1.1                          A bill for an act 
  1.2             relating to telecommunications; modifying and 
  1.3             recodifying telecommunications laws; imposing excise 
  1.4             tax on certain telecommunications, cable, and video 
  1.5             programming services; appropriating money; amending 
  1.6             Minnesota Statutes 2002, sections 13.46, subdivision 
  1.7             2; 13.679, by adding a subdivision; 13.681, by adding 
  1.8             subdivisions; 16A.124, subdivision 8; 16B.465, 
  1.9             subdivisions 1, 1a; 115B.02, subdivision 14; 216A.03, 
  1.10            subdivision 7; 216A.07, subdivisions 2, 5; 216B.16, 
  1.11            subdivision 2; 221.031, subdivision 2; 256.978, 
  1.12            subdivision 2; 270B.14, subdivision 1; 272.01, 
  1.13            subdivision 3; 297A.61, subdivision 7; 308A.210, 
  1.14            subdivisions 3, 8; 325E.021; 325F.692; 325F.693; 
  1.15            326.242, subdivision 12; 403.09; 403.11, subdivision 
  1.16            1; 412.014; 471.425, subdivision 5; 473.129, 
  1.17            subdivision 6; 609.52, subdivision 2; 609.80, 
  1.18            subdivisions 1, 2; 609.892, subdivision 1; proposing 
  1.19            coding for new law as Minnesota Statutes, chapters 
  1.20            237A; 237B; repealing Minnesota Statutes 2002, 
  1.21            sections 237.01; 237.011; 237.02; 237.03; 237.035; 
  1.22            237.036; 237.04; 237.05; 237.06; 237.065; 237.066; 
  1.23            237.067; 237.068; 237.069; 237.07; 237.071; 237.072; 
  1.24            237.075; 237.076; 237.081; 237.082; 237.09; 237.10; 
  1.25            237.101; 237.11; 237.115; 237.12; 237.121; 237.14; 
  1.26            237.15; 237.16; 237.162; 237.163; 237.164; 237.17; 
  1.27            237.18; 237.19; 237.20; 237.21; 237.22; 237.23; 
  1.28            237.231; 237.24; 237.25; 237.26; 237.27; 237.28; 
  1.29            237.295; 237.30; 237.33; 237.34; 237.35; 237.36; 
  1.30            237.37; 237.38; 237.39; 237.40; 237.44; 237.45; 
  1.31            237.46; 237.461; 237.462; 237.47; 237.49; 237.50; 
  1.32            237.51, subdivisions 1, 5, 5a; 237.52; 237.53; 237.54; 
  1.33            237.55; 237.56; 237.57; 237.59; 237.60; 237.61; 
  1.34            237.626; 237.63; 237.64; 237.65; 237.66; 237.661; 
  1.35            237.662; 237.663; 237.67; 237.68; 237.69; 237.70, 
  1.36            subdivisions 1, 2, 3, 4a, 5, 6, 7; 237.701; 237.71; 
  1.37            237.711; 237.73; 237.74; 237.75; 237.76; 237.761; 
  1.38            237.762; 237.763; 237.764; 237.765; 237.766; 237.767; 
  1.39            237.768; 237.769; 237.770; 237.771; 237.772; 237.773; 
  1.40            237.774; 237.775; 237.79; 237.80; 237.81; 238.01; 
  1.41            238.02; 238.03; 238.08; 238.081; 238.082; 238.083; 
  1.42            238.084; 238.086; 238.11; 238.12; 238.15; 238.16; 
  1.43            238.17; 238.18; 238.22; 238.23; 238.24; 238.241; 
  1.44            238.242; 238.25; 238.26; 238.27; 238.35; 238.36; 
  1.45            238.37; 238.38; 238.39; 238.40; 238.41; 238.42; 
  1.46            238.43; Minnesota Rules, parts 7810.8715; 7810.8720; 
  2.1             7810.8725; 7810.8730; 7810.8735; 7810.8760; 7810.8805; 
  2.2             7810.8810; 7810.8815; 7811.0050; 7811.0100; 7811.0150; 
  2.3             7811.0200; 7811.0300; 7811.0350; 7811.0400; 7811.0500; 
  2.4             7811.0550; 7811.0600; 7811.0700; 7811.0800; 7811.0900; 
  2.5             7811.1000; 7811.1050; 7811.1100; 7811.1200; 7811.1300; 
  2.6             7811.1400; 7811.1500; 7811.1600; 7811.1700; 7811.1800; 
  2.7             7811.1900; 7811.2000; 7811.2100; 7811.2300; 7812.0050; 
  2.8             7812.0100, subparts 22, 23, 31, 32, 35, 45, 47; 
  2.9             7812.0200, subpart 2; 7812.0300, subparts 1, 2, 3, 4; 
  2.10            7812.0350; 7812.0400; 7812.0500; 7812.1300; 7812.1400; 
  2.11            7815.0100; 7815.0200; 7815.0300; 7815.0400; 7815.0500; 
  2.12            7815.0600; 7817.0100; 7817.0200; 7817.0300; 7817.0400; 
  2.13            7817.0500; 7817.0600; 7817.0700; 7817.0800; 7817.0900; 
  2.14            7817.1000. 
  2.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.16                             ARTICLE 1 
  2.17           TELECOMMUNICATIONS SERVICE GENERAL REGULATION
  2.18     Section 1.  [237A.01] [DEFINITIONS.] 
  2.19     Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
  2.20  the terms defined in this section have the meanings given them.  
  2.21     Subd. 2.  [ACCESS LINE.] "Access line" means company-owned 
  2.22  facilities of a telecommunication service provider that are 
  2.23  furnished to permit switched access to a telecommunications 
  2.24  network and that extend from a switching facility to the 
  2.25  demarcation point on the property where a telecommunications 
  2.26  service subscriber is served.  The term includes access lines 
  2.27  provided to residential and business subscribers and Centrex 
  2.28  access lines on a trunk-equivalent basis, but does not include 
  2.29  private nonswitched or wide-area telephone service access lines. 
  2.30     Subd. 3.  [ACCESS SERVICE.] "Access service" means the 
  2.31  provision of access to local service facilities for the purpose 
  2.32  of originating or terminating intrastate long distance calls.  
  2.33     Subd. 4.  [ACTUAL COMPETITION.] "Actual competition" means 
  2.34  a local service area in which at least two facilities-based 
  2.35  local service providers are offering a telecommunications 
  2.36  service.  For the purposes of this subdivision, a wireless 
  2.37  telecommunications service provider is considered a 
  2.38  facilities-based local service provider only if (1) the 
  2.39  commission determines that the carrier is able and willing to 
  2.40  provide essential services to its customers; or (2) it has been 
  2.41  designated as an eligible telecommunications carrier under 
  2.42  section 237A.42, subdivision 2.  
  3.1      Subd. 5.  [ADVANCED TELECOMMUNICATIONS SERVICE.] "Advanced 
  3.2   telecommunications service" means telecommunications services, 
  3.3   or capabilities, such as redundancy, or high speed data service 
  3.4   (256 Kbps or higher), that are available in some geographic 
  3.5   areas of the state, but not others.  The term is intended to 
  3.6   evolve with changes in technology.  
  3.7      Subd. 6.  [AFFILIATE.] "Affiliate" means a person that, 
  3.8   directly or indirectly, owns or controls, is owned or controlled 
  3.9   by, or is under common ownership or control with, another 
  3.10  person.  For purposes of this chapter, the term "own" means to 
  3.11  own an equity interest, or the equivalent of an equity interest, 
  3.12  of more than five percent.  
  3.13     Subd. 7.  [CABLE SERVICE.] "Cable service" means (1) the 
  3.14  one-way transmission to subscribers of multiple channels of 
  3.15  video programming or other programming service, and (2) 
  3.16  subscriber interaction, if any, that is required for the 
  3.17  selection or use of the video programming or other programming 
  3.18  service.  The content of cable service is controlled by the 
  3.19  service provider.  Cable services are provided through 
  3.20  facilities that use public rights-of-way.  Cable service does 
  3.21  not include high-speed data transport.  
  3.22     Subd. 8.  [COMMISSION.] "Commission" means the public 
  3.23  utilities commission.  
  3.24     Subd. 9.  [DEPARTMENT.] "Department" means the department 
  3.25  of commerce.  
  3.26     Subd. 10.  [ESSENTIAL SERVICES.] "Essential services" means:
  3.27  voice-grade access to the public switched network, unlimited 
  3.28  local usage for a flat rate, dual tone multifrequency (DTMF) 
  3.29  signaling or its functional equivalent capability; single-party 
  3.30  service or its functional equivalent; access to operator 
  3.31  services; equal access; access to emergency services number 
  3.32  capability, including 911 and E911; statewide telecommunications 
  3.33  relay service for the hearing impaired; access to directory 
  3.34  services; and toll-blocking or toll-limitation services.  
  3.35     Subd. 11.  [FACILITIES BASED.] "Facilities based" refers to 
  3.36  accessing end-user telecommunications service customers through 
  4.1   overbuilding or utilizing leased or purchased network elements.  
  4.2      Subd. 12.  [HIGH-SPEED DATA TRANSPORT.] "High-speed data 
  4.3   transport" means a telecommunications service that uses 
  4.4   switched, broadband telecommunications capability (1) to enable 
  4.5   users to subscribe to an information service, or (2) to 
  4.6   originate or receive voice, data, graphics, and video 
  4.7   information of the subscriber's choosing, regardless of the 
  4.8   technology employed, at transmission speeds of 256 kilobits per 
  4.9   second or greater.  
  4.10     Subd. 13.  [INCUMBENT LOCAL SERVICE PROVIDER.] "Incumbent 
  4.11  local service provider" means any local service provider, that 
  4.12  either itself or its predecessors in interest, on January 1, 
  4.13  1985, owned and operated a local public switched 
  4.14  telecommunications network in Minnesota.  
  4.15     Subd. 14.  [INFORMATION SERVICE.] "Information service" 
  4.16  means the offering of a capability for generating, acquiring, 
  4.17  storing, transforming, processing, retrieving, utilizing, or 
  4.18  making available information via telecommunications, and 
  4.19  includes electronic publishing, but does not include any use of 
  4.20  any such capability for managing, controlling, or operating a 
  4.21  telecommunications system or managing a telecommunications 
  4.22  service.  Information service does not include high-speed data 
  4.23  transport.  
  4.24     Subd. 15.  [INTRASTATE LONG-DISTANCE SERVICE.] "Intrastate 
  4.25  long-distance service" means a telecommunications service 
  4.26  originating in one local service area and terminating in 
  4.27  another, all within Minnesota for which there is made a separate 
  4.28  charge not included in contracts with subscribers or tariffs 
  4.29  filed with the commission for local service.  
  4.30     Subd. 16.  [LOCAL GOVERNMENT UNIT.] "Local government unit" 
  4.31  means a county or a statutory or home rule charter city.  
  4.32     Subd. 17.  [LOCAL SERVICE.] "Local service" means 
  4.33  telecommunications service within an area in which calls 
  4.34  originate and terminate without a toll charge for intrastate 
  4.35  long-distance service.  
  4.36     Subd. 18.  [LOCAL SERVICE AREA.] "Local service area" means 
  5.1   a geographic area established by the commission in which 
  5.2   telecommunications services provided by a local service provider 
  5.3   or eligible telecommunications carrier originate and terminate 
  5.4   without a toll charge for intrastate long-distance service.  
  5.5      Subd. 19.  [LOCAL SERVICE PROVIDER.] "Local service 
  5.6   provider" means a telecommunications service provider that 
  5.7   provides local service.  
  5.8      Subd. 20.  [MULTICHANNEL VIDEO PROGRAMMING 
  5.9   SERVICE.] "Multichannel video programming service" means (1) the 
  5.10  one-way transmission to subscribers of multiple channels of 
  5.11  video programming or other programming service, and (2) 
  5.12  subscriber interaction, if any, that is required for the 
  5.13  selection or use of the video programming or other video 
  5.14  programming service.  The content of multichannel video 
  5.15  programming service is controlled by the service provider.  
  5.16  Multichannel video programming service does not include 
  5.17  high-speed data transport. 
  5.18     Subd. 21.  [NETWORK ELEMENT.] "Network element" means a 
  5.19  facility or equipment, capable of being disaggregated from other 
  5.20  network elements, used alone or in combination for providing 
  5.21  local service.  The term also includes features, functions, and 
  5.22  capabilities that are provided by means of such facility or 
  5.23  equipment, including subscriber numbers, databases, signaling 
  5.24  systems, and information sufficient for billing and collection, 
  5.25  or used in the transmission, routing, or other provision of a 
  5.26  telecommunications service.  
  5.27     Subd. 22.  [OFFERED OR OFFERING.] A service is "offered" or 
  5.28  a service provider is "offering" a service under this section 
  5.29  when the commission determines that (1) the service provider is 
  5.30  physically able to deliver the service, with the addition of no 
  5.31  or only minimal additional investment, (2) no regulatory, 
  5.32  technical, or other impediments to customers taking service 
  5.33  exist, and (3) customers are reasonably aware that they may 
  5.34  purchase the service from the carrier. 
  5.35     Subd. 23.  [OVERBUILDING.] "Overbuilding" refers to 
  5.36  accessing end-user telecommunications service customers 
  6.1   substantially through facilities redundant of an incumbent local 
  6.2   service provider.  
  6.3      Subd. 24.  [PERSON.] "Person" means any individual, 
  6.4   trustee, partnership, municipality, association, corporation, or 
  6.5   other legal entity, however organized.  
  6.6      Subd. 25.  [TELECOMMUNICATIONS.] "Telecommunications" means 
  6.7   the electronic transmission, between or among points specified 
  6.8   by the user, of information of the user's choosing without 
  6.9   change in the form or content of the information as sent and 
  6.10  received. 
  6.11     Subd. 26.  [TELECOMMUNICATIONS 
  6.12  SERVICE.] "Telecommunications service" means the offering of 
  6.13  telecommunications for a fee directly to the public, or to such 
  6.14  classes of users as to be effectively available directly to the 
  6.15  public, regardless of the facilities used, and includes 
  6.16  high-speed data transport.  
  6.17     Subd. 27.  [TELECOMMUNICATIONS SERVICE 
  6.18  PROVIDER.] "Telecommunications service provider" means any 
  6.19  provider of telecommunications service.  
  6.20     Subd. 28.  [VIDEO PROGRAMMING.] "Video programming" means 
  6.21  programming provided by, or generally considered comparable to 
  6.22  programming provided by, a television broadcast station.  
  6.23     Subd. 29.  [WHOLESALE SERVICE PROVIDER.] "Wholesale service 
  6.24  provider" means any telecommunications service provider required 
  6.25  to provide wholesale telecommunications services under federal 
  6.26  law.  
  6.27     Subd. 30.  [WHOLESALE TELECOMMUNICATIONS 
  6.28  SERVICE.] "Wholesale telecommunications service" means the 
  6.29  provision of interconnection, access, unbundled network 
  6.30  elements, alone or in combination; or resale to other 
  6.31  telecommunications service providers.  Wholesale 
  6.32  telecommunications service also includes any service, term, 
  6.33  element, or duty, including collocation, necessary to implement 
  6.34  the provision of local service.  
  6.35     Sec. 2.  [237A.02] [COMMISSION AND DEPARTMENT AUTHORITY; 
  6.36  GOALS.] 
  7.1      Subdivision 1.  [REGULATORY AUTHORITY.] The commission and 
  7.2   the department shall have only the regulatory authority 
  7.3   necessary over cable services, telecommunications services, and 
  7.4   other multichannel video programming services expressly granted 
  7.5   by this chapter.  
  7.6      Subd. 2.  [STATE GOALS, CONSIDERATIONS.] The commission 
  7.7   shall consider the following state goals as it executes its 
  7.8   regulatory duties with respect to cable and telecommunications 
  7.9   services: 
  7.10     (1) supporting universal service, including low-income and 
  7.11  rural consumers; 
  7.12     (2) encouraging economically efficient deployment of 
  7.13  infrastructure for the highest speed telecommunications services 
  7.14  and greatest capacity for voice, video, and data transmission; 
  7.15     (3) encouraging fair and robust competition for 
  7.16  telecommunications and cable services in a competitively neutral 
  7.17  regulatory manner; 
  7.18     (4) maintaining or improving quality of telecommunications 
  7.19  and cable services; 
  7.20     (5) promoting customer choice; 
  7.21     (6) ensuring consumer protections are maintained; 
  7.22     (7) encouraging voluntary resolution of issues between and 
  7.23  among competing providers and discouraging litigation; and 
  7.24     (8) encouraging the development of advanced 
  7.25  telecommunications services and innovative alternative 
  7.26  technologies for providing telecommunications services.  
  7.27     Sec. 3.  [237A.03] [LOCAL SERVICE PROVIDER ENTRY 
  7.28  REGULATION.] 
  7.29     Subdivision 1.  [LOCAL SERVICE FITNESS DETERMINATION AND 
  7.30  CERTIFICATE.] The commission shall issue a certificate of 
  7.31  authority to any person who possesses the operational and 
  7.32  financial resources to provide local service, is under no legal 
  7.33  barrier to providing local service in Minnesota, and will not 
  7.34  jeopardize the public health, safety, or welfare. 
  7.35     Subd. 2.  [APPLICATION REQUIREMENTS.] An application for a 
  7.36  certificate of authority to provide local service must include 
  8.1   the following information: 
  8.2      (1) the applicant's full name and address, including the 
  8.3   address of the applicant's place of business and (i) if a 
  8.4   corporation, the names, addresses, and telephone numbers of its 
  8.5   officers, (ii) if a partnership or limited liability 
  8.6   partnership, the names, addresses, and telephone numbers of 
  8.7   persons authorized to bind the partnership, or (iii) if a 
  8.8   limited liability company, the names, addresses, and telephone 
  8.9   numbers of its managers; 
  8.10     (2) the toll-free telephone number for customer service; 
  8.11     (3) a graphical or written description of the area the 
  8.12  applicant proposes to serve; 
  8.13     (4) a statement of the applicant's experience in providing 
  8.14  local service in other jurisdictions, including (i) the dates 
  8.15  and nature of state or federal authorization to provide those 
  8.16  services, (ii) pending or completed criminal, civil, or 
  8.17  administrative action taken against the applicant by a state or 
  8.18  federal authority, including any settlements, in connection with 
  8.19  the applicant's provision of telecommunications service, and 
  8.20  (iii) whether, in this state or any other state, the applicant 
  8.21  had its ability to provide service suspended or revoked; 
  8.22     (5) a list of the applicant's affiliates, subsidiaries, and 
  8.23  parent organizations, if any, providing telecommunications 
  8.24  service in Minnesota; 
  8.25     (6) for the most recent fiscal year, a financial statement 
  8.26  of the applicant, consisting of a balance sheet, an income 
  8.27  statement, and statement of sources and uses of cash; 
  8.28     (7) a proposed price list or tariff setting forth the 
  8.29  rates, terms, and conditions of each service offering; 
  8.30     (8) a description of the applicant's customer service 
  8.31  operations, policies, and procedures; and 
  8.32     (9) the applicant's certificate of incorporation as filed 
  8.33  with the office of the secretary of state. 
  8.34     Sec. 4.  [237A.04] [CITY POWERS.] 
  8.35     Subdivision 1.  [AUTHORITY.] A city may be a 
  8.36  telecommunications service provider upon approval by the 
  9.1   governing body of the city.  Notice of the governing body's 
  9.2   proposed action and of a public hearing on the issue must be 
  9.3   published in the legal newspaper of the city not less than 15 
  9.4   days nor more than 30 days before the governing body takes 
  9.5   action to become a telecommunications service provider. 
  9.6      Subd. 2.  [SERVICE AREA EXTENSION.] A city may extend its 
  9.7   telecommunications service throughout the city and in additional 
  9.8   areas as may be authorized by the commission, applying the same 
  9.9   standards as it may apply to other nonincumbent 
  9.10  telecommunications service providers. 
  9.11     Subd. 3.  [PROPERTY ACQUISITION.] The governing body may 
  9.12  acquire property, real and personal, as it may deem necessary or 
  9.13  appropriate for its telecommunications operations.  
  9.14     Subd. 4.  [POWERS.] In providing telecommunications 
  9.15  service, the governing body may exercise the powers and 
  9.16  authority granted to a municipal utilities commission under 
  9.17  chapter 412.  A city may also provide Internet service to city 
  9.18  residents and in adjacent areas.  
  9.19     Sec. 5.  [237A.05] [JOINT VENTURES.] 
  9.20     Subdivision 1.  [AUTHORITY.] (a) A city telecommunications 
  9.21  provider is authorized to enter into a joint venture with other 
  9.22  cities; local, regional, or state governmental agencies; or with 
  9.23  any other person.  Joint ventures may be formed under this 
  9.24  section to provide only telecommunications service, either 
  9.25  retail or wholesale or both.  The terms and conditions of a 
  9.26  joint venture authorized by this section are subject to 
  9.27  ratification by the governing body.  These terms and conditions 
  9.28  may include the formation of a corporate or other separate legal 
  9.29  entity or entities with an administrative and governance 
  9.30  structure independent of the participants.  The corporate or any 
  9.31  other separate legal entity, if formed: 
  9.32     (1) has the authority and legal capacity and, in the 
  9.33  exercise of joint venture powers, the privileges, attributes, 
  9.34  responsibilities, and duties authorized by this section; 
  9.35     (2) is subject to the law generally applicable to the 
  9.36  organization, internal governance, and activities of the entity 
 10.1   formed; 
 10.2      (3) may exercise in connection with its property and 
 10.3   affairs, and in connection with property within its control, any 
 10.4   and all powers that may be exercised by a natural person or a 
 10.5   private corporation or other private legal entity in connection 
 10.6   with similar property and affairs; and 
 10.7      (4) is not a public body or authority, government entity, 
 10.8   municipal corporation, or political subdivision unless the joint 
 10.9   venture, including any separate legal entity if formed, elects 
 10.10  to be deemed a city telecommunications service provider for 
 10.11  purposes of federal or state law regulating utility operations. 
 10.12     Subd. 2.  [JOINT VENTURE POWERS.] (a) A joint venture 
 10.13  formed under this section has the powers, privileges, 
 10.14  attributes, responsibilities, and duties of the separate 
 10.15  utilities entering into the joint venture as the joint venture 
 10.16  agreement may provide. 
 10.17     (b) These powers include, but are not limited to, the 
 10.18  authority to: 
 10.19     (1) finance, acquire, own, construct, and operate 
 10.20  facilities necessary for providing telecommunications service to 
 10.21  wholesale or retail customers; 
 10.22     (2) combine, share, or employ administrative, managerial, 
 10.23  operational, or other staff if combining or sharing will not 
 10.24  degrade safety, reliability, or customer service standards; 
 10.25     (3) provide for joint administrative functions, including 
 10.26  ancillary services; 
 10.27     (4) purchase or sell telecommunications service at 
 10.28  wholesale for resale to customers; and 
 10.29     (5) participate as the parties deem necessary or 
 10.30  appropriate in providing telecommunications service with other 
 10.31  cities, cooperative associations, or other entities providing 
 10.32  telecommunications, public or private. 
 10.33     (c) A city, upon approval by its governing body, may 
 10.34  exercise the authority and powers granted to joint ventures in 
 10.35  this subdivision with respect to telecommunications service and 
 10.36  Internet service. 
 11.1      Sec. 6.  [237A.06] [COMPETITIVE DATA.] 
 11.2      (a) A governing body may classify as private or nonpublic 
 11.3   data concerning the provision of telecommunications service by 
 11.4   the city or a joint venture in which the city is a member that 
 11.5   would disclose information, which a private telecommunications 
 11.6   services provider is not required to disclose publicly under 
 11.7   state law.  
 11.8      (b) Notwithstanding paragraph (a), quarterly and annual 
 11.9   audited financial statements of the governing body are public 
 11.10  data. 
 11.11     Sec. 7.  [237A.07] [CITY TELECOMMUNICATIONS COMMISSIONS.] 
 11.12     (a) Following city council approval of the city acting as a 
 11.13  telecommunications provider as provided in section 237A.04, a 
 11.14  city council may assign the governance and operation of city 
 11.15  telecommunications service to a municipal public utilities 
 11.16  commission. 
 11.17     (b) If the provider is a statutory city, the delegation may 
 11.18  be made pursuant to section 412.331.  In that event, the 
 11.19  provider of telecommunications service is a public utility for 
 11.20  purposes of section 412.351. 
 11.21     (c) If the provider is a home rule charter city, the 
 11.22  delegation may be made to the municipal public utilities 
 11.23  commission as may be provided for in the charter and that 
 11.24  commission then has all of the same powers, rights, and duties 
 11.25  with respect to telecommunications as the charter provides with 
 11.26  respect to other utilities. 
 11.27     (d) In lieu of paragraphs (b) and (c), the city council may 
 11.28  establish a separate telecommunications service commission that 
 11.29  must be organized, operate, and have the powers, rights, and 
 11.30  duties of a public utilities commission created under section 
 11.31  412.331. 
 11.32     (e) If a city council assigns the governance and operation 
 11.33  of city telecommunications service to a commission, as permitted 
 11.34  in this section, the commission is thereafter the governing body 
 11.35  for purposes of sections 237A.04 to 237A.07. 
 11.36     Sec. 8.  [237A.08] [LONG-DISTANCE ENTRY.] 
 12.1      Subdivision 1.  [REGISTRATION REQUIREMENT.] No person shall 
 12.2   provide local long-distance service in Minnesota without first 
 12.3   filing the following information with the commission: 
 12.4      (1) the name, address, and telephone number of the entity 
 12.5   that will provide the local long-distance service; 
 12.6      (2) the name and address of the provider's registered agent 
 12.7   in Minnesota; 
 12.8      (3) the name, address, and telephone number of the primary 
 12.9   contact for the provider with respect to telecommunications 
 12.10  regulatory issues; 
 12.11     (4) the toll-free telephone number for customer service; 
 12.12     (5) pending or completed criminal, civil, or administrative 
 12.13  action taken against the applicant by a state or federal 
 12.14  authority, including any settlements, in connection with the 
 12.15  applicant's provision of telecommunications service whether, in 
 12.16  this state or any other state; and 
 12.17     (6) whether the applicant has had its ability to provide 
 12.18  service suspended or revoked in any state. 
 12.19     Subd. 2.  [PREPAID SERVICES; BOND REQUIRED.] (a) A person 
 12.20  has authority to provide prepaid telecommunications services if 
 12.21  the person meets the appropriate certification or registration 
 12.22  requirements under this chapter and furnishes to the commission 
 12.23  a performance guaranty in the form of a bond, letter of credit, 
 12.24  certificate of deposit, or other instrument approved by the 
 12.25  commission in an amount determined by the commission by rule as 
 12.26  adequate to provide compensation for damages resulting from the 
 12.27  failure to meet quality of service standards or to deliver 
 12.28  promised services.  The department may vary the amount 
 12.29  furnished, or waive the bond requirement, dependent on the type 
 12.30  of service offered or proposed to be offered.  The guaranty 
 12.31  amount must be proportional to the number of customers served or 
 12.32  proposed to be served.  The guaranty amount must be adjusted to 
 12.33  reflect the number of customers served and renewed annually. 
 12.34     (b) A person may not provide or offer to provide prepaid 
 12.35  telecommunications services if the person is not in compliance 
 12.36  with this section.  
 13.1      Sec. 9.  [EFFECTIVE DATE.] 
 13.2      Sections 4 to 8 are effective the day following final 
 13.3   enactment. 
 13.4                              ARTICLE 2 
 13.5                TELECOMMUNICATIONS SERVICE COMPETITION
 13.6      Section 1.  [237A.09] [REGULATION OF WHOLESALE SERVICES.] 
 13.7      Subdivision 1.  [WHOLESALE SERVICE OBLIGATION.] (a) The 
 13.8   commission may require wholesale service providers to furnish 
 13.9   network elements approved by the Federal Communications 
 13.10  Commission and may require wholesale service providers to 
 13.11  furnish other network elements the commission determines are 
 13.12  necessary such that if not provided would impair the ability of 
 13.13  the telecommunications service provider seeking the network 
 13.14  element to provide the high quality telecommunications services 
 13.15  it seeks to offer.  
 13.16     (b) Wholesale service providers shall provide all network 
 13.17  elements approved by the Federal Communications Commission or 
 13.18  the commission alone or in combination with other network 
 13.19  elements.  
 13.20     Subd. 2.  [MINIMUM SERVICE QUALITY.] Wholesale 
 13.21  telecommunications service must be provided at a level that is 
 13.22  at least equal in quality to the highest level of quality 
 13.23  provided by the wholesale service provider to itself or to its 
 13.24  affiliates.  Compliance with this subdivision does not 
 13.25  necessarily demonstrate high quality service required by 
 13.26  subdivision 1.  
 13.27     Subd. 3.  [WHOLESALE SERVICE RULES.] Within one year after 
 13.28  the effective date of this act, the commission shall adopt rules 
 13.29  establishing requirements and quality of service standards for 
 13.30  wholesale telecommunications services offered in the state.  
 13.31  These rules are in addition to any federal requirements relating 
 13.32  to the provision of wholesale services. 
 13.33     Subd. 4.  [MINIMUM STANDARDS.] (a) The commission's rule 
 13.34  standards for wholesale services must be established as minimum 
 13.35  standards.  In any particular case, stricter standards may apply 
 13.36  to the provision of wholesale services if required by the terms 
 14.1   of the parties' interconnection agreements.  The commission may 
 14.2   order company-specific wholesale service quality standards.  
 14.3      (b) The commission may order any equitable relief it deems 
 14.4   necessary to enforce its wholesale service quality rules and 
 14.5   standards, including but not limited to approval of liquidated 
 14.6   damages in interconnection agreements, bill credits, refunds, 
 14.7   and penalties under section 237A.35. 
 14.8      (c) The commission shall adopt rules establishing a 
 14.9   schedule of compensation payable to a person seeking wholesale 
 14.10  telecommunications services for failure of a wholesale 
 14.11  telecommunications services provider to comply with wholesale 
 14.12  quality of service standards.  A wholesale service provider has 
 14.13  30 days after being notified of a failure to comply to request a 
 14.14  hearing before the commission on the issue of whether there was 
 14.15  a failure to comply.  The burden is on the wholesale provider to 
 14.16  show compliance.  If no hearing is requested, compensation is 
 14.17  due within 60 days of receiving notice of a failure to comply. 
 14.18     Subd. 5.  [PROHIBITED PRACTICES.] A wholesale service 
 14.19  provider shall not do any of the following: 
 14.20     (1) upon request, fail to disclose in a timely and uniform 
 14.21  manner information necessary for the design of equipment and 
 14.22  services that will meet specifications for the provision of 
 14.23  wholesale services; 
 14.24     (2) intentionally impair the speed, quality, or efficiency 
 14.25  of services, products, or facilities offered to a consumer; 
 14.26     (3) fail to provide a service, product, or facility to a 
 14.27  customer in accordance with the commission's rules and orders; 
 14.28     (4) refuse to provide a service, product, or facility to a 
 14.29  telecommunications service provider in accordance with the 
 14.30  commission's rules and orders; or 
 14.31     (5) impose unreasonable or discriminatory restrictions on 
 14.32  the resale of its services.  
 14.33     Subd. 6.  [PRICE FOR WHOLESALE SERVICES.] Prices for 
 14.34  wholesale services must be established or existing rates 
 14.35  maintained by the commission, but the rates may be adjusted by 
 14.36  the commission if necessary, based on a forward-looking economic 
 15.1   cost methodology that must include, but is not limited to, 
 15.2   consideration of the following: 
 15.3      (1) the use of the most efficient telecommunications 
 15.4   technology currently available and the least cost network 
 15.5   configuration consistent with providing the high quality 
 15.6   telecommunications service; 
 15.7      (2) forward-looking depreciation rates; 
 15.8      (3) a reasonable allocation of forward-looking joint and 
 15.9   common costs; 
 15.10     (4) forward-looking cost of capital; and 
 15.11     (5) Minnesota tax rates and, if applicable, Minnesota 
 15.12  facility placement requirements, Minnesota topography, and 
 15.13  Minnesota climate.  
 15.14     Sec. 2.  [237A.10] [MERGERS AND ACQUISITIONS.] 
 15.15     Subdivision 1.  [COMMISSION CONSENT.] (a) No person may 
 15.16  purchase, acquire, or assume control of the property, capital 
 15.17  stock, bonds, securities, or other obligations, or the 
 15.18  franchises, rights, privileges, and immunities of any 
 15.19  telecommunications service provider prior to receiving a 
 15.20  certificate of authority to operate in the format of the merged 
 15.21  or acquired entity. 
 15.22     (b) The transferor and transferee of any property described 
 15.23  in paragraph (a) shall both join in the application filed with 
 15.24  the commission for the approval of the purchase, acquisition, or 
 15.25  assumption of control.  
 15.26     Subd. 2.  [NOTICE TO CUSTOMERS.] At least 120 days prior to 
 15.27  the closing of any purchase, acquisition, or assumption of 
 15.28  control of the property, capital stock, bonds, securities, or 
 15.29  other obligations, or the franchises, rights, privileges, and 
 15.30  immunities of any telecommunications service provider, the 
 15.31  transferor must provide notice to its affected customers and 
 15.32  identify the name of the proposed buyer.  The notice must be 
 15.33  included as a separate document from the customer's monthly 
 15.34  bill, but may be delivered to the customer under the same cover 
 15.35  as a monthly bill.  
 15.36     Subd. 3.  [STANDARD.] The commission shall consent to a 
 16.1   transfer subject to a determination that the transferee has the 
 16.2   financial and operational qualifications necessary to provide 
 16.3   service in accordance with this chapter.  
 16.4      Sec. 3.  [237A.11] [LOCAL SERVICE RATE REGULATION; RULES.] 
 16.5      Subdivision 1.  [RATE RESTRUCTURING; MORATORIUM.] (a) The 
 16.6   commission shall undertake a generic proceeding to be completed 
 16.7   by December 31, 2003, to establish deaveraged retail rates for 
 16.8   essential local telecommunications services provided by 
 16.9   incumbent local service providers.  The commission shall take 
 16.10  into account the following factors in establishing deaveraged 
 16.11  retail rates for essential local telecommunications services: 
 16.12     (1) modifications to the service provider's current rate 
 16.13  design that allow for the lowest price possible for basic voice 
 16.14  grade telephone service; 
 16.15     (2) whether the local service provider's total 
 16.16  telecommunications service revenue recovers the service 
 16.17  provider's total embedded cost of local service within a local 
 16.18  service area, applying the criteria set forth in subdivision 11; 
 16.19  and 
 16.20     (3) the extent to which the price of essential 
 16.21  telecommunications service covers a reasonable mix of the 
 16.22  historical and the forward-looking cost of providing the service.
 16.23     (b) Following the completion of the retail deaveraging 
 16.24  proceeding required in paragraph (a), prices for essential 
 16.25  telecommunications services established in the deaveraging 
 16.26  proceeding must not be increased for three years except as 
 16.27  provided in paragraph (c).  After the three years, rates may be 
 16.28  increased up to ten percent a year in each of the next three 
 16.29  years. 
 16.30     (c) The commission may, upon petition by an incumbent local 
 16.31  service provider, allow for rates above the caps set in 
 16.32  paragraph (b) if the local provider can show that, due to the 
 16.33  deaveraging process or the reduction of access charges mandated 
 16.34  by this act, the rate increase is reasonable. 
 16.35     Subd. 2.  [COMPLAINT-BASED RATE REGULATION.] (a) After the 
 16.36  expiration of the six-year rate caps provided in subdivision 1, 
 17.1   paragraph (b), with respect to essential local services, or any 
 17.2   time with respect to nonessential telecommunications services, 
 17.3   if consumers representing five percent of the access lines 
 17.4   within an incumbent local service provider's local service area 
 17.5   complain to the commission about the prevailing or proposed rate 
 17.6   for local telecommunications services, the department, attorney 
 17.7   general, or commission may conduct an investigation into the 
 17.8   reasonableness of the rate.  The commission shall dismiss a 
 17.9   complaint under this section if it finds that 75 percent of the 
 17.10  local service provider's customers within the local service area 
 17.11  are subject to actual competition with respect to the essential 
 17.12  local service.  
 17.13     (b) Individual or group complaints in writing, or 
 17.14  complaints submitted electronically, that can be independently 
 17.15  verified may be aggregated to meet the standard for triggering 
 17.16  an investigation provided in paragraph (a).  Complaints relating 
 17.17  to the same company from different consumers may be consolidated 
 17.18  by the commission.  
 17.19     Subd. 3.  [RATE INVESTIGATIONS.] When a complaint is filed 
 17.20  in compliance with subdivision 2, the department and the 
 17.21  attorney general may require the local service provider to 
 17.22  submit statements of fact, expert opinions, substantiating 
 17.23  documents, and exhibits supporting the rate challenged or the 
 17.24  rate changed.  
 17.25     Subd. 4.  [RATE CHANGE SUSPENSION.] The commission, after a 
 17.26  complaint is filed by the department or the attorney general 
 17.27  under subdivision 2, may suspend the effectiveness of a rate 
 17.28  change noticed under subdivision 3.  The suspension must not 
 17.29  last longer than ten months beyond the initial filing date.  
 17.30     Subd. 5.  [RATE CHANGE DETERMINATION, PROCEEDINGS 
 17.31  GENERALLY.] (a) The commission shall determine whether all 
 17.32  material issues of fact regarding the complaint have been 
 17.33  resolved.  If the commission finds that all material issues of 
 17.34  fact have not been resolved, the commission may refer the matter 
 17.35  to the office of administrative hearings for resolution of such 
 17.36  issues, with instructions for a public hearing as a contested 
 18.1   case under chapter 14, or may utilize any other administrative 
 18.2   process available to it under this chapter or chapter 216A. 
 18.3      (b) If the commission does not make a final determination 
 18.4   concerning the rate complaint within ten months after the 
 18.5   complaint is filed, the rate complaint is deemed to have been 
 18.6   dismissed by the commission; except, if a settlement has been 
 18.7   submitted to and rejected by the commission, and no other 
 18.8   determination is made by the commission, the rate complaint is 
 18.9   deemed to have been dismissed 12 months after the date a 
 18.10  complaint is filed. 
 18.11     (c) For the purposes of this section, "final determination" 
 18.12  means the initial decision of the commission and not an order 
 18.13  that may be entered by the commission in response to a petition 
 18.14  for rehearing or other further relief.  The commission may 
 18.15  continue to suspend a rate change noticed under subdivision 3 
 18.16  until it resolves these petitions.  
 18.17     Subd. 6.  [INTERIM RATE.] Notwithstanding any commission 
 18.18  order suspending a rate change noticed under subdivision 3, the 
 18.19  commission shall order an interim rate into effect not later 
 18.20  than 60 days after the date the rate complaint is filed.  The 
 18.21  commission may order the interim rate ex parte without a public 
 18.22  hearing.  Notwithstanding the provisions of sections 216.25 and 
 18.23  237A.30, no interim rate ordered by the commission under this 
 18.24  section is subject to an application for a rehearing or an 
 18.25  appeal to a court until the commission has rendered its final 
 18.26  determination.  
 18.27     Subd. 7.  [REFUNDING EXCESS INTERIM RATE.] (a) If, at the 
 18.28  time of its final determination, the commission finds that the 
 18.29  interim rates are in excess of the rates in the final 
 18.30  determination, the commission shall order the company to refund 
 18.31  the excess amount collected under the interim rate order 
 18.32  including interest on it which must be at the rate of interest 
 18.33  determined by the commission.  The incumbent service provider 
 18.34  shall begin distributing the refund to its customers within 120 
 18.35  days of the final order, not subject to rehearing or appeal. 
 18.36     (b) If, at the time of its final determination, the 
 19.1   commission finds that the interim rates are less than the rates 
 19.2   in the final determination, the commission may prescribe a 
 19.3   method by which the carrier will recover the difference in 
 19.4   revenues from the date of the final determination to the date 
 19.5   the new rate is put into effect. 
 19.6      (c) If the incumbent local service provider whose rates are 
 19.7   being challenged fails to make refunds within the period of time 
 19.8   prescribed by the commission, the commission shall sue for the 
 19.9   refund and may recover on behalf of all persons entitled to a 
 19.10  refund.  In addition to the amount of the refund and interest 
 19.11  due, the commission is entitled to recover reasonable attorney's 
 19.12  fees, court costs, and estimated costs of administering the 
 19.13  distribution of the refund to persons entitled to the refund.  A 
 19.14  suit under this subdivision must be instituted within two years 
 19.15  after the end of the period of time prescribed by the commission 
 19.16  for repayment of refunds.  
 19.17     Subd. 8.  [BURDEN OF PROOF.] The burden of proof to show 
 19.18  that the rate change is just and reasonable is on the local 
 19.19  service provider whose rate is challenged.  
 19.20     Subd. 9.  [DETERMINATION WHEN PROPOSED RATE UNACCEPTABLE.] 
 19.21  If, after a hearing, the commission finds the rates to be 
 19.22  unreasonable, the commission shall determine the rates to be 
 19.23  charged or applied by the local service provider for the service 
 19.24  in question and shall fix them by order to be served upon the 
 19.25  carrier based on the factors set forth in subdivision 10.  The 
 19.26  rates must thereafter be observed for one year from the date of 
 19.27  the commission's order.  Rate design changes are prospective 
 19.28  from the effective date of the new rates approved by the 
 19.29  commission.  
 19.30     Subd. 10.  [FACTORS GENERALLY CONSIDERED.] (a) The 
 19.31  commission, in the exercise of its powers under this section to 
 19.32  adjudicate rate complaints filed by customers against local 
 19.33  service providers, shall determine whether the price charged for 
 19.34  essential local services combined with any revenue from federal 
 19.35  or state universal services funds exceeds the forward-looking 
 19.36  cost of providing such services.  
 20.1      (b) The commission shall not make an allowance for 
 20.2   operating expenses incurred by a local service provider for 
 20.3   institutional advertising. 
 20.4      (c) The commission shall allow as operating expenses only 
 20.5   those charitable contributions that the commission deems prudent 
 20.6   and that qualify under section 290.21, subdivision 3, clause (b) 
 20.7   or (e).  The commission shall allow as operating expenses only 
 20.8   50 percent of the qualified contributions. 
 20.9      Subd. 11.  [DISCRIMINATION PROHIBITED.] A 
 20.10  telecommunications service provider shall not charge any person 
 20.11  within a local service area greater or less compensation for any 
 20.12  local service or intrastate long distance service than it 
 20.13  charges any other person within the same intrastate service area 
 20.14  for a like and contemporaneous telecommunications service under 
 20.15  similar circumstances. 
 20.16     Subd. 12.  [FILING REQUIREMENTS.] All local service 
 20.17  providers and intrastate long distance providers shall keep on 
 20.18  file with the department a specific rate, toll, or charge for 
 20.19  every kind of telecommunications service, together with all 
 20.20  rules and classifications used by it in the conduct of its 
 20.21  telecommunications service business, including limitations on 
 20.22  liability.  The filings are governed by chapter 13.  The 
 20.23  commission has the authority to waive the requirements of this 
 20.24  section with respect to any type of telecommunications service.  
 20.25     Sec. 4.  [237A.12] [INTRASTATE LONG DISTANCE SERVICE 
 20.26  REGULATION.] 
 20.27     Subdivision 1.  [FILING REQUIREMENT.] Every intrastate long 
 20.28  distance service provider shall keep on file with the department 
 20.29  a description of the standard contract terms and conditions upon 
 20.30  which it provides intrastate long distance services in 
 20.31  Minnesota, including limitations on liability.  The department 
 20.32  shall require each intrastate long distance service provider to 
 20.33  keep open for public inspection at designated offices any 
 20.34  information regarding the terms and conditions on which it 
 20.35  offers intrastate long distance service the department considers 
 20.36  necessary for public information, subject to the provisions of 
 21.1   chapter 13. 
 21.2      Subd. 2.  [TARIFF OR PRICE LIST CHANGE.] Intrastate long 
 21.3   distance providers may: 
 21.4      (1) decrease the rate for a service, or make any change in 
 21.5   a tariff or price list that results in a decrease in rates, 
 21.6   effective without notice to its customers or the commission; and 
 21.7      (2) offer a new service, increase the rate for a service, 
 21.8   or change the terms, conditions, rules, and regulations of its 
 21.9   service offering effective upon notice to its customers. 
 21.10     Subd. 3.  [INTRASTATE LONG DISTANCE SERVICE RATES.] No 
 21.11  intrastate long distance service provider shall offer 
 21.12  telecommunications service within the state upon terms or rates 
 21.13  that are unreasonably discriminatory.  An intrastate long 
 21.14  distance service provider may offer or provide volume, term, and 
 21.15  cost-based discounts or may offer or provide unique pricing to 
 21.16  certain customers or to certain geographic locations for special 
 21.17  promotions, and may pass through any state, municipal, or local 
 21.18  taxes in the specific geographic areas from which the taxes 
 21.19  originate.  Differences in the cost of providing intrastate long 
 21.20  distance service may justify a different price for a particular 
 21.21  customer or group of customers.  
 21.22     Subd. 4.  [AREA SERVED.] No intrastate long distance 
 21.23  service provider may unreasonably limit its service offerings to 
 21.24  particular geographic areas unless facilities necessary for the 
 21.25  service are not available. 
 21.26     Subd. 5.  [DISCONTINUATION OF SERVICE TO RESALE 
 21.27  CARRIER.] An intrastate long distance service provider must 
 21.28  first obtain commission approval before discontinuing service to 
 21.29  another intrastate long distance service provider if end users 
 21.30  would be deprived of service because of the discontinuance. 
 21.31     Sec. 5.  [237A.13] [EXTENDED AREA SERVICE.] 
 21.32     Subdivision 1.  [SCOPE.] This section governs the 
 21.33  establishment of toll-free calling areas. 
 21.34     Subd. 2.  [PETITION.] If 15 percent or 600 of the customers 
 21.35  of an incumbent local service provider, whichever is less, file 
 21.36  a petition with the commission for the creation of an extended 
 22.1   toll-free dialing area by adding an area that is adjacent to the 
 22.2   toll-free, basic flat-rate service territory of the incumbent 
 22.3   local service provider, then the commission shall investigate 
 22.4   the petition and issue an order as provided in this section. 
 22.5      Subd. 3.  [TRAFFIC STUDY.] On verifying that a petition has 
 22.6   the requisite number of valid signatures and that the petition 
 22.7   relates to an adjacent area, the commission shall perform a 
 22.8   traffic study to determine if at least 50 percent of the 
 22.9   customers in the petitioning exchange make five or more calls 
 22.10  per month to the exchange or local calling area to which 
 22.11  toll-free service is requested.  If the commission determines 
 22.12  this standard has been met, then a community of interest is 
 22.13  deemed to exist. 
 22.14     Subd. 4.  [RATES.] On determining that a community of 
 22.15  interest exists, the commission shall calculate any necessary 
 22.16  extended area service rate additive.  Rates associated with the 
 22.17  establishment of an extended toll-free area must not provide for 
 22.18  the recovery of lost access charges, and need not guarantee 
 22.19  income or revenue neutrality between telecommunications service 
 22.20  providers.  An extended area service rate additive must be based 
 22.21  on actual costs to implement the service plus a reasonable 
 22.22  contribution toward common costs.  The commission shall adjust 
 22.23  all existing extended area service rate additives to comport 
 22.24  with this subdivision. 
 22.25     Subd. 5.  [PUBLIC INTEREST.] (a) On determining that a 
 22.26  community of interest exists, the commission shall issue an 
 22.27  order granting the petition unless it finds that granting the 
 22.28  petition is not in the public interest. 
 22.29     (b) In determining if granting the order is in the public 
 22.30  interest, the commission shall consider: 
 22.31     (1) the amount of the rate additives calculated under 
 22.32  subdivision 5; 
 22.33     (2) fairness to consumers in the petitioned and petitioning 
 22.34  exchange; and 
 22.35     (3) any other factors the commission deems relevant.  
 22.36     Sec. 6.  [237A.14] [ESTABLISHMENT EXEMPT FROM REGULATION.] 
 23.1      Subdivision 1.  [DEFINITION.] For purposes of this section, 
 23.2   "establishment" means an individual hotel, motel, restaurant, 
 23.3   lodging house, boarding house, resort, or place of refreshment 
 23.4   licensed under chapter 157. 
 23.5      Subd. 2.  [EXEMPTION; CONDITIONS.] An establishment that 
 23.6   provides telecommunications service to patrons on the premises 
 23.7   of the establishment is not subject to regulation under this 
 23.8   chapter, except that the establishment: 
 23.9      (1) shall provide notice of charges and service providers 
 23.10  to patrons as required in section 325F.99; and 
 23.11     (2) is subject to the procedures of section 237A.23.  
 23.12     Sec. 7.  [237A.15] [PRIVATE SHARED TELECOMMUNICATIONS 
 23.13  SERVICE.] 
 23.14     Subdivision 1.  [DEFINITION.] For the purposes of this 
 23.15  section, "private shared telecommunications service" means 
 23.16  telecommunications services and equipment provided (1) within a 
 23.17  user group located in discrete private premises, (2) in building 
 23.18  complexes, campuses, or high-rise buildings, (3) by a commercial 
 23.19  shared services provider or by a user association, and (4) 
 23.20  through privately owned customer premises equipment and 
 23.21  associated data processing and information management services. 
 23.22  The term includes the service connections provided to the 
 23.23  facilities of a telecommunications service provider. 
 23.24     Subd. 2.  [REQUIREMENTS.] A person who owns or operates a 
 23.25  building, property, complex, or other facility where a private 
 23.26  shared telecommunications system is operated shall establish a 
 23.27  single demarcation point for services and facilities provided by 
 23.28  telecommunications service providers.  The obligation of a 
 23.29  carrier of last resort to provide service to a customer under 
 23.30  section 237A.44 at a location where a private shared 
 23.31  telecommunication system is operated is limited to providing 
 23.32  telecommunications service and facilities up to the demarcation 
 23.33  point established for the property where the private shared 
 23.34  telecommunications system is located. 
 23.35     Subd. 3.  [ACCESS TO ALTERNATIVE PROVIDER.] A tenant of a 
 23.36  building, property, complex, or other facility where a private 
 24.1   shared telecommunications system is operated may establish a 
 24.2   direct connection to and receive telecommunications services 
 24.3   from any provider.  At the request of a tenant where a private 
 24.4   shared telecommunications system is operated, the owner or 
 24.5   manager of the property shall make facilities or conduit space 
 24.6   available to the tenant to allow the tenant to make separate 
 24.7   connection to and to receive telecommunications service directly 
 24.8   from any telecommunications service provider.  The tenant has 
 24.9   the choice of installing the tenant's own facilities or using 
 24.10  the existing facilities.  The facilities or conduit space must 
 24.11  be provided by the owner or operator to the tenant at a 
 24.12  reasonable rate and on reasonable terms and conditions.  It is 
 24.13  the obligation of the tenant to arrange for premises wire, 
 24.14  cable, or other equipment necessary to connect the tenant's 
 24.15  telecommunications equipment with the facilities of the 
 24.16  telecommunications service provider at the location of the 
 24.17  demarcation point. 
 24.18     Subd. 4.  [ENFORCEMENT.] If the commission finds that the 
 24.19  owner or operator of a private shared telecommunications system 
 24.20  has failed to comply with a request under this section, the 
 24.21  commission may order the owner or operator to make facilities or 
 24.22  conduit space available sufficient to allow the tenant to make 
 24.23  separate connection with the telecommunications service 
 24.24  provider, and provide the services at reasonable prices and on 
 24.25  reasonable terms and conditions. 
 24.26     Subd. 5.  [EXEMPTION.] A provider of private shared 
 24.27  telecommunications service is exempt from section 237A.03 if the 
 24.28  telecommunications service is only provided to tenants or for 
 24.29  the provider's own use. 
 24.30     Subd. 6.  [SERVICE BY PROVIDER OF LAST RESORT.] The carrier 
 24.31  of last resort under section 237A.44 shall provide essential 
 24.32  telecommunications service to anyone located within a shared 
 24.33  services building at the demarcation point within a reasonable 
 24.34  time upon request.  
 24.35     Sec. 8.  [237A.16] [PREDATORY PRICING.] 
 24.36     Subdivision 1.  [PREDATORY PRICING COMPLAINTS.] (a) A local 
 25.1   service provider may file a complaint with the commission at any 
 25.2   time alleging that another local service provider is engaging in 
 25.3   predatory pricing.  Any complaint filed against a local service 
 25.4   provider, 50 percent of whose statewide customers are subject to 
 25.5   actual competition with respect to essential services, must be 
 25.6   dismissed by the commission.  In determining whether a local 
 25.7   service provider is engaging in predatory pricing, the 
 25.8   commission shall apply the applicable standard in paragraphs (b) 
 25.9   and (c). 
 25.10     (b) If the telecommunications service in question is 
 25.11  subject to actual competition with respect to 50 percent of the 
 25.12  customers in the local service area in question, the local 
 25.13  service provider whose pricing is being challenged may provide 
 25.14  its service at any rate, as long as its total service revenue 
 25.15  does not fall below its total service long-run incremental cost 
 25.16  for the local service area in question. 
 25.17     (c) If a local service competitor entering a new market has 
 25.18  facilities that are capable of serving 50 percent of the 
 25.19  customers in the local service area in question, or if the 
 25.20  competitor has presubscribed 50 percent of the customers in the 
 25.21  local service area, the incumbent local service provider may 
 25.22  price the telecommunications service being challenged at or 
 25.23  above the price charged by the competitor for the competing 
 25.24  service, as long as the rate does not cause the incumbent local 
 25.25  service provider's overall revenue to fall below its total 
 25.26  service long-run incremental cost for the local service area in 
 25.27  question. 
 25.28     (d) For the purposes of this section, a local service 
 25.29  provider is not counted as a competitive provider unless the 
 25.30  commission finds that the local service provider provides 
 25.31  essential services to the customers within the local service 
 25.32  area in question or the local service provider is an eligible 
 25.33  telecommunications carrier under section 237A.42, subdivision 2. 
 25.34     Subd. 2.  [REMEDIES AND BURDEN OF PROOF.] The commission 
 25.35  may stay any rate decrease until a complaint is resolved under 
 25.36  this section.  Once a prima facie case of predatory pricing is 
 26.1   established by a local service provider, the burden of proof 
 26.2   lies with the local service provider whose pricing practices are 
 26.3   being challenged to show that it is not engaging in predatory 
 26.4   pricing.  The commission may order any equitable relief it deems 
 26.5   necessary to resolve instances of predatory pricing, including 
 26.6   rate reductions, rate freezes, and penalties under section 
 26.7   237A.35. 
 26.8      Sec. 9.  [EXISTING AFOR PLANS.] 
 26.9      Any alternative form of regulation (AFOR) plan approved 
 26.10  before the effective date of this chapter by the commission 
 26.11  pursuant to former statutory sections 237.76 to 237.775 may 
 26.12  remain in effect until the expiration date provided for in the 
 26.13  plan, but local service providers operating under those former 
 26.14  statutory sections are subject to section 237A.08.  
 26.15     Sec. 10.  [WAIVER OF TARIFF REQUIREMENTS.] 
 26.16     On determining that competitive market conditions exist 
 26.17  with respect to any telecommunications service under its 
 26.18  jurisdiction, the commission may waive the requirements or 
 26.19  applicability of sections 237A.03, subdivision 2, clause (7); 
 26.20  237A.08, subdivision 2; and 237A.09, subdivision 1.  Any price 
 26.21  list or other information filed with the commission or 
 26.22  department after a waiver takes effect has no legal effect and 
 26.23  may not be used as a defense against any action for breach of 
 26.24  contract. 
 26.25                             ARTICLE 3 
 26.26                        CONSUMER PROTECTION 
 26.27     Section 1.  [237A.17] [RETAIL RULES.] 
 26.28     (a) The commission shall adopt new retail consumer 
 26.29  protection and service quality rules that apply to 
 26.30  telecommunications service providers and cable service 
 26.31  providers.  The commission shall focus its rules on substantive 
 26.32  service quality standards and allow the market to regulate 
 26.33  customer relations unless it finds that the market is not 
 26.34  protecting customers.  The commission shall determine whether 
 26.35  some or all of the rules apply to some or all of the other 
 26.36  telecommunications providers based on whether the service 
 27.1   quality provided by the service provider is dependent on the 
 27.2   service quality provided by a wholesale service provider.  
 27.3      (b) The rules must, at a minimum, establish specific 
 27.4   service quality standards. 
 27.5      Sec. 2.  [237A.18] [DENIAL OF SERVICE.] 
 27.6      Any telecommunications service or cable service provider 
 27.7   that denies service to a customer shall explain in writing to 
 27.8   the customer the grounds for the denial of service. 
 27.9      Sec. 3.  [237A.19] [BILLING.] 
 27.10     (a) All telecommunications and cable service bills must 
 27.11  conspicuously include on the front of the bill the toll-free 
 27.12  telephone number for the company's customer service center and 
 27.13  the telephone number of the attorney general's consumer advocacy 
 27.14  division. 
 27.15     (b) A telecommunications or cable service subscriber may 
 27.16  designate a third party to receive and pay their invoices for 
 27.17  telecommunications and cable services. 
 27.18     (c) All bills must be submitted to customers within 60 days 
 27.19  of receiving service. 
 27.20     Sec. 4.  [237A.20] [DISCLOSURE OF LOCAL SERVICE OPTIONS.] 
 27.21     Subdivision 1.  [NOTICE TO LOCAL RESIDENTIAL 
 27.22  CUSTOMERS.] Within ten days after a customer requests service or 
 27.23  requests a change of service, the telecommunications service 
 27.24  provider from whom the customer has requested service shall 
 27.25  provide the customer, in a form and manner easy for the customer 
 27.26  to understand, the terms and conditions of all service options 
 27.27  available to that customer.  The commission shall approve a form 
 27.28  that every telecommunications service provider shall use in 
 27.29  providing this information to customers.  
 27.30     Subd. 2.  [NEW PROVIDER; CUSTOMER NOTICE, PRIOR 
 27.31  AUTHORIZATION.] Each residential and commercial long-distance 
 27.32  customer may elect to require that the local services provider 
 27.33  serving the customer receive authorization from the customer 
 27.34  before a request to serve that customer from a different 
 27.35  telecommunications service provider than the provider currently 
 27.36  serving the customer is processed.  
 28.1      Subd. 3.  [TIMING OF NOTICE; NEW CUSTOMER.] For new 
 28.2   installations, the customer's local service provider shall 
 28.3   notify the customer of the right described in subdivision 2 when 
 28.4   the customer initially requests local long-distance service.  A 
 28.5   customer notification of the rights set forth in this section 
 28.6   must be provided utilizing uniform, competitively neutral 
 28.7   language.  The form, content, and style of the authorization 
 28.8   must be consistent with federal law and regulation and use 
 28.9   language provided and approved by the commission.  
 28.10     Subd. 4.  [CHANGE OF ELECTION.] A customer may change the 
 28.11  election under subdivision 2 at any time by notifying the local 
 28.12  services provider of that decision.  No separate charge may be 
 28.13  imposed on the customer for electing to exercise the right 
 28.14  described in subdivision 2 or to change that election.  
 28.15     Subd. 5.  [CALL BLOCKING.] A local services provider, when 
 28.16  a residential customer initially requests service, shall advise 
 28.17  each residential customer of the availability of all blocking 
 28.18  options including 900 number blocking and international 
 28.19  long-distance blocking.  
 28.20     Subd. 6.  [ENFORCEMENT.] If, after an expedited procedure 
 28.21  conducted under section 237A.38, the commission finds that a 
 28.22  telecommunications service provider is failing to provide 
 28.23  disclosure as required under subdivision 1, or that a local 
 28.24  service provider is failing to provide the notification required 
 28.25  under subdivision 3, it shall order such provider to take 
 28.26  corrective action as necessary, and may order penalties under 
 28.27  section 237A.34.  
 28.28     Sec. 5.  [237A.21] [NOTICE OF RATE INCREASE.] 
 28.29     Subdivision 1.  [ADVANCE NOTICE REQUIRED.] No 
 28.30  telecommunications or cable service provider shall increase the 
 28.31  rate for a service, or change the terms, conditions, rules, and 
 28.32  regulations of its service without providing advance notice to 
 28.33  its customers, as required by commission rule. 
 28.34     Subd. 2.  [FORM OF NOTICE.] A telecommunications or cable 
 28.35  service provider shall give notice to its customers in writing 
 28.36  with bill inserts.  Notices of price increases for 
 29.1   telecommunications or cable services must prominently display 
 29.2   the notice of price increase on the customer's bill.  Customer 
 29.3   notices for increases of rates for telecommunications services 
 29.4   must include as a heading, "NOTICE OF PRICE INCREASE." 
 29.5      Sec. 6.  [237A.22] [ANTISLAMMING.] 
 29.6      Subdivision 1.  [ANTISLAMMING DUTIES OF LOCAL SERVICE 
 29.7   PROVIDER.] If a customer has elected to exercise the right 
 29.8   described in section 237A.20, subdivision 2, the local service 
 29.9   provider serving the customer shall not process a request to 
 29.10  serve the customer by another local long-distance service 
 29.11  provider without prior authorization from the customer.  If a 
 29.12  customer has not elected to exercise the right described in that 
 29.13  subdivision, the local service provider may process a request to 
 29.14  serve the customer by another local long-distance service 
 29.15  provider. 
 29.16     Subd. 2.  [ANTISLAMMING DUTIES OF SOLICITING CARRIER.] (a) 
 29.17  Subject to subdivision 1, a telecommunications service provider 
 29.18  may request that the local service provider serving a customer 
 29.19  process a change in that customer's local long-distance or local 
 29.20  service provider, if the customer has authorized the change 
 29.21  either orally or in writing signed by the customer.  Prior to 
 29.22  requesting a change in a customer's local long-distance or local 
 29.23  service provider, the local long-distance or local service 
 29.24  provider must confirm: 
 29.25     (1) the customer's identity with information unique to the 
 29.26  customer, unless the customer refused to provide identifying 
 29.27  information, then that fact should be noted; 
 29.28     (2) that the customer has been informed of the offering 
 29.29  made by the local long-distance or local service provider; 
 29.30     (3) that the customer understands that the customer is 
 29.31  being requested to change local long-distance, local service 
 29.32  providers, or both; 
 29.33     (4) that the customer has the authority to authorize the 
 29.34  change; and 
 29.35     (5) that the customer agrees to the change. 
 29.36     (b) After requesting a change of a customer's local 
 30.1   long-distance or local service provider, the local long-distance 
 30.2   service provider must: 
 30.3      (1) notify the customer in writing that the request has 
 30.4   been processed; and 
 30.5      (2) be able to produce, upon complaint by the customer, 
 30.6   evidence that the local long-distance or local service provider 
 30.7   verified the authorization by the customer to change the 
 30.8   customer's local long-distance or local service provider.  If 
 30.9   the company used a negative checkoff verification procedure as 
 30.10  defined in subdivision 4, paragraph (c), the evidence must 
 30.11  include a tape recording of the initial oral authorization. 
 30.12     Subd. 3.  [PENALTY FOR SLAMMING.] If the local 
 30.13  long-distance or local service provider is not able to present, 
 30.14  upon complaint by the customer, evidence that complies with 
 30.15  subdivision 2, paragraph (b), clause (2), the change in service 
 30.16  is deemed to be unauthorized from the date the local 
 30.17  long-distance or local service provider requested the change; 
 30.18  then, the local long-distance or local service provider shall: 
 30.19     (1) bear all costs of immediately returning the customer to 
 30.20  the service of the customer's previous local long-distance or 
 30.21  local service provider; and 
 30.22     (2) bear all costs of serving that customer during the 
 30.23  period of unauthorized service. 
 30.24     Subd. 4.  [CUSTOMER AUTHORIZATION VERIFICATION.] (a) 
 30.25  Customer authorization for a change in the customer's local 
 30.26  long-distance or local service provider may be verified using a 
 30.27  verification procedure that complies with federal law or 
 30.28  regulation.  Except as provided in paragraph (b), the 
 30.29  requirement that the local long-distance or local service 
 30.30  provider be able to produce evidence of customer authorization 
 30.31  is satisfied if the local long-distance or local service 
 30.32  provider uses a federally authorized verification procedure. 
 30.33     (b) If federal law or regulation authorizes a local 
 30.34  long-distance or local service provider to use a negative 
 30.35  checkoff verification procedure, and the local long-distance or 
 30.36  local service provider does so, the local long-distance or local 
 31.1   service provider must be able to produce a tape recording of the 
 31.2   initial oral authorization by the customer to change local 
 31.3   long-distance or local service providers as evidence of the 
 31.4   authorization.  The initial oral authorization must include 
 31.5   confirmation of the items listed in subdivision 2, paragraph (a).
 31.6      (c) "Negative checkoff" means a verification procedure that 
 31.7   consists of: 
 31.8      (1) an initial oral authorization by the customer to change 
 31.9   the local long-distance or local service provider; and 
 31.10     (2) a mailing to the customer by the soliciting local 
 31.11  long-distance or local service provider regarding the change in 
 31.12  service providers that informs the customer that if the customer 
 31.13  fails to cancel the change in service providers, the change is 
 31.14  deemed authorized and verified.  
 31.15     Sec. 7.  [237A.23] [NOTICE AND DISCLOSURE BY LONG-DISTANCE 
 31.16  PROVIDERS.] 
 31.17     Subdivision 1.  [INFORMATION REQUIRED.] When contacted by a 
 31.18  customer regarding the purchase of local long-distance 
 31.19  telecommunications services, or when soliciting customers via 
 31.20  mail or telephone, a local long-distance service provider shall 
 31.21  provide the customer with the following information, if the 
 31.22  service is being offered to the customer, about the service 
 31.23  offering either orally or in writing: 
 31.24     (1) the price or range of prices of interstate message toll 
 31.25  service accessed by dialing "1+" or "10-xxx," including any 
 31.26  difference in prices for evening, night, or weekend calls; 
 31.27     (2) the price or range of prices of intrastate inter-LATA 
 31.28  message toll service accessed by dialing "1+" or "10-xxx," 
 31.29  including any difference in prices for evening, night, or 
 31.30  weekend calls; 
 31.31     (3) the price or range of prices of intrastate intra-LATA 
 31.32  message toll service accessed by dialing "1+" or "10-xxx," 
 31.33  including any difference in prices for evening, night, or 
 31.34  weekend calls; 
 31.35     (4) any minimum volume requirements, fixed flat fees, 
 31.36  service charges, surcharges, taxes, termination charges, or 
 32.1   other non-service-specific charges, including the fact that the 
 32.2   local long-distance service provider may charge a onetime fee 
 32.3   for changing local long-distance service providers; and 
 32.4      (5) any special promotional rate or promotional offering 
 32.5   related to the services or prices described in clauses (1) to 
 32.6   (4), including any limitations or restrictions on the 
 32.7   promotional rates or offerings. 
 32.8      Subd. 2.  [PRICES, TERMS, AND RESTRICTIONS IN WRITING.] (a) 
 32.9   If a customer agrees to purchase local long-distance 
 32.10  telecommunications services on a presubscription basis, the 
 32.11  provider shall send the customer written information regarding 
 32.12  services subscribed to, containing: 
 32.13     (1) the information regarding prices and charges described 
 32.14  in subdivision 1, clauses (1) to (5); 
 32.15     (2) the price for calls placed with a calling card issued 
 32.16  to the customer by the provider and any surcharge for placing 
 32.17  calls with a calling card; 
 32.18     (3) the price for calls charged to the customer when a 
 32.19  personal "1-800" number for local long-distance services issued 
 32.20  to the customer by the provider is used; and 
 32.21     (4) the price of directory assistance calls. 
 32.22     (b) This written information must be sent to the customer 
 32.23  within seven business days from the date of the verification of 
 32.24  the customer's authorization, unless federal law or regulation 
 32.25  requires notice to be sent by an earlier date. 
 32.26     Subd. 3.  [FILED TARIFF NO DEFENSE.] That a local 
 32.27  long-distance service provider has intrastate tariffs or price 
 32.28  lists for the services listed in subdivisions 1 and 2 on file 
 32.29  with the commission or department is not a defense to any action 
 32.30  brought for failure to disclose intrastate prices for which 
 32.31  disclosure is required under this section.  
 32.32     Sec. 8.  [237A.24] [LOADING.] 
 32.33     (a) Except as provided in paragraph (b) or (c), a 
 32.34  telecommunications service provider shall not charge a telephone 
 32.35  service subscriber, as defined in section 325F.692, for a 
 32.36  telecommunications service that is not required by the 
 33.1   commission to be offered and for which the subscriber did not 
 33.2   explicitly contract. 
 33.3      (b) If a charge is assessed on a per-use basis for a 
 33.4   service described in paragraph (a), the charge must be applied 
 33.5   as a credit to the subscriber's next monthly bill, if the 
 33.6   subscriber notifies the telecommunications service provider that 
 33.7   the subscriber did not utilize the service or did not authorize 
 33.8   the utilization of the service. 
 33.9      (c) A telecommunications service provider that receives a 
 33.10  notification from a telecommunications service subscriber under 
 33.11  paragraph (b) shall inform the subscriber of the ability to 
 33.12  block the services from future use by the subscriber, and shall 
 33.13  block the services from future use by the subscriber, if the 
 33.14  subscriber so requests.  If a subscriber requests that the 
 33.15  telecommunications service provider not block the service or 
 33.16  later requests to have the block lifted, the subscriber is 
 33.17  responsible for charges caused by the future utilization of that 
 33.18  service.  The telecommunications service provider shall not 
 33.19  charge a recurring fee for blocking the service.  
 33.20     Sec. 9.  [237A.25] [ALARM TRANSMISSION TELEPHONE DEVICE; 
 33.21  RULES.] 
 33.22     Subdivision 1.  [PERMISSION REQUIRED.] A person desiring to 
 33.23  install or use an automatic, electrical, or mechanical device or 
 33.24  attachment to a telephone that reproduces a taped or prerecorded 
 33.25  message to report a police, fire, or other emergency to an 
 33.26  official emergency-reporting telephone number shall obtain 
 33.27  permission, in writing, from the sheriff of the county in which 
 33.28  located or the police chief or fire chief of the municipality 
 33.29  into whose emergency telephone number the attachment or device 
 33.30  is connected. 
 33.31     Subd. 2.  [CONDITIONS FOR CONNECTION.] The sheriff, police 
 33.32  chief, or fire chief may determine the conditions, if any, under 
 33.33  which the device or attachment may be connected, provided (1) 
 33.34  the conditions are reasonable in accordance with local 
 33.35  conditions and (2) the device or attachment complies with 
 33.36  commission rules. 
 34.1      Subd. 3.  [REMOVAL.] When the sheriff, police chief, or 
 34.2   fire chief has knowledge of the use of an attachment or device 
 34.3   not operated or maintained in accordance with this section, that 
 34.4   official may order its removal. 
 34.5      Subd. 4.  [PENALTY.] Violation of this section is a 
 34.6   misdemeanor.  
 34.7      Sec. 10.  [237A.26] [TRACER; HARASSING TELEPHONE CALL; 
 34.8   RULES.] 
 34.9      The commission shall adopt new or maintain existing rules, 
 34.10  as necessary, to govern how telephone companies respond to 
 34.11  requests for tracers made by persons who allege receiving 
 34.12  harassing telephone calls.  The rules must address when a 
 34.13  request for a tracer may be denied or delayed.  
 34.14                             ARTICLE 4 
 34.15                 COMMISSION PROCESS AND PROCEDURES 
 34.16     Section 1.  [237A.28] [INVESTIGATION.] 
 34.17     Subdivision 1.  [COMMISSION INVESTIGATIONS; 
 34.18  VIOLATIONS.] Subject to the provisions of section 237A.08, the 
 34.19  commission, with notice, may investigate cable and 
 34.20  telecommunications service providers for statute or rule 
 34.21  violations upon receipt of a complaint stating the basis of the 
 34.22  complaint.  
 34.23     Subd. 1a.  [SERVICE UNAVAILABILITY.] The commission must 
 34.24  give priority to investigations regarding the availability of 
 34.25  essential services. 
 34.26     Subd. 2.  [PROCEDURE AFTER INVESTIGATION.] If, after making 
 34.27  an investigation, the commission finds that a significant 
 34.28  factual issue raised has not been resolved to its satisfaction, 
 34.29  the commission shall order that a contested case hearing be 
 34.30  conducted under chapter 14 unless the complainant, the cable or 
 34.31  telecommunications service provider, and the commission agree 
 34.32  that an expedited hearing under section 237A.38 is appropriate. 
 34.33     Subd. 3.  [ORDER RESPECTING SERVICE.] After a proceeding 
 34.34  under subdivision 2, the commission shall make an order 
 34.35  respecting the cable or telecommunications service that is just 
 34.36  and reasonable, including orders that infrastructure be deployed 
 35.1   or cable or telecommunications services be offered.  
 35.2      Subd. 4.  [SERVICE; NOTICE.] A copy of an order issued 
 35.3   under this section must be served upon the person against whom 
 35.4   it runs or the person's attorney, and notice of the order must 
 35.5   be given to the other parties to the proceedings or their 
 35.6   attorneys.  
 35.7      Sec. 2.  [237A.29] [TRANSCRIBED COPY OF RECORD, EXPENSE.] 
 35.8      The commission shall keep a full and complete record of any 
 35.9   formal investigation or hearing.  Testimony received or offered 
 35.10  must be recorded in any manner determined by the commission.  A 
 35.11  transcribed copy of the record must be furnished to a party upon 
 35.12  payment of the expense of furnishing the transcribed copy. 
 35.13     When an appeal is taken from a commission order under this 
 35.14  chapter, the commission shall promptly have a certified 
 35.15  transcript made of all proceedings, all pleadings and files, and 
 35.16  all testimony taken or offered before it upon which the order 
 35.17  was based, showing particularly what evidence offered was 
 35.18  excluded, if any.  The transcript must be filed with the court 
 35.19  administrator of the court where the appeal is pending.  
 35.20     Sec. 3.  [237A.30] [APPEAL FROM DECISION OF COMMISSION.] 
 35.21     Any party to a proceeding before the commission may appeal 
 35.22  from the order in accordance with chapter 14.  
 35.23     Sec. 4.  [237A.31] [ORDER FINAL AND CONCLUSIVE.] 
 35.24     If an appeal is not taken from an order of the commission, 
 35.25  then in all subsequent litigation arising between the state and 
 35.26  a telecommunications or cable service provider or between a 
 35.27  private party and a cable or telecommunications service 
 35.28  provider, the order is final and conclusive.  
 35.29     Sec. 5.  [237A.32] [COMPELLING OBEDIENCE.] 
 35.30     When a telecommunications or cable service provider fails 
 35.31  to comply with a law of the state or an order of the commission 
 35.32  after it has become final, or an order or judgment of the 
 35.33  district court, the court of appeals, or the supreme court in 
 35.34  any case taken to any of the courts on appeal after the judgment 
 35.35  or order has become final, the commission shall apply to the 
 35.36  district court in the name of the state in a county in which the 
 36.1   cable or telecommunications service provider is situated, for a 
 36.2   mandatory injunction or other appropriate writ to compel 
 36.3   obedience to the law, order, or judgment.  The district court 
 36.4   shall punish disobedience of its orders in the enforcement 
 36.5   proceedings as for contempt of court.  
 36.6      Sec. 6.  [237A.33] [INFORMATION SUBJECT TO PROTECTIVE 
 36.7   ORDER.] 
 36.8      In commission meetings during which information that is 
 36.9   subject to a protective order is discussed, the commission shall 
 36.10  employ the procedures of section 14.60 to close to all persons 
 36.11  who are not authorized under law or the protective order to 
 36.12  obtain the information that portion of the meeting during which 
 36.13  the information will be discussed.  The commission shall take 
 36.14  other appropriate measures to ensure that the data is not 
 36.15  disclosed to persons who are not authorized to obtain the 
 36.16  information under law or under the protective order.  
 36.17     Sec. 7.  [237A.34] [ENFORCEMENT.] 
 36.18     Subdivision 1.  [ACTIONS.] This chapter and rules and 
 36.19  orders of the commission adopted under this chapter may be 
 36.20  enforced by any one or combination of criminal prosecution, 
 36.21  action to recover civil penalties, injunction, action to compel 
 36.22  performance, and other appropriate action.  
 36.23     Subd. 2.  [CIVIL PENALTY.] A person who knowingly and 
 36.24  intentionally violates a provision of this chapter or a rule or 
 36.25  order of the commission adopted under this chapter shall forfeit 
 36.26  and pay to the state a penalty, in an amount to be determined by 
 36.27  the court, of at least $100 and not more than $5,000 for each 
 36.28  day of each violation.  
 36.29     Subd. 3.  [CIVIL PENALTY FOR LOCAL COMPETITION VIOLATION.] 
 36.30  Notwithstanding subdivision 2, a person who knowingly and 
 36.31  intentionally commits a violation of section 237A.06 shall 
 36.32  forfeit and pay to the state a penalty, in an amount to be 
 36.33  determined by the court, of at least $100 and not more than 
 36.34  $55,000 for each day of each violation.  In determining the 
 36.35  amount of the penalty under this subdivision, the court shall 
 36.36  consider the factors in section 237A.35, subdivision 2.  
 37.1      Subd. 4.  [CIVIL PENALTY PROCEEDS DEPOSITED IN 
 37.2   TREASURY.] The civil penalties provided for in this section and 
 37.3   in section 237A.35 may be recovered by a civil action brought by 
 37.4   the attorney general in the name of the state.  Amounts 
 37.5   recovered under this section must be paid into the state 
 37.6   treasury.  
 37.7      Sec. 8.  [237A.35] [COMPETITIVE ENFORCEMENT; ADMINISTRATIVE 
 37.8   PENALTY ORDERS.] 
 37.9      Subdivision 1.  [AUTHORITY TO ISSUE PENALTY ORDERS.] (a) 
 37.10  The commission may issue an order administratively assessing 
 37.11  monetary penalties for knowing and intentional violations of: 
 37.12     (1) sections 237A.06, 237A.88, and any rules adopted under 
 37.13  those sections; 
 37.14     (2) any standards, limitations, or conditions established 
 37.15  in a commission order pursuant to section 237A.06; 
 37.16     (3) an approved interconnection agreement if the violation 
 37.17  is material; and 
 37.18     (4) any duty or obligation of an incumbent local service 
 37.19  provider imposed by the Telecommunications Act of 1996, section 
 37.20  251, paragraph (a), (b), or (c), that relates to local service 
 37.21  provided in the state. 
 37.22     (b) The penalty order must be issued as provided in this 
 37.23  section.  
 37.24     Subd. 2.  [AMOUNT OF PENALTY; CONSIDERATIONS.] (a) The 
 37.25  commission may issue an order assessing a penalty of between 
 37.26  $100 and $10,000 per day for each violation. 
 37.27     (b) In determining the amount of a penalty, the commission 
 37.28  shall consider: 
 37.29     (1) the willfulness or intent of the violation; 
 37.30     (2) the gravity of the violation, including the harm to 
 37.31  customers or competitors; 
 37.32     (3) the history of past violations, including the gravity 
 37.33  of past violations, similarity of previous violations to the 
 37.34  current violation to be penalized, number of previous 
 37.35  violations, the response of the person to the most recent 
 37.36  previous violation identified, and the time lapsed since the 
 38.1   last violation; 
 38.2      (4) the number of violations; 
 38.3      (5) the economic benefit gained by the person committing 
 38.4   the violation; 
 38.5      (6) any corrective action taken or planned by the person 
 38.6   committing the violation; 
 38.7      (7) the annual revenue and assets of the company committing 
 38.8   the violation, including the assets and revenue of any 
 38.9   affiliates that have 50 percent or more common ownership or that 
 38.10  own more than 50 percent of the company; 
 38.11     (8) the financial ability of the company, including any 
 38.12  affiliates that have 50 percent or more common ownership or that 
 38.13  own more than 50 percent of the company, to pay the penalty; and 
 38.14     (9) other factors that justice may require, as determined 
 38.15  by the commission.  The commission shall specifically identify 
 38.16  any additional factors in the commission's order.  
 38.17     Subd. 3.  [BURDEN OF PROOF.] The commission may not assess 
 38.18  a penalty under this section unless the record in the proceeding 
 38.19  establishes by a preponderance of the evidence that the penalty 
 38.20  is justified based on the factors identified in subdivision 2.  
 38.21     Subd. 4.  [CONTENTS OF ORDER.] An order assessing an 
 38.22  administrative penalty under this section must include: 
 38.23     (1) a concise statement of the facts alleged to constitute 
 38.24  a violation; 
 38.25     (2) a reference to the section of the statute, rule, or 
 38.26  order that has been violated; 
 38.27     (3) a statement of the amount of the administrative penalty 
 38.28  to be imposed and the factors upon which the penalty is based; 
 38.29  and 
 38.30     (4) a statement of the person's right to review the order.  
 38.31     Subd. 5.  [PENALTY STAYED.] A penalty imposed under this 
 38.32  section is not payable earlier than 31 days after the commission 
 38.33  issues its final order assessing the penalty.  The person 
 38.34  subject to the penalty may appeal the commission's penalty order 
 38.35  under sections 14.63 to 14.68.  If the person does appeal the 
 38.36  commission's penalty order, the penalty is payable only after 
 39.1   either all appeals have been exhausted or the person withdraws 
 39.2   the appeal.  
 39.3      Subd. 6.  [EXPEDITED PROCEEDING.] (a) The commission may 
 39.4   order an expedited proceeding under this subdivision and section 
 39.5   237A.38, in lieu of a contested case under chapter 14, to 
 39.6   develop an evidentiary record in any proceeding that involves 
 39.7   contested issues of material fact either upon request of a party 
 39.8   or upon the commission's own motion if the complaint alleges a 
 39.9   violation described in subdivision 1, clauses (1) to (4).  The 
 39.10  commission may order an expedited proceeding under this 
 39.11  subdivision if the commission finds an expedited proceeding is 
 39.12  in the public interest, regardless of whether all parties agree 
 39.13  to the expedited proceeding.  In determining whether to grant an 
 39.14  expedited proceeding, the commission may consider any evidence 
 39.15  of impairment of the provision of telecommunications service to 
 39.16  subscribers in the state or impairment of the provision of any 
 39.17  service or network element subject to the jurisdiction of the 
 39.18  commission. 
 39.19     (b) Any request for an expedited proceeding under this 
 39.20  subdivision must be noted in the title of the first filing by a 
 39.21  party.  The filing must also state the specific circumstances 
 39.22  that the party believes warrant an expedited proceeding under 
 39.23  this subdivision. 
 39.24     (c) A complaint requesting an expedited proceeding, unless 
 39.25  filed by the department or the attorney general, must set forth 
 39.26  the actions and the dates of the actions taken by the party 
 39.27  filing the complaint to attempt to resolve the alleged 
 39.28  violations with the party against whom the complaint is filed, 
 39.29  including any requests that the party against whom the complaint 
 39.30  is filed correct the conduct giving rise to the violations 
 39.31  alleged in the complaint.  If no such actions were taken by the 
 39.32  complainant, the complaint must set forth the reasons why no 
 39.33  such actions were taken.  The commission may order an expedited 
 39.34  proceeding even if the filing complaint fails to meet this 
 39.35  requirement if the commission determines that it would be in the 
 39.36  public interest to go forward with the expedited proceeding 
 40.1   without information in the complaint on attempts to resolve the 
 40.2   dispute. 
 40.3      (d) The complaining party shall serve the complaint along 
 40.4   with any written discovery requests by hand delivery and 
 40.5   facsimile on the party against whom the complaint is filed, the 
 40.6   department, and the attorney general on the same day the 
 40.7   complaint is filed with the commission. 
 40.8      (e) The party responding to a complaint that includes a 
 40.9   request for an expedited proceeding under this subdivision shall 
 40.10  file an answer within 15 days after receiving the complaint.  
 40.11  The responding party shall state in the answer the party's 
 40.12  position on the request for an expedited proceeding.  The 
 40.13  responding party shall serve with the answer any objections to 
 40.14  any written discovery requests as well as any written discovery 
 40.15  requests the responding party wishes to serve on the complaining 
 40.16  party.  Except for stating any objections, the responding party 
 40.17  is not required to answer any written discovery requests under 
 40.18  this subdivision until a time established at a prehearing 
 40.19  conference.  The responding party shall serve a copy of the 
 40.20  answer and any discovery requests and objections on the 
 40.21  complaining party, the department, and attorney general by hand 
 40.22  delivery and facsimile on the same day as the answer is filed 
 40.23  with the commission. 
 40.24     (f) Within 15 days of receiving the answer to a complaint 
 40.25  in a proceeding in which a party has requested an expedited 
 40.26  hearing, the commission shall determine whether the filing 
 40.27  warrants an expedited proceeding.  If the commission decides to 
 40.28  grant a request by a party or if the commission orders an 
 40.29  expedited proceeding on its own motion, the commission shall 
 40.30  conduct within seven days of the decision a prehearing 
 40.31  conference to schedule the evidentiary hearing.  During the 
 40.32  prehearing conference, the commission shall establish a 
 40.33  discovery schedule that requires all discovery to be completed 
 40.34  no later than three days before the start of the hearing.  An 
 40.35  evidentiary hearing under this subdivision must commence no 
 40.36  later than 45 days after the commission's decision to order an 
 41.1   expedited proceeding.  A quorum of the commission shall preside 
 41.2   at any evidentiary hearing under this subdivision unless all the 
 41.3   parties to the proceeding agree otherwise. 
 41.4      (g) All pleadings submitted under this subdivision must be 
 41.5   verified and all oral statements of fact made in a hearing or 
 41.6   deposition under this subdivision must be made under oath or 
 41.7   affirmation. 
 41.8      (h) The commission shall issue a written decision and final 
 41.9   order on the complaint within 15 days after the close of the 
 41.10  evidentiary hearing under this subdivision.  On the day of 
 41.11  issuance, the commission shall notify the parties by facsimile 
 41.12  that a final order has been issued and shall provide each party 
 41.13  with a copy of the final order. 
 41.14     (i) The commission may extend any time periods under this 
 41.15  subdivision if all parties to the proceeding agree to the 
 41.16  extension or if the commission finds the extension is necessary 
 41.17  to ensure a just resolution of the complaint. 
 41.18     (j) Except as otherwise provided in this subdivision, an 
 41.19  expedited proceeding under this subdivision shall be governed by 
 41.20  the following procedural rules: 
 41.21     (1) the parties have the discovery rights provided in 
 41.22  Minnesota Rules, parts 1400.6700 to 1400.7000; 
 41.23     (2) the parties have the right to cross-examine witnesses 
 41.24  as provided in section 14.60, subdivision 3; 
 41.25     (3) the admissibility of evidence and development of record 
 41.26  for decision is governed by section 14.60 and Minnesota Rules, 
 41.27  part 1400.7300; and 
 41.28     (4) the commission may apply other procedures or standards 
 41.29  included in the rules of the office of administrative hearings, 
 41.30  as necessary to ensure the fair and expeditious resolution of 
 41.31  disputes under this section.  
 41.32     Subd. 7.  [TEMPORARY RELIEF PENDING DISPUTE RESOLUTION.] (a)
 41.33  A person filing a complaint may include in the complaint a 
 41.34  request that the commission issue an order granting temporary 
 41.35  relief under paragraph (c) if the complaint alleges a violation 
 41.36  described in subdivision 1, clauses (1) to (4).  Any request for 
 42.1   temporary relief under this subdivision must be noted in the 
 42.2   title of the complaint.  The complaining party shall provide a 
 42.3   copy of the complaint requesting temporary relief by hand 
 42.4   delivery and facsimile to the party alleged to be in violation 
 42.5   on the same day a complaint requesting such relief is filed with 
 42.6   the commission.  The commission shall issue a decision upon such 
 42.7   a request within 20 days of the filing of the complaint. 
 42.8      (b) The commission may also order temporary relief on its 
 42.9   own motion for an alleged violation of one or more of the 
 42.10  provisions of subdivision 1, clauses (1) to (4), in accordance 
 42.11  with this subdivision. 
 42.12     (c) After notice and an opportunity for comment, the 
 42.13  commission may grant an order for temporary relief under this 
 42.14  subdivision upon a verified factual showing that: 
 42.15     (1) the party seeking relief will likely succeed on the 
 42.16  merits; 
 42.17     (2) the order is necessary to protect the public's interest 
 42.18  in fair and reasonable competition; and 
 42.19     (3) the relief sought is technically feasible. 
 42.20     An order for temporary relief must include a finding that 
 42.21  the requirements of this subdivision have been fulfilled. 
 42.22     (d) In an order granting temporary relief, the commission 
 42.23  shall require the responding party to act or refrain from acting 
 42.24  as the commission deems necessary to avoid, prevent, or mitigate 
 42.25  the complained-of harm to subscribers or local exchange 
 42.26  telephone service providers resulting from the alleged violation 
 42.27  of one or more of the provisions in subdivision 1, clauses (1) 
 42.28  to (4).  The commission must give the responding party a 
 42.29  reasonable period of time to comply with the order. 
 42.30     (e) A party may seek review, reconsideration, or rehearing 
 42.31  of a temporary relief order prior to a final decision on the 
 42.32  complaint by the commission. 
 42.33     (f) If there is a material issue of fact and the commission 
 42.34  issues an order based on written pleadings without an 
 42.35  evidentiary hearing, the order may not remain in effect for more 
 42.36  than 30 days prior to which time the commission shall hold an 
 43.1   evidentiary hearing to determine whether the order for temporary 
 43.2   relief should be continued, modified, or reversed.  Otherwise, 
 43.3   an order for temporary relief shall remain in effect until a 
 43.4   final order is issued by the commission unless the commission or 
 43.5   a court issues an order or decision reversing the order for 
 43.6   temporary relief.  
 43.7      Subd. 8.  [ENFORCEMENT BY ATTORNEY GENERAL.] The attorney 
 43.8   general, on behalf of the state, may proceed to enforce and 
 43.9   collect penalties that are due and payable under this section in 
 43.10  any manner provided to the attorney general by other law.  
 43.11     Subd. 9.  [CUMULATIVE REMEDIES.] The attorney general may 
 43.12  not seek civil penalties under section 237A.34 for the same 
 43.13  violations for which the commission has issued an order imposing 
 43.14  administrative monetary penalties under this section.  The 
 43.15  imposition of administrative penalties in accordance with this 
 43.16  section is in addition to all other remedies available under 
 43.17  statutory or common law.  The payment of a penalty does not 
 43.18  preclude the use of other enforcement provisions, under which 
 43.19  penalties are not assessed, in connection with the violation or 
 43.20  violations for which the penalty was assessed.  
 43.21     Subd. 10.  [PRIVATE REMEDIES.] Nothing in this section 
 43.22  affects the ability of a telecommunications service provider or 
 43.23  subscriber to bring a private cause of action in court against 
 43.24  an incumbent local service provider based on conduct for which a 
 43.25  penalty is imposed under this section.  
 43.26     Sec. 9.  [237A.36] [ASSESSMENT OF REGULATORY EXPENSES.] 
 43.27     Subdivision 1.  [PAYMENT FOR INVESTIGATION.] (a) Whenever 
 43.28  the department or commission, in a proceeding upon its own 
 43.29  motion, on complaint, or upon an application to it, considers it 
 43.30  necessary, in order to carry out the duties imposed on it, to 
 43.31  investigate the books, accounts, practices, and activities of 
 43.32  any company, parties to the proceeding shall pay the expenses 
 43.33  reasonably attributable to the proceeding.  The department and 
 43.34  commission shall ascertain the expenses, and the department 
 43.35  shall render a bill for those expenses to the parties, at the 
 43.36  conclusion of the proceeding.  The department is authorized to 
 44.1   submit billings to parties at intervals selected by the 
 44.2   department during the course of a proceeding. 
 44.3      (b) The allocation of costs may be adjusted for cause by 
 44.4   the commission during the course of the proceeding, or upon the 
 44.5   closing of the docket and issuance of an order.  In addition to 
 44.6   the rights granted in subdivision 3, parties to a proceeding may 
 44.7   object to the allocation at any time during the proceeding.  
 44.8   Withdrawal by a party to a proceeding does not absolve the party 
 44.9   from paying allocated costs as determined by the commission.  
 44.10  The commission may decide that a party should not pay any 
 44.11  allocated costs of the proceeding. 
 44.12     (c) The bill constitutes notice of the assessment and a 
 44.13  demand for payment.  The amount of the bills assessed by the 
 44.14  department under this subdivision must be paid by the parties 
 44.15  into the state treasury within 30 days from the date of 
 44.16  assessment.  The total amount, in a calendar year, for which a 
 44.17  telecommunications or cable service provider may become liable, 
 44.18  by reason of costs incurred by the department and commission 
 44.19  within that calendar year, may not exceed two-fifths of one 
 44.20  percent of the gross jurisdictional operating revenue of the 
 44.21  telecommunications or cable service provider in the last 
 44.22  preceding calendar year.  Direct charges may be assessed without 
 44.23  regard to this limitation until the gross jurisdictional 
 44.24  operating revenue of the telecommunications or cable service 
 44.25  provider for the preceding calendar year has been reported for 
 44.26  the first time.  Where, under this subdivision, costs are 
 44.27  incurred within a calendar year that are in excess of two-fifths 
 44.28  of one percent of the gross jurisdictional operating revenues, 
 44.29  the excess costs are not chargeable as part of the remainder 
 44.30  under subdivision 2. 
 44.31     (d) Except as otherwise provided in paragraph (e), for 
 44.32  purposes of assessing the cost of a proceeding to a party, 
 44.33  "party" means any entity or group subject to the laws and rules 
 44.34  of this state, however organized, whether public or private, 
 44.35  whether domestic or foreign, whether for profit or nonprofit, 
 44.36  and whether natural, corporate, or political, such as a business 
 45.1   or commercial enterprise organized as any type or combination of 
 45.2   corporation, limited liability company, partnership, limited 
 45.3   liability partnership, proprietorship, association, cooperative, 
 45.4   joint venture, carrier, or utility, and any successor or 
 45.5   assignee of any of them; a social or charitable organization; 
 45.6   and any type or combination of political subdivision, which 
 45.7   includes the executive, judicial, or legislative branch of the 
 45.8   state, a local government unit, an agency of the state or local 
 45.9   government unit, or a combination of any of them. 
 45.10     (e) For assessment and billing purposes, "party" does not 
 45.11  include the department or the attorney general; any entity or 
 45.12  group instituted primarily for the purpose of mutual help and 
 45.13  not conducted for profit; intervenors awarded compensation; or 
 45.14  any individual or group or counsel for the individual or group 
 45.15  representing the interests of end users or classes of end users 
 45.16  of services provided by telecommunications or cable service 
 45.17  providers, as determined by the commission. 
 45.18     Subd. 2.  [ASSESSMENT OF COSTS.] The department and 
 45.19  commission shall quarterly, at least 30 days before the start of 
 45.20  each quarter, estimate the total of their expenditures in the 
 45.21  performance of their duties relating to telecommunications or 
 45.22  cable service providers, other than amounts chargeable to 
 45.23  telecommunications or cable service providers under subdivision 
 45.24  1 or 5.  The remainder must be assessed by the department to the 
 45.25  telecommunications or cable service providers operating in this 
 45.26  state in proportion to their respective gross jurisdictional 
 45.27  operating revenues during the last calendar year.  The 
 45.28  assessment must be paid into the state treasury within 30 days 
 45.29  after the bill has been mailed to the companies, and credited to 
 45.30  the general fund.  The bill constitutes notice of the assessment 
 45.31  and demand of payment.  The total amount that may be assessed to 
 45.32  the companies under this subdivision may not exceed one-eighth 
 45.33  of one percent of the total gross jurisdictional operating 
 45.34  revenues during the calendar year.  The assessment for the third 
 45.35  quarter of each fiscal year must be adjusted to compensate for 
 45.36  the amount by which actual expenditures by the commission and 
 46.1   department for the preceding fiscal year were more or less than 
 46.2   the estimated expenditures previously assessed.  A 
 46.3   telecommunications service provider with gross jurisdictional 
 46.4   operating revenues of less than $5,000 is exempt from 
 46.5   assessments under this subdivision. 
 46.6      Subd. 3.  [OBJECTION.] Within 30 days after the date of the 
 46.7   mailing of any bill as provided by subdivision 1, 2, or 5 the 
 46.8   parties to the proceeding, against which the bill has been 
 46.9   assessed, may file with the commission objections setting out 
 46.10  the grounds upon which it is claimed the bill is excessive, 
 46.11  erroneous, unlawful, or invalid.  The commission shall within 60 
 46.12  days issue an order in accordance with its findings.  The order 
 46.13  is appealable in the same manner as other final orders of the 
 46.14  commission. 
 46.15     Subd. 4.  [INTEREST IMPOSED.] The amounts assessed against 
 46.16  any telecommunications or cable service provider or other party 
 46.17  that is not paid after 30 days after the mailing of a notice 
 46.18  advising the telecommunications or cable service provider or 
 46.19  other party of the amount assessed against it, draw interest at 
 46.20  the rate of six percent per annum, and upon failure to pay the 
 46.21  assessment the attorney general shall proceed by action in the 
 46.22  name of the state against the telecommunications or cable 
 46.23  service provider or other party to collect the amount due, 
 46.24  together with interest and the cost of the suit. 
 46.25     Subd. 5.  [ADMINISTRATIVE HEARING COSTS; 
 46.26  APPROPRIATION.] Any amounts billed to the commission or the 
 46.27  department by the office of administrative hearings for 
 46.28  contested case hearings held pursuant to section 237A.28, 
 46.29  subdivision 2, must be assessed by the commission or the 
 46.30  department against the parties to the proceeding.  The 
 46.31  assessment must be paid into the state treasury within 30 days 
 46.32  after a bill, which constitutes notice of the assessment and 
 46.33  demand for payment of it, has been mailed to the parties.  Money 
 46.34  received must be credited to a special account and is 
 46.35  appropriated to the commission or the department for payment to 
 46.36  the office of administrative hearings.  
 47.1      Sec. 10.  [237A.37] [TELECOMMUNICATIONS INVESTIGATION FUND; 
 47.2   APPROPRIATION.] 
 47.3      The sum of $25,000 is appropriated out of any money in the 
 47.4   state treasury not otherwise appropriated, to establish and 
 47.5   provide a revolving fund to be known as the Minnesota 
 47.6   Telecommunications Investigation Fund for the use of the 
 47.7   department of commerce and of the attorney general in 
 47.8   investigations, valuations, and revaluations under section 
 47.9   237A.36.  All sums paid by telecommunications service providers 
 47.10  to reimburse the department for its expenses pursuant to section 
 47.11  237A.36 must be credited to the revolving fund and deposited in 
 47.12  a separate bank account and not commingled with any other state 
 47.13  money or funds, but any balance in excess of $25,000 in the 
 47.14  revolving fund at the end of each fiscal year must be paid into 
 47.15  the state treasury and credited to the general fund.  The sum of 
 47.16  $25,000 herein appropriated and all subsequent credits to the 
 47.17  revolving fund must be paid upon the warrant of the commissioner 
 47.18  of finance upon application of the department or of the attorney 
 47.19  general to an aggregate amount of not more than one-half of such 
 47.20  sums to each of them, which proportion must be constantly 
 47.21  maintained in all credits and withdrawals from the revolving 
 47.22  fund. 
 47.23     Sec. 11.  [237A.38] [EXPEDITED PROCEEDING.] 
 47.24     Notwithstanding chapter 14, the commission may conduct an 
 47.25  expedited proceeding when authorized under this chapter. In an 
 47.26  expedited proceeding, the commission shall give prior notice to 
 47.27  interested persons and provide them with an opportunity to 
 47.28  present statements of fact and argument and to reply, either 
 47.29  orally or in writing or both.  In an expedited proceeding, the 
 47.30  pleadings must be verified, and oral statements of fact must be 
 47.31  made under oath or affirmation.  The commission shall make a 
 47.32  decision in an expedited proceeding based on the record.  
 47.33     Sec. 12.  [237A.39] [GROSS MISDEMEANOR VIOLATION.] 
 47.34     A telecommunications service provider who violates any 
 47.35  provision of this chapter, with intent to defraud, is guilty of 
 47.36  a gross misdemeanor.  
 48.1                              ARTICLE 5 
 48.2                          UNIVERSAL SERVICE 
 48.3      Section 1.  [237A.40] [ACCESS CHARGES.] 
 48.4      Subdivision 1.  [COMMISSION PROCEEDING; STANDARDS.] (a) 
 48.5   Charges for access service must be reduced for all local service 
 48.6   providers in the following manner: 
 48.7      (1) Within 30 days of the effective date of this section, 
 48.8   all intrastate carrier common line charge (CCLC) rates, or other 
 48.9   rates designed to recover any portion of a local service 
 48.10  provider's loop cost, which are tariffed or charged pursuant to 
 48.11  former section 237.12, subdivision 3, must be reduced to no more 
 48.12  than five cents per minute of use from the prevailing rate upon 
 48.13  the effective date of this section.  The effective rate must be 
 48.14  determined by dividing total intrastate carrier common line 
 48.15  revenue for the most recent 12 months by the local switched 
 48.16  minutes of use for the same time period. 
 48.17     (2) Beginning one year after the effective date of this 
 48.18  section, the CCLC rates, or other rates designed to recover any 
 48.19  portion of a local service provider's loop cost, must be reduced 
 48.20  annually from the level established under clause (1) by 20 
 48.21  percent per year for five years, thereby eliminating this rate 
 48.22  element by the end of the fifth year. 
 48.23     (3) Rates designed to recover switching costs associated 
 48.24  with access services, which are currently tariffed or charged by 
 48.25  a local service provider, must be capped at two cents per minute 
 48.26  of use, upon the effective date of this chapter. 
 48.27     (4) Rates designed to cover transport costs associated with 
 48.28  access services, which are currently tariffed or charged by 
 48.29  local service providers, must be capped at tariffed levels 
 48.30  current on the effective date of this section. 
 48.31     (b) Access charges for any local service provider must be 
 48.32  based upon the forward-looking economic costs of providing 
 48.33  access service. 
 48.34     (c) Access charges established for each provider must be 
 48.35  uniform, regardless of their application to the termination of 
 48.36  long distance calls, and regardless of the technology employed 
 49.1   by the interconnecting company. 
 49.2      (d) A local service provider may seek permission from the 
 49.3   commission to charge higher rates for access than those 
 49.4   established in paragraph (a).  The burden of justifying access 
 49.5   charge rates based on economic cost rests on the local service 
 49.6   provider.  
 49.7      Sec. 2.  [237A.41] [CALCULATING SERVICE COSTS FOR LOCAL 
 49.8   SERVICE AREA.] 
 49.9      By December 31, 2003, the commission shall complete a 
 49.10  proceeding to calculate the forward-looking deaveraged cost of 
 49.11  service for each local service area of an eligible 
 49.12  telecommunications carrier in the state.  Costs may be 
 49.13  deaveraged within a local service area based on a town and rural 
 49.14  distinction if technically feasible. 
 49.15     Sec. 3.  [237A.42] [UNIVERSAL SERVICE FUND; EXCISE TAX.] 
 49.16     Subdivision 1.  [FUND CREATED; ACCOUNTS; APPROPRIATION.] (a)
 49.17  The Minnesota universal service fund is created as a special 
 49.18  fund in the state treasury.  Unless otherwise provided under 
 49.19  this chapter, the fund is to be administered by the universal 
 49.20  service fund board of trustees.  All interest and earnings of 
 49.21  the accounts in the universal service fund must be credited to 
 49.22  the fund.  Money in the fund must be invested by the state board 
 49.23  of investment and is annually appropriated to the board of 
 49.24  trustees for the purposes enumerated in this chapter.  The 
 49.25  commissioner of revenue shall administer revenue collections for 
 49.26  the fund.  
 49.27     (b) The universal service fund includes four accounts: 
 49.28     (1) the high-cost customer account; 
 49.29     (2) the telecommunications access Minnesota account; 
 49.30     (3) the telecommunication assistance program account; and 
 49.31     (4) the advanced services account. 
 49.32  Money may be transferred between fund accounts to carry out the 
 49.33  purposes of this section. 
 49.34     Subd. 1a.  [BOARD OF TRUSTEES.] The universal service fund 
 49.35  board of trustees is created to manage the universal service 
 49.36  fund.  The board consists of seven members appointed by the 
 50.1   governor.  Terms, compensation, removal, and filling of 
 50.2   vacancies of members shall be governed by section 15.0575.  The 
 50.3   department of commerce shall provide clerical support to the 
 50.4   board and provide space and other administrative support. 
 50.5      Subd. 2.  [ELIGIBLE TELECOMMUNICATIONS CARRIERS.] (a) A 
 50.6   telecommunications service provider designated as a state 
 50.7   eligible telecommunications carrier (ETC) under paragraph (b) or 
 50.8   (c) is eligible to receive universal service support in 
 50.9   accordance with section 237A.43 and must, throughout the service 
 50.10  area for which the designation is received: 
 50.11     (1) be able and willing to provide essential services, 
 50.12  either using its own facilities or a combination of its own 
 50.13  facilities and resale of another carrier's services, including 
 50.14  the services offered by another eligible telecommunications 
 50.15  carrier; 
 50.16     (2) advertise the availability of these services and their 
 50.17  charges, using media of general distribution; and 
 50.18     (3) demonstrate that without state universal support, the 
 50.19  telecommunications service provider cannot recover its embedded 
 50.20  costs of service in the area for which it receives a subsidy. 
 50.21     (b) Upon its own motion or upon request, the commission 
 50.22  shall designate one or more telecommunications service providers 
 50.23  that meet the requirements of paragraph (a) as eligible 
 50.24  telecommunications carriers for a service area designated by the 
 50.25  commission. 
 50.26     (c) Upon its own motion or upon request, the commission may 
 50.27  revoke an ETC designation if it finds a company no longer meets 
 50.28  the requirements of paragraph (a).  
 50.29     (d) The fund must be administered and distributed in 
 50.30  accordance with any rules adopted by the commission and designed 
 50.31  to preserve the availability of universal service throughout the 
 50.32  state.  To the extent that any existing rules of the commission 
 50.33  are inconsistent with this section, the commission must repeal 
 50.34  those rules and they are without effect.  The commission may, if 
 50.35  necessary, modify its universal service rules to conform to this 
 50.36  chapter. 
 51.1      Subd. 3.  [EXCISE TAX.] (a) There is imposed on all 
 51.2   telecommunications service providers, cable service providers, 
 51.3   and other providers of multichannel video programming services, 
 51.4   a tax of five percent of the retail price charged for interstate 
 51.5   and intrastate telecommunications services, cable services, and 
 51.6   other multichannel video programming services.  The tax must be 
 51.7   included on the bill submitted by the provider of the services 
 51.8   for which the tax is payable and collected by that provider.  
 51.9   The provider shall remit the tax proceeds collected to the 
 51.10  commissioner of revenue on a monthly basis.  These proceeds must 
 51.11  be deposited in the state treasury and credited to the universal 
 51.12  service fund.  
 51.13     (b) Cable service providers shall receive a credit 
 51.14  applicable to any tax obligation under paragraph (a) in the 
 51.15  total statewide amount of franchise fees paid pursuant to 
 51.16  section 237A.81.  
 51.17     Sec. 4.  [237A.43] [HIGH-COST CUSTOMER ACCOUNT; PAYMENTS.] 
 51.18     (a) By December 31, 2003, the commission shall establish a 
 51.19  statewide average revenue benchmark, based on the average local 
 51.20  service revenue per month per line.  This revenue benchmark may 
 51.21  be updated as the commission deems appropriate.  Eligible 
 51.22  telecommunications carriers whose forward-looking costs for 
 51.23  providing essential services, calculated by the commission under 
 51.24  section 237A.41, exceed the state revenue benchmark may receive 
 51.25  monthly payments from the high-cost customer account in the 
 51.26  universal service fund for the amount of the excess for support 
 51.27  in providing essential services to residential and business 
 51.28  customers in those high-cost areas, as determined by the 
 51.29  commission.  
 51.30     (b) In lieu of payments under paragraph (a), an eligible 
 51.31  telecommunications carrier may elect, for any of the first five 
 51.32  years that payments are made from the high-cost account, to 
 51.33  receive payments for lost access charges as provided by this 
 51.34  paragraph. 
 51.35     For the purpose of this paragraph, the "base year amount" 
 51.36  is the access charge revenue received by an eligible 
 52.1   telecommunications carrier in calendar year 2003. 
 52.2      For calendar year 2004, the amount payable is 80 percent of 
 52.3   the difference between the base year revenue and access charges 
 52.4   actually received in 2004. 
 52.5      The 80 percent multiplier shall be reduced by ten percent 
 52.6   in each of the next four years so that by 2008 the payment shall 
 52.7   be calculated on the difference between 40 percent of the base 
 52.8   year revenue and the amount actually received. 
 52.9      Payments will only be made based on reductions in actual 
 52.10  revenue.  This paragraph expires January 1, 2009. 
 52.11     The department shall pay out these funds to eligible 
 52.12  telecommunications carriers from funds available in the 
 52.13  high-cost customer account.  
 52.14     Sec. 5.  [237A.44] [DESIGNATING ELIGIBLE CARRIERS FOR 
 52.15  UNSERVED AREAS.] 
 52.16     Subdivision 1.  [CARRIERS OF LAST RESORT.] (a) All 
 52.17  incumbent local service providers shall continue to provide 
 52.18  essential telecommunications services to the geographic area 
 52.19  served on the effective date of this section. 
 52.20     (b) An incumbent local service provider that offers or 
 52.21  provides a telecommunications service to a customer on a 
 52.22  separate, stand-alone basis within a wire center or access line 
 52.23  cluster shall provide that telecommunications service to all 
 52.24  similarly situated persons within that wire center or access 
 52.25  line cluster upon request.  
 52.26     Subd. 2.  [COMMISSION MAY DESIGNATE CARRIER.] If no local 
 52.27  service provider will provide the essential services that are 
 52.28  supported by state universal service support mechanisms under 
 52.29  section 237A.42 or 237A.43, the commission may determine which 
 52.30  local service providers shall provide these essential services 
 52.31  to the requesting, unserved area and may order a local service 
 52.32  provider to provide the essential services to that unserved area.
 52.33     Subd. 3.  [DENSITY CRITERIA.] The commission shall not 
 52.34  require a local service provider to serve an unserved territory 
 52.35  unless 50 percent of the full-time residents and businesses 
 52.36  within a three-mile radius of the nearest technically feasible 
 53.1   interconnection point of an eligible telecommunications carrier 
 53.2   petitions the commission for an order requiring that the service 
 53.3   be provided.  
 53.4      Sec. 6.  [237A.45] [RELINQUISHMENT OF UNIVERSAL SERVICE.] 
 53.5      The commission may relieve the obligations of a carrier of 
 53.6   last resort under section 237A.44 if the commission finds that 
 53.7   all customers served by the relinquishing carrier will continue 
 53.8   to receive essential telecommunications services from another 
 53.9   local service provider without interruption of service.  
 53.10     Sec. 7.  [237A.46] [DEFINITIONS.] 
 53.11     Subdivision 1.  [SCOPE.] The terms used in sections 237A.46 
 53.12  to 237A.51 have the meanings given them in this section. 
 53.13     Subd. 2.  [COMMUNICATION IMPAIRED.] "Communication impaired"
 53.14  means certified as deaf, severely hearing impaired, 
 53.15  hard-of-hearing, speech impaired, deaf and blind, or mobility 
 53.16  impaired if the mobility impairment significantly impedes the 
 53.17  ability to use standard, customer premises equipment. 
 53.18     Subd. 3.  [COMMUNICATION DEVICE.] "Communication device" 
 53.19  means a device that enables a communication-impaired person to 
 53.20  communicate with another person utilizing the telecommunications 
 53.21  system.  A communication device includes a ring signaler, an 
 53.22  amplification device, a telephone device for the deaf, a 
 53.23  brailling device for use with a telephone, speech synthesizer, 
 53.24  and any other device the department of human services deems 
 53.25  necessary. 
 53.26     Subd. 4.  [DEAF.] "Deaf" means a hearing impairment of such 
 53.27  severity that the individual must depend primarily upon visual 
 53.28  communication such as writing, lip reading, manual 
 53.29  communication, and gestures. 
 53.30     Subd. 5.  [EXCHANGE.] "Exchange" means a unit area 
 53.31  established and described by the tariff of a telecommunications 
 53.32  service provider for the administration of telecommunications 
 53.33  service in a specified geographical area, usually embracing a 
 53.34  city or town and its environs, and served by one or more central 
 53.35  offices, together with associated facilities used in providing 
 53.36  service within that area. 
 54.1      Subd. 6.  [HARD-OF-HEARING.] "Hard-of-hearing" means a 
 54.2   hearing impairment resulting in a functional loss, but not to 
 54.3   the extent that the individual must depend primarily upon visual 
 54.4   communication. 
 54.5      Subd. 7.  [INTEREXCHANGE SERVICE.] "Interexchange service" 
 54.6   means telecommunications service between points in two or more 
 54.7   exchanges. 
 54.8      Subd. 8.  [INTER-LATA INTEREXCHANGE SERVICE.] "Inter-LATA 
 54.9   interexchange service" means interexchange service originating 
 54.10  and terminating in different LATAs. 
 54.11     Subd. 9.  [LOCAL ACCESS AND TRANSPORT AREA.] "Local access 
 54.12  and transport area" (LATA) means a geographical area designated 
 54.13  by the Modification of Final Judgment in U.S. v. Western 
 54.14  Electric Co., Inc., 552 F. Supp. 131 (D.D.C. 1982), including 
 54.15  modifications in effect on the effective date of this chapter. 
 54.16     Subd. 10.  [LOCAL EXCHANGE SERVICE.] "Local exchange 
 54.17  service" means telecommunications service between points within 
 54.18  an exchange. 
 54.19     Subd. 11.  [TELECOMMUNICATION RELAY SERVICE.] 
 54.20  "Telecommunication relay service" means a central statewide 
 54.21  service through which a communication-impaired person, using a 
 54.22  communication device, may send and receive messages to and from 
 54.23  a non-communication-impaired person whose telephone is not 
 54.24  equipped with a communication device and through which a 
 54.25  non-communication-impaired person may, by using voice 
 54.26  communication, send and receive messages to and from a 
 54.27  communication-impaired person.  
 54.28     Sec. 8.  [237A.47] [RELAY SERVICE PROGRAM ADMINISTRATION.] 
 54.29     Subdivision 1.  [CREATION.] The department shall administer 
 54.30  through interagency agreement with the department of human 
 54.31  services a program to distribute communication devices to 
 54.32  eligible communication-impaired persons and contract with a 
 54.33  qualified vendor that serves communication-impaired persons to 
 54.34  create and maintain a telecommunications relay service.  For 
 54.35  purposes of sections 237A.46 to 237A.51, the department and any 
 54.36  organization with which it contracts pursuant to this section or 
 55.1   section 237A.50, are not telecommunications service providers.  
 55.2      Subd. 2.  [DEPARTMENT OF COMMERCE DUTIES; RULES.] In 
 55.3   addition to duties specified elsewhere in sections 237A.46 to 
 55.4   237A.51, the department shall: 
 55.5      (1) administer the fund created in section 237A.48; and 
 55.6      (2) adopt new or maintain existing rules as necessary under 
 55.7   chapter 14 to implement sections 237A.47 to 237A.51.  
 55.8      Subd. 3.  [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 
 55.9   addition to any duties specified elsewhere in sections 237A.48 
 55.10  to 237A.51, the department of human services shall: 
 55.11     (1) define economic hardship, special needs, and household 
 55.12  criteria so as to determine the priority of eligible applicants 
 55.13  for initial distribution of devices and to determine 
 55.14  circumstances necessitating provision of more than one 
 55.15  communication device per household; 
 55.16     (2) establish a method to verify eligibility requirements; 
 55.17     (3) establish specifications for communication devices to 
 55.18  be purchased under section 237A.49, subdivision 3; and 
 55.19     (4) inform the public and specifically the community of 
 55.20  communication-impaired persons of the program. 
 55.21     (b) The department may establish an advisory board to 
 55.22  advise the department in carrying out the duties specified in 
 55.23  this section and to advise the department of commerce in 
 55.24  carrying out its duties under section 237A.47.  If so 
 55.25  established, the advisory board must include, at a minimum, the 
 55.26  following communication-impaired persons: 
 55.27     (1) at least one member who is deaf; 
 55.28     (2) at least one member who is speech impaired; 
 55.29     (3) at least one member who is mobility impaired; and 
 55.30     (4) at least one member who is hard-of-hearing. 
 55.31  The membership terms, compensation, and removal of members and 
 55.32  the filling of membership vacancies are governed by section 
 55.33  15.059.  Advisory board meetings must be held at the discretion 
 55.34  of the commissioner.  
 55.35     Sec. 9.  [237A.48] [TELECOMMUNICATIONS ACCESS MINNESOTA; 
 55.36  APPROPRIATION.] 
 56.1      Subdivision 1.  [ACCOUNT CREATED; DEDICATED 
 56.2   APPROPRIATION.] (a) The telecommunications access Minnesota 
 56.3   account is created as an account in the Minnesota universal 
 56.4   service fund.  
 56.5      (b) Four percent of the proceeds of the excise tax 
 56.6   collected under section 237A.42, must be transferred to the 
 56.7   telecommunications access Minnesota account from the universal 
 56.8   service fund and is appropriated to the department of commerce 
 56.9   for the purposes of sections 237A.46 to 237A.51. 
 56.10     (c) Any unobligated money in the telecommunication access 
 56.11  Minnesota fund formerly established under section 237.52, does 
 56.12  not lapse and is transferred to the telecommunications access 
 56.13  Minnesota account of the Minnesota universal service fund on the 
 56.14  effective date of this section and appropriated to the 
 56.15  commissioner of commerce for the expenditures described in 
 56.16  subdivision 2. 
 56.17     Subd. 2.  [EXPENDITURES.] (a) Money in the account may be 
 56.18  used for: 
 56.19     (1) expenses of the department, including personnel cost, 
 56.20  public relations, advisory board members' expenses, preparation 
 56.21  of reports, indirect costs, and other reasonable expenses not to 
 56.22  exceed ten percent of total program expenditures; 
 56.23     (2) reimbursing the commissioner of human services for 
 56.24  purchases made or services provided pursuant to section 237A.49; 
 56.25     (3) reimbursing telecommunications service providers for 
 56.26  purchases made or services provided under section 237A.49, 
 56.27  subdivision 5; and 
 56.28     (4) contracting for establishment and operation of the 
 56.29  telecommunication relay service required by section 237A.50. 
 56.30     (b) All costs directly associated with the establishment of 
 56.31  the program, the purchase and distribution of communication 
 56.32  devices, and the establishment and operation of the 
 56.33  telecommunication relay service are either reimbursable or 
 56.34  directly payable from the fund after authorization by the 
 56.35  department.  The department shall contract with the message 
 56.36  relay service operator to indemnify the local exchange carriers 
 57.1   of the relay service for any fines imposed by the Federal 
 57.2   Communications Commission related to the failure of the relay 
 57.3   service to comply with federal service standards.  
 57.4   Notwithstanding section 16A.41, the department may advance money 
 57.5   to a telecommunication relay service customer service contractor 
 57.6   if the customer service contractor establishes to the 
 57.7   department's satisfaction that the advance payment is necessary 
 57.8   for the operation of the service.  The advance payment must be 
 57.9   offset or repaid by the end of the contract fiscal year together 
 57.10  with interest accrued from the date of payment.  
 57.11     Sec. 10.  [237A.49] [COMMUNICATION DEVICE.] 
 57.12     Subdivision 1.  [APPLICATION.] A person applying for a 
 57.13  communication device under this section shall apply to the 
 57.14  program administrator on a form prescribed by the department of 
 57.15  human services. 
 57.16     Subd. 2.  [ELIGIBILITY.] To be eligible to obtain a 
 57.17  communication device under this section, a person must be: 
 57.18     (1) able to benefit from and use the equipment for its 
 57.19  intended purpose; 
 57.20     (2) communication impaired; 
 57.21     (3) a resident of the state; 
 57.22     (4) a resident in a household that has a median income at 
 57.23  or below the applicable median household in the state, except a 
 57.24  deaf and blind person applying for a brailling device may reside 
 57.25  in a household that has a median income no more than 150 percent 
 57.26  of the applicable median household income in the state; and 
 57.27     (5) a resident in a household that has telecommunications 
 57.28  service or that has applied for service and has been assigned a 
 57.29  telephone number, or a resident in a residential care facility, 
 57.30  such as a nursing home or group home where telecommunications 
 57.31  service is not included as part of the overall service provision.
 57.32     Subd. 3.  [DISTRIBUTION.] The commissioner of human 
 57.33  services shall purchase and distribute a sufficient number of 
 57.34  communication devices so that each eligible household receives 
 57.35  an appropriate device.  The commissioner of human services shall 
 57.36  distribute the devices to eligible households in each service 
 58.1   area free of charge as determined under this section. 
 58.2      Subd. 4.  [TRAINING; MAINTENANCE.] The commissioner of 
 58.3   human services shall maintain the communication devices until 
 58.4   the warranty period expires, and provide training, without 
 58.5   charge, to first-time users of the devices. 
 58.6      Subd. 5.  [WIRING INSTALLATION.] If a 
 58.7   communication-impaired person is not served by 
 58.8   telecommunications service and is subject to economic hardship 
 58.9   as determined by the department of human services, the 
 58.10  telecommunications service provider providing local service 
 58.11  shall, at the direction of the administrator of the program, 
 58.12  install necessary outside wiring without charge to the household.
 58.13     Subd. 6.  [OWNERSHIP.] Communication devices purchased 
 58.14  pursuant to subdivision 3 become the property of the state of 
 58.15  Minnesota. 
 58.16     Subd. 7.  [STANDARDS.] The communication devices 
 58.17  distributed under this section must comply with the electronic 
 58.18  industries association standards and approved by the Federal 
 58.19  Communications Commission.  The commissioner of human services 
 58.20  shall provide each eligible person a choice of several models of 
 58.21  the devices, the retail value of which may not exceed $600 for a 
 58.22  communication device for the deaf, and a retail value of $7,000 
 58.23  for a braille phone device, or an amount authorized by the 
 58.24  department of human services for a telephone device for the deaf 
 58.25  with auxiliary equipment.  
 58.26     Sec. 11.  [237A.50] [TELECOMMUNICATION RELAY SERVICE.] 
 58.27     The department shall contract with a qualified 
 58.28  telecommunications relay service vendor that serves 
 58.29  communication-impaired persons for operation and maintenance of 
 58.30  the telecommunication relay system.  The operator of the system 
 58.31  shall keep all messages confidential, shall train personnel in 
 58.32  the unique needs of communication-impaired people, and shall 
 58.33  inform communication-impaired persons and the public of the 
 58.34  availability and use of the system.  The operator shall not 
 58.35  relay a message unless it originates or terminates through a 
 58.36  communication device for the deaf or speech synthesizer or a 
 59.1   Brailling device for use with a telephone.  
 59.2      Sec. 12.  [237A.51] [ADEQUATE SERVICE ENFORCEMENT.] 
 59.3      The services required to be provided under sections 237A.46 
 59.4   to 237A.51 may be enforced under section 237A.34 upon a 
 59.5   complaint of at least two communication-impaired persons within 
 59.6   the service area of any one telecommunications service 
 59.7   provider.  However, if only one person within the service area 
 59.8   of a company is receiving service under sections 237A.46 to 
 59.9   237A.51, the commission may proceed upon a complaint from that 
 59.10  person.  
 59.11     Sec. 13.  [237A.52] [TELECOMMUNICATIONS ASSISTANCE 
 59.12  PROGRAM.] 
 59.13     Subdivision 1.  [HOUSEHOLD ELIGIBILITY FOR CREDITS.] (a) 
 59.14  The telecommunications assistance program must provide 
 59.15  telecommunications assistance credit for a residential household 
 59.16  in Minnesota that meets each of the criteria listed in 
 59.17  paragraphs (b) to (d). 
 59.18     (b) A member of the household subscribes to local service.  
 59.19     (c) The income of the household is 150 percent or less of 
 59.20  federal poverty guidelines. 
 59.21     (d) A member of the household has been certified as 
 59.22  eligible for telecommunications assistance plan credits under 
 59.23  this section.  
 59.24     Subd. 2.  [NATURE AND EXTENT OF CREDITS.] The 
 59.25  telecommunications assistance program may provide for 
 59.26  telecommunications assistance credits to eligible households in 
 59.27  the amount of $3.50 or 50 percent of the total amount available 
 59.28  to eligible households under the federal lifeline program, 
 59.29  whichever amount is lower.  If the amount in the universal 
 59.30  service fund telecommunications assistance program account is 
 59.31  inadequate to fund the level of telecommunications assistance 
 59.32  program credits set forth under this subdivision, the commission 
 59.33  shall order the credits reduced to a level that can be 
 59.34  adequately funded by the universal service fund 
 59.35  telecommunications assistance program account.  
 59.36     Subd. 3.  [APPLICATION FORM REQUIREMENTS.] The department 
 60.1   of human services shall develop an application form that must be 
 60.2   completed by the subscriber for the purpose of certifying 
 60.3   eligibility for telecommunications assistance program credits to 
 60.4   the department of human services.  The application must contain 
 60.5   the applicant's social security number.  Applicants who refuse 
 60.6   to provide a social security number must be denied 
 60.7   telecommunications assistance program credits.  The application 
 60.8   form must include provisions for the applicant to show the name 
 60.9   of the applicant's local service provider.  Applicants must also 
 60.10  provide proof of income level.  The application must state that 
 60.11  failure to submit proof of income level with the application 
 60.12  will result in the applicant being found ineligible.  
 60.13     Subd. 4.  [NOTICE TO SUBSCRIBER.] Each local service 
 60.14  provider shall annually mail a notice of the availability of the 
 60.15  telecommunications assistance program to each residential 
 60.16  subscriber in a regular billing and shall mail the application 
 60.17  form to customers when requested.  The notice must state the 
 60.18  following: 
 60.19     "YOU MAY BE ELIGIBLE FOR CREDITS TOWARDS YOUR LOCAL 
 60.20  TELEPHONE BILL IF YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS.  FOR 
 60.21  MORE INFORMATION OR AN APPLICATION FORM PLEASE CONTACT 
 60.22  ............................"  
 60.23     Subd. 5.  [ANNUAL ELIGIBILITY DETERMINATION.] The 
 60.24  department of human services shall determine the eligibility for 
 60.25  telecommunications assistance program credits at least annually 
 60.26  according to the criteria contained in subdivision 1.  
 60.27     Subd. 6.  [SUBMITTING APPLICATION.] An application may be 
 60.28  made by the subscriber, the subscriber's spouse, or a person 
 60.29  authorized by the subscriber to act on the subscriber's behalf. 
 60.30  On completing the application certifying that the statutory 
 60.31  criteria for eligibility are satisfied, the applicant shall 
 60.32  return the application to an office of the department of human 
 60.33  services specially designated to process telecommunications 
 60.34  assistance program applications.  
 60.35     Subd. 7.  [INELIGIBILITY DETERMINATION; DEADLINE, 
 60.36  PROCEDURE.] (a) On receiving a completed application from an 
 61.1   applicant, the department of human services shall determine the 
 61.2   applicant's eligibility or ineligibility within 120 days.  If 
 61.3   the department fails to do so, it shall within three working 
 61.4   days provide written notice to the applicant's local service 
 61.5   provider that the provider shall provide telecommunications 
 61.6   assistance plan credits against monthly charges in the earliest 
 61.7   possible month following receipt of the written notice.  The 
 61.8   applicant must receive telecommunications assistance program 
 61.9   credits until the earliest possible month following the 
 61.10  provider's receipt of notice from the department that the 
 61.11  applicant is ineligible.  
 61.12     (b) If the department of human services determines that an 
 61.13  applicant is not eligible to receive telecommunications 
 61.14  assistance program credits, it shall notify the applicant within 
 61.15  ten working days of that determination.  
 61.16     Subd. 8.  [NOTICE OF ELIGIBILITY; TAP CREDITS 
 61.17  IMPLEMENTED.] (a) Within 30 working days of determining that an 
 61.18  applicant is eligible to receive telecommunications assistance 
 61.19  program credits, the department of human services shall provide 
 61.20  written notification to the local service provider that serves 
 61.21  the applicant.  The notice must include the applicant's name, 
 61.22  address, and telephone number. 
 61.23     (b) Each provider shall provide telecommunications 
 61.24  assistance program credits against monthly charges in the 
 61.25  earliest possible month following receipt of notice from the 
 61.26  department of human services. 
 61.27     (c) The local service provider shall notify the subscriber 
 61.28  of the approval for the telecommunications assistance program 
 61.29  credit.  
 61.30     Subd. 9.  [ONGOING ELIGIBILITY REQUIREMENTS.] By December 
 61.31  31 of each year, the department of human services shall 
 61.32  redetermine eligibility of each person receiving 
 61.33  telecommunications assistance program credits, as required in 
 61.34  subdivision 6.  The department of human services shall submit an 
 61.35  annual report to the legislature by January 15 of each year 
 61.36  showing that the department has determined the eligibility for 
 62.1   telecommunications assistance program credits of each person 
 62.2   receiving the credits or explaining why the determination has 
 62.3   not been made and showing how and when the determination will be 
 62.4   completed.  
 62.5      Subd. 10.  [NOTICE OF NONRENEWAL.] On determining that a 
 62.6   current recipient of telecommunications assistance program 
 62.7   credits is not eligible to receive the credits, the department 
 62.8   of human services shall notify, in writing, the recipient within 
 62.9   ten working days and the local service provider serving the 
 62.10  recipient within 20 working days of the determination.  The 
 62.11  notice must include the recipient's name, address, and telephone 
 62.12  number.  
 62.13     Subd. 11.  [TAP CREDITS DISCONTINUED.] Each local service 
 62.14  provider shall remove telecommunications assistance program 
 62.15  credits against monthly charges in the earliest possible month 
 62.16  following receipt of notice from the department of human 
 62.17  services.  
 62.18     Subd. 12.  [NOTICE OF DISCONNECTION.] Each local service 
 62.19  provider that disconnects a subscriber receiving the 
 62.20  telecommunications assistance program credit shall report the 
 62.21  disconnection to the department of human services.  The reports 
 62.22  must be submitted monthly, identifying the subscribers 
 62.23  disconnected.  Local service providers that do not disconnect a 
 62.24  subscriber receiving the telecommunications assistance program 
 62.25  credit are not required to report.  
 62.26     Subd. 13.  [COORDINATION, ADMINISTRATION, DUTIES.] (a) The 
 62.27  department of human services and the commissioner of commerce 
 62.28  shall serve as the coordinators of the telecommunications 
 62.29  assistance program and be reimbursed for its administrative 
 62.30  expenses from the universal service fund telecommunications 
 62.31  assistance program account. 
 62.32     (b) The coordinators shall require each telecommunications 
 62.33  service provider to account to the commissioner of commerce on a 
 62.34  periodic basis for credits extended by the provider under the 
 62.35  telecommunications assistance program. 
 62.36     (c) The department of commerce shall remit to each local 
 63.1   service provider from the universal service fund 
 63.2   telecommunications assistance program account the amount 
 63.3   necessary to compensate the provider for expenses and 
 63.4   telecommunications assistance program credits.  
 63.5      Subd. 14.  [RECORD KEEPING AND REPORTING.] Each local 
 63.6   service provider shall maintain adequate records of expenses and 
 63.7   credits related to the telecommunications assistance program and 
 63.8   shall, as part of its annual report or separately, provide the 
 63.9   department of commerce, the commission, and the department of 
 63.10  human services with a financial report for the 
 63.11  telecommunications assistance program for the previous year. 
 63.12     Sec. 14.  [237A.54] [TELECOMMUNICATIONS ASSISTANCE PROGRAM; 
 63.13  ACCOUNT; APPROPRIATION.] 
 63.14     Subdivision 1.  [DEDICATED APPROPRIATION.] Three and 
 63.15  one-half percent of the proceeds of the excise tax collected 
 63.16  under section 237A.42 must be transferred to the 
 63.17  telecommunications assistance program account from the universal 
 63.18  service fund and is annually appropriated to the department of 
 63.19  commerce for the purposes of this section and section 237A.52. 
 63.20     Subd. 2.  [EXPENDITURES.] Money in the account may be used 
 63.21  for: 
 63.22     (1) reimbursement to local service providers for credits 
 63.23  allowed in section 237A.52, subdivision 2; and 
 63.24     (2) payment of the administrative expenses of the 
 63.25  department of human services to implement section 237A.52, not 
 63.26  to exceed $580,000 for expenses incurred one year after the 
 63.27  effective date and $530,000 per year thereafter.  
 63.28     Sec. 15.  [237A.55] [ADVANCED SERVICES LOAN PROGRAM; 
 63.29  ACCOUNT; GRANTS AND APPROPRIATIONS; RULES.] 
 63.30     Subdivision 1.  [ADVANCED SERVICES LOAN BOARD.] (a) An 
 63.31  advanced services loan board is created, consisting of two 
 63.32  public members appointed by the governor and the commissioner of 
 63.33  commerce, or the commissioner's delegate.  The loan board shall 
 63.34  advise the commissioner on the implementation of this section 
 63.35  and approve loan applications. 
 63.36     (b) A majority of the loan board, excluding vacancies, 
 64.1   constitutes a quorum to conduct its business, to exercise its 
 64.2   powers, and for all other purposes.  The board may conduct its 
 64.3   business by any technological means available, including 
 64.4   teleconference calls or interactive video, that allows for an 
 64.5   interaction between members.  If a meeting is conducted under 
 64.6   this paragraph, a specific location must be available for the 
 64.7   public to attend the meeting and at least one member must be 
 64.8   present at that location. 
 64.9      (c) Board members are not liable for any debt or obligation 
 64.10  of the authority. 
 64.11     Subd. 2.  [ACCOUNT CREATED; APPROPRIATION.] (a) The 
 64.12  advanced services revolving loan account is created in the 
 64.13  Minnesota universal service fund.  All principal and interest 
 64.14  payments received from borrowers from the advanced services 
 64.15  revolving loan account must be deposited in the Minnesota 
 64.16  universal service fund advanced services revolving loan 
 64.17  account.  $100,000,000 must be transferred in fiscal year 2004 
 64.18  from the Minnesota state universal service fund to the advanced 
 64.19  services revolving loan account as cash flow permits to 
 64.20  implement and administer this section. 
 64.21     (b) Money in the account is annually appropriated to the 
 64.22  department of commerce for the purposes of implementing this 
 64.23  section.  Money appropriated to the department may be used for: 
 64.24     (1) operating expenses of the board, including a nominal 
 64.25  stipend for loan board members' service, overhead, expenses, 
 64.26  processing of loan applications, indirect costs, and other 
 64.27  reasonable expenses not to exceed $100,000 annually; 
 64.28     (2) loans made to telecommunications service providers for 
 64.29  the purpose of deploying advanced telecommunications services; 
 64.30  and 
 64.31     (3) advanced service catalyst grants issued under this 
 64.32  section. 
 64.33     (c) The commissioner may annually lend up to 80 percent of 
 64.34  projected account resources. 
 64.35     (d) Beginning in fiscal year 2005, up to 20 percent of the 
 64.36  amount of the loan fund balance at the end of the previous 
 65.1   fiscal year is appropriated to the department of trade and 
 65.2   economic development for the purposes of issuing catalyst grants 
 65.3   targeted at the deployment of advanced services. 
 65.4      Subd. 3.  [LOAN APPLICATIONS.] (a) A telecommunications 
 65.5   service provider or operator of a private shared 
 65.6   telecommunications service may apply for a revolving loan for 
 65.7   the purpose of deploying advanced telecommunications services in 
 65.8   Minnesota. 
 65.9      (b) The commissioner shall develop a standard loan 
 65.10  application form to which all loan applicants shall adhere, 
 65.11  designed to inform the department about the qualifications of 
 65.12  loan applicants based on the criteria set forth in subdivision 4.
 65.13     Subd. 4.  [LOAN QUALIFICATION CRITERIA.] In determining 
 65.14  whether loans should be made to an applicant, the department 
 65.15  shall apply the following criteria: 
 65.16     (1) a demonstrated need in the proposed service area for 
 65.17  the service which the applicant proposes to provide using the 
 65.18  loan proceeds; 
 65.19     (2) the financial need of the applicant; 
 65.20     (3) the risk of default on the loan; and 
 65.21     (4) whether the applicant is affiliated with another 
 65.22  telecommunications service provider that has already received a 
 65.23  loan from the Minnesota universal service fund. 
 65.24     Subd. 5.  [TERMS AND CONDITIONS OF LOANS; RULES.] (a) The 
 65.25  department of commerce shall develop a standard lending 
 65.26  agreement.  Loan agreements must provide for the following 
 65.27  minimum standard terms and conditions: 
 65.28     (1) the department may loan money at interest rates from 
 65.29  zero percent to a maximum of the prime rate at the time a loan 
 65.30  is made; 
 65.31     (2) the state may take a security interest in the 
 65.32  facilities that are to be purchased with the loan proceeds; and 
 65.33     (3) loans must be binding on all successors and assigns of 
 65.34  the borrower. 
 65.35     (b) The commissioner may prescribe rules for the advanced 
 65.36  services loan program as the commissioner deems necessary. 
 66.1      Subd. 6.  [CATALYST GRANTS.] Beginning in fiscal year 2004, 
 66.2   the department of trade and economic development shall implement 
 66.3   a grant program for the purpose of providing catalyst grants to 
 66.4   local governments and tribal communities for deployment of 
 66.5   advanced services.  The catalyst grants must be targeted toward 
 66.6   providing access to advanced telecommunications services in 
 66.7   geographic areas or to classifications of consumers not likely 
 66.8   to be served by existing technology.  The department shall issue 
 66.9   rules and a standard proposal form for implementing this 
 66.10  program.  Applicants for catalyst grants must provide matching 
 66.11  funds of at least 50 percent of the amount sought from the 
 66.12  catalyst grant.  
 66.13     Sec. 16.  [COMMISSION REPORT.] 
 66.14     The public utilities commission shall report by January 15, 
 66.15  2005, to the committees of the legislature having primary 
 66.16  jurisdiction over telecommunications a proposal for how to 
 66.17  incorporate cost changes caused by technology changes into the 
 66.18  universal service funding mechanism for high-cost service areas. 
 66.19                             ARTICLE 6 
 66.20                            RIGHT-OF-WAY 
 66.21     Section 1.  [237A.62] [PUBLIC RIGHT-OF-WAY; DEFINITIONS.] 
 66.22     Subdivision 1.  [APPLICABILITY.] The terms used in this 
 66.23  section and section 237A.63 have the meanings given them in this 
 66.24  section.  
 66.25     Subd. 2.  [EXCAVATE.] "Excavate" means to dig into or in 
 66.26  any way remove, physically disturb, or penetrate a part of a 
 66.27  public right-of-way.  
 66.28     Subd. 3.  [LOCAL GOVERNMENT UNIT.] "Local government unit" 
 66.29  means a county, home rule charter or statutory city, or town.  
 66.30     Subd. 4.  [MANAGE THE PUBLIC RIGHT-OF-WAY.] "Manage the 
 66.31  public right-of-way" means the authority of a local government 
 66.32  unit to do any or all of the following: 
 66.33     (1) require registration; 
 66.34     (2) require construction performance bonds and insurance 
 66.35  coverage; 
 66.36     (3) establish installation and construction standards; 
 67.1      (4) establish and define location and relocation 
 67.2   requirements for equipment and facilities; 
 67.3      (5) establish coordination and timing requirements; 
 67.4      (6) require telecommunications right-of-way users to 
 67.5   submit, for right-of-way projects commenced after May 10, 1997, 
 67.6   whether initiated by a local government unit or any 
 67.7   telecommunications right-of-way user, project data reasonably 
 67.8   necessary to allow the local government unit to develop a 
 67.9   right-of-way mapping system, such as a geographical information 
 67.10  mapping system; 
 67.11     (7) require telecommunication right-of-way users to submit, 
 67.12  upon request of a local government unit, existing data on the 
 67.13  location of the user's facilities occupying the public 
 67.14  right-of-way within the local government unit, which may be 
 67.15  submitted in the form maintained by the user and in a reasonable 
 67.16  time after receipt of the request based on the amount of data 
 67.17  requested; 
 67.18     (8) establish right-of-way permitting requirements for 
 67.19  street excavation and obstruction; 
 67.20     (9) establish removal requirements for abandoned equipment 
 67.21  or facilities, if required in conjunction with other 
 67.22  right-of-way repair, excavation, or construction; and 
 67.23     (10) impose reasonable penalties for unreasonable delays in 
 67.24  construction.  
 67.25     Subd. 5.  [MANAGEMENT COSTS OR RIGHTS-OF-WAY MANAGEMENT 
 67.26  COSTS.] "Management costs" or "rights-of-way management costs" 
 67.27  means the actual costs a local government unit incurs in 
 67.28  managing its public rights-of-way, and includes such costs, if 
 67.29  incurred, as those associated with registering applicants; 
 67.30  issuing, processing, and verifying right-of-way permit 
 67.31  applications; inspecting job sites and restoration projects; 
 67.32  maintaining, supporting, protecting, or moving user equipment 
 67.33  during public right-of-way work; determining the adequacy of 
 67.34  right-of-way restoration; restoring work inadequately performed 
 67.35  after providing notice and the opportunity to correct the work; 
 67.36  and revoking right-of-way permits.  Management costs do not 
 68.1   include payment by a telecommunications right-of-way user for 
 68.2   the use of the public right-of-way, the fees and cost of 
 68.3   litigation relating to the interpretation of this section or 
 68.4   section 237A.63 or any ordinance enacted under those sections, 
 68.5   or the local unit of government's fees and costs related to 
 68.6   appeals taken pursuant to section 237A.63, subdivision 5.  
 68.7      Subd. 6.  [OBSTRUCT.] "Obstruct" means to place a tangible 
 68.8   object in a public right-of-way so as to hinder free and open 
 68.9   passage over that or any part of the right-of-way.  
 68.10     Subd. 7.  [PUBLIC RIGHT-OF-WAY.] (a) "Public right-of-way" 
 68.11  means the area on, below, or above a public roadway, highway, 
 68.12  street, cartway, bicycle lane, and public sidewalk in which the 
 68.13  local government unit has an interest, including other dedicated 
 68.14  rights-of-way for travel purposes and utility easements of local 
 68.15  government units. 
 68.16     (b) A public right-of-way does not include the airwaves 
 68.17  above a public right-of-way with regard to cellular or other 
 68.18  nonwire telecommunications or broadcast service.  
 68.19     Subd. 8.  [RIGHT-OF-WAY PERMIT.] "Right-of-way permit" 
 68.20  means a permit to perform work in a public right-of-way, whether 
 68.21  to excavate or obstruct the right-of-way.  
 68.22     Subd. 9.  [TELECOMMUNICATIONS RIGHT-OF-WAY 
 68.23  USER.] "Telecommunications right-of-way user" means a person 
 68.24  owning or controlling a facility in the public right-of-way, or 
 68.25  seeking to own or control a facility in the public right-of-way, 
 68.26  that is used or is intended to be used for transporting 
 68.27  telecommunications or other voice or data information.  
 68.28  Telecommunications activities related to providing natural gas 
 68.29  or electric energy services whether provided by a public utility 
 68.30  as defined in section 216B.02, a municipality, a municipal gas 
 68.31  or power agency organized under chapter 453 or 453A, or a 
 68.32  cooperative electric association organized under chapter 308A, 
 68.33  are not telecommunications right-of-way users for the purposes 
 68.34  of this section and section 237A.63.  
 68.35     Sec. 2.  [237A.63] [USE AND REGULATION OF PUBLIC 
 68.36  RIGHT-OF-WAY.] 
 69.1      Subdivision 1.  [LEGISLATIVE FINDING.] (a) The legislature 
 69.2   finds and establishes the principle that it is in the state's 
 69.3   interest that the use and regulation of public rights-of-way be 
 69.4   carried on in a fair, efficient, competitively neutral, and 
 69.5   substantially uniform manner, while recognizing this regulation 
 69.6   must reflect the distinct engineering, construction, operation, 
 69.7   maintenance, and public and worker safety requirements and 
 69.8   standards applicable to various users of public rights-of-way.  
 69.9      (b) Because of the potential for installation by 
 69.10  telecommunications service providers of multiple and competing 
 69.11  facilities within the public rights-of-way, the legislature 
 69.12  finds it is necessary to enact this section and section 237A.64 
 69.13  to specifically authorize local government units to regulate the 
 69.14  use of public rights-of-way by telecommunications right-of-way 
 69.15  users. 
 69.16     Subd. 2.  [AUTHORITIES; GENERALLY.] (a) Subject to this 
 69.17  section, a telecommunications right-of-way user authorized to do 
 69.18  business under the laws of this state or by license of the 
 69.19  Federal Communications Commission may construct, maintain, and 
 69.20  operate conduit, cable, switches, and related appurtenances and 
 69.21  facilities along, across, upon, above, and under any public 
 69.22  right-of-way. 
 69.23     (b) Subject to this section, a local government unit has 
 69.24  the authority to manage its public rights-of-way and to recover 
 69.25  its rights-of-way management costs.  The authority defined in 
 69.26  this section may be exercised at the option of the local 
 69.27  government unit.  The exercise of this authority is not mandated 
 69.28  under this section.  A local government unit may, by ordinance, 
 69.29  require a right-of-way user to obtain a permit, to register, and 
 69.30  to submit plans as described in paragraphs (c) through (f). 
 69.31     (c) A local government unit may require a 
 69.32  telecommunications right-of-way user seeking to excavate or 
 69.33  obstruct a public right-of-way for the purpose of providing 
 69.34  telecommunications services to obtain a right-of-way permit to 
 69.35  do so and to impose permit conditions consistent with the local 
 69.36  government unit's management of the right-of-way. 
 70.1      (d) A local unit of government may require a 
 70.2   telecommunications right-of-way user using, occupying, or 
 70.3   seeking to use or occupy a public right-of-way for the purpose 
 70.4   of providing telecommunications services to register with the 
 70.5   local government unit by providing the local government unit 
 70.6   with the following information: 
 70.7      (1) the applicant's name, gopher state one-call 
 70.8   registration number under section 216D.03, address, and 
 70.9   telephone and facsimile numbers; 
 70.10     (2) the name, address, and telephone and facsimile numbers 
 70.11  of the applicant's local representative; 
 70.12     (3) proof of adequate insurance; and 
 70.13     (4) other information deemed reasonably necessary by the 
 70.14  local government unit for the efficient administration of the 
 70.15  public right-of-way. 
 70.16     (e) The local government unit may require a 
 70.17  telecommunications right-of-way user to submit to the local 
 70.18  government unit plans for construction and major maintenance 
 70.19  that provide reasonable notice to the local government unit of 
 70.20  any project that the telecommunications right-of-way user 
 70.21  expects to undertake that may require excavation and obstruction 
 70.22  of public rights-of-way. 
 70.23     (f) A local government unit may also require a 
 70.24  telecommunications right-of-way user that is registered with the 
 70.25  local government unit pursuant to paragraph (d) to periodically 
 70.26  update the information in its registration application. 
 70.27     Subd. 3.  [RESTORATION.] (a) A telecommunications 
 70.28  right-of-way user, after an excavation of a public right-of-way, 
 70.29  shall provide for restoration of the right-of-way and 
 70.30  surrounding areas, including the pavement and its foundation, in 
 70.31  the same condition that existed before the excavation.  Local 
 70.32  government units that choose to perform their own surface 
 70.33  restoration required as a result of the excavation may require 
 70.34  telecommunications right-of-way users to reimburse the 
 70.35  reasonable costs of that surface restoration.  Restoration of 
 70.36  the public right-of-way must be completed within the dates 
 71.1   specified in the right-of-way permit, unless the permittee 
 71.2   obtains a waiver or a new or amended right-of-way permit. 
 71.3      (b) If a telecommunications right-of-way user elects not to 
 71.4   restore the public right-of-way, a local government unit may 
 71.5   impose a degradation fee in lieu of restoration to recover costs 
 71.6   associated with a decrease in the useful life of the public 
 71.7   right-of-way caused by the excavation of the right-of-way by a 
 71.8   telecommunications right-of-way user. 
 71.9      (c) A telecommunications right-of-way user that disturbs 
 71.10  uncultivated sod in the excavation or obstruction of a public 
 71.11  right-of-way shall plant grasses that are native to Minnesota 
 71.12  and, wherever practicable, that are of the local ecotype, as 
 71.13  part of the restoration required under this subdivision, unless 
 71.14  the owner of the real property over which the public 
 71.15  right-of-way traverses objects.  In restoring the right-of-way, 
 71.16  the telecommunications right-of-way user shall consult with the 
 71.17  department of natural resources regarding the species of native 
 71.18  grasses that conform to the requirements of this paragraph. 
 71.19     Subd. 4.  [PERMIT DENIAL OR REVOCATION.] (a) A local 
 71.20  government unit may deny any application for a right-of-way 
 71.21  permit if the telecommunications right-of-way user does not 
 71.22  comply with a provision of this section. 
 71.23     (b) A local government unit may deny an application for a 
 71.24  right-of-way permit if the local government unit determines that 
 71.25  the denial is necessary to protect the health, safety, and 
 71.26  welfare or when necessary to protect the public right-of-way and 
 71.27  its current use. 
 71.28     (c) A local government unit may revoke a right-of-way 
 71.29  permit granted to a telecommunications right-of-way user, with 
 71.30  or without fee refund, in the event of a substantial breach of 
 71.31  the terms and conditions of statute, ordinance, rule, or 
 71.32  regulation or any material condition of the permit.  A 
 71.33  substantial breach by a permittee includes, but is not limited 
 71.34  to, the following: 
 71.35     (1) a material violation of a provision of the right-of-way 
 71.36  permit; 
 72.1      (2) an evasion or attempt to evade any material provision 
 72.2   of the right-of-way permit, or the perpetration or attempt to 
 72.3   perpetrate any fraud or deceit upon the local government unit or 
 72.4   its citizens; 
 72.5      (3) a material misrepresentation of fact in the 
 72.6   right-of-way permit application; 
 72.7      (4) a failure to complete work in a timely manner, unless a 
 72.8   permit extension is obtained or unless the failure to complete 
 72.9   work is due to reasons beyond the permittee's control; and 
 72.10     (5) a failure to correct, in a timely manner, work that 
 72.11  does not conform to applicable standards, conditions, or codes, 
 72.12  upon inspection and notification by the local government unit of 
 72.13  the faulty condition. 
 72.14     (d) Subject to this subdivision, a local government unit 
 72.15  may not deny an application for a right-of-way permit for 
 72.16  failure to include a project in a plan submitted to the local 
 72.17  government unit under subdivision 2, paragraph (e), when the 
 72.18  telecommunications right-of-way user has used commercially 
 72.19  reasonable efforts to anticipate and plan for the project. 
 72.20     (e) In no event may a local government unit unreasonably 
 72.21  withhold approval of an application for a right-of-way permit, 
 72.22  or unreasonably revoke a permit. 
 72.23     Subd. 5.  [APPEAL.] (a) A telecommunications right-of-way 
 72.24  user that (1) has been denied registration, (2) has been denied 
 72.25  a right-of-way permit, (3) has had its right-of-way permit 
 72.26  revoked, or (4) believes that the fees imposed on the user by 
 72.27  the local government unit do not conform to the requirements of 
 72.28  subdivision 6, may have the denial, revocation, or fee 
 72.29  imposition reviewed, upon written request, by the governing body 
 72.30  of the local government unit.  The governing body of the local 
 72.31  government unit shall act on a timely written request at its 
 72.32  next regularly scheduled meeting.  A decision by the governing 
 72.33  body affirming the denial, revocation, or fee imposition must be 
 72.34  in writing and supported by written findings establishing the 
 72.35  reasonableness of the decision. 
 72.36     (b) Upon affirmation by the governing body of the denial, 
 73.1   revocation, or fee imposition, the telecommunications 
 73.2   right-of-way user is entitled to have the matter resolved by 
 73.3   binding arbitration.  Binding arbitration must be before an 
 73.4   arbitrator agreed to by both the local government unit and the 
 73.5   telecommunications right-of-way user.  If the parties cannot 
 73.6   agree on an arbitrator, the matter must be resolved by a 
 73.7   three-person arbitration panel made up of one arbitrator 
 73.8   selected by the local government unit, one arbitrator selected 
 73.9   by the telecommunications right-of-way user, and one person 
 73.10  selected by the other two arbitrators.  The costs and fees of a 
 73.11  single arbitrator must be borne equally by the local government 
 73.12  unit and the telecommunications right-of-way user.  If a third 
 73.13  arbitrator is selected, each party shall bear the expense of its 
 73.14  own arbitrator and shall jointly and equally bear with the other 
 73.15  party the expense of the third arbitrator and of the arbitration.
 73.16  Each party to the arbitration shall pay its own costs, 
 73.17  disbursements, and attorney fees. 
 73.18     Subd. 6.  [FEES.] (a) A local government unit may recover 
 73.19  its right-of-way management costs by imposing a fee for 
 73.20  registration, a fee for each right-of-way permit, or, when 
 73.21  appropriate, a fee applicable to a particular telecommunications 
 73.22  right-of-way user when that user causes the local government 
 73.23  unit to incur costs as a result of actions or inactions of that 
 73.24  user.  A local government unit may not recover from a 
 73.25  telecommunications right-of-way user costs caused by another 
 73.26  entity's activity in the right-of-way. 
 73.27     (b) Fees, or other right-of-way obligations, imposed by a 
 73.28  local government unit on telecommunications right-of-way users 
 73.29  under this section must be: 
 73.30     (1) based on the actual costs incurred by the local 
 73.31  government unit in managing the public right-of-way; 
 73.32     (2) based on an allocation among all users of the public 
 73.33  right-of-way, including the local government unit itself, which 
 73.34  shall reflect the proportionate costs imposed on the local 
 73.35  government unit by each of the various types of uses of the 
 73.36  public rights-of-way; 
 74.1      (3) imposed on a competitively neutral basis; and 
 74.2      (4) imposed in a manner so that aboveground uses of public 
 74.3   rights-of-way do not bear costs incurred by the local government 
 74.4   unit to regulate underground uses of public rights-of-way. 
 74.5      Subd. 7.  [RIGHTS AND RESPONSIBILITIES, GENERALLY; 
 74.6   FRANCHISES.] The rights, duties, and obligations regarding the 
 74.7   use of the public right-of-way imposed under this section must 
 74.8   be applied to all users of the public right-of-way, including 
 74.9   the local government unit while recognizing regulation must 
 74.10  reflect the distinct engineering, construction, operation, 
 74.11  maintenance, public and worker safety requirements, and 
 74.12  standards applicable to various users of the public 
 74.13  rights-of-way.  For users subject to the franchising authority 
 74.14  of a local government unit, to the extent those rights, duties, 
 74.15  and obligations are addressed in the terms of an applicable 
 74.16  franchise agreement, the terms of the franchise prevail over any 
 74.17  conflicting provision in an ordinance. 
 74.18     Subd. 8.  [LIMITATIONS ON LOCAL GOVERNMENT UNITS.] In 
 74.19  managing the public rights-of-way and in imposing fees under 
 74.20  this section, no local government unit may: 
 74.21     (1) unlawfully discriminate among telecommunications 
 74.22  right-of-way users; 
 74.23     (2) grant a preference to any telecommunications 
 74.24  right-of-way user; 
 74.25     (3) create or erect any unreasonable requirement for entry 
 74.26  to the public rights-of-way by telecommunications right-of-way 
 74.27  users; or 
 74.28     (4) require a telecommunications right-of-way user to 
 74.29  obtain a franchise or pay for the use of the right-of-way. 
 74.30     Subd. 9.  [PREVIOUSLY ISSUED PERMITS.] A telecommunications 
 74.31  right-of-way user need not apply for or obtain right-of-way 
 74.32  permits for facilities that are located in public rights-of-way 
 74.33  on May 10, 1997, for which the user has obtained the required 
 74.34  consent of the local government unit, or that are otherwise 
 74.35  lawfully occupying the public right-of-way.  However, the 
 74.36  telecommunications right-of-way user may be required to register 
 75.1   and to obtain a right-of-way permit for an excavation or 
 75.2   obstruction of existing facilities within the public 
 75.3   right-of-way after May 10, 1997. 
 75.4      Subd. 10.  [DATA CLASSIFICATION.] Data and documents 
 75.5   exchanged between a local government unit and a 
 75.6   telecommunications right-of-way user are subject to the terms of 
 75.7   chapter 13.  A local government unit not complying with this 
 75.8   subdivision is subject to the penalties set forth in section 
 75.9   13.08. 
 75.10     Subd. 11.  [IN-KIND SERVICES.] A local government unit may 
 75.11  not collect a fee imposed under this section through the 
 75.12  provision of in-kind services by a telecommunications 
 75.13  right-of-way user, nor may a local government unit require the 
 75.14  provision of in-kind services as a condition of consent to use 
 75.15  the local government unit's public right-of-way. 
 75.16     Subd. 12.  [UNIFORM STATEWIDE CONSTRUCTION STANDARDS.] (a) 
 75.17  To ensure the safe and convenient use of public rights-of-way in 
 75.18  the state, the commission shall maintain uniform statewide 
 75.19  construction standards where appropriate, providing competitive 
 75.20  neutrality among telecommunications right-of-way users and 
 75.21  permitting efficient use of technology.  The standards must 
 75.22  govern: 
 75.23     (1) the terms and conditions of right-of-way construction, 
 75.24  excavation, maintenance, and repair; and 
 75.25     (2) the terms and conditions under which telecommunications 
 75.26  facilities and equipment are placed in the public right-of-way. 
 75.27     (b) The public utilities commission is authorized to 
 75.28  review, upon complaint by an aggrieved telecommunications 
 75.29  right-of-way user, a decision or regulation by a local 
 75.30  government unit that is alleged to violate a statewide standard. 
 75.31     (c) A local unit of government may not adopt an ordinance 
 75.32  or other regulation that conflicts with a standard adopted by 
 75.33  the commission for the purposes described in paragraph (a).  
 75.34     Sec. 3.  [237A.64] [SCOPE.] 
 75.35     To the extent they regulate telecommunications right-of-way 
 75.36  users, sections 237A.62 and 237A.63 supersede sections 222.37, 
 76.1   300.03, and 300.04, and any ordinance, regulation, or rule to 
 76.2   the contrary.  
 76.3      Sec. 4.  [237A.65] [WIRE CROSSING OR PARALLELING UTILITY 
 76.4   LINE; RULES.] 
 76.5      (a) The department of commerce shall determine and adopt 
 76.6   reasonable rules covering the maintenance, operation, nature, 
 76.7   location, and construction where telecommunication, electric 
 76.8   light, power, or other electric wires of any kind, or any 
 76.9   natural gas pipelines, cross or approximately parallel the lines 
 76.10  of any railroad, interurban railway, or other similar public 
 76.11  service corporation.  To this end, the department shall adopt 
 76.12  general rules covering each class of construction, maintenance, 
 76.13  and operation of any electric wire or natural gas pipeline 
 76.14  crossing or paralleling the railroad, railway, or similar public 
 76.15  service corporation, under the various conditions existing.  The 
 76.16  department, upon the complaint of any person, railroad, 
 76.17  interurban railway, municipal utility, cooperative electric 
 76.18  association, or other public utility claiming to be injured or 
 76.19  subjected to hazard by crossing or paralleling lines constructed 
 76.20  or about to be constructed, shall, after a hearing, make an 
 76.21  order and prescribe terms and conditions for constructing, 
 76.22  maintaining, and operating the lines in question as may be just 
 76.23  and reasonable. 
 76.24     (b) The department may, upon request of a municipal 
 76.25  utility, electric cooperative association, or public utility, 
 76.26  determine the just and reasonable charge that a railroad, or 
 76.27  owner of an abandoned railroad right-of-way, can prescribe for a 
 76.28  new or existing crossing of a railroad right-of-way by an 
 76.29  electric or gas line, based on the diminution in value caused by 
 76.30  the crossing of the right-of-way by the electric or gas line.  
 76.31  This section does not eliminate the right of a public utility, 
 76.32  municipal utility, or electric cooperative association to have 
 76.33  any of these issues determined pursuant to an eminent domain 
 76.34  proceeding commenced under chapter 117.  Unless the railroad, or 
 76.35  owner of an abandoned railroad right-of-way, asserts in writing 
 76.36  that the proposed crossing is a serious threat to the safe 
 77.1   operations of the railroad or to the current use of the railroad 
 77.2   right-of-way, a crossing can be constructed following filing of 
 77.3   the requested action with the department, pending review of the 
 77.4   requested action by the department. 
 77.5      (c) The department shall assess the cost of reviewing the 
 77.6   requested action and determining a just and reasonable charge, 
 77.7   equally among the parties. 
 77.8      (d) The department shall enforce this section and, for that 
 77.9   purpose, may cause the removal or reconstruction of the 
 77.10  telephone, telegraph, electric light, power, or other electric 
 77.11  wires crossing or paralleling such other lines and not in 
 77.12  accordance with the orders and rules issued by the department.  
 77.13                             ARTICLE 7 
 77.14                               CABLE 
 77.15     Section 1.  [237A.71] [DEFINITIONS.] 
 77.16     Subdivision 1.  [SCOPE.] Notwithstanding section 237A.01, 
 77.17  subdivision 1, the terms used in sections 237A.71 to 237A.93 
 77.18  have the meanings given them in this section.  If a term used in 
 77.19  sections 237A.71 to 237A.93 is not defined in this section, it 
 77.20  has the meaning given it in section 237A.01.  
 77.21     Subd. 2.  [ACCESS.] "Access" means entrance onto the 
 77.22  premises of the property owner and an easement for purposes of 
 77.23  surveying, designing, installing, inspecting, maintaining, 
 77.24  operating, repairing, replacing, or removing equipment used in 
 77.25  the provision of telecommunications or cable services. 
 77.26     Subd. 3.  [BASIC CABLE SERVICE.] "Basic cable service" 
 77.27  means any cable service tier that includes the lawful 
 77.28  retransmission of local television broadcast signals and any 
 77.29  public, educational, and governmental access programming 
 77.30  required under a franchise to be carried on the basic tier.  
 77.31     Subd. 4.  [CABLE SERVICE PROVIDER.] "Cable service provider"
 77.32  means any person who provides cable services pursuant to a 
 77.33  franchise.  
 77.34     Subd. 5.  [CONDUIT SYSTEM.] Conduit system means a 
 77.35  reinforced passage or opening in, on, under, or through the 
 77.36  ground capable of containing communications facilities and 
 78.1   includes the following:  main conduit; underground dips and 
 78.2   short sections of conduit under roadways, driveways, parking 
 78.3   lots, and similar conduit installations; laterals to poles and 
 78.4   into buildings; ducts; and manholes. 
 78.5      Subd. 6.  [DWELLING UNIT.] "Dwelling unit" means a single 
 78.6   unit providing complete, independent, living facilities for one 
 78.7   or more persons, including permanent provisions for living, 
 78.8   sleeping, eating, cooking, and sanitation.  
 78.9      Subd. 7.  [FRANCHISE.] "Franchise" means the rights and 
 78.10  obligations extended by the commission, or a local government 
 78.11  unit prior to the effective date of this chapter, to a person to 
 78.12  provide cable service within a franchise area. 
 78.13     Subd. 8.  [FRANCHISE AREA.] "Franchise area" means the area 
 78.14  within the corporate boundaries of a local government unit as 
 78.15  now constituted or may in the future be constituted. 
 78.16     Subd. 9.  [FRANCHISE FEE.] "Franchise fee" means any fee or 
 78.17  assessment of any kind imposed by the state or a local 
 78.18  government unit on a cable service provider or subscriber, which 
 78.19  is not applicable to telecommunications service providers or 
 78.20  other utility service providers.  Franchise fee does not include 
 78.21  (1) any tax, fee, or assessment of general applicability, 
 78.22  including any tax, fee, or assessment imposed on both 
 78.23  telecommunications service providers, utilities, and cable 
 78.24  operators or their services but not including a tax, fee, or 
 78.25  assessment that is unduly discriminatory against cable operators 
 78.26  or subscribers, (2) capital costs that are required by a 
 78.27  franchise to be incurred by a cable service provider for public, 
 78.28  educational, and governmental access facilities, (3) 
 78.29  requirements or charges incidental to the award or enforcement 
 78.30  of a franchise, including payments for bonds, security funds, 
 78.31  letters of credit, insurance, indemnification, penalties, or 
 78.32  liquidated damages, or (4) any fee imposed under United States 
 78.33  Code, title 17.  
 78.34     Subd. 10.  [GROSS CABLE SERVICE REVENUE.] "Gross cable 
 78.35  service revenue" means any revenue derived directly or 
 78.36  indirectly by a cable service provider including, but not 
 79.1   limited to, basic cable service, cable programming service tier, 
 79.2   premium cable services, pay-per-view cable services, 
 79.3   installation and reconnection fees, franchise fees, leased 
 79.4   channel fees, converter rentals, and advertising revenues within 
 79.5   a franchise area.  The term does not include any revenue derived 
 79.6   from the delivery of telecommunication or information services, 
 79.7   or taxes on services furnished by cable service provider and 
 79.8   imposed directly upon any subscriber or user by federal, state, 
 79.9   or local law and collected by cable service provider on behalf 
 79.10  of that governmental unit. 
 79.11     Subd. 11.  [INSTITUTIONAL NETWORKS.] "Institutional 
 79.12  networks" are facilities owned by a cable service provider that 
 79.13  may be dedicated to local government units for 
 79.14  telecommunications pursuant to a franchise. 
 79.15     Subd. 12.  [LOCAL ORIGINATION.] "Local origination" refers 
 79.16  to channel capacity and programming designated for local 
 79.17  interest that is produced by local government units, cable 
 79.18  service providers, or their designees. 
 79.19     Subd. 13.  [MULTIPLE DWELLING COMPLEX.] "Multiple dwelling 
 79.20  complex" means a site, lot, field, or tract of land or water, 
 79.21  other than a common interest community or mobile home park, 
 79.22  whether occupied or under construction, containing more than 
 79.23  four dwelling units. 
 79.24     Subd. 14.  [PUBLIC, EDUCATIONAL, AND GOVERNMENT 
 79.25  ACCESS.] "Public, educational, and government access" refers to 
 79.26  the channel capacity designated for noncommercial public, 
 79.27  educational, or governmental use and facilities and the 
 79.28  equipment necessary for the use of that channel capacity. 
 79.29     Subd. 15.  [PUBLIC UTILITY COMPANY POLES.] "Public utility 
 79.30  company poles" means poles owned by the public utility and poles 
 79.31  owned by others on which the public utility has the right to 
 79.32  permit others to attach in the communications space on the pole. 
 79.33     Subd. 16.  [STANDARD INSTALLATION.] "Standard installation" 
 79.34  means any residential installation that can be completed using a 
 79.35  drop of 150 feet or less. 
 79.36     Subd. 17.  [SUBSCRIBER.] "Subscriber" means any person 
 80.1   lawfully subscribing to a cable service provided by the cable 
 80.2   service provider. 
 80.3      Sec. 2.  [237A.72] [STATE IS CABLE FRANCHISOR; TRANSITION.] 
 80.4      Subdivision 1.  [STATE AUTHORITY.] The state is the 
 80.5   franchisor for all cable franchises granted in the state and has 
 80.6   the exclusive authority to approve the grant of a cable 
 80.7   franchise and the terms and conditions of cable franchises.  All 
 80.8   local government units or consortiums of local government units 
 80.9   located within an area franchised by the commission are deemed 
 80.10  parties to such franchises and have the right to intervene in 
 80.11  any matter pertaining to the franchise before the commission. 
 80.12     Subd. 2.  [NEGOTIATING FRANCHISE AGREEMENTS.] The 
 80.13  department shall negotiate with existing franchisees to conform 
 80.14  their franchise agreements to the provisions of this section.  
 80.15  Notwithstanding section 237A.80, existing franchises that 
 80.16  include provisions relating to public, educational, and 
 80.17  governmental access, local origination, or institutional 
 80.18  networks must not be changed.  If the negotiations are not 
 80.19  successful, a franchise may continue according to its terms, for 
 80.20  the shortest period required under the franchise.  All cable 
 80.21  franchises entered into after January 1, 2004, must comply with 
 80.22  this section.  The department is responsible for negotiating and 
 80.23  agreeing to new cable franchises under this section.  If 
 80.24  agreement cannot be reached, the commission shall order 
 80.25  modifications to the terms and conditions of the franchise. 
 80.26     Sec. 3.  [237A.73] [AUTHORITY TO GRANT AND ENFORCE 
 80.27  FRANCHISES.] 
 80.28     Subdivision 1.  [COMMISSION FRANCHISING AUTHORITY.] (a) The 
 80.29  commission has the exclusive authority to grant nonexclusive 
 80.30  franchises to persons to provide cable service within one or 
 80.31  more franchise areas in Minnesota. 
 80.32     (b) It is unlawful for any person to provide cable service 
 80.33  in a franchise area without a franchise. 
 80.34     (c) A telephone company that has been certified as an open 
 80.35  video system operator by the Federal Communications Commission 
 80.36  and provides video services consistent with the certification 
 81.1   must, with respect to provisioning of those services in 
 81.2   Minnesota, comply with the terms of its application for an open 
 81.3   video system certificate.  The commission may not impose area of 
 81.4   service requirements on the open video system operator and an 
 81.5   open video system operator need not comply with area of service 
 81.6   requirements. 
 81.7      (d) The commission shall not grant a franchise to any 
 81.8   person on terms that, when the obligations and benefits of the 
 81.9   franchises as a whole are compared, are more favorable or less 
 81.10  burdensome than a franchise previously granted to a person 
 81.11  within that franchise area.  Cash or in-kind franchise 
 81.12  obligations of cable service providers for public, educational, 
 81.13  and government access equipment, facilities, capital grants, 
 81.14  local origination, and institutional networks must be shared by 
 81.15  subsequent franchises as determined by the commission.  
 81.16  Subsequent franchises are not required to agree to the exact 
 81.17  terms and conditions of existing franchises. 
 81.18     (e) The commission shall not grant a franchise for a term 
 81.19  longer than 15 years. 
 81.20     Subd. 2.  [PREVIOUS FRANCHISES.] Upon acceptance by a cable 
 81.21  service provider of a franchise granted by the commission, the 
 81.22  new franchise supersedes and replaces all previous ordinances, 
 81.23  amendments, or agreements granting a franchise to a cable 
 81.24  service provider or any predecessor cable operator. 
 81.25     Subd. 3.  [FRANCHISE AREA.] A cable service provider shall 
 81.26  provide cable service to the entire franchise area designated by 
 81.27  the commission in a franchise. 
 81.28     Subd. 4.  [REQUIRED CONTENTS OF FRANCHISE AGREEMENTS.] The 
 81.29  following requirement applies to all classes of cable 
 81.30  communications systems: 
 81.31     (1) a provision stating that no signals of a cable 
 81.32  communications channel may be transmitted from a subscriber 
 81.33  terminal for purposes of monitoring individual viewing patterns 
 81.34  or practices without the express written permission of the 
 81.35  subscriber.  The request for permission must be contained in a 
 81.36  separate document with a prominent statement that the subscriber 
 82.1   is authorizing the permission in full knowledge of its 
 82.2   provisions.  The written permission must be for a limited period 
 82.3   of time not to exceed one year, which is renewable at the option 
 82.4   of the subscriber.  No penalty may be invoked for a subscriber's 
 82.5   failure to provide or renew the authorization.  The 
 82.6   authorization is revocable at any time by the subscriber without 
 82.7   penalty of any kind.  The permission must be required for each 
 82.8   type or classification of class IV cable communications activity 
 82.9   planned for the purpose; 
 82.10     (2) no signals of a cable communications channel may be 
 82.11  transmitted from a subscriber terminal for purposes of 
 82.12  monitoring individual viewing patterns or practices without the 
 82.13  express written permission of the subscriber.  The request for 
 82.14  permission must be contained in a separate document with a 
 82.15  prominent statement that the subscriber is authorizing the 
 82.16  permission in full knowledge of its provisions.  The written 
 82.17  permission must be for a limited period of time not to exceed 
 82.18  one year, which is renewable at the option of the subscriber.  
 82.19  No penalty may be invoked for a subscriber's failure to provide 
 82.20  or renew the authorization.  The authorization is revocable at 
 82.21  any time by the subscriber without penalty of any kind.  The 
 82.22  permission must be required for each type or classification of 
 82.23  cable communications activity planned for the purpose; and 
 82.24     (3) no information or data obtained by monitoring 
 82.25  transmission of a signal from a subscriber terminal, including, 
 82.26  but not limited to, lists of the names and addresses of the 
 82.27  subscribers or lists that identify the viewing habits of 
 82.28  subscribers, may be sold or otherwise made available to any 
 82.29  party other than to the company and its employees for internal 
 82.30  business use, or to the subscriber who is the subject of that 
 82.31  information, unless the company has received specific written 
 82.32  authorization from the subscriber to make the data available. 
 82.33     Subd. 5.  [ENFORCEMENT.] The commission has the 
 82.34  jurisdiction to enforce franchises and sections 237A.71 to 
 82.35  237A.94, but upon request may delegate voluntary dispute 
 82.36  resolution and consumer advocacy authority. 
 83.1      Sec. 4.  [237A.74] [RATE REGULATION.] 
 83.2      Subdivision 1.  [AUTHORITY.] The commission may regulate 
 83.3   rates for the provision of cable service and related equipment 
 83.4   to the extent allowed under federal or state law. 
 83.5      Subd. 2.  [RATES ON FILE.] A list of current subscriber 
 83.6   rates and charges must be on file with the department at all 
 83.7   times.  The department shall maintain the information in a form 
 83.8   accessible to local government users and subscribers, including 
 83.9   making it available over the Internet.  
 83.10     Sec. 5.  [237A.75] [CUSTOMER SERVICE OBLIGATIONS.] 
 83.11     A local government unit that has been delegated dispute 
 83.12  resolution or consumer advocacy authority may investigate 
 83.13  allegations of noncompliance with a franchise, this article, and 
 83.14  any rules applicable to cable service providers and adopted by 
 83.15  the commission.  If voluntary efforts to resolve the complaint 
 83.16  are unsuccessful, These allegations may be made the subject of a 
 83.17  formal complaint before the commission.  Any investigation is 
 83.18  limited to gathering facts relevant to the specific complaint 
 83.19  received by the local government unit.  
 83.20     A cable service provider shall notify the commission, the 
 83.21  department, and subscribers, in writing, of any changes in 
 83.22  rates, programming services, or channel positions 30 days before 
 83.23  the changes become effective.  
 83.24     Sec. 6.  [237A.76] [EMERGENCY ALERT.] 
 83.25     Cable service providers shall provide emergency alert 
 83.26  override capabilities for use in the event of an emergency or if 
 83.27  other vital public information must be communicated by federal, 
 83.28  state, or local governments.  A cable service provider shall 
 83.29  provide emergency alert override capabilities in a manner 
 83.30  consistent with the Federal Communications Commission's 
 83.31  emergency alert system (EAS) regulations and consistent with any 
 83.32  applicable state and regional EAS plans adopted in response to 
 83.33  those regulations.  
 83.34     Sec. 7.  [237A.79] [REGIONAL CHANNEL.] 
 83.35     Subdivision 1.  [DEFINITION.] For the purposes of this 
 83.36  section "regional channel entity" means an independent, 
 84.1   nonprofit corporation to govern the operation of the regional 
 84.2   channel. 
 84.3      Subd. 2.  [LEGISLATIVE PURPOSE.] The purpose of this 
 84.4   section is to facilitate the activation of a metropolitan area 
 84.5   interconnected regional channel, to be uniformly carried on VHF 
 84.6   channel 6 on cable communications systems operating in the 
 84.7   metropolitan area in order to provide a broad range of 
 84.8   informational, educational, and public service programs and 
 84.9   materials to metropolitan area cable subscribers. 
 84.10     Subd. 3.  [VHF CHANNEL 6.] Franchises for cable services 
 84.11  operating wholly or partially within the metropolitan area must 
 84.12  contain a provision designating the standard VHF channel 6 for 
 84.13  uniform regional channel usage.  The designated regional channel 
 84.14  may be combined with the government access channel until the 
 84.15  video programming usage of the government access channel expands 
 84.16  to such point as it is in use during 80 percent of the time 
 84.17  between 8:00 a.m. and 10:00 p.m. during any consecutive six-week 
 84.18  period.  Use of time on the regional channel must be made 
 84.19  available without charge. 
 84.20     Subd. 4.  [USE.] The regional channel will provide a broad 
 84.21  range of informational, educational, and public service programs 
 84.22  and materials to metropolitan area cable service subscribers. 
 84.23     Subd. 5.  [REGIONAL CHANNEL ENTITY; MEMBERS.] The 
 84.24  metropolitan council shall appoint the governing body of the 
 84.25  regional channel entity, which must consist of 15 members 
 84.26  appointed to staggered, three-year terms.  In the case of a 
 84.27  vacancy the council shall appoint a person to fill the vacancy 
 84.28  for the remainder of the unexpired term.  The metropolitan 
 84.29  council shall name three appointees from the recommendations 
 84.30  received from the association of metropolitan municipalities and 
 84.31  three from the recommendations received from the cable service 
 84.32  providers operating in the metropolitan area. 
 84.33     Subd. 6.  [REGIONAL CHANNEL OPERATOR.] The regional channel 
 84.34  entity may operate the regional channel or designate the 
 84.35  operator of the regional channel.  If the regional channel 
 84.36  entity designates the operator of the regional channel, the 
 85.1   designation must be for an initial period not exceeding three 
 85.2   years.  Before the expiration of the three-year period, the 
 85.3   regional channel entity shall review its designation and 
 85.4   consider renewal for a term not exceeding three years.  Nothing 
 85.5   in this section creates any right to renewal for the operator 
 85.6   designated by the regional channel entity.  
 85.7      Sec. 8.  [237A.80] [PUBLIC, EDUCATIONAL, AND GOVERNMENT 
 85.8   ACCESS.] 
 85.9      Subdivision 1.  [MINNESOTA PEG CHANNELS.] A cable service 
 85.10  provider shall make at least one public, educational, and 
 85.11  government (PEG) access channel available in its basic service 
 85.12  offering to subscribers.  Additional public, educational, and 
 85.13  government access channels may be required by the commission as 
 85.14  part of a franchise in certain communities based on a showing of 
 85.15  community need. 
 85.16     Subd. 2.  [VHF SPECTRUM.] Required access channels must be 
 85.17  transmitted on the VHF spectrum. 
 85.18     Subd. 3.  [LEASED ACCESS.] A cable service provider shall 
 85.19  offer leased commercial access programming to the public on 
 85.20  reasonable terms and conditions in accordance with federal law.  
 85.21     Subd. 4.  [REPORTS.] The department shall report to the 
 85.22  legislature once every two years on the status of public, 
 85.23  educational, and government access, and local origination 
 85.24  operations.  The department shall review the operations of 
 85.25  different access operations and report on the best practices, 
 85.26  areas in which improvements could be made, and efficiencies 
 85.27  achieved.  The department shall also assess the value that 
 85.28  consumers place on access operations taking into account the 
 85.29  cost of those operations to consumers. 
 85.30     Sec. 9.  [237A.81] [FRANCHISE FEE.] 
 85.31     Subdivision 1.  [FRANCHISE FEE PAID.] As requested by each 
 85.32  local government unit within the franchised area of a cable 
 85.33  service provider, the commission shall require a cable service 
 85.34  provider to pay each requesting local government unit within its 
 85.35  franchised area a franchise fee of up to five percent of its 
 85.36  gross cable service revenue derived from subscribers within the 
 86.1   jurisdictional boundaries of each requesting local government 
 86.2   unit.  The commission shall include franchise fee provisions in 
 86.3   the terms of any franchise granted.  Franchise fees must be paid 
 86.4   monthly, within 30 days of the end of each calendar month.  
 86.5      Subd. 2.  [OVERDUE PAYMENTS.] Cable service providers shall 
 86.6   pay interest on overdue franchise fee payments, and on payments 
 86.7   to correct underpayment of franchise fees, in addition to the 
 86.8   compensation due at an annual rate equal to the prime lending 
 86.9   rate plus 1-1/2 percent computed from the due date until the 
 86.10  date of payment.  
 86.11     Sec. 10.  [237A.82] [FRANCHISE REVOCATION.] 
 86.12     If the commission determines after a public hearing, that a 
 86.13  cable service provider is in default of any material provision 
 86.14  of a franchise, or has attempted to evade any of the material 
 86.15  provisions of a franchise, or has practiced fraud or deceit upon 
 86.16  a subscriber, the commission may revoke the franchise or order 
 86.17  any other relief it deems appropriate to remedy the violation.  
 86.18     Sec. 11.  [237A.83] [MERGERS AND ACQUISITIONS.] 
 86.19     Subdivision 1.  [PRIOR COMMISSION APPROVAL.] No person may 
 86.20  purchase, acquire, or assume control of (1) a franchise, (2) 
 86.21  facilities for the provision of cable service, (3) capital 
 86.22  stock, bonds, securities, or other obligations, or (4) the 
 86.23  rights, privileges, and immunities of any cable service provider 
 86.24  granted by the commission, without receiving the prior consent 
 86.25  of the commission. 
 86.26     Subd. 2.  [JOINT PETITION.] The transferor and transferee 
 86.27  of any property or other rights described in subdivision 1 shall 
 86.28  both join in the application filed with the commission for the 
 86.29  approval of the purchase, acquisition, or assumption of control. 
 86.30     Subd. 3.  [CUSTOMER NOTICE.] At least 120 days prior to 
 86.31  closing of any purchase, acquisition, or assumption of control 
 86.32  of the property, capital stock, bonds, securities, other 
 86.33  obligations, or the franchise rights, privileges, and immunities 
 86.34  of any cable service provider, the transferor must provide 
 86.35  notice to its affected customers and identify the name of the 
 86.36  proposed buyer.  The notice must be included as a separate 
 87.1   document from the customer's monthly bill, but may be delivered 
 87.2   to the customer under the same cover as a monthly bill.  
 87.3      Subd. 4.  [STANDARD.] The commission shall consent to a 
 87.4   transfer subject to a determination that the transferee has the 
 87.5   financial and operational qualifications to provide service in 
 87.6   accordance with this chapter. 
 87.7      Subd. 5.  [DEADLINE FOR DECISION; EXTENSION.] (a) Subject 
 87.8   to paragraph (b), the commission has 120 days to act upon any 
 87.9   petition for approval of a transfer. 
 87.10     (b) If a cable service provider fails to provide the 
 87.11  department or the attorney general with all information 
 87.12  necessary for it to conduct an adequate investigation as to 
 87.13  whether the proposed transfer should be approved or rejected, 
 87.14  the commission may extend the 120-day review period until all 
 87.15  information has been provided at the request of the department 
 87.16  or the attorney general.  If the commission fails to render a 
 87.17  final decision on the request within the 120-day time period, 
 87.18  the request is deemed granted.  
 87.19     Sec. 12.  [237A.84] [FRANCHISE RENEWAL.] 
 87.20     All franchise renewal proceedings must be conducted in 
 87.21  accordance with federal law.  
 87.22     Sec. 13.  [237A.85] [AMENDMENT OF FRANCHISE.] 
 87.23     Subject to section 237A.72, the commission may amend a 
 87.24  franchise upon the petition of the department, the attorney 
 87.25  general, or the cable service provider holding the franchise 
 87.26  upon a determination by the commission that the amendment will 
 87.27  be in the public interest or is required due to changes in 
 87.28  federal or state law.  
 87.29     Sec. 14.  [237A.86] [FRANCHISE CONTENTS REQUIRED OR 
 87.30  PERMITTED.] 
 87.31     Subdivision 1.  [REQUIRED PROVISIONS.] Every franchise 
 87.32  granted by the commission must contain provisions addressing the 
 87.33  following issues: 
 87.34     (1) a provision regarding any required specifications of a 
 87.35  cable system that are necessary to meet the cable service needs 
 87.36  of subscribers within a franchise area; 
 88.1      (2) a provision addressing the schedule for any cable 
 88.2   system upgrades or rebuilds required by the commission under a 
 88.3   franchise; 
 88.4      (3) a provision setting forth the number of additional 
 88.5   public, educational, and government access channels, facilities, 
 88.6   and financing arrangements for the channel capacity and 
 88.7   facilities; and 
 88.8      (4) provisions relating to the management of public 
 88.9   rights-of-way by local government units, if not already provided 
 88.10  under state or local law.  
 88.11     Subd. 2.  [OTHER FRANCHISE TERMS AND CONDITIONS PERMITTED.] 
 88.12     A franchise may contain additional terms and conditions as 
 88.13  the commission deems appropriate.  
 88.14     Sec. 15.  [237A.88] [ACCESS REQUIRED.] 
 88.15     Subdivision 1.  [PROVISION OF ACCESS.] No 
 88.16  telecommunications, cable, or other multichannel video 
 88.17  programming services provider, may enter into exclusive 
 88.18  agreements with a property owner or other person controlling 
 88.19  access to the property owner's multiple dwelling complex, or 
 88.20  commercial development.  
 88.21     Subd. 2.  [RESIDENT'S RIGHTS.] The intent of sections 
 88.22  237A.71 to 237A.93 is to give residents the freedom to choose 
 88.23  among competing multichannel video programming or 
 88.24  telecommunications service providers.  No provision of sections 
 88.25  237A.71 to 237A.93 may be interpreted to require residents to 
 88.26  subscribe to any services offered by any multichannel video 
 88.27  programming or telecommunications service provider.  
 88.28     Sec. 16.  [237A.89] [CONDITION FOR ACCESS.] 
 88.29     Subdivision 1.  [IN GENERAL.] An installation of facilities 
 88.30  for providing multichannel video programming or 
 88.31  telecommunications services under sections 237A.71 to 237A.93 
 88.32  must conform to reasonable conditions necessary to protect the 
 88.33  safety, functioning, and aesthetic appearance of the premises, 
 88.34  and the convenience and well-being of the property owner and 
 88.35  residents. 
 88.36     Subd. 2.  [OWNER APPROVAL.] A property owner may require 
 89.1   from a multichannel video programming or telecommunications 
 89.2   service provider before installation or modification of 
 89.3   facilities for providing the service, diagrams showing plans for 
 89.4   the placement and securing of the facilities.  A property owner 
 89.5   may approve or disapprove installation plans.  Approval of plans 
 89.6   must not be unreasonably withheld. 
 89.7      Subd. 3.  [RELOCATION.] A property owner may require a 
 89.8   multichannel video programming or telecommunications service 
 89.9   provider, after reasonable written notice, to promptly relocate 
 89.10  facilities on or within the premises of the property owner for 
 89.11  the purpose of rehabilitation, redecoration, or necessary 
 89.12  maintenance of the premises by the property owner. 
 89.13     Subd. 4.  [COMPENSATION FOR ACCESS.] A multichannel video 
 89.14  programming or telecommunications service provider shall 
 89.15  compensate the property owner for the diminution in fair market 
 89.16  value of the premises resulting directly from the installation 
 89.17  of the facilities.  
 89.18     Sec. 17.  [237A.90] [USE OF EXISTING UTILITY EASEMENT; 
 89.19  RESTRICTIONS.] 
 89.20     Subdivision 1.  [UTILITY EASEMENT DEFINED.] For purposes of 
 89.21  this section, "utility easement" includes all utility easements 
 89.22  or general purpose easements dedicated on a recorded plat to the 
 89.23  public or to the state or to any political subdivision of the 
 89.24  state; all deeded easements to the public or to the state or to 
 89.25  any political subdivision of the state that are for general or 
 89.26  utility purposes; all easements acquired by condemnation or 
 89.27  prescription by the state or any political subdivision of the 
 89.28  state that are for general or utility purposes; and all 
 89.29  easements in favor of any public service corporation for 
 89.30  telecommunications or electric transmission purposes. 
 89.31     Subd. 2.  [AUTHORITY TO USE EXISTING UTILITY EASEMENT.] The 
 89.32  state or any local government unit, individual, or entity, 
 89.33  however organized, that is licensed, franchised, or authorized 
 89.34  to establish and provide cable services may utilize any existing 
 89.35  utility easement in accordance with this section to install, 
 89.36  maintain, and remove equipment and facilities without the 
 90.1   payment of additional compensation to the owners or occupants of 
 90.2   the real estate subject to the easement, other than the owner of 
 90.3   the utility easement or its successors or assigns.  
 90.4      Subd. 3.  [RESTRICTIONS ON USE.] (a) As a condition of 
 90.5   using any utility easement, a cable services provider is subject 
 90.6   to any burdens, duties, or obligations specified in the easement 
 90.7   of the grantee of the easement. 
 90.8      (b) A cable services provider shall restore the real 
 90.9   estate, and any landscaping on or improvements to it, to the 
 90.10  condition they were in prior to entry within 30 days of 
 90.11  completing the installation of, and making changes to, the 
 90.12  facilities for providing cable services upon that real estate.  
 90.13  Restoration that cannot be completed during the winter months 
 90.14  must be accomplished as promptly as weather conditions permit. 
 90.15     Sec. 18.  [237A.91] [PERMIT TO ATTACH TO POLE OR CONDUIT 
 90.16  SYSTEM.] 
 90.17     Every pole, duct, and conduit agreement must contain a 
 90.18  provision that before attaching to the public utility company's 
 90.19  poles or occupying any part of the public utility's conduit 
 90.20  system, the cable service provider shall apply and receive a 
 90.21  permit for that purpose on a form provided by the public utility 
 90.22  company.  If the cable service provider accepts the permit, it 
 90.23  may attach its equipment to the poles covered by the permit or 
 90.24  occupy the conduit system of the public utility to the extent 
 90.25  authorized by the permit, subject to sections 237A.92 and 
 90.26  237A.93 and the terms of the agreement between the contracting 
 90.27  parties.  In granting or denying a permit, the public utility 
 90.28  has the right to determine whether a grant of a permit would 
 90.29  adversely affect its public services, duties, and obligations or 
 90.30  have an adverse effect on the economy, safety, and future needs 
 90.31  of the public utility.  
 90.32     Sec. 19.  [237A.92] [LIABILITY; INDEMNIFY PUBLIC UTILITY.] 
 90.33     Subdivision 1.  [PROVISION IN AGREEMENT.] Every pole, duct, 
 90.34  and conduit agreement must contain a provision that the cable 
 90.35  service provider shall defend, indemnify, protect, and save 
 90.36  harmless the public utility from and against any and all claims 
 91.1   and demands for damages to property and injury or death to 
 91.2   persons, including payments made under any worker's compensation 
 91.3   law or under any plan for employees' disability and death 
 91.4   benefits, which may arise out of or be caused by (1) the 
 91.5   erection, maintenance, presence, use, or removal of the cable 
 91.6   service provider's cable, equipment, and facilities, (2) the 
 91.7   proximity of the cables, equipment, and facilities of the 
 91.8   parties to the agreement, or (3) any act of the cable service 
 91.9   provider on or in the vicinity of the public utility company's 
 91.10  poles and conduit system, in the performance of the agreement.  
 91.11     Subd. 2.  [ADDITIONAL PROTECTION FROM CLAIMS AND 
 91.12  DEMANDS.] The cable service provider shall also indemnify, 
 91.13  protect, and save harmless the public utility from and against 
 91.14  any and all claims and demands: 
 91.15     (1) that arise directly or indirectly from the operation of 
 91.16  the cable service provider's facilities including taxes and 
 91.17  special charges by others; 
 91.18     (2) for damages or loss for infringement of copyright, for 
 91.19  libel and slander, for unauthorized use of television broadcast 
 91.20  programs, and for unauthorized use of other program material; 
 91.21  and 
 91.22     (3) for infringement of patents with respect to the 
 91.23  manufacture, use, and operation of the cable communications 
 91.24  equipment in combination with the public utility company's 
 91.25  poles, conduit system, or otherwise. 
 91.26     Subd. 3.  [LIABILITY FOR NEGLIGENCE.] Nothing contained in 
 91.27  this section relieves the public utility company from liability 
 91.28  for the negligence of the public utility company or anyone 
 91.29  acting under its direction and control.  
 91.30     Sec. 20.  [237A.93] [INSURANCE FOR PARTIES TO POLE 
 91.31  AGREEMENT.] 
 91.32     The cable service provider shall carry insurance to protect 
 91.33  the parties to a pole attachment agreement from and against any 
 91.34  and all claims, demands, actions, judgments, costs, expenses, 
 91.35  and liabilities that may arise or result, directly or 
 91.36  indirectly, from or by reason of the loss, injury, claim, or 
 92.1   damage.  The amount of the insurance must be agreed to by the 
 92.2   parties to this agreement.  Insurance required must remain in 
 92.3   effect for the entire term of the agreement.  
 92.4                              ARTICLE 8 
 92.5      TELECOMMUNICATIONS AND CABLE SERVICES CONSUMER PRIVACY ACT 
 92.6      Section 1.  Minnesota Statutes 2002, section 13.681, is 
 92.7   amended by adding a subdivision to read: 
 92.8      Subd. 5.  [TELECOMMUNICATIONS SERVICE PROVIDER DATA.] Data 
 92.9   on customers of telecommunications service providers are 
 92.10  classified under section 237B.81.  
 92.11     Sec. 2.  Minnesota Statutes 2002, section 13.681, is 
 92.12  amended by adding a subdivision to read: 
 92.13     Subd. 6.  [CABLE SERVICE PROVIDER DATA.] Data on 
 92.14  subscribers of cable service providers are classified under 
 92.15  section 237B.81. 
 92.16     Sec. 3.  [237B.81] [TELECOMMUNICATIONS AND CABLE SERVICES 
 92.17  CONSUMER PRIVACY ACT; DEFINITIONS.] 
 92.18     Subdivision 1.  [GENERALLY.] For purposes of sections 
 92.19  237B.81 to 237B.86, the following terms have the meanings given 
 92.20  them.  
 92.21     Subd. 2.  [AFFILIATE.] "Affiliate" means any person that 
 92.22  controls, is controlled by, or is under the common control with 
 92.23  a telecommunications service provider.  
 92.24     Subd. 3.  [AGGREGATE INFORMATION.] "Aggregate information" 
 92.25  means collective data that relate to a group or category of 
 92.26  services or customers from which individual customer identities 
 92.27  have been removed or cannot be ascertained.  
 92.28     Subd. 4.  [CUSTOMER.] "Customer" means an individual or 
 92.29  entity or authorized representative of an individual or entity 
 92.30  to whom a telecommunications service provider or cable services 
 92.31  provider is providing or has provided telecommunications or 
 92.32  cable service.  
 92.33     Subd. 5.  [CUSTOMER INFORMATION.] "Customer information" 
 92.34  means individually identifiable information about a customer 
 92.35  that is available to a telecommunications service provider or 
 92.36  cable service provider by virtue of the relationship between the 
 93.1   customer and the provider, including information regarding the 
 93.2   identity of persons called or from whom calls were received, 
 93.3   length and dates of calls, account balances, bank account 
 93.4   information for automatic withdrawal and other purposes, payment 
 93.5   records, transaction histories, or credit information.  
 93.6   Aggregate information is not customer information.  Subscriber 
 93.7   list information under section 237B.85 is not customer 
 93.8   information, except for information about a subscriber that has 
 93.9   requested not to be listed.  Information described in section 
 93.10  237A.73, subdivision 4, is considered customer information. 
 93.11     Subd. 6.  [GOVERNMENT AUTHORITY.] "Government authority" 
 93.12  means any agency or department of the state or a local unit of 
 93.13  government, or any officer, employee, or agent of it. 
 93.14     Subd. 7.  [TELECOMMUNICATIONS.] "Telecommunications" means 
 93.15  the transmission, between or among points specified by the user, 
 93.16  of information of the user's choosing, without change in the 
 93.17  form or content of the information as sent and received.  
 93.18     Subd. 8.  [TELECOMMUNICATIONS SERVICE.] (a) 
 93.19  "Telecommunications service" means:  
 93.20     (1) the offering of telecommunications for a fee directly 
 93.21  to the public, or to classes of users as to be effectively 
 93.22  available directly to the public, regardless of the facilities 
 93.23  used; and 
 93.24     (2) any service subject to this chapter, provided to a 
 93.25  customer at retail for ultimate consumption.  
 93.26     (b) Telecommunications service does not include a service 
 93.27  furnished by one provider to another for resale. 
 93.28     Subd. 9.  [TELECOMMUNICATIONS SERVICE 
 93.29  PROVIDER.] "Telecommunications service provider" means a 
 93.30  provider of a telecommunications service, including an 
 93.31  independent telephone company, telephone company, or 
 93.32  telecommunications carrier; a municipality that provides a 
 93.33  telecommunications service; or a cellular or other wireless 
 93.34  telecommunications service provider.  
 93.35     Subd. 10.  [CABLE SERVICE PROVIDER.] "Cable service 
 93.36  provider" means any person who provides cable services pursuant 
 94.1   to a franchise.  
 94.2      Subd. 11.  [SUBSCRIBER.] "Subscriber" means any person 
 94.3   lawfully subscribing to a cable service provided by the cable 
 94.4   service provider. 
 94.5      Sec. 4.  [237B.82] [PRIVACY OF CUSTOMER INFORMATION.] 
 94.6      Subdivision 1.  [DUTY OF CONFIDENTIALITY.] Except as 
 94.7   required by law or with the specific, express, prior consent of 
 94.8   the customer under section 237B.83, a telecommunications service 
 94.9   provider or cable service provider that receives or obtains 
 94.10  customer information about a customer by virtue of its provision 
 94.11  of a telecommunications or cable service to the customer shall 
 94.12  only disclose or permit access to that customer information in 
 94.13  its provision of:  
 94.14     (1) the telecommunications or cable service from which the 
 94.15  private information is derived; or 
 94.16     (2) services necessary to, or used in, the provision of the 
 94.17  telecommunications or cable service, if the entity receiving the 
 94.18  information complies with the provisions of sections 237B.81 to 
 94.19  237B.86. 
 94.20     Subd. 2.  [EXCEPTIONS.] Sections 237B.81 to 237B.86 do not 
 94.21  prohibit a telecommunications service provider or cable service 
 94.22  provider from disclosing or permitting access to customer 
 94.23  information: 
 94.24     (1) if necessary to initiate, render, bill, or collect for 
 94.25  telecommunications or cable services; 
 94.26     (2) if necessary to protect the rights or property of the 
 94.27  telecommunications service provider or cable service provider or 
 94.28  to protect other users of the telecommunications or cable 
 94.29  service provider's services and other providers from fraudulent, 
 94.30  abusive, or unlawful use of or subscription to 
 94.31  telecommunications or cable services; 
 94.32     (3) if requested by a government authority pursuant to a 
 94.33  subpoena or court order; or 
 94.34     (4) to an affiliate of the telecommunications or cable 
 94.35  service provider for the purpose of providing telecommunications 
 94.36  or cable services to the customer, if the affiliate receiving 
 95.1   the information complies with the provisions of sections 237B.81 
 95.2   to 237B.86.  
 95.3      Subd. 3.  [GOVERNMENT DATA.] Customer information obtained 
 95.4   by a government authority from a telecommunications or cable 
 95.5   service provider is private data on individuals, as defined in 
 95.6   section 13.02, subdivision 12, unless specifically classified by 
 95.7   other law.  Long-distance telephone bills paid for by the state 
 95.8   or a political subdivision are public data under section 10.46. 
 95.9      Subd. 4.  [AGGREGATE CUSTOMER INFORMATION.] Disclosure of 
 95.10  aggregate customer information by a telecommunications or cable 
 95.11  service provider must be made on reasonable and 
 95.12  nondiscriminatory terms and conditions.  
 95.13     Sec. 5.  [237B.83] [CUSTOMER NOTICE AND CONSENT FOR 
 95.14  DISCLOSURE.] 
 95.15     Subdivision 1.  [NOTICE.] (a) Before an initial request for 
 95.16  customer consent to the release of customer information and 
 95.17  annually after that time, a telecommunications or cable service 
 95.18  provider shall notify the customer of the customer's right to 
 95.19  control disclosure of and access to information on the 
 95.20  customer.  A telecommunications or cable service provider shall 
 95.21  provide this notice in writing directly to the customer.  The 
 95.22  notice must be labeled "IMPORTANT PRIVACY INFORMATION."  The 
 95.23  notice must provide sufficient information to enable the 
 95.24  customer to make an informed decision as to whether to consent 
 95.25  to disclosure of or access to information on the customer.  
 95.26     (b) A telecommunications or cable service provider shall 
 95.27  notify each customer annually of any currently valid consents 
 95.28  the customer has executed.  
 95.29     Subd. 2.  [CONSENT.] A consent to the release of customer 
 95.30  information must be in writing and signed by the customer or by 
 95.31  electronic means.  The public utilities commission shall, within 
 95.32  120 days of final enactment of this section, develop and issue 
 95.33  by order a method by which a customer may consent electronically 
 95.34  to disclosure of and access to information on the customer under 
 95.35  this section.  The consent must be contained on a separate page 
 95.36  that clearly and conspicuously discloses and allows the customer 
 96.1   to specify:  
 96.2      (1) the time during which the consent is effective, which 
 96.3   may not be longer than five years; 
 96.4      (2) each category of customer information that may be 
 96.5   disclosed, including identities of persons called or from whom 
 96.6   calls were received, length and dates of calls, account 
 96.7   balances, bank account information, payment records, transaction 
 96.8   histories, or credit information; and 
 96.9      (3) the persons to whom disclosures may be made. 
 96.10     Sec. 6.  [237B.84] [PENALTIES.] 
 96.11     In addition to other penalties provided in this chapter, 
 96.12  the attorney general may use its existing authority and remedies 
 96.13  against any telecommunications or cable service provider who 
 96.14  violates section 237B.81 or 237B.83. 
 96.15     Sec. 7.  [237B.85] [SUBSCRIBER LIST INFORMATION.] 
 96.16     (a) The commission shall require a telecommunications 
 96.17  service provider that provides local telecommunications services 
 96.18  to provide subscriber list information gathered in its capacity 
 96.19  as a provider of those services in a timely and unbundled basis 
 96.20  under nondiscriminatory and reasonable rates, terms, and 
 96.21  conditions to any person upon request for the purpose of 
 96.22  publishing telephone directories, to the extent required by 
 96.23  federal law and consistent with the purposes of sections 237B.81 
 96.24  to 237B.86.  
 96.25     (b) "Subscriber list information" means the list of names 
 96.26  of subscribers of a telecommunications service provider and the 
 96.27  subscribers' telephone numbers and addresses that the 
 96.28  telecommunications service provider, or an affiliate, has 
 96.29  published, caused to be published, or accepted for publication 
 96.30  in any directory format.  Information about a subscriber that 
 96.31  has requested not to be listed is not subscriber list 
 96.32  information.  
 96.33     Sec. 8.  [237B.86] [AUTHORITY OF COMMISSION UNAFFECTED.] 
 96.34     Nothing in sections 237B.81 to 237B.85 is intended to limit 
 96.35  the existing authority of the public utilities commission under 
 96.36  state or federal law with respect to the disclosure of 
 97.1   information.  A telecommunications or cable service provider 
 97.2   that obtains information pursuant to the commission's existing 
 97.3   authority may only disclose or permit access to that information 
 97.4   as provided in sections 237B.82 and 237B.83. 
 97.5      Sec. 9.  [EFFECTIVE DATE.] 
 97.6      Sections 1 to 7 are effective the day following final 
 97.7   enactment. 
 97.8                              ARTICLE 9 
 97.9                        CONFORMING AMENDMENTS 
 97.10     Section 1.  Minnesota Statutes 2002, section 13.46, 
 97.11  subdivision 2, is amended to read: 
 97.12     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
 97.13  a statute specifically provides a different classification, data 
 97.14  on individuals collected, maintained, used, or disseminated by 
 97.15  the welfare system is private data on individuals, and shall not 
 97.16  be disclosed except:  
 97.17     (1) according to section 13.05; 
 97.18     (2) according to court order; 
 97.19     (3) according to a statute specifically authorizing access 
 97.20  to the private data; 
 97.21     (4) to an agent of the welfare system, including a law 
 97.22  enforcement person, attorney, or investigator acting for it in 
 97.23  the investigation or prosecution of a criminal or civil 
 97.24  proceeding relating to the administration of a program; 
 97.25     (5) to personnel of the welfare system who require the data 
 97.26  to determine eligibility, amount of assistance, and the need to 
 97.27  provide services of additional programs to the individual; 
 97.28     (6) to administer federal funds or programs; 
 97.29     (7) between personnel of the welfare system working in the 
 97.30  same program; 
 97.31     (8) the amounts of cash public assistance and relief paid 
 97.32  to welfare recipients in this state, including their names, 
 97.33  social security numbers, income, addresses, and other data as 
 97.34  required, upon request by the department of revenue to 
 97.35  administer the property tax refund law, supplemental housing 
 97.36  allowance, early refund of refundable tax credits, and the 
 98.1   income tax.  "Refundable tax credits" means the dependent care 
 98.2   credit under section 290.067, the Minnesota working family 
 98.3   credit under section 290.0671, the property tax refund under 
 98.4   section 290A.04, and, if the required federal waiver or waivers 
 98.5   are granted, the federal earned income tax credit under section 
 98.6   32 of the Internal Revenue Code; 
 98.7      (9) between the department of human services, the 
 98.8   department of children, families, and learning, and the 
 98.9   department of economic security for the purpose of monitoring 
 98.10  the eligibility of the data subject for unemployment benefits, 
 98.11  for any employment or training program administered, supervised, 
 98.12  or certified by that agency, for the purpose of administering 
 98.13  any rehabilitation program or child care assistance program, 
 98.14  whether alone or in conjunction with the welfare system, or to 
 98.15  monitor and evaluate the Minnesota family investment program by 
 98.16  exchanging data on recipients and former recipients of food 
 98.17  stamps, cash assistance under chapter 256, 256D, 256J, or 256K, 
 98.18  child care assistance under chapter 119B, or medical programs 
 98.19  under chapter 256B, 256D, or 256L; 
 98.20     (10) to appropriate parties in connection with an emergency 
 98.21  if knowledge of the information is necessary to protect the 
 98.22  health or safety of the individual or other individuals or 
 98.23  persons; 
 98.24     (11) data maintained by residential programs as defined in 
 98.25  section 245A.02 may be disclosed to the protection and advocacy 
 98.26  system established in this state according to Part C of Public 
 98.27  Law Number 98-527 to protect the legal and human rights of 
 98.28  persons with mental retardation or other related conditions who 
 98.29  live in residential facilities for these persons if the 
 98.30  protection and advocacy system receives a complaint by or on 
 98.31  behalf of that person and the person does not have a legal 
 98.32  guardian or the state or a designee of the state is the legal 
 98.33  guardian of the person; 
 98.34     (12) to the county medical examiner or the county coroner 
 98.35  for identifying or locating relatives or friends of a deceased 
 98.36  person; 
 99.1      (13) data on a child support obligor who makes payments to 
 99.2   the public agency may be disclosed to the higher education 
 99.3   services office to the extent necessary to determine eligibility 
 99.4   under section 136A.121, subdivision 2, clause (5); 
 99.5      (14) participant social security numbers and names 
 99.6   collected by the telephone department of human services for the 
 99.7   purposes of implementing the telecommunications assistance 
 99.8   program under sections 237A.52 and 237A.54 may be disclosed to 
 99.9   the department of revenue to conduct an electronic data match 
 99.10  with the property tax refund database to determine eligibility 
 99.11  under section 237.70, subdivision 4a 237A.52; 
 99.12     (15) the current address of a Minnesota family investment 
 99.13  program participant may be disclosed to law enforcement officers 
 99.14  who provide the name of the participant and notify the agency 
 99.15  that: 
 99.16     (i) the participant: 
 99.17     (A) is a fugitive felon fleeing to avoid prosecution, or 
 99.18  custody or confinement after conviction, for a crime or attempt 
 99.19  to commit a crime that is a felony under the laws of the 
 99.20  jurisdiction from which the individual is fleeing; or 
 99.21     (B) is violating a condition of probation or parole imposed 
 99.22  under state or federal law; 
 99.23     (ii) the location or apprehension of the felon is within 
 99.24  the law enforcement officer's official duties; and 
 99.25     (iii)  the request is made in writing and in the proper 
 99.26  exercise of those duties; 
 99.27     (16) the current address of a recipient of general 
 99.28  assistance or general assistance medical care may be disclosed 
 99.29  to probation officers and corrections agents who are supervising 
 99.30  the recipient and to law enforcement officers who are 
 99.31  investigating the recipient in connection with a felony level 
 99.32  offense; 
 99.33     (17) information obtained from food stamp applicant or 
 99.34  recipient households may be disclosed to local, state, or 
 99.35  federal law enforcement officials, upon their written request, 
 99.36  for the purpose of investigating an alleged violation of the 
100.1   Food Stamp Act, according to Code of Federal Regulations, title 
100.2   7, section 272.1(c); 
100.3      (18) the address, social security number, and, if 
100.4   available, photograph of any member of a household receiving 
100.5   food stamps shall be made available, on request, to a local, 
100.6   state, or federal law enforcement officer if the officer 
100.7   furnishes the agency with the name of the member and notifies 
100.8   the agency that:  
100.9      (i) the member: 
100.10     (A) is fleeing to avoid prosecution, or custody or 
100.11  confinement after conviction, for a crime or attempt to commit a 
100.12  crime that is a felony in the jurisdiction the member is 
100.13  fleeing; 
100.14     (B) is violating a condition of probation or parole imposed 
100.15  under state or federal law; or 
100.16     (C) has information that is necessary for the officer to 
100.17  conduct an official duty related to conduct described in subitem 
100.18  (A) or (B); 
100.19     (ii) locating or apprehending the member is within the 
100.20  officer's official duties; and 
100.21     (iii) the request is made in writing and in the proper 
100.22  exercise of the officer's official duty; 
100.23     (19) the current address of a recipient of Minnesota family 
100.24  investment program, general assistance, general assistance 
100.25  medical care, or food stamps may be disclosed to law enforcement 
100.26  officers who, in writing, provide the name of the recipient and 
100.27  notify the agency that the recipient is a person required to 
100.28  register under section 243.166, but is not residing at the 
100.29  address at which the recipient is registered under section 
100.30  243.166; 
100.31     (20) certain information regarding child support obligors 
100.32  who are in arrears may be made public according to section 
100.33  518.575; 
100.34     (21) data on child support payments made by a child support 
100.35  obligor and data on the distribution of those payments excluding 
100.36  identifying information on obligees may be disclosed to all 
101.1   obligees to whom the obligor owes support, and data on the 
101.2   enforcement actions undertaken by the public authority, the 
101.3   status of those actions, and data on the income of the obligor 
101.4   or obligee may be disclosed to the other party; 
101.5      (22) data in the work reporting system may be disclosed 
101.6   under section 256.998, subdivision 7; 
101.7      (23) to the department of children, families, and learning 
101.8   for the purpose of matching department of children, families, 
101.9   and learning student data with public assistance data to 
101.10  determine students eligible for free and reduced price meals, 
101.11  meal supplements, and free milk according to United States Code, 
101.12  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
101.13  allocate federal and state funds that are distributed based on 
101.14  income of the student's family; and to verify receipt of energy 
101.15  assistance for the telephone assistance plan; 
101.16     (24) the current address and telephone number of program 
101.17  recipients and emergency contacts may be released to the 
101.18  commissioner of health or a local board of health as defined in 
101.19  section 145A.02, subdivision 2, when the commissioner or local 
101.20  board of health has reason to believe that a program recipient 
101.21  is a disease case, carrier, suspect case, or at risk of illness, 
101.22  and the data are necessary to locate the person; 
101.23     (25) to other state agencies, statewide systems, and 
101.24  political subdivisions of this state, including the attorney 
101.25  general, and agencies of other states, interstate information 
101.26  networks, federal agencies, and other entities as required by 
101.27  federal regulation or law for the administration of the child 
101.28  support enforcement program; 
101.29     (26) to personnel of public assistance programs as defined 
101.30  in section 256.741, for access to the child support system 
101.31  database for the purpose of administration, including monitoring 
101.32  and evaluation of those public assistance programs; 
101.33     (27) to monitor and evaluate the Minnesota family 
101.34  investment program by exchanging data between the departments of 
101.35  human services and children, families, and learning, on 
101.36  recipients and former recipients of food stamps, cash assistance 
102.1   under chapter 256, 256D, 256J, or 256K, child care assistance 
102.2   under chapter 119B, or medical programs under chapter 256B, 
102.3   256D, or 256L; 
102.4      (28) to evaluate child support program performance and to 
102.5   identify and prevent fraud in the child support program by 
102.6   exchanging data between the department of human services, 
102.7   department of revenue under section 270B.14, subdivision 1, 
102.8   paragraphs (a) and (b), without regard to the limitation of use 
102.9   in paragraph (c), department of health, department of economic 
102.10  security, and other state agencies as is reasonably necessary to 
102.11  perform these functions; or 
102.12     (29) counties operating child care assistance programs 
102.13  under chapter 119B may disseminate data on program participants, 
102.14  applicants, and providers to the commissioner of children, 
102.15  families, and learning.  
102.16     (b) Information on persons who have been treated for drug 
102.17  or alcohol abuse may only be disclosed according to the 
102.18  requirements of Code of Federal Regulations, title 42, sections 
102.19  2.1 to 2.67. 
102.20     (c) Data provided to law enforcement agencies under 
102.21  paragraph (a), clause (15), (16), (17), or (18), or paragraph 
102.22  (b), are investigative data and are confidential or protected 
102.23  nonpublic while the investigation is active.  The data are 
102.24  private after the investigation becomes inactive under section 
102.25  13.82, subdivision 5, paragraph (a) or (b). 
102.26     (d) Mental health data shall be treated as provided in 
102.27  subdivisions 7, 8, and 9, but is not subject to the access 
102.28  provisions of subdivision 10, paragraph (b). 
102.29     (e) For the purposes of this subdivision, a request will be 
102.30  deemed to be made in writing if made through a computer 
102.31  interface system. 
102.32     Sec. 2.  Minnesota Statutes 2002, section 16A.124, 
102.33  subdivision 8, is amended to read: 
102.34     Subd. 8.  [APPLICABILITY.] Subdivisions 1 to 7 apply to all 
102.35  agency purchases, leases, rentals, and contracts for services, 
102.36  including construction and remodeling contracts, except for: 
103.1      (1) purchases from or contracts for service with a public 
103.2   utility as defined in section 216B.02 or a telephone company as 
103.3   defined in section 237.01 that has on file with the public 
103.4   utilities commission an approved practice regarding late fees; 
103.5   and 
103.6      (2) provider billings to and contracts with the 
103.7   commissioner of human services for health care services, which 
103.8   are subject only to subdivisions 4a and 4b.  
103.9      Sec. 3.  Minnesota Statutes 2002, section 16B.465, 
103.10  subdivision 1, is amended to read: 
103.11     Subdivision 1.  [POLICY.] (a) The state through its 
103.12  departments and agencies shall seek ways to meet its 
103.13  telecommunications needs in a manner that will help to promote 
103.14  investment and growth of the private sector information 
103.15  infrastructure throughout the state.  
103.16     (b) The commissioner shall ensure that telecommunications 
103.17  services are acquired in a manner that: 
103.18     (1) promotes the availability of technologies with 
103.19  statewide high-speed or advanced telecommunications capability 
103.20  for both public and private customers in a reasonable and timely 
103.21  fashion; 
103.22     (2) enables the cost-effective provision of 
103.23  telecommunications services to the entities identified in this 
103.24  section; 
103.25     (3) uses standards-based open, interoperable networks to 
103.26  the extent practicable; 
103.27     (4) promotes fair and open competition in the delivery of 
103.28  telecommunications services; 
103.29     (5) allows effective state information infrastructure 
103.30  network management, responsiveness, and fault protection; 
103.31     (6) provides networkwide security and confidentiality as 
103.32  appropriate for promoting public safety, health, and welfare; 
103.33  and 
103.34     (7) meets performance standards that are reasonable and 
103.35  necessary.  
103.36     (c) The state may purchase, own, or lease customer premises 
104.1   equipment.  Customer premises equipment consists of terminal and 
104.2   associated equipment and inside wire located at an end user's 
104.3   premises and connected with communication channels at the point 
104.4   established in a building or a complex to separate customer 
104.5   equipment from the network.  Customer premises equipment also 
104.6   includes, but is not limited to, communications devices eligible 
104.7   for distribution to communications impaired persons under 
104.8   section 237.51, subdivision 1 237A.47. 
104.9      (d) This section does not prohibit the commissioner or 
104.10  other governmental entity from owning, leasing, operating, and 
104.11  staffing a network operation center that allows the commissioner 
104.12  to test, troubleshoot, and maintain network operations.  
104.13     Sec. 4.  Minnesota Statutes 2002, section 16B.465, 
104.14  subdivision 1a, is amended to read: 
104.15     Subd. 1a.  [CREATION.] Except as provided in subdivision 4, 
104.16  the commissioner, through the state information infrastructure, 
104.17  shall arrange for the provision of voice, data, video, and other 
104.18  telecommunications transmission services to state agencies.  The 
104.19  state information infrastructure may also serve educational 
104.20  institutions, including public schools as defined in section 
104.21  120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or 
104.22  religious organization schools that provide instruction in 
104.23  compliance with sections 120A.22, 120A.24, and 120A.41, and 
104.24  private colleges; public corporations; Indian tribal 
104.25  governments; and state political subdivisions.  It is not a 
104.26  telephone company or telecommunications service provider for 
104.27  purposes of chapter 237 237A.  The commissioner may purchase, 
104.28  own, or lease any telecommunications network facilities or 
104.29  equipment after first seeking bids or proposals and having 
104.30  determined that the private sector cannot, will not, or is 
104.31  unable to provide these services, facilities, or equipment as 
104.32  bid or proposed in a reasonable or timely fashion consistent 
104.33  with policy set forth in this section.  The commissioner shall 
104.34  not resell or sublease any services or facilities to nonpublic 
104.35  entities except to serve private schools and colleges.  The 
104.36  commissioner has the responsibility for planning, development, 
105.1   and operations of the state information infrastructure in order 
105.2   to provide cost-effective telecommunications transmission 
105.3   services to state information infrastructure users consistent 
105.4   with the policy set forth in this section. 
105.5      Sec. 5.  Minnesota Statutes 2002, section 115B.02, 
105.6   subdivision 14, is amended to read: 
105.7      Subd. 14.  [PUBLIC UTILITY EASEMENT.] "Public utility 
105.8   easement" means an easement used for the purposes of 
105.9   transmission, distribution, or furnishing, at wholesale or 
105.10  retail, natural or manufactured gas, or electric or telephone 
105.11  telecommunications service, by a public utility as defined in 
105.12  section 216B.02, subdivision 4, a cooperative electric 
105.13  association organized under the provisions of chapter 308A, 
105.14  a telephone company telecommunications service provider as 
105.15  defined in section 237.01, subdivisions 3 and 7 237A.01, or a 
105.16  municipality producing or furnishing gas, electric, or telephone 
105.17  service.  
105.18     Sec. 6.  Minnesota Statutes 2002, section 216A.03, 
105.19  subdivision 7, is amended to read: 
105.20     Subd. 7.  [FILING APPROVED WITHOUT HEARING.] A filing with 
105.21  the commission may be deemed approved by the commission after 60 
105.22  days of filing, unless the commission, a commissioner, or any 
105.23  other person requests the filing be set aside for action by the 
105.24  commission.  The commission may designate, by standing order, 
105.25  categories or types of filings that are eligible for approval 
105.26  under this subdivision.  Complaint filings, petitions for 
105.27  rulemakings, or petitions to increase rates are not eligible for 
105.28  designation.  The commission must publish a weekly notice of the 
105.29  filings that are approved without other action by the 
105.30  commission, and shall issue a written order approving the filing 
105.31  upon passage of the 60-day term, or upon receipt of comments by 
105.32  the department recommending the filing be approved.  Orders 
105.33  approved under this subdivision are subject to reconsideration, 
105.34  as provided in section 216B.27 or the commission's rules of 
105.35  practice and procedure, and nothing in this subdivision affects 
105.36  the rights of any entity under section 216B.17 or 237.081 
106.1   237A.28. 
106.2      Sec. 7.  Minnesota Statutes 2002, section 216A.07, 
106.3   subdivision 2, is amended to read: 
106.4      Subd. 2.  [ENFORCEMENT.] The commissioner is responsible 
106.5   for the enforcement of chapters 216A, 216B, and 237 237A and the 
106.6   orders of the commission issued pursuant to those chapters. 
106.7      Sec. 8.  Minnesota Statutes 2002, section 216A.07, 
106.8   subdivision 5, is amended to read: 
106.9      Subd. 5.  [RULEMAKING.] The commissioner shall make 
106.10  substantive and procedural rules to implement the provisions of 
106.11  this chapter and chapters 216B and 237 237A.  Rules adopted 
106.12  under this authority shall be promulgated pursuant to the 
106.13  Administrative Procedure Act and shall have the force and effect 
106.14  of law.  
106.15     Sec. 9.  Minnesota Statutes 2002, section 216B.16, 
106.16  subdivision 2, is amended to read: 
106.17     Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
106.18  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
106.19  commission a schedule modifying or resulting in a change in any 
106.20  rates then in force as provided in subdivision 1, the commission 
106.21  may suspend the operation of the schedule by filing with the 
106.22  schedule of rates and delivering to the affected utility a 
106.23  statement in writing of its reasons for the suspension at any 
106.24  time before the rates become effective.  The suspension shall 
106.25  not be for a longer period than ten months beyond the initial 
106.26  filing date except as provided in this subdivision or 
106.27  subdivision 1a.  
106.28     (b) During the suspension the commission shall determine 
106.29  whether all questions of the reasonableness of the rates 
106.30  requested raised by persons deemed interested or by the 
106.31  department can be resolved to the satisfaction of the 
106.32  commission.  If the commission finds that all significant issues 
106.33  raised have not been resolved to its satisfaction, or upon 
106.34  petition by ten percent of the affected customers or 250 
106.35  affected customers, whichever is less, it shall refer the matter 
106.36  to the office of administrative hearings with instructions for a 
107.1   public hearing as a contested case pursuant to chapter 14, 
107.2   except as otherwise provided in this section. 
107.3      (c) The commission may order that the issues presented by 
107.4   the proposed rate changes be bifurcated into two separate 
107.5   hearings as follows:  (1) determination of the utility's revenue 
107.6   requirements and (2) determination of the rate design.  Upon 
107.7   issuance of both administrative law judge reports, the issues 
107.8   shall again be joined for consideration and final determination 
107.9   by the commission. 
107.10     (d) All prehearing discovery activities of state agency 
107.11  intervenors shall be consolidated and conducted by the 
107.12  department of commerce. 
107.13     (e) If the commission does not make a final determination 
107.14  concerning a schedule of rates within ten months after the 
107.15  initial filing date, the schedule shall be deemed to have been 
107.16  approved by the commission; except if: 
107.17     (1) an extension of the procedural schedule has been 
107.18  granted under subdivision 1a, in which case the schedule of 
107.19  rates is deemed to have been approved by the commission on the 
107.20  last day of the extended period of suspension; or 
107.21     (2) a settlement has been submitted to and rejected by the 
107.22  commission and the commission does not make a final 
107.23  determination concerning the schedule of rates, the schedule of 
107.24  rates is deemed to have been approved 60 days after the 
107.25  initial filing or, if applicable, the extended period of 
107.26  suspension. 
107.27     (f) If the commission finds that it has insufficient time 
107.28  during the suspension period to make a final determination of a 
107.29  case involving changes in general rates because of the need to 
107.30  make a final determination of another previously filed case 
107.31  involving changes in general rates under this section or section 
107.32  237.075 237A.08, the commission may extend the suspension period 
107.33  to the extent necessary to allow itself 20 working days to make 
107.34  the final determination after it has made a final determination 
107.35  in the previously filed case.  An extension of the suspension 
107.36  period under this paragraph does not alter the setting of 
108.1   interim rates under subdivision 3. 
108.2      (g) For the purposes of this section, "final determination" 
108.3   means the initial decision of the commission and not any order 
108.4   which may be entered by the commission in response to a petition 
108.5   for rehearing or other further relief.  The commission may 
108.6   further suspend rates until it determines all those petitions. 
108.7      Sec. 10.  Minnesota Statutes 2002, section 221.031, 
108.8   subdivision 2, is amended to read: 
108.9      Subd. 2.  [PRIVATE CARRIERS; OPERATING REQUIREMENTS, 
108.10  EXEMPTIONS.] (a) This subdivision applies to private carriers 
108.11  engaged in intrastate commerce. 
108.12     (b) Private carriers operating vehicles with a gross 
108.13  vehicle weight of more than 10,000 pounds shall comply with 
108.14  those federal regulations incorporated by reference in: 
108.15     (1) section 221.0314, subdivisions 2 to 5, for driver 
108.16  qualifications; 
108.17     (2) section 221.0314, subdivision 9, for hours of service 
108.18  of drivers; 
108.19     (3) section 221.0314, subdivision 6, for driving of motor 
108.20  vehicles; 
108.21     (4) section 221.0314, subdivision 7, for parts and 
108.22  accessories necessary for safe operation; and 
108.23     (5) section 221.0314, subdivision 10, for inspection, 
108.24  repair, and maintenance. 
108.25     (c) The rules for hours of service of drivers do not apply 
108.26  to private carriers who are (1) public utilities as defined in 
108.27  section 216B.02, subdivision 4; (2) cooperative electric 
108.28  associations organized under chapter 308A; (3) telephone 
108.29  companies as defined in section 237.01, subdivision 7; or (4) 
108.30  engaged in the transportation of construction materials, tools 
108.31  and equipment from shop to job site or job site to job site, for 
108.32  use by the private carrier in the new construction, remodeling, 
108.33  or repair of buildings, structures or their appurtenances. 
108.34     (d) The rules for driver qualifications and hours of 
108.35  service of drivers do not apply to vehicles controlled by a 
108.36  farmer and operated by a farmer or farm employee to transport 
109.1   agricultural products, farm machinery, or supplies to or from a 
109.2   farm if the vehicle is not used in the operations of a motor 
109.3   carrier and not carrying hazardous materials of a type or 
109.4   quantity that requires the vehicle to be marked or placarded in 
109.5   accordance with section 221.033.  
109.6      (e) The rules for driver qualifications do not apply to a 
109.7   driver employed by a private carrier while operating a 
109.8   lightweight vehicle. 
109.9      Sec. 11.  Minnesota Statutes 2002, section 256.978, 
109.10  subdivision 2, is amended to read: 
109.11     Subd. 2.  [ACCESS TO INFORMATION.] (a) A request for 
109.12  information by the public authority responsible for child 
109.13  support of this state or any other state may be made to: 
109.14     (1) employers when there is reasonable cause to believe 
109.15  that the subject of the inquiry is or was an employee or 
109.16  independent contractor of the employer.  Information to be 
109.17  released by employers of employees is limited to place of 
109.18  residence, employment status, wage or payment information, 
109.19  benefit information, and social security number.  Information to 
109.20  be released by employers of independent contractors is limited 
109.21  to place of residence or address, contract status, payment 
109.22  information, benefit information, and social security number or 
109.23  identification number; 
109.24     (2) utility companies when there is reasonable cause to 
109.25  believe that the subject of the inquiry is or was a retail 
109.26  customer of the utility company.  Customer information to be 
109.27  released by utility companies is limited to place of residence, 
109.28  home telephone, work telephone, source of income, employer and 
109.29  place of employment, and social security number; 
109.30     (3) insurance companies when there is reasonable cause to 
109.31  believe that the subject of the inquiry is or was receiving 
109.32  funds either in the form of a lump sum or periodic payments.  
109.33  Information to be released by insurance companies is limited to 
109.34  place of residence, home telephone, work telephone, employer, 
109.35  social security number, and amounts and type of payments made to 
109.36  the subject of the inquiry; 
110.1      (4) labor organizations when there is reasonable cause to 
110.2   believe that the subject of the inquiry is or was a member of 
110.3   the labor association.  Information to be released by labor 
110.4   associations is limited to place of residence, home telephone, 
110.5   work telephone, social security number, and current and past 
110.6   employment information; and 
110.7      (5) financial institutions when there is reasonable cause 
110.8   to believe that the subject of the inquiry has or has had 
110.9   accounts, stocks, loans, certificates of deposits, treasury 
110.10  bills, life insurance policies, or other forms of financial 
110.11  dealings with the institution.  Information to be released by 
110.12  the financial institution is limited to place of residence, home 
110.13  telephone, work telephone, identifying information on the type 
110.14  of financial relationships, social security number, current 
110.15  value of financial relationships, and current indebtedness of 
110.16  the subject with the financial institution. 
110.17     (b) For purposes of this subdivision, utility companies 
110.18  include telephone companies, radio common carriers, and 
110.19  telecommunications carriers service providers as defined in 
110.20  section 237.01 237A.01, and companies that provide electrical, 
110.21  telephone, natural gas, propane gas, oil, coal, or cable 
110.22  television services to retail customers.  The term financial 
110.23  institution includes banks, savings and loans, credit unions, 
110.24  brokerage firms, mortgage companies, insurance companies, 
110.25  benefit associations, safe deposit companies, money market 
110.26  mutual funds, or similar entities authorized to do business in 
110.27  the state. 
110.28     Sec. 12.  Minnesota Statutes 2002, section 270B.14, 
110.29  subdivision 1, is amended to read: 
110.30     Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
110.31  SERVICES.] (a) On the request of the commissioner of human 
110.32  services, the commissioner shall disclose return information 
110.33  regarding taxes imposed by chapter 290, and claims for refunds 
110.34  under chapter 290A, to the extent provided in paragraph (b) and 
110.35  for the purposes set forth in paragraph (c). 
110.36     (b) Data that may be disclosed are limited to data relating 
111.1   to the identity, whereabouts, employment, income, and property 
111.2   of a person owing or alleged to be owing an obligation of child 
111.3   support. 
111.4      (c) The commissioner of human services may request data 
111.5   only for the purposes of carrying out the child support 
111.6   enforcement program and to assist in the location of parents who 
111.7   have, or appear to have, deserted their children.  Data received 
111.8   may be used only as set forth in section 256.978. 
111.9      (d) The commissioner shall provide the records and 
111.10  information necessary to administer the supplemental housing 
111.11  allowance to the commissioner of human services.  
111.12     (e) At the request of the commissioner of human services, 
111.13  the commissioner of revenue shall electronically match the 
111.14  social security numbers and names of participants in the 
111.15  telephone telecommunications assistance plan operated under 
111.16  sections 237.69 to 237.711 237A.52 and 237A.54, with those of 
111.17  property tax refund filers, and determine whether each 
111.18  participant's household income is within the eligibility 
111.19  standards for the telephone assistance plan. 
111.20     (f) The commissioner may provide records and information 
111.21  collected under sections 295.50 to 295.59 to the commissioner of 
111.22  human services for purposes of the Medicaid Voluntary 
111.23  Contribution and Provider-Specific Tax Amendments of 1991, 
111.24  Public Law Number 102-234.  Upon the written agreement by the 
111.25  United States Department of Health and Human Services to 
111.26  maintain the confidentiality of the data, the commissioner may 
111.27  provide records and information collected under sections 295.50 
111.28  to 295.59 to the Centers for Medicare and Medicaid Services 
111.29  section of the United States Department of Health and Human 
111.30  Services for purposes of meeting federal reporting requirements. 
111.31     (g) The commissioner may provide records and information to 
111.32  the commissioner of human services as necessary to administer 
111.33  the early refund of refundable tax credits. 
111.34     (h) The commissioner may disclose information to the 
111.35  commissioner of human services necessary to verify income for 
111.36  eligibility and premium payment under the MinnesotaCare program, 
112.1   under section 256L.05, subdivision 2. 
112.2      (i) The commissioner may disclose information to the 
112.3   commissioner of human services necessary to verify whether 
112.4   applicants or recipients for the Minnesota family investment 
112.5   program, general assistance, food stamps, and Minnesota 
112.6   supplemental aid program have claimed refundable tax credits 
112.7   under chapter 290 and the property tax refund under chapter 
112.8   290A, and the amounts of the credits. 
112.9      Sec. 13.  Minnesota Statutes 2002, section 272.01, 
112.10  subdivision 3, is amended to read: 
112.11     Subd. 3.  The provisions of subdivision 2 shall not apply 
112.12  to: 
112.13     (a) Federal property for which payments are made in lieu of 
112.14  taxes in amounts equivalent to taxes which might otherwise be 
112.15  lawfully assessed; 
112.16     (b) Real estate exempt from ad valorem taxes and taxes in 
112.17  lieu thereof which is leased, loaned, or otherwise made 
112.18  available to telephone companies telecommunications service 
112.19  providers or electric, light and power companies upon which 
112.20  personal property consisting of transmission and distribution 
112.21  lines is situated and assessed pursuant to sections 273.37, 
112.22  273.38, 273.40 and 273.41, or upon which are situated the 
112.23  communication lines of express, railway, 
112.24  telephone telecommunications or telegraph companies, or 
112.25  pipelines used for the transmission and distribution of 
112.26  petroleum products, or the equipment items of a 
112.27  cable communications company service provider subject to 
112.28  sections 238.35 to 238.42 chapter 237A; 
112.29     (c) Property presently owned by any educational institution 
112.30  chartered by the territorial legislature; 
112.31     (d) Indian lands; 
112.32     (e) Property of any corporation organized as a tribal 
112.33  corporation under the Indian Reorganization Act of June 18, 
112.34  1934, (Statutes at Large, volume 48, page 984); 
112.35     (f) Real property owned by the state and leased pursuant to 
112.36  section 161.23 or 161.431, and acts amendatory thereto; 
113.1      (g) Real property owned by a seaway port authority on June 
113.2   1, 1967, upon which there has been constructed docks, 
113.3   warehouses, tank farms, administrative and maintenance 
113.4   buildings, railroad and ship terminal facilities and other 
113.5   maritime and transportation facilities or those directly related 
113.6   thereto, together with facilities for the handling of passengers 
113.7   and baggage and for the handling of freight and bulk liquids, 
113.8   and personal property owned by a seaway port authority used or 
113.9   usable in connection therewith, when said property is leased to 
113.10  a private individual, association or corporation, but only when 
113.11  such lease provides that the said facilities are available to 
113.12  the public for the loading and unloading of passengers and their 
113.13  baggage and the handling, storage, care, shipment, and delivery 
113.14  of merchandise, freight and baggage and other maritime and 
113.15  transportation activities and functions directly related 
113.16  thereto, but not including property used for grain elevator 
113.17  facilities; it being the declared policy of this state that such 
113.18  property when so leased is public property used exclusively for 
113.19  a public purpose, notwithstanding the one-year limitation in the 
113.20  provisions of section 273.19; 
113.21     (h) Notwithstanding the provisions of clause (g), when the 
113.22  annual rental received by a seaway port authority in any 
113.23  calendar year for such leased property exceeds an amount 
113.24  reasonably required for administrative expense of the authority 
113.25  per year, plus promotional expense for the authority not to 
113.26  exceed the sum of $100,000 per year, to be expended when and in 
113.27  the manner decided upon by the commissioners, plus an amount 
113.28  sufficient to pay all installments of principal and interest 
113.29  due, or to become due, during such calendar year and the next 
113.30  succeeding year on any revenue bonds issued by the authority, 
113.31  plus 25 percent of the gross annual rental to be retained by the 
113.32  authority for improvement, development, or other contingencies, 
113.33  the authority shall make a payment in lieu of real and personal 
113.34  property taxes of a reasonable portion of the remaining annual 
113.35  rental to the county treasurer of the county in which such 
113.36  seaway port authority is principally located.  Any such payments 
114.1   to the county treasurer shall be disbursed by the treasurer on 
114.2   the same basis as real estate taxes are divided among the 
114.3   various governmental units, but if such port authority shall 
114.4   have received funds from the state of Minnesota and funds from 
114.5   any city and county pursuant to Laws 1957, chapters 648, 831, 
114.6   and 849 and acts amendatory thereof, then such disbursement by 
114.7   the county treasurer shall be on the same basis as real estate 
114.8   taxes are divided among the various governmental units, except 
114.9   that the portion of such payments which would otherwise go to 
114.10  other taxing units shall be divided equally among the state of 
114.11  Minnesota and said county and city. 
114.12     Sec. 14.  Minnesota Statutes 2002, section 297A.61, 
114.13  subdivision 7, is amended to read: 
114.14     Subd. 7.  [SALES PRICE.] (a) "Sales price" means the 
114.15  measure subject to sales tax, and means the total amount of 
114.16  consideration, including cash, credit, property, and services, 
114.17  for which personal property or services are sold, leased, or 
114.18  rented, valued in money, whether received in money or otherwise, 
114.19  without any deduction for the following: 
114.20     (1) the seller's cost of the property sold; 
114.21     (2) the cost of materials used, labor or service cost, 
114.22  interest, losses, all costs of transportation to the seller, all 
114.23  taxes imposed on the seller, and any other expenses of the 
114.24  seller; 
114.25     (3) charges by the seller for any services necessary to 
114.26  complete the sale, other than delivery and installation charges; 
114.27     (4) delivery charges; 
114.28     (5) installation charges; and 
114.29     (6) the value of exempt property given to the purchaser 
114.30  when taxable and exempt personal property have been bundled 
114.31  together and sold by the seller as a single product or piece of 
114.32  merchandise; and 
114.33     (7) all charges imposed under section 237A.42 on purchases 
114.34  of telecommunications services used to fund the Minnesota 
114.35  universal service fund. 
114.36     (b) Sales price does not include: 
115.1      (1) discounts, including cash, terms, or coupons that are 
115.2   not reimbursed by a third party and that are allowed by the 
115.3   seller and taken by a purchaser on a sale; 
115.4      (2) interest, financing, and carrying charges from credit 
115.5   extended on the sale of personal property or services, if the 
115.6   amount is separately stated on the invoice, bill of sale, or 
115.7   similar document given to the purchaser; and 
115.8      (3) any taxes legally imposed directly on the consumer that 
115.9   are separately stated on the invoice, bill of sale, or similar 
115.10  document given to the purchaser. 
115.11     Sec. 15.  Minnesota Statutes 2002, section 308A.210, 
115.12  subdivision 3, is amended to read: 
115.13     Subd. 3.  [POWERS.] A purchasing cooperative has all of the 
115.14  powers described in section 308A.201, except that a purchasing 
115.15  cooperative does not have the power of eminent domain.  A 
115.16  purchasing cooperative is not a telephone or electric 
115.17  cooperative or telecommunications service provider as those 
115.18  terms are used in this chapter and chapters 216B and 237 237A. 
115.19     Sec. 16.  Minnesota Statutes 2002, section 308A.210, 
115.20  subdivision 8, is amended to read: 
115.21     Subd. 8.  [ADVANCED TELECOMMUNICATION SERVICE; DEFINED.] 
115.22  "Advanced telecommunications service" includes any service that 
115.23  would be classified as a flexibly priced service within the 
115.24  meaning of section 237.761, subdivision 4, or 
115.25  non-price-regulated service within the meaning of section 
115.26  237.761, subdivision 4, provided that a service may be an 
115.27  advanced telephone service whether or not the telephone company 
115.28  has adopted an alternative rate plan within the meaning of 
115.29  section 237.76 has the meaning given in section 237A.01, 
115.30  subdivision 5. 
115.31     Sec. 17.  Minnesota Statutes 2002, section 325E.021, is 
115.32  amended to read: 
115.33     325E.021 [UTILITY DELINQUENCY CHARGES.] 
115.34     A public utility as defined by section 216B.02, a 
115.35  municipality or cooperative electric association, or telephone 
115.36  company telecommunications service provider as defined by 
116.1   section 237.01 237A.01, shall, if that utility adopts a policy 
116.2   of imposing a charge or fee upon delinquent residential and farm 
116.3   accounts, provide that each billing shall clearly state the 
116.4   terms and conditions of any penalty in the form of the monthly 
116.5   percentage rate.  
116.6      Sec. 18.  Minnesota Statutes 2002, section 325F.692, is 
116.7   amended to read: 
116.8      325F.692 [FRAUDULENT TELEPHONE SERVICES; BILLING.] 
116.9      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
116.10  section, the following terms have the meanings given them. 
116.11     (b) "Information service" means a billed service 
116.12  transmitted exclusively orally via the telecommunications 
116.13  network that may include provision of information or advice, 
116.14  participation in trivia or other games, participation in adult 
116.15  conversation or other group bridging services, or provision of 
116.16  similar billed services.  An information service may be accessed 
116.17  by an information service customer by various methods including, 
116.18  but not limited to, dialing a 1-900 or 1-800 telephone number, 
116.19  or by the customer receiving a collect call from an information 
116.20  service provider following the customer's 1-800 call. 
116.21     (c) "Information service customer" means a person who 
116.22  receives information transmitted from or participates in 
116.23  conversation enabled by an information service provider. 
116.24     (d) "Information service provider" means a person who 
116.25  provides information services and directly, or indirectly 
116.26  through a billing agent, either charges information service 
116.27  customers for use of the information service or includes the 
116.28  costs associated with providing information services in the 
116.29  charge for a long-distance call. 
116.30     (e) "Telephone Telecommunications service subscriber" means 
116.31  a person who contracts with a telephone company 
116.32  telecommunications service provider, as defined in section 
116.33  237A.01, for telephone services. 
116.34     Subd. 2.  [UNAUTHORIZED INFORMATION SERVICE CHARGES; 
116.35  LIABILITY.] A telephone telecommunications service subscriber is 
116.36  not responsible for information service charges for calls made 
117.1   by minors or vulnerable adults as defined in section 626.5572, 
117.2   subdivision 21, unless expressly authorized by the subscriber or 
117.3   spouse. 
117.4      Subd. 3.  [BILLING; SEGREGATED CHARGES; NOTICE.] (a) A 
117.5   telephone company or independent telephone company, as defined 
117.6   in section 237.01, or Any other entity that serves as the 
117.7   billing agent for information service charges shall, to the 
117.8   extent it has knowledge, list the charges for information 
117.9   services separately from charges for local and long distance 
117.10  telephone service charges on each telephone telecommunications 
117.11  service subscriber's billing statement, regardless of whether an 
117.12  information service customer initiated a call to access the 
117.13  information service or whether the information service provider 
117.14  initiated a call to the customer to allow the customer access to 
117.15  the information service.  It is fraud under section 325F.69 to 
117.16  knowingly identify information service charges as telephone 
117.17  charges.  A common carrier is liable for fraud under this 
117.18  subdivision only if it knowingly participates in the 
117.19  misidentification. 
117.20     (b) A bill or the portion of a telephone bill for 
117.21  information services must contain the following language printed 
117.22  in at least ten-point bold type or typewritten in capital 
117.23  letters in a color or shade that readily contrasts with the 
117.24  background: 
117.25     "YOU HAVE THE RIGHT TO DISPUTE CHARGES FOR INFORMATION 
117.26  SERVICE CALLS.  AS A TELEPHONE TELECOMMUNICATIONS SERVICE 
117.27  SUBSCRIBER, YOU ARE NOT LEGALLY RESPONSIBLE FOR INFORMATION 
117.28  SERVICE CHARGES INCURRED BY MINORS OR VULNERABLE ADULTS WITHOUT 
117.29  YOUR CONSENT.  NEITHER A LONG DISTANCE COMPANY NOR YOUR 
117.30  LOCAL TELEPHONE COMPANY TELECOMMUNICATIONS SERVICE PROVIDER MAY 
117.31  DISCONNECT YOUR TELEPHONE SERVICE BECAUSE YOU REFUSE TO PAY AN 
117.32  INFORMATION SERVICE CHARGE." 
117.33  The notice required by this paragraph can be provided in 
117.34  conjunction with other required notices. 
117.35     Subd. 4.  [FRAUDULENT MISREPRESENTATION.] It is fraudulent 
117.36  misrepresentation under section 325F.69 for an information 
118.1   service provider or a provider's agent, including an agent or 
118.2   employee of an entity that provides billing services for an 
118.3   information service provider, to knowingly advise an information 
118.4   service customer or a telephone telecommunications service 
118.5   subscriber, either orally or in writing, that: 
118.6      (1) information service charges not incurred or authorized 
118.7   by a telephone telecommunications service subscriber are the 
118.8   responsibility of the subscriber; 
118.9      (2) parents or guardians of minors or other vulnerable 
118.10  people are responsible for information service charges incurred 
118.11  by the minors or other vulnerable persons; or 
118.12     (3) the availability of telephone service for the 
118.13  subscriber may be affected by failure to pay information service 
118.14  charges not incurred or authorized by the subscriber. 
118.15     Subd. 5.  [ALLOCATION OF PAYMENT OF TELEPHONE BILLS.] The 
118.16  telephone service subscriber shall have (a) A subscriber of 
118.17  essential services, as defined in section 237A.01, subdivision 
118.18  10, has the right to direct partial payments of a telephone bill 
118.19  for bundled telecommunications services, or other services 
118.20  separately itemized on a bill that are not bundled.  Unless 
118.21  otherwise directed by the telephone service subscriber, a 
118.22  telephone company or other telecommunications service provider 
118.23  or its billing entity agent that receives partial payment of a 
118.24  telephone bill containing charges for essential services shall 
118.25  allocate the partial payment first to charges for telephone the 
118.26  essential services, and last then to charges for information 
118.27  services bundled on the bill, or separately itemized.  In 
118.28  determining what portion of a bill for bundled services is to be 
118.29  allocated to essential services, the service provider shall 
118.30  allocate revenue to the amounts charged for the essential 
118.31  services on an unbundled basis. 
118.32     (b) A telecommunications service provider shall not 
118.33  disconnect a subscriber of essential services for nonpayment of 
118.34  nonessential telecommunications service fees. 
118.35     Subd. 6.  [INDEMNITY.] A telephone company or independent 
118.36  telephone company telecommunications service provider has a 
119.1   right of indemnity against anyone who has provided it with false 
119.2   information as to the status of information charges. 
119.3      Subd. 7.  [INVOLUNTARY BLOCKING.] Anyone who has refused to 
119.4   pay for two months of information charge bills or one month of 
119.5   charges in excess of $500 may be blocked from access to 
119.6   information services. 
119.7      Subd. 9.  [CALLER RESPONSIBILITY.] This section does not 
119.8   affect the legal responsibility of the person who places an 
119.9   information service call for the charges for the call. 
119.10     Subd. 10.  [CALLER CODES REGULATED.] Information service 
119.11  providers or their agents and telephone 
119.12  companies telecommunications service providers shall not issue 
119.13  calling card identification codes or personal identification 
119.14  numbers (PIN codes) to consumers over the telephone.  This 
119.15  subdivision does not apply to the issuance of identification 
119.16  codes or personal identification numbers to consumers by a 
119.17  financial institution as defined in United States Code, title 
119.18  18, section 20, or an affiliate or subsidiary of a financial 
119.19  institution. 
119.20     Sec. 19.  Minnesota Statutes 2002, section 325F.693, is 
119.21  amended to read: 
119.22     325F.693 [FRAUDULENT TELEPHONE SERVICES; SLAMMING.] 
119.23     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
119.24  section, a "telephone service subscriber" means a person who 
119.25  contracts with a telephone company telecommunications service 
119.26  provider, as defined in section 237A.01, for telephone services 
119.27  or a telecommunications company for telecommunications services. 
119.28     (b) The definitions contained in chapter 237 237A apply to 
119.29  this section. 
119.30     Subd. 2.  [SLAMMING DEEMED CONSUMER FRAUD.] (a) It is fraud 
119.31  under section 325F.69 to request a change in a telephone service 
119.32  subscriber's local exchange or interexchange carrier without the 
119.33  subscriber's verified consent.  
119.34     (b) A telephone service subscriber may employ the remedies 
119.35  provided in section 237.66 237A.20 for violations of paragraph 
119.36  (a).  Section 8.31 may also be employed to remedy violations of 
120.1   paragraph (a). 
120.2      (c) For the purposes of paragraph (a): 
120.3      (1) the consent of the telephone service subscriber may be 
120.4   verified utilizing any method that is consistent with federal 
120.5   law or regulation; 
120.6      (2) compliance with applicable federal law and regulation, 
120.7   or state law and rule, whichever is more stringent, is a 
120.8   complete defense to an allegation of consumer fraud under 
120.9   paragraph (a); and 
120.10     (3) it is the responsibility of the company, service 
120.11  provider, or carrier requesting a change in a telephone service 
120.12  subscriber's company or carrier telecommunications service 
120.13  provider to verify that the subscriber has authorized the 
120.14  change.  A telephone company or telecommunications carrier 
120.15  providing local exchange service provider, as defined in section 
120.16  237A.01, subdivision 19, who has been requested by 
120.17  another telephone company or telecommunications carrier service 
120.18  provider to process a change in a subscriber's carrier 
120.19  telecommunications service provider is only liable under this 
120.20  section if it knowingly participates in processing a requested 
120.21  change that is unauthorized. 
120.22     Nothing in this section shall be construed to change a 
120.23  telephone company's or telecommunications carrier's service 
120.24  provider's obligations under section 237.66. 
120.25     Sec. 20.  Minnesota Statutes 2002, section 326.242, 
120.26  subdivision 12, is amended to read: 
120.27     Subd. 12.  [EXEMPTIONS FROM LICENSING.] (a) A maintenance 
120.28  electrician who is supervised by the responsible master 
120.29  electrician for a contractor who has contracted with the 
120.30  maintenance electrician's employer to provide services for which 
120.31  a contractor's license is required or by a master electrician or 
120.32  an electrical engineer registered with the board and who is an 
120.33  employee of an employer and is engaged in the maintenance, and 
120.34  repair of electrical equipment, apparatus, and facilities owned 
120.35  or leased by the employer, and performed within the limits of 
120.36  property which is owned or leased and operated and maintained by 
121.1   said employer, shall not be required to hold or obtain a license 
121.2   under sections 326.241 to 326.248.  
121.3      (b) Employees of a licensed electrical or technology 
121.4   systems contractor or other employer where provided with 
121.5   supervision by a master electrician in accordance with 
121.6   subdivision 1, or power limited technician in accordance with 
121.7   subdivision 3d, paragraph (a), clause (1), are not required to 
121.8   hold a license under sections 326.241 to 326.248 for the 
121.9   planning, laying out, installing, altering, and repairing of 
121.10  technology circuits or systems except planning, laying out, or 
121.11  installing: 
121.12     (1) in other than residential dwellings, class 2 or class 3 
121.13  remote control circuits that control circuits or systems other 
121.14  than class 2 or class 3, except circuits that interconnect these 
121.15  systems through communication, alarm, and security systems are 
121.16  exempted from this paragraph; 
121.17     (2) class 2 or class 3 circuits in electrical cabinets, 
121.18  enclosures, or devices containing physically unprotected 
121.19  circuits other than class 2 or class 3; or 
121.20     (3) technology circuits and systems in hazardous classified 
121.21  locations as covered by chapter 5 of the National Electrical 
121.22  Code.  
121.23     (c) Companies and their employees that plan, lay out, 
121.24  install, alter, or repair class 2 and class 3 remote control 
121.25  wiring associated with plug or cord and plug connected 
121.26  appliances other than security or fire alarm systems installed 
121.27  in a residential dwelling are not required to hold a license 
121.28  under sections 326.241 to 326.248.  
121.29     (d) Heating, ventilating, air conditioning, and 
121.30  refrigeration contractors and their employees are not required 
121.31  to hold or obtain a license under sections 326.241 to 326.248 
121.32  when performing heating, ventilating, air conditioning, or 
121.33  refrigeration work as described in section 326.245.  
121.34     (e) Employees of any electric, communications, or railway 
121.35  utility, cable communications company as defined in section 
121.36  238.02, or a telephone company telecommunications service 
122.1   provider as defined under section 237.01 237A.01 or its 
122.2   employees, or of any independent contractor performing work on 
122.3   behalf of any such utility, cable communications company, or 
122.4   telephone company telecommunications service provider, shall not 
122.5   be required to hold a license under sections 326.241 to 326.248: 
122.6      (1) while performing work on installations, materials, or 
122.7   equipment which are owned or leased, and operated and maintained 
122.8   by such utility, cable communications company, or telephone 
122.9   company telecommunications service provider in the exercise of 
122.10  its utility, antenna, or telephone telecommunications function, 
122.11  and which 
122.12     (i) are used exclusively for the generation, 
122.13  transformation, distribution, transmission, or metering of 
122.14  electric current, or the operation of railway signals, or the 
122.15  transmission of intelligence and do not have as a principal 
122.16  function the consumption or use of electric current or provided 
122.17  service by or for the benefit of any person other than such 
122.18  utility, cable communications company, or telephone 
122.19  company telecommunications service provider, and 
122.20     (ii) are generally accessible only to employees of such 
122.21  utility, cable communications company, or telephone company 
122.22  telecommunications service provider or persons acting under its 
122.23  control or direction, and 
122.24     (iii) are not on the load side of the service point or 
122.25  point of entrance; 
122.26     (2) while performing work on installations, materials, or 
122.27  equipment which are a part of the street lighting operations of 
122.28  such utility; or 
122.29     (3) while installing or performing work on outdoor area 
122.30  lights which are directly connected to a utility's distribution 
122.31  system and located upon the utility's distribution poles, and 
122.32  which are generally accessible only to employees of such utility 
122.33  or persons acting under its control or direction.  
122.34     (f) An owner shall not be required to hold or obtain a 
122.35  license under sections 326.241 to 326.248. 
122.36     Sec. 21.  Minnesota Statutes 2002, section 403.09, is 
123.1   amended to read: 
123.2      403.09 [ENFORCEMENT.] 
123.3      Subdivision 1.  [DEPARTMENT AUTHORITY.] At the request of 
123.4   the department of administration, the attorney general may 
123.5   commence proceedings in the district court against any person or 
123.6   public or private body to enforce the provisions of this chapter.
123.7      Subd. 2.  [COMMISSION AUTHORITY.] At the request of the 
123.8   public utilities commission, the attorney general may commence 
123.9   proceedings before the district court pursuant to section 237.27 
123.10  237A.32, against any wire line telecommunications service 
123.11  provider that refuses to comply with this chapter. 
123.12     Subd. 3.  [DISPUTE RESOLUTION.] Disputes between parties 
123.13  must be resolved pursuant to section 403.01, subdivision 7, 
123.14  paragraph (d). 
123.15     Sec. 22.  Minnesota Statutes 2002, section 403.11, 
123.16  subdivision 1, is amended to read: 
123.17     Subdivision 1.  [EMERGENCY TELECOMMUNICATIONS SERVICE FEE.] 
123.18  (a) Each customer of a wireless or wire line local 
123.19  telecommunications service provider, as defined under section 
123.20  237A.01, that furnishes service capable of originating a 911 
123.21  emergency telephone call is assessed a fee to cover the costs of 
123.22  ongoing maintenance and related improvements for trunking and 
123.23  central office switching equipment for 911 emergency 
123.24  telecommunications service, plus administrative and staffing 
123.25  costs of the department of administration related to managing 
123.26  the 911 emergency telecommunications service program.  Recurring 
123.27  charges by a wire line local telecommunications service 
123.28  provider, as defined under section 237A.01, for updating the 
123.29  information required by section 403.07, subdivision 3, must be 
123.30  paid by the commissioner of administration if the wire line 
123.31  local telecommunications service provider is included in an 
123.32  approved 911 plan and the charges are made pursuant to tariff, 
123.33  price list, or contract.  The commissioner of administration 
123.34  shall transfer an amount equal to two cents a month from the fee 
123.35  assessed under this section on wireless telecommunications 
123.36  services to the commissioner of public safety for the purpose of 
124.1   offsetting the costs, including administrative and staffing 
124.2   costs, incurred by the state patrol division of the department 
124.3   of public safety in handling 911 emergency calls made from 
124.4   wireless phones.  
124.5      (b) Money remaining in the 911 emergency telecommunications 
124.6   service account after all other obligations are paid must not 
124.7   cancel and is carried forward to subsequent years and may be 
124.8   appropriated from time to time to the commissioner of 
124.9   administration to provide financial assistance to counties for 
124.10  the improvement of local emergency telecommunications services.  
124.11  The improvements may include providing access to 911 service for 
124.12  local telecommunications service subscribers currently without 
124.13  access and upgrading existing 911 service to include automatic 
124.14  number identification, local location identification, automatic 
124.15  location identification, and other improvements specified in 
124.16  revised county 911 plans approved by the department. 
124.17     (c) The fee may not be less than eight cents nor more than 
124.18  33 cents a month for each customer access line or other basic 
124.19  access service, including trunk equivalents as designated by the 
124.20  public utilities commission for access charge purposes and 
124.21  including wireless telecommunications services.  With the 
124.22  approval of the commissioner of finance, the commissioner of 
124.23  administration shall establish the amount of the fee within the 
124.24  limits specified and inform the companies and carriers of the 
124.25  amount to be collected.  The commissioner shall provide 
124.26  companies and carriers a minimum of 45 days' notice of each fee 
124.27  change.  For fiscal year 2003, the commissioner of 
124.28  administration shall provide a minimum of 35 days' notice of 
124.29  each fee change.  The fee must be the same for all customers.  
124.30     (d) The fee must be collected by each wireless or wire line 
124.31  telecommunications service provider subject to the fee.  Fees 
124.32  are payable to and must be submitted to the commissioner of 
124.33  administration monthly before the 25th of each month following 
124.34  the month of collection, except that fees may be submitted 
124.35  quarterly if less than $250 a month is due, or annually if less 
124.36  than $25 a month is due.  Receipts must be deposited in the 
125.1   state treasury and credited to a 911 emergency 
125.2   telecommunications service account in the special revenue fund.  
125.3   The money in the account may only be used for 911 
125.4   telecommunications services as provided in paragraph (a). 
125.5      (e) This subdivision does not apply to customers of 
125.6   interexchange carriers an intrastate long distance service 
125.7   provider as defined in section 237A.01. 
125.8      (f) The installation and recurring charges for integrating 
125.9   wireless 911 calls into enhanced 911 systems must be paid by the 
125.10  commissioner if the 911 service provider is included in the 
125.11  statewide design plan and the charges are made pursuant to 
125.12  tariff, price list, or contract. 
125.13     Sec. 23.  Minnesota Statutes 2002, section 412.014, is 
125.14  amended to read: 
125.15     412.014 [POWER TO OPERATE TELEPHONE LINES.] 
125.16     Any statutory city heretofore or hereafter incorporated, in 
125.17  the territory of which previous to such incorporation telephone 
125.18  lines have been constructed and operated by a town as authorized 
125.19  by sections 237.33 to 237.40 before the effective date of this 
125.20  act, is hereby authorized to continue to operate such telephone 
125.21  lines and the city shall have all the powers granted to towns 
125.22  and the council shall have all of the powers granted to boards 
125.23  of supervisors under former sections 237.33 to 237.40.  
125.24     Sec. 24.  Minnesota Statutes 2002, section 471.425, 
125.25  subdivision 5, is amended to read: 
125.26     Subd. 5.  [APPLICABILITY.] This section applies to all 
125.27  goods, leases and rents, and contracts for services, 
125.28  construction, repair and remodeling.  Purchases from or 
125.29  contracts for service with a public utility as defined in 
125.30  section 216B.02 or a telephone company telecommunications 
125.31  service provider as defined in section 237.01 237A.01 that has 
125.32  on file with the public utilities commission an approved 
125.33  practice regarding late fees are not subject to this section. 
125.34     Sec. 25.  Minnesota Statutes 2002, section 473.129, 
125.35  subdivision 6, is amended to read: 
125.36     Subd. 6.  [ON METRO AGENCIES.] (a) The metropolitan council 
126.1   shall appoint from its membership a member to serve with each 
126.2   metropolitan agency.  Each member of the metropolitan council so 
126.3   appointed on each of such agencies shall serve without a vote. 
126.4      (b) The metropolitan council shall also appoint individuals 
126.5   to the governing body of the cable communications metropolitan 
126.6   interconnected regional channel entity under section 238.43, 
126.7   subdivision 5 237A.79. 
126.8      Sec. 26.  Minnesota Statutes 2002, section 609.52, 
126.9   subdivision 2, is amended to read: 
126.10     Subd. 2.  [ACTS CONSTITUTING THEFT.] Whoever does any of 
126.11  the following commits theft and may be sentenced as provided in 
126.12  subdivision 3: 
126.13     (1) intentionally and without claim of right takes, uses, 
126.14  transfers, conceals or retains possession of movable property of 
126.15  another without the other's consent and with intent to deprive 
126.16  the owner permanently of possession of the property; or 
126.17     (2) having a legal interest in movable property, 
126.18  intentionally and without consent, takes the property out of the 
126.19  possession of a pledgee or other person having a superior right 
126.20  of possession, with intent thereby to deprive the pledgee or 
126.21  other person permanently of the possession of the property; or 
126.22     (3) obtains for the actor or another the possession, 
126.23  custody, or title to property of or performance of services by a 
126.24  third person by intentionally deceiving the third person with a 
126.25  false representation which is known to be false, made with 
126.26  intent to defraud, and which does defraud the person to whom it 
126.27  is made.  "False representation" includes without limitation: 
126.28     (i) the issuance of a check, draft, or order for the 
126.29  payment of money, except a forged check as defined in section 
126.30  609.631, or the delivery of property knowing that the actor is 
126.31  not entitled to draw upon the drawee therefor or to order the 
126.32  payment or delivery thereof; or 
126.33     (ii) a promise made with intent not to perform.  Failure to 
126.34  perform is not evidence of intent not to perform unless 
126.35  corroborated by other substantial evidence; or 
126.36     (iii) the preparation or filing of a claim for 
127.1   reimbursement, a rate application, or a cost report used to 
127.2   establish a rate or claim for payment for medical care provided 
127.3   to a recipient of medical assistance under chapter 256B, which 
127.4   intentionally and falsely states the costs of or actual services 
127.5   provided by a vendor of medical care; or 
127.6      (iv) the preparation or filing of a claim for reimbursement 
127.7   for providing treatment or supplies required to be furnished to 
127.8   an employee under section 176.135 which intentionally and 
127.9   falsely states the costs of or actual treatment or supplies 
127.10  provided; or 
127.11     (v) the preparation or filing of a claim for reimbursement 
127.12  for providing treatment or supplies required to be furnished to 
127.13  an employee under section 176.135 for treatment or supplies that 
127.14  the provider knew were medically unnecessary, inappropriate, or 
127.15  excessive; or 
127.16     (4) by swindling, whether by artifice, trick, device, or 
127.17  any other means, obtains property or services from another 
127.18  person; or 
127.19     (5) intentionally commits any of the acts listed in this 
127.20  subdivision but with intent to exercise temporary control only 
127.21  and: 
127.22     (i) the control exercised manifests an indifference to the 
127.23  rights of the owner or the restoration of the property to the 
127.24  owner; or 
127.25     (ii) the actor pledges or otherwise attempts to subject the 
127.26  property to an adverse claim; or 
127.27     (iii) the actor intends to restore the property only on 
127.28  condition that the owner pay a reward or buy back or make other 
127.29  compensation; or 
127.30     (6) finds lost property and, knowing or having reasonable 
127.31  means of ascertaining the true owner, appropriates it to the 
127.32  finder's own use or to that of another not entitled thereto 
127.33  without first having made reasonable effort to find the owner 
127.34  and offer and surrender the property to the owner; or 
127.35     (7) intentionally obtains property or services, offered 
127.36  upon the deposit of a sum of money or tokens in a coin or token 
128.1   operated machine or other receptacle, without making the 
128.2   required deposit or otherwise obtaining the consent of the 
128.3   owner; or 
128.4      (8) intentionally and without claim of right converts any 
128.5   article representing a trade secret, knowing it to be such, to 
128.6   the actor's own use or that of another person or makes a copy of 
128.7   an article representing a trade secret, knowing it to be such, 
128.8   and intentionally and without claim of right converts the same 
128.9   to the actor's own use or that of another person.  It shall be a 
128.10  complete defense to any prosecution under this clause for the 
128.11  defendant to show that information comprising the trade secret 
128.12  was rightfully known or available to the defendant from a source 
128.13  other than the owner of the trade secret; or 
128.14     (9) leases or rents personal property under a written 
128.15  instrument and who: 
128.16     (i) with intent to place the property beyond the control of 
128.17  the lessor conceals or aids or abets the concealment of the 
128.18  property or any part thereof; or 
128.19     (ii) sells, conveys, or encumbers the property or any part 
128.20  thereof without the written consent of the lessor, without 
128.21  informing the person to whom the lessee sells, conveys, or 
128.22  encumbers that the same is subject to such lease or rental 
128.23  contract with intent to deprive the lessor of possession 
128.24  thereof; or 
128.25     (iii) does not return the property to the lessor at the end 
128.26  of the lease or rental term, plus agreed upon extensions, with 
128.27  intent to wrongfully deprive the lessor of possession of the 
128.28  property; or 
128.29     (iv) returns the property to the lessor at the end of the 
128.30  lease or rental term, plus agreed upon extensions, but does not 
128.31  pay the lease or rental charges agreed upon in the written 
128.32  instrument, with intent to wrongfully deprive the lessor of the 
128.33  agreed upon charges.  
128.34  For the purposes of items (iii) and (iv), the value of the 
128.35  property must be at least $100. 
128.36  Evidence that a lessee used a false, fictitious, or not current 
129.1   name, address, or place of employment in obtaining the property 
129.2   or fails or refuses to return the property or pay the rental 
129.3   contract charges to lessor within five days after written demand 
129.4   for the return has been served personally in the manner provided 
129.5   for service of process of a civil action or sent by certified 
129.6   mail to the last known address of the lessee, whichever shall 
129.7   occur later, shall be evidence of intent to violate this 
129.8   clause.  Service by certified mail shall be deemed to be 
129.9   complete upon deposit in the United States mail of such demand, 
129.10  postpaid and addressed to the person at the address for the 
129.11  person set forth in the lease or rental agreement, or, in the 
129.12  absence of the address, to the person's last known place of 
129.13  residence; or 
129.14     (10) alters, removes, or obliterates numbers or symbols 
129.15  placed on movable property for purpose of identification by the 
129.16  owner or person who has legal custody or right to possession 
129.17  thereof with the intent to prevent identification, if the person 
129.18  who alters, removes, or obliterates the numbers or symbols is 
129.19  not the owner and does not have the permission of the owner to 
129.20  make the alteration, removal, or obliteration; or 
129.21     (11) with the intent to prevent the identification of 
129.22  property involved, so as to deprive the rightful owner of 
129.23  possession thereof, alters or removes any permanent serial 
129.24  number, permanent distinguishing number or manufacturer's 
129.25  identification number on personal property or possesses, sells 
129.26  or buys any personal property knowing or having reason to know 
129.27  that the permanent serial number, permanent distinguishing 
129.28  number or manufacturer's identification number has been removed 
129.29  or altered; or 
129.30     (12) intentionally deprives another of a lawful charge for 
129.31  cable television service by: 
129.32     (i) making or using or attempting to make or use an 
129.33  unauthorized external connection outside the individual dwelling 
129.34  unit whether physical, electrical, acoustical, inductive, or 
129.35  other connection; or by 
129.36     (ii) attaching any unauthorized device to any cable, wire, 
130.1   microwave, or other component of a licensed cable communications 
130.2   system as defined in of a cable service provider regulated under 
130.3   chapter 238 237A.  Nothing herein shall be construed to prohibit 
130.4   the electronic video rerecording of program material transmitted 
130.5   on the cable communications system by a subscriber for fair use 
130.6   as defined by Public Law Number 94-553, section 107; or 
130.7      (13) except as provided in paragraphs (12) and (14), 
130.8   obtains the services of another with the intention of receiving 
130.9   those services without making the agreed or reasonably expected 
130.10  payment of money or other consideration; or 
130.11     (14) intentionally deprives another of a lawful charge for 
130.12  telecommunications service by:  
130.13     (i) making, using, or attempting to make or use an 
130.14  unauthorized connection whether physical, electrical, by wire, 
130.15  microwave, radio, or other means to a component of a local 
130.16  telecommunication system of a telecommunications service 
130.17  provider, as provided in chapter 237 237A; or 
130.18     (ii) attaching an unauthorized device to a cable, wire, 
130.19  microwave, radio, or other component of a local 
130.20  telecommunication system of a telecommunications system 
130.21  provider, as provided in chapter 237 237A.  
130.22     The existence of an unauthorized connection is prima facie 
130.23  evidence that the occupier of the premises:  
130.24     (i) made or was aware of the connection; and 
130.25     (ii) was aware that the connection was unauthorized; or 
130.26     (15) with intent to defraud, diverts corporate property 
130.27  other than in accordance with general business purposes or for 
130.28  purposes other than those specified in the corporation's 
130.29  articles of incorporation; or 
130.30     (16) with intent to defraud, authorizes or causes a 
130.31  corporation to make a distribution in violation of section 
130.32  302A.551, or any other state law in conformity with it; or 
130.33     (17) takes or drives a motor vehicle without the consent of 
130.34  the owner or an authorized agent of the owner, knowing or having 
130.35  reason to know that the owner or an authorized agent of the 
130.36  owner did not give consent. 
131.1      Sec. 27.  Minnesota Statutes 2002, section 609.80, 
131.2   subdivision 1, is amended to read: 
131.3      Subdivision 1.  [MISDEMEANOR.] Whoever does any of the 
131.4   following is guilty of a misdemeanor: 
131.5      (1) intentionally and with the purpose of making or aiding 
131.6   in an unauthorized connection as prohibited by section 609.52, 
131.7   subdivision 2, clause (12), to a licensed cable communications 
131.8   system as defined in of a cable service provider regulated under 
131.9   chapter 238 237A lends, offers, or gives to another any 
131.10  instrument, apparatus, equipment, or device designed to make an 
131.11  unauthorized connection, or plan, specification or instruction 
131.12  for making an unauthorized connection, without receiving or 
131.13  seeking to receive money or any other thing of value in 
131.14  exchange; or 
131.15     (2) intentionally tampers with, removes or injures any 
131.16  cable, wire, or other component of a licensed cable 
131.17  communications system as defined in of a cable service provider 
131.18  regulated under chapter 238 237A; or 
131.19     (3) intentionally and without claim of right interrupts a 
131.20  service of a licensed cable communications system service 
131.21  provider as defined in chapter 238 237A. 
131.22     Sec. 28.  Minnesota Statutes 2002, section 609.80, 
131.23  subdivision 2, is amended to read: 
131.24     Subd. 2.  [COMMERCIAL ACTIVITY; FELONY.] Whoever sells or 
131.25  rents, or offers or advertises for sale or rental, any 
131.26  instrument, apparatus, equipment, or device designed to make an 
131.27  unauthorized connection as prohibited by section 609.52, 
131.28  subdivision 2, clause (12), to a licensed cable communications 
131.29  system as defined in of a cable service provider regulated under 
131.30  chapter 238 237A, or a plan, specification, or instructions for 
131.31  making an unauthorized connection, is guilty of a felony and may 
131.32  be sentenced to not more than three years of imprisonment or a 
131.33  fine of not more than $5,000, or both. 
131.34     Sec. 29.  Minnesota Statutes 2002, section 609.892, 
131.35  subdivision 1, is amended to read: 
131.36     Subdivision 1.  [APPLICABILITY.] The definitions in this 
132.1   section apply to sections 237.73, 609.892, and 609.893. 
132.2                              ARTICLE 10 
132.3                         TECHNICAL PROVISIONS
132.4      Section 1.  Minnesota Statutes 2002, section 13.679, is 
132.5   amended by adding a subdivision to read: 
132.6      Subd. 3.  [DATA ON COMPETITIVE MARKET SHARE.] A 
132.7   telecommunications service provider's data on competitive market 
132.8   share included in a complaint and marked "trade secret" are 
132.9   classified as nonpublic data. 
132.10     Sec. 2.  [STUDY OF CABLE AND TELECOMMUNICATIONS 
132.11  REGULATION.] 
132.12     The department of commerce shall conduct a study on cable 
132.13  and telecommunications regulation.  The study shall compare the 
132.14  federal, state, and local regulatory structures applicable to 
132.15  cable service providers, wireless telecommunications service 
132.16  providers, and wireline telecommunications service providers.  
132.17  The department shall issue a report to the legislature by 
132.18  January 1, 2003, containing its findings and recommendations.  
132.19  Specifically, the department shall determine whether elimination 
132.20  of regulatory distinctions between service providers using 
132.21  different technology platforms is legally possible within the 
132.22  context of the federal regulatory framework.  The report should 
132.23  also recommend whether such regulatory distinctions should be 
132.24  made, as a matter of public policy. 
132.25     Sec. 3.  [REVISOR'S INSTRUCTION.] 
132.26     (a) If a provision of Minnesota Statutes, chapter 237, is 
132.27  further amended in the 2003 regular legislative session and this 
132.28  act is enacted by the 2003 regular legislative session, the 
132.29  revisor of statutes shall codify the amendment consistent with 
132.30  the recodification of Minnesota Statutes, chapter 237, by this 
132.31  act notwithstanding any law to the contrary. 
132.32     (b) The revisor shall make any necessary cross-reference 
132.33  changes in Minnesota Statutes and Minnesota Rules in a manner 
132.34  consistent with this recodification. 
132.35     (c) The revisor shall publish the statutory derivations of 
132.36  the laws that are repealed and recodified in this act in Laws of 
133.1   Minnesota. 
133.2      (d) Wherever found in a provision of Minnesota Statutes not 
133.3   amended or added by this act, the revisor shall make the 
133.4   following changes to the words and terms indicated, as well as 
133.5   equivalent changes to their plural forms: 
133.6      (1) Change the word "telephone" to "telecommunications" 
133.7   when it modifies or refers to telephone advertising, telephone 
133.8   expense, telephone charge, telephone line, telephone hot line, 
133.9   interactive telephone-customer service terminal, or telephone 
133.10  message. 
133.11     (2) Change the terms "telephone company" and 
133.12  "telecommunications carrier" to "telecommunications service 
133.13  provider," except with respect to bond obligations, debt 
133.14  securities, and similar types of legal obligations or 
133.15  indebtedness. 
133.16     (3) Change "telecommunications access for 
133.17  communication-impaired persons" to "telecommunications access 
133.18  Minnesota." 
133.19     (4) Change "telephone assistance plan" to 
133.20  "telecommunications assistance program." 
133.21     (5) Do not change the following terms or their plural forms:
133.22  "telephone" when standing alone as a noun, "telephone use," 
133.23  "telephone conversation," "rural telephone cooperative," 
133.24  "telephone notification," "telephone review," "telephone call," 
133.25  "phone," or "telephone solicitation." 
133.26     Sec. 4.  [REPEALER.] 
133.27     Subdivision 1.  [STATUTES.] Minnesota Statutes 2002, 
133.28  sections 237.01; 237.011; 237.02; 237.03; 237.035; 237.036; 
133.29  237.04; 237.05; 237.06; 237.065; 237.066; 237.067; 237.068; 
133.30  237.069; 237.07; 237.071; 237.072; 237.075; 237.076; 237.081; 
133.31  237.082; 237.09; 237.10; 237.101; 237.11; 237.115; 237.12; 
133.32  237.121; 237.14; 237.15; 237.16; 237.162; 237.163; 237.164; 
133.33  237.17; 237.18; 237.19; 237.20; 237.21; 237.22; 237.23; 237.231; 
133.34  237.24; 237.25; 237.26; 237.27; 237.28; 237.295; 237.30; 237.33; 
133.35  237.34; 237.35; 237.36; 237.37; 237.38; 237.39; 237.40; 237.44; 
133.36  237.45; 237.46; 237.461; 237.462; 237.47; 237.49; 237.50; 
134.1   237.51, subdivisions 1, 5, and 5a; 237.52; 237.53; 237.54; 
134.2   237.55; 237.56; 237.57; 237.59; 237.60; 237.61; 237.626; 237.63; 
134.3   237.64; 237.65; 237.66; 237.661; 237.662; 237.663; 237.67; 
134.4   237.68; 237.69; 237.70, subdivisions 1, 2, 3, 4a, 5, 6, and 7; 
134.5   237.701; 237.71; 237.711; 237.73; 237.74; 237.75; 237.76; 
134.6   237.761; 237.762; 237.763; 237.764; 237.765; 237.766; 237.767; 
134.7   237.768; 237.769; 237.770; 237.771; 237.772; 237.773; 237.774; 
134.8   237.775; 237.79; 237.80; 237.81; 238.01; 238.02; 238.03; 238.08; 
134.9   238.081; 238.082; 238.083; 238.084; 238.086; 238.11; 238.12; 
134.10  238.15; 238.16; 238.17; 238.18; 238.22; 238.23; 238.24; 238.241; 
134.11  238.242; 238.25; 238.26; 238.27; 238.35; 238.36; 238.37; 238.38; 
134.12  238.39; 238.40; 238.41; 238.42; and 238.43, are repealed.  
134.13     Subd. 2.  [RULES.] Minnesota Rules, parts 7810.8715; 
134.14  7810.8720; 7810.8725; 7810.8730; 7810.8735; 7810.8760; 
134.15  7810.8805; 7810.8810; 7810.8815; 7811.0050; 7811.0100; 
134.16  7811.0150; 7811.0200; 7811.0300; 7811.0350; 7811.0400; 
134.17  7811.0500; 7811.0550; 7811.0600; 7811.0700; 7811.0800; 
134.18  7811.0900; 7811.1000; 7811.1050; 7811.1100; 7811.1200; 
134.19  7811.1300; 7811.1400; 7811.1500; 7811.1600; 7811.1700; 
134.20  7811.1800; 7811.1900; 7811.2000; 7811.2100; 7811.2300; 
134.21  7812.0050; 7812.0100, subparts 22, 23, 31, 32, 35, 45, and 47; 
134.22  7812.0200, subpart 2; 7812.0300, subparts 1, 2, 3, and 4; 
134.23  7812.0350; 7812.0400; 7812.0500; 7812.1300; 7812.1400; 
134.24  7815.0100; 7815.0200; 7815.0300; 7815.0400; 7815.0500; 
134.25  7815.0600; 7817.0100; 7817.0200; 7817.0300; 7817.0400; 
134.26  7817.0500; 7817.0600; 7817.0700; 7817.0800; 7817.0900; and 
134.27  7817.1000, are repealed.