1.1                          A bill for an act 
  1.2             relating to telecommunications; deregulating 
  1.3             coin-operated or public pay telephones under state 
  1.4             law; authorizing the public utilities commission to 
  1.5             assess administrative penalties for anticompetitive 
  1.6             activities by telecommunication providers; proposing 
  1.7             coding for new law in Minnesota Statutes, chapter 237. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [237.036] [COIN-OPERATED OR PUBLIC PAY 
  1.10  TELEPHONES.] 
  1.11     (a) Neither commission approval nor a commission 
  1.12  certificate is required to:  
  1.13     (1) own or operate a coin-operated or public pay telephone 
  1.14  in the state; 
  1.15     (2) seek or obtain approval from the commission to site a 
  1.16  coin-operated or public pay telephone in the state; or 
  1.17     (3) seek or obtain approval from the commission to 
  1.18  implement changes in service, rates, location, or ownership 
  1.19  regarding a coin-operated or public pay telephone.  
  1.20     (b) Ownership of a coin-operated or public pay telephone in 
  1.21  the state does not make a person a telephone company or a 
  1.22  telecommunications carrier, as defined in section 237.01, 
  1.23  subdivision 2 or 6.  
  1.24     (c) This section does not affect the authority of other 
  1.25  state or local government entities to regulate aspects of 
  1.26  coin-operated or public pay telephone ownership, location, or 
  2.1   operation.  The commission shall retain the authority delegated 
  2.2   to it under federal and state law to protect the public interest 
  2.3   with regard to coin-operated or public pay telephones.  
  2.4      (d) The commission may require owners of coin-operated or 
  2.5   public pay telephones to provide free access to 911 and E-911 
  2.6   emergency services, to post customer service and complaint 
  2.7   information, and to post pricing information.  
  2.8      Sec. 2.  [237.462] [COMPETITIVE ENFORCEMENT; ADMINISTRATIVE 
  2.9   PENALTIES FOR ANTICOMPETITIVE ACTIVITIES.] 
  2.10     Subdivision 1.  [AUTHORITY TO ISSUE PENALTY ORDER.] After a 
  2.11  proceeding under section 237.081, the commission may issue an 
  2.12  order administratively assessing monetary penalties for 
  2.13  violations of section 237.09, 237.121, or 237.16, any rule 
  2.14  adopted under those sections, and any standard, limitation, or 
  2.15  condition established in a commission order pursuant to those 
  2.16  sections.  The penalty order must be issued as provided in this 
  2.17  section.  
  2.18     Subd. 2.  [AMOUNT OF PENALTY; CONSIDERATIONS.] (a) The 
  2.19  commission may issue an order assessing a penalty of $100 to 
  2.20  $5,000 per day for each knowing and intentional violation.  
  2.21     (b) In determining the amount of a penalty the commission 
  2.22  may consider: 
  2.23     (1) the willfulness of the violation; 
  2.24     (2) the gravity of the violation, including the harm to 
  2.25  customers or competitors; 
  2.26     (3) the history of past violations, including the gravity 
  2.27  of past violations and the time lapsed since the last violation; 
  2.28     (4) the number of violations; 
  2.29     (5) the economic benefit gained by the person committing 
  2.30  the violation; 
  2.31     (6) any corrective action taken or planned by the person 
  2.32  committing the violation; and 
  2.33     (7) other factors as justice may require, if the commission 
  2.34  specifically identifies the additional factors in the 
  2.35  commission's order. 
  2.36     Subd. 3.  [BURDEN OF PROOF.] The commission shall not 
  3.1   assess a penalty under this section unless the record in the 
  3.2   proceeding establishes by a preponderance of the evidence that 
  3.3   the penalty is justified based on the factors identified in 
  3.4   subdivision 2.  
  3.5      Subd. 4.  [CONTENTS OF ORDER.] An order assessing an 
  3.6   administrative penalty under this section must include:  
  3.7      (1) a concise statement of the facts alleged to constitute 
  3.8   a violation; 
  3.9      (2) a reference to the section of the statute, rule, or 
  3.10  order that has been violated; 
  3.11     (3) a statement of the amount of the administrative penalty 
  3.12  to be imposed and the factors upon which the penalty is based; 
  3.13  and 
  3.14     (4) a statement of the person's right to review of the 
  3.15  order. 
  3.16     Subd. 5.  [PENALTY STAYED.] A penalty imposed under this 
  3.17  section is not payable sooner than 31 days after the commission 
  3.18  issues its final order assessing the penalty.  The person 
  3.19  subject to the penalty may appeal the commission's penalty order 
  3.20  under sections 14.63 to 14.68.  If the person does appeal the 
  3.21  commission's penalty order, the penalty is not payable until the 
  3.22  Minnesota court of appeals issues a decision sustaining the 
  3.23  commission's penalty order. 
  3.24     Subd. 6.  [EXPEDITED PROCEEDING.] Before issuing a penalty 
  3.25  order, the commission may initiate an expedited proceeding under 
  3.26  section 237.61, in lieu of a contested case under chapter 14, to 
  3.27  develop an evidentiary record in any proceeding covered by this 
  3.28  section that involves contested issues of material fact.  An 
  3.29  expedited proceeding under this subdivision must be governed by 
  3.30  the following procedural rules:  
  3.31     (1) the parties have the discovery rights provided in 
  3.32  Minnesota Rules, parts 1400.6700 to 1400.7000; 
  3.33     (2) the parties have the right to cross-examine witnesses 
  3.34  as provided in section 14.60, subdivision 3; 
  3.35     (3) section 14.60 and Minnesota Rules, part 1400.7300 
  3.36  govern the admissibility of evidence and development of a record 
  4.1   for decision; 
  4.2      (4) if practicable, a quorum of commissioners shall preside 
  4.3   at a hearing conducted under this subdivision; and 
  4.4      (5) the commission may apply other procedures or standards, 
  4.5   including the rules of the office of administrative hearings, as 
  4.6   necessary to ensure the fair and expeditious resolution of 
  4.7   disputes under this section. 
  4.8      Subd. 7.  [TEMPORARY RELIEF.] After providing opportunity 
  4.9   for notice and comment, the commission may order the person 
  4.10  accused of violating section 237.09, 237.121, or 237.16, any 
  4.11  rule adopted under those sections, or any standard, limitation, 
  4.12  or condition established in a commission order pursuant to those 
  4.13  sections, to cease the conduct that is allegedly in violation, 
  4.14  pending completion of any necessary evidentiary hearing under 
  4.15  this section, but only if the commission finds that the 
  4.16  temporary cessation of the conduct is necessary to protect the 
  4.17  public's interest in fair and reasonable competition. 
  4.18     Subd. 8.  [ENFORCEMENT.] On behalf of the state, the 
  4.19  attorney general may proceed to enforce any penalty that is due 
  4.20  and payable under this section in any manner provided by law for 
  4.21  the collection of debts.  
  4.22     Subd. 9.  [CUMULATIVE REMEDIES.] The attorney general shall 
  4.23  not seek penalties under section 237.461 for the same violations 
  4.24  for which the commission has issued an administrative penalty 
  4.25  order.  The authority of the commission to issue an 
  4.26  administrative penalty order is in addition to other remedies 
  4.27  available under statutory or common law.  The payment of a 
  4.28  penalty does not preclude the use of other enforcement 
  4.29  provisions, under which penalties are not assessed, in 
  4.30  connection with the violation for which the penalty was assessed.
  4.31     Sec. 3.  [EFFECTIVE DATE.] 
  4.32     This act is effective the day following final enactment.