1.1                          A bill for an act 
  1.2             relating to telecommunications; modifying certain 
  1.3             provisions of power purchase contracts and biomass 
  1.4             fuel exemptions; providing additional antislamming and 
  1.5             disclosure requirements on long-distance service 
  1.6             providers; clarifying requirements relating to 
  1.7             notification of price increases; requiring provision 
  1.8             of international toll blocking; amending Minnesota 
  1.9             Statutes 1996, sections 216B.2424, subdivision 3; 
  1.10            237.66, subdivisions 1a, 3, and by adding 
  1.11            subdivisions; 237.74, subdivision 6, and by adding a 
  1.12            subdivision; and 325F.692, subdivision 1; Minnesota 
  1.13            Statutes 1997 Supplement, section 216B.1645; proposing 
  1.14            coding for new law in Minnesota Statutes, chapter 237; 
  1.15            repealing Minnesota Statutes 1996, section 325F.692, 
  1.16            subdivision 8; Minnesota Statutes 1997 Supplement, 
  1.17            section 237.66, subdivision 1b. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.20  216B.1645, is amended to read: 
  1.21     216B.1645 [POWER PURCHASE CONTRACTS OR INVESTMENTS.] 
  1.22     Upon the petition of a public utility, the public utilities 
  1.23  commission shall approve or disapprove power purchase contracts 
  1.24  or investments entered into or made by the utility to satisfy 
  1.25  the wind and biomass mandates contained in sections 216B.2423 
  1.26  and 216B.2424.  The expenses incurred ~~in accordance with the~~ 
  1.27  ~~contract and the reasonable investments made by a public utility~~ 
  1.28  ~~with the approval of the commission shall be included by the~~ 
  1.29  ~~commission in its determination of just and reasonable rates.~~ by 
  1.30  the utility over the duration of the approved contract or useful 
  1.31  life of the investment shall be recoverable from the ratepayers 
  2.1   of the utility, to the extent they are not offset by utility 
  2.2   revenues attributable to the contracts or investments.  Upon 
  2.3   petition by a public utility, the commission shall approve or 
  2.4   approve as modified a rate schedule providing for the automatic 
  2.5   adjustment of charges to recover the expenses or costs approved 
  2.6   by the commission.  Nothing in this section shall be construed 
  2.7   to determine the manner or extent to which revenues derived from 
  2.8   other generation facilities of the utility may be considered in 
  2.9   determining the recovery of the approved cost or expenses 
  2.10  associated with the mandated contracts or investments in the 
  2.11  event there is retail competition for electric energy. 
  2.12     Sec. 2.  Minnesota Statutes 1996, section 216B.2424, 
  2.13  subdivision 3, is amended to read: 
  2.14     Subd. 3.  [FUEL EXEMPTION.] Over the duration of the 
  2.15  contract of a biomass power facility selected to satisfy the 
  2.16  mandate in subdivision 5, fuel sources that are not biomass may 
  2.17  be used to satisfy up to 25 percent of the fuel requirements of 
  2.18  a biomass power facility selected to satisfy the biomass power 
  2.19  mandate in subdivision 5.  A biomass power facility selected to 
  2.20  satisfy the mandate in subdivision 5 also may use fuel sources 
  2.21  that are not biomass during any period when biomass fuel sources 
  2.22  are not reasonably available to the facility due to any 
  2.23  circumstances constituting an act of God.  Fuel sources that are 
  2.24  not biomass used during such a period of biomass fuel source 
  2.25  unavailability shall not be counted toward the 25 percent 
  2.26  exemption provided in this subdivision.  For purposes of this 
  2.27  subdivision, "act of God" means any natural disaster or other 
  2.28  natural phenomenon of an exceptional, inevitable, or 
  2.29  irresistible character, including, but not limited to, flood, 
  2.30  fire, drought, earthquake, and crop failure resulting from 
  2.31  climatic conditions, infestation, or disease. 
  2.32     Sec. 3.  Minnesota Statutes 1996, section 237.66, 
  2.33  subdivision 1a, is amended to read: 
  2.34     Subd. 1a.  [NOTICE TO CUSTOMERS; RIGHT TO REQUIRE PRIOR 
  2.35  AUTHORIZATION.] ~~(a)~~ Each residential and commercial 
  2.36  telecommunications carrier customer may elect to require that 
  3.1   the telephone company serving the customer receive authorization 
  3.2   from the customer before a request to serve that customer from a 
  3.3   different intrastate telecommunications carrier than the carrier 
  3.4   currently serving the customer is processed. 
  3.5      ~~(b) For new installations, a telephone company shall notify~~ 
  3.6   ~~a residential or commercial customer of the right described in~~ 
  3.7   ~~paragraph (a) when the customer initially requests intraexchange~~ 
  3.8   ~~service.~~ 
  3.9      ~~(c) Within one year of January 1, 1997, a~~ 
  3.10  ~~telecommunications carrier shall notify each of its existing~~ 
  3.11  ~~residential and commercial customers of the right described in~~ 
  3.12  ~~paragraph (a).  The notice may be made as a billing insert.  Any~~ 
  3.13  ~~customer notification of the rights set forth in this~~ 
  3.14  ~~subdivision shall be provided utilizing uniform, competitively~~ 
  3.15  ~~neutral language and the form, content, and style of the~~ 
  3.16  ~~authorization shall be consistent with federal law and~~ 
  3.17  ~~regulation and shall use language provided and approved by the~~ 
  3.18  ~~public utilities commission.~~  
  3.19     ~~(d) A customer may change this election at any time by~~ 
  3.20  ~~notifying the telephone company of that decision.  No separate~~ 
  3.21  ~~charge may be imposed on the customer for electing to exercise~~ 
  3.22  ~~the right described in paragraph (a) or to change that election,~~ 
  3.23  ~~but a telephone company may recover in rates the reasonable~~ 
  3.24  ~~costs of administering the election.~~ 
  3.25     ~~(e) If a customer has elected to exercise the right~~ 
  3.26  ~~described in paragraph (a), the telephone company shall not~~ 
  3.27  ~~process a request to serve the customer by another~~ 
  3.28  ~~telecommunications carrier without prior authorization from the~~ 
  3.29  ~~customer.  If a customer has not elected to exercise the right~~ 
  3.30  ~~described in paragraph (a), the company may process a request to~~ 
  3.31  ~~serve the customer by another telecommunications carrier.~~  
  3.32     ~~(f) A carrier may request such a change if the customer has~~ 
  3.33  ~~authorized the change either orally or in writing signed by the~~ 
  3.34  ~~customer.  If the carrier requests a change in a customer's~~ 
  3.35  ~~service provider, the carrier must:~~ 
  3.36     ~~(1) notify the customer in writing that the request has~~ 
  4.1   ~~been processed; and~~ 
  4.2      ~~(2) be able to present, upon complaint by the customer,~~ 
  4.3   ~~verified authorization for the change by the customer.~~  
  4.4      ~~If the initial authorization was made orally, the carrier~~ 
  4.5   ~~must be able to present verified authorization received from the~~ 
  4.6   ~~customer within 14 business days of the date the oral~~ 
  4.7   ~~authorization was made.~~ 
  4.8      ~~(g) In the case of an oral authorization, if a~~ 
  4.9   ~~telecommunications carrier does not receive the verified~~ 
  4.10  ~~authorization within 14 business days of the date of the oral~~ 
  4.11  ~~authorization, the carrier must either bear the risk that the~~ 
  4.12  ~~change to the service of the carrier will be deemed unauthorized~~ 
  4.13  ~~under paragraph (h) or:~~ 
  4.14     ~~(1) immediately return the customer to the service of the~~ 
  4.15  ~~customer's original service provider;~~ 
  4.16     ~~(2) bear all costs associated with returning the customer;~~ 
  4.17  ~~and~~ 
  4.18     ~~(3) bill the customer for services rendered at the rate the~~ 
  4.19  ~~customer would have paid for such services if the request to~~ 
  4.20  ~~serve the customer had not been made.~~ 
  4.21     ~~(h) If the carrier is not able to present, upon complaint~~ 
  4.22  ~~by the customer, verified authorization received from the~~ 
  4.23  ~~customer as required under paragraph (f) and the carrier did not~~ 
  4.24  ~~return the customer to the service of the customer's original~~ 
  4.25  ~~service provider as required under paragraph (g), the change to~~ 
  4.26  ~~the service of the carrier shall be deemed to be unauthorized~~ 
  4.27  ~~from the date the carrier requested the change.  In that event,~~ 
  4.28  ~~the carrier shall:~~ 
  4.29     ~~(1) bear all costs of immediately returning the customer to~~ 
  4.30  ~~the service of the customer's original service provider; and~~ 
  4.31     ~~(2) bear all costs of serving that customer during the~~ 
  4.32  ~~period of unauthorized service.~~ 
  4.33     ~~(i) For purposes of paragraphs (f), (g), and (h),~~ 
  4.34  ~~authorization required in those paragraphs may be verified~~ 
  4.35  ~~utilizing any method that is consistent with federal law and~~ 
  4.36  ~~regulation.~~  
  5.1      Sec. 4.  Minnesota Statutes 1996, section 237.66, is 
  5.2   amended by adding a subdivision to read: 
  5.3      Subd. 1c.  [TIMING OF NOTICE; NEW CUSTOMERS.] For new 
  5.4   installations, a telephone company shall notify a residential or 
  5.5   commercial customer of the right described in subdivision 1a 
  5.6   when the customer initially requests intraexchange service.  Any 
  5.7   customer notification of the rights set forth in this section 
  5.8   shall be provided utilizing uniform, competitively neutral 
  5.9   language and the form, content, and style of the authorization 
  5.10  shall be consistent with federal law and regulation and shall 
  5.11  use language provided and approved by the public utilities 
  5.12  commission.  
  5.13     Sec. 5.  Minnesota Statutes 1996, section 237.66, is 
  5.14  amended by adding a subdivision to read: 
  5.15     Subd. 1d.  [CHANGE OF ELECTION.] A customer may change the 
  5.16  election under subdivision 1a at any time by notifying the 
  5.17  telephone company of that decision.  No separate charge may be 
  5.18  imposed on the customer for electing to exercise the right 
  5.19  described in subdivision 1a or to change that election, but a 
  5.20  telephone company may recover in rates the reasonable costs of 
  5.21  administering the election. 
  5.22     Sec. 6.  Minnesota Statutes 1996, section 237.66, 
  5.23  subdivision 3, is amended to read: 
  5.24     Subd. 3.  [ENFORCEMENT.] If, after an expedited procedure 
  5.25  conducted under section 237.61, the commission finds that a 
  5.26  telephone company is failing to provide disclosure as required 
  5.27  under subdivision 1, or the notification required under 
  5.28  ~~subdivision 1a, paragraphs (b) and (c)~~ subdivision 1c, it shall 
  5.29  order the company to take corrective action as necessary. 
  5.30     Sec. 7.  [237.661] [ANTISLAMMING.] 
  5.31     Subdivision 1.  [ANTISLAMMING DUTIES OF LOCAL TELEPHONE 
  5.32  COMPANY.] If a customer has elected to exercise the right 
  5.33  described in section 237.66, subdivision 1a, the telephone 
  5.34  company serving the customer shall not process a request to 
  5.35  serve the customer by another telecommunications carrier without 
  5.36  prior authorization from the customer.  If a customer has not 
  6.1   elected to exercise the right described in that subdivision, the 
  6.2   company may process a request to serve the customer by another 
  6.3   telecommunications carrier. 
  6.4      Subd. 2.  [ANTISLAMMING DUTIES OF SOLICITING CARRIER.] (a) 
  6.5   A telecommunications carrier may request that the telephone 
  6.6   company serving a customer process a change in that customer's 
  6.7   long-distance provider, if the customer has authorized the 
  6.8   change either orally or in writing signed by the customer.  
  6.9   Prior to requesting a change in a customer's long-distance 
  6.10  service provider, the carrier must confirm: 
  6.11     (1) the customer's identity with information unique to the 
  6.12  customer, unless the customer refused to provide identifying 
  6.13  information, then that fact should be noted; 
  6.14     (2) that the customer has been informed of the offering 
  6.15  made by the carrier; 
  6.16     (3) that the customer understands that the customer is 
  6.17  being requested to change telecommunication carriers; 
  6.18     (4) that the customer has the authority to authorize the 
  6.19  change; and 
  6.20     (5) that the customer agrees to the change. 
  6.21     (b) After requesting the change in long-distance service 
  6.22  provider, the carrier must: 
  6.23     (1) notify the customer in writing that the request has 
  6.24  been processed; and 
  6.25     (2) be able to produce, upon complaint by the customer, 
  6.26  evidence that the carrier verified the authorization by the 
  6.27  customer to change the customer's long-distance service 
  6.28  provider.  If the carrier used a negative check-off verification 
  6.29  procedure as defined in subdivision 4, paragraph (c), the 
  6.30  evidence must include a tape recording of the initial oral 
  6.31  authorization. 
  6.32     Subd. 3.  [PENALTY FOR SLAMMING.] If the carrier is not 
  6.33  able to present, upon complaint by the customer, evidence that 
  6.34  complies with subdivision 2, paragraph (b), clause (2), the 
  6.35  change to the service of the carrier is deemed to be 
  6.36  unauthorized from the date the carrier requested the change.  In 
  7.1   that event, the carrier shall: 
  7.2      (1) bear all costs of immediately returning the customer to 
  7.3   the service of the customer's original service provider; and 
  7.4      (2) bear all costs of serving that customer during the 
  7.5   period of unauthorized service. 
  7.6      Subd. 4.  [VERIFICATION PROCEDURES; EVIDENCE OF 
  7.7   AUTHORIZATION.] (a) Customer authorization for a change in the 
  7.8   customer's long-distance service provider may be verified using 
  7.9   a verification procedure that complies with federal law or 
  7.10  regulation.  Except as provided in paragraph (b), the 
  7.11  requirement that the carrier be able to produce evidence of 
  7.12  customer authorization is satisfied if the carrier uses a 
  7.13  federally authorized verification procedure. 
  7.14     (b) If federal law or regulation authorizes a carrier to 
  7.15  use a negative check-off verification procedure, and the carrier 
  7.16  does so, the carrier must be able to produce a tape recording of 
  7.17  the initial oral authorization by the customer to change 
  7.18  long-distance service providers as evidence of the 
  7.19  authorization.  The initial oral authorization must include 
  7.20  confirmation of the items listed in subdivision 2, paragraph (a).
  7.21     (c) "Negative check-off" means a verification procedure 
  7.22  that consists of: 
  7.23     (1) an initial oral authorization by the customer to change 
  7.24  long-distance service providers; and 
  7.25     (2) a mailing to the customer by the soliciting 
  7.26  telecommunications carrier regarding the change in service 
  7.27  providers that informs the customer that if the customer fails 
  7.28  to cancel the change in service providers, the change will be 
  7.29  deemed authorized and verified. 
  7.30     Sec. 8.  [237.662] [NOTICE AND DISCLOSURE REQUIREMENTS OF 
  7.31  LONG-DISTANCE PROVIDERS.] 
  7.32     Subdivision 1.  [INFORMATION REQUIRED.] When contacted by a 
  7.33  customer regarding the purchase of long-distance 
  7.34  telecommunications services, or when soliciting customers via 
  7.35  mail or telephone, a provider of long-distance services shall 
  7.36  provide the customer with the following information, if the 
  8.1   service is being offered to the customer, about the service 
  8.2   offering either orally or in writing: 
  8.3      (1) the price or range of prices of interstate message toll 
  8.4   service accessed by dialing "1+" or "10-xxx", including any 
  8.5   difference in prices for evening, night, or weekend calls; 
  8.6      (2) the price or range of prices of intrastate interLATA 
  8.7   message toll service accessed by dialing "1+" or "10-xxx", 
  8.8   including any difference in prices for evening, night, or 
  8.9   weekend calls; 
  8.10     (3) the price or range of prices of intrastate intraLATA 
  8.11  message toll service accessed by dialing "1+" or "10-xxx", 
  8.12  including any difference in prices for evening, night, or 
  8.13  weekend; 
  8.14     (4) any minimum volume requirements, fixed flat fees, 
  8.15  service charges, surcharges, termination charges or other 
  8.16  non-service-specific charges, including the fact that the 
  8.17  provider of local service may charge a one-time fee for changing 
  8.18  carriers; and 
  8.19     (5) any special promotional rate or promotional offering 
  8.20  related to the services or prices described in clauses (1) to (4)
  8.21  above, including any limitations or restrictions on the 
  8.22  promotional rates or offerings. 
  8.23     Subd. 2.  [PRICE, TERMS, AND RESTRICTIONS IN WRITING.] If a 
  8.24  customer agrees to purchase telecommunications services from the 
  8.25  provider of long-distance services on a presubscription basis, 
  8.26  the provider shall send the customer written information 
  8.27  regarding services subscribed to, containing: 
  8.28     (1) the information regarding prices and charges described 
  8.29  in subdivision 1, clauses (1) to (5); 
  8.30     (2) the price for calls placed with a calling card issued 
  8.31  to the customer by the provider and any surcharge for placing 
  8.32  calls with a calling card; 
  8.33     (3) the price for calls charged to the customer when a 
  8.34  personal "1-800" number for long-distance services issued to the 
  8.35  customer by the provider is used; and 
  8.36     (4) the price of directory assistance calls. 
  9.1      This written information must be sent to the customer 
  9.2   within seven business days from the date of the verification of 
  9.3   the customer's authorization, unless federal law or regulation 
  9.4   requires notice to be sent by an earlier date. 
  9.5      Subd. 3.  [FILED TARIFFS NO DEFENSE.] That a 
  9.6   telecommunications carrier has intrastate tariffs or price lists 
  9.7   for the services listed in subdivisions 1 and 2 on file with the 
  9.8   public utilities commission or department of public service is 
  9.9   not a defense to any action brought for failure to disclose 
  9.10  intrastate prices for which disclosure is required under this 
  9.11  section. 
  9.12     Sec. 9.  [237.663] [LOADING.] 
  9.13     (a) Except as provided in paragraph (b) or (c), a telephone 
  9.14  company or telecommunications carrier providing local service 
  9.15  shall not charge a telephone service subscriber, as defined in 
  9.16  section 325F.692, for a telephone or telecommunications service 
  9.17  that is not required by the commission to be offered and for 
  9.18  which the subscriber did not explicitly contract.  
  9.19     (b) If a charge is assessed on a per-use basis for a 
  9.20  service described in paragraph (a), the charge must be applied 
  9.21  as a credit to the subscriber's next monthly bill, if the 
  9.22  subscriber notifies the telephone company or telecommunications 
  9.23  carrier that the subscriber did not utilize the service or did 
  9.24  not authorize the utilization of the service. 
  9.25     (c) A telephone company or telecommunications carrier that 
  9.26  receives a notification from a telephone service subscriber 
  9.27  under paragraph (b) shall inform the subscriber of the ability 
  9.28  to block the services from future use by the subscriber, and 
  9.29  shall block the services from future use by the subscriber, if 
  9.30  the subscriber so requests.  If a subscriber requests that the 
  9.31  carrier or company not block the service or later requests to 
  9.32  have the block lifted, the subscriber shall be responsible for 
  9.33  charges caused by the future utilization of that service.  The 
  9.34  carrier or company may not charge a recurring fee for blocking 
  9.35  the service. 
  9.36     Sec. 10.  Minnesota Statutes 1996, section 237.74, 
 10.1   subdivision 6, is amended to read: 
 10.2      Subd. 6.  [TARIFF OR PRICE LIST CHANGES.] (a) 
 10.3   Telecommunications carriers may: 
 10.4      (1) decrease the rate for a service, or make any change in 
 10.5   a tariff or price list that results in a decrease in rates, 
 10.6   effective without notice to its customers or the commission; and 
 10.7      (2) offer a new service, increase the rate for a service, 
 10.8   or change the terms, conditions, rules, and regulations of its 
 10.9   service offering effective upon notice to its customers.  
 10.10  Subject to subdivisions 2 and 9, a telecommunications carrier 
 10.11  may discontinue a service, except that a telecommunications 
 10.12  carrier must first obtain prior commission approval before 
 10.13  discontinuing service to another telecommunications carrier if 
 10.14  end users would be deprived of service because of the 
 10.15  discontinuance. 
 10.16     (b) A telecommunications carrier may give notice to its 
 10.17  customers by bill inserts, by publication in newspapers of 
 10.18  general circulation, or by any other reasonable means.  However, 
 10.19  notice of increases for intrastate residential rates for the 
 10.20  services referenced in section 237.662, subdivision 1, shall be 
 10.21  made by bill inserts prominently displaying the notice of price 
 10.22  increase on the customer's bill, or by a direct mailing or phone 
 10.23  call to the customer.  Customer notices for increases of 
 10.24  intrastate rates for those services must include as a heading 
 10.25  "NOTICE OF PRICE INCREASE". 
 10.26     Sec. 11.  Minnesota Statutes 1996, section 237.74, is 
 10.27  amended by adding a subdivision to read: 
 10.28     Subd. 13.  [INTERNATIONAL CALL BLOCKING.] A 
 10.29  telecommunications carrier, on its own or in conjunction with 
 10.30  the telephone subscriber's provider of local telephone service, 
 10.31  shall offer comprehensive international toll blocking of 
 10.32  nondomestic area codes that are part of the North American 
 10.33  numbering plans, as a condition of offering service in Minnesota.
 10.34     Sec. 12.  Minnesota Statutes 1996, section 325F.692, 
 10.35  subdivision 1, is amended to read: 
 10.36     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 11.1   section, the following terms have the meanings given them. 
 11.2      (b) "Information service" means a billed service 
 11.3   transmitted exclusively orally via the telecommunications 
 11.4   network that may include provision of information or advice, 
 11.5   participation in trivia or other games, participation in adult 
 11.6   conversation or other group bridging services, or provision of 
 11.7   similar billed services.  An information service may be accessed 
 11.8   by an information service customer by various methods including, 
 11.9   but not limited to, dialing a 1-900 or 1-800 telephone number, 
 11.10  or by the customer receiving a collect call from an information 
 11.11  service provider following the customer's 1-800 call. 
 11.12     (c) "Information service customer" means a person who 
 11.13  receives information transmitted from or participates in 
 11.14  conversation enabled by an information service provider. 
 11.15     (d) "Information service provider" means a person who 
 11.16  provides information services and directly, or indirectly 
 11.17  through a billing agent, either charges information service 
 11.18  customers for use of the information service or includes the 
 11.19  costs associated with providing information services in the 
 11.20  charge for a long-distance call. 
 11.21     (e) "Telephone service subscriber" means a person who 
 11.22  contracts with a telephone company for telephone services. 
 11.23     Sec. 13.  [REPEALER.] 
 11.24     (a) Minnesota Statutes 1997 Supplement, section 237.66, 
 11.25  subdivision 1b, is repealed. 
 11.26     (b) Minnesota Statutes 1996, section 325F.692, subdivision 
 11.27  8, is repealed. 
 11.28     Sec. 14.  [EFFECTIVE DATE.] 
 11.29     Sections 1, 2, and 13, paragraph (b), are effective 
 11.30  following final enactment.  Sections 3 to 10, 12, and 13, 
 11.31  paragraph (a), are effective July 1, 1998.  Section 11 is 
 11.32  effective January 1, 1999.