1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to telecommunications; regulating certain 1.3 payments, credits, and interest charges; changing 1.4 various cable system provisions; amending Minnesota 1.5 Statutes 2002, sections 237.01, by adding a 1.6 subdivision; 237.06; 238.02, subdivision 3; 238.03; 1.7 238.08, subdivisions 3, 4; 238.081; 238.083, 1.8 subdivisions 2, 4; 238.084, subdivision 1; 238.11, 1.9 subdivision 2; 238.22, subdivision 13; 238.23; 238.24, 1.10 subdivisions 3, 4, 6, 9, 10; 238.242, subdivisions 1, 1.11 3; 238.25, subdivisions 5, 10; 238.35, subdivisions 1, 1.12 4; 238.36, subdivision 2; 238.39; 238.40; 238.43, 1.13 subdivision 1; 325E.02; proposing coding for new law 1.14 in Minnesota Statutes, chapter 237; repealing 1.15 Minnesota Statutes 2002, sections 238.01; 238.02, 1.16 subdivisions 2, 17, 18, 19, 25; 238.082; 238.083, 1.17 subdivisions 3, 5; 238.084, subdivisions 2, 3, 5; 1.18 238.12, subdivision 1a; 238.15; 238.35, subdivisions 1.19 2, 3; 238.36, subdivision 1; Minnesota Rules, parts 1.20 7810.0100, subparts 16, 17, 18, 30, 32, 33, 39; 1.21 7810.0700; 7810.3400; 7810.3500; 7810.3600; 7810.3700; 1.22 7810.3800; 7810.4200; 7810.4400; 7810.4500; 7810.4600; 1.23 7810.4700; 7810.4800; 7810.5600; 7810.6900; 7810.8760; 1.24 7815.0100; 7815.0200; 7815.0300; 7815.0400; 7815.0500; 1.25 7815.0600. 1.26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.27 ARTICLE 1 1.28 CREDIT FOR WRONG DIRECTORY ASSISTANCE 1.29 Section 1. Minnesota Statutes 2002, section 237.01, is 1.30 amended by adding a subdivision to read: 1.31 Subd. 8. [LOCAL EXCHANGE CARRIER.] "Local exchange carrier" 1.32 means a telephone company or telecommunications carrier 1.33 providing local exchange service. 1.34 Sec. 2. [237.155] [CREDIT FOR INCORRECT DIRECTORY 1.35 ASSISTANCE.] 2.1 Any person that provides directory assistance to customers 2.2 for a fee, either directly or by contracting with a third party, 2.3 must provide for an immediate credit to a customer that informs 2.4 the directory assistance provider that the provider has given 2.5 the customer incorrect information for which the provider 2.6 charged the customer a fee. 2.7 Sec. 3. [237.665] [PROHIBITION AGAINST BILLING FOR 2.8 UNAUTHORIZED CHARGES.] 2.9 (a) A telephone company or telecommunications carrier 2.10 providing local service shall not include on a customer's bill a 2.11 charge for goods or services on behalf of a third-party service 2.12 provider unless the third-party service provider has obtained 2.13 the customer's prior express authorization to include such 2.14 charges on the customer's bill. 2.15 (b) If a customer of a telephone company or 2.16 telecommunications carrier notifies the telephone company or 2.17 telecommunications carrier that an unauthorized charge from a 2.18 third-party service provider has been included on the customer's 2.19 bill, then the telephone company or telecommunications carrier 2.20 shall remove the unauthorized charge. The telephone company or 2.21 telecommunications carrier shall refund to the customer any 2.22 amounts paid for the unauthorized charges that were billed by 2.23 the telephone company or telecommunications carrier during the 2.24 six months prior to the customer's complaint, unless the 2.25 telephone company or telecommunications carrier can produce 2.26 within 14 calendar days of the complaint evidence to the 2.27 customer of prior express authorization by the customer. 2.28 (c) A third-party service provider meets the prior express 2.29 authorization requirements of this section only if it obtains or 2.30 receives a customer's written authorization in the form of a 2.31 letter of agency, a customer's oral authorization verified by an 2.32 independent third party, or a copy of an e-mail notice of 2.33 verification as described in clause (3). 2.34 (1) If the third-party service provider obtains the 2.35 customer's written authorization in the form of a letter of 2.36 agency, it must be a separate or easily separable document. The 3.1 sole purpose of the letter of agency shall be to authorize a 3.2 charge for goods or services to appear on the customer's 3.3 telephone bill. The letter of agency must be of sufficient size 3.4 to be clearly legible and must contain clear and unambiguous 3.5 language that contains separate statements for each good or 3.6 service for which the customer is agreeing to be billed. The 3.7 letter of agency must be signed and dated by the customer. 3.8 (2) If the customer's authorization is oral, the 3.9 authorization must be verified by an independent third-party 3.10 verifier. The verification is valid only if: 3.11 (i) the independent third party confirms the customer's 3.12 identity with information unique to the customer unless the 3.13 customer refuses, then that fact must be noted; and 3.14 (ii) the independent third party informs the customer that 3.15 the customer is agreeing to be billed for goods or services that 3.16 will appear as a charge on the customer's telephone bill. 3.17 (3) If a customer enters a contract via the Internet with a 3.18 third-party service provider for goods or services which are 3.19 charged to the bill issued by the customer's telephone company 3.20 or telecommunications carrier providing local service, the 3.21 third-party service provider must, within 48 hours of receiving 3.22 the customer's authorization, send the customer, via e-mail, a 3.23 notice of verification confirming the authorization. The 3.24 third-party service provider shall maintain a copy of the notice 3.25 of verification for the duration of the contract as a record of 3.26 the customer's express authorization to be charged for the goods 3.27 or services on the customer's telephone bill for local service. 3.28 (d) For direct-dialed calls, where the call itself 3.29 represents the service for which the charge is placed on a 3.30 customer's local telephone bill, such as "900 number" services 3.31 and "dial around" services, evidence that the call was placed 3.32 from the number that is subject to the telephone bill shall be 3.33 considered sufficient evidence of authorization for that call 3.34 for billing authorization purposes established in this section. 3.35 Nothing in this section shall be construed to change a telephone 3.36 company's or telecommunication carrier's obligations or affect a 4.1 telephone subscriber's rights under section 325F.692. 4.2 (e) This section does not apply to charges for collect 4.3 calls. 4.4 (f) Nothing in this section restricts the right of a 4.5 telephone company or telecommunications carrier to seek to 4.6 recover from a third-party service provider unauthorized charges 4.7 refunded to the customer by the telephone company or 4.8 telecommunications carrier. 4.9 ARTICLE 2 4.10 CABLE SYSTEM CHANGES 4.11 Section 1. Minnesota Statutes 2002, section 238.02, 4.12 subdivision 3, is amended to read: 4.13 Subd. 3. [CABLE COMMUNICATIONS SYSTEM.] (a) "Cable 4.14 communications system" means a system
which operatesthat 4.15 provides the service of receiving and amplifying (1) programs 4.16 broadcast by one or more television or radio stations and (2) 4.17 other programs originated by a person operating a cable 4.18 communications companysystem or by another party, and4.19 distributingperson. The system distributes those programs by 4.20 wire, cable, microwave, or other means, regardless whether the 4.21 means are owned or leased, to persons who subscribe to the 4.22 service. 4.23 (b) This definition does not include: 4.24 (a)(1) a system whichthat serves fewer than 50 4.25 subscribers or a system whichthat serves more than 50 but fewer 4.26 than 1,000 subscribers if the governing bodies of all political 4.27 subdivisions served by the system, vote, by resolution, to 4.28 remove the system from the provisions of this chapter .; provided 4.29 that: 4.30 (i) no part of a system, nor any area within the 4.31 municipality served by the system, may be removed from the 4.32 provisions of this chapter if more than 1,000 subscribers are 4.33 served by the system .; and 4.34 (ii) any system which servesserving more than 50 but fewer 4.35 than 1,000 subscribers that has been removed from the provisions 4.36 of this chapter shall be returnedbecomes subject to the 5.1 provisions of this chapter if the governing bodies of 50 percent 5.2 or more of the political subdivisions served by the system vote, 5.3 by resolution, in favor of the return; 5.4 (b)(2) a master antenna television system; 5.5 (c)(3) a specialized closed-circuit system whichthat does 5.6 not use the public rights-of-way for the construction of its 5.7 physical plant; and 5.8 (d)(4) a translator system whichthat receives and 5.9 rebroadcasts over-the-air signals. 5.10 Sec. 2. Minnesota Statutes 2002, section 238.03, is 5.11 amended to read: 5.12 238.03 [APPLICABILITY.] 5.13 This chapter applies to every cable communications system 5.14 and every cable communications company, as defined in section 5.15 238.02, operating within the state, including a cable 5.16 communications company which constructs, operates and maintains5.17 a cable communicationssystem comprised in whole or in part 5.18 through theof facilities of a person franchised to offer common5.19 or contract carrier servicessubject to regulation under chapter 5.20 237. Persons possessing franchises for any of the purposes of 5.21 this chapter are subject to this chapter although no property 5.22 has been acquired, business transacted, or franchises exercised. 5.23 Sec. 3. Minnesota Statutes 2002, section 238.08, 5.24 subdivision 3, is amended to read: 5.25 Subd. 3. [MUNICIPAL OPERATION.] Nothing in this chapter5.26 shall be construed to limitAny municipality from the right5.27 tomay construct, purchase, and operate cable communications 5.28 systems ,or , tooperate facilities and channels for community 5.29 television, including, but not limited to, public, educational, 5.30 and governmental access and local origination programming. Any 5.31 municipal system, including the operation of community 5.32 television by a municipality, shall beis subject to this 5.33 chapter to the same extent as would any nonpublic cable 5.34 communications system. 5.35 Sec. 4. Minnesota Statutes 2002, section 238.08, 5.36 subdivision 4, is amended to read: 6.1 Subd. 4. [FEE, TAX, OR CHARGE.] Nothing in this chapter6.2 shall be construed to limit the power ofAny municipality tomay 6.3 impose upon any person operating a cable communications company6.4 system a fee, tax, or charge. 6.5 Sec. 5. Minnesota Statutes 2002, section 238.081, is 6.6 amended to read: 6.7 238.081 [FRANCHISE PROCEDURE.] 6.8 Subdivision 1. [PUBLICATION OF NOTICE.] The franchising 6.9 authority shall have published once each week for two successive 6.10 weeks in a newspaper of general circulation in each municipality 6.11 within the cable service territory, a notice of intent 6.12 to consider an application for an initial franchise , requesting6.13 applications for the franchise. 6.14 Subd. 2. [REQUIRED INFORMATION IN NOTICE.] The notice must 6.15 include at least the following information: 6.16 (1) the name of the municipality making the request; 6.17 (2) the closing date for submission of applications; 6.18 (3) a statement of the application fee, if any, and the 6.19 method for its submission; 6.20 (4) a statement by the franchising authority of the desired6.21 system design andservices to be offered; 6.22 (5) a statement by the franchising authority of criteria 6.23 and priorities against which the applicants for the franchise 6.24 must be evaluated; 6.25 (6) a statement that applications for the franchise must 6.26 contain at least the information required by subdivision 4; 6.27 (7) the date, time, and place for the public hearing, to 6.28 hear proposals from franchise applicants; and 6.29 (8) the name, address, and telephone number of the 6.30 individuals who may be contacted for further information. 6.31 Subd. 3. [OTHER RECIPIENTS OF NOTICE.] In addition to the 6.32 published notice, the franchising authority shall mail copies of 6.33 the notice of intent to franchise to any person it has 6.34 identified as being a potential candidate for the franchise. 6.35 Subd. 4. [CONTENTS OF FRANCHISING PROPOSAL.] (a) The 6.36 franchising authority shall require that proposals for a cable 7.1 communications franchise be notarized and contain, but not 7.2 necessarily be limited to, the following information: 7.3 (1) plans for channel capacity, including both the total 7.4 number of channels capable of being energized in the system and 7.5 the number of channels to be energized immediately; 7.6 (2) a statement of the television and radio broadcast 7.7 signals for which permission to carry will be requested from the 7.8 Federal Communications Commission; 7.9 (3) a description of the proposed system design and planned 7.10 operation, including at least the following items: 7.11 (i) the general area for location of antennae and the head 7.12 end, if known; 7.13 (ii) the schedule for activating two-way capacity; 7.14 (iii) the type of automated services to be provided; 7.15 (iv) the number of channels and services to be made 7.16 available for access cable broadcasting; and 7.17 (v) a schedule of charges for facilities and staff 7.18 assistance for access cable broadcasting; 7.19 (4) the terms and conditions under which particular service 7.20 is to be provided to governmental and educational entities; 7.21 (5) a schedule of proposed rates in relation to the 7.22 services to be provided, and a proposed policy regarding unusual 7.23 or difficult connection of services; 7.24 (6) a time schedule for construction of the entire system 7.25 with the time sequence for wiring the various parts of the area 7.26 requested to be served in the request for proposals; 7.27 (7) a statement indicating the applicant's qualifications 7.28 and experience in the cable communications field, if any; 7.29 (8) an identification of the municipalities in which the 7.30 applicant either owns or operates a cable communications system, 7.31 directly or indirectly, or has outstanding franchises for which 7.32 no system has been built; 7.33 (9) plans for financing the proposed system, which must 7.34 indicate every significant anticipated source of capital and 7.35 significant limitations or conditions with respect to the 7.36 availability of the indicated sources of capital; 8.1 (10) a statement of ownership detailing the corporate 8.2 organization of the applicant, if any, including the names and 8.3 addresses of officers and directors and the number of shares 8.4 held by each officer or director, and intracompany relationship 8.5 including a parent, subsidiary, or affiliated company; and 8.6 (11) a notation and explanation of omissions or other 8.7 variations with respect to the requirements of the proposal. 8.8 (b) Substantive amendments may not be made in a proposal8.9 after a proposal has been submitted to the franchising authority8.10 and before award of a franchiseUpon submission of a proposal, 8.11 the municipality and applicant may negotiate franchise terms. 8.12 Subd. 5. [TIME LIMIT TO SUBMIT APPLICATION.] The 8.13 franchising authority shall allow at least 20 days from the 8.14 first date of published notice to the closing date for 8.15 submitting applications. 8.16 Subd. 6. [PUBLIC HEARING ON FRANCHISE.] A public hearing 8.17 before the franchising authority affording reasonable notice and 8.18 a reasonable opportunity to be heard with respect to all 8.19 applications for the franchise must be completed at least seven 8.20 days before the introduction of theadoption of a franchise 8.21 ordinance in the proceedings of the franchising authority. 8.22 Subd. 7. [AWARD OF FRANCHISE.] Franchises may be 8.23 awarded onlyby ordinance or other official action by the 8.24 franchising authority. 8.25 Subd. 8. [COSTS OF AWARDING FRANCHISE.] Nothing in this8.26 section prohibitsA franchising authority from recoveringmay 8.27 recover from a successfulan applicant the entire reasonable and 8.28 necessary costs of the entire process of awarding theprocessing 8.29 a cable communications franchise. 8.30 Subd. 9. [FRANCHISING NONPROFIT OR MUNICIPALLY OWNED 8.31 SYSTEM.] Nothing contained in this section prohibits a 8.32 franchising authority from franchising a nonprofit or 8.33 municipally owned system. The municipality or nonprofit entity 8.34 is considered an applicant for purposes of this section. 8.35 Subd. 10. [FRANCHISE; JOINT POWERS.] In the cases of 8.36 municipalities acting in concert, the municipalities may 9.1 delegate to another entity suchany duties, responsibilities, 9.2 privileges, or activities described in this section, if suchthe 9.3 delegation is proper according to state and local law. 9.4 Sec. 6. Minnesota Statutes 2002, section 238.083, 9.5 subdivision 2, is amended to read: 9.6 Subd. 2. [WRITTEN APPROVAL OF FRANCHISING AUTHORITY.] A 9.7 sale or transfer of a franchise, including a sale or transfer by 9.8 means of a fundamental corporate change, requires the written 9.9 approval of the franchising authority. The parties to the sale 9.10 or transfer of a franchise shall make a written request to the 9.11 franchising authority for its approval of the sale or transfer. 9.12 The franchising authority shall reply in writing within 30 days9.13 of the request and shall indicate its approval of the request or9.14 its determination that a public hearing is necessary if it9.15 determines that a sale or transfer of a franchise may adversely9.16 affect the company's subscribers. The franchising authority9.17 shall conduct a public hearing on the request within 30 days of9.18 that determination.9.19 Sec. 7. Minnesota Statutes 2002, section 238.083, 9.20 subdivision 4, is amended to read: 9.21 Subd. 4. [APPROVAL OR DENIAL OF TRANSFER REQUEST.] Within9.22 30 days after the public hearing,The franchising authority 9.23 shall approve or deny in writing the sale or transfer request. 9.24 The approval must not be unreasonably withheld. 9.25 Sec. 8. Minnesota Statutes 2002, section 238.084, 9.26 subdivision 1, is amended to read: 9.27 Subdivision 1. [ALL SYSTEMS.] The following requirements9.28 franchise provisions are required and apply to all classes A, B,9.29 and Ccable communications systems unless provided otherwise: 9.30 (a) a provision thatThe franchise compliesshall comply 9.31 with the Minnesota franchise standards contained in this 9.32 section ;. 9.33 (b) a provision requiring the franchisee and the9.34 franchising authority to conform to state laws and rules9.35 regarding cable communications not later than one year after9.36 they become effective, unless otherwise stated, and to conform10.1 to federal laws and regulations regarding cable as they become10.2 effective;10.3 (c) a provision limitingThe initial and renewal franchise 10.4 term must be limited to not more than 15 years each ;. 10.5 (d) a provision specifying that(c) The franchise ismust 10.6 be nonexclusive ;. 10.7 (e)(d) A provision prohibitingsale or transfer of the 10.8 franchise or sale or transfer of stock so as to create a new 10.9 controlling interest under section 238.083 is prohibited, except 10.10 at the approval of the franchising authority, which approval 10.11 must not be unreasonably withheld, and conditioned that the sale 10.12 or transfer is completed pursuant to section 238.083 ;. 10.13 (f) a provision granting(e) The franchising authority 10.14 collecting a franchise fee is granted the authority to audit the 10.15 franchisee's accounting and financial records upon reasonable 10.16 notice , and requiring that. 10.17 (f) The franchisee shall file with the franchising 10.18 authority annually reports of gross subscriber revenues and 10.19 other information as the franchising authority deems 10.20 appropriate ;. 10.21 (g) Provisions specifyingrelating to subscribers must 10.22 specify: 10.23 (1) current subscriber charges or that the current charges 10.24 are available for public inspection in the municipality; 10.25 (2) the length and terms of residential subscriber 10.26 contracts, if they exist, or that the current length and terms 10.27 of residential subscriber contracts are available for public 10.28 inspection in the municipality; and 10.29 (3) the procedure by which subscriber charges are 10.30 established, unless such a provision is contrary to state or 10.31 federal law ;. 10.32 (h) a provision indicating by titleThe office or officer 10.33 of the franchising authority that is responsible for the 10.34 continuing administration of the franchise ;must be indicated by 10.35 title. 10.36 (i) a provision requiringThe franchisee toshall indemnify 11.1 and hold harmless the franchising authority during the term of 11.2 the franchise, and tomaintain throughout the term of the 11.3 franchise ,liability insurance in an amount as the franchising 11.4 authority may require insuring both the franchising authority 11.5 and the franchisee with regard to damages and penalties which11.6 that they may legally be required to pay as a result of the 11.7 exercise of the franchise ;. 11.8 (j) a provision thatAt the time the franchise becomes 11.9 effective and thereafter until the franchisee has liquidated all 11.10 of its obligation with the franchising authority, the franchisee 11.11 shall furnish a performance bond, certificate of deposit, or 11.12 other type of instrument approved by the franchising authority 11.13 in an amount as the franchising authority deems to be adequate 11.14 compensation for damages resulting from the franchisee's 11.15 nonperformance. The franchising authority may, from year to 11.16 year and in its sole discretion, reduce the amount of the 11.17 performance bond or instrument ;. 11.18 (k) a provision that nothing contained inThe franchise 11.19 must contain a provision that nothing relieves a person from 11.20 liability arising out of the failure to exercise reasonable care 11.21 to avoid injuring the franchisee's facilities while performing 11.22 work connected with grading, regrading, or changing the line of 11.23 a street or public place or with the construction or 11.24 reconstruction of a sewer or water system ;. 11.25 (l) a provision thatThe franchisee's technical ability, 11.26 financial condition, and legal qualification weremust have been 11.27 considered and approved by the franchising authority in a full 11.28 public proceeding that afforded reasonable notice and a 11.29 reasonable opportunity to be heard ;. 11.30 (m) a provision requiring the construction of a cable11.31 system with a channel capacity available for immediate or11.32 potential use, equal to a minimum of 72 MHz of bandwidth, the11.33 equivalent of 12 television broadcast channels. For purposes of11.34 this section, a cable system with a channel capacity, available11.35 for immediate or potential use, equal to a minimum of 72 MHz of11.36 bandwidth means: the provision of a distribution system12.1 designed and constructed so that a minimum of 72 MHz of12.2 bandwidth, the equivalent of 12 television broadcast channels,12.3 can be put into use with only the addition of the appropriate12.4 headend equipment;12.5 (n) a provision in initial franchises that there be a full12.6 description of the system proposed for construction and a12.7 schedule showing:12.8 (1) that for franchise areas which will be served by a12.9 system proposed to have fewer than 100 plant miles of cable:12.10 (i) that within 90 days of the granting of the franchise,12.11 the franchisee shall apply for the necessary governmental12.12 permits, licenses, certificates, and authorizations;12.13 (ii) that energized trunk cable must be extended12.14 substantially throughout the authorized area within one year12.15 after receipt of the necessary governmental permits, licenses,12.16 certificates, and authorizations and that persons along the12.17 route of the energized cable will have individual "drops" as12.18 desired during the same period of time; and12.19 (iii) that the requirement of this section may be waived by12.20 the franchising authority only upon occurrence of unforeseen12.21 events or acts of God; or12.22 (2) that for franchise areas which will be served by a12.23 system proposed to have 100 plant miles of cable or more, a12.24 provision:12.25 (i) that within 90 days of the granting of the franchise,12.26 the franchisee shall apply for the necessary governmental12.27 permits, licenses, certificates, and authorizations;12.28 (ii) that engineering and design must be completed within12.29 one year after the granting of the franchise and that a12.30 significant amount of construction must be completed within one12.31 year after the franchisee's receipt of the necessary12.32 governmental permits, licenses, certificates, and12.33 authorizations;12.34 (iii) that energized trunk cable must be extended12.35 substantially throughout the authorized area within five years12.36 after commencement of construction and that persons along the13.1 route of the energized cable will have individual "drops" within13.2 the same period of time, if desired; and13.3 (iv) that the requirement of this section be waived by the13.4 franchising authority only upon occurrence of unforeseen events13.5 or acts of God;The system capacity and system technical design 13.6 must be identified. 13.7 (n) The schedule for system construction must be identified. 13.8 (o) Unless otherwise already provided for by local law, a13.9 provision thatthe franchisee shall obtain a permit from the 13.10 proper municipal authority before commencing construction of a 13.11 cable communications system, including the opening or 13.12 disturbance of a street, sidewalk, driveway, or public place. 13.13 The provision must specify remedies available to the franchising 13.14 authority in cases where the franchisee fails to meet the 13.15 conditions of the permit ;. 13.16 (p) Unless otherwise already provided for by local law, a13.17 provision thatwires, conduits, cable, and other property and 13.18 facilities of the franchisee must be located, constructed, 13.19 installed, and maintained in compliance with applicable codes. 13.20 The provision must also specify that thefranchisee shall keep 13.21 and maintain its property so as not to unnecessarily interfere 13.22 with the usual and customary trade, traffic, or travel upon the 13.23 streets and public places of the franchise area or endanger the 13.24 life or property of any person ;. 13.25 (q) Unless otherwise already provided for by local law, a13.26 provision thatthe franchising authority and the franchisee 13.27 shall establish a procedure in the franchise for the relocation 13.28 or removal of the franchisee's wires, conduits, cables, and 13.29 other property located in the street, right-of-way, or public 13.30 place whenever the franchising authority undertakes public 13.31 improvements whichthat affect the cable equipment ;. 13.32 (r) a provision incorporating by referenceAs a minimum, 13.33 the technical standards promulgated by the Federal 13.34 Communications Commission relating to cable communications 13.35 systems contained in subpart K of part 76 of the Federal 13.36 Communications Commission's rules and regulations relating to 14.1 cable communications systems and found in Code of Federal 14.2 Regulations, title 47, sections 76.601 to 76.617, must be 14.3 incorporated by reference into the franchise. The results of 14.4 tests required by the Federal Communications Commission must be 14.5 filed within ten days of the conduct of the tests with the 14.6 franchising authority ;. 14.7 (s) a provision establishing howThe franchising authority 14.8 and the person operating a cable communications companysystem 14.9 shall determine who is to bear the costs of required special14.10 testing;additional system testing required by the franchising 14.11 authority. 14.12 (t) a provision pertaining to the franchisee's construction14.13 and maintenance of a cable communications system having the14.14 technical capacity for nonvoice return communications which, for14.15 purposes of this section, means the provision of appropriate14.16 system design techniques with the installation of cable and14.17 amplifiers suitable for the subsequent insertion of necessary14.18 nonvoice communications electronic modules.14.19 In cases where an initial franchise is granted, the franchisee14.20 shall provide a cable communications system having the technical14.21 capacity for nonvoice return communications.14.22 When a franchise is renewed, sold, or transferred and is served14.23 by a system that does not have the technical capacity for14.24 nonvoice return communications, the franchising authority shall14.25 determine when and if the technical capacity for nonvoice return14.26 communications is needed after appropriate public proceedings at14.27 the municipal level giving reasonable notice and a reasonable14.28 opportunity to be heard;14.29 (u) a provision stating thatNo signals of a class IVcable 14.30 communications channel may be transmitted from a subscriber 14.31 terminal for purposes of monitoring individual viewing patterns 14.32 or practices without the express written permission of the 14.33 subscriber. The request for permission must be contained in a 14.34 separate document with a prominent statement that the subscriber 14.35 is authorizing the permission in full knowledge of its 14.36 provisions. The written permission must be for a limited period 15.1 of time not to exceed one year, which is renewable at the option 15.2 of the subscriber. No penalty may be invoked for a subscriber's 15.3 failure to provide or renew the authorization. The 15.4 authorization is revocable at any time by the subscriber without 15.5 penalty of any kind. The permission must be required for each15.6 type or classification of class IV cable communications activity15.7 planned for the purpose;15.8 (1) No information or data obtained by monitoring 15.9 transmission of a signal from a subscriber terminal, including 15.10 but not limited to lists of the names and addresses of the 15.11 subscribers or lists that identify the viewing habits of 15.12 subscribers, may be sold or otherwise made available to any 15.13 partyperson other than to the company and its employees for 15.14 internal business use, or to the subscriber who is the subject 15.15 of that information, unless the company has received specific 15.16 written authorization from the subscriber to make the data 15.17 available ;. 15.18 (2) Written permission from the subscriber must not be 15.19 required for the systems conducting systemwide or individually 15.20 addressed electronic sweeps for the purpose of verifying system 15.21 integrity or monitoring for the purpose of billing. 15.22 Confidentiality of this information is subject to clause (1) ;. 15.23 (3) For purposes of this provision, a "class IV cable15.24 communications channel" means a signaling path provided by a15.25 cable communications system to transmit signals of any type from15.26 a subscriber terminal to another point in the communications15.27 system;15.28 (v) a provision specifying(u) The procedure for the 15.29 investigation and resolution by the franchisee of complaints 15.30 regarding quality of service, equipment malfunction, billing 15.31 disputes, and other matters ;must be specified. 15.32 (w) a provision requiring that(v) At least a toll-free or 15.33 collect telephone number for the reception of complaints must be 15.34 provided to the subscriber and that the franchisee shall 15.35 maintain a repair service capable of responding to subscriber 15.36 complaints or requests for service within 24 hours after receipt 16.1 of the complaint or request. TheA provision must also state 16.2 who will bear the costs included in making these repairs, 16.3 adjustments, or installations ;. 16.4 (x) a provision granting(w) The franchising authority has 16.5 the right to terminate and cancel the franchise and the rights 16.6 and privileges of the franchise if the franchisee substantially 16.7 violates a provision of the franchise ordinance, attempts to 16.8 evade the provisions of the franchise ordinance, or practices 16.9 fraud or deceit upon the franchising authority. The 16.10 municipality shall provide the franchisee with a written notice 16.11 of the cause for termination and its intention to terminate the 16.12 franchise and shall allow the franchisee a minimum of 30 days 16.13 after service of the notice in which to correct the violation. 16.14 The franchisee must be provided with an opportunity to be heard 16.15 at a public hearing before the governing body of the 16.16 municipality before the termination of the franchise ;. 16.17 (y) a provision that(x) No cable communications company16.18 system, notwithstanding any provision in a franchise, may 16.19 abandon a cable communications service or a portion of it 16.20 without having given three months prior written notice to the 16.21 franchising authority. No cable communications companysystem 16.22 may abandon a cable communications service or a portion of it 16.23 without compensating the franchising authority for damages 16.24 resulting to it from the abandonment ;. 16.25 (z) a provision requiring that(y) Upon termination or 16.26 forfeiture of a franchise, unless otherwise required by 16.27 applicable law, the franchisee shall remove its cable, wires, 16.28 and appliances from the streets, alleys, and other public places 16.29 within the franchise area if the franchising authority so 16.30 requests , and. A procedure to be followed in the event the 16.31 franchisee fails to remove its cable, wires, and appliances from 16.32 the streets, alleys, and other public places within the 16.33 franchise area ;must be specified. 16.34 (aa) a provision that(z) When a franchise or cable system 16.35 is offered for saleto be transferred or sold, the franchising 16.36 authority shall havehas the right to purchase the system ;. 17.1 (bb) a provision establishing(aa) The minimum number of 17.2 access channels that the franchisee shall make available must be 17.3 specified. This provision must require that the franchisee 17.4 shall provide to each of its subscribers who receive some or all 17.5 of the services offered on the system, reception on at least one 17.6 specially designated access channel. The specially designated17.7 access channel may be used by local educational authorities and17.8 local government on a first-come, first-served,17.9 nondiscriminatory basis. During those hours that the specially17.10 designated access channel is not being used by the local17.11 educational authorities or local government, the franchisee17.12 shall lease time to commercial or noncommercial users on a17.13 first-come, first-served, nondiscriminatory basis if the demand17.14 for that time arises. The franchisee may also use this17.15 specially designated access channel for local origination during17.16 those hours when the channel is not in use by local educational17.17 authorities, local government, or commercial or noncommercial17.18 users who have leased time.As the municipality deems 17.19 appropriate, the provision may require the franchisee to provide 17.20 separate public access channels available for use by the general 17.21 public on a first-come, first-served, nondiscriminatory basis; 17.22 local educational access channels; local governmental access 17.23 channels; and channels available for lease on a first-come, 17.24 first-served, nondiscriminatory basis by commercial and 17.25 noncommercial users. The provision must require that whenever 17.26 the specially designated access channel required by this 17.27 paragraph is in use during 80 percent of the weekdays, Monday 17.28 through Friday, for 80 percent of the time during a consecutive 17.29 three-hour period for six weeks running, and there is a demand 17.30 for use of an additional channel for the same purpose, the 17.31 franchisee has six months in which to provide a new, specially 17.32 designated access channel for the same purpose; provided that 17.33 the provision of the additional channel or channels does not 17.34 require the cable system to install converters. The VHF 17.35 spectrum must be used for the specially designated access 17.36 channel required in this paragraph. The provision must also 18.1 require that the franchisee shall establish rules for the 18.2 administration of the specially designated access channel unless 18.3 such channel is administered by the municipality. 18.4 Franchisees providing only alarm services or only data18.5 transmission services for computer-operated functions do not18.6 need to provide access channel reception to alarm and data18.7 service subscribers.18.8 (bb) The minimum equipment that the franchisee shall make 18.9 available for public use must be specified. The franchisee 18.10 shall make readily available for public use at least the minimal 18.11 equipment necessary for the production of programming and 18.12 playback of prerecorded programs for the access channels. Upon 18.13 request, the franchisee, at minimum, shall also make readily 18.14 available the minimum equipment necessary to make it possible to 18.15 record programs at remote locations with battery-operated 18.16 portable equipment. 18.17 (cc) A franchise in the metropolitan area, as defined in 18.18 section 473.121, must designate the standard VHF channel 6 for 18.19 uniform regional channel usage as required in section 238.43. 18.20 Sec. 9. Minnesota Statutes 2002, section 238.11, 18.21 subdivision 2, is amended to read: 18.22 Subd. 2. [ACCESS CHANNEL.] No cable communications 18.23 companysystem may prohibit or limit a program or class or type 18.24 of program presented over a leased channel or a channel made 18.25 available for public access, governmental or educational 18.26 purposes. Neither the person operating a cable communications 18.27 companysystem nor the officers, directors, or employees of the 18.28 cable communications system is liable for any penalties or 18.29 damages arising from programming content not originating from or 18.30 produced by the cable communications companysystem and shown on 18.31 any public access channel, education access channel, government 18.32 access channel, leased access channel, or regional channel. 18.33 Sec. 10. Minnesota Statutes 2002, section 238.22, 18.34 subdivision 13, is amended to read: 18.35 Subd. 13. [PROPERTY OWNER.] "Property owner" means any 18.36 person with a recorded interest in a multiple dwelling complex, 19.1 or person known to the person operating a cable communications 19.2 companysystem to be an owner, or the authorized agent of the 19.3 person. 19.4 Sec. 11. Minnesota Statutes 2002, section 238.23, is 19.5 amended to read: 19.6 238.23 [ACCESS REQUIRED.] 19.7 Subdivision 1. [PROVISION OF ACCESS.] A property owner or 19.8 other person controlling access shall provide a cable 19.9 communications companysystem access to the property owner's 19.10 multiple dwelling complex. The access provided must be 19.11 perpetual and freely transferable by one person operating a 19.12 cable communications companysystem to another. A cable 19.13 communications companysystem granted access, and its successors 19.14 in interest, must fully comply with sections 238.22 to 238.27. 19.15 Subd. 2. [RESIDENT'S RIGHTS.] The intent of sections 19.16 238.22 to 238.27 is to give residents the freedom to choose 19.17 among competing cable communications services and nothing in 19.18 sections 238.22 to 238.27 shall be interpreted to require19.19 requires residents to hook up or subscribe to any services 19.20 offered by any cable communications companysystem or 19.21 alternative provider of cable communications services. 19.22 Sec. 12. Minnesota Statutes 2002, section 238.24, 19.23 subdivision 3, is amended to read: 19.24 Subd. 3. [INSTALLATION; BOND.] The facilities must be 19.25 installed in an expeditious and workmanlike manner, must comply 19.26 with applicable codes, and must be installed parallel to utility 19.27 lines when economically feasible. A property owner may require 19.28 a person operating a cable communications companysystem to post 19.29 a bond or equivalent security in an amount not exceeding the 19.30 estimated cost of installation of the cable communications 19.31 facilities on the premises. Any bond filed by a cable 19.32 communications companysystem with a municipality whichthat 19.33 would provide coverage to the property owner as provided under 19.34 this subdivision shall be considered to fulfillfulfills the 19.35 requirements of this subdivision. 19.36 Sec. 13. Minnesota Statutes 2002, section 238.24, 20.1 subdivision 4, is amended to read: 20.2 Subd. 4. [INDEMNIFY FOR DAMAGE.] A person operating a 20.3 cable communications companysystem shall indemnify a property 20.4 owner for damage caused by the company in the installation, 20.5 operation, maintenance, or removal of its facilities. 20.6 Sec. 14. Minnesota Statutes 2002, section 238.24, 20.7 subdivision 6, is amended to read: 20.8 Subd. 6. [MASTER ANTENNA TELEVISION SYSTEM.] Nothing in 20.9 sections 238.22 to 238.27 precludes a property owner from 20.10 entering into an agreement for use of a master antenna 20.11 television system by a person operating a cable communications 20.12 companysystem or other television communications service. 20.13 Sec. 15. Minnesota Statutes 2002, section 238.24, 20.14 subdivision 9, is amended to read: 20.15 Subd. 9. [NOT RETROACTIVE.] Nothing in sections 238.22 to 20.16 238.27 affects the validity of an agreement effective before 20.17 June 15, 1983 between a property owner, a person operating a 20.18 cable communications companysystem, or any other person 20.19 providing cable communications services on or within the 20.20 premises of the property owner. 20.21 Sec. 16. Minnesota Statutes 2002, section 238.24, 20.22 subdivision 10, is amended to read: 20.23 Subd. 10. [CHANNEL CAPACITY.] (a) A property owner must 20.24 provide access byto a franchised person providing a cable 20.25 communications companysystem, as required under section 238.23, 20.26 only if that cable company installs equipment with channel 20.27 capacity sufficient to provide access to other providers of 20.28 television programming or cable communications services so that 20.29 residents or association members have a choice of alternative 20.30 providers of those services. If the equipment is installed, the 20.31 cable communications companysystem shall allow alternative 20.32 providers to use the equipment. If some of the residents or 20.33 association members choose to subscribe to the services of an 20.34 alternative provider, the cable company that installed the 20.35 equipment shallmust be reimbursed by the other providers for 20.36 the cost of equipment and installation on the property on a pro 21.1 rata basis whichthat reflects the number of subscribers of each 21.2 provider on that property to the total number of subscribers on 21.3 that property. In determining the pro rata amount of 21.4 reimbursement by any alternative provider, the cost of equipment 21.5 and installation shallmust be reduced to the extent of 21.6 cumulative depreciation of that equipment at the time the 21.7 alternative provider begins providing service. 21.8 (b) If equipment is already installed as of June 15, 1983, 21.9 with channel capacity sufficient to allow access to alternative 21.10 providers, the access and pro rata reimbursement provisions of 21.11 paragraph (a) apply. 21.12 Sec. 17. Minnesota Statutes 2002, section 238.242, 21.13 subdivision 1, is amended to read: 21.14 Subdivision 1. [PROVIDING ALTERNATIVE SERVICE.] Other 21.15 providers of television programming or cable communications 21.16 services shall notify the person operating a cable 21.17 communications companysystem when a resident or association 21.18 member occupying a dwelling unit in a multiple dwelling complex 21.19 requests the services provided for by this section or section 21.20 238.241. After reaching agreement with the alternative service 21.21 provider for reimbursement to be paid for use of the equipment, 21.22 the cable communications companysystem shall make available the 21.23 equipment necessary to provide the alternative service without 21.24 unreasonable delay. 21.25 Sec. 18. Minnesota Statutes 2002, section 238.242, 21.26 subdivision 3, is amended to read: 21.27 Subd. 3. [FINANCIAL RECORDS MADE AVAILABLE.] The person 21.28 operating a cable communications companysystem, upon written 21.29 request, shall make available to the alternative provider 21.30 financial records supporting the reimbursement cost requested. 21.31 Sec. 19. Minnesota Statutes 2002, section 238.25, 21.32 subdivision 5, is amended to read: 21.33 Subd. 5. [SERVICE OF PETITION.] The petition must be 21.34 served upon all persons named in the petition as property owners 21.35 in the same manner as a summons in a civil action; except that, 21.36 service may be made upon a property owner by three weeks' 22.1 published notice if the person operating a cable communications 22.2 companysystem, itsor the person's agent or attorney, files an 22.3 affidavit stating on belief that the property owner is not a 22.4 resident of the state and that the company has mailed a copy of 22.5 the notice to the property owner at the property owner's place 22.6 of residence, or that after diligent inquiry the property 22.7 owner's place of residence cannot be ascertained by the 22.8 company. If the state is a property owner, the notice must be 22.9 served upon the attorney general. Any property owner not served 22.10 as provided under this paragraph is not bound by the proceeding 22.11 unless the property owner voluntarily appears thereinin the 22.12 proceeding. 22.13 Sec. 20. Minnesota Statutes 2002, section 238.25, 22.14 subdivision 10, is amended to read: 22.15 Subd. 10. [FINAL CERTIFICATE.] Upon completion of the 22.16 proceedings, the attorney for the person operating the cable 22.17 communications companysystem shall make a certificate 22.18 describing the access acquired and the purpose or purposes for 22.19 which acquired, and reciting the fact of final payment of all 22.20 awards or judgments in relation thereto. The certificate must 22.21 be filed with the court administrator and a certified copy 22.22 thereof filed for record with the county recorder. The record 22.23 is notice to all parties of the access to the premises described 22.24 in the petition. 22.25 Sec. 21. Minnesota Statutes 2002, section 238.35, 22.26 subdivision 1, is amended to read: 22.27 Subdivision 1. [LEGISLATIVE FINDINGS.] There is a 22.28 long-standing legislative policy in the state of Minnesota to 22.29 provide for the dedication or other provision of easements and 22.30 public rights-of-way required by public utilities and cable 22.31 communications companiessystems. Except for applicable22.32 governmental rules, these easements do not include any22.33 limitation on the type, number, or size of cables or related22.34 cable communication system components.There is a public 22.35 understanding and acceptance of the need of public utilities and 22.36 cable communications companiessystems to have the ability to 23.1 use existing utility easements and public rights-of-way in order 23.2 to provide new and improved cable communications services made 23.3 possible by technological developments and to make changes to 23.4 the cables or related cable communication systems components. 23.5 Changing technology has caused and will continue to cause over 23.6 time the development of new cable communications services 23.7 requiring changing uses of existing utility easements and public 23.8 rights-of-way. Cable communications companiessystems have a 23.9 need to use existing utility easements and public rights-of-way 23.10 in order to deliver their services to the public. The addition 23.11 of cable communications system components does not constitute an 23.12 unanticipated or added burden on the real estate subject to the 23.13 easements or public rights-of-way. 23.14 Sec. 22. Minnesota Statutes 2002, section 238.35, 23.15 subdivision 4, is amended to read: 23.16 Subd. 4. [RESTRICTIONS ON USE.] (a) As a condition of 23.17 using any utility easement, a cable communications company shall23.18 besystem is subject to any burdens, duties, or obligations 23.19 specified in the easement of the grantee of the easement. 23.20 (b) A cable communications company shall restore the real23.21 estate, and any landscaping or improvements thereon, to the23.22 condition they were in prior to entry within 30 days of23.23 completing the installation of the cables and related cable23.24 communications system components upon that real estate and to23.25 make changes to the cables or related cable communication23.26 systems components. Changing technology has caused and will23.27 continue to cause over time the development of new cable23.28 communications services requiring changing uses of existing23.29 utility easements. Restoration which cannot be completed during23.30 the winter months must be accomplished as promptly as weather23.31 conditions permitsystem seeking to use public rights-of-way is 23.32 subject to the rights and obligations of sections 237.162 and 23.33 237.163, and any local right-of-way ordinance adopted under 23.34 those statutes. 23.35 Sec. 23. Minnesota Statutes 2002, section 238.36, 23.36 subdivision 2, is amended to read: 24.1 Subd. 2. [CABLE COMMUNICATIONS COMPANY'SSYSTEM'S 24.2 EQUIPMENT.] "Cable communications company'ssystem's equipment" 24.3 means aerial wires, cables, amplifiers, associated power supply 24.4 equipment, and other transmission apparatus necessary for the 24.5 proper operation of the cable communications system in a 24.6 franchised area. 24.7 Sec. 24. Minnesota Statutes 2002, section 238.39, is 24.8 amended to read: 24.9 238.39 [LEGAL AUTHORITY.] 24.10 Every pole, duct, and conduit agreement must contain a 24.11 provision that the cable communications companysystem shall 24.12 submit to the public utility company evidence of the cable 24.13 communications company'ssystem's lawful authority to place, 24.14 maintain, and operate its facilities within public streets, 24.15 highways, and other thoroughfares and shall secure the legally 24.16 necessary permits and consents from federal, state, county, and 24.17 municipal authorities to construct, maintain, and operate 24.18 facilities at the locations of poles or conduit systems of the 24.19 public utility company whichthat it uses. The parties to the 24.20 agreement shall at all times observe and comply with, and the 24.21 provisions of a pole, duct, and conduit agreement are subject 24.22 to, the laws, ordinances, and rules whichthat in any manner 24.23 affect the rights and obligations of the parties to the 24.24 agreement, so long as the laws, ordinances, or rules remain in 24.25 effect. 24.26 Sec. 25. Minnesota Statutes 2002, section 238.40, is 24.27 amended to read: 24.28 238.40 [LIABILITY; INDEMNIFY PUBLIC UTILITY.] 24.29 (a) Every pole, duct, and conduit agreement must contain a 24.30 provision that the cable communications companysystem shall 24.31 defend, indemnify, protect, and save harmless the public utility 24.32 from and against any and all claims and demands for damages to 24.33 property and injury or death to persons, including payments made 24.34 under any worker's compensation law or under any plan for 24.35 employees' disability and death benefits, which may arise out of 24.36 or be caused: 25.1 (1) by the erection, maintenance, presence, use, or removal 25.2 of the cable communications company'ssystem's cable, equipment, 25.3 and facilities or by the proximity of the cables, equipment, and 25.4 facilities of the parties to the agreement ,; or 25.5 (2) by any act of the cable communications companysystem 25.6 on or in the vicinity of the public utility company's poles and 25.7 conduit system, in the performance of the agreement. Nothing25.8 contained in this section relieves the public utility company25.9 from liability for the negligence of the public utility company25.10 or anyone acting under its direction and control.25.11 (b) The cable communications companysystem shall also 25.12 indemnify, protect, and save harmless the public utility: 25.13 (1) from any and all claims and demands whichthat arise 25.14 directly or indirectly from the operation of the cable 25.15 communications company'ssystem's facilities including taxes, 25.16 special charges by others, claims, and demands (i) for damages 25.17 or loss for infringement of copyright, (ii) for libel and 25.18 slander, (iii) for unauthorized use of television broadcast 25.19 programs, and (iv) for unauthorized use of other program 25.20 material ,; and 25.21 (2) from and against all claims and demands for 25.22 infringement of patents with respect to the manufacture, use, 25.23 and operation of the cable communications equipment in 25.24 combination with the public utility company's poles, conduit 25.25 system, or otherwise. 25.26 (c) Nothing contained in this section relieves the public 25.27 utility company from liability for the negligence of the public 25.28 utility company or anyone acting under its direction and control. 25.29 Sec. 26. Minnesota Statutes 2002, section 238.43, 25.30 subdivision 1, is amended to read: 25.31 Subdivision 1. [ DEFINITIONREGIONAL CHANNEL ENTITY OR 25.32 ENTITY.] For the purposes of this section"Regional channel 25.33 entity" or "entity" means an independent, nonprofit corporation 25.34 to govern the operation of the regional channel. 25.35 Sec. 27. [REVISOR'S INSTRUCTIONS.] 25.36 (a) The revisor of statutes shall delete the words "shall 26.1 mean" and insert "means" where found in Minnesota Statutes, 26.2 section 238.02. 26.3 (b) The revisor of statutes shall change the term "cable 26.4 communications company" to "cable communications system" where 26.5 found in Minnesota Statutes, chapter 238. 26.6 (c) In Minnesota Statutes, section 238.18, subdivision 1, 26.7 the revisor of statutes shall delete paragraph (a) and renumber 26.8 paragraph (b) as section 238.02, subdivision 1b, and renumber 26.9 paragraph (c) as section 238.02, subdivision 34. 26.10 (d) In Minnesota Statutes, section 238.22, the revisor of 26.11 statutes shall renumber subdivision 6 as section 238.02, 26.12 subdivision 1a; subdivision 7 as section 238.02, subdivision 1c; 26.13 subdivision 8 as section 238.02, subdivision 1d; subdivision 10 26.14 as section 238.02, subdivision 21a; subdivision 11 as section 26.15 238.02, subdivision 28a; subdivision 12 as section 238.02, 26.16 subdivision 29a; subdivision 13 as section 238.02, subdivision 26.17 31a; and subdivision 14 as section 238.02, subdivision 31d. 26.18 (e) In Minnesota Statutes, section 238.36, the revisor of 26.19 statutes shall renumber subdivision 2 as section 238.02, 26.20 subdivision 3a; subdivision 3 as section 238.02, subdivision 26.21 20a; and subdivision 4 as section 238.02, subdivision 31b. 26.22 (f) The revisor of statutes shall renumber Minnesota 26.23 Statutes, section 238.43, subdivision 1, as section 238.02, 26.24 subdivision 31c. 26.25 Sec. 28. [REPEALER.] 26.26 (a) Minnesota Statutes 2002, sections 238.01; 238.02, 26.27 subdivisions 2, 17, 18, 19, and 25; 238.082; 238.083, 26.28 subdivisions 3 and 5; 238.084, subdivisions 2, 3, and 5; 238.12, 26.29 subdivision 1a; 238.15; 238.35, subdivisions 2 and 3; and 26.30 238.36, subdivision 1, are repealed. 26.31 (b) Minnesota Rules, parts 7810.0100, subparts 16, 17, 18, 26.32 30, 32, 33, and 39; 7810.0700; 7810.3400; 7810.3500; 7810.3600; 26.33 7810.3700; 7810.3800; 7810.4200; 7810.4400; 7810.4500; 26.34 7810.4600; 7810.4700; 7810.4800; 7810.5600; 7810.6900; 26.35 7810.8760; 7815.0100; 7815.0200; 7815.0300; 7815.0400; 26.36 7815.0500; and 7815.0600, are repealed. 27.1 ARTICLE 3 27.2 INTEREST ON DEPOSITS 27.3 Section 1. Minnesota Statutes 2002, section 237.06, is 27.4 amended to read: 27.5 237.06 [ REASONABLE RATERATES AND SERVICEDEPOSITS.] 27.6 It shall be the duty of every telephone company to furnish 27.7 reasonably adequate service and facilities for the accommodation 27.8 of the public, and its rates, tolls, and charges shall be fair 27.9 and reasonable for the intrastate use thereof. All unreasonable 27.10 rates, tolls, and charges are hereby declared to be unlawful. 27.11 Any telephone company organized after January 1, 1949,may 27.12 include in its charges a reasonable deposit fee not exceeding27.13 $50for facilities furnished. 27.14 Sec. 2. Minnesota Statutes 2002, section 325E.02, is 27.15 amended to read: 27.16 325E.02 [CUSTOMER DEPOSITS.] 27.17 Any customer deposit required before commencement of 27.18 service by a privately or publicly owned water, gas, telephone, 27.19 cable television, electric light, heat, or power company shall 27.20 be subject to the following: 27.21 (a) Upon termination of service with all bills paid, the 27.22 deposit shall be returned to the customer within 45 days, less 27.23 any deductions made in accordance with paragraph (c). 27.24 (b) Interest shall be paid on deposits in excess of $20 at27.25 the rate of not less than three percent per year. The rate of 27.26 interest must be set annually and be equal to the weekly average 27.27 yield of one-year United States Treasury securities adjusted for 27.28 constant maturity for the last full week in November. The 27.29 interest rate must be rounded to the nearest tenth of one 27.30 percent. By December 15 of each year, the commissioner of 27.31 commerce shall announce the rate of interest that must be paid 27.32 on all deposits held during all or part of the subsequent year. 27.33 The company may, at its option, pay the interest at intervals it 27.34 chooses but at least annually, by direct payment, or as a credit 27.35 on bills. 27.36 (c) At the time the deposit is made the company shall 28.1 furnish the customer with a written receipt specifying the 28.2 conditions, if any, the deposit will be diminished upon return. 28.3 (d) Advance payments or prepayments shall not be construed 28.4 as being a deposit. 28.5 Sec. 3. [RULES OR ORDERS SUPERSEDED.] 28.6 The interest rate set in section 2 supersedes any rate set 28.7 in rule or by administrative order. 28.8 Sec. 4. [EFFECTIVE DATE.] 28.9 Section 2 applies to interest paid on deposits held as of 28.10 January 1, 2005.