1.1A bill for an act1.2relating to telecommunications; regulating private shared services; modifying 1.3regulatory provisions; amending Minnesota Statutes 2008, sections 237.411, 1.4subdivision 3; 237.74, subdivision 9; proposing coding for new law in Minnesota 1.5Statutes, chapter 237.1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.7    Section 1. Minnesota Statutes 2008, section 237.411, subdivision 3, is amended to read:1.8    Subd. 3. Reduced rate regulation. The rates, prices, tariffs, or charges to a business 1.9customer in a competitive area by a telephone company or a telecommunications carrier 1.10offering local service are only subject to sections 
         237.07, subdivision 1; 
         237.66; and 1.11237.663
         , and are not subject to any rules imposing rate or price restrictions beyond those 1.12sections or to other order or investigation of local rates under section 
         237.081. A telephone 1.13company or telecommunications carrier subject to this subdivision is not required to file 1.14specific price information. However, upon request of the department, the commission, or 1.15the Office of Attorney General, a telephone company or telecommunications carrier must 1.16demonstrate that its pricing complies with subdivision 4.1.17    Sec. 2. Minnesota Statutes 2008, section 237.74, subdivision 9, is amended to read:1.18    Subd. 9. Discontinuance. If a physical connection exists between a telephone 1.19exchange system operated by a telephone company and the toll line or lines operated by a 1.20telecommunications carrier, neither of the companies shall have the connection severed or 1.21the service between the companies discontinued without first obtaining an order from the 1.22commission upon an application for permission to discontinue the physical connection. 1.23Upon the filing of an application for discontinuance of the connection, the department 1.24shall investigate and ascertain whether public convenience requires the continuance 2.1of the physical connection, and if the department so finds, the commission shall fix 2.2the compensation, terms, and conditions of the continuance of the physical connection 2.3and service between the telephone company and the telecommunications carrier. Prior 2.4commission approval is not required for severing connections where multiple local 2.5exchange companies are authorized to provide service. However, the commission may 2.6require the local exchange connections if it finds that the connections are in the public 2.7interest.2.8EFFECTIVE DATE.This section is effective the day following final enactment.2.9    Sec. 3. [237.681] PRIVATE SHARED SERVICES.2.10    Subdivision 1.Definition.For the purposes of this section, "private shared 2.11services" means the provision of telephone services and equipment, the provision of video 2.12programming services, or the provision of broadband services within a user group located 2.13in discrete private premises, in building complexes, campuses, or high-rise buildings, 2.14by a commercial shared services provider or by a user association, through privately 2.15owned customer premises equipment and associated data processing and information 2.16management services and includes the provision of connections to the facilities of a local 2.17exchange and to long-distance telephone companies.2.18    Subd. 2.Requirements.A person who owns or operates a building, property, 2.19complex, or other facility where a private shared system is operated shall establish a single 2.20demarcation point for services and facilities provided by a telephone company providing 2.21local exchange service in the area that is mutually agreeable to the property owner or 2.22operator and the telephone company. The obligation of a telephone company to provide 2.23service to a customer at a location where a private shared system is operated is limited to 2.24providing telephone company service and facilities up to the demarcation point established 2.25for the property where the private shared telecommunications system is located. The 2.26owner or operator of a private shared system may not (1) impose unreasonable restrictions 2.27on access to the demarcation point on the premises by a telephone company or (2) 2.28discriminate against or in favor of an occupant in any manner, including charging the 2.29occupant higher or lower rental charges, because of the occupant's choice of telephone 2.30company.2.31    Subd. 3.Access to alternative provider.A tenant of a building, property, 2.32complex, or other facility where a private shared system is operated may establish a 2.33direct connection to and receive telephone service from a telephone company providing 2.34local exchange service in the area where the private shared system is located.  At the 2.35request of a tenant where a private shared system is operated, the owner or manager of 3.1the property shall make facilities or conduit space available to the tenant to allow the 3.2tenant to make separate connection to and to receive telephone service directly from 3.3the telephone company operating local exchange service in the area.  The tenant has the 3.4choice of installing the tenant's own facilities or using the existing facilities.  The facilities 3.5or conduit space must be provided by the owner or operator to the tenant at a reasonable 3.6rate and on reasonable terms and conditions.  It is the obligation of the tenant to arrange 3.7for premises wire, cable, or other equipment necessary to connect the tenant's telephone 3.8equipment with the facilities of the telephone company operating local exchange service 3.9at the location of the demarcation point.  3.10    Subd. 4.Enforcement.If the commission finds that the owner or operator of 3.11a private shared system has failed to comply with a request under this section, the 3.12commission may order the owner or operator to make facilities or conduit space available 3.13sufficient to allow the tenant to make separate connection with the telephone company, 3.14and provide the services at reasonable prices and on reasonable terms and conditions.3.15    Subd. 5.Exemption.A provider of private shared services is exempt from 3.16section 237.16 if the telecommunications services are only provided to tenants or for 3.17the provider's own use.3.18    Subd. 6.Service by local telephone company.A telephone company providing 3.19local exchange service shall provide service to anyone located within a shared services 3.20building at the demarcation point within a reasonable time upon request.