1.1                          A bill for an act 
  1.2             relating to telecommunications; providing additional 
  1.3             antislamming and disclosure requirements on 
  1.4             long-distance service providers; clarifying 
  1.5             requirements relating to notification of price 
  1.6             increases; including provisions relating to 
  1.7             unauthorized international calls for information 
  1.8             services; amending Minnesota Statutes 1996, sections 
  1.9             237.66, subdivisions 1a, 3, and by adding 
  1.10            subdivisions; 237.74, subdivision 6; and 325F.692, 
  1.11            subdivisions 1 and 8; proposing coding for new law in 
  1.12            Minnesota Statutes, chapter 237; repealing Minnesota 
  1.13            Statutes 1997 Supplement, section 237.66, subdivision 
  1.14            1b. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1996, section 237.66, 
  1.17  subdivision 1a, is amended to read: 
  1.18     Subd. 1a.  [NOTICE TO CUSTOMERS; RIGHT TO REQUIRE PRIOR 
  1.19  AUTHORIZATION.] ~~(a)~~ Each residential and commercial 
  1.20  telecommunications carrier customer may elect to require that 
  1.21  the telephone company serving the customer receive authorization 
  1.22  from the customer before a request to serve that customer from a 
  1.23  different intrastate telecommunications carrier than the carrier 
  1.24  currently serving the customer is processed. 
  1.25     ~~(b) For new installations, a telephone company shall notify~~ 
  1.26  ~~a residential or commercial customer of the right described in~~ 
  1.27  ~~paragraph (a) when the customer initially requests intraexchange~~ 
  1.28  ~~service.~~ 
  1.29     ~~(c) Within one year of January 1, 1997, a~~ 
  1.30  ~~telecommunications carrier shall notify each of its existing~~ 
  2.1   ~~residential and commercial customers of the right described in~~ 
  2.2   ~~paragraph (a).  The notice may be made as a billing insert.  Any~~ 
  2.3   ~~customer notification of the rights set forth in this~~ 
  2.4   ~~subdivision shall be provided utilizing uniform, competitively~~ 
  2.5   ~~neutral language and the form, content, and style of the~~ 
  2.6   ~~authorization shall be consistent with federal law and~~ 
  2.7   ~~regulation and shall use language provided and approved by the~~ 
  2.8   ~~public utilities commission.~~  
  2.9      ~~(d) A customer may change this election at any time by~~ 
  2.10  ~~notifying the telephone company of that decision.  No separate~~ 
  2.11  ~~charge may be imposed on the customer for electing to exercise~~ 
  2.12  ~~the right described in paragraph (a) or to change that election,~~ 
  2.13  ~~but a telephone company may recover in rates the reasonable~~ 
  2.14  ~~costs of administering the election.~~ 
  2.15     ~~(e) If a customer has elected to exercise the right~~ 
  2.16  ~~described in paragraph (a), the telephone company shall not~~ 
  2.17  ~~process a request to serve the customer by another~~ 
  2.18  ~~telecommunications carrier without prior authorization from the~~ 
  2.19  ~~customer.  If a customer has not elected to exercise the right~~ 
  2.20  ~~described in paragraph (a), the company may process a request to~~ 
  2.21  ~~serve the customer by another telecommunications carrier.~~  
  2.22     ~~(f) A carrier may request such a change if the customer has~~ 
  2.23  ~~authorized the change either orally or in writing signed by the~~ 
  2.24  ~~customer.  If the carrier requests a change in a customer's~~ 
  2.25  ~~service provider, the carrier must:~~ 
  2.26     ~~(1) notify the customer in writing that the request has~~ 
  2.27  ~~been processed; and~~ 
  2.28     ~~(2) be able to present, upon complaint by the customer,~~ 
  2.29  ~~verified authorization for the change by the customer.~~  
  2.30     ~~If the initial authorization was made orally, the carrier~~ 
  2.31  ~~must be able to present verified authorization received from the~~ 
  2.32  ~~customer within 14 business days of the date the oral~~ 
  2.33  ~~authorization was made.~~ 
  2.34     ~~(g) In the case of an oral authorization, if a~~ 
  2.35  ~~telecommunications carrier does not receive the verified~~ 
  2.36  ~~authorization within 14 business days of the date of the oral~~ 
  3.1   ~~authorization, the carrier must either bear the risk that the~~ 
  3.2   ~~change to the service of the carrier will be deemed unauthorized~~ 
  3.3   ~~under paragraph (h) or:~~ 
  3.4      ~~(1) immediately return the customer to the service of the~~ 
  3.5   ~~customer's original service provider;~~ 
  3.6      ~~(2) bear all costs associated with returning the customer;~~ 
  3.7   ~~and~~ 
  3.8      ~~(3) bill the customer for services rendered at the rate the~~ 
  3.9   ~~customer would have paid for such services if the request to~~ 
  3.10  ~~serve the customer had not been made.~~ 
  3.11     ~~(h) If the carrier is not able to present, upon complaint~~ 
  3.12  ~~by the customer, verified authorization received from the~~ 
  3.13  ~~customer as required under paragraph (f) and the carrier did not~~ 
  3.14  ~~return the customer to the service of the customer's original~~ 
  3.15  ~~service provider as required under paragraph (g), the change to~~ 
  3.16  ~~the service of the carrier shall be deemed to be unauthorized~~ 
  3.17  ~~from the date the carrier requested the change.  In that event,~~ 
  3.18  ~~the carrier shall:~~ 
  3.19     ~~(1) bear all costs of immediately returning the customer to~~ 
  3.20  ~~the service of the customer's original service provider; and~~ 
  3.21     ~~(2) bear all costs of serving that customer during the~~ 
  3.22  ~~period of unauthorized service.~~ 
  3.23     ~~(i) For purposes of paragraphs (f), (g), and (h),~~ 
  3.24  ~~authorization required in those paragraphs may be verified~~ 
  3.25  ~~utilizing any method that is consistent with federal law and~~ 
  3.26  ~~regulation.~~  
  3.27     Sec. 2.  Minnesota Statutes 1996, section 237.66, is 
  3.28  amended by adding a subdivision to read: 
  3.29     Subd. 1c.  [TIMING OF NOTICE; NEW CUSTOMERS.] For new 
  3.30  installations, a telephone company shall notify a residential or 
  3.31  commercial customer of the right described in subdivision 1a 
  3.32  when the customer initially requests intraexchange service.  Any 
  3.33  customer notification of the rights set forth in this section 
  3.34  shall be provided utilizing uniform, competitively neutral 
  3.35  language and the form, content, and style of the authorization 
  3.36  shall be consistent with federal law and regulation and shall 
  4.1   use language provided and approved by the public utilities 
  4.2   commission.  
  4.3      Sec. 3.  Minnesota Statutes 1996, section 237.66, is 
  4.4   amended by adding a subdivision to read: 
  4.5      Subd. 1d.  [CHANGE OF ELECTION.] A customer may change the 
  4.6   election under subdivision 1a at any time by notifying the 
  4.7   telephone company of that decision.  No separate charge may be 
  4.8   imposed on the customer for electing to exercise the right 
  4.9   described in subdivision 1a or to change that election, but a 
  4.10  telephone company may recover in rates the reasonable costs of 
  4.11  administering the election. 
  4.12     Sec. 4.  Minnesota Statutes 1996, section 237.66, 
  4.13  subdivision 3, is amended to read: 
  4.14     Subd. 3.  [ENFORCEMENT.] If, after an expedited procedure 
  4.15  conducted under section 237.61, the commission finds that a 
  4.16  telephone company is failing to provide disclosure as required 
  4.17  under subdivision 1, or the notification required under 
  4.18  ~~subdivision 1a, paragraphs (b) and (c)~~ subdivision 1c, it shall 
  4.19  order the company to take corrective action as necessary. 
  4.20     Sec. 5.  [237.661] [ANTISLAMMING.] 
  4.21     Subdivision 1.  [ANTISLAMMING DUTIES OF LOCAL TELEPHONE 
  4.22  COMPANY.] If a customer has elected to exercise the right 
  4.23  described in section 237.66, subdivision 1a, the telephone 
  4.24  company serving the customer shall not process a request to 
  4.25  serve the customer by another telecommunications carrier without 
  4.26  prior authorization from the customer.  If a customer has not 
  4.27  elected to exercise the right described in that subdivision, the 
  4.28  company may process a request to serve the customer by another 
  4.29  telecommunications carrier. 
  4.30     Subd. 2.  [ANTISLAMMING DUTIES OF SOLICITING CARRIER.] (a) 
  4.31  A telecommunications carrier may request that the telephone 
  4.32  company serving a customer process a change in that customer's 
  4.33  long-distance provider, if the customer has authorized the 
  4.34  change either orally or in writing signed by the customer.  
  4.35  Prior to requesting a change in a customer's long-distance 
  4.36  service provider, the carrier must confirm: 
  5.1      (1) the customer's identity with information unique to the 
  5.2   customer, such as a social security number, credit card number, 
  5.3   mother's maiden name, or other similarly unique information; 
  5.4      (2) that the customer has been informed of the offering 
  5.5   made by the carrier; 
  5.6      (3) that the customer understands that the customer is 
  5.7   being requested to change telecommunication carriers; 
  5.8      (4) that the customer has the authority to authorize the 
  5.9   change; and 
  5.10     (5) that the customer agrees to the change. 
  5.11     (b) After requesting the change in long-distance service 
  5.12  provider, the carrier must: 
  5.13     (1) notify the customer in writing that the request has 
  5.14  been processed; and 
  5.15     (2) be able to produce, upon complaint by the customer, 
  5.16  evidence that the carrier verified the authorization by the 
  5.17  customer to change the customer's long-distance service 
  5.18  provider.  If the carrier used a negative check-off verification 
  5.19  procedure as defined in subdivision 4, paragraph (c), the 
  5.20  evidence must include a tape recording of the initial oral 
  5.21  authorization. 
  5.22     Subd. 3.  [PENALTY FOR SLAMMING.] If the carrier is not 
  5.23  able to present, upon complaint by the customer, evidence that 
  5.24  complies with subdivision 2, paragraph (b), clause (2), the 
  5.25  change to the service of the carrier is deemed to be 
  5.26  unauthorized from the date the carrier requested the change.  In 
  5.27  that event, the carrier shall: 
  5.28     (1) bear all costs of immediately returning the customer to 
  5.29  the service of the customer's original service provider; and 
  5.30     (2) bear all costs of serving that customer during the 
  5.31  period of unauthorized service. 
  5.32     Subd. 4.  [VERIFICATION PROCEDURES; EVIDENCE OF 
  5.33  AUTHORIZATION.] (a) Customer authorization for a change in the 
  5.34  customer's long-distance service provider may be verified using 
  5.35  a verification procedure that complies with federal law or 
  5.36  regulation.  Except as provided in paragraph (b), the 
  6.1   requirement that the carrier be able to produce evidence of 
  6.2   customer authorization is satisfied if the carrier uses a 
  6.3   federally authorized verification procedure. 
  6.4      (b) If federal law or regulation authorizes a carrier to 
  6.5   use a negative check-off verification procedure, and the carrier 
  6.6   does so, the carrier must be able to produce a tape recording of 
  6.7   the initial oral authorization by the customer to change 
  6.8   long-distance service providers as evidence of the 
  6.9   authorization.  The initial oral authorization must include 
  6.10  confirmation of the items listed in subdivision 2, paragraph (a).
  6.11     (c) "Negative check-off" means a verification procedure 
  6.12  that consists of: 
  6.13     (1) an initial oral authorization by the customer to change 
  6.14  long-distance service providers; and 
  6.15     (2) a mailing to the customer by the soliciting 
  6.16  telecommunications carrier regarding the change in service 
  6.17  providers that informs the customer that if the customer fails 
  6.18  to cancel the change in service providers, the change will be 
  6.19  deemed authorized and verified. 
  6.20     Sec. 6.  [237.662] [NOTICE AND DISCLOSURE REQUIREMENTS OF 
  6.21  LONG-DISTANCE PROVIDERS.] 
  6.22     Subdivision 1.  [INFORMATION REQUIRED.] When contacted by a 
  6.23  customer regarding the purchase of long-distance 
  6.24  telecommunications services, or when soliciting customers via 
  6.25  mail or telephone, a provider of long-distance services shall 
  6.26  provide the customer with the following information, if the 
  6.27  service is being offered to the customer, about the service 
  6.28  offering either orally or in writing: 
  6.29     (1) the price of interstate message toll service accessed 
  6.30  by dialing "1+" or "10-xxx", including any difference in prices 
  6.31  for evening, night, or weekend calls; 
  6.32     (2) the price of intrastate interLATA message toll service 
  6.33  accessed by dialing "1+" or "10-xxx", including any difference 
  6.34  in prices for evening, night, or weekend calls; 
  6.35     (3) the price of intrastate intraLATA message toll service 
  6.36  accessed by dialing "1+" or "10-xxx", including any difference 
  7.1   in prices for evening, night, or weekend; 
  7.2      (4) any minimum volume requirements, fixed flat fees, 
  7.3   service charges, surcharges, termination charges or other 
  7.4   non-service-specific charges, including the fact that the 
  7.5   provider of local service may charge a one-time fee for changing 
  7.6   carriers; and 
  7.7      (5) any special promotional rate or promotional offering 
  7.8   related to the services or prices described in clauses (1) to (4)
  7.9   above, including any limitations or restrictions on the 
  7.10  promotional rates or offerings. 
  7.11     Subd. 2.  [PRICE, TERMS, AND RESTRICTIONS IN WRITING.] If a 
  7.12  customer agrees to purchase telecommunications services from the 
  7.13  provider of long-distance services on a presubscription basis, 
  7.14  the provider shall send the customer written information 
  7.15  containing all prices, terms, limitations, and restrictions 
  7.16  associated with the services purchased, including the terms of 
  7.17  any special promotions offered to the customer.  This written 
  7.18  information must be sent to the customer within seven business 
  7.19  days from the date of the verification of the customer's 
  7.20  authorization, unless federal law or regulation requires notice 
  7.21  to be sent by an earlier date. 
  7.22     Subd. 3.  [FILED TARIFFS NO DEFENSE.] That a 
  7.23  telecommunications carrier has tariffs or price lists for the 
  7.24  offered services on file with a regulatory agency is not a 
  7.25  defense to any action brought for failure to disclose 
  7.26  information under this section. 
  7.27     Sec. 7.  [237.663] [LOADING.] 
  7.28     (a) Except as provided in paragraph (b) or (c), a telephone 
  7.29  company or telecommunications carrier providing local service 
  7.30  shall not charge a telephone service subscriber, as defined in 
  7.31  section 325F.692, for a telephone or telecommunications service 
  7.32  that is not required by the commission to be offered and for 
  7.33  which the subscriber did not explicitly contract.  
  7.34     (b) If a charge is assessed on a per-use basis for a 
  7.35  service described in paragraph (a), the charge must be applied 
  7.36  as a credit to the subscriber's next monthly bill, if the 
  8.1   subscriber notifies the telephone company or telecommunications 
  8.2   carrier that the subscriber did not utilize the service or did 
  8.3   not authorize the utilization of the service. 
  8.4      (c) A telephone company or telecommunications carrier that 
  8.5   receives a notification from a telephone service subscriber 
  8.6   under paragraph (b) shall inform the subscriber of the ability 
  8.7   to block the services from future use by the subscriber, and 
  8.8   shall block the services from future use by the subscriber, if 
  8.9   the subscriber so requests.  If a subscriber requests that the 
  8.10  carrier or company not block the service or later requests to 
  8.11  have the block lifted, the subscriber shall be responsible for 
  8.12  charges caused by the future utilization of that service.  The 
  8.13  carrier or company may not charge a recurring fee for blocking 
  8.14  the service. 
  8.15     Sec. 8.  Minnesota Statutes 1996, section 237.74, 
  8.16  subdivision 6, is amended to read: 
  8.17     Subd. 6.  [TARIFF OR PRICE LIST CHANGES.] (a) 
  8.18  Telecommunications carriers may: 
  8.19     (1) decrease the rate for a service, or make any change in 
  8.20  a tariff or price list that results in a decrease in rates, 
  8.21  effective without notice to its customers or the commission; and 
  8.22     (2) offer a new service, increase the rate for a service, 
  8.23  or change the terms, conditions, rules, and regulations of its 
  8.24  service offering effective upon notice to its customers.  
  8.25  Subject to subdivisions 2 and 9, a telecommunications carrier 
  8.26  may discontinue a service, except that a telecommunications 
  8.27  carrier must first obtain prior commission approval before 
  8.28  discontinuing service to another telecommunications carrier if 
  8.29  end users would be deprived of service because of the 
  8.30  discontinuance. 
  8.31     (b) A telecommunications carrier may give notice to its 
  8.32  customers by bill inserts, by ~~publication in newspapers of~~ 
  8.33  ~~general circulation, or by any other reasonable means~~ 
  8.34  prominently displaying the notice of price increase on the 
  8.35  customer's bill, or by a direct mailing or phone call to the 
  8.36  customer.  Customer notices for price increases must include as 
  9.1   a heading "NOTICE OF PRICE INCREASE". 
  9.2      Sec. 9.  Minnesota Statutes 1996, section 325F.692, 
  9.3   subdivision 1, is amended to read: 
  9.4      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  9.5   section, the following terms have the meanings given them. 
  9.6      (b) "Information service" means a billed service 
  9.7   transmitted exclusively orally via the telecommunications 
  9.8   network that may include provision of information or advice, 
  9.9   participation in trivia or other games, participation in adult 
  9.10  conversation or other group bridging services, or provision of 
  9.11  similar billed services.  An information service may be accessed 
  9.12  by an information service customer by various methods including, 
  9.13  but not limited to, dialing a 1-900 or 1-800 telephone number, 
  9.14  or by the customer receiving a collect call from an information 
  9.15  service provider following the customer's 1-800 call. 
  9.16     (c) "Information service customer" means a person who 
  9.17  receives information transmitted from or participates in 
  9.18  conversation enabled by an information service provider. 
  9.19     (d) "Information service provider" means a person who 
  9.20  provides information services and directly, or indirectly 
  9.21  through a billing agent, either charges information service 
  9.22  customers for use of the information service or includes the 
  9.23  costs associated with providing information services in the 
  9.24  charge for a long-distance call. 
  9.25     (e) "Telephone service subscriber" means a person who 
  9.26  contracts with a telephone company for telephone services. 
  9.27     Sec. 10.  Minnesota Statutes 1996, section 325F.692, 
  9.28  subdivision 8, is amended to read: 
  9.29     Subd. 8.  [EXCEPTION.] ~~This section does not apply to~~ 
  9.30  ~~information services provided via the international telephone~~ 
  9.31  ~~network if the charge for the information service call is based~~ 
  9.32  ~~on tariff rates and does not apply to traditional long-distance~~ 
  9.33  ~~telephone calls.~~  (a) Charges for traditional long-distance 
  9.34  telephone calls provided via the international 
  9.35  telecommunications network must be billed in a mailing separate 
  9.36  from a bill for charges for intrastate telecommunications 
 10.1   services, unless the telecommunications carrier: 
 10.2      (1) agrees to a one-time credit of all charges for 
 10.3   unauthorized international calls to information service 
 10.4   providers on the telephone subscriber's most recent bill, upon 
 10.5   complaint by the telephone subscriber of unauthorized usage.  
 10.6   This credit must include all such charges incurred as of the 
 10.7   date of the telephone subscriber's complaint; and 
 10.8      (2) on its own or in conjunction with the telephone 
 10.9   subscriber's provider of local telephone service, offers 
 10.10  comprehensive international toll blocking service, including 
 10.11  blocking of nondomestic area codes that are part of the North 
 10.12  American numbering plan, at a reasonable nonrecurring charge.  
 10.13     (b) A telecommunications carrier operating in violation of 
 10.14  this provision is subject to the penalties set forth in section 
 10.15  237.461, subdivision 2. 
 10.16     Sec. 11.  [REPEALER.] 
 10.17     Minnesota Statutes 1997 Supplement, section 237.66, 
 10.18  subdivision 1b, is repealed. 
 10.19     Sec. 12.  [EFFECTIVE DATE.] 
 10.20     Sections 1 to 11 are effective July 1, 1998, except that 
 10.21  section 10, paragraph (a), clause (2), is effective January 1, 
 10.22  1999.