1.1 	A bill for an act
1.2 	relating to telecommunications; clarifying enforcement authority; adding new 
1.3 	requirements for tariffs; protecting proprietary information; specifying criteria 
1.4 	for certificates of authority; terminating alternative regulation plans; adding 
1.5 	definitions; making technical corrections; removing obsolete provisions; making 
1.6 	conforming changes; amending Minnesota Statutes 2012, sections 216B.16, 
1.7 	subdivision 2; 237.01, subdivisions 6, 7, by adding subdivisions; 237.02; 237.035; 
1.8 	237.036; 237.065, subdivision 2; 237.066, subdivision 3; 237.081, subdivisions 
1.9 	1, 1a, 2, 4; 237.09; 237.115; 237.12, by adding a subdivision; 237.121; 237.295, 
1.10 	subdivision 2; 237.49; 237.491, subdivision 2; 237.661, subdivision 1; 237.663; 
1.11 	237.681, subdivision 5; 237.81; 308A.210, subdivision 8; 325F.693, subdivision 
1.12 	2; 412.014; 609.892, subdivision 1; proposing coding for new law in Minnesota 
1.13 	Statutes, chapter 237; repealing Minnesota Statutes 2012, sections 237.06; 
1.14 	237.067; 237.068; 237.069; 237.07; 237.071; 237.072; 237.075, subdivisions 1, 
1.15 	2, 3, 4, 5, 6, 7, 8, 9, 10, 11; 237.076; 237.082; 237.10; 237.11; 237.12, subdivision 
1.16 	2; 237.15; 237.155; 237.16, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 
1.17 	237.164; 237.18; 237.21; 237.22; 237.23; 237.231; 237.28; 237.295, subdivisions 
1.18 	1, 6; 237.30; 237.33; 237.34; 237.35; 237.36; 237.37; 237.38; 237.39; 237.40; 
1.19 	237.411; 237.414; 237.47; 237.57; 237.59, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, 
1.20 	10; 237.60, subdivisions 3, 4; 237.61; 237.626; 237.64; 237.66, subdivisions 1, 
1.21 	1a, 1c, 1d, 2, 2a, 3; 237.73; 237.74; 237.75; 237.76; 237.761; 237.762; 237.763; 
1.22 	237.764; 237.765; 237.766; 237.767; 237.768; 237.769; 237.770; 237.771; 
1.23 	237.772; 237.773, subdivisions 1, 2, 3, 4; 237.774; 237.775; 237.80.
1.24 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.25 	ARTICLE 1
1.26 	STATUTE MODERNIZATION

1.27 	Section 1. Minnesota Statutes 2012, section 237.01, is amended by adding a 
1.28 	subdivision to read:
1.29 		Subd. 1a.Advanced services. "Advanced services" means any of the following:
1.30 	(1) advanced services, as defined in Code of Federal Regulations, title 47, section 
1.31 	51.5;
2.1 	(2) informational services, as defined in United States Code, title 47, section 153, 
2.2 	paragraph (20);
2.3 	(3) internet protocol-enabled services, including, without limitation, Voice Over 
2.4 	Internet Protocol, regardless of how the service is defined, classified, interpreted, or 
2.5 	enforced by the Federal Communications Commission;
2.6 	(4) commercial mobile radio service, as defined in United States Code, title 47, 
2.7 	section 332; or
2.8 	(5) any telecommunications service not commercially available on the effective 
2.9 	date of this section.

2.10 	Sec. 2. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.11 	to read:
2.12 		Subd. 1b.Advanced services provider. "Advanced services provider" means a 
2.13 	a person or entity that provides any advanced services. An advanced services provider 
2.14 	may also be a telecommunications carrier.

2.15 	Sec. 3. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.16 	to read:
2.17 		Subd. 1c.Basic services. "Basic services" means one unbundled, single line, 
2.18 	unlimited usage, residential voice local exchange telephone service, or unbundled, single 
2.19 	line, unlimited usage, business voice local exchange telephone service. Basic services 
2.20 	does not include any state or federally authorized or mandated services.

2.21 	Sec. 4. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.22 	to read:
2.23 		Subd. 1d.Competitive local exchange carrier. "Competitive local exchange 
2.24 	carrier" or "CLEC" means a telecommunications carrier that is certified by the commission 
2.25 	to provide local service.

2.26 	Sec. 5. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.27 	to read:
2.28 		Subd. 2a.End user. "End user" means a retail customer of a telecommunications 
2.29 	provider.

2.30 	Sec. 6. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.31 	to read:
3.1 		Subd. 9.Wholesale telecommunications service. "Wholesale telecommunications 
3.2 	service" means either: (1) any telecommunications service offered under an interconnection 
3.3 	agreement between an incumbent local exchange carrier and a competitive local exchange 
3.4 	carrier under sections 251 and 252 of the 1996 Act; or (2) intrastate access service.

3.5 	Sec. 7. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
3.6 	to read:
3.7 		Subd. 10.1996 Act. "1996 Act" means the federal Telecommunications Act of 
3.8 	1996, Public Law 104-104, United States Code, title 47, section 151 et. seq.

3.9 	Sec. 8. Minnesota Statutes 2012, section 237.02, is amended to read:
3.10 	237.02 GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
3.11 	DEFINITIONS.
3.12 	(a) The Department of Commerce and the Public Utilities Commission are hereby 
3.13 	vested with the same jurisdiction and supervisory power outlined in this chapter. Effective 
3.14 	July 1, 2019, the duties granted to the Department of Commerce shall be transferred to 
3.15 	the Public Utilities Commission. The commissioner is authorized to transfer staff and 
3.16 	resources necessary to continue executing the duties under this chapter over telephone 
3.17 	and telecommunications companies doing business in this state as the commission's 
3.18 	predecessor, the railroad and warehouse commission, had over railroad and express 
3.19 	companies. 
3.20 	(b) The definitions set forth in sections 216A.02 and 216B.02 also apply to this 
3.21 	chapter.

3.22 	Sec. 9. Minnesota Statutes 2012, section 237.065, subdivision 2, is amended to read:
3.23 		Subd. 2.Basic and advanced telecommunication service; reduced rate. (a) 
3.24 	Notwithstanding the provisions of sections 237.09, and237.14, 237.60, subdivision 3, 
3.25 	and 237.74, each telephone company and telecommunications carrier that provides local 
3.26 	telephone service in a service area that includes a school that has classes within the 
3.27 	range from kindergarten to grade 12, a public library, or a telecommunication services 
3.28 	purchasing cooperative may provide, upon request, basic and advanced telecommunication 
3.29 	services at reduced or no cost to that school, library, or may provide, upon request, 
3.30 	advanced basic telecommunication services at reduced wholesale rates to the members 
3.31 	of a telecommunication services purchasing cooperative. For purposes of this section, 
3.32 	a "telecommunication services purchasing cooperative" means a cooperative organized 
3.33 	under section 308A.210. A school or library receiving telecommunications services at 
4.1 	reduced or no cost may not resell or sublease the discounted services. No members of a 
4.2 	telecommunication services purchasing cooperative may resell or sublease the discounted 
4.3 	services. A purchasing cooperative is not required to negotiate or provide a uniform rate 
4.4 	for its members. Telecommunications services shall be provided in accordance with 
4.5 	Public Law 104-104, and the regulations of the Federal Communications Commission 
4.6 	adopted under the act.
4.7 	(b) An agent that provides telecommunications services to a school or library may 
4.8 	request the favorable rate on behalf of and for the exclusive benefit of the school or library. 
4.9 	The school or library must authorize the agent to make the request of the local telephone 
4.10 	company or telecommunications carrier. The telephone company or telecommunications 
4.11 	carrier is not required to offer the same price discount to the agent that it would offer to the 
4.12 	school district or library. An agent that receives a price discount for telecommunications 
4.13 	services on behalf of a school or library may only resell or sublease the discounted 
4.14 	services to that school or library.
4.15 	(c) For the purposes of this subdivision, "school" includes a public school as defined 
4.16 	in section 120A.05, nonpublic, and church or religious organization schools that provide 
4.17 	instruction in compliance with sections 120A.22, 120A.24, and 120A.41.

4.18 	Sec. 10. Minnesota Statutes 2012, section 237.066, subdivision 3, is amended to read:
4.19 		Subd. 3.Rates. Notwithstanding section 237.09, or237.14, 237.60, subdivision 
4.20 	3, or 237.74, a telephone company or a telecommunications carrier may, individually or 
4.21 	in cooperation with other telephone companies or telecommunications carriers, develop 
4.22 	and offer basic or advanced telecommunications services at discounted or reduced rates 
4.23 	as a state government telecommunications pricing plan. Any basic telecommunications 
4.24 	services provided under any state government telecommunications pricing plan shall be 
4.25 	used exclusively by those entities described in subdivision 2 subject to the plan solely for 
4.26 	their own use and shall not be made available to any other entities by resale, sublease, 
4.27 	or in any other way.

4.28 	Sec. 11. [237.077] SCHEDULES, TARIFFS, AND INDIVIDUAL CONTRACTS.
4.29 		Subdivision 1.Filing requirements. Except as set forth in this section, 
4.30 	telecommunications carriers are not required to maintain or file any schedule, tariff, 
4.31 	contract, or agreement with the commission.
4.32 		Subd. 2.General provisions applicable to all tariffs. Any tariff filed with the 
4.33 	commission in accordance with this chapter must include all terms, conditions, rates, and 
4.34 	charges that apply to the services specified in the tariff.
5.1 		Subd. 3.Required tariff. (a) The telecommunications services described in 
5.2 	this subdivision require the filing of a tariff. Any tariff required to be filed under this 
5.3 	subdivision must be referred to as a required tariff.
5.4 	(b) Any telecommunications carrier that offers intrastate access services shall 
5.5 	maintain on file with the commission a tariff containing the terms, conditions, rates, and 
5.6 	charges the telecommunications carrier has established for such intrastate access services.
5.7 	(c) Every local exchange carrier that provides basic telecommunications service 
5.8 	shall maintain on file with the commission a tariff containing the terms, conditions, rates, 
5.9 	and charges for that service.
5.10 	(d) Subject to any applicable notice to end users required by this chapter, a required 
5.11 	tariff becomes effective 30 days after it is filed with the commission.
5.12 	(e) A person who objects to a required tariff shall file an objection within 20 days 
5.13 	of the filing of the required tariff. The person filing the required tariff may reply to the 
5.14 	objection within five days of the filing of the objection.
5.15 	(f) The commission shall review the required tariff, the objection, and the reply 
5.16 	within 60 days of the filing of the required tariff and shall issue an order approving the 
5.17 	required tariff or order that a contested case hearing be conducted under chapter 14.
5.18 		Subd. 4.Individual contracts permitted; no filing requirement. (a) 
5.19 	Notwithstanding any other provision of this chapter, a telecommunications carrier may 
5.20 	enter into an individual contract for providing retail or wholesale telecommunications 
5.21 	services, except for intrastate switched services. The contract may include, without 
5.22 	limitation, services that are subject to a tariff filed under this section that includes terms, 
5.23 	conditions, rates, and charges that are different from those in the telecommunications 
5.24 	carrier's tariff.
5.25 	(b) Except as required by federal or state law, any individual contract is not subject 
5.26 	to any filing or notice requirement, including, without limitation, a requirement that the 
5.27 	contract be filed with the commission.

5.28 	Sec. 12. Minnesota Statutes 2012, section 237.081, subdivision 1, is amended to read:
5.29 		Subdivision 1.Commission investigation. Whenever the commission believes that 
5.30 	a basic or wholesale telecommunications service is inadequate or cannot be obtained or 
5.31 	that an investigation of any matter relating to any telephone service should for any reason 
5.32 	be made, it may on its own motion investigate the service or matter with or without notice, 
5.33 	except that the commission shall give notice to a telephone company before it investigates 
5.34 	the level of rates charged by the company.

6.1 	Sec. 13. Minnesota Statutes 2012, section 237.081, subdivision 1a, is amended to read:
6.2 		Subd. 1a.Complaint investigation. Upon a complaint made against a telephone 
6.3 	company by any other provider of telephone service, by the governing body of a political 
6.4 	subdivision, or by no fewer than five percent or 100, whichever is the lesser number, 
6.5 	of the subscribers or spouses of subscribers of the particular telephone company, that 
6.6 	any of the rates, tolls, tariffs, charges, or schedules, or any regulation, measurement, 
6.7 	practice, act, or omission affecting or relating to the production, transmission, delivery, or 
6.8 	furnishing of telephone basic or wholesale telecommunications service or any service in 
6.9 	connection with telephone basic or wholesale telecommunications service is in any respect 
6.10 	unreasonable, insufficient, or unjustly discriminatory, or that any service is inadequate 
6.11 	or cannot be obtained, the commission, after notice to the telephone company, shall may
6.12 	 investigate the matters raised by the complaint.

6.13 	Sec. 14. Minnesota Statutes 2012, section 237.081, subdivision 2, is amended to read:
6.14 		Subd. 2.Procedure after investigation. (a) If, after making an investigation under 
6.15 	subdivision 1 or 1a, the commission finds that a significant factual issue raised has not 
6.16 	been resolved to its satisfaction, the commission shall follow the appropriate procedure 
6.17 	prescribed by this subdivision.
6.18 	(b) For an investigation concerning the reasonableness of the rates for noncompetitive
6.19 	 basic services of a telephone company whose general revenue requirement is determined 
6.20 	under section 237.075, the commission shall order the company to initiate a rate 
6.21 	proceeding in accordance with section 237.075. The commission shall allow the company 
6.22 	at least 120 days after the date of the commission's order to initiate the proceeding.
6.23 	(c) For other investigations, the commission shall may order that a contested case 
6.24 	hearing be conducted under chapter 14 unless the complainant, the telephone company, 
6.25 	and the commission agree that an expedited hearing under section 237.61 is appropriate.

6.26 	Sec. 15. Minnesota Statutes 2012, section 237.081, subdivision 4, is amended to read:
6.27 		Subd. 4.Establishment of rate and price. Whenever the commission finds, after 
6.28 	a proceeding under subdivision 2, that (1) a basic or wholesale telecommunications
6.29 	 service that can be reasonably demanded cannot be obtained, (2) that any rate, toll, tariff, 
6.30 	charge, or schedule, or any regulation, measurement, practice, act, or omission affecting 
6.31 	or relating to the production, transmission, delivery, or furnishing of telephone basic 
6.32 	or wholesale telecommunications service or any service in connection with telephone 
6.33 	service, is in any respect unreasonable, insufficient, or unjustly discriminatory, or (3) that 
6.34 	any basic or wholesale telecommunications service is inadequate, the commission shall 
7.1 	make an order respecting the tariff, regulation, act, omission, practice, or service that is 
7.2 	just and reasonable and, if applicable, shall establish just and reasonable rates and prices.

7.3 	Sec. 16. Minnesota Statutes 2012, section 237.09, is amended to read:
7.4 	237.09 DISCRIMINATION PROHIBITED.
7.5 		Subdivision 1.Generally. No telephone company, or any agent or officer thereof, 
7.6 	shall, directly or indirectly, in any manner, knowingly or willfully, charge, demand, 
7.7 	collect, or receive from any person, firm, or corporation, a greater or less compensation for 
7.8 	any intrastate basic or wholesale telecommunications service rendered or to be rendered 
7.9 	by it than it charges, demands, collects, or receives from any other firm, person, or 
7.10 	corporation for a like and contemporaneous intrastate service under similar circumstances.
7.11 		Subd. 2.Particular services. (a) A telephone company that offers or provides a
7.12 	 basic or wholesale telecommunications service or services, service elements, features, or 
7.13 	functionalities on a separate, stand-alone basis to any customer shall provide that service, 
7.14 	service element, feature, or functionality pursuant to tariff to all similarly situated persons, 
7.15 	including all telecommunications carriers and competitors. To the extent prohibited by 
7.16 	the Federal Communications Commission or Public Utilities Commission, a telephone 
7.17 	company shall not give preference or discriminate in providing basic or wholesale 
7.18 	telecommunications services, products, or facilities to an affiliate or to its own or an 
7.19 	affiliate's retail department that sells to consumers.
7.20 	(b) For purposes of establishing an appropriate rate or price floor for a rate for 
7.21 	a telephone basic or wholesale telecommunications service, a telephone company shall 
7.22 	impute, on a service-by-service basis, into the rate or price for that service, the tariffed rate 
7.23 	or price for the same services, service elements, or network functions that the company 
7.24 	provides to others who use it to provide a service that competes with the telephone service 
7.25 	offered by the company. A company is not required to impute a rate or price under this 
7.26 	paragraph if it demonstrates to the commission, in an expedited proceeding under section 
7.27 	237.61, that:
7.28 	(1) the competitor can obtain substantially equivalent services, service elements, 
7.29 	or network functions within the relevant market or geographic area on reasonably 
7.30 	comparable terms and conditions through self-provision or from a provider other than 
7.31 	the telephone company; or
7.32 	(2) application of the imputation requirement otherwise would be inconsistent with 
7.33 	the public interest.

8.1 	Sec. 17. Minnesota Statutes 2012, section 237.115, is amended to read:
8.2 	237.115 INFORMATION SUBJECT TO PROTECTIVE ORDER.
8.3 		Subdivision 1.Proprietary information to be protected. The commission shall 
8.4 	maintain the confidentiality of all proprietary information, including trade secrets, business 
8.5 	plans, and other confidential information that either becomes known to the commission or 
8.6 	comes into the commission's possession or control. The commission shall not disclose 
8.7 	proprietary information without adequate protection of the information and reasonable 
8.8 	notice to the affected person.
8.9 		Subd. 2.Protective order. The commission possesses the authority to enter into any 
8.10 	protective order necessary and appropriate to maintain the confidentiality of proprietary 
8.11 	information. The order may be entered only after giving the affected parties 30 days' 
8.12 	advance notice and the opportunity to comment on the proposed protective order.
8.13 		Subd. 3.Procedural requirements. In any meeting of the commission during 
8.14 	which information that is subject to a protective order is discussed, the commission shall 
8.15 	employ the procedures of section 14.60 to close to all persons who are not authorized 
8.16 	to obtain the information under the protective order that portion of the meeting during 
8.17 	which the information will be discussed and take other appropriate measures to ensure 
8.18 	that the data is not disclosed to persons who are not authorized to obtain the information 
8.19 	under the protective order.

8.20 	Sec. 18. Minnesota Statutes 2012, section 237.12, is amended by adding a subdivision 
8.21 	to read:
8.22 		Subd. 5.Discontinuance. (a) In the event that an interexchange carrier or a 
8.23 	competitive local exchange carrier fails to pay full compensation to a local exchange 
8.24 	carrier and a valid dispute has not been registered between the companies, the local 
8.25 	exchange carrier may discontinue accepting traffic from that interexchange carrier 
8.26 	or CLEC if the local exchange carrier provides to the commission notice of intent to 
8.27 	disconnect the interexchange carrier.
8.28 	(b) Any person objecting to the discontinuance must file an objection with the 
8.29 	commission within 20 days.
8.30 	(c) The commission will investigate and ascertain whether public convenience 
8.31 	requires continued service to the interexchange carrier or CLEC and, if the commission so 
8.32 	finds, the commission shall fix the compensation, terms, and conditions of the continuance 
8.33 	of service between the companies within 90 days of its receipt of an objection to the 
8.34 	discontinuance.

9.1 	Sec. 19. Minnesota Statutes 2012, section 237.121, is amended to read:
9.2 	237.121 PROHIBITED PRACTICES.
9.3 	(a) A telephone company or telecommunications carrier may not do any of the 
9.4 	following with respect to services regulated by the commission:
9.5 	(1) upon request, fail to disclose in a timely and uniform manner information 
9.6 	necessary for the design of equipment and services that will meet the specifications for 
9.7 	interconnection;
9.8 	(2) intentionally impair the speed, quality, or efficiency of services, products, or 
9.9 	facilities offered to a consumer under a tariff, contract, or price list;
9.10 	(3) fail to provide a service, product, or facility to a consumer other than a telephone 
9.11 	company or telecommunications carrier in accordance with its applicable tariffs, price 
9.12 	lists, or contracts and with the commission's rules and orders;
9.13 	(4) refuse to provide a service, product, or facility to a telephone company or 
9.14 	telecommunications carrier in accordance with its applicable tariffs, price lists, or contracts 
9.15 	and with the commission's rules and orders;
9.16 	(5) impose unreasonable or discriminatory restrictions on the resale of its services, 
9.17 	provided that:
9.18 	(i) it may require that residential service may not be resold as a different class of 
9.19 	service; and
9.20 	(ii) the commission may prohibit resale of services it has approved for provision for 
9.21 	not-for-profit entities at rates less than those offered to the general public; or
9.22 	(6) provide telephone service to a person acting as a telephone company or 
9.23 	telecommunications carrier if the commission has ordered the telephone company or 
9.24 	telecommunications carrier to discontinue service to that person.
9.25 	(b) A telephone company or telecommunications carrier may not violate a provision 
9.26 	of section 325F.693, with regard to any of the basic or wholesale telecommunications
9.27 	 services provided by the company or carrier.

9.28 	Sec. 20. Minnesota Statutes 2012, section 237.295, subdivision 2, is amended to read:
9.29 		Subd. 2.Assessment of costs. The department and commission shall quarterly, at 
9.30 	least 30 days before the start of each quarter, estimate the total of their expenditures 
9.31 	in the performance of their duties relating to telephone companies, other than amounts 
9.32 	chargeable to telephone companies under subdivision 1, 5, or 6. The remainder must 
9.33 	be assessed by the department to the telephone companies operating in this state in 
9.34 	proportion to their respective gross jurisdictional operating revenues from basic or 
9.35 	intrastate wholesale telecommunications services during the last calendar year. The 
10.1 	assessment must be paid into the state treasury within 30 days after the bill has been 
10.2 	transmitted via mail, personal delivery, or electronic service to the telephone companies. 
10.3 	The bill constitutes notice of the assessment and demand of payment. The total amount 
10.4 	that may be assessed to the telephone companies under this subdivision may not exceed 
10.5 	three-eighths of one percent of the total gross jurisdictional intrastate operating revenues 
10.6 	from basic or wholesale telecommunications services during the calendar year. Effective 
10.7 	July 1, 2019, this fee assessment cap shall be reduced to 3/32 of one percent of total 
10.8 	gross revenue derived from basic or wholesale telecommunications services during the 
10.9 	calendar year. The assessment for the third quarter of each fiscal year must be adjusted 
10.10 	to compensate for the amount by which actual expenditures by the commission and 
10.11 	department for the preceding fiscal year were more or less than the estimated expenditures 
10.12 	previously assessed. A telephone company with gross jurisdictional operating revenues of 
10.13 	less than $5,000 is exempt from assessments under this subdivision.

10.14 	Sec. 21. Minnesota Statutes 2012, section 237.49, is amended to read:
10.15 	237.49 COMBINED LOCAL ACCESS SURCHARGE.
10.16 		Subdivision 1.Local exchange carriers. Each local telephone company shall 
10.17 	collect from each subscriber an amount per telephone access line representing the total of 
10.18 	the surcharges required under sections 237.52, 237.70, and 403.11. Amounts collected 
10.19 	must be remitted to the commissioner of public safety in the manner prescribed in section 
10.20 	403.11. The commissioner of public safety shall divide the amounts received and deposit 
10.21 	them in the appropriate accounts. The commissioner of public safety may recover from 
10.22 	the agencies receiving the surcharges the personnel and administrative costs to collect and 
10.23 	distribute the surcharge. A company or the billing agent for a company shall list the 
10.24 	surcharges as one amount on a billing statement sent to a subscriber.
10.25 		Subd. 2.Advanced service providers. Advanced service providers shall collect 
10.26 	from each end user an amount per Minnesota telephone number assigned to the end user's 
10.27 	account representing the total number of surcharges required under sections 237.52, 
10.28 	237.70, and 403.11. Advanced service providers providing service over their owned or 
10.29 	leased facilities shall collect the surcharges on a line equivalency basis of 21 surcharges 
10.30 	for every 1.5 megabits per second of capacity. Amounts collected must be remitted 
10.31 	to the commissioner of public safety in the manner prescribed in section 403.11. The 
10.32 	commissioner of public safety shall divide the amounts received and deposit them in the 
10.33 	appropriate accounts. The commissioner of public safety may recover from the agencies 
10.34 	receiving the surcharges the personnel and administrative costs to collect and distribute 
11.1 	the surcharge. An advanced service provider or its billing agent shall list the surcharge 
11.2 	as one amount on a billing statement sent to a subscriber.

11.3 	Sec. 22. Minnesota Statutes 2012, section 237.491, subdivision 2, is amended to read:
11.4 		Subd. 2.Per number fee. (a) By January 15, 2006, the commissioner of commerce 
11.5 	shall report to the legislature and to the senate Committee on Jobs, Energy and Community 
11.6 	Development and the house of representatives Committee on Regulated Industries, 
11.7 	recommendations for the amount of and method for assessing a fee that would apply to 
11.8 	each service provider based upon the number of Minnesota telephone numbers in use by 
11.9 	current customers of the service provider.Annually, the commission shall set the fee 
11.10 	would be set at a level calculated to generate only the amount of revenue necessary to fund:
11.11 	(1) the telephone assistance program and the telecommunications access Minnesota 
11.12 	program at the levels established by the commission under sections 237.52, subdivision 
11.13 	2, and 237.70; and
11.14 	(2) the 911 emergency and public safety communications program at the levels 
11.15 	appropriated by law to the commissioner of public safety and the commissioner of 
11.16 	management and budget for purposes of sections 403.11, 403.113, 403.27, 403.30, and 
11.17 	403.31 for each fiscal year.
11.18 	(b) The recommendations must include any changes to Minnesota Statutes necessary 
11.19 	to establish the procedures whereby each service provider, to the extent allowed under 
11.20 	federal law, would collect and remit the fee proceeds to the commissioner of revenue. The 
11.21 	commissioner of revenue would allocate the fee proceeds to the three funding areas in 
11.22 	paragraph (a) and credit the allocations to the appropriate accounts.
11.23 	(c) The recommendations must be designed to allow the combined per telephone 
11.24 	number fee to be collected beginning July 1, 2006. The per access line fee used to collect 
11.25 	revenues to support the TAP, TAM, and 911 programs remains in effect until the statutory 
11.26 	changes necessary to implement the per telephone number fee have been enacted into 
11.27 	law and taken effect.
11.28 	(d) As part of the process of developing the recommendations and preparing the 
11.29 	report to the legislature required under paragraph (a), the commissioner of commerce 
11.30 	must, at a minimum, consult regularly with the Departments of Public Safety, Management 
11.31 	and Budget, and Administration, the Public Utilities Commission, service providers, 
11.32 	the chairs and ranking minority members of the senate and house of representatives 
11.33 	committees, subcommittees, and divisions having jurisdiction over telecommunications 
11.34 	and public safety, and other affected parties.

12.1 	Sec. 23. Minnesota Statutes 2012, section 237.663, is amended to read:
12.2 	237.663 LOADING.
12.3 	(a) Except as provided in paragraph (b) or (c), a telephone company or 
12.4 	telecommunications carrier providing local basic service shall not charge a telephone 
12.5 	service subscriber, as defined in section 325F.692, for a telephone or telecommunications 
12.6 	service that is not required by the commission to be offered and for which the subscriber 
12.7 	did not explicitly contract.
12.8 	(b) If a charge is assessed on a per-use basis for a service described in paragraph (a), 
12.9 	the charge must be applied as a credit to the subscriber's next monthly bill, if the subscriber 
12.10 	notifies the telephone company or telecommunications carrier that the subscriber did not 
12.11 	utilize the service or did not authorize the utilization of the service.
12.12 	(c) A telephone company or telecommunications carrier that receives a notification 
12.13 	from a telephone service subscriber under paragraph (b) shall inform the subscriber of the 
12.14 	ability to block the services from future use by the subscriber, and shall block the services 
12.15 	from future use by the subscriber, if the subscriber so requests. If a subscriber requests that 
12.16 	the carrier or company not block the service or later requests to have the block lifted, the 
12.17 	subscriber shall be responsible for charges caused by the future utilization of that service. 
12.18 	The carrier or company may not charge a recurring fee for blocking the service.

12.19 	Sec. 24. [237.84] CERTIFICATION, REGISTRATION, AND MAPPING.
12.20 		Subdivision 1.Application for certificate of authority; fee. (a) Before a 
12.21 	telecommunications carrier may offer basic or wholesale telecommunications services 
12.22 	to end users in Minnesota, the telecommunications carrier must receive a certificate of 
12.23 	authority from the commission. The commission shall issue a certificate of authority 
12.24 	within 30 days after receipt of a completed application. A telecommunications carrier 
12.25 	seeking a certificate of authority under this chapter shall submit an application on a form 
12.26 	prescribed by the commission. The form must require the telecommunications carrier to 
12.27 	provide the following information:
12.28 	(1) the legal name of the telecommunications carrier and any name under which the 
12.29 	telecommunications carrier does or will do business in Minnesota, as authorized by the 
12.30 	secretary of state;
12.31 	(2) a certification from the secretary of state authorizing the telecommunications 
12.32 	carrier to do business in Minnesota;
12.33 	(3) the address and telephone number of the telecommunications carrier, along 
12.34 	with contact information for the person responsible for ongoing communication with 
12.35 	the commission;
13.1 	(4) the legal name, address, and telephone number of the parent company of the 
13.2 	telecommunications carrier, if any;
13.3 	(5) a description of each service area in Minnesota in which the telecommunications 
13.4 	carrier proposes to offer telecommunications service;
13.5 	(6) a list of other states in which the telecommunications carrier offers 
13.6 	telecommunications service, including the type of telecommunications service offered; and
13.7 	(7) information demonstrating the financial, managerial, and technical ability of the 
13.8 	telecommunications carrier to provide telecommunications service in Minnesota.
13.9 	(b) The commission may collect from the applicant a filing fee not to exceed $300, 
13.10 	charged at the time an application is filed under this section.
13.11 		Subd. 2.Advanced service provider registration. (a) Advanced service providers 
13.12 	shall register with the commission within 60 days after beginning operation by submitting 
13.13 	a registration form as prescribed by the commission. The form must require the advanced 
13.14 	service provider to provide the following information:
13.15 	(1) the legal name of the advanced service provider and any name under which the 
13.16 	advanced service provider does or will do business in Minnesota, as authorized by the 
13.17 	secretary of state;
13.18 	(2) a certification from the secretary of state authorizing the advanced service 
13.19 	provider to do business in Minnesota;
13.20 	(3) the address and telephone number of the advanced service provider, along 
13.21 	with contact information for the person responsible for ongoing communication with 
13.22 	the commission; and
13.23 	(4) a description of the services being provided by the advanced service provider 
13.24 	in Minnesota.
13.25 	(b) The registration requirements in paragraph (a) do not apply to an advanced 
13.26 	service provider that:
13.27 	(1) is also a telecommunications carrier; and
13.28 	(2) has received a certificate of authority from the commission under this chapter.
13.29 		Subd. 3.Map. Every local exchange carrier authorized to provide telephone 
13.30 	exchange service under this chapter shall file and maintain a territorial map.

13.31 	Sec. 25. [237.85] ALTERNATIVE REGULATION PLANS TERMINATED.
13.32 	Any alternative regulation plan entered into under Minnesota Statutes 2010, chapter 
13.33 	237, automatically terminates in its entirety with respect to all services subject to the plan 
13.34 	and has no force or effect as of the effective date of this act.

14.1 	Sec. 26.  REPEALER.
 14.2 	Minnesota Statutes 2012, sections 237.06; 237.067; 237.068; 237.069; 237.07; 
14.3 	237.071; 237.072; 237.075, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11; 237.076; 
14.4 	237.082; 237.10; 237.11; 237.12, subdivision 2; 237.15; 237.155; 237.16, subdivisions 1, 
14.5 	3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 237.164; 237.18; 237.21; 237.22; 237.23; 237.231; 
14.6 	237.28; 237.295, subdivisions 1 and 6; 237.30; 237.33; 237.34; 237.35; 237.36; 237.37; 
14.7 	237.38; 237.39; 237.40; 237.411; 237.414; 237.47; 237.57; 237.59, subdivisions 1, 1a, 2, 
14.8 	3, 4, 5, 6, 8, 9, and 10; 237.60, subdivisions 3 and 4; 237.61; 237.626; 237.64; 237.66, 
14.9 	subdivisions 1, 1a, 1c, 1d, 2, 2a, and 3; 237.73; 237.74; 237.75; 237.76; 237.761; 237.762; 
14.10 	237.763; 237.764; 237.765; 237.766; 237.767; 237.768; 237.769; 237.770; 237.771; 
14.11 	237.772; 237.773, subdivisions 1, 2, 3, and 4; 237.774; 237.775; and 237.80, are repealed.

14.12 	ARTICLE 2
14.13 	CONFORMING CHANGES

14.14 	Section 1. Minnesota Statutes 2012, section 216B.16, subdivision 2, is amended to read:
14.15 		Subd. 2.Suspension of proposed rate; hearing; final determination defined. (a) 
14.16 	Whenever there is filed with the commission a schedule modifying or resulting in a change 
14.17 	in any rates then in force as provided in subdivision 1, the commission may suspend the 
14.18 	operation of the schedule by filing with the schedule of rates and delivering to the affected 
14.19 	utility a statement in writing of its reasons for the suspension at any time before the rates 
14.20 	become effective. The suspension shall not be for a longer period than ten months beyond 
14.21 	the initial filing date except as provided in this subdivision or subdivision 1a.
14.22 	(b) During the suspension the commission shall determine whether all questions of 
14.23 	the reasonableness of the rates requested raised by persons deemed interested or by the 
14.24 	department can be resolved to the satisfaction of the commission. If the commission 
14.25 	finds that all significant issues raised have not been resolved to its satisfaction, or upon 
14.26 	petition by ten percent of the affected customers or 250 affected customers, whichever is 
14.27 	less, it shall refer the matter to the Office of Administrative Hearings with instructions 
14.28 	for a public hearing as a contested case pursuant to chapter 14, except as otherwise 
14.29 	provided in this section.
14.30 	(c) The commission may order that the issues presented by the proposed rate 
14.31 	changes be bifurcated into two separate hearings as follows: (1) determination of the 
14.32 	utility's revenue requirements and (2) determination of the rate design. Upon issuance of 
14.33 	both administrative law judge reports, the issues shall again be joined for consideration 
14.34 	and final determination by the commission.
15.1 	(d) All prehearing discovery activities of state agency intervenors shall be 
15.2 	consolidated and conducted by the Department of Commerce.
15.3 	(e) If the commission does not make a final determination concerning a schedule of 
15.4 	rates within ten months after the initial filing date, the schedule shall be deemed to have 
15.5 	been approved by the commission; except if:
15.6 	(1) an extension of the procedural schedule has been granted under paragraph (f) or 
15.7 	subdivision 1a, in which case the schedule of rates is deemed to have been approved by 
15.8 	the commission on the last day of the extended period of suspension; or
15.9 	(2) a settlement has been submitted to and rejected by the commission and the 
15.10 	commission does not make a final determination concerning the schedule of rates, the 
15.11 	schedule of rates is deemed to have been approved 60 days after the initial or, if applicable, 
15.12 	the extended period of suspension.
15.13 	(f) If the commission finds that it has insufficient time during the suspension period 
15.14 	to make a final determination of a case involving changes in general rates because of the 
15.15 	need to make a final determination of any pending case involving changes in general rates 
15.16 	under this section or section 237.075, the commission may extend the suspension period 
15.17 	to allow up to a total of 90 additional calendar days to make the final determination. 
15.18 	An extension of the suspension period under this paragraph does not alter the setting of 
15.19 	interim rates under subdivision 3.
15.20 	(g) For the purposes of this section, "final determination" means the initial decision 
15.21 	of the commission and not any order which may be entered by the commission in response 
15.22 	to a petition for rehearing or other further relief. The commission may further suspend 
15.23 	rates until it determines all those petitions.

15.24 	Sec. 2. Minnesota Statutes 2012, section 237.01, subdivision 6, is amended to read:
15.25 		Subd. 6.Telecommunications carrier. "Telecommunications carrier" means a 
15.26 	person, firm, association, or corporation authorized to furnish one or more of the following 
15.27 	telephone services to the public, but not otherwise authorized to furnish local exchange 
15.28 	service: (1) interexchange telephone service; (2) local telephone service pursuant to a 
15.29 	certificate granted under the authority of section 237.16, subdivision 4, before August 1, 
15.30 	1995; or (3) local service pursuant to a certificate granted under section 237.16, for the 
15.31 	first time after August 1, 1995, except if granted to a successor to a telephone company 
15.32 	otherwise authorized to furnish local exchange service. Telecommunications carrier does 
15.33 	not include entities that derive more than 50 percent of their revenues from operator 
15.34 	services provided to transient locations such as hotels, motels, and hospitals. In addition, 
16.1 	telecommunications carrier does not include entities that provide centralized equal access 
16.2 	services.

16.3 	Sec. 3. Minnesota Statutes 2012, section 237.01, subdivision 7, is amended to read:
16.4 		Subd. 7.Telephone company. "Telephone company," means and applies to any 
16.5 	person, firm, association or any corporation, private or municipal, owning or operating 
16.6 	any telephone line or telephone exchange for hire, wholly or partly within this state, or 
16.7 	furnishing any telephone service to the public.
16.8 	A "telephone company" does not include a radio common carrier as defined in 
16.9 	subdivision 4. A telephone company which also conforms with the definition of a radio 
16.10 	common carrier is subject to regulation as a telephone company. However, none of 
16.11 	chapter 237 applies to telephone company activities which conform to the definition of 
16.12 	a radio common carrier.
16.13 	A "telephone company" does not include a telecommunications carrier as defined in 
16.14 	subdivision 6, except that a telecommunications carrier is a telephone company for the 
16.15 	purposes of section 222.36. A telephone company is not subject to section 237.74.

16.16 	Sec. 4. Minnesota Statutes 2012, section 237.035, is amended to read:
16.17 	237.035 TELECOMMUNICATIONS CARRIER EXEMPTION.
16.18 	(a) Telecommunications carriers are subject to regulation under this chapter only to 
16.19 	the extent required under paragraphs (b) to (e).
16.20 	(b) Telecommunications carriers shall comply with sections section237.121and 
16.21 	237.74.
16.22 	(c) Telecommunications carriers shall comply with section 237.16, subdivisions 
16.23 	8 and 9.
16.24 	(d) To the extent a telecommunications carrier offers local service, it shall obtain a 
16.25 	certificate under section 237.16 for that local service.
16.26 	(e) (d) In addition, a telecommunications carrier's local service is subject to this 
16.27 	chapter except that:
16.28 	(1) a telecommunications carrier is not subject to rate-of-return or earnings 
16.29 	investigations under section 237.075 or237.081; and.
16.30 	(2) a telecommunications carrier is not subject to section 237.22.

16.31 	Sec. 5. Minnesota Statutes 2012, section 237.036, is amended to read:
16.32 	237.036 COIN-OPERATED OR PUBLIC PAY TELEPHONES.
16.33 	(a) Neither commission approval nor a commission certificate is required to:
17.1 	(1) site a coin-operated or public pay telephone in the state; or
17.2 	(2) implement changes in service, services offered, rates, or location regarding a 
17.3 	coin-operated or public pay telephone. Registration under section 237.64 is required to 
17.4 	own or operate a coin-operated or public pay telephone in the state.
17.5 	(b) This section does not change the authority of other state or local government 
17.6 	entities to regulate aspects of coin-operated or public pay telephone ownership, location, 
17.7 	or operation; however, an entity may not regulate aspects of these services that it did not 
17.8 	regulate prior to May 26, 1999. The commission shall retain the authority delegated to 
17.9 	it under federal and state law to protect the public interest with regard to coin-operated 
17.10 	or public pay telephones.
17.11 	(c) Owners and operators of coin-operated or public pay telephones are exempt from 
17.12 	sections 237.06, 237.07, 237.075,237.09, 237.23, and237.295, and 237.39 and the annual 
17.13 	reporting requirement of section 237.11.
17.14 	(d) Owners of coin-operated or public pay telephones shall:
17.15 	(1) provide immediate coin-free access, to the extent technically feasible, to 911 
17.16 	emergency service or to another approved emergency service; and
17.17 	(2) provide free access to the telecommunications relay service for the 
17.18 	communication impaired.
17.19 	(e) Owners of coin-operated or public pay telephones must post at each coin-operated 
17.20 	or public pay telephone location:
17.21 	(1) customer service and complaint information, including the name, address, and 
17.22 	telephone number of the owner of the coin-operated or public pay telephone and the 
17.23 	operator service handling calls from the coin-operated or public pay telephone; a toll-free 
17.24 	number of the appropriate telephone company for the resolution of complaints; and the 
17.25 	toll-free number of the public utilities commission; and
17.26 	(2) a toll-free number at which consumers can obtain pricing information regarding 
17.27 	rates, charges, terms, and conditions of local and long-distance calls.

17.28 	Sec. 6. Minnesota Statutes 2012, section 237.661, subdivision 1, is amended to read:
17.29 		Subdivision 1.Antislamming duties of local telephone company. If a customer 
17.30 	has elected to exercise the right described in Minnesota Statutes 2010, section 237.66, 
17.31 	subdivision 1a, the telephone company serving the customer shall not process a request 
17.32 	to serve the customer by another telecommunications carrier without prior authorization 
17.33 	from the customer. If a customer has not elected to exercise the right described in 
17.34 	that subdivision, the company may process a request to serve the customer by another 
17.35 	telecommunications carrier.

18.1 	Sec. 7. Minnesota Statutes 2012, section 237.681, subdivision 5, is amended to read:
18.2 		Subd. 5.Exemption. A commercial shared services provider is exempt from
18.3 	 Minnesota Statutes 2010, section 237.16, if the private shared services are only provided 
18.4 	to tenants or for the provider's own use.

18.5 	Sec. 8. Minnesota Statutes 2012, section 237.81, is amended to read:
18.6 	237.81 SCOPE.
18.7 	To the extent they regulate telecommunications right-of-way users, sections 237.04; 
18.8 	237.16, subdivision 1;, 237.162;, and 237.163; and 237.74, subdivision 5, supersede 
18.9 	section 222.37, and any ordinance, regulation, or rule to the contrary.

18.10 	Sec. 9. Minnesota Statutes 2012, section 308A.210, subdivision 8, is amended to read:
18.11 		Subd. 8.Advanced telecommunication service; defined. "Advanced 
18.12 	telecommunications service" includes any service that would be classified as a flexibly 
18.13 	priced service within the meaning of section 237.761, subdivision 4, or non-price-regulated 
18.14 	service within the meaning of section 237.761, subdivision 4, provided that a service may 
18.15 	be an advanced telephone service whether or not the telephone company has adopted an 
18.16 	alternative rate plan within the meaning of section 237.76.

18.17 	Sec. 10. Minnesota Statutes 2012, section 325F.693, subdivision 2, is amended to read:
18.18 		Subd. 2.Slamming deemed consumer fraud. (a) It is fraud under section 325F.69
18.19 	to request a change in a telephone service subscriber's local exchange or interexchange 
18.20 	carrier without the subscriber's verified consent.
18.21 	(b) A telephone service subscriber may employ the remedies provided in section 
18.22 	237.66 for violations of paragraph (a). section 8.31may also be employed to remedy 
18.23 	violations of paragraph (a).
18.24 	(c) For the purposes of paragraph (a):
18.25 	(1) the consent of the telephone service subscriber may be verified utilizing any 
18.26 	method that is consistent with federal law or regulation;
18.27 	(2) compliance with applicable federal law and regulation, or state law and rule, 
18.28 	whichever is more stringent, is a complete defense to an allegation of consumer fraud 
18.29 	under paragraph (a); and
18.30 	(3) it is the responsibility of the company or carrier requesting a change in a telephone 
18.31 	service subscriber's company or carrier to verify that the subscriber has authorized the 
18.32 	change. A telephone company or telecommunications carrier providing local exchange 
18.33 	service who has been requested by another telephone company or telecommunications 
19.1 	carrier to process a change in a subscriber's carrier is only liable under this section if it 
19.2 	knowingly participates in processing a requested change that is unauthorized.
19.3 	Nothing in this section shall be construed to change a telephone company's or 
19.4 	telecommunications carrier's obligations under section 237.66.

19.5 	Sec. 11. Minnesota Statutes 2012, section 412.014, is amended to read:
19.6 	412.014 POWER TO OPERATE TELEPHONE LINES.
19.7 	Any statutory city heretofore or hereafter incorporated, in the territory of which 
19.8 	previous to such incorporation telephone lines have been constructed and operated by a 
19.9 	town as authorized by Minnesota Statutes 2010, sections 237.33 to 237.40, is hereby 
19.10 	authorized to continue to operate such telephone lines and the city shall have all the 
19.11 	powers granted to towns and the council shall have all of the powers granted to boards of 
19.12 	supervisors under Minnesota Statutes 2010, sections 237.33 to 237.40.

19.13 	Sec. 12. Minnesota Statutes 2012, section 609.892, subdivision 1, is amended to read:
19.14 		Subdivision 1.Applicability. The definitions in this section apply to sections 
19.15 	237.73,609.892, and 609.893.