1.1                          A bill for an act 
  1.2             relating to telecommunications; changing provisions 
  1.3             governing interest on deposits; amending Minnesota 
  1.4             Statutes 2002, sections 237.06; 325E.02. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 237.06, is 
  1.7   amended to read: 
  1.8      237.06 [~~REASONABLE RATE~~ RATES AND ~~SERVICE~~ DEPOSITS.] 
  1.9      Subdivision 1.  [REASONABLE RATE AND SERVICE.] It shall be 
  1.10  the duty of every telephone company to furnish reasonably 
  1.11  adequate service and facilities for the accommodation of the 
  1.12  public, and its rates, tolls, and charges shall be fair and 
  1.13  reasonable for the intrastate use thereof.  All unreasonable 
  1.14  rates, tolls, and charges are hereby declared to be unlawful.  
  1.15  Any telephone company ~~organized after January 1, 1949,~~ may 
  1.16  include in its charges a reasonable deposit fee ~~not exceeding~~ 
  1.17  ~~$50~~ for facilities furnished.  
  1.18     Subd. 2.  [INTEREST PAID ON DEPOSITS.] Interest must be 
  1.19  paid on all deposits held by the utility.  The rate of interest 
  1.20  must be set annually and be the same as the rate existing for 
  1.21  the average one year yield on United States Treasury securities 
  1.22  for the last full week in November.  The interest rate must be 
  1.23  rounded to the nearest tenth of one percent.  By December 15, 
  1.24  2003, and by December 15 of each year thereafter, the 
  1.25  commissioner of commerce shall announce the rate of interest 
  2.1   that must be paid on all deposits held during all or part of the 
  2.2   subsequent year. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 325E.02, is 
  2.4   amended to read: 
  2.5      325E.02 [CUSTOMER DEPOSITS.] 
  2.6      Any customer deposit required before commencement of 
  2.7   service by a privately or publicly owned water, gas, ~~telephone,~~ 
  2.8   cable television, electric light, heat, or power company shall 
  2.9   be subject to the following: 
  2.10     (a) Upon termination of service with all bills paid, the 
  2.11  deposit shall be returned to the customer within 45 days, less 
  2.12  any deductions made in accordance with paragraph (c).  
  2.13     (b) Interest shall be paid on deposits in excess of $20 at 
  2.14  the rate of not less than three percent per year.  The company 
  2.15  may, at its option, pay the interest at intervals it chooses but 
  2.16  at least annually, by direct payment, or as a credit on bills.  
  2.17     (c) At the time the deposit is made the company shall 
  2.18  furnish the customer with a written receipt specifying the 
  2.19  conditions, if any, the deposit will be diminished upon return.  
  2.20     (d) Advance payments or prepayments shall not be construed 
  2.21  as being a deposit.  
  2.22     Sec. 3.  [RULE CONFORMITY.] 
  2.23     The commissioner of commerce shall act to eliminate 
  2.24  language from Minnesota Rules, part 7810.1600, that conflicts 
  2.25  with the interest rate provisions of section 1. 
  2.26     Sec. 4.  [EFFECTIVE DATE.] 
  2.27     This act is effective the day following final enactment.  
  2.28  The interest rate provisions of Minnesota Statutes, section 
  2.29  237.06, subdivision 2, apply to interest paid on deposits held 
  2.30  by the utility after January 1, 2004.