SF 2224

2nd Engrossment - 94th Legislature (2025 - 2026)

Posted on 07/15/2025 10:41 a.m.

A bill for an act
relating to commerce; relieving telephone companies or telecommunications
carriers of the obligation to serve certain areas; requiring the Public Utilities
Commission to resolve disputes; amending Minnesota Statutes 2024, section
216B.62, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 237.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 216B.62, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Administrative costs for discontinuation of telecommunication services. new text end

new text begin The
commission may assess fees for the actual commission costs of administering the
discontinuation of telecommunication services under section 237.181. The money received
from the assessment shall be deposited into an account in the special revenue fund and all
funds deposited are appropriated to the commission for the purposes of this subdivision.
The commission may initially assess for estimated costs under section 237.181, then must
adjust subsequent assessments for actual costs incurred under section 237.181. An assessment
made under this subdivision is not subject to the cap on assessments provided in subdivision
3 or any other law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 2.

new text begin [237.181] CUSTOMER TRANSITION PLANS FOR AREAS WITH VOIP
ALTERNATIVES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Alternative providers" means one or more providers the Federal Communications
Commission has identified through Broadband Data Collection, location fabric data, or a
successor data program as having a provider offering wireline broadband access service
through fiber optic cable to the home capable of carrying VOIP of at least 25 megabits per
second download speed and three megabits per second upload speed and offers VOIP
services at a rate no more than 120 percent of the current rate for local flat rated voice
service. Other Federal Communications Commission-approved adequate replacements shall
be considered by the commission upon request of the telephone company or
telecommunications carrier if the telephone company or telecommunications carrier fulfills
the required obligations set forth in this section.
new text end

new text begin (c) "Commission" means the Public Utilities Commission.
new text end

new text begin (d) "Voice over internet protocol" or "VOIP" has the meaning given in section 237.025.
new text end

new text begin Subd. 2. new text end

new text begin Customer transition plans. new text end

new text begin (a) A telephone company or telecommunications
carrier may submit a petition to the commission for approval of a customer transition plan
to discontinue telecommunications service in an area where the telephone company or
telecommunications carrier has shown that customers in the affected area have access to
one or more providers for the telecommunications service provided by the telephone company
or telecommunications carrier.
new text end

new text begin (b) The proposed customer transition plan must:
new text end

new text begin (1) clearly identify the area and affected customers;
new text end

new text begin (2) clearly identify the alternative providers available to customers in the affected area;
new text end

new text begin (3) provide for technical assistance to affected customers who request assistance with
the transition to an alternate provider;
new text end

new text begin (4) draft consumer dispute forms for commission approval;
new text end

new text begin (5) describe the public education meeting plans for affected customers when required
by the commission; and
new text end

new text begin (6) provide onetime connection fees and device costs for households eligible for credit
as defined by section 237.70, subdivision 4a.
new text end

new text begin Subd. 3. new text end

new text begin Commission process. new text end

new text begin The commission shall provide for notice and comment
on the petition for a customer transition plan. The commission shall approve, modify, or
reject a petition filed under this section. The commission shall only approve a plan under
this section if it finds that the telephone company or telecommunications carrier:
new text end

new text begin (1) has met its burden of demonstrating to the commission that customers in the affected
area have at least one alternative provider available to those customers;
new text end

new text begin (2) has demonstrated that it will put sufficient resources into assisting customers to
transition to an alternate provider, including providing onetime connection fees and device
costs for households eligible for credit as defined by section 237.70, subdivision 4a; and
new text end

new text begin (3) has held a public meeting in the affected area as required by the commission and
provided written notice of the meeting to customers 60 days in advance.
new text end

new text begin Subd. 4. new text end

new text begin Obligations upon approval. new text end

new text begin Upon approval of a petition for a customer
transition plan under this section, the telephone company or telecommunications carrier
that proposed the petition must continue to serve an affected customer until the telephone
company or telecommunications carrier completes the required actions in subdivision 2 and
any disputes brought by the customer before the commission are resolved.
new text end

new text begin Subd. 5. new text end

new text begin Dispute resolution. new text end

new text begin The commission must resolve any dispute over whether a
location has service available at the rates described in subdivision 1 on an expedited basis
pursuant to section 237.61, prior to the date services will be discontinued. Such disputes
must be submitted at least 90 days prior to the date of service discontinuance and resolved
15 days prior to the date of service discontinuation.
new text end

new text begin Subd. 6. new text end

new text begin Reinstatement of service. new text end

new text begin (a) The commission may reinstate existing obligations
on the telephone company or telecommunications carrier to provide services to customers
affected by this section:
new text end

new text begin (1) on the commission's own initiative; or
new text end

new text begin (2) in response to a request for agency action.
new text end

new text begin (b) Before acting under subdivision 4 the commission must:
new text end

new text begin (1) provide notice and conduct a hearing; and
new text end

new text begin (2) determine that reinstating any existing obligation to serve is necessary because
customers lack access to one or more providers.
new text end

new text begin (c) The telephone company or telecommunications carrier that would be affected by
modification or reinstatement of service shall bear the burden of proof in a proceeding under
this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end