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Key: (1) language to be deleted (2) new language

                            CHAPTER 345-H.F.No. 3042 
                  An act relating to regulated industries; modifying 
                  certain provisions of power purchase contracts and 
                  biomass fuel exemptions; lengthening exemption period 
                  for large telephone company to change rates; modifying 
                  provisions for public utilities commission to assess 
                  costs of certain proceedings; providing additional 
                  antislamming and disclosure requirements on 
                  long-distance service providers; clarifying 
                  requirements relating to notification of price 
                  increases; requiring provision of international toll 
                  blocking; amending Minnesota Statutes 1996, sections 
                  216B.2424, subdivision 3; 237.295; 237.66, 
                  subdivisions 1a, 3, and by adding subdivisions; 
                  237.74, subdivision 6, and by adding a subdivision; 
                  and 325F.692, subdivision 1; Minnesota Statutes 1997 
                  Supplement, sections 216B.1645; 237.072; and 237.163, 
                  subdivision 8; proposing coding for new law in 
                  Minnesota Statutes, chapter 237; repealing Minnesota 
                  Statutes 1996, section 325F.692, subdivision 8; 
                  Minnesota Statutes 1997 Supplement, section 237.66, 
                  subdivision 1b. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1997 Supplement, section 
        216B.1645, is amended to read: 
           216B.1645 [POWER PURCHASE CONTRACTS OR INVESTMENTS.] 
           Upon the petition of a public utility, the public utilities 
        commission shall approve or disapprove power purchase contracts 
        or investments entered into or made by the utility to satisfy 
        the wind and biomass mandates contained in sections 216B.2423 
        and 216B.2424.  The expenses incurred in accordance with the 
        contract and the reasonable investments made by a public utility 
        with the approval of the commission shall be included by the 
        commission in its determination of just and reasonable rates. by 
        the utility over the duration of the approved contract or useful 
        life of the investment shall be recoverable from the ratepayers 
        of the utility, to the extent they are not offset by utility 
        revenues attributable to the contracts or investments.  Upon 
        petition by a public utility, the commission shall approve or 
        approve as modified a rate schedule providing for the automatic 
        adjustment of charges to recover the expenses or costs approved 
        by the commission.  Nothing in this section shall be construed 
        to determine the manner or extent to which revenues derived from 
        other generation facilities of the utility may be considered in 
        determining the recovery of the approved cost or expenses 
        associated with the mandated contracts or investments in the 
        event there is retail competition for electric energy. 
           Sec. 2.  Minnesota Statutes 1996, section 216B.2424, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FUEL EXEMPTION.] Over the duration of the 
        contract of a biomass power facility selected to satisfy the 
        mandate in subdivision 5, fuel sources that are not biomass may 
        be used to satisfy up to 25 percent of the fuel requirements of 
        a biomass power facility selected to satisfy the biomass power 
        mandate in subdivision 5.  A biomass power facility selected to 
        satisfy the mandate in subdivision 5 also may use fuel sources 
        that are not biomass during any period when biomass fuel sources 
        are not reasonably available to the facility due to any 
        circumstances constituting an act of God.  Fuel sources that are 
        not biomass used during such a period of biomass fuel source 
        unavailability shall not be counted toward the 25 percent 
        exemption provided in this subdivision.  For purposes of this 
        subdivision, "act of God" means any natural disaster or other 
        natural phenomenon of an exceptional, inevitable, or 
        irresistible character, including, but not limited to, flood, 
        fire, drought, earthquake, and crop failure resulting from 
        climatic conditions, infestation, or disease. 
           Sec. 3.  Minnesota Statutes 1997 Supplement, section 
        237.072, is amended to read: 
           237.072 [LIMITATION ON RATE CHANGES.] 
           (a) After December 15, 1997, the commission, 
        notwithstanding any provision to the contrary, shall not allow 
        an incumbent telephone company with more than 1,000,000 access 
        lines in Minnesota to change its retail rates for 
        telecommunications services without a determination of its 
        revenue requirement pursuant to section 237.075 unless the 
        incumbent telephone company is regulated pursuant to sections 
        237.76 to 237.773. 
           (b) If, prior to December 15, 1997, the incumbent telephone 
        company petitions the commission to become subject to an 
        alternative regulation plan under sections 237.76 to 237.773, 
        paragraph (a) shall not apply to the petitioning company until 
        180 270 days after the date of the filing of the petition. 
           Sec. 4.  Minnesota Statutes 1997 Supplement, section 
        237.163, subdivision 8, is amended to read: 
           Subd. 8.  [UNIFORM STATEWIDE STANDARDS.] (a) To ensure the 
        safe and convenient use of public rights-of-way in the state, 
        the public utilities commission shall develop and adopt by March 
        1, 1998 June 1, 1999, statewide construction standards for the 
        purposes of achieving substantial statewide uniformity in 
        construction standards where appropriate, providing competitive 
        neutrality among telecommunications right-of-way users, and 
        permitting efficient use of technology.  The standards shall 
        govern: 
           (1) the terms and conditions of right-of-way construction, 
        excavation, maintenance, and repair; and 
           (2) the terms and conditions under which telecommunications 
        facilities and equipment are placed in the public right-of-way. 
           (b) The public utilities commission is authorized to 
        review, upon complaint by an aggrieved telecommunications 
        right-of-way user, a decision or regulation by a local 
        government unit that is alleged to violate a statewide standard. 
           (c) A local unit of government may not adopt an ordinance 
        or other regulation that conflicts with a standard adopted by 
        the commission for the purposes described in paragraph (a). 
           Sec. 5.  Minnesota Statutes 1996, section 237.295, is 
        amended to read: 
           237.295 [ASSESSMENT OF REGULATORY EXPENSES.] 
           Subdivision 1.  [PAYMENT FOR INVESTIGATIONS.] (a) Whenever 
        the department or commission, in a proceeding upon its own 
        motion, on complaint, or upon an application to it, considers it 
        necessary, in order to carry out the duties imposed on it, to 
        investigate the books, accounts, practices, and activities of, 
        or make appraisals of the property of, a telephone any company, 
        or to render engineering or accounting services to a telephone 
        company, the telephone company parties to the proceeding shall 
        pay the expenses reasonably attributable to the investigation, 
        appraisal, or service proceeding.  The department and commission 
        shall ascertain the expenses, and the department shall render a 
        bill for those expenses to the telephone company parties, either 
        at the conclusion of the investigation, appraisal, or services, 
        or from time to time during its progress proceeding.  The 
        department is authorized to submit billings to parties at 
        intervals selected by the department during the course of a 
        proceeding.  
           (b) The allocation of costs may be adjusted for cause by 
        the commission during the course of the proceeding, or upon the 
        closing of the docket and issuance of an order.  In addition to 
        the rights granted in subdivision 3, parties to a proceeding may 
        object to the allocation at any time during the proceeding.  
        Withdrawal by a party to a proceeding does not absolve the party 
        from paying allocated costs as determined by the commission.  
        The commission may decide that a party should not pay any 
        allocated costs of the proceeding.  
           (c) The bill constitutes notice of the assessment and a 
        demand for payment.  The amount of the bills assessed by the 
        department under this subdivision must be paid by the telephone 
        company parties into the state treasury within 30 days from the 
        date of assessment.  The total amount, in a calendar year, for 
        which a telephone company may become liable, by reason of costs 
        incurred by the department and commission within that calendar 
        year, may not exceed two-fifths of one percent of the gross 
        jurisdictional operating revenue of the telephone company in the 
        last preceding calendar year.  Direct charges may be assessed 
        without regard to this limitation until the gross jurisdictional 
        operating revenue of the telephone company for the preceding 
        calendar year has been reported for the first time.  Where, 
        under this subdivision, costs are incurred within a calendar 
        year that are in excess of two-fifths of one percent of the 
        gross jurisdictional operating revenues, the excess costs are 
        not chargeable as part of the remainder under subdivision 2, but 
        must be paid out of the general appropriation of the department. 
           (d) Except as otherwise provided in paragraph (e), for 
        purposes of assessing the cost of a proceeding to a party, 
        "party" means any entity or group subject to the laws and rules 
        of this state, however organized, whether public or private, 
        whether domestic or foreign, whether for profit or nonprofit, 
        and whether natural, corporate, or political, such as a business 
        or commercial enterprise organized as any type or combination of 
        corporation, limited liability company, partnership, limited 
        liability partnership, proprietorship, association, cooperative, 
        joint venture, carrier, or utility, and any successor or 
        assignee of any of them; a social or charitable organization; 
        and any type or combination of political subdivision, which 
        includes the executive, judicial, or legislative branch of the 
        state, a local government unit, an agency of the state or a 
        local government unit, or a combination of any of them.  
           (e) For assessment and billing purposes, "party" does not 
        include the department of public service or the residential 
        utilities division of the office of attorney general; any entity 
        or group instituted primarily for the purpose of mutual help and 
        not conducted for profit; intervenors awarded compensation under 
        section 237.075, subdivision 10; or any individual or group or 
        counsel for the individual or group representing the interests 
        of end users or classes of end users of services provided by 
        telephone companies or telecommunications carriers, as 
        determined by the commission. 
           Subd. 2.  [ASSESSMENT OF COSTS.] The department and 
        commission shall quarterly, at least 30 days before the start of 
        each quarter, estimate the total of their expenditures in the 
        performance of their duties relating to telephone companies, 
        other than amounts chargeable to telephone companies under 
        subdivision 1, 5, or 6.  The remainder must be assessed by the 
        department to the telephone companies operating in this state in 
        proportion to their respective gross jurisdictional operating 
        revenues during the last calendar year.  The assessment must be 
        paid into the state treasury within 30 days after the bill has 
        been mailed to the telephone companies.  The bill constitutes 
        notice of the assessment and demand of payment.  The total 
        amount that may be assessed to the telephone companies under 
        this subdivision may not exceed one-eighth of one percent of the 
        total gross jurisdictional operating revenues during the 
        calendar year.  The assessment for the third quarter of each 
        fiscal year must be adjusted to compensate for the amount by 
        which actual expenditures by the commission and department for 
        the preceding fiscal year were more or less than the estimated 
        expenditures previously assessed.  A telephone company with 
        gross jurisdictional operating revenues of less than $5,000 is 
        exempt from assessments under this subdivision. 
           Subd. 3.  [OBJECTIONS.] Within 30 days after the date of 
        the mailing of any bill as provided by subdivisions 1 and, 2, 5, 
        and 6, the telephone company parties to the proceeding, against 
        which the bill has been assessed, may file with the commission 
        objections setting out the grounds upon which it is claimed the 
        bill is excessive, erroneous, unlawful, or invalid.  The 
        commission shall within 60 days provide for a contested case 
        hearing and issue an order in accordance with its findings.  The 
        order shall be appealable in the same manner as other final 
        orders of the commission. 
           Subd. 4.  [INTEREST IMPOSED.] The amounts assessed against 
        any telephone company or other party that is not paid after 30 
        days after the mailing of a notice advising the telephone 
        company or other party of the amount assessed against it, shall 
        draw interest at the rate of six percent per annum, and upon 
        failure to pay the assessment the attorney general shall proceed 
        by action in the name of the state against the telephone company 
        or other party to collect the amount due, together with interest 
        and the cost of the suit. 
           Subd. 5.  [ADMINISTRATIVE HEARING COSTS; APPROPRIATION.] 
        Any amounts billed to the commission or the department by the 
        office of administrative hearings for telephone contested case 
        hearings held pursuant to section 237.25 shall be assessed by 
        the commissioner or the department against the telephone company 
        parties to the proceeding.  The assessment shall be paid into 
        the state treasury within 30 days after a bill, which 
        constitutes notice of the assessment and demand for payment of 
        it, has been mailed to the telephone company parties.  Money 
        received shall be credited to a special account and is 
        appropriated to the commissioner or the department for payment 
        to the office of administrative hearings.  
           Subd. 6.  [EXTENDED AREA SERVICE BALLOTING ACCOUNT; 
        APPROPRIATION.] The extended area service balloting account is 
        created as a separate account in the special revenue fund in the 
        state treasury.  The commission shall render separate bills to 
        telephone companies only for direct balloting costs incurred by 
        the commission under section 237.161.  The bill constitutes 
        notice of the assessment and demand of payment.  The amount of a 
        bill assessed by the commission under this subdivision must be 
        paid by the telephone company into the state treasury within 30 
        days from the date of assessment.  Money received under this 
        subdivision must be credited to the extended area service 
        balloting account and is appropriated to the commission. 
           Sec. 6.  Minnesota Statutes 1996, section 237.66, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [NOTICE TO CUSTOMERS; RIGHT TO REQUIRE PRIOR 
        AUTHORIZATION.] (a) Each residential and commercial 
        telecommunications carrier customer may elect to require that 
        the telephone company serving the customer receive authorization 
        from the customer before a request to serve that customer from a 
        different intrastate telecommunications carrier than the carrier 
        currently serving the customer is processed. 
           (b) For new installations, a telephone company shall notify 
        a residential or commercial customer of the right described in 
        paragraph (a) when the customer initially requests intraexchange 
        service. 
           (c) Within one year of January 1, 1997, a 
        telecommunications carrier shall notify each of its existing 
        residential and commercial customers of the right described in 
        paragraph (a).  The notice may be made as a billing insert.  Any 
        customer notification of the rights set forth in this 
        subdivision shall be provided utilizing uniform, competitively 
        neutral language and the form, content, and style of the 
        authorization shall be consistent with federal law and 
        regulation and shall use language provided and approved by the 
        public utilities commission.  
           (d) A customer may change this election at any time by 
        notifying the telephone company of that decision.  No separate 
        charge may be imposed on the customer for electing to exercise 
        the right described in paragraph (a) or to change that election, 
        but a telephone company may recover in rates the reasonable 
        costs of administering the election. 
           (e) If a customer has elected to exercise the right 
        described in paragraph (a), the telephone company shall not 
        process a request to serve the customer by another 
        telecommunications carrier without prior authorization from the 
        customer.  If a customer has not elected to exercise the right 
        described in paragraph (a), the company may process a request to 
        serve the customer by another telecommunications carrier.  
           (f) A carrier may request such a change if the customer has 
        authorized the change either orally or in writing signed by the 
        customer.  If the carrier requests a change in a customer's 
        service provider, the carrier must: 
           (1) notify the customer in writing that the request has 
        been processed; and 
           (2) be able to present, upon complaint by the customer, 
        verified authorization for the change by the customer.  
           If the initial authorization was made orally, the carrier 
        must be able to present verified authorization received from the 
        customer within 14 business days of the date the oral 
        authorization was made. 
           (g) In the case of an oral authorization, if a 
        telecommunications carrier does not receive the verified 
        authorization within 14 business days of the date of the oral 
        authorization, the carrier must either bear the risk that the 
        change to the service of the carrier will be deemed unauthorized 
        under paragraph (h) or: 
           (1) immediately return the customer to the service of the 
        customer's original service provider; 
           (2) bear all costs associated with returning the customer; 
        and 
           (3) bill the customer for services rendered at the rate the 
        customer would have paid for such services if the request to 
        serve the customer had not been made. 
           (h) If the carrier is not able to present, upon complaint 
        by the customer, verified authorization received from the 
        customer as required under paragraph (f) and the carrier did not 
        return the customer to the service of the customer's original 
        service provider as required under paragraph (g), the change to 
        the service of the carrier shall be deemed to be unauthorized 
        from the date the carrier requested the change.  In that event, 
        the carrier shall: 
           (1) bear all costs of immediately returning the customer to 
        the service of the customer's original service provider; and 
           (2) bear all costs of serving that customer during the 
        period of unauthorized service. 
           (i) For purposes of paragraphs (f), (g), and (h), 
        authorization required in those paragraphs may be verified 
        utilizing any method that is consistent with federal law and 
        regulation.  
           Sec. 7.  Minnesota Statutes 1996, section 237.66, is 
        amended by adding a subdivision to read: 
           Subd. 1c.  [TIMING OF NOTICE; NEW CUSTOMERS.] For new 
        installations, a telephone company shall notify a residential or 
        commercial customer of the right described in subdivision 1a 
        when the customer initially requests intraexchange service.  Any 
        customer notification of the rights set forth in this section 
        shall be provided utilizing uniform, competitively neutral 
        language and the form, content, and style of the authorization 
        shall be consistent with federal law and regulation and shall 
        use language provided and approved by the public utilities 
        commission.  
           Sec. 8.  Minnesota Statutes 1996, section 237.66, is 
        amended by adding a subdivision to read: 
           Subd. 1d.  [CHANGE OF ELECTION.] A customer may change the 
        election under subdivision 1a at any time by notifying the 
        telephone company of that decision.  No separate charge may be 
        imposed on the customer for electing to exercise the right 
        described in subdivision 1a or to change that election, but a 
        telephone company may recover in rates the reasonable costs of 
        administering the election. 
           Sec. 9.  Minnesota Statutes 1996, section 237.66, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ENFORCEMENT.] If, after an expedited procedure 
        conducted under section 237.61, the commission finds that a 
        telephone company is failing to provide disclosure as required 
        under subdivision 1, or the notification required under 
        subdivision 1a, paragraphs (b) and (c) subdivision 1c, it shall 
        order the company to take corrective action as necessary. 
           Sec. 10.  [237.661] [ANTISLAMMING.] 
           Subdivision 1.  [ANTISLAMMING DUTIES OF LOCAL TELEPHONE 
        COMPANY.] If a customer has elected to exercise the right 
        described in section 237.66, subdivision 1a, the telephone 
        company serving the customer shall not process a request to 
        serve the customer by another telecommunications carrier without 
        prior authorization from the customer.  If a customer has not 
        elected to exercise the right described in that subdivision, the 
        company may process a request to serve the customer by another 
        telecommunications carrier. 
           Subd. 2.  [ANTISLAMMING DUTIES OF SOLICITING CARRIER.] (a) 
        A telecommunications carrier may request that the telephone 
        company serving a customer process a change in that customer's 
        long-distance provider, if the customer has authorized the 
        change either orally or in writing signed by the customer.  
        Prior to requesting a change in a customer's long-distance 
        service provider, the carrier must confirm: 
           (1) the customer's identity with information unique to the 
        customer, unless the customer refused to provide identifying 
        information, then that fact should be noted; 
           (2) that the customer has been informed of the offering 
        made by the carrier; 
           (3) that the customer understands that the customer is 
        being requested to change telecommunication carriers; 
           (4) that the customer has the authority to authorize the 
        change; and 
           (5) that the customer agrees to the change. 
           (b) After requesting the change in long-distance service 
        provider, the carrier must: 
           (1) notify the customer in writing that the request has 
        been processed; and 
           (2) be able to produce, upon complaint by the customer, 
        evidence that the carrier verified the authorization by the 
        customer to change the customer's long-distance service 
        provider.  If the carrier used a negative check-off verification 
        procedure as defined in subdivision 4, paragraph (c), the 
        evidence must include a tape recording of the initial oral 
        authorization. 
           Subd. 3.  [PENALTY FOR SLAMMING.] If the carrier is not 
        able to present, upon complaint by the customer, evidence that 
        complies with subdivision 2, paragraph (b), clause (2), the 
        change to the service of the carrier is deemed to be 
        unauthorized from the date the carrier requested the change.  In 
        that event, the carrier shall: 
           (1) bear all costs of immediately returning the customer to 
        the service of the customer's original service provider; and 
           (2) bear all costs of serving that customer during the 
        period of unauthorized service. 
           Subd. 4.  [VERIFICATION PROCEDURES; EVIDENCE OF 
        AUTHORIZATION.] (a) Customer authorization for a change in the 
        customer's long-distance service provider may be verified using 
        a verification procedure that complies with federal law or 
        regulation.  Except as provided in paragraph (b), the 
        requirement that the carrier be able to produce evidence of 
        customer authorization is satisfied if the carrier uses a 
        federally authorized verification procedure. 
           (b) If federal law or regulation authorizes a carrier to 
        use a negative check-off verification procedure, and the carrier 
        does so, the carrier must be able to produce a tape recording of 
        the initial oral authorization by the customer to change 
        long-distance service providers as evidence of the 
        authorization.  The initial oral authorization must include 
        confirmation of the items listed in subdivision 2, paragraph (a).
           (c) "Negative check-off" means a verification procedure 
        that consists of: 
           (1) an initial oral authorization by the customer to change 
        long-distance service providers; and 
           (2) a mailing to the customer by the soliciting 
        telecommunications carrier regarding the change in service 
        providers that informs the customer that if the customer fails 
        to cancel the change in service providers, the change will be 
        deemed authorized and verified. 
           Sec. 11.  [237.662] [NOTICE AND DISCLOSURE REQUIREMENTS OF 
        LONG-DISTANCE PROVIDERS.] 
           Subdivision 1.  [INFORMATION REQUIRED.] When contacted by a 
        customer regarding the purchase of long-distance 
        telecommunications services, or when soliciting customers via 
        mail or telephone, a provider of long-distance services shall 
        provide the customer with the following information, if the 
        service is being offered to the customer, about the service 
        offering either orally or in writing: 
           (1) the price or range of prices of interstate message toll 
        service accessed by dialing "1+" or "10-xxx", including any 
        difference in prices for evening, night, or weekend calls; 
           (2) the price or range of prices of intrastate interLATA 
        message toll service accessed by dialing "1+" or "10-xxx", 
        including any difference in prices for evening, night, or 
        weekend calls; 
           (3) the price or range of prices of intrastate intraLATA 
        message toll service accessed by dialing "1+" or "10-xxx", 
        including any difference in prices for evening, night, or 
        weekend; 
           (4) any minimum volume requirements, fixed flat fees, 
        service charges, surcharges, termination charges or other 
        non-service-specific charges, including the fact that the 
        provider of local service may charge a one-time fee for changing 
        carriers; and 
           (5) any special promotional rate or promotional offering 
        related to the services or prices described in clauses (1) to (4)
        above, including any limitations or restrictions on the 
        promotional rates or offerings. 
           Subd. 2.  [PRICE, TERMS, AND RESTRICTIONS IN WRITING.] If a 
        customer agrees to purchase telecommunications services from the 
        provider of long-distance services on a presubscription basis, 
        the provider shall send the customer written information 
        regarding services subscribed to, containing: 
           (1) the information regarding prices and charges described 
        in subdivision 1, clauses (1) to (5); 
           (2) the price for calls placed with a calling card issued 
        to the customer by the provider and any surcharge for placing 
        calls with a calling card; 
           (3) the price for calls charged to the customer when a 
        personal "1-800" number for long-distance services issued to the 
        customer by the provider is used; and 
           (4) the price of directory assistance calls. 
           This written information must be sent to the customer 
        within seven business days from the date of the verification of 
        the customer's authorization, unless federal law or regulation 
        requires notice to be sent by an earlier date. 
           Subd. 3.  [FILED TARIFFS NO DEFENSE.] That a 
        telecommunications carrier has intrastate tariffs or price lists 
        for the services listed in subdivisions 1 and 2 on file with the 
        public utilities commission or department of public service is 
        not a defense to any action brought for failure to disclose 
        intrastate prices for which disclosure is required under this 
        section. 
           Sec. 12.  [237.663] [LOADING.] 
           (a) Except as provided in paragraph (b) or (c), a telephone 
        company or telecommunications carrier providing local service 
        shall not charge a telephone service subscriber, as defined in 
        section 325F.692, for a telephone or telecommunications service 
        that is not required by the commission to be offered and for 
        which the subscriber did not explicitly contract.  
           (b) If a charge is assessed on a per-use basis for a 
        service described in paragraph (a), the charge must be applied 
        as a credit to the subscriber's next monthly bill, if the 
        subscriber notifies the telephone company or telecommunications 
        carrier that the subscriber did not utilize the service or did 
        not authorize the utilization of the service. 
           (c) A telephone company or telecommunications carrier that 
        receives a notification from a telephone service subscriber 
        under paragraph (b) shall inform the subscriber of the ability 
        to block the services from future use by the subscriber, and 
        shall block the services from future use by the subscriber, if 
        the subscriber so requests.  If a subscriber requests that the 
        carrier or company not block the service or later requests to 
        have the block lifted, the subscriber shall be responsible for 
        charges caused by the future utilization of that service.  The 
        carrier or company may not charge a recurring fee for blocking 
        the service. 
           Sec. 13.  Minnesota Statutes 1996, section 237.74, 
        subdivision 6, is amended to read: 
           Subd. 6.  [TARIFF OR PRICE LIST CHANGES.] (a) 
        Telecommunications carriers may: 
           (1) decrease the rate for a service, or make any change in 
        a tariff or price list that results in a decrease in rates, 
        effective without notice to its customers or the commission; and 
           (2) offer a new service, increase the rate for a service, 
        or change the terms, conditions, rules, and regulations of its 
        service offering effective upon notice to its customers.  
        Subject to subdivisions 2 and 9, a telecommunications carrier 
        may discontinue a service, except that a telecommunications 
        carrier must first obtain prior commission approval before 
        discontinuing service to another telecommunications carrier if 
        end users would be deprived of service because of the 
        discontinuance. 
           (b) A telecommunications carrier may give notice to its 
        customers by bill inserts, by publication in newspapers of 
        general circulation, or by any other reasonable means.  However, 
        notice of increases for intrastate residential rates for the 
        services referenced in section 237.662, subdivision 1, shall be 
        made by bill inserts prominently displaying the notice of price 
        increase on the customer's bill, or by a direct mailing or phone 
        call to the customer.  Customer notices for increases of 
        intrastate rates for those services must include as a heading 
        "NOTICE OF PRICE INCREASE". 
           Sec. 14.  Minnesota Statutes 1996, section 237.74, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [INTERNATIONAL CALL BLOCKING.] A 
        telecommunications carrier, on its own or in conjunction with 
        the telephone subscriber's provider of local telephone service, 
        shall offer comprehensive international toll blocking of 
        nondomestic area codes that are part of the North American 
        numbering plans, as a condition of offering service in Minnesota.
           Sec. 15.  Minnesota Statutes 1996, section 325F.692, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
        section, the following terms have the meanings given them. 
           (b) "Information service" means a billed service 
        transmitted exclusively orally via the telecommunications 
        network that may include provision of information or advice, 
        participation in trivia or other games, participation in adult 
        conversation or other group bridging services, or provision of 
        similar billed services.  An information service may be accessed 
        by an information service customer by various methods including, 
        but not limited to, dialing a 1-900 or 1-800 telephone number, 
        or by the customer receiving a collect call from an information 
        service provider following the customer's 1-800 call. 
           (c) "Information service customer" means a person who 
        receives information transmitted from or participates in 
        conversation enabled by an information service provider. 
           (d) "Information service provider" means a person who 
        provides information services and directly, or indirectly 
        through a billing agent, either charges information service 
        customers for use of the information service or includes the 
        costs associated with providing information services in the 
        charge for a long-distance call. 
           (e) "Telephone service subscriber" means a person who 
        contracts with a telephone company for telephone services. 
           Sec. 16.  [REPEALER.] 
           (a) Minnesota Statutes 1997 Supplement, section 237.66, 
        subdivision 1b, is repealed. 
           (b) Minnesota Statutes 1996, section 325F.692, subdivision 
        8, is repealed. 
           Sec. 17.  [EFFECTIVE DATE.] 
           Sections 1, 2, 3, 4, and 16, paragraph (b), are effective 
        the day following final enactment.  Sections 6 to 13, 15, and 
        16, paragraph (a), are effective July 1, 1998.  Section 14 is 
        effective January 1, 1999. 
           Presented to the governor March 27, 1998 
           Signed by the governor March 31, 1998, 10:52 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes