Minnesota Session Laws - 1995, Regular Session

                            CHAPTER 191-S.F.No. 1173 
                  An act relating to telecommunications; regulating the 
                  sale of local exchange service territory; proposing 
                  coding for new law in Minnesota Statutes, chapter 237. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [237.231] [SALE OF LOCAL EXCHANGE SERVICE.] 
           Subdivision 1.  [COMMISSION APPROVAL.] A Class A telephone 
        company may not sell a local exchange service territory without 
        receiving the prior consent of the commission.  For the purposes 
        of this section, a Class A telephone company is a telephone 
        company which has annual revenues from regulated 
        telecommunication operations of $100,000,000 or more, as defined 
        by the Federal Communications Commission in Code of Federal 
        Regulations, title 47, section 32.11, paragraphs (a)(1) and (e). 
           Subd. 2.  [NOTICE OF INTENDED SALE.] At least 90 days prior 
        to applying to the commission for consent to a proposed sale or 
        acquisition of a local exchange service, the selling telephone 
        company must provide notice to its customers in that local 
        exchange of its intent to sell and identify the affected local 
        exchange, and the name of the proposed buyer.  The notice must 
        be on a separate document and included in the company's monthly 
        billings to customers.  The commission must approve the form of 
        all notices. 
           Subd. 3.  [RESIDENT POLL.] At least 60 days prior to the 
        hearing under subdivision 4, the telephone company proposing the 
        sale of a local exchange service must provide each of its 
        customers with a stamped envelope addressed to the commission 
        and must inform the customer that the customer is encouraged to 
        comment on the quality of service that has been provided in the 
        local exchange service territory by the telephone company over 
        the last 12 months. 
           Subd. 4.  [PUBLIC HEARING.] At least 30 days prior to the 
        commission's deliberations about a proposed sale or acquisition 
        of a local exchange service territory, the commission must hold 
        a public hearing at a location within the affected local 
        exchange service territory allowing the public an opportunity to 
        be heard and to present any concerns or comments. 
           Subd. 5.  [REQUIREMENTS FOR CONSENT.] The commission may 
        not give consent to a sale of a service territory unless, at a 
        minimum, it finds all of the following: 
           (1) the quality of service provided by the telephone 
        company servicing the local exchange service territory has 
        substantially complied with all applicable quality of service 
        standards adopted by rule by the commission for the previous 
        calendar year; 
           (2) the proposed buyer is financially responsible and 
        capable of making necessary investments to maintain quality 
        service at levels required by rule; and 
           (3) the proposed buyer demonstrates that it has an adequate 
        number of properly trained employees to maintain service at 
        required levels. 
           The commission shall, as a condition of its consent, 
        require a proposed buyer to enter into binding commitments 
        obligating the buyer to maintain minimum levels of investment 
        and staffing needed to meet the commission's quality of service 
        rules.  These commitments are in addition to any other 
        conditions that the commission may impose. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective on December 31, 1995. 
           Presented to the governor May 17, 1995 
           Signed by the governor May 19, 1995, 2:25 p.m.