1.1 	A bill for an act
1.2 	relating to telecommunications; modifying rate case procedures; standardizing 
1.3 	consumer billing practices; requiring intrastate call completion; simplifying 
1.4 	certification procedures; removing antiquated or obsolete provisions;amending 
1.5 	Minnesota Statutes 2014, sections 237.01, by adding subdivisions; 237.02; 
1.6 	237.035; 237.075, subdivision 1, by adding a subdivision; 237.081, subdivisions 
1.7 	1, 2, 4; 237.12, by adding a subdivision; proposing coding for new law in 
1.8 	Minnesota Statutes, chapter 237; repealing Minnesota Statutes 2014, sections 
1.9 	237.03; 237.072; 237.075, subdivisions 2, 3, 6, 9; 237.21; 237.22; 237.57; 
1.10 	237.59, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, 10; 237.64, subdivision 2; 237.775; 
1.11 	237.80, subdivision 2.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2014, section 237.01, is amended by adding a 
1.14 	subdivision to read:
1.15 		Subd. 1a.Basic services. "Basic services" means (1) telecommunications services 
1.16 	provided to residential customers and to business customers subscribing to three or fewer 
1.17 	business lines, and (2) switched access services.

1.18 	Sec. 2. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision 
1.19 	to read:
1.20 		Subd. 3a.Local service. "Local service" means wire-line access to 
1.21 	telecommunications service enabling the customer to originate calls to, and receive calls 
1.22 	from, telephone numbers assigned under the North American Numbering Plan. Local 
1.23 	service does not include interexchange service.

1.24 	Sec. 3. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision 
1.25 	to read:
2.1 		Subd. 5a.Switched access rates. "Switched access rates" means any charge by a 
2.2 	local service provider assessed to an interexchange carrier for the ability to originate or 
2.3 	terminate interexchange telecommunications traffic to or from the called party's premises.

2.4 	Sec. 4. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision 
2.5 	to read:
2.6 		Subd. 5b.Telecommunications. "Telecommunications" means the transmission  of 
2.7 	information of the user's choosing between or among points specified by the user without 
2.8 	change in the form or content of the information as sent and received.

2.9 	Sec. 5. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision 
2.10 	to read:
2.11 		Subd. 6a.Telecommunications service provider. "Telecommunications service 
2.12 	provider" means a provider of wire-line service, packet-based service, data service, or any 
2.13 	other telecommunications service that provides a customer with the ability to originate 
2.14 	or terminate calls using the North American Numbering Plan, including but not limited 
2.15 	to telephone companies and telecommunications carriers.

2.16 	Sec. 6. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision 
2.17 	to read:
2.18 		Subd. 6b.Telecommunications services. "Telecommunications services" means 
2.19 	the offering of telecommunications for a fee directly to the public or to such classes of 
2.20 	users as to be effectively available to the public regardless of the facilities used.

2.21 	Sec. 7. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision 
2.22 	to read:
2.23 		Subd. 9.Intermediate provider. "Intermediate provider" means any entity that 
2.24 	carries or processes telecommunications traffic that traverses or will traverse the public 
2.25 	switched network at any point insofar as that entity neither originates nor terminates the 
2.26 	traffic, but is not certified in Minnesota to provide retail telecommunications service 
2.27 	to the public.

2.28 	Sec. 8. Minnesota Statutes 2014, section 237.02, is amended to read:
2.29 	237.02 GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
2.30 	DEFINITIONS.
3.1 	The Department of Commerce and the Public Utilities Commission are hereby 
3.2 	vested with the same jurisdiction and supervisory power over telephone and companies,
3.3 	telecommunications companies carriers, telecommunications service providers, and 
3.4 	intermediate providers doing business in this state as the commission's predecessor, the 
3.5 	railroad and warehouse commission, had over railroad and express companies provided 
3.6 	in this chapter. The definitions set forth in sections 216A.02 and 216B.02 also apply 
3.7 	to this chapter.

3.8 	Sec. 9. Minnesota Statutes 2014, section 237.035, is amended to read:
3.9 	237.035 TELECOMMUNICATIONS CARRIER EXEMPTION.
3.10 	(a) Telecommunications carriers are subject to regulation under this chapter only to 
3.11 	the extent required under paragraphs (b) to (e).
3.12 	(b) Telecommunications carriers shall comply with sections 237.121 and 237.74.
3.13 	(c) Telecommunications carriers shall comply with section 237.16, subdivisions 
3.14 	8 and 9.
3.15 	(d) To the extent a telecommunications carrier offers local service, it shall obtain a 
3.16 	certificate under section 237.16 for that local service.
3.17 	(e) In addition, a telecommunications carrier's local service is subject to this chapter 
3.18 	except that:.
3.19 	(1) a telecommunications carrier is not subject to rate-of-return or earnings 
3.20 	investigations under section 237.075 or 237.081; and
3.21 	(2) a telecommunications carrier is not subject to section 237.22.

3.22 	Sec. 10. Minnesota Statutes 2014, section 237.075, subdivision 1, is amended to read:
3.23 		Subdivision 1.Notice. Unless the commission otherwise orders, no telephone 
3.24 	company shall change increase a rate which has been duly established under this chapter,
3.25 	for basic services  except upon 60 days' notice to thecustomers, the department, and the 
3.26 	commission. The notice shall include statements of facts, expert opinions, substantiating 
3.27 	documents, and exhibits, supporting the change requested, and state the change proposed 
3.28 	to be made in the rates then in force and the time when the modified rates will go into 
3.29 	effect. The filing telephone company shall give written notice, as approved by the 
3.30 	commission, of the proposed change to the governing body of each municipality and 
3.31 	county in the area affected. All proposed changes shall be shown by filing new schedules 
3.32 	or shall be plainly indicated upon schedules on file and in force at the time. A telephone 
3.33 	company may give notice to its customers by the same means used to bill the customer, 
3.34 	including by e-mail or other electronic means, or by any other reasonable means that 
4.1 	provides actual notice to the customer. Customer notices for increases of intrastate rates 
4.2 	must include as a heading "NOTICE OF PRICE INCREASE." All proposed changes shall 
4.3 	be shown on the telephone company's tariff. Any proposed increase to switched access 
4.4 	rates shall include an explanation stating how the increase is consistent with federal law. 
4.5 	All purchasers of switched access shall be charged the rate listed in the provider's price list 
4.6 	and shall pay for switched access at that rate.

4.7 	Sec. 11. Minnesota Statutes 2014, section 237.075, is amended by adding a subdivision 
4.8 	to read:
4.9 		Subd. 3a.Rate increases. No telecommunications provider shall increase rates for 
4.10 	basic services until after January 1, 2016. Thereafter, rates for basic service shall not be 
4.11 	increased by more than ten percent per year, unless the commission finds that exigent 
4.12 	circumstances justify a greater increase.

4.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.14 	Sec. 12. [237.077] SCHEDULES; TARIFFS.
4.15 		Subdivision 1.Filing requirements. Except as set forth in this section, 
4.16 	telecommunications service providers are not required to maintain or file any rate 
4.17 	schedule, tariff, contract, or agreement with the commission.
4.18 		Subd. 2.General provisions applicable to all tariffs. Any tariff filed with the 
4.19 	commission in accordance with this chapter must include all terms, conditions, rates, and 
4.20 	charges that apply to the services specified in the tariff.
4.21 		Subd. 3.Tariff. (a) Any telecommunications service provider that offers intrastate 
4.22 	switched access services shall maintain on file with the commission a tariff containing 
4.23 	the terms, conditions, rates, and charges the telecommunications service provider has 
4.24 	established for intrastate switched access services. Filings under this section are governed 
4.25 	by chapter 14.
4.26 	(b) Every local exchange carrier that provides basic telecommunications service 
4.27 	shall maintain on file with the commission a tariff containing the terms, conditions, rates, 
4.28 	and charges for that service.
4.29 	(c) Subject to any applicable notice to end users required by this chapter, a telephone 
4.30 	company tariff becomes effective 60 days after it is filed with the commission.
4.31 	(d) A person who objects to a tariff shall file an objection within 30 days of the filing 
4.32 	of the tariff. The person filing the tariff may reply to the objection within five days of 
4.33 	the filing of the objection.
5.1 	(e) The commission shall review the tariff, the objection, and the reply within 60 
5.2 	days of the filing of the tariff and shall issue an order approving the tariff or order that 
5.3 	a contested case hearing be conducted under chapter 14.

5.4 	Sec. 13. Minnesota Statutes 2014, section 237.081, subdivision 1, is amended to read:
5.5 		Subdivision 1.Commission investigation. Whenever the commission believes 
5.6 	that a service is inadequate or cannot be obtained or that an investigation of any matter 
5.7 	relating to any telephone service should for any reason be made, it may on its own motion 
5.8 	investigate the service or matter with or without notice, except that the commission shall 
5.9 	give notice to a telephone company before it investigates the level of rates for basic 
5.10 	services charged by the company.

5.11 	Sec. 14. Minnesota Statutes 2014, section 237.081, subdivision 2, is amended to read:
5.12 		Subd. 2.Procedure after investigation. (a) If, after making an investigation under 
5.13 	subdivision 1 or 1a, the commission finds that a significant factual issue raised has not 
5.14 	been resolved to its satisfaction, the commission shall follow the appropriate procedure 
5.15 	prescribed by this subdivision.
5.16 	(b) For an investigation concerning the reasonableness of the rates for noncompetitive 
5.17 	services of a telephone company whose general revenue requirement is determined under 
5.18 	section 237.075, the commission shall order the company to initiate a rate proceeding in 
5.19 	accordance with section 237.075. The commission shall allow the company at least 120 
5.20 	days after the date of the commission's order to initiate the proceeding.
5.21 	(c) For other investigations, the commission shall order that a contested case hearing 
5.22 	be conducted under chapter 14 unless the complainant, the telephone company, and the 
5.23 	commission agree that an expedited hearing under section 237.61 is appropriate, or unless 
5.24 	the commission finds that no significant factual issues are in dispute.

5.25 	Sec. 15. Minnesota Statutes 2014, section 237.081, subdivision 4, is amended to read:
5.26 		Subd. 4.Establishment of rate and price. Whenever the commission finds, 
5.27 	after a proceeding under subdivision 2, that (1) a service that can be reasonably 
5.28 	demanded cannot be obtained, (2) that any rate, toll, tariff, charge, or schedule, or any 
5.29 	regulation, measurement, practice, act, or omission affecting or relating to the production, 
5.30 	transmission, delivery, or furnishing of telephone service or any service in connection with 
5.31 	telephone service, is in any respect unreasonable, insufficient, or unjustly discriminatory
5.32 	contrary to the requirements of this chapter, or (3) that any service is inadequate, the 
5.33 	commission shall make an order respecting the tariff, regulation, act, omission, practice, 
6.1 	or service that is just and reasonable and, if applicable, shall establish just and reasonable 
6.2 	rates and prices for basic services.

6.3 	Sec. 16. [237.102] CUSTOMER BILLING.
6.4 	(a) Bills to customers from telecommunications service providers shall be rendered 
6.5 	regularly, and shall contain an itemized listing of all charges and the period of time 
6.6 	covered by the billing. Taxes and fees collected and remitted as mandated by law shall be 
6.7 	separately identified, itemized, and distinguished from the service charges on the bill.
6.8 	(b) All bills shall contain an explanation of the charges in plain language. Bills shall 
6.9 	include a company telephone number the customer may contact with billing questions or 
6.10 	concerns. Each bill shall also provide the Public Utility Commission's telephone number.
6.11 	(c) Charges billed to a customer shall not exceed the price stated in any related 
6.12 	offers or advertisements as the regular price for the service, including any fractional 
6.13 	monthly amounts, with the exception of taxes and fees collected and remitted for required 
6.14 	government programs.
6.15 	(d) Any rates, charges, or fees collected by the telecommunications service provider 
6.16 	that are not required to be remitted by state or federal law and that are not included in the 
6.17 	telecommunications service provider's price list shall not be charged to the customer, 
6.18 	unless otherwise approved by the commission.
6.19 	(e) Customers shall not be assessed an additional charge or fee to obtain a paper bill.

6.20 	Sec. 17. Minnesota Statutes 2014, section 237.12, is amended by adding a subdivision 
6.21 	to read:
6.22 		Subd. 5.Discontinuance for nonpayment. (a) Except as otherwise provided in 
6.23 	an interconnection agreement or contract, in the event an interexchange carrier or a local 
6.24 	exchange carrier fails to pay full compensation to a local exchange carrier for services 
6.25 	and a written dispute has not been registered between the companies, the local exchange 
6.26 	carrier may discontinue accepting traffic from the alleged nonpaying carrier after the local 
6.27 	exchange carrier provides to the commission, the department, and the nonpaying carrier 
6.28 	30 days' notice of intent to discontinue service. The notice to the department shall indicate 
6.29 	whether the discontinuance will result in the disruption of service to end users or others 
6.30 	and what steps will be taken, if any, to prevent such disruption.
6.31 	(b) Any person objecting to the discontinuance shall file an objection with the 
6.32 	commission within 30 days of notice of intent to disconnect. If an objection is filed, 
6.33 	the department shall investigate and recommend to the commission whether public 
6.34 	convenience requires continued service to the other carrier and, if so, the recommended 
7.1 	compensation, terms, and conditions of the continuance of service between the companies. 
7.2 	A carrier objecting to the discontinuance must pay all undisputed charges while the 
7.3 	objection is being considered.
7.4 	(c) If no objection is filed within 30 days, the discontinuance shall be deemed 
7.5 	approved and the local exchange carrier may discontinue service.

7.6 	Sec. 18. [237.131] INTRASTATE CALL ROUTING.
7.7 		Subdivision 1.Certain practices prohibited. (a) Telecommunications service 
7.8 	providers and intermediate providers shall not participate in the adoption or perpetuation 
7.9 	of intrastate call routing practices that result in the blocking, restriction, or interference 
7.10 	with the completion of calls to certain telephone exchanges, for the purpose of avoiding the 
7.11 	terminating access rates of those exchanges. All contracts, agreements, or arrangements 
7.12 	with intermediate providers to deliver traffic on behalf of the telecommunications service 
7.13 	provider shall not contain terms that are inconsistent with this section.
7.14 	(b) A telecommunications service provider shall not knowingly contract with an 
7.15 	intermediate provider that is not registered with the commission.
7.16 	(c) For calls that are not completed within ten seconds, the telecommunications 
7.17 	service provider must provide the caller with a message stating the call is being processed. 
7.18 	This requirement applies regardless of whether a ringtone is used by the originating 
7.19 	provider while the call is being processed.
7.20 	(d) Upon learning a call has failed to terminate, the service provider for the customer, 
7.21 	whether for the called or calling customer, shall:
7.22 	(1) determine the reason for the failure;
7.23 	(2) notify the affected called and calling customers; and
7.24 	(3) report to the commission or department that the failure occurred and the actions 
7.25 	taken to correct the cause of the failure.
7.26 	(e) A telecommunications service provider shall be liable under this section and is 
7.27 	subject to section 237.461 for the actions of an intermediate provider used to deliver 
7.28 	traffic on its behalf if:
7.29 	(1) the intermediate provider is an agent, contractor, or subcontractor of the 
7.30 	telecommunications service provider, or is employed by the telecommunications service 
7.31 	provider; and
7.32 	(2) the telecommunications service provider knew or should have known of the 
7.33 	intermediate provider's actions.
8.1 		Subd. 2.Enforcement; commission authority. (a) The commission is authorized 
8.2 	to investigate alleged violations of subdivision 1. Investigations under this subdivision 
8.3 	shall be conducted in a manner consistent with section 237.081.
8.4 	(b) If the commission finds a telecommunications service provider has violated 
8.5 	subdivision 1, the commission may levy a fine or revoke the telecommunications service 
8.6 	provider's authorization to operate in the state. Enforcement actions under this paragraph 
8.7 	are subject to the contested case procedures in chapter 14.

8.8 	Sec. 19. [237.132] REGISTRATION OF INTERMEDIATE PROVIDERS.
8.9 	(a) An intermediate provider shall file a registration with the commission that 
8.10 	includes the company name, address, a contact name, and a telephone number that will 
8.11 	be answered 24 hours each day, seven days a week, to address any failures of calls to 
8.12 	complete within Minnesota. The contacts provided by each entity should be well-versed in 
8.13 	the subject matter of call routing and call completion. Intermediate providers are subject 
8.14 	to regulation under this chapter only to the extent required under section 237.131.
8.15 	(b) The department shall maintain a contact list of all registered intermediate 
8.16 	providers on its Web site to enable expeditious resolution of any call routing and call 
8.17 	completion problems involving intermediate providers.
8.18 	(c) Intermediate providers shall update their registration information when changes 
8.19 	occur, but no less than annually.

8.20 	Sec. 20. [237.84] CERTIFICATION, REGISTRATION, AND MAPPING.
8.21 		Subdivision 1.Application for certificate of authority. Before a 
8.22 	telecommunications service provider may offer retail or wholesale telecommunications 
8.23 	services to the public in Minnesota, the telecommunications service provider must receive 
8.24 	a certificate of authority from the commission. The commission shall issue a certificate of 
8.25 	authority within 60 days after receipt of a complete application, unless it makes a finding 
8.26 	that issuance of a certificate is contrary to the public interest. A telecommunications service 
8.27 	provider seeking a certificate of authority under this chapter shall submit an application on 
8.28 	a form prescribed by the commission. If a telecommunications service provider's submitted 
8.29 	application is incomplete, the commissioner may deny the application or suspend the 
8.30 	60-day period until it finds that a complete application has been filed. The form must 
8.31 	require the telecommunications service provider to provide the following information:
8.32 	(1) the legal name of the telecommunications service provider and any name under 
8.33 	which the telecommunications service provider does or will do business in Minnesota, as 
8.34 	authorized by the secretary of state;
9.1 	(2) a certification from the secretary of state authorizing the telecommunications 
9.2 	service provider to do business in Minnesota;
9.3 	(3) the address and telephone number of the telecommunications service provider, 
9.4 	along with contact information for the person responsible for ongoing communication 
9.5 	with the commission;
9.6 	(4) the legal name, address, and telephone number of the parent company of the 
9.7 	telecommunications service provider, if any;
9.8 	(5) a description of each service area in Minnesota in which the telecommunications 
9.9 	service provider proposes to offer telecommunications service;
9.10 	(6) a list of other states in which the telecommunications service provider offers 
9.11 	telecommunications service, including the type of telecommunications service offered;
9.12 	(7) information demonstrating the financial, managerial, and technical ability of 
9.13 	the telecommunications service provider to provide telecommunications service in 
9.14 	Minnesota; and
9.15 	(8) verification that the telecommunications service provider's 911 plan has been 
9.16 	approved.
9.17 		Subd. 2.Fees. The commission may collect from the applicant a filing fee not to 
9.18 	exceed $2,000, charged at the time an application is filed under this section.

9.19 	Sec. 21. REVISOR'S INSTRUCTION.
 9.20 	The revisor shall make necessary technical cross-reference changes in Minnesota 
9.21 	Statutes and Minnesota Rules consistent with the repealer in section 21.

9.22 	Sec. 22.  REPEALER.
 9.23 	Minnesota Statutes 2014, sections 237.03; 237.072; 237.075, subdivisions 2, 3, 6, 
9.24 	and 9; 237.21; 237.22; 237.57; 237.59, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, and 10; 
9.25 	237.64, subdivision 2; 237.775; and 237.80, subdivision 2, are repealed.