SF 736

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 05/11/2016 08:29am

A bill for an act
relating to telecommunications; providing for competitive market regulation for
certain local exchange carriers; proposing coding for new law in Minnesota
Statutes, chapter 237.

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

Section 1.

new text begin [237.025] COMPETITIVE MARKET REGULATION.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Competitive service provider" means a provider
of local residential voice service who owns a substantial proportion of the last-mile or
loop facilities delivering the service in an exchange service area, without regard to the
technology used to deliver the service. "Competitive service provider" includes, but is
not limited to, a wireless or Voice over Internet Protocol provider who offers service to
a majority of households in an exchange service area with the wireless provider's own
facilities and the remainder by roaming through another wireless carrier's facilities, but
does not include:
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new text begin (1) satellite technology;
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new text begin (2) wireless providers who resell voice services purchased at wholesale;
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new text begin (3) competitive local exchange carriers who do not who own a substantial proportion
of the last-mile or loop facilities over which they provide local residential voice service; or
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new text begin (4) over-the-top VOIP providers.
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new text begin (b) "Exchange service area" has the meaning given in Minnesota Rules, part
7810.0100, subpart 15.
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new text begin (c) "Over-the-top VOIP provider" means a VOIP provider that has no business
relationship with the provider of the Internet connection used by the VOIP provider to
deliver voice service.
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new text begin (d) "VOIP" or "Voice over Internet Protocol" means any service that:
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new text begin (1) enables real-time two-way voice communications that originate from or
terminate at the user's location in Internet protocol or any successor protocol; and
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new text begin (2) permits users to receive calls that originate on the public switched telephone
network and terminate calls to the public switched telephone network.
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new text begin Subd. 2. new text end

new text begin Petition. new text end

new text begin (a) A local exchange carrier may petition the commission to be
regulated under this section in any exchange service area in which the carrier provides
local exchange service. The petition must be served on the commission, the department,
the Office of the Attorney General, and any other person designated by the commission.
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new text begin (b) A petition filed under this subdivision must include:
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new text begin (1) a list of exchange service areas in which the local exchange carrier is seeking to
be regulated under this section;
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new text begin (2) the local services offered by the local exchange carrier in each exchange service
area;
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new text begin (3) a list of alternative providers of local services in each exchange service area;
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new text begin (4) a description of affiliate relationships the petitioning local exchange carrier has
with any other provider of local service in each exchange service area;
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new text begin (5) documentation demonstrating the loss of local residential voice customers in
each local calling area over, at a minimum, the previous five years;
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new text begin (6) evidence demonstrating that the local exchange carrier satisfies the competitive
criteria in subdivision 4 in each exchange service area; and
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new text begin (7) other information requested by the commission that is relevant to the applicable
competitive criteria in subdivision 4.
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new text begin Subd. 3. new text end

new text begin Process; objection; review. new text end

new text begin (a) A petition by a local exchange carrier
seeking to be regulated under this section shall be reviewed by the commission as
provided under this subdivision.
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new text begin (b) A party objecting to a local exchange carrier's petition must file an objection
within 20 days.
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new text begin (c) If no party objects to a petitioning local exchange carrier's proposed election
within 20 days of the filing of the petition, the petition is deemed approved.
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new text begin (d) If a party raises an objection to a local exchange carrier's petition, the commission
must provide interested parties an opportunity to comment on the merits of the petition.
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new text begin (e) The commission shall make a final determination regarding the petition within
180 days of the date all information required under subdivision 2 was submitted.
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new text begin (f) In reviewing the petition, the commission may request additional information
from the petitioning local exchange carrier and other service providers under the
commission's jurisdiction that provide service in the relevant exchange service area.
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new text begin Subd. 4. new text end

new text begin Competitive criteria. new text end

new text begin (a) If a petitioning local exchange carrier
demonstrates that it serves fewer than 50 percent of the households in an exchange service
area, and at least 50 percent of households in the exchange service area can choose voice
service from at least one additional competitive service provider, the commission shall
approve the petition.
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new text begin (b) If a petitioning local exchange carrier serves more than 50 percent of the
households in an exchange service area, the commission shall approve the petition if
the petitioner demonstrates that:
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new text begin (1) at least 50 percent of households in the exchange service area can choose voice
service from at least one additional competitive service provider;
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new text begin (2) no significant economic, technological, or other barriers to market entry and
exit exist; and
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new text begin (3) no single provider has the ability to maintain prices above competitive levels for
a significant period of time or otherwise deter competition.
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new text begin Subd. 5. new text end

new text begin Market regulations. new text end

new text begin (a) A local exchange carrier that has received
approval from the commission to be regulated under this section in one or more of its
exchange service areas shall be subject to regulation as a telecommunications carrier
under section 237.035 and as a competitive local exchange carrier in Minnesota Rules,
parts 7811.2210 and 7812.2210, as applicable, in the approved exchange service areas.
Regulation under this section is effective 30 days after a petition is approved by the
commission under subdivision 4.
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new text begin (b) If a local exchange carrier receives commission approval to be regulated under
this section, any existing alternative form of plan, price, or service regulation terminates
on the day the regulation under this section becomes effective.
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new text begin Subd. 6. new text end

new text begin Relation to other law. new text end

new text begin Nothing in this section affects or modifies:
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new text begin (1) any entity's obligations or rights, or the commission's authority, under the Federal
Communications Act of 1934, United States Code, title 47, sections 251 and 252;
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new text begin (2) any commission jurisdiction over:
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new text begin (i) intrastate switched access rates, terms, and conditions, including the
implementation of federal law with respect to intercarrier compensation; or
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new text begin (ii) commission authority to address or affect the resolution of disputes regarding
intercarrier compensation; and
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new text begin (3) the rights of any entity, or the authority of the commission or local government
authorities, with respect to the use and regulation of public rights-of-way under sections
237.162 and 237.163.
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new text begin Subd. 7. new text end

new text begin Reexamining applicability of competitive criteria. new text end

new text begin The commission
may, upon petition or on its own motion, open a proceeding to examine whether the
competitive criteria in subdivision 4 continue to be met in an exchange service area in
which a local exchange carrier previously received commission approval to be regulated
under this section. If the commission determines that the competitive criteria are no
longer met, it shall determine the appropriate level of regulation for that provider in that
exchange service area.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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