1.1                          A bill for an act 
  1.2             relating to telecommunications; providing for an 
  1.3             alternative form of regulation for certain telephone 
  1.4             companies; providing for reduced reporting 
  1.5             requirements; clarifying the authority of the public 
  1.6             utilities commission to issue remedial orders; 
  1.7             establishing a single per number fee for certain 
  1.8             telecommunications programs; regulating wireless 
  1.9             telephone directories; providing for additional cable 
  1.10            franchises; creating a task force on 
  1.11            telecommunications; regulating cancellation of long 
  1.12            distance service; authorizing the city of Alexandria 
  1.13            to enter into certain telecommunication joint 
  1.14            ventures; providing penalties; appropriating money; 
  1.15            amending Minnesota Statutes 2004, sections 237.11; 
  1.16            237.295, subdivisions 1, 2; 237.462, by adding 
  1.17            subdivisions; 237.69, subdivision 16, by adding a 
  1.18            subdivision; 237.70, subdivisions 2, 5; 237.701, 
  1.19            subdivision 1; 237.74, by adding a subdivision; 
  1.20            238.08, subdivision 1, by adding a subdivision; 
  1.21            403.06, subdivision 1a; 403.11, subdivision 1; 
  1.22            403.113, subdivision 1; 403.30, subdivision 1; Laws 
  1.23            1999, chapter 224, section 7, as amended; Laws 2002, 
  1.24            chapter 329, section 5; proposing coding for new law 
  1.25            in Minnesota Statutes, chapters 237; 325E; 325F; 
  1.26            repealing Minnesota Statutes 2004, section 237.69, 
  1.27            subdivisions 5, 17; Laws 1999, chapter 125, section 4, 
  1.28            as amended. 
  1.29  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.30                             ARTICLE 1
  1.31                         REGULATORY RELIEF
  1.32     Section 1.  Minnesota Statutes 2004, section 237.11, is 
  1.33  amended to read: 
  1.34     237.11 [INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.] 
  1.35     Every telephone company subject to the provisions of this 
  1.36  chapter, wherever organized, shall keep an office in this state, 
  1.37  and make such reports to the department as it shall from time to 
  2.1   time require.  The department shall only require information for 
  2.2   an annual report from a telephone company, competitive local 
  2.3   exchange carrier, or independent telephone company that consists 
  2.4   of the name of the company, contact person, annual revenue, and 
  2.5   the annual status of the 911 plan update.  All books, records, 
  2.6   and files, whether they relate to competitive or noncompetitive 
  2.7   services, and all of its property shall be at all times subject 
  2.8   to inspection by the commission and the department.  It shall 
  2.9   close its accounts and take therefrom a balance sheet on 
  2.10  December 31 of each year, and on or before May 1 following, such 
  2.11  balance sheet, together with such other information as the 
  2.12  department shall require, verified by an officer of the 
  2.13  telephone company, shall be filed with the commission and the 
  2.14  department. 
  2.15     In the event that any telephone company shall fail to file 
  2.16  its annual report, as provided by this section, the department 
  2.17  is authorized to make such an examination of the books, records, 
  2.18  and vouchers of the company as is necessary to procure the 
  2.19  necessary data for the annual report and cause the same to be 
  2.20  prepared.  The expense of procuring this data and preparing this 
  2.21  report shall be paid by the telephone company failing to report, 
  2.22  and the amount paid shall be credited by the commissioner of 
  2.23  finance to funds appropriated for the expense of the department. 
  2.24     The department is authorized to force collection of such 
  2.25  sum by an action at law in the name of the department. 
  2.26     Sec. 2.  Minnesota Statutes 2004, section 237.462, is 
  2.27  amended by adding a subdivision to read: 
  2.28     Subd. 13.  [REMEDIAL PAYMENTS.] The commission's authority 
  2.29  under this section includes authority to require refunds, 
  2.30  payments, or credits intended to provide compensation for 
  2.31  financial harm resulting from violations subject to penalty 
  2.32  payments under this section.  Any remedial payments under this 
  2.33  section shall offset penalty payments ordered under subdivision 
  2.34  2 for the same violations. 
  2.35     Sec. 3.  Minnesota Statutes 2004, section 237.462, is 
  2.36  amended by adding a subdivision to read: 
  3.1      Subd. 14.  [WHOLESALE SERVICE QUALITY.] The commission's 
  3.2   authority to adopt wholesale service quality standards includes 
  3.3   the authority to establish remedy payments to provide 
  3.4   compensation and enforce those standards. 
  3.5      Sec. 4.  [237.85] [DEFINITIONS.] 
  3.6      Subdivision 1.  [SCOPE.] The definitions in this section 
  3.7   apply to sections 237.85 to 237.90. 
  3.8      Subd. 2.  [BASIC SERVICE.] "Basic service" means one 
  3.9   unbundled, single line, unlimited local usage, residential voice 
  3.10  telephone service or unbundled single line, unlimited local 
  3.11  usage, business voice telephone service.  Basic service includes:
  3.12     (1) single party voice-grade service and touch-tone 
  3.13  capability; 
  3.14     (2) 911 or enhanced 911 access; 
  3.15     (3) 1+intraLATA and interLATA presubscription and 
  3.16  code-specific equal access to interexchange carriers subscribing 
  3.17  to its switched access service; 
  3.18     (4) access to directory assistance, directory listings, and 
  3.19  operator services; 
  3.20     (5) toll and information service-blocking; 
  3.21     (6) a white pages and directory assistance listing, or upon 
  3.22  customer request, a private listing that allows the customer to 
  3.23  have an unlisted or unpublished telephone number; 
  3.24     (7) call-tracing capability according to Minnesota Rules, 
  3.25  chapter 7813; and 
  3.26     (8) telecommunications relay service capability or access 
  3.27  necessary to comply with state and federal regulations. 
  3.28     Subd. 3.  [CLASS OF SERVICES.] "Class of services" includes 
  3.29  all services provided to a particular class of customers, 
  3.30  including the residential class and the business class. 
  3.31     Subd. 4.  [COMMISSION.] "Commission" means the Public 
  3.32  Utilities Commission. 
  3.33     Subd. 5.  [COMPETITIVE REGULATION TELEPHONE 
  3.34  COMPANY.] "Competitive regulation telephone company" is a 
  3.35  telephone company that the commission authorizes to operate 
  3.36  under competitive regulation as provided in sections 237.86 to 
  4.1   237.90. 
  4.2      Subd. 6.  [COMPETITIVE SERVICES REGULATION.] "Competitive 
  4.3   services regulation" means regulation of services determined to 
  4.4   be competitive as provided in sections 237.86 to 237.90. 
  4.5      Sec. 5.  [237.86] [COMPETITIVE SERVICES REGULATION.] 
  4.6      Subdivision 1.  [COMPETITION STANDARD.] Competitive 
  4.7   regulation as provided in sections 237.86 to 237.90 is permitted 
  4.8   for the residential services offered by a telephone company in 
  4.9   an exchange where three or more competitors offer comparable 
  4.10  retail residential services in the exchange.  A residential 
  4.11  service is not comparable unless it provides basic service with 
  4.12  911 access through the dedicated 911 network.  Competitive 
  4.13  regulation as provided in sections 237.86 to 237.90 is permitted 
  4.14  for the business class of services offered by a telephone 
  4.15  company in an exchange where three or more competitors offer 
  4.16  comparable service in an exchange through the use of unbundled 
  4.17  network elements, resale, voice over Internet protocol, 
  4.18  wireless, or a provider's own facilities, including cable.  The 
  4.19  competitors must not be affiliated with the telephone company 
  4.20  seeking to be regulated under sections 237.86 to 237.90.  
  4.21     Subd. 2.  [PETITION AND APPROVAL PROCESS.] (a) A telephone 
  4.22  company may petition the commission to have its retail 
  4.23  residential or business services in an exchange regulated as 
  4.24  provided in sections 237.86 to 237.90.  The petition shall be 
  4.25  served upon the residential and small business utilities 
  4.26  division of the office of the attorney general, the Department 
  4.27  of Commerce, and any other persons who have requested to be on a 
  4.28  commissioner service list for petitions filed under this section.
  4.29     (b) A petition shall be approved by the commission within 
  4.30  20 days after it is filed if it includes a signed affidavit that 
  4.31  identifies three or more competitors to the customer class or 
  4.32  classes in the exchange or exchanges covered by the petition.  
  4.33  The affidavit must be signed by an employee of the telephone 
  4.34  company with knowledge and the authority to make representations 
  4.35  on behalf of the company.  Within 30 days after filing of the 
  4.36  affidavit, any interested person may file objections to the 
  5.1   petition setting forth the grounds upon which the person 
  5.2   believes the standard set forth in this section for competitive 
  5.3   services regulation has not been met.  If the commission 
  5.4   determines after a hearing that the telephone company has failed 
  5.5   to meet the standard for competitive services regulation for a 
  5.6   particular class of services in a particular exchange, the 
  5.7   commission shall revoke the telephone company's competitive 
  5.8   regulation authority under sections 237.86 to 237.90 for those 
  5.9   services in the exchange in questions consistent with its 
  5.10  findings. 
  5.11     Sec. 6.  [237.87] [RATES FOR SERVICES SUBJECT TO 
  5.12  COMPETITIVE SERVICES REGULATION.] 
  5.13     Subdivision 1.  [PRICE AND SERVICE OFFERINGS.] A 
  5.14  competitive regulation telephone company may offer new local 
  5.15  services or change the prices, terms, or conditions of existing 
  5.16  local services as provided in this section for each class of 
  5.17  services in each exchange in which the commission has approved a 
  5.18  petition under section 237.86, subdivision 2. 
  5.19     Subd. 2.  [BASIC SERVICE RATES.] (a) A competitive 
  5.20  regulation telephone company shall not increase its monthly 
  5.21  one-party residential and one-party business rates and 
  5.22  nonrecurring basic service rates for three years after the 
  5.23  commission has approved a petition under section 237.86, 
  5.24  subdivision 2.  After three years, a basic services regulated 
  5.25  company may annually increase its monthly one-party residential 
  5.26  and one-party business rates and nonrecurring one-party 
  5.27  residential and one-party business installation service rates by 
  5.28  a percentage equal to or less than the inflation rate for the 
  5.29  prior year as measured by the Gross Domestic Product Price 
  5.30  Index, published by the federal government. 
  5.31     (b) Extended area service rates shall not be increased by a 
  5.32  competitive regulation telephone company without prior 
  5.33  commission approval. 
  5.34     (c) A competitive regulation telephone company may assess 
  5.35  special construction charges approved by the commission if 
  5.36  existing facilities are not available to the customer.  
  6.1      (d) Notwithstanding paragraph (a), a competitive regulation 
  6.2   telephone company may petition the commission and the commission 
  6.3   may authorize changes in residential or business local rates 
  6.4   associated with exongeous changes, including, but not limited 
  6.5   to, changes in the instrastate financial impact of: 
  6.6      (1) changes in intercarrier compensation; 
  6.7      (2) comprehensive local service rate restructuring; 
  6.8      (3) rate deaveraging; 
  6.9      (4) changes in universal service or funding payments; 
  6.10     (5) changes in local, state, or federal taxes; 
  6.11     (6) changes in the commission's application of 
  6.12  jurisdictional separation, the Uniform System of Accounts, or 
  6.13  other mandatory Financial Accounting Standards Board accounting 
  6.14  standards; 
  6.15     (7) assessments related to the use of telephone numbers, 
  6.16  including mandated number conservation efforts; and 
  6.17     (8) financial impacts of government mandates to construct 
  6.18  specific telecommunications infrastructure or develop systems. 
  6.19     Subd. 3.  [OTHER PRICES SUBJECT TO EFFECTIVE 
  6.20  COMPETITION.] A competitive regulation telephone company's 
  6.21  prices for its intrastate retail services, other than basic 
  6.22  services and extended area service rates, are not subject to any 
  6.23  rate or price regulation except that the commission may, upon 
  6.24  complaint, order a competitive regulation telephone company to 
  6.25  change a retail or wholesale price or pricing practice or take 
  6.26  other appropriate action if the commission determines, after an 
  6.27  investigation, that: 
  6.28     (1) the price or pricing practice unreasonably restricts 
  6.29  resale in violation of Minnesota Statutes, section 237.121, 
  6.30  paragraph (a), clause (5); 
  6.31     (2) the price or pricing practice is unreasonably 
  6.32  discriminatory in violation of subdivision 6; 
  6.33     (3) the price or pricing practice is deceptive, misleading, 
  6.34  fraudulent, as those terms are defined in state or federal law, 
  6.35  or is otherwise unlawful under state or federal law; 
  6.36     (4) the price or pricing practice has caused or will result 
  7.1   in substantial customer harm; or 
  7.2      (5) the price or pricing practice will impede the 
  7.3   development of fair and reasonable competition or reflects the 
  7.4   absence of an effectively competitive market. 
  7.5      Subd. 4.  [TARIFF CHANGES.] A competitive regulation 
  7.6   telephone company may offer new services or change the prices, 
  7.7   terms, or conditions of existing local service as permitted by 
  7.8   this section by filing amendments to its tariffs.  These tariff 
  7.9   filings take effect as follows: 
  7.10     (a) A new service, price decrease, promotion, or 
  7.11  insubstantial change in the terms or conditions of a service may 
  7.12  take effect immediately upon filing without prior notice to 
  7.13  customers. 
  7.14     (b) A price increase, a substantial change in a term or 
  7.15  condition of a service, or a discontinuation of a service other 
  7.16  than basic local service may take effect 20 days after filing 
  7.17  and providing written notice to affected customers as provided 
  7.18  in clauses (1) and (2): 
  7.19     (1) the written notice of a price increase must be given in 
  7.20  simple and clear language by bill insert, bill notice, or direct 
  7.21  mail.  To be simple and clear, the notice must bear the heading 
  7.22  "NOTICE OF PRICE INCREASE." 
  7.23     (2) the written notice of a substantial change in a term or 
  7.24  condition of service or of the discontinuance of a service must 
  7.25  be given in simple and clear language by bill insert, bill 
  7.26  notice, or direct mail.  To be simple and clear, the notice 
  7.27  must, at a minimum, bear a heading such as "NOTICE OF CHANGE IN 
  7.28  TERMS" or "NOTICE OF DISCONTINUANCE," as appropriate.  
  7.29     Subd. 5.  [COST INFORMATION.] The commission shall not 
  7.30  require a competitive regulation telephone company to file cost 
  7.31  information unless the commission determines that cost 
  7.32  information is needed to resolve a complaint or investigation 
  7.33  alleging that the competitive regulation telephone company is 
  7.34  violating a standard set forth in this section. 
  7.35     Subd. 6.  [DISCRIMINATION.] No competitive regulation 
  7.36  telephone company may offer competitive services within the 
  8.1   state on terms or rates that are unreasonably discriminatory.  
  8.2   At a minimum, a competitive regulation telephone company must 
  8.3   provide its competitive services in accordance with paragraphs 
  8.4   (a) to (c). 
  8.5      (a) A competitive regulation telephone company shall charge 
  8.6   uniform rates for local services within its service area.  
  8.7   However, a competitive regulation telephone company may, upon a 
  8.8   filing under subdivision 4:  
  8.9      (1) offer unique pricing to certain customers or to certain 
  8.10  geographic locations for promotions as provided in section 
  8.11  237.626 or customer incentives of the type offered by other 
  8.12  providers and may offer local service as part of a package that 
  8.13  may include goods and services other than telecommunications 
  8.14  services.  Nothing in this section is intended to give the 
  8.15  commission or department regulatory authority over 
  8.16  nontelecommunications services provided by the competitive 
  8.17  regulation telephone company; 
  8.18     (2) provide volume or term discounts; 
  8.19     (3) offer prices unique to particular customers, or groups 
  8.20  of customers, when differences in the cost of providing a 
  8.21  service, market conditions, or pricing practices of a competitor 
  8.22  justify a different price; 
  8.23     (4) pass through any legislatively authorized local taxes, 
  8.24  franchise fees, or special surcharges imposed by local or 
  8.25  regional governmental units on the services provided by the 
  8.26  competitive regulation telephone company in specific geographic 
  8.27  areas from which the taxes, fees, or surcharges originate; or 
  8.28     (5) furnish service free or at a reduced rate to its 
  8.29  officers, agents, or employees in furtherance of their 
  8.30  employment. 
  8.31     (b) A tariff providing for prices unique to particular 
  8.32  customers or groups of customers under paragraph (a), clause 
  8.33  (3), shall identify the service for which a unique price is 
  8.34  available and the conditions under which the unique price is 
  8.35  available. 
  8.36     (c) In addition to the exceptions provided in paragraph 
  9.1   (a), a competitive regulation telephone company may also charge 
  9.2   different rates for competitive local services within its 
  9.3   service territory upon a prior finding by the commission that 
  9.4   the competitive regulation telephone company has good cause to 
  9.5   do so. 
  9.6      Subd. 7.  [PROTECTION FROM ANTICOMPETITIVE PRICING.] This 
  9.7   subdivision applies to prices governed by this section other 
  9.8   than one single-line local residential voice service or one 
  9.9   single-line local business voice telephone service.  A 
  9.10  competitive regulation telephone company must not price its 
  9.11  local telephone services, whether offered singly or as part of a 
  9.12  bundle of services, below the total service long-run incremental 
  9.13  cost of providing the service or services.  
  9.14     Subd. 8.  [RETAIL SERVICES ONLY.] The provisions of this 
  9.15  section apply only to retail services.  
  9.16     Subd. 9.  [WHOLESALE OBLIGATIONS UNDER STATE AND FEDERAL 
  9.17  LAW.] Nothing in this section shall alter any wholesale 
  9.18  obligation of a competitive regulation telephone company under 
  9.19  state or federal law or the ability of the commission to enforce 
  9.20  applicable provisions of state or federal law. 
  9.21     Subd. 10.  [COMPLAINTS.] The commission may investigate on 
  9.22  its own motion or upon a complaint an alleged violation of this 
  9.23  section.  If the commission finds by a preponderance of the 
  9.24  evidence after a proceeding that existing rates, tariffs, 
  9.25  charges, schedules, or practices violate an applicable provision 
  9.26  of this chapter, the commission shall take appropriate action, 
  9.27  which may include ordering the competitive regulation telephone 
  9.28  company to; 
  9.29     (1) change the rate, tariff, charge, schedule, or practice; 
  9.30     (2) make the service reasonable, adequate, or obtainable; 
  9.31  or 
  9.32     (3) take other appropriate action. 
  9.33     Sec. 7.  [237.88] [RATES NOT SUBJECT TO EFFECTIVE 
  9.34  COMPETITION.] 
  9.35     A competitive regulation telephone company's rates for 
  9.36  services in exchanges which the commission has not permitted to 
 10.1   be regulated under sections 237.86 to 237.90 shall be regulated 
 10.2   as otherwise provided in this chapter, except that a new 
 10.3   alternative form of regulation plan may apply only to those 
 10.4   services which have not been determined to be subject to 
 10.5   competitive services regulation or have been exempted from rate 
 10.6   regulation under section 237.411. 
 10.7      Sec. 8.  [237.89] [AFOR SERVICE QUALITY; INTERIM 
 10.8   PROVISION.] 
 10.9      A competitive regulation telephone company shall comply 
 10.10  with the service quality standards, penalties, and remedies in 
 10.11  an AFOR plan in effect on June 1, 2005, until one year after the 
 10.12  commission authorizes competitive regulation for that telephone 
 10.13  company or the expiration of the AFOR plan, whichever is 
 10.14  earlier.  After that time, competitive services are subject to 
 10.15  commission service quality rules of general applicability. 
 10.16     Sec. 9.  [237.90] [APPLICABILITY OF OTHER LAWS; 
 10.17  COMMISSION.] 
 10.18     A competitive regulation telephone company is not subject 
 10.19  to rate-of-return regulation or the earnings investigations 
 10.20  provisions of sections 237.075, 237.081, and 237.22 during the 
 10.21  term of the election.  Except as specifically provided in this 
 10.22  section, the commission retains all authority under this chapter 
 10.23  and competitive regulation telephone companies are subject to 
 10.24  the requirements of this chapter and rules of the commission, 
 10.25  including, but not limited to, laws and rules relating to the 
 10.26  provider of last resort obligations and service quality. 
 10.27     Sec. 10.  Laws 1999, chapter 224, section 7, as amended by 
 10.28  Laws 2004, chapter 261, article 6, section 3, is amended to read:
 10.29     Sec. 7.  [SUNSET.] 
 10.30     Sections 2 and 4 expire on August 1, 2005, and Minnesota 
 10.31  Statutes 1998, sections 237.63, 237.65, and 237.68, expire on 
 10.32  December 31, 2004. 
 10.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 10.34  following final enactment. 
 10.35     Sec. 11.  [ANTISLAMMING AND OTHER FRAUD.] 
 10.36     Nothing in this act undermines or changes the consumer 
 11.1   protection laws found in Minnesota Statutes, sections 237.661; 
 11.2   237.663; and 237.665; or 325F.692. 
 11.3                              ARTICLE 2
 11.4                            PER NUMBER FEE
 11.5      Section 1.  Minnesota Statutes 2004, section 237.295, 
 11.6   subdivision 1, is amended to read: 
 11.7      Subdivision 1.  [PAYMENT FOR INVESTIGATION FILING FEE FOR 
 11.8   NEW AUTHORITY.] (a) Whenever the department or commission, in a 
 11.9   proceeding upon its own motion, on complaint, or upon an 
 11.10  application to it, considers it necessary, in order to carry out 
 11.11  the duties imposed on it, to investigate the books, accounts, 
 11.12  practices, and activities of any company, parties to the 
 11.13  proceeding shall pay the expenses reasonably attributable to the 
 11.14  proceeding.  The department and commission shall ascertain the 
 11.15  expenses, and the department shall render a bill for those 
 11.16  expenses to the parties, at the conclusion of the proceeding.  
 11.17  The department is authorized to submit billings to parties at 
 11.18  intervals selected by the department during the course of a 
 11.19  proceeding.  
 11.20     (b) The allocation of costs may be adjusted for cause by 
 11.21  the commission during the course of the proceeding, or upon the 
 11.22  closing of the docket and issuance of an order.  In addition to 
 11.23  the rights granted in subdivision 3, parties to a proceeding may 
 11.24  object to the allocation at any time during the proceeding.  
 11.25  Withdrawal by a party to a proceeding does not absolve the party 
 11.26  from paying allocated costs as determined by the commission.  
 11.27  The commission may decide that a party should not pay any 
 11.28  allocated costs of the proceeding.  
 11.29     (c) The bill constitutes notice of the assessment and a 
 11.30  demand for payment.  The amount of the bills assessed by the 
 11.31  department under this subdivision must be paid by the parties 
 11.32  into the state treasury within 30 days from the date of 
 11.33  assessment.  The total amount, in a calendar year, for which a 
 11.34  telephone company may become liable, by reason of costs incurred 
 11.35  by the department and commission within that calendar year, may 
 11.36  not exceed two-fifths of one percent of the gross jurisdictional 
 12.1   operating revenue of the telephone company in the last preceding 
 12.2   calendar year.  Direct charges may be assessed without regard to 
 12.3   this limitation until the gross jurisdictional operating revenue 
 12.4   of the telephone company for the preceding calendar year has 
 12.5   been reported for the first time.  Where, under this 
 12.6   subdivision, costs are incurred within a calendar year that are 
 12.7   in excess of two-fifths of one percent of the gross 
 12.8   jurisdictional operating revenues, the excess costs are not 
 12.9   chargeable as part of the remainder under subdivision 2. 
 12.10     (d) Except as otherwise provided in paragraph (e), for 
 12.11  purposes of assessing the cost of a proceeding to a party, 
 12.12  "party" means any entity or group subject to the laws and rules 
 12.13  of this state, however organized, whether public or private, 
 12.14  whether domestic or foreign, whether for profit or nonprofit, 
 12.15  and whether natural, corporate, or political, such as a business 
 12.16  or commercial enterprise organized as any type or combination of 
 12.17  corporation, limited liability company, partnership, limited 
 12.18  liability partnership, proprietorship, association, cooperative, 
 12.19  joint venture, carrier, or utility, and any successor or 
 12.20  assignee of any of them; a social or charitable organization; 
 12.21  and any type or combination of political subdivision, which 
 12.22  includes the executive, judicial, or legislative branch of the 
 12.23  state, a local government unit, an agency of the state or a 
 12.24  local government unit, or a combination of any of them.  
 12.25     (e) For assessment and billing purposes, "party" does not 
 12.26  include the Department of Commerce or the Residential Utilities 
 12.27  Division of the Office of Attorney General; any entity or group 
 12.28  instituted primarily for the purpose of mutual help and not 
 12.29  conducted for profit; intervenors awarded compensation under 
 12.30  section 237.075, subdivision 10; or any individual or group or 
 12.31  counsel for the individual or group representing the interests 
 12.32  of end users or classes of end users of services provided by 
 12.33  telephone companies or telecommunications carriers, as 
 12.34  determined by the commission An application for a new authority 
 12.35  must be accompanied by a payment not to exceed $2,000 as 
 12.36  determined by the Public Utilities Commission.  This fee will be 
 13.1   reviewed annually and adjusted accordingly.  
 13.2      Sec. 2.  Minnesota Statutes 2004, section 237.295, 
 13.3   subdivision 2, is amended to read: 
 13.4      Subd. 2.  [ASSESSMENT OF COSTS.] The department and 
 13.5   commission shall quarterly, at least 30 days before the start of 
 13.6   each quarter, estimate the total of their expenditures in the 
 13.7   performance of their duties relating to telephone companies, 
 13.8   other than amounts chargeable to telephone companies under 
 13.9   subdivision 1, 5, or 6.  The remainder must be assessed by the 
 13.10  department to the telephone companies operating in this state in 
 13.11  proportion to their respective gross jurisdictional operating 
 13.12  revenues during the last calendar year.  The assessment must be 
 13.13  paid into the state treasury within 30 days after the bill has 
 13.14  been mailed to the telephone companies.  The bill constitutes 
 13.15  notice of the assessment and demand of payment.  The total 
 13.16  amount that may be assessed to the telephone companies under 
 13.17  this subdivision may not exceed one-eighth of one percent of the 
 13.18  total gross jurisdictional operating revenues during the 
 13.19  calendar year.  The assessment for the third quarter of each 
 13.20  fiscal year must be adjusted to compensate for the amount by 
 13.21  which actual expenditures by the commission and department for 
 13.22  the preceding fiscal year were more or less than the estimated 
 13.23  expenditures previously assessed.  A telephone company with 
 13.24  gross jurisdictional operating revenues of less than $5,000 is 
 13.25  exempt from assessments under this subdivision. 
 13.26     Sec. 3.  [237.491] [COMBINED PER NUMBER FEE.] 
 13.27     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 13.28  subdivision apply to this section. 
 13.29     (b) "911 emergency and public safety communications program"
 13.30  means the program governed by chapter 403. 
 13.31     (c) "Service provider" means a provider doing business in 
 13.32  Minnesota who provides real time, two-way voice service with a 
 13.33  Minnesota telephone number.  "Minnesota telephone number" means 
 13.34  a ten-digit telephone number being used to connect to the public 
 13.35  switched telephone network and starting with area code 651, 612, 
 13.36  763, 952, 320, 218, or 507, or any subsequent area code assigned 
 14.1   to Minnesota. 
 14.2      (d) "Telecommunications access Minnesota program" means the 
 14.3   program governed by sections 237.50 to 237.55. 
 14.4      (e) "Telephone assistance program" means the program 
 14.5   governed by sections 237.69 to 237.711. 
 14.6      Subd. 2.  [PER NUMBER FEE.] (a) By July 1, 2006, the Public 
 14.7   Utilities Commission shall establish a fee that applies to each 
 14.8   service provider based upon the number of Minnesota telephone 
 14.9   numbers in use by current customers of the service provider.  
 14.10  The fee must be set at a level calculated to generate only the 
 14.11  amount of revenue necessary to fund: 
 14.12     (1) the telephone assistance program and the 
 14.13  telecommunications access Minnesota program at the levels 
 14.14  established by the commission under sections 237.52, subdivision 
 14.15  2, and 237.70; and 
 14.16     (2) the 911 emergency and public safety communications 
 14.17  program at the levels certified by the commissioner of public 
 14.18  safety for purposes of sections 403.11, 403.113, 403.27, 403.30, 
 14.19  and 403.31 for current fiscal years. 
 14.20     (b) Notwithstanding any law to the contrary, the Public 
 14.21  Utilities Commission shall, by order, establish the procedures 
 14.22  by which each service provider, to the extent allowed under 
 14.23  federal law, shall collect and remit the fee proceeds to the 
 14.24  Department of Revenue.  The commissioner of revenue shall 
 14.25  allocate the fee proceeds to the three funding areas in 
 14.26  paragraph (a) and shall deposit the allocations into the 
 14.27  appropriate accounts. 
 14.28     (c) The per access line fee used to collect revenues to 
 14.29  support the TAP, TAM, and 911 programs shall remain in effect 
 14.30  until replaced by the per telephone number fee.  
 14.31     Sec. 4.  Minnesota Statutes 2004, section 237.69, 
 14.32  subdivision 16, is amended to read: 
 14.33     Subd. 16.  [TELEPHONE ASSISTANCE PLAN.] "Telephone 
 14.34  assistance plan" means the plan to be adopted by the commission 
 14.35  and to be jointly administered by the commission, the Department 
 14.36  of Human Services, and the telephone companies, Commerce, and 
 15.1   the local service providers, as required by sections 237.69 to 
 15.2   237.711. 
 15.3      Sec. 5.  Minnesota Statutes 2004, section 237.69, is 
 15.4   amended by adding a subdivision to read: 
 15.5      Subd. 18.  [LOCAL SERVICE PROVIDER.] "Local service 
 15.6   provider" means:  
 15.7      (1) a telephone company or telecommunications carrier 
 15.8   providing local service in Minnesota pursuant to a certificate 
 15.9   of authority granted by the commission; or 
 15.10     (2) a commercial mobile radio service (CMRS) provider, 
 15.11  personal communications services (PCS) provider, or other 
 15.12  wireless provider offering the functional equivalent of CMRS or 
 15.13  PCS in Minnesota, which has been designated by the commission as 
 15.14  an eligible telecommunications carrier in Minnesota pursuant to 
 15.15  47 United States Code, section 214, and relevant federal 
 15.16  regulations.  
 15.17     Sec. 6.  Minnesota Statutes 2004, section 237.70, 
 15.18  subdivision 2, is amended to read: 
 15.19     Subd. 2.  [SCOPE.] The telephone assistance plan must be 
 15.20  statewide and apply to local service providers that provide 
 15.21  local exchange service in Minnesota.  
 15.22     Sec. 7.  Minnesota Statutes 2004, section 237.70, 
 15.23  subdivision 5, is amended to read: 
 15.24     Subd. 5.  [NATURE AND EXTENT OF CREDITS.] The telephone 
 15.25  assistance plan may provide for telephone assistance credits to 
 15.26  eligible households up to the amounts available under the 
 15.27  federal matching plan.  However, the credits available under the 
 15.28  telephone assistance plan may not exceed: 
 15.29     (1) more than 50 percent of the local exchange rate charged 
 15.30  for the local exchange service provided to the household by that 
 15.31  household's local service provider; and 
 15.32     (2) the level of credits that can actually be funded in 
 15.33  accordance with the limitations contained in subdivision 6. 
 15.34     Sec. 8.  Minnesota Statutes 2004, section 237.701, 
 15.35  subdivision 1, is amended to read: 
 15.36     Subdivision 1.  [FUND CREATED; AUTHORIZED EXPENDITURES.] 
 16.1   The telephone assistance fund is created as a separate account 
 16.2   in the state treasury to consist of amounts received by the 
 16.3   commissioner of public safety representing the surcharge 
 16.4   authorized by section 237.70, subdivision 6, and amounts earned 
 16.5   on the fund assets.  Money in the fund may be used only for: 
 16.6      (1) reimbursement to local service providers for expenses 
 16.7   and credits allowed in section 237.70, subdivision 7, paragraph 
 16.8   (d), clause (5); 
 16.9      (2) reimbursement of the reasonable administrative expenses 
 16.10  of the commission not to exceed $25,000 annually, a portion of 
 16.11  which may be used for periodic promotional activities, 
 16.12  including, but not limited to, radio or newspaper 
 16.13  advertisements, to inform eligible households of the 
 16.14  availability of the telephone assistance program; and 
 16.15     (3) reimbursement of the statewide indirect cost of the 
 16.16  commission. 
 16.17     Sec. 9.  [325F.991] [911 EMERGENCY PHONE SERVICE 
 16.18  REPRESENTATIONS.] 
 16.19     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 16.20  section, the terms defined in this subdivision have the meanings 
 16.21  given them.  
 16.22     (a) "911 emergency telecommunications system" means a 
 16.23  dedicated emergency telecommunications system required by 
 16.24  section 403.025. 
 16.25     (b) "Person" means an individual, corporation, firm, or 
 16.26  other legal entity.  
 16.27     (c) "Service provider" means a person doing business in 
 16.28  Minnesota who provides real time, two-way voice service 
 16.29  interconnected with the public switched telephone network using 
 16.30  numbers allocated for Minnesota by the North American Numbering 
 16.31  Plan Administration.  
 16.32     Subd. 2.  [REPRESENTATIONS OF 911 SERVICE.] A person shall 
 16.33  not advertise, market, or otherwise represent that the person 
 16.34  furnishes a service capable of providing access to emergency 
 16.35  services by dialing 911 unless the person provides a service 
 16.36  that routes 911 calls through the 911 emergency 
 17.1   telecommunications system.  
 17.2      Subd. 3.  [DISCLOSURE.] A service provider that does not 
 17.3   provide 911 dialing that routes 911 calls through the 911 
 17.4   emergency telecommunications system must disclose that fact in 
 17.5   all advertisements, marketing materials, and contracts.  The 
 17.6   disclosure must be in capital letters, in 12-point font, and on 
 17.7   the front page of the advertisement, marketing materials, and 
 17.8   contracts.  The disclosure must state:  "THIS SERVICE DOES NOT 
 17.9   ROUTE 911 CALLS THROUGH THE 911 EMERGENCY SYSTEM." 
 17.10     Subd. 4.  [CERTAIN CALLS NOT 911 CALLS.] For purposes of 
 17.11  this section, 911 calls routed to the general access number at a 
 17.12  public safety answering point do not qualify as being routed 
 17.13  through a 911 emergency telecommunications system. 
 17.14     Sec. 10.  Minnesota Statutes 2004, section 403.06, 
 17.15  subdivision 1a, is amended to read: 
 17.16     Subd. 1a.  [BIENNIAL BUDGET; ANNUAL FINANCIAL REPORT.] The 
 17.17  commissioner shall prepare a biennial budget for maintaining the 
 17.18  911 system.  By December 15 of each year, the commissioner shall 
 17.19  submit a report to the legislature detailing the expenditures 
 17.20  for maintaining the 911 system, the 911 fees collected deposited 
 17.21  by the Department of Revenue, the balance of the 911 fund, and 
 17.22  the 911-related administrative expenses of the commissioner.  
 17.23  The commissioner is authorized to expend money that has been 
 17.24  appropriated to pay for the maintenance, enhancements, and 
 17.25  expansion of the 911 system. 
 17.26     Sec. 11.  Minnesota Statutes 2004, section 403.11, 
 17.27  subdivision 1, is amended to read: 
 17.28     Subdivision 1.  [EMERGENCY TELECOMMUNICATIONS SERVICE FEE.] 
 17.29  (a) Each customer of a wireless or wire-line telecommunications 
 17.30  service provider that furnishes service capable of originating a 
 17.31  911 emergency telephone call is assessed a fee under section 
 17.32  237.491 to cover the costs of ongoing maintenance and related 
 17.33  improvements for trunking and central office switching equipment 
 17.34  for 911 emergency telecommunications service, plus 
 17.35  administrative and staffing costs of the commissioner related to 
 17.36  managing the 911 emergency telecommunications service program.  
 18.1   Recurring charges by a wire-line telecommunications service 
 18.2   provider for updating the information required by section 
 18.3   403.07, subdivision 3, must be paid by the commissioner if the 
 18.4   wire-line telecommunications service provider is included in an 
 18.5   approved 911 plan and the charges are made pursuant to tariff, 
 18.6   price list, or contract.  A portion of the fee assessed under 
 18.7   this section 237.491 must also be used for the purpose of 
 18.8   offsetting the costs, including administrative and staffing 
 18.9   costs, incurred by the State Patrol Division of the Department 
 18.10  of Public Safety in handling 911 emergency calls made from 
 18.11  wireless phones.  
 18.12     (b) Money remaining in the 911 emergency telecommunications 
 18.13  service account after all other obligations are paid must not 
 18.14  cancel and is carried forward to subsequent years and may be 
 18.15  appropriated from time to time to the commissioner to provide 
 18.16  financial assistance to counties for the improvement of local 
 18.17  emergency telecommunications services.  The improvements may 
 18.18  include providing access to 911 service for telecommunications 
 18.19  service subscribers currently without access and upgrading 
 18.20  existing 911 service to include automatic number identification, 
 18.21  local location identification, automatic location 
 18.22  identification, and other improvements specified in revised 
 18.23  county 911 plans approved by the commissioner. 
 18.24     (c) The fee may not be less than eight cents nor more than 
 18.25  40 cents a month for each customer access line or other basic 
 18.26  access service, including trunk equivalents as designated by the 
 18.27  Public Utilities Commission for access charge purposes and 
 18.28  including wireless telecommunications services.  With the 
 18.29  approval of the commissioner of finance, the commissioner of 
 18.30  public safety shall establish the amount of the fee within the 
 18.31  limits specified and inform the companies and carriers of the 
 18.32  amount to be collected.  When the revenue bonds authorized under 
 18.33  section 403.27, subdivision 1, have been fully paid or defeased, 
 18.34  the commissioner shall reduce the fee to reflect that debt 
 18.35  service on the bonds is no longer needed.  The commissioner 
 18.36  shall provide companies and carriers a minimum of 45 days' 
 19.1   notice of each fee change.  The fee must be the same for all 
 19.2   customers.  
 19.3      (d) The fee must be collected by each wireless or wire-line 
 19.4   telecommunications service provider subject to the fee.  Fees 
 19.5   are payable to and must be submitted to the commissioner monthly 
 19.6   before the 25th of each month following the month of collection, 
 19.7   except that fees may be submitted quarterly if less than $250 a 
 19.8   month is due, or annually if less than $25 a month is due.  
 19.9   Receipts must be deposited in the state treasury and credited to 
 19.10  a 911 emergency telecommunications service account in the 
 19.11  special revenue fund.  The money in the account may only be used 
 19.12  for 911 telecommunications services. 
 19.13     (e) This subdivision does not apply to customers of 
 19.14  interexchange carriers. 
 19.15     (f) (d) The installation and recurring charges for 
 19.16  integrating wireless 911 calls into enhanced 911 systems must be 
 19.17  paid by the commissioner if the 911 service provider is included 
 19.18  in the statewide design plan and the charges are made pursuant 
 19.19  to tariff, price list, or contract. 
 19.20     Sec. 12.  Minnesota Statutes 2004, section 403.113, 
 19.21  subdivision 1, is amended to read: 
 19.22     Subdivision 1.  [FEE GRANT.] (a) Each customer receiving 
 19.23  service from a wireless or wire-line telecommunications service 
 19.24  provider is assessed a fee The commissioner shall budget for and 
 19.25  provide grants to PSAPs to fund implementation, operation, 
 19.26  maintenance, enhancement, and expansion of enhanced 911 service, 
 19.27  including acquisition of necessary equipment and the costs of 
 19.28  the commissioner to administer the program.  The actual fee 
 19.29  assessed under section 403.11 and the enhanced 911 service fee 
 19.30  must be collected as one amount and may not exceed the amount 
 19.31  specified in section 403.11, subdivision 1, paragraph (c). 
 19.32     (b) The enhanced 911 service fee must be collected and 
 19.33  deposited in the same manner as the fee in section 403.11 and 
 19.34  used solely for the purposes of paragraph (a) and subdivision 3. 
 19.35     (c) The commissioner, in consultation with counties and 911 
 19.36  system users, shall determine the amount of the enhanced 911 
 20.1   service fee grant.  The fee grant must include at least ten 
 20.2   cents per month the amount funded in fiscal year 2005 to be 
 20.3   distributed under subdivision 2.  The commissioner shall inform 
 20.4   wireless and wire-line telecommunications service providers that 
 20.5   provide service capable of originating a 911 emergency telephone 
 20.6   call of the total amount of the 911 service fees in the same 
 20.7   manner as provided in section 403.11. 
 20.8      Sec. 13.  Minnesota Statutes 2004, section 403.30, 
 20.9   subdivision 1, is amended to read: 
 20.10     Subdivision 1.  [STANDING APPROPRIATION; COSTS COVERED.] 
 20.11  For each fiscal year beginning with the fiscal year commencing 
 20.12  July 1, 1997, the amount necessary to pay the following costs is 
 20.13  appropriated to the commissioner of public safety from the 911 
 20.14  emergency telecommunications service account established under 
 20.15  section 403.11: 
 20.16     (1) debt service costs and reserves for bonds issued 
 20.17  pursuant to section 403.27; 
 20.18     (2) repayment of the right-of-way acquisition loans; 
 20.19     (3) costs of design, construction, maintenance of, and 
 20.20  improvements to those elements of the first, second, and third 
 20.21  phases that support mutual aid communications and emergency 
 20.22  medical services; 
 20.23     (4) recurring charges for leased sites and equipment for 
 20.24  those elements of the first, second, and third phases that 
 20.25  support mutual aid and emergency medical communication services; 
 20.26  or 
 20.27     (5) aid to local units of government for sites and 
 20.28  equipment in support of mutual aid and emergency medical 
 20.29  communications services. 
 20.30     This appropriation shall be used to pay annual debt service 
 20.31  costs and reserves for bonds issued pursuant to section 403.27 
 20.32  prior to use of fee money to pay other costs eligible under this 
 20.33  subdivision.  In no event shall the appropriation for each 
 20.34  fiscal year exceed an amount equal to four cents a month for 
 20.35  each customer access line or other basic access service, 
 20.36  including trunk equivalents as designated by the Public 
 21.1   Utilities Commission for access charge purposes and including 
 21.2   cellular and other nonwire access services, in the fiscal 
 21.3   year 4/40 of the amount collected by the fiscal year 2005 911 
 21.4   fee.  Beginning July 1, 2004 2005, this amount will increase 
 21.5   to 13 cents a month 13/40 of the amount collected by the fiscal 
 21.6   year 2005 911 fee. 
 21.7      Sec. 14.  [REPEALER.] 
 21.8      (a) Minnesota Statutes 2004, section 237.69, subdivisions 5 
 21.9   and 17, are repealed. 
 21.10     (b) Laws 1999, chapter 125, section 4, as amended by Laws 
 21.11  2002, chapter 398, section 2, is repealed.  
 21.12     Sec. 15.  [EFFECTIVE DATE.] 
 21.13     Sections 1 to 14 are effective the day following final 
 21.14  enactment. 
 21.15                             ARTICLE 3
 21.16                        WIRELESS DIRECTORIES
 21.17     Section 1.  [325E.317] [DEFINITIONS 
 21.18     Subdivision 1.  [SCOPE.] For the purposes of sections 
 21.19  325E.317 and 325E.318, the terms defined in this section have 
 21.20  the meanings given them. 
 21.21     Subd. 2.  [PROVIDER.] "Provider" means a provider of 
 21.22  wireless telecommunications services. 
 21.23     Subd. 3.  [TELECOMMUNICATIONS 
 21.24  SERVICES.] "Telecommunications services" has the meaning given 
 21.25  in section 297A.61, subdivision 24, paragraph (a). 
 21.26     Subd. 4.  [WIRELESS DIRECTORY ASSISTANCE 
 21.27  SERVICE.] "Wireless directory assistance service" means any 
 21.28  service for connecting calling parties to a wireless 
 21.29  telecommunications services customer when the calling parties 
 21.30  themselves do not possess the customer's wireless telephone 
 21.31  number information. 
 21.32     Subd. 5.  [WIRELESS TELECOMMUNICATIONS SERVICES.] "Wireless 
 21.33  telecommunications services" has the meaning given in section 
 21.34  325F.695. 
 21.35     Subd. 6.  [WIRELESS TELEPHONE DIRECTORY.] "Wireless 
 21.36  telephone directory" means a directory or database containing 
 22.1   wireless telephone number information or any other identifying 
 22.2   information by which a calling party may reach a wireless 
 22.3   telecommunications services customer. 
 22.4      Subd. 7.  [WIRELESS TELEPHONE NUMBER 
 22.5   INFORMATION.] "Wireless telephone number information" means the 
 22.6   telephone number, electronic address, and any other identifying 
 22.7   information by which a calling party may reach a wireless 
 22.8   telecommunications services customer, which is assigned by a 
 22.9   provider to the customer and includes the customer's name and 
 22.10  address. 
 22.11     Sec. 2.  [325E.318] [WIRELESS DIRECTORIES.] 
 22.12     Subdivision 1.  [NOTICE.] No provider of wireless 
 22.13  telecommunications service, or any direct or indirect affiliate 
 22.14  or agent of a provider, may include the wireless telephone 
 22.15  number information of a customer in a wireless telephone 
 22.16  directory assistance service database or publish, sell, or 
 22.17  otherwise disseminate the contents of a wireless telephone 
 22.18  directory assistance service database unless the provider 
 22.19  provides a conspicuous notice to the subscriber informing the 
 22.20  subscriber that the subscriber will not be listed in a wireless 
 22.21  directory assistance service database without the subscriber's 
 22.22  prior express authorization. 
 22.23     Subd. 2.  [AUTHORIZATION.] (a) A provider, or any direct or 
 22.24  indirect affiliate or agent of a provider, may not disclose, 
 22.25  provide, or sell a customer's wireless telephone number 
 22.26  information, or any part thereof, for inclusion in a wireless 
 22.27  telephone directory of any form, and may not sell a wireless 
 22.28  telephone directory containing a customer's wireless telephone 
 22.29  number information without first receiving prior express 
 22.30  authorization from the customer.  The customer's authorization 
 22.31  must meet the following requirements: 
 22.32     (1) consent shall be affirmatively obtained separately from 
 22.33  the execution of the service contract via verifiable means; and 
 22.34     (2) consent shall be unambiguous and conspicuously disclose 
 22.35  that the subscriber is consenting to have the customer's dialing 
 22.36  number sold or licensed as part of a publicly available 
 23.1   directory assistance database. 
 23.2      (b) A record of the authorization shall be maintained for 
 23.3   the duration of the service contract or any extension of the 
 23.4   contract. 
 23.5      (c) A subscriber who provides express consent pursuant to 
 23.6   paragraph (a) may revoke that consent at any time.  A provider 
 23.7   must comply with the customer's request to be removed from the 
 23.8   directory and remove such listing from directory assistance 
 23.9   within 60 days. 
 23.10     Subd. 3.  [NO FEE TO RETAIN PRIVACY.] A customer shall not 
 23.11  be charged for opting not to be listed in a wireless telephone 
 23.12  directory. 
 23.13     Subd. 4.  [REMEDIES.] A person who violates this section is 
 23.14  subject to the remedies under section 8.31, except subdivision 
 23.15  3a. 
 23.16     Sec. 3.  [EFFECTIVE DATE.] 
 23.17     Sections 1 and 2 are effective the day following final 
 23.18  enactment. 
 23.19                             ARTICLE 4
 23.20                          CABLE FRANCHISE
 23.21     Section 1.  Minnesota Statutes 2004, section 238.08, 
 23.22  subdivision 1, is amended to read: 
 23.23     Subdivision 1.  [REQUIREMENT; CONDITIONS.] (a) A 
 23.24  municipality or its joint commission created pursuant to 
 23.25  subdivision 5 shall require a franchise or extension permit of 
 23.26  any cable communications system providing service within the 
 23.27  municipality.  
 23.28     (b) No municipality or its joint commission shall grant an 
 23.29  additional franchise for cable service for an area included in 
 23.30  an existing franchise on terms and conditions more favorable or 
 23.31  less burdensome than those in the existing franchise pertaining 
 23.32  to:  (1) the area served; (2) public, educational, or 
 23.33  governmental access requirements; or (3) (2) franchise fees.  
 23.34  The provisions of this paragraph shall not apply when the area 
 23.35  in which the additional franchise is being sought is not 
 23.36  actually being served by any existing cable communications 
 24.1   system holding a franchise for the area.  Nothing in this 
 24.2   paragraph prevents a municipality from imposing additional terms 
 24.3   and conditions on any additional franchises The provisions of 
 24.4   this paragraph shall not apply when the area in which the 
 24.5   additional franchise is being sought is not actually being 
 24.6   served by any existing cable communications system holding a 
 24.7   franchise for the area.  Nothing in this paragraph prevents a 
 24.8   municipality from imposing additional terms and conditions on 
 24.9   any additional franchises related to the unserved area.  The 
 24.10  grant of an additional franchise may include an area for cable 
 24.11  service similar to that in an existing franchise or another area 
 24.12  that the municipality or its joint commission determines is 
 24.13  necessary or desirable to reasonably meet the needs of the 
 24.14  municipality or its joint commission.  If an additional 
 24.15  franchise area is not similar to an existing franchise area, the 
 24.16  municipality or joint commission shall ensure that access to 
 24.17  cable service is not denied because of the income status of 
 24.18  subscribers.  Additional franchises must be granted or rejected 
 24.19  by a municipality or joint commission within 120 days of an 
 24.20  application deemed complete in compliance with section 238.081, 
 24.21  subdivision 4, by the municipality or the joint commission 
 24.22  unless the date is extended by mutual agreement of the applicant 
 24.23  and the municipality or its joint commission. 
 24.24     Sec. 2.  Minnesota Statutes 2004, section 238.08, is 
 24.25  amended by adding a subdivision to read: 
 24.26     Subd. 1a.  [LOCAL PUBLIC, EDUCATIONAL, AND GOVERNMENTAL 
 24.27  ACCESS CHANNELS.] (a) An additional franchisee must ensure that 
 24.28  all subscribers receive local public, educational, governmental 
 24.29  access and public local origination channels within the 
 24.30  additional franchisee's franchise area. 
 24.31     (b) An additional franchise must ensure that all 
 24.32  subscribers receive local public, educational, and governmental 
 24.33  access channels and public local origination channels as 
 24.34  specified in the existing franchise and on the same channel 
 24.35  numbers as the existing franchisee.  Every cable franchisee 
 24.36  shall permit any other franchisee to interconnect all local 
 25.1   public, educational, governmental access, and public local 
 25.2   origination programming and channel feeds.  The municipality or 
 25.3   its joint commission shall determine all terms and conditions of 
 25.4   such interconnection to permit the interconnection and provision 
 25.5   of the public, educational, and governmental services.  The 
 25.6   municipality or its joint commission may require that such 
 25.7   interconnection occur on government property or on public 
 25.8   rights-of-way.  The costs of connection to the existing 
 25.9   franchisee's public, educational, governmental access and public 
 25.10  local origination programming and channel feeds must be borne by 
 25.11  the additional franchisee. 
 25.12     (c) An additional franchise provider shall make financial 
 25.13  contributions that are equivalent on a per customer basis or 
 25.14  mutually agreed upon terms, proportionate to contributions made 
 25.15  to the public, educational, and government access service, 
 25.16  facilities, and equipment provided or made available by the 
 25.17  existing franchise provider. 
 25.18     (d) A municipality or its joint commission may not impose 
 25.19  public, educational, and governmental access, local origination, 
 25.20  institutional network, or other obligations on the additional 
 25.21  franchisee that would exceed those imposed on the existing 
 25.22  franchisee. 
 25.23     Sec. 3.  [EFFECTIVE DATE.] 
 25.24     Sections 1 and 2 are effective the day following final 
 25.25  enactment. 
 25.26                             ARTICLE 5
 25.27                  TASK FORCE ON TELECOMMUNICATIONS
 25.28     Section 1.  [JOINT LEGISLATIVE TASK FORCE ON 
 25.29  TELECOMMUNICATIONS.] 
 25.30     (a) The joint legislative task force on telecommunications 
 25.31  is created.  It consists of five members from each body of the 
 25.32  Minnesota legislature, two of whom must be from the minority 
 25.33  caucus in each body, to be designated by the chairs of the 
 25.34  senate and house committees having subject matter responsibility 
 25.35  for telecommunications.  The cochairs are the respective chairs 
 25.36  of the senate and house committees having subject matter 
 26.1   responsibility for telecommunications, or their designees.  
 26.2   Members must include at least one representative from the 
 26.3   following stakeholder groups recommended by the legislative 
 26.4   members of the task force and invited to participate by the 
 26.5   cochairs: 
 26.6      (1) Minnesota Telecommunications Alliance; 
 26.7      (2) competitive local exchange carriers; 
 26.8      (3) large ILECS; 
 26.9      (4) small ILECS; 
 26.10     (5) long-distance providers; 
 26.11     (6) wireless providers; 
 26.12     (7) cable services providers; 
 26.13     (8) Internet service; 
 26.14     (9) VOIP providers; 
 26.15     (10) cable services administrator associations; 
 26.16     (11) municipal associations; 
 26.17     (12) municipal utilities associations; 
 26.18     (13) residential consumer associations (two members); 
 26.19     (14) business consumer associations (two members); 
 26.20     (15) office of the attorney general; 
 26.21     (16) Department of Commerce; and 
 26.22     (17) Public Utilities Commission (ex officio). 
 26.23     (b) The task force must: 
 26.24     (1) conduct a full review of existing Minnesota 
 26.25  telecommunications regulation and rules in chapters 237 and 238; 
 26.26  and 
 26.27     (2) make recommendations for revision of Minnesota 
 26.28  telecommunications regulation and rules by January 15, 2006, to 
 26.29  the Minnesota Senate Jobs, Energy and Community Development 
 26.30  Committee and to the Minnesota House Regulated Industries 
 26.31  Committee.  
 26.32     (c) On request by the cochairs of the task force, the 
 26.33  commissioner of commerce shall assess from telephone companies, 
 26.34  in addition to assessments made under section 237.295, the 
 26.35  amount requested for the operation of the task force but not to 
 26.36  exceed $100,000 in a fiscal year.  The amount assessed is 
 27.1   appropriated to the Department of Commerce for the purposes of 
 27.2   the task force, and is available until expended.  The department 
 27.3   shall apportion those costs among all telephone companies in 
 27.4   proportion to their respective gross operating revenues from the 
 27.5   sale of telephone services within the state during the last 
 27.6   calendar year.  The department shall assess telephone companies 
 27.7   and issue bills in accordance with the billing and assessment 
 27.8   procedures provided in section 237.295, to the extent that these 
 27.9   procedures do not conflict with this section.  
 27.10     (d) The Department of Commerce must provide staff and 
 27.11  expertise to the task force directly or by contract and may 
 27.12  reimburse the expenses of persons requested to assist the task 
 27.13  force in its duties other than state employees or employees of 
 27.14  telephone companies.  The Department of Commerce must provide 
 27.15  administrative assistance to the task force.  
 27.16     (e) The joint legislative task force on telecommunications 
 27.17  shall expire July 1, 2007. 
 27.18                             ARTICLE 6 
 27.19               CANCELLATION OF LONG DISTANCE SERVICE
 27.20     Section 1.  Minnesota Statutes 2004, section 237.74, is 
 27.21  amended by adding a subdivision to read: 
 27.22     Subd. 14.  [CANCELLATION OF LONG DISTANCE SERVICE.] (a) A 
 27.23  telecommunications carrier providing long distance service may 
 27.24  not charge a customer for long distance service after the 
 27.25  customer has requested that carrier to cancel the customer's 
 27.26  long distance service. 
 27.27     (b) Notwithstanding the limitation on charges in paragraph 
 27.28  (a), if a customer with a fixed term contract requests that a 
 27.29  telecommunications carrier providing long distance service 
 27.30  cancel that customer's long distance service, the 
 27.31  telecommunications carrier may charge the customer for long 
 27.32  distance service until the end of the contract term but not 
 27.33  after the end of the contract term. 
 27.34     (c) A telecommunications carrier providing long distance 
 27.35  service may not require a customer to contact the customer's 
 27.36  local telephone service provider in order for the customer to 
 28.1   cancel long distance service with the carrier. 
 28.2      <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2006. 
 28.3                              ARTICLE 7
 28.4              CITY OF ALEXANDRIA JOINT VENTURE AUTHORITY
 28.5      Section 1.  Laws 2002, chapter 329, section 5, is amended 
 28.6   to read:  
 28.7      Sec. 5.  [JOINT VENTURE AUTHORITY.] 
 28.8      (a) The city of Alexandria may enter into a joint 
 28.9   venture or joint ventures with one, two, or three of the 
 28.10  entities known as Runestone Telephone Association and, Runestone 
 28.11  Electric Association, and Gardonville Telephone Cooperative for 
 28.12  the purpose of providing local niche service, including internet 
 28.13  services, and point to point transmission of digital information.
 28.14     (b) For purposes of this section, with respect to the 
 28.15  services described in paragraph (a), the city of Alexandria and 
 28.16  a joint venture to which it is a party shall have the rights and 
 28.17  authority granted by, and be subject to, Minnesota Statutes 2001 
 28.18  Supplement, section 452.25, except for the provisions of that 
 28.19  section which relate specifically and only to electric utilities.
 28.20     (c) For the purposes of this section, "local niche service" 
 28.21  refers to point-to-point connections between end-user locations 
 28.22  within a service area and any telecommunications services under 
 28.23  the public utilities commission's jurisdiction under Minnesota 
 28.24  Statutes, chapter 237 that do not fall within the definition of 
 28.25  local service or the definition of interexchange service. 
 28.26     (d) If the city of Alexandria obtains authority to provide 
 28.27  local service or interexchange service under chapter 237, it may 
 28.28  enter into a joint venture with the entities identified in 
 28.29  paragraph (a) for those purposes. 
 28.30     [<b>EFFECTIVE DATE; LOCAL APPROVAL.</b>] This section is effective 
 28.31  as to the city of Alexandria the day after the city of 
 28.32  Alexandria's governing body and its chief clerical officer 
 28.33  timely complete compliance with Minnesota Statutes, section 
 28.34  645.021, subdivisions 2 and 3.