SF 1540

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to telecommunications; providing for basic
services regulation of telephone companies; 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 [237.85] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section
apply to sections 237.85 to 237.88.
new text end

new text begin Subd. 2. new text end

new text begin Basic services. new text end

new text begin "Basic services" means one
unbundled, single line, unlimited usage, residential voice local
exchange telephone services or unbundled, single line, unlimited
usage, business voice local exchange telephone services. "Basic
services" does not include any state or federally authorized or
mandated services.
new text end

new text begin Subd. 3. new text end

new text begin Basic services regulated company. new text end

new text begin "Basic
services regulated company" means a telephone company that
chooses to operate under basic service regulation under section
237.86.
new text end

new text begin Subd. 4. new text end

new text begin Commission. new text end

new text begin "Commission" means the Public
Utilities Commission.
new text end

new text begin Subd. 5. new text end

new text begin Retail. new text end

new text begin "Retail" means provision of local
exchange service or interexchange telephone service, or both, to
an end user.
new text end

Sec. 2.

new text begin [237.86] BASIC SERVICES REGULATION.
new text end

new text begin A form of alternative regulation known as "basic services
regulation" is available to a telephone company that provides
local exchange service in Minnesota. A telephone company may
opt into basic services regulation by giving the commission at
least 30 days written notice of its election. Under basic
services regulation a telephone company offering local exchange
telephone service must file tariffs for basic services. These
tariffs must be filed, initially, at least 30 days in advance to
become effective on the date the election becomes effective.
new text end

Sec. 3.

new text begin [237.87] COMMISSION AUTHORITY.
new text end

new text begin (a) The commission has the following authority over a basic
services regulated company:
new text end

new text begin (1) receive and investigate complaints against telephone
companies to the extent the complaints relate to the authority
retained by the commission in this section;
new text end

new text begin (2) adopt necessary rules that are equally applicable to
all providers of telecommunications services that:
new text end

new text begin (i) require customer notice of tariff rate changes or
withdrawal of tariffed service offerings;
new text end

new text begin (ii) provide for disconnection of basic services customers
for nonpayment of local exchange service, late payment fees, and
deposits for customers, including the payment of interest on
customer deposits; and
new text end

new text begin (iii) establish service quality standards; and
new text end

new text begin (3) administer the telecommunications relay service and
telephone assistance plan, including the assessment to telephone
companies pursuant to sections 237.49, 237.50 to 237.56, and
237.69 to 237.711.
new text end

new text begin (b) Notwithstanding any other provision of law, basic
services regulation exempts all retail telephone services,
including their rates, types, and manner of offering, and
service quality, from the jurisdiction of the commission except
to the extent specifically provided in this section. The
commission retains all authority contained elsewhere in this
chapter.
new text end

Sec. 4.

new text begin [237.88] IMPLEMENTATION PROCEDURES; DUTIES.
new text end

new text begin (a) A basic services regulated company must file and
maintain on file with the commission tariffs for its basic
services that contain service descriptions and the terms and
conditions, including rates, under which the services are
offered to the public. No telephone company or
telecommunications carrier is prohibited from offering customer
incentives of the type offered by other telephone companies,
telecommunications carriers, or providers of voice or data
services.
new text end

new text begin (b) A basic services regulated company offering local
exchange telephone service must tariff its monthly rates for
each basic service. The basic services regulated company must
provide its basic services at its current monthly tariffed
rates, except during any transition period described in this
section. A basic services regulated company may not increase
its rates for each basic service offering by more than 50 cents
per month per line during the first calendar year, or portion of
a year, it opts into basic services regulation. A basic
services regulated company may increase its rates by up to 50
cents per line per month for each of the following five calendar
years.
new text end

new text begin (c) After five years, the commission shall use the gross
domestic Product Price Index, as published by the federal
government, for an inflation measure to determine the amount a
basic services regulated telephone company may increase its
monthly per line prices for its basic service offerings. The
commission may adopt by rule a more current measure of inflation
for communications services.
new text end

new text begin (d) The initial rates for each basic service of a basic
service regulated company may not exceed the highest tariffed
rate in effect in its service territory for the corresponding
basic service prior to opting into basic service regulation.
The rates shall remain in effect for a minimum of one year from
its initial effective date. Any subsequent increases in the
rates may not be effective until a minimum of 12 months have
passed since any previous increase.
new text end

new text begin (e) Nothing in this section prohibits a telephone company
or a telecommunications carrier from decreasing its basic
service rates. A basic services regulated telephone company or
telecommunications carrier may subsequently increase rates, but
may not exceed the authorized transitional or inflation adjusted
monthly rates. Except as necessary to comply with this section,
no basic service may be priced below the total service long-run
incremental cost for the service.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final
enactment.
new text end