1.1 	A bill for an act
1.2 	relating to telecommunications; providing for basic
1.3 	services regulation of telephone companies; proposing
1.4 	coding for new law in Minnesota Statutes, chapter 237.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [237.85] DEFINITIONS.
1.7 		Subdivision 1.Scope. The definitions in this section
1.8 	apply to sections 237.85 to 237.88.
1.9 		Subd. 2.Basic services. "Basic services" means one or
1.10 	more unbundled, single line, unlimited usage, residential voice
1.11 	local exchange telephone services or unbundled, single line,
1.12 	unlimited usage, business voice local exchange telephone
1.13 	services.
1.14 		Subd. 3.Commission. "Commission" means the Public
1.15 	Utilities Commission.
1.16 		Subd. 4.Exempt telephone company. "Exempt telephone
1.17 	company" means a local exchange carrier that elects to operate
1.18 	under basic services regulation pursuant to section 237.86.
1.19 		Subd. 5.Local exchange carrier. "Local exchange carrier"
1.20 	means an entity that holds a certificate of authority to furnish
1.21 	local exchange service or interexchange telephone service, or
1.22 	both, and that has an effective tariff on file with the
1.23 	commission.
1.24 		Subd. 6.Retail. "Retail" means provision of local
1.25 	exchange service or interexchange telephone service, or both, to
2.1 	an end user.

2.2 	Sec. 2. [237.86] BASIC SERVICES REGULATION.
2.3 	A form of alternative regulation known as "basic services
2.4 	regulation" is available to a telephone company that has been
2.5 	issued a certificate of authority by the commission.  A
2.6 	telephone company may opt into basic services regulation by
2.7 	giving the commission at least 30 days written notice of its
2.8 	election.  Under basic services regulation an exempt telephone
2.9 	company offering local exchange telephone service must file
2.10 	tariffs for basic services.  These tariffs must be filed,
2.11 	initially, at least 30 days in advance to become effective on
2.12 	the date the election becomes effective.

2.13 	Sec. 3. [237.87] COMMISSION AUTHORITY.
2.14 	(a) The commission has the following authority over exempt
2.15 	telephone companies:
2.16 	(1) receive and investigate complaints against telephone
2.17 	companies to the extent the complaints relate to the authority
2.18 	retained by the commission in this section;
2.19 	(2) enforce the standards of network service necessary to
2.20 	maintain the public health and safety by adopting rules setting
2.21 	network performance standards equally applicable to all
2.22 	telephone companies;
2.23 	(3) enforce the emergency 911 technical network standards
2.24 	by adopting rules equally applicable to all telephone companies;
2.25 	(4) review new and revised tariffs, other than rates, filed
2.26 	by exempt telephone companies to ensure that proposed tariffs
2.27 	will not unreasonably affect any class of exempt telephone
2.28 	company customers and to enforce those tariffs.  Tariffs, other
2.29 	than rates, on file with the commission prior to the telephone
2.30 	company electing to become an exempt telephone company may be
2.31 	adopted by the exempt telephone company without notice or review
2.32 	by the commission.  The commission must apply the same standard
2.33 	of nonrate tariff review to all new entrant nonrate tariffs;
2.34 	(5) adopt necessary rules that are equally applicable to
2.35 	new entrants that:
2.36 	(i) require customer notice of tariff rate changes or
3.1 	withdrawal of tariffed service offerings; and 
3.2 	(ii) provide for disconnection of residential customers for
3.3 	nonpayment of local exchange service, late payment fees, and
3.4 	deposits for customers, including the payment of interest on
3.5 	customer deposits;
3.6 	(6) administer the telecommunications relay service and
3.7 	telephone assistance plan, including the assessment to telephone
3.8 	companies pursuant to sections 237.49, 237.50 to 237.56, and
3.9 	237.69 to 237.711;
3.10 	(7) enforce the Underground Utility Damage Prevention Act
3.11 	pursuant to chapter 216D;
3.12 	(8) enforce the provisions of law relating to rights-of-way
3.13 	affecting telephone companies pursuant to sections 237.162 and
3.14 	237.163;
3.15 	(9) discharge the responsibilities of state commissions
3.16 	under the federal Telecommunications Act of 1996, Public Law
3.17 	104-104, and enforce its lawful orders; and 
3.18 	(10) retain authority to require a telephone company opting
3.19 	into basic services regulation to furnish basic services to any
3.20 	person, firm, or corporation in its service area desiring basic
3.21 	services.
3.22 	(b) Notwithstanding any other provision of law, basic
3.23 	services regulation exempts all retail telephone services,
3.24 	including their rates, types, and manner of offering, and
3.25 	service quality, from the jurisdiction of the commission except
3.26 	to the extent specifically provided in this section.  The
3.27 	commission has no jurisdiction over the affiliate transactions,
3.28 	equity and debt financing, transfers, or other public utility
3.29 	operations of an exempt telephone company except to the extent
3.30 	specifically permitted in this section.  Small telephone
3.31 	companies under section 237.773 are not subject to basic service
3.32 	regulation.

3.33 	Sec. 4. [237.88] TELEPHONE COMPANY IMPLEMENTATION
3.34 	PROCEDURES; DUTIES.
3.35 	(a) An exempt telephone company must file and maintain on
3.36 	file with the commission tariffs for its basic services that
4.1 	contain service descriptions and the terms and conditions,
4.2 	including rates, under which the services are offered to the
4.3 	public.
4.4 	(b) An exempt telephone company must also file and maintain
4.5 	on file with the commission tariffs for the network components
4.6 	of its enhanced 911 services that contain terms and conditions,
4.7 	including rates under which services are offered to the public.
4.8 	(c) An exempt telephone company must file and maintain on
4.9 	file with the commission tariffs for extended area local calling
4.10 	rates implemented previously.  An exempt telephone company may,
4.11 	at its option, continue to file tariffs for its nonbasic
4.12 	telephone services.  Any nonbasic services tariffs filed must
4.13 	contain service descriptions and the terms and conditions,
4.14 	including rates, under which the services are offered to the
4.15 	public.  An exempt telephone company filing tariffs for nonbasic
4.16 	services must offer these tariffed telephone services where
4.17 	available throughout its service area at that tariffed rate.
4.18 	However, an exempt telephone company may offer nonbasic services
4.19 	under special promotions and optional customer agreements that
4.20 	contain terms and conditions, including rates that vary from any
4.21 	tariffed terms and conditions.
4.22 	(d) An exempt telephone company must provide basic services
4.23 	at a month tariffed rate where available throughout its service
4.24 	area, except during any transition period described in section
4.25 	237.86.

4.26 	Sec. 5. EFFECTIVE DATE.
 4.27 	Sections 1 to 4 are effective the day following final
4.28 	enactment.