 18.28     (b) The complaint shall specifically set forth the 
 18.29  particular price or charge as to which review is requested, the 
 18.30  reasons for the requested review, and the relief which the 
 18.31  complainants desire.  If a proper complaint is presented to the 
 18.32  commission within 60 days from the date notice of the price 
 18.33  change was sent to affected subscribers of an incumbent rural 
 18.34  telephone carrier, the commission may accept and file the 
 18.35  complaint and, upon proper notice, may suspend the prices and 
 18.36  charges at issue during the pendency of the proceedings and 
 19.1   reinstate the prices and charges previously in effect and shall 
 19.2   hold and complete a hearing on the matter within 90 days after 
 19.3   filing to determine if the prices as proposed are fair, just, 
 19.4   and reasonable.  
 19.5      (c) The commission may, within 60 days after close of the 
 19.6   hearing, enter an order adjusting the prices and charges at 
 19.7   issue, except that the commission shall not set any price or 
 19.8   charge below the cost of providing the service, which may 
 19.9   include a reasonable amount of joint and common costs as 
 19.10  determined by the Federal Communications Commission and a 
 19.11  reasonable profit, as established by the evidence received at 
 19.12  the hearing.  In the order, the commission may order a refund of 
 19.13  amounts collected in excess of the prices and charges as 
 19.14  approved at the hearing, which may be paid as a credit against 
 19.15  billings for future services.  If the complaint is denied, the 
 19.16  commission shall enter an order denying the complaint within 60 
 19.17  days after the close of the hearing, and the prices and charges 
 19.18  are deemed approved.  
 19.19     (d) For purposes of this section, cost also includes a 
 19.20  reasonable amount of joint and common costs incurred by the 
 19.21  telecommunications carrier in its operations and may include 
 19.22  other accounting adjustments authorized by the commission. 
 19.23     Subd. 6.  [REQUEST FOR COMMISSION PRICE DETERMINATION.] A 
 19.24  rural telecommunications carrier that serves less than five 
 19.25  percent of the state's aggregate, statewide subscriber lines may 
 19.26  at any time elect to file an application with the commission 
 19.27  requesting the commission to prescribe fair, just, and 
 19.28  reasonable prices for the carrier based on the carrier's 
 19.29  revenue, expenses, and investment in accordance with traditional 
 19.30  rate-making principles. 
 19.31     Subd. 7.  [PRICE MUST RECOVER COSTS.] Prices for local 
 19.32  exchange, vertical, and long distance services to retail 
 19.33  end-user customers may be reduced to a level equal to, but not 
 19.34  below, the cost including a reasonable amount of joint and 
 19.35  common costs and a reasonable profit to provide the retail 
 19.36  service as determined by the commission.  When a rural 
 20.1   telecommunications carrier loses its exemption under section 251 
 20.2   of the 1996 Federal Telecommunications Act, Public Law Number 
 20.3   104-104, the price of services, excluding local exchange 
 20.4   service, must cover the cost of the service, including the 
 20.5   imputed price of wholesale service elements as may be required 
 20.6   by the commission.  The cost of long distance service must also 
 20.7   include any interexchange access prices charged to another 
 20.8   telecommunications carrier for the service. 
 20.9      Subd. 8.  [PROMOTIONAL ACTIVITIES.] An incumbent rural 
 20.10  telecommunications carrier operating pursuant to this section 
 20.11  may offer or discontinue offering special incentives, discounts, 
 20.12  packaged offerings, temporary price waivers, or other 
 20.13  promotions, or offer individual contracts, as provided for in 
 20.14  sections 237A.15, 237A.16, and 237A.20. 
 20.15     Subd. 9.  [PRICING ON DEAVERAGED BASIS.] An incumbent rural 
 20.16  telecommunications carrier operating pursuant to this section 
 20.17  may offer cost-based, retail pricing of its business and 
 20.18  residential services on a geographically deaveraged basis, 
 20.19  provided the carrier simultaneously offers each and every one of 
 20.20  the wholesale components of said retail services on a 
 20.21  cost-based, geographically deaveraged basis. 
 20.22     Sec. 11.  [237A.10] [REGULATING LARGE INCUMBENT CARRIER.] 
 20.23     Subdivision 1.  [REGULATORY AUTHORITY GENERALLY.] The 
 20.24  retail public telecommunications services offered by an 
 20.25  incumbent telecommunications carrier that serves more than 
 20.26  250,000 access lines in Minnesota must be regulated in the 
 20.27  manner provided in this section.  This incumbent 
 20.28  telecommunications carrier is not subject to rate of return 
 20.29  regulation or investigations of its earnings, except as provided 
 20.30  in paragraph (g). 
 20.31     Subd. 2.  [PRICES, TERMS, AND CONDITIONS OF SERVICE.] (a) 
 20.32  An incumbent telecommunications carrier that serves more than 
 20.33  250,000 access lines in Minnesota may establish or change the 
 20.34  prices, terms, and conditions of its noncompetitive retail 
 20.35  public telecommunications services only in the manner prescribed 
 20.36  by this section. 
 21.1      (b) An incumbent telecommunications carrier serving more 
 21.2   than 250,000 access lines in Minnesota shall not increase the 
 21.3   per access line price of its residence dial tone access line 
 21.4   service for three years from the effective date of this act.  
 21.5   After three years from the effective date of this act, and until 
 21.6   such time as the commission determines that residence dial tone 
 21.7   access line service is subject to effective competition, an 
 21.8   incumbent telecommunications carrier serving more than 250,000 
 21.9   access lines shall not increase the per access line price of 
 21.10  residence dial tone access line service by more than five 
 21.11  percent in any calendar year. 
 21.12     (c) Any proposed increase in residence dial tone access 
 21.13  line service prices must be processed by the commission pursuant 
 21.14  to subdivision 3, paragraph (b). 
 21.15     (d) The imposition of any surcharge to implement the 
 21.16  Minnesota universal service fund does not constitute a price 
 21.17  increase for the purposes of this section. 
 21.18     Subd. 3.  [WHEN NONCOMPETITIVE SERVICE CHANGE TAKES 
 21.19  EFFECT.] (a) Noncompetitive retail public telecommunications 
 21.20  service tariffs, and price decreases for existing noncompetitive 
 21.21  retail public telecommunications services, become effective ten 
 21.22  days after filing with the commission, subject to subdivisions 4 
 21.23  to 7. 
 21.24     (b) Price increases for noncompetitive retail public 
 21.25  telecommunications services shall become effective 20 days after 
 21.26  proof of notice by publication to affected customers and filing 
 21.27  with the commission, subject to subdivisions 4 to 7. 
 21.28     (c) Changes in terms and conditions for noncompetitive 
 21.29  retail public telecommunications services become effective ten 
 21.30  days after filing with the commission, subject to subdivisions 4 
 21.31  to 7. 
 21.32     Subd. 4.  [NONCOMPETITIVE SERVICE CHANGE; DEADLINES FOR 
 21.33  SUBMITTING OBJECTIONS.] (a) The commission may hear an objection 
 21.34  filed by any interested person, including the commission staff, 
 21.35  regarding a noncompetitive retail public telecommunications 
 21.36  service filing, or a filing proposing a price decrease, or 
 22.1   change in terms and conditions of a noncompetitive retail public 
 22.2   telecommunications service, if the objection is filed within ten 
 22.3   days of the service filing, or the filing proposing the price 
 22.4   decrease, or change in terms and conditions.  
 22.5      (b) The commission may hear an objection filed by any 
 22.6   interested person, including the commission staff, regarding a 
 22.7   price increase for a noncompetitive retail public 
 22.8   telecommunications service, if the objection is filed within 20 
 22.9   days of the proposed price increase.  
 22.10     Subd. 5.  [NONCOMPETITIVE SERVICE CHANGE; DEADLINES FOR 
 22.11  COMMISSION DETERMINATIONS.] After notice and the opportunity for 
 22.12  expedited hearing, the commission shall make its determination 
 22.13  on the service filing, price decrease, and change in terms and 
 22.14  conditions within 60 days of the filing of the objection.  The 
 22.15  commission shall make its determination on the proposed price 
 22.16  increase within 120 days of the filing of the objection. 
 22.17     Subd. 6.  [NONCOMPETITIVE SERVICE CHANGE; IMMEDIATE ACTIONS 
 22.18  BY COMMISSION ON OBJECTION.] Upon an objection to a service 
 22.19  tariff, or to a filing proposing a price increase, price 
 22.20  decrease, or change in terms and conditions for a noncompetitive 
 22.21  retail public telecommunications service under subdivision 2 or 
 22.22  3, the commission may: 
 22.23     (1) allow the service tariff, price increase, price 
 22.24  decrease, or change in terms and conditions to become effective 
 22.25  while the commission considers the objection; 
 22.26     (2) allow a proposed price increase to become effective 
 22.27  subject to refund while the commission considers the objection; 
 22.28  or 
 22.29     (3) suspend the service tariff, price increase, price 
 22.30  decrease, or change in terms and conditions while the commission 
 22.31  considers the objection. 
 22.32     Subd. 7.  [NONCOMPETITIVE SERVICE CHANGE; REASONS TO GRANT 
 22.33  OBJECTION.] The commission may grant an objection under this 
 22.34  section and suspend, modify, or reject a proposed service 
 22.35  filing, price change, or change in terms and conditions of a 
 22.36  noncompetitive retail public telecommunications service if the 
 23.1   proposed price of the service is below cost, or if the proposed 
 23.2   price, terms, or conditions of the noncompetitive retail public 
 23.3   telecommunications service will harm competition or will violate 
 23.4   any law, rule, order, or agreement. 
 23.5      Subd. 8.  [SERVICE SUBJECT TO EFFECTIVE 
 23.6   COMPETITION.] Retail public telecommunications services that are 
 23.7   subject to effective competition and are offered by an incumbent 
 23.8   telecommunications carrier with more than 250,000 access lines 
 23.9   in Minnesota are subject to section 237A.05. 
 23.10     Subd. 9.  [SERVICE SUBJECT TO EMERGING COMPETITION.] Retail 
 23.11  public telecommunications services that are subject to emerging 
 23.12  competition and are offered by an incumbent telecommunications 
 23.13  carrier with more then 250,000 access lines in Minnesota are 
 23.14  subject to section 237A.12. 
 23.15     Subd. 10.  [PROMOTIONAL ACTIVITIES.] An incumbent 
 23.16  telecommunications carrier operating pursuant to this section 
 23.17  may offer or discontinue offering special incentives, discounts, 
 23.18  packaged offerings, temporary price waivers, or other 
 23.19  promotions, or to offer individual contracts, as provided for in 
 23.20  sections 237A.15, 237A.16, and 237A.20. 
 23.21     Subd. 11.  [UNIVERSAL SERVICE FUND 
 23.22  ELIGIBILITY.] Eligibility of an incumbent telecommunications 
 23.23  carrier for support from the state universal service fund is 
 23.24  governed by section 237A.05. 
 23.25     Subd. 12.  [REDUCTION IN SWITCHED ACCESS CHARGES.] (a) 
 23.26  Within 60 days of the effective date of this act, an incumbent 
 23.27  telecommunications carrier serving more than 250,000 access 
 23.28  lines in Minnesota must reduce its average intrastate 
 23.29  per-minute-of-use price for switched interexchange access to 
 23.30  levels that do not exceed its average interstate 
 23.31  per-minute-of-use price for similar switched interexchange 
 23.32  access in effect on the effective date of this act.  An 
 23.33  incumbent telecommunications carrier may propose and the 
 23.34  commission may approve further reductions in switched access 
 23.35  charges.  Switched access charges also must be considered for 
 23.36  reductions as an offset to payments received by the incumbent 
 24.1   telecommunications carrier from the Minnesota universal service 
 24.2   fund.  The commission, on its own motion or in response to a 
 24.3   complaint, may order further reductions in switched access 
 24.4   charges after notice and hearing. 
 24.5      (b) Prices for switched interexchange access reduced 
 24.6   pursuant to this section must not be increased for three years 
 24.7   from the effective date of this act.  Thereafter, any proposed 
 24.8   increase in the prices for switched interexchange access must be 
 24.9   approved by the commission after notice and the opportunity for 
 24.10  hearing. 
 24.11     (c) After three years from the effective date of this act, 
 24.12  and until such time as the commission determines that switched 
 24.13  interexchange access prices are subject to effective 
 24.14  competition, an incumbent telecommunications carrier serving 
 24.15  more than 250,000 access lines may not increase the price of its 
 24.16  switched interexchange access by more than five percent in any 
 24.17  calendar year. 
 24.18     (d) Any reductions in charges for intrastate switched 
 24.19  interexchange access prices resulting from compliance with this 
 24.20  section must be passed on for the benefit of consumers in 
 24.21  Minnesota. 
 24.22     Sec. 12.  [237A.11] [REGULATING SMALLER INCUMBENT 
 24.23  CARRIERS.] 
 24.24     Subdivision 1.  [REGULATORY AUTHORITY GENERALLY.] Except as 
 24.25  provided in paragraph (b), retail public telecommunications 
 24.26  services offered by an incumbent telecommunications carrier that 
 24.27  serves between 50,000 and 250,000 access lines in Minnesota must 
 24.28  be regulated pursuant to this chapter and other applicable state 
 24.29  law, except for sections 237A.09, 237A.10, and 237A.13. 
 24.30     Subd. 2.  [ELECTING REGULATION.] An incumbent 
 24.31  telecommunications carrier that serves between 50,000 and 
 24.32  250,000 access lines in Minnesota may elect to be regulated in 
 24.33  the same manner as an incumbent telecommunications carrier with 
 24.34  greater that 250,000 access lines.  An eligible carrier may make 
 24.35  an election under this paragraph by filing notice of the 
 24.36  election with the commission.  An election under this 
 25.1   subdivision becomes effective 180 days from the date the notice 
 25.2   of the election is filed with the commission, unless accepted by 
 25.3   the commission before the expiration of 180 days. 
 25.4      Sec. 13.  [237A.12] [REGULATING EMERGING COMPETITIVE 
 25.5   SERVICES.] 
 25.6      Subdivision 1.  [REGULATORY AUTHORITY GENERALLY.] (a) The 
 25.7   commission shall exercise flexible regulatory oversight over 
 25.8   emerging competitive retail public telecommunications services 
 25.9   as provided in this section.  A retail public telecommunications 
 25.10  service subject to emerging competition must be flexibly 
 25.11  regulated if the commission finds competition exists for the 
 25.12  service, but the service has not been found subject to effective 
 25.13  competition pursuant to section 237A.07.  
 25.14     (b) In response to a petition to classify a retail public 
 25.15  telecommunications service as subject to emerging competition, 
 25.16  the commission, after notice, and the opportunity for expedited 
 25.17  hearing, shall make its determination within 120 days of the 
 25.18  filing of the petition.  
 25.19     (c) A telecommunications carrier shall maintain a tariff on 
 25.20  file with the commission containing the prices, terms, and 
 25.21  conditions of its retail public telecommunications services 
 25.22  subject to emerging competition. 
 25.23     Subd. 2.  [WHEN EMERGING COMPETITIVE SERVICE CHANGE TAKES 
 25.24  EFFECT.] (a) Price decreases for emerging competitive retail 
 25.25  public telecommunications services become effective five days, 
 25.26  excluding weekends and state holidays, after filing with the 
 25.27  commission subject to subdivisions 3 to 5.  The filing must 
 25.28  contain a cost study demonstrating that the new price is above 
 25.29  the commission-defined cost of providing the service, including 
 25.30  the imputed price of any wholesale elements as may be required 
 25.31  by the commission. 
 25.32     (b) Service filings, price increases, and changes in terms 
 25.33  and conditions for emerging competitive retail public 
 25.34  telecommunications services are effective ten days after filing 
 25.35  with the commission, subject to subdivisions 3, 4, and 5. 
 25.36     Subd. 3.  [OBJECTIONS, NOTICE, HEARING, DETERMINATION.] The 
 26.1   commission may hear an objection filed by any interested person, 
 26.2   including the commission staff, regarding an emerging 
 26.3   competitive retail public telecommunications service filing or a 
 26.4   filing proposing a price increase, price decrease, or change in 
 26.5   terms and conditions of an emerging competitive retail public 
 26.6   telecommunications service, if the objection is filed within ten 
 26.7   days of a filing proposing a service filing, price decrease, 
 26.8   price increase, or change in terms and conditions.  After notice 
 26.9   and the opportunity for expedited hearing, the commission shall 
 26.10  make its determination on the service filing, price increase, 
 26.11  price decrease, and change in terms and conditions within 60 
 26.12  days of the filing of the objection.  An objection to the 
 26.13  classification of a retail public telecommunications service as 
 26.14  emerging competitive must be considered by the commission 
 26.15  pursuant to subdivision 1. 
 26.16     Subd. 4.  [IMMEDIATE ACTIONS BY COMMISSION ON 
 26.17  OBJECTION.] Upon an objection to a service filing or to a filing 
 26.18  proposing a price increase, price decrease, or change in terms 
 26.19  and conditions for a retail public telecommunications service 
 26.20  subject to emerging competition pursuant to this section, the 
 26.21  commission may: 
 26.22     (1) allow the service filing, price increase, price 
 26.23  decrease, or change in terms and conditions to become effective 
 26.24  while the commission considers the objection; 
 26.25     (2) allow a proposed price increase to become effective 
 26.26  subject to refund while the commission considers the objection; 
 26.27  or 
 26.28     (3) suspend the service filing, price increase, price 
 26.29  decrease, or change in terms and conditions while the commission 
 26.30  considers the objection. 
 26.31     Subd. 5.  [REASONS TO GRANT OBJECTION.] The commission may 
 26.32  grant an objection under this section and suspend, modify, or 
 26.33  reject a proposed service filing, price change, or change in 
 26.34  terms and conditions of an emerging competitive retail public 
 26.35  telecommunications service if the proposed price of the service 
 26.36  is below the commission-defined cost of providing the service, 
 27.1   including the imputed price of any wholesale service elements as 
 27.2   may be required by the commission or if the proposed price, 
 27.3   terms, or conditions of the emerging competitive retail public 
 27.4   telecommunications service will harm competition or will violate 
 27.5   any law, rule, or order. 
 27.6      Subd. 6.  [CLASSIFYING RETAIL PUBLIC SERVICES.] (a) Except 
 27.7   for the following enumerated noncompetitive retail public 
 27.8   telecommunications services, public telecommunications services 
 27.9   regulated under section 237A.27, and any retail public 
 27.10  telecommunications services declared subject to effective 
 27.11  competition by the commission or its predecessor, all other 
 27.12  retail public telecommunications services offered by a 
 27.13  telecommunications carrier are deemed subject to emerging 
 27.14  competition.  The following retail public telecommunications 
 27.15  services offered by a telecommunications carrier are 
 27.16  noncompetitive until reclassified by the commission as either 
 27.17  emerging competitive or effectively competitive: 
 27.18     (1) residence dial tone access line service; 
 27.19     (2) business dial tone access line service; 
 27.20     (3) extended area service; 
 27.21     (4) other services that are included in the tariffed price 
 27.22  for residence or business dial tone access line service; and 
 27.23     (5) emergency services including 911. 
 27.24  Combining these services with other retail public 
 27.25  telecommunications services does not change this classification. 
 27.26  The commission shall regulate public interest pay phones to the 
 27.27  extent permitted by federal law. 
 27.28     (b) A telecommunications carrier may request classification 
 27.29  of a service filed after the effective date of this act as 
 27.30  emerging competitive.  An interested person may object to the 
 27.31  classification pursuant to subdivision 1. 
 27.32     (c) Within 30 days after the effective date of this act, an 
 27.33  incumbent telecommunications carrier that serves more than 
 27.34  250,000 access lines in Minnesota shall file a compliance tariff 
 27.35  revising the tariffs of its existing retail public 
 27.36  telecommunications services in order to classify those retail 
 28.1   public telecommunications services in accordance with this 
 28.2   section and sections 237A.07 and 237A.10.  The tariff revisions 
 28.3   become effective ten days after filing with the commission.  If 
 28.4   the compliance tariff fails to properly classify an existing 
 28.5   retail public telecommunications service in accordance with this 
 28.6   section, upon objection filed within ten days by any interested 
 28.7   person, including the commission staff, the commission shall 
 28.8   order an incumbent telecommunications carrier that serves more 
 28.9   than 250,000 access lines in Minnesota to immediately revise its 
 28.10  compliance tariff consistent with this section. 
 28.11     Sec. 14.  [237A.13] [REGULATING LONG DISTANCE CARRIERS, 
 28.12  COMPETITIVE ACCESS PROVIDERS, AND COMPETITIVE LOCAL EXCHANGE 
 28.13  CARRIERS.] 
 28.14     Subdivision 1.  [REGULATED ACTIVITIES.] (a) Services 
 28.15  provided by long distance telecommunications carriers, 
 28.16  competitive access providers, and competitive local exchange 
 28.17  carriers are subject to statutory and administrative regulation 
 28.18  in accordance with this section. 
 28.19     (b) The commission shall not require rate of return 
 28.20  regulation or investigation of earnings under section 237A.03, 
 28.21  paragraph (c). 
 28.22     (c) The commission shall permit tariffs and price lists to 
 28.23  become effective on not less than one nor more than ten days 
 28.24  after filing with the commission.  Tariffs filed under this 
 28.25  paragraph are for informational purposes only. 
 28.26     (d) The commission shall not require cost documentation 
 28.27  upon the filing of a new service or the filing of a change in 
 28.28  existing prices. 
 28.29     (e) Pursuant to section 237A.23, the commission may hear 
 28.30  and resolve complaints by interested persons based upon the 
 28.31  price, cost, or terms and conditions of any service.  The 
 28.32  commission may impose any appropriate remedies in the 
 28.33  consideration and adjudication of the complaint.  Complaints 
 28.34  under this section must be resolved within 60 days. 
 28.35     (f) Long distance telecommunications carriers, competitive 
 28.36  access providers, and competitive local exchange carriers 
 29.1   operating under this section may offer or discontinue offering 
 29.2   special incentives, discounts, packaged offerings, temporary 
 29.3   price waivers, promotions, or individual contracts as provided 
 29.4   for in sections 237A.14, 237A.16, and 237A.20.  Documentation of 
 29.5   costs, however, may differ for parties in different market 
 29.6   positions. 
 29.7      Subd. 2.  [RULES.] The commission shall establish rules by 
 29.8   December 1, 2000, for levels of regulation of long distance 
 29.9   telecommunications carriers, competitive access providers, 
 29.10  competitive local exchange carriers, and the charging of prices 
 29.11  for long distance and local exchange service that recognize, 
 29.12  when appropriate, the differences in the market positions of 
 29.13  various telecommunications carriers in relevant markets in the 
 29.14  state during the transition to competitive markets, including 
 29.15  the documentation of costs.  The commission rules adopted under 
 29.16  this section must be consistent with subdivision 1. 
 29.17     Sec. 15.  [237A.14] [REGULATING INTEGRATED COMMUNICATIONS 
 29.18  SERVICES PROVIDERS.] 
 29.19     (a) Services of an integrated communications services 
 29.20  provider are subject to regulation in accordance with this 
 29.21  section.  
 29.22     (b) An integrated communications provider is not subject to 
 29.23  rate of return regulation or investigation of earnings pursuant 
 29.24  to section 237A.03, subdivision 3, paragraph (a). 
 29.25     (c) The filing of tariffs by an integrated communications 
 29.26  provider is optional and not required.  The commission shall 
 29.27  permit optionally filed tariffs and price lists to become 
 29.28  effective immediately upon filing. 
 29.29     (d) The commission shall not require cost documentation 
 29.30  upon the filing of a new service or the filing of a change in 
 29.31  existing prices. 
 29.32     (e) Except as specifically provided in chapter 238, 
 29.33  municipalities and other local governmental units are hereby 
 29.34  preempted from regulating the prices, terms, and conditions of 
 29.35  any service provided by an integrated communications services 
 29.36  provider.  The use of the public right-of-way by an integrated 
 30.1   communications services provider is governed by and subject to 
 30.2   sections 237A.37 to 237A.42. 
 30.3      (f) Except to the extent it may possess market power in a 
 30.4   relevant market, an integrated communications services provider 
 30.5   is not subject to the complaint jurisdiction of the public 
 30.6   utilities commission.  For purposes of this paragraph, market 
 30.7   power is defined as a market share exceeding 60 percent.  An 
 30.8   integrated communications services provider has full standing 
 30.9   and authority to file and pursue a commission complaint, whether 
 30.10  for itself, its customers, or both, against a telecommunications 
 30.11  carrier. 
 30.12     (g) In addition to providing all the services set forth in 
 30.13  section 237A.01, subdivision 14, before an incumbent local 
 30.14  exchange carrier may qualify as an integrated communications 
 30.15  services provider, it must have reduced its intrastate access 
 30.16  charges to a level equal to or less than its interstate access 
 30.17  charges on a per-minute-of-use basis.  These access charge 
 30.18  reductions must be in place for a minimum of six months before 
 30.19  the incumbent local exchange carrier qualifies as an integrated 
 30.20  communications services provider under this paragraph. 
 30.21     Sec. 16.  [237A.15] [SPECIAL INCENTIVES, DISCOUNTS, AND 
 30.22  PROMOTIONS.] 
 30.23     Subdivision 1.  [PROMOTIONAL ACTIVITIES AUTHORITY, 
 30.24  GENERALLY.] A telecommunications carrier may offer or 
 30.25  discontinue offering any special incentive, discount, temporary 
 30.26  price waiver, or other promotion one day after filing a tariff 
 30.27  with prices, terms, and conditions with the commission.  A 
 30.28  telecommunications carrier may combine a retail public 
 30.29  telecommunications service with any other telecommunications 
 30.30  service or nontelecommunications service or offering in order to 
 30.31  create a special incentive, discount, temporary price waiver, or 
 30.32  other promotion. 
 30.33     Subd. 2.  [REVENUES GENERATED BY PROMOTION.] The total 
 30.34  revenue generated by the special incentive, discount, temporary 
 30.35  price waiver, or other promotion must cover the total of all the 
 30.36  commission-defined costs of any retail public telecommunications 
 31.1   services included in the special incentive, discount, temporary 
 31.2   price waiver, or other promotion, including the imputed price of 
 31.3   any wholesale service elements as may be required by the 
 31.4   commission. 
 31.5      Subd. 3.  [STAND-ALONE SERVICE 
 31.6   AVAILABILITY.] Notwithstanding the ability to offer special 
 31.7   incentives, discounts, temporary price waivers, or other 
 31.8   promotions, a telecommunications services carrier shall continue 
 31.9   to make its retail public telecommunications services available 
 31.10  on a stand-alone basis under applicable tariffs. 
 31.11     Subd. 4.  [PROMOTION AVAILABLE FOR RESALE.] A special 
 31.12  incentive, discount, temporary price waiver, or other promotion 
 31.13  approved by the commission in accordance with this section must 
 31.14  be made available for resale to the extent required by 
 31.15  applicable law, rule, order, or agreement. 
 31.16     Subd. 5.  [PROMOTION PERIODS AND EXTENSIONS.] (a) A special 
 31.17  incentive, discount, temporary price waiver, or other promotion 
 31.18  may be in effect for up to 90 days and may be renewed for 
 31.19  another 90-day period.  
 31.20     (b) A special incentive, discount, temporary price waiver, 
 31.21  or other promotion involving only long distance services may be 
 31.22  in effect for up to 180 days and may be extended for another 180 
 31.23  days with a waiver approved by the commission. 
 31.24     Subd. 6.  [COMPLAINT RESOLUTION.] (a) Within ten days of 
 31.25  the filing of a special incentive, discount, temporary price 
 31.26  waiver, or other promotion, an interested person including the 
 31.27  commission staff may file a complaint under section 237A.23, 
 31.28  with respect to the special incentive, discount, temporary price 
 31.29  waiver, or other promotion.  
 31.30     (b) Upon complaint, the commission may suspend, modify or 
 31.31  reject a special incentive, discount, temporary price waiver, or 
 31.32  other promotion upon a showing of good cause.  After notice and 
 31.33  an opportunity for expedited hearing, the commission shall 
 31.34  resolve all complaints within 30 days of the filing of a 
 31.35  complaint.  
 31.36     (c) Upon complaint that the total revenue generated by the 
 32.1   special incentive, discount, temporary price waiver, or other 
 32.2   promotion fails to cover the total of all the commission-defined 
 32.3   costs of any retail public telecommunications services included 
 32.4   in the special incentive, discount, temporary price waiver, or 
 32.5   other promotion, including the imputed price of any wholesale 
 32.6   service elements as may be required by the commission, the 
 32.7   telecommunications carrier filing the special incentive, 
 32.8   discount, temporary price waiver, or other promotion bears the 
 32.9   burden of demonstrating that it covers cost.  
 32.10     (d) With respect to a complaint relating to matters other 
 32.11  than costs, the burden of proof is on the party filing the 
 32.12  complaint.  
 32.13     (e) An interested person filing a complaint may request the 
 32.14  production of confidential cost information supporting filing 
 32.15  the special incentive, discount, temporary price waiver, or 
 32.16  other promotion.  The commission shall allow the discovery of 
 32.17  confidential cost information subject to an appropriate 
 32.18  protective order and subject to any other safeguards necessary 
 32.19  to protect the telecommunications carrier filing the special 
 32.20  incentive, discount, temporary price waiver, or other promotion 
 32.21  from competitive harm. 
 32.22     Sec. 17.  [237A.16] [SERVICE PACKAGES.] 
 32.23     Subdivision 1.  [AUTHORITY TO PACKAGE SERVICES, GENERALLY.] 
 32.24  A telecommunications carrier may offer or discontinue offering a 
 32.25  package of services.  A telecommunications carrier may combine a 
 32.26  retail public telecommunications service or services with any 
 32.27  other telecommunications service or nontelecommunications 
 32.28  service or offering in order to create a packaged offering. 
 32.29     Subd. 2.  [REVENUES GENERATED BY PACKAGING SERVICES.] The 
 32.30  total revenue generated by the packaged offering must cover the 
 32.31  total of all the commission-defined costs of any retail public 
 32.32  telecommunications services included in the packaged offering, 
 32.33  including the imputed price of any wholesale service elements as 
 32.34  may be required by the commission. 
 32.35     Subd. 3.  [STAND-ALONE SERVICE 
 32.36  AVAILABILITY.] Notwithstanding the ability to offer packages of 
 33.1   services, a telecommunications carrier must continue to make its 
 33.2   retail public telecommunications services available on a 
 33.3   stand-alone basis under applicable tariffs. 
 33.4      Subd. 4.  [PACKAGE AVAILABLE FOR RESALE.] A packaged 
 33.5   service offering approved by the commission in accordance with 
 33.6   this section must be made available for resale to the extent 
 33.7   required by applicable law, rule, order, or agreement. 
 33.8      Subd. 5.  [WHEN PACKAGE BECOMES EFFECTIVE.] A packaged 
 33.9   offering filed pursuant to this section becomes effective ten 
 33.10  days after filing and may be a temporary or permanent offering 
 33.11  at the discretion of the telecommunications carrier filing the 
 33.12  packaged offering. 
 33.13     Subd. 6.  [OBJECTION RESOLUTION.] (a) The commission may 
 33.14  hear an objection filed by any interested person, including the 
 33.15  commission staff, regarding a packaged offering, if the 
 33.16  objection is filed within ten days of the filing of the packaged 
 33.17  offering.  After notice and the opportunity for expedited 
 33.18  hearing, the commission shall make its determination on the 
 33.19  packaged offering within 60 days of the filing of the objection. 
 33.20     (b) Upon objection, the commission may suspend, modify, or 
 33.21  reject the packaged offering if the total revenue generated by 
 33.22  the packaged offering fails to cover the total of all the 
 33.23  commission-defined costs of any retail public telecommunications 
 33.24  services included in the packaged offering, including the 
 33.25  imputed price of any wholesale service elements as may be 
 33.26  required by the commission, or if the proposed packaged offering 
 33.27  will harm competition or will violate any law, rule, or order.  
 33.28  The telecommunications carrier filing the packaged offering 
 33.29  bears the burden of demonstrating that it covers costs.  
 33.30     (c) With respect to a complaint relating to matters other 
 33.31  than costs, the burden of proof is on the party filing the 
 33.32  complaint.  
 33.33     (d) An interested person filing a complaint may request the 
 33.34  production of confidential cost information supporting the 
 33.35  filing of the packaged offering.  The commission shall allow the 
 33.36  discovery of confidential cost information subject to an 
 34.1   appropriate protective order and subject to any other safeguards 
 34.2   necessary to protect the telecommunications carrier filing the 
 34.3   packaged offering from competitive harm.  Nothing in this 
 34.4   chapter precludes the application of state or federal antitrust, 
 34.5   consumer protection, trade practices laws, or regulations to 
 34.6   packages under this section. 
 34.7      Sec. 18.  [237A.18] [RECLASSIFYING SERVICES.] 
 34.8      The commission may consider a petition filed by any 
 34.9   interested person, including the commission staff to reclassify 
 34.10  any existing retail public telecommunications service previously 
 34.11  classified as noncompetitive, emerging competitive, or 
 34.12  competitive.  The interested person filing the petition bears 
 34.13  the burden of proving that the current classification of a 
 34.14  retail public telecommunications service should be changed 
 34.15  pursuant to the criteria set forth in this chapter.  In response 
 34.16  to a petition to reclassify an existing retail public 
 34.17  telecommunications service or services the commission, after 
 34.18  notice and the opportunity for hearing, shall make its 
 34.19  determination within 120 days of the filing of the petition.  
 34.20  The retail public telecommunications service that is the subject 
 34.21  of a reclassification petition shall remain in effect under the 
 34.22  terms of its current classification pending resolution of the 
 34.23  reclassification petition. 
 34.24     Sec. 19.  [237A.19] [NOTICE REQUIREMENTS.] 
 34.25     All telecommunications carriers shall provide notice of 
 34.26  public telecommunications service filings, individual contracts, 
 34.27  special incentives, discounts, promotions, packages, or filings 
 34.28  proposing price increases, price decreases, or changes in terms 
 34.29  and conditions to existing public telecommunications services to 
 34.30  any telecommunications carrier identified by the commission as 
 34.31  having requested the notice and to the office of the attorney 
 34.32  general.  Notice must be provided by electronic means or in any 
 34.33  other manner approved by the commission and designed to 
 34.34  effectuate same-day delivery, on the date of any filing made 
 34.35  with the commission.  Proof of notice must be filed with the 
 34.36  commission, together with the service filing, individual 
 35.1   contract, special incentive, discount, promotion, package, or 
 35.2   other filing.  The commission shall maintain and regularly 
 35.3   update a service list of telecommunications carriers requesting 
 35.4   notice of filings made by other telecommunications carriers.  A 
 35.5   telecommunications carrier or the office of the attorney general 
 35.6   requesting notice shall provide the name, title, and address, 
 35.7   including electronic delivery information, of the person to whom 
 35.8   it wants notice sent, and shall provide the commission with 
 35.9   timely updates should information change. 
 35.10     Sec. 20.  [237A.20] [REGULATING INDIVIDUAL SERVICE 
 35.11  CONTRACTS.] 
 35.12     Subdivision 1.  [SERVICE APPLICATION; INFORMATION.] A 
 35.13  telecommunications carrier regulated under section 237A.09, 
 35.14  237A.10, or 237A.11, may file a verified application with the 
 35.15  commission for authorization to provide a retail public 
 35.16  telecommunications service on an individual contract basis to a 
 35.17  specific customer.  The application shall describe each retail 
 35.18  public telecommunications service to be offered, the customer to 
 35.19  be served, the price of the service to be offered, and an 
 35.20  affidavit from a company representative attesting that the price 
 35.21  covers the total of all commission-defined costs, including the 
 35.22  imputed price of any wholesale service element as may be 
 35.23  required by the commission.  Customer name and location, upon 
 35.24  request of the applicant, must be maintained as confidential 
 35.25  information for review only by the commission.  The commission 
 35.26  shall maintain a public file containing nonconfidential 
 35.27  information regarding the verified application.  Any 
 35.28  information, other than customer name and location included with 
 35.29  the application and designated by the telecommunications carrier 
 35.30  as confidential information, must be available for review within 
 35.31  ten days of filing, subject to an appropriate protective 
 35.32  agreement, and subject to other safeguards as may be necessary 
 35.33  to protect the telecommunications carrier filing the application 
 35.34  from competitive harm.  A determination of effective competition 
 35.35  under section 237A.07, is not necessary to file an application 
 35.36  or to have an application granted by the commission under this 
 36.1   section.  This section is subject to paragraph (c) and section 
 36.2   237A.07, paragraph (c).  The procedures set forth in this 
 36.3   section apply uniformly to all telecommunications carriers. 
 36.4      Subd. 2.  [COMMISSION DETERMINATION ON SERVICE 
 36.5   APPLICATION.] The commission shall approve a verified 
 36.6   application without a hearing ten days after filing, unless an 
 36.7   interested person, including the commission staff, objects to 
 36.8   the verified application within the ten-day period.  If an 
 36.9   objection is filed, the commission shall approve or deny the 
 36.10  application, after giving notice and the opportunity for 
 36.11  expedited hearing, within 30 days from the date of the filing of 
 36.12  the verified application, giving consideration to the 
 36.13  requirements of any contract negotiations.  If the commission 
 36.14  has not acted on an application within this time frame, it is 
 36.15  deemed approved. 
 36.16     (b) The commission shall deny the verified application upon 
 36.17  a finding that the contract fails to cover the 
 36.18  commission-defined cost of any retail public telecommunications 
 36.19  service included in the contract, including the imputed price of 
 36.20  wholesale service elements, as may be required by the commission 
 36.21  or that the contract does not comply with applicable law, rule, 
 36.22  or order.  If the commission requires the imputation of 
 36.23  wholesale service elements, a telecommunications carrier may 
 36.24  impute the prices of wholesale service elements comparable to 
 36.25  those that are available to a competing telecommunications 
 36.26  carrier providing the same retail public telecommunications 
 36.27  services included in the contract.  The comparable wholesale 
 36.28  service elements must be available in the local exchange area or 
 36.29  areas in which the retail public telecommunications service will 
 36.30  be offered under contract, and must be used by the applicant 
 36.31  telecommunications carrier in providing the retail public 
 36.32  telecommunications services included in the contract. 
 36.33     (c) Upon the filing of an objection by any interested 
 36.34  person, including commission staff, the applicant bears the 
 36.35  burden of proof to demonstrate that the service is priced above 
 36.36  the cost of providing that service, as provided in paragraph 
 37.1   (b).  An interested person, including the commission staff, 
 37.2   filing an objection may request the production of confidential 
 37.3   cost information supporting a contract.  The commission shall 
 37.4   allow the discovery of confidential cost information subject to 
 37.5   an appropriate protective order, and subject to any other 
 37.6   safeguards necessary to protect the applicant from competitive 
 37.7   harm. 
 37.8      Subd. 3.  [CONTRACT AVAILABLE FOR RESALE.] A contract 
 37.9   approved by the commission in accordance with this section must 
 37.10  be made available for resale to the extent required by 
 37.11  applicable law, rule, order, or agreement. 
 37.12     (d) Competitive carriers regulated under section 237A.13, 
 37.13  and integrated communications services providers under section 
 37.14  237A.14, are exempt from the application, approval, complaint, 
 37.15  and resale requirements of this subdivision. 
 37.16     Sec. 21.  [237A.21] [EXAMINATION OF BOOKS AND RECORDS.] 
 37.17     Nothing in this chapter precludes the commission from 
 37.18  exercising its authority to require the accounting or reporting 
 37.19  systems necessary to allow a proper allocation of investments, 
 37.20  costs, or expenses that are joint or common to both public 
 37.21  telecommunications services and other services. 
 37.22     Sec. 22.  [237A.23] [COMPLAINT ALLEGING VIOLATION. ] 
 37.23     Subdivision 1.  [COMPLAINT.] A complaint may be made by any 
 37.24  interested person, including commission staff, setting forth any 
 37.25  act or omission by a telecommunications carrier alleged to be in 
 37.26  violation of any provision of this chapter or any order, rule, 
 37.27  or agreement approved by the commission.  
 37.28     Subd. 2.  [COMMISSION AUTHORITY IN COMPLAINT 
 37.29  RESOLUTION.] The commission has full and express authority to 
 37.30  hear, decide complaints, and provide appropriate remedies 
 37.31  between end-user customers and their telecommunications carrier, 
 37.32  and between two or more telecommunications carriers relating to 
 37.33  prices, terms, and conditions of providing public 
 37.34  telecommunications services, including without limitation, 
 37.35  matters relating to the enforcement, prices, terms, and 
 37.36  conditions of interconnection agreements and interexchange 
 38.1   access between telecommunications carriers. 
 38.2      Subd. 3.  [NOTICE AND HEARING.] Upon filing of the 
 38.3   complaint, the commission shall set the time and place of 
 38.4   hearing and at least ten days' notice thereof, must be given to 
 38.5   the party who is the subject of the complaint.  The commission 
 38.6   shall serve a copy of any complaint upon the respondent 
 38.7   telecommunications carrier within three business days of the 
 38.8   filing of the complaint. 
 38.9      Subd. 4.  [REASONS TO GRANT OBJECTION.] Upon complaint or 
 38.10  objection under sections 237A.07 and 237A.13, the commission may 
 38.11  suspend, modify, or reject a proposed service filing, price 
 38.12  change, or change in terms and conditions if the proposed price 
 38.13  of the retail public telecommunications service is below the 
 38.14  commission-defined cost of providing the service, including the 
 38.15  imputed price of wholesale service elements as may be required 
 38.16  by the commission, or if the proposed price, terms, or 
 38.17  conditions of the retail public telecommunications service will 
 38.18  harm competition or will violate any law, rule, order, or 
 38.19  agreement.  
 38.20     Subd. 5.  [JOINDER.] All matters upon which complaint may 
 38.21  be founded may be joined in one hearing and a complaint is not 
 38.22  defective for misjoinder or nonjoinder of parties or causes, 
 38.23  either before the commission or on review by the courts.  The 
 38.24  persons the commission allows to intervene must be joined and 
 38.25  heard, along with the complainant and the party who is the 
 38.26  subject of the complaint. 
 38.27     Subd. 6.  [BURDEN OF PROOF.] Except with respect to issues 
 38.28  relating to the cost of providing a retail public 
 38.29  telecommunications service, the burden is on the party 
 38.30  complaining to show a violation of this chapter or an order or 
 38.31  rule of the commission issued pursuant to this chapter.  This 
 38.32  burden of demonstrating the costs of providing a retail public 
 38.33  telecommunications service is on the telecommunications carrier 
 38.34  offering that service. 
 38.35     Subd. 7.  [COMMISSION ORDER.] After conclusion of the 
 38.36  hearing, the commission shall make and file an order containing 
 39.1   its findings of fact and decision.  A copy of the order must be 
 39.2   served upon the party who is the subject of the complaint or 
 39.3   that party's attorney. 
 39.4      Subd. 8.  [RULES OF PRACTICE AND PROCEDURE.] Conduct of the 
 39.5   hearings and rendering of decisions are governed by the rules of 
 39.6   practice and procedure adopted by the commission. 
 39.7      Subd. 9.  [DEADLINE FOR RESOLUTION; ENFORCEMENT.] Unless 
 39.8   another time period is set forth in this chapter, the complaint 
 39.9   must be resolved by agreement or commission order containing its 
 39.10  findings of fact and decision within 90 days of the filing of 
 39.11  the complaint.  The commission may enforce its order by an 
 39.12  action in any court having jurisdiction or has otherwise 
 39.13  provided by law or agreement.  Nothing contained in this section 
 39.14  limits the remedies that may be available to a complaining party.
 39.15     Sec. 23.  [237A.24] [VALIDITY OF ORDERS; SUBSTANTIAL 
 39.16  COMPLIANCE WITH ACT SUFFICIENT.] 
 39.17     A substantial compliance by the commission with the 
 39.18  requirements of this chapter is sufficient to give effect to all 
 39.19  rules, orders, acts, and regulations of the commission, and they 
 39.20  must not be declared inoperative, illegal, or void for any 
 39.21  omission of a technical nature, in respect to those rules, 
 39.22  orders, acts, and regulations. 
 39.23     Sec. 24.  [237A.25] [RULES.] 
 39.24     The commission has the right and is empowered to adopt and 
 39.25  enforce reasonable rules as may be required to administer this 
 39.26  chapter. 
 39.27     Sec. 25.  [237A.26] [APPEALING COMMISSION ORDER.] 
 39.28     Any provider of telecommunications services and any other 
 39.29  person in interest that is aggrieved by a final order or 
 39.30  determination of the commission under this chapter may file a 
 39.31  notice of appeal in the supreme court asking for a review of the 
 39.32  commission's final order.  A notice of appeal must be filed 
 39.33  within 30 days after the entry of the commission's final order.  
 39.34  Every notice of appeal must name the commission as appellee and 
 39.35  identify the order from which the appeal is taken.  Any person 
 39.36  whose rights may be directly affected by the appeal may appear 
 40.1   and become a party, or the supreme court, upon proper notice, 
 40.2   may order any person to be joined as a party. 
 40.3      Sec. 26.  [237A.27] [INTEREXCHANGE ACCESS PRICES, TERMS, 
 40.4   AND CONDITIONS; INTERCONNECTION SERVICE QUALITY STANDARDS AND 
 40.5   ENFORCEMENT.] 
 40.6      Subdivision 1.  [COMMISSION AUTHORITY.] Notwithstanding any 
 40.7   law to the contrary, the commission retains regulatory authority 
 40.8   over interconnection agreements between telecommunications 
 40.9   carriers and interexchange access prices, terms, and conditions. 
 40.10     Subd. 2.  [WHEN INTEREXCHANGE ACCESS CHANGE TAKES 
 40.11  EFFECT.] Interexchange access tariffs, price increases, 
 40.12  decreases, and changes in terms and conditions for existing 
 40.13  interexchange access for telecommunications carriers become 
 40.14  effective 30 days after filing with the commission. 
 40.15     Subd. 3.  [OBJECTIONS.] If an interested person including 
 40.16  the commission staff files an objection to the interexchange 
 40.17  access tariff before its effective date, the commission, after 
 40.18  notice and the opportunity for hearing, shall consider any 
 40.19  objections it deems to have merit and make its determination on 
 40.20  the interexchange access tariff within 90 days of the filing of 
 40.21  the objection. 
 40.22     Subd. 4.  [COMPLAINT; REMEDIES.] The commission may grant a 
 40.23  complaint under this section and suspend, modify, or reject a 
 40.24  proposed interexchange access tariff. 
 40.25     Subd. 5.  [IMMEDIATE ACTIONS BY COMMISSION ON 
 40.26  OBJECTION.] Upon the filing of an objection to an access tariff, 
 40.27  the commission may: 
 40.28     (1) allow the interexchange access service tariff to become 
 40.29  effective while the commission considers the objection; 
 40.30     (2) allow the interexchange access service tariff to become 
 40.31  effective subject to refund while the commission considers the 
 40.32  objection; or 
 40.33     (3) suspend the interexchange access service tariff while 
 40.34  the commission considers the objection. 
 40.35     Subd. 6.  [RULES FOR WHOLESALE SERVICE QUALITY AND 
 40.36  INTERCONNECTION.] Within six months following the effective date 
 41.1   of this act, the commission shall establish rules concerning 
 41.2   wholesale service quality standards and for the enforcement of 
 41.3   interconnection agreements between telecommunications carriers.  
 41.4   The commission shall establish service standards to address 
 41.5   interconnection and resale between telecommunications carriers, 
 41.6   and the provision of unbundled network elements by any 
 41.7   telecommunications carrier required by law to provide unbundled 
 41.8   network elements.  Any wholesale service quality standards must 
 41.9   consider the extent to which telecommunications carriers other 
 41.10  than incumbent telecommunications carriers are required to 
 41.11  provide wholesale services pursuant to federal law. 
 41.12     Subd. 7.  [ENFORCEMENT.] The commission shall consider 
 41.13  complaints alleging violations of such service quality standards 
 41.14  and interconnection arrangements under the provisions of section 
 41.15  237A.23. 
 41.16     Sec. 27.  [237A.28] [RETAIL SERVICE QUALITY STANDARDS.] 
 41.17     Subdivision 1.  [DEADLINE FOR ESTABLISHING 
 41.18  STANDARDS.] Within nine months following the effective date of 
 41.19  this act, the commission shall establish minimum retail service 
 41.20  quality standards applicable to telecommunications carriers.  
 41.21  The standards shall address performance in a range of service 
 41.22  quality and reliability areas for both residential and business 
 41.23  retail customers. 
 41.24     Subd. 2.  [CONSIDERATION IN DEVELOPING STANDARDS.] In 
 41.25  determining the applicability of standards and in developing the 
 41.26  retail service quality standards, the commission shall allow for 
 41.27  the possibility of a competitive local exchange carrier's 
 41.28  failure to meet the standards, not because of its own fault, but 
 41.29  because of a failure of the incumbent local exchange carrier to 
 41.30  meet the wholesale service quality standards for the provision 
 41.31  of a wholesale service underlying the competitive local exchange 
 41.32  carrier's retail service.  
 41.33                             ARTICLE 2 
 41.34                       CONFORMING AMENDMENTS 
 41.35     Section 1.  Minnesota Statutes 1999 Supplement, section 
 41.36  125B.20, subdivision 2, is amended to read: 
 42.1      Subd. 2.  [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) 
 42.2   Priority will be given to a school district that has not 
 42.3   received access to interactive video, data connection, or both 
 42.4   under the telecommunications access grant program.  Districts 
 42.5   may apply for a grant under this subdivision to:  (1) establish 
 42.6   connections among school districts, and between school districts 
 42.7   and the state information infrastructure administered by the 
 42.8   department of administration under section 16B.465; or (2) if 
 42.9   such a connection meeting minimum electronic connectivity 
 42.10  standards is already established, enhance telecommunications 
 42.11  capacity for a school district.  A district may submit a grant 
 42.12  application for interactive television with higher capacity 
 42.13  connections in order to maintain multiple simultaneous 
 42.14  connections.  To ensure coordination among school districts, a 
 42.15  school district must submit its grant application to the council 
 42.16  through the telecommunications access grant cluster of which the 
 42.17  district is a member.  
 42.18     (b) The application must, at a minimum, contain information 
 42.19  to document for each applicant school district the following: 
 42.20     (1) that the proposed connection meets the minimum 
 42.21  standards and employs an open network architecture that will 
 42.22  ensure interconnectivity and interoperability with other 
 42.23  education institutions and libraries; 
 42.24     (2) that the proposed connection and system will be 
 42.25  connected to the state information infrastructure through the 
 42.26  department of administration under section 16B.465; 
 42.27     (3) that the proposed connection and system will be 
 42.28  connected to the higher education telecommunication network and 
 42.29  that a governance agreement has been adopted which includes 
 42.30  agreements between the school district system, a higher 
 42.31  education regional council, libraries, and coordinating 
 42.32  entities; 
 42.33     (4) the telecommunication vendor selected to provide 
 42.34  service from the district to a state information infrastructure 
 42.35  hub or to a more cost-effective connection point to the state 
 42.36  information infrastructure; and 
 43.1      (5) other information, as determined by the commissioner in 
 43.2   consultation with the education telecommunications council, to 
 43.3   ensure that connections are coordinated, meet state standards 
 43.4   and are cost-effective, and that service is provided in an 
 43.5   efficient and cost-effective manner. 
 43.6      (c) A school district may include, in its grant 
 43.7   application, telecommunications access for collaboration with 
 43.8   nonprofit arts organizations for the purpose of educational 
 43.9   programs, or access for a secondary media center that:  (1) is a 
 43.10  member of a multitype library system; (2) is open during periods 
 43.11  of the year when classroom instruction is occurring; and (3) has 
 43.12  licensed school media staff on site. 
 43.13     (d) The Minnesota education telecommunications council 
 43.14  shall award grants and the funds shall be dispersed by the 
 43.15  commissioner.  Grant applications must be submitted to the 
 43.16  commissioner by a telecommunications access grant cluster 
 43.17  organization.  For the purposes of the grant, a school district 
 43.18  may include a charter school under section 124D.10, or the 
 43.19  Minnesota state academies.  Based on the award made by the 
 43.20  council, all grants under this subdivision shall be paid by the 
 43.21  commissioner directly to a school district (unless this 
 43.22  application requests that the funds be paid to the coordinating 
 43.23  agency).  Nonpublic schools as defined in section 237.065 
 43.24  123B.41, subdivision 2 9, located within the district may access 
 43.25  the network.  The nonpublic school is responsible for actual 
 43.26  costs for connection from the school to the access site. 
 43.27     (e) Money awarded under this section may be used only for 
 43.28  the purposes explicitly stated in the grant application. 
 43.29     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 43.30  216A.03, subdivision 7, is amended to read: 
 43.31     Subd. 7.  [FILING APPROVED WITHOUT HEARING.] A filing with 
 43.32  the commission may be deemed approved by the commission after 60 
 43.33  days of filing, unless the commission, a commissioner, or any 
 43.34  other person requests the filing be set aside for action by the 
 43.35  commission.  The commission may designate, by standing order, 
 43.36  categories or types of filings that are eligible for approval 
 44.1   under this subdivision.  Complaint filings, petitions for 
 44.2   rulemakings, or petitions to increase rates are not eligible for 
 44.3   designation.  The commission must publish a weekly notice of the 
 44.4   filings that are approved without other action by the 
 44.5   commission, and shall issue a written order approving the filing 
 44.6   upon passage of the 60-day term.  Orders approved under this 
 44.7   subdivision are subject to reconsideration, as provided in 
 44.8   section 216B.27 or the commission's rules of practice and 
 44.9   procedure, and nothing in this subdivision affects the rights of 
 44.10  any entity under section 216B.17 or 237.081 chapter 237A. 
 44.11     Sec. 3.  Minnesota Statutes 1998, section 216B.16, 
 44.12  subdivision 2, is amended to read: 
 44.13     Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
 44.14  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
 44.15  commission a schedule modifying or resulting in a change in any 
 44.16  rates then in force as provided in subdivision 1, the commission 
 44.17  may suspend the operation of the schedule by filing with the 
 44.18  schedule of rates and delivering to the affected utility a 
 44.19  statement in writing of its reasons for the suspension at any 
 44.20  time before the rates become effective.  The suspension shall 
 44.21  not be for a longer period than ten months beyond the initial 
 44.22  filing date except as provided in this subdivision or 
 44.23  subdivision 1a.  During the suspension the commission shall 
 44.24  determine whether all questions of the reasonableness of the 
 44.25  rates requested raised by persons deemed interested or by the 
 44.26  administrative division of the department of public service can 
 44.27  be resolved to the satisfaction of the commission.  If the 
 44.28  commission finds that all significant issues raised have not 
 44.29  been resolved to its satisfaction, or upon petition by ten 
 44.30  percent of the affected customers or 250 affected customers, 
 44.31  whichever is less, it shall refer the matter to the office of 
 44.32  administrative hearings with instructions for a public hearing 
 44.33  as a contested case pursuant to chapter 14, except as otherwise 
 44.34  provided in this section.  The commission may order that the 
 44.35  issues presented by the proposed rate changes be bifurcated into 
 44.36  two separate hearings as follows:  (1) determination of the 
 45.1   utility's revenue requirements and (2) determination of the rate 
 45.2   design.  Upon issuance of both administrative law judge reports, 
 45.3   the issues shall again be joined for consideration and final 
 45.4   determination by the commission.  All prehearing discovery 
 45.5   activities of state agency intervenors shall be consolidated and 
 45.6   conducted by the department of public service.  If the 
 45.7   commission does not make a final determination concerning a 
 45.8   schedule of rates within ten months after the initial filing 
 45.9   date, the schedule shall be deemed to have been approved by the 
 45.10  commission; except if: 
 45.11     (1) an extension of the procedural schedule has been 
 45.12  granted under subdivision 1a, in which case the schedule of 
 45.13  rates is deemed to have been approved by the commission on the 
 45.14  last day of the extended period of suspension; or 
 45.15     (2) a settlement has been submitted to and rejected by the 
 45.16  commission and the commission does not make a final 
 45.17  determination concerning the schedule of rates, the schedule of 
 45.18  rates is deemed to have been approved 60 days after the initial 
 45.19  or, if applicable, the extended period of suspension. 
 45.20     (b) If the commission finds that it has insufficient time 
 45.21  during the suspension period to make a final determination of a 
 45.22  case involving changes in general rates because of the need to 
 45.23  make a final determination of another previously filed case 
 45.24  involving changes in general rates under this section or section 
 45.25  237.075 chapter 237A, the commission may extend the suspension 
 45.26  period to the extent necessary to allow itself 20 working days 
 45.27  to make the final determination after it has made a final 
 45.28  determination in the previously filed case.  An extension of the 
 45.29  suspension period under this paragraph does not alter the 
 45.30  setting of interim rates under subdivision 3. 
 45.31     (c) For the purposes of this section, "final determination" 
 45.32  means the initial decision of the commission and not any order 
 45.33  which may be entered by the commission in response to a petition 
 45.34  for rehearing or other further relief.  The commission may 
 45.35  further suspend rates until it determines all those petitions. 
 45.36     Sec. 4.  Minnesota Statutes 1998, section 238.02, is 
 46.1   amended by adding a subdivision to read: 
 46.2      Subd. 21.  [INTEGRATED COMMUNICATIONS SERVICES 
 46.3   PROVIDER.] "Integrated communications services provider" means a 
 46.4   telecommunications carrier which is authorized under law to 
 46.5   provide, and which does in fact provide, all of the following 
 46.6   services within the state of Minnesota:  
 46.7      (1) interstate, interLATA telecommunications services; 
 46.8      (2) intrastate, interLATA telecommunications services; 
 46.9      (3) intrastate, intraLATA telecommunications services; 
 46.10     (4) local exchange service; 
 46.11     (5) cable television or satellite direct broadcast 
 46.12  television services; and 
 46.13     (6) high-speed Internet access.  For purposes of this 
 46.14  chapter, high-speed Internet access is defined as access to the 
 46.15  Internet at transmission speeds in excess of 56 kilobits per 
 46.16  second. 
 46.17     Sec. 5.  Minnesota Statutes 1998, section 238.03, is 
 46.18  amended to read: 
 46.19     238.03 [APPLICABILITY.] 
 46.20     This chapter applies to every cable communications system 
 46.21  and every cable communications company as defined in section 
 46.22  238.02, operating within the state, including a cable 
 46.23  communications company which that constructs, operates, and 
 46.24  maintains a cable communications system in whole or in part 
 46.25  through the facilities of a person franchised to offer common or 
 46.26  contract carrier services, except as otherwise provided in this 
 46.27  chapter or chapter 237A.  Persons possessing franchises for any 
 46.28  of the purposes of this chapter are subject to this chapter 
 46.29  although no property has been acquired, business transacted, or 
 46.30  franchises exercised. 
 46.31     Sec. 6.  Minnesota Statutes 1998, section 297A.25, is 
 46.32  amended by adding a subdivision to read: 
 46.33     Subd. 84.  [COMMUNICATIONS EQUIPMENT EXEMPTION.] (a) 
 46.34  Beginning July 1, 2000, the gross receipts from the sale of, and 
 46.35  the storage, use or consumption of, communications equipment and 
 46.36  transmission equipment purchased or leased for use primarily in 
 47.1   the sale of communication services are exempt.  
 47.2      (b) For purposes of this subdivision:  
 47.3      (1) "Communications equipment" means tangible personal 
 47.4   property utilized in receiving, initiating, amplifying, 
 47.5   processing, transmitting, retransmitting, switching, or 
 47.6   monitoring communication services.  Communications equipment 
 47.7   also includes ancillary equipment, related computer hardware, 
 47.8   and software that is required to regulate, control, or enable 
 47.9   communications equipment to accomplish its intended function.  
 47.10     (2) "Transmission equipment" means tangible personal 
 47.11  property used in the transportation of communication services 
 47.12  including, but not limited to, cable, fiber, radio transmitters 
 47.13  and receivers, satellite equipment, or microwave equipment.  
 47.14  Transmission equipment also includes ancillary equipment, 
 47.15  related computer hardware, and software that is required to 
 47.16  regulate, control, or enable transmission equipment to 
 47.17  accomplish its intended function. 
 47.18     (3) "Communication services" includes telecommunications 
 47.19  services that are taxable under section 297A.01, subdivision 3, 
 47.20  paragraph (f), Internet access, or cable television services 
 47.21  taxable under section 297A.01, subdivision 3, paragraph (g). 
 47.22     Sec. 7.  Minnesota Statutes 1998, section 308A.210, 
 47.23  subdivision 8, is amended to read: 
 47.24     Subd. 8.  [ADVANCED TELECOMMUNICATION SERVICE; DEFINED.] 
 47.25  "Advanced telecommunications service" includes any service that 
 47.26  would be classified as a flexibly priced service within the 
 47.27  meaning of section 237.761, subdivision 4, or 
 47.28  non-price-regulated service within the meaning of section 
 47.29  237.761, subdivision 4, under chapter 237; provided that, a 
 47.30  service may be an advanced telephone service whether or not the 
 47.31  telephone company has adopted an alternative rate plan within 
 47.32  the meaning of section 237.76. 
 47.33     Sec. 8.  Minnesota Statutes 1998, section 403.09, is 
 47.34  amended to read: 
 47.35     403.09 [ENFORCEMENT.] 
 47.36     At the request of the department of administration, the 
 48.1   attorney general may commence proceedings in the district court 
 48.2   against any person or public or private body to enforce the 
 48.3   provisions of this chapter. 
 48.4      At the request of the public utilities commission, the 
 48.5   attorney general may commence proceedings before the district 
 48.6   court pursuant to section 237.27 chapter 237A, against any 
 48.7   public utility providing telephone service which refuses to 
 48.8   comply with this chapter. 
 48.9      Sec. 9.  [COMMISSION REPORT TO LEGISLATURE.] 
 48.10     Given the rapidly changing nature of the telecommunications 
 48.11  industry, on September 1, 2002, the public utilities commission 
 48.12  shall report to the legislature on whether the residential and 
 48.13  small business customers have benefited from lessened regulation 
 48.14  of telecommunications carriers, the extent of competition in 
 48.15  relevant markets in Minnesota, and whether new investment, 
 48.16  network improvements, and technological advancements have 
 48.17  occurred throughout Minnesota as a result of the implementation 
 48.18  of this act.  The legislature shall consider this report in 
 48.19  determining whether further changes in the level of regulation 
 48.20  of telecommunications carriers are necessary. 
 48.21     Sec. 10.  [INSTRUCTION TO REVISOR.] 
 48.22     The revisor of statutes shall renumber each section of 
 48.23  Minnesota Statutes listed in column A with the number listed in 
 48.24  column B.  The revisor shall also make any necessary 
 48.25  cross-reference changes in Minnesota Statutes and Minnesota 
 48.26  Rules consistent with this renumbering instruction. 
 48.27             A                     B
 48.28       237.02               237A.02, subd. 1
 48.29       237.03               237A.02, subd. 2
 48.30       237.04               237A.39, subd. 1
 48.31       273.05               237A.39, subd. 2
 48.32       237.12               237A.29
 48.33       237.15               237A.02, subd. 3
 48.34       237.115              237A.22
 48.35       237.121              237A.30
 48.36       237.16, subd. 1      237A.40
 49.1        237.162              237A.37
 49.2        237.163              237A.38
 49.3        237.164              237A.05
 49.4        237.17               237A.31
 49.5        237.19 and 237.20    237A.48
 49.6        237.23               237A.35
 49.7        237.231              237A.34
 49.8        237.24               237A.03, subd. 7
 49.9        237.295              237A.03, subd. 6
 49.10       237.30               237A.03, subd. 8
 49.11       237.33               237A.47, subd. 1 
 49.12       237.34               237A.47, subd. 2
 49.13       237.35               237A.47, subd. 3
 49.14       237.36               237A.47, subd. 4
 49.15       237.37               237A.47, subd. 5 
 49.16       237.38               237A.47, subd. 6
 49.17       237.39               237A.47, subd. 7
 49.18       237.40               237A.47, subd. 8
 49.19       237.45               237A.36
 49.20       237.46               237A.51
 49.21       237.461              237A.03, subd. 9
 49.22       237.462              237A.03, subd. 10
 49.23       237.49               237A.44
 49.24       237.50 to 237.56     237A.46
 49.25       237.66 to 237.663    237A.43
 49.26       237.69 to 237.711    237A.45
 49.27       237.73               237A.50
 49.28       237.74, subd. 5      237A.41
 49.29       237.75               237A.32
 49.30       237.79               237A.49
 49.31       237.80               237A.44
 49.32       237.81               237A.42
 49.33     Sec. 11.  [REPEALER.] 
 49.34     (a) Minnesota Statutes 1998, sections 237.01, subdivisions 
 49.35  1, 2, 3, 4, and 6; 237.011; 237.035; 237.06; 237.065; 237.067; 
 49.36  237.068; 237.069; 237.07; 237.071; 237.072; 237.075; 237.076; 
 50.1   237.081; 237.082; 237.09; 237.10; 237.11; 237.14; 237.16, 
 50.2   subdivisions 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 237.18; 
 50.3   237.21; 237.22; 237.25; 237.26; 237.27; 237.28; 237.44; 237.47; 
 50.4   237.57; 237.5799; 237.58; 237.59, subdivisions 1, 1a, 2, 3, 4, 
 50.5   5, 6, 8, 9, and 10; 237.60; 237.61; 237.62; 237.625; 237.626; 
 50.6   237.63; 237.64; 237.65; 237.67; 237.68; 237.74, subdivisions 1, 
 50.7   2, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 13; 237.76; 237.761; 
 50.8   237.762; 237.763; 237.764; 237.765; 237.766; 237.767; 237.768; 
 50.9   237.769; 237.770; 237.771; 237.772; 237.773; 237.774; and 
 50.10  237.775, are repealed.  
 50.11     (b) Minnesota Statutes 1999 Supplement, sections 237.036, 
 50.12  237.066, and 237.5799, are repealed. 
 50.13     (c) Laws 1995, chapter 156, section 25, is repealed. 
 50.14     Sec. 12.  [EFFECTIVE DATE.] 
 50.15     This act is effective the day following enactment.