1.1 	A bill for an act
1.2 	relating to telecommunications; modifying rate case procedures; standardizing 
1.3 	consumer billing practices; requiring intrastate call completion; simplifying 
1.4 	certification procedures; removing antiquated or obsolete provisions;amending 
1.5 	Minnesota Statutes 2012, sections 237.01, by adding subdivisions; 237.02; 
1.6 	237.035; 237.04; 237.075, subdivision 1; 237.081, subdivisions 1, 2, 4; 237.12, 
1.7 	by adding a subdivision; proposing coding for new law in Minnesota Statutes, 
1.8 	chapter 237; repealing Minnesota Statutes 2012, sections 237.03; 237.068; 
1.9 	237.072; 237.075, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11; 237.21; 237.22; 
1.10 	237.411; 237.44; 237.45; 237.57; 237.59, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, 
1.11 	10; 237.64, subdivision 2; 237.67; 237.75; 237.76; 237.761; 237.762; 237.763; 
1.12 	237.764; 237.765; 237.766; 237.767; 237.768; 237.769; 237.770; 237.771; 
1.13 	237.772; 237.773, subdivisions 1, 2, 3, 4; 237.774; 237.775; 237.80.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	Section 1. Minnesota Statutes 2012, section 237.01, is amended by adding a 
1.16 	subdivision to read:
1.17 		Subd. 1a.Basic services. "Basic services" means telecommunications services 
1.18 	provided to residential customers and to business customers subscribing to three or fewer 
1.19 	business lines.

1.20 	Sec. 2. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
1.21 	to read:
1.22 		Subd. 3a.Local service. "Local service" means wire-line access to 
1.23 	telecommunications service enabling the customer to originate calls to, and receive calls 
1.24 	from, telephone numbers assigned under the North American Numbering Plan. Local 
1.25 	service does not include interexchange service.

2.1 	Sec. 3. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.2 	to read:
2.3 		Subd. 5a.Switched access rates. "Switched access rates" means any charge by a 
2.4 	local service provider assessed to an interexchange carrier for the ability to originate or 
2.5 	terminate interexchange telecommunications traffic to or from the called party's premises.

2.6 	Sec. 4. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.7 	to read:
2.8 		Subd. 5b.Telecommunications. "Telecommunications" means the transmission  of 
2.9 	information of the user's choosing between or among points specified by the user without 
2.10 	change in the form or content of the information as sent and received.

2.11 	Sec. 5. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.12 	to read:
2.13 		Subd. 6a.Telecommunications service provider. "Telecommunications service 
2.14 	provider" means a provider of wire-line service, packet-based service, data service, or any 
2.15 	other telecommunications service that provides a customer with the ability to originate 
2.16 	or terminate calls using the North American Numbering Plan, including but not limited 
2.17 	to telephone companies and telecommunications carriers.

2.18 	Sec. 6. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.19 	to read:
2.20 		Subd. 6b.Telecommunications services. "Telecommunications services" means 
2.21 	the offering of telecommunications for a fee directly to the public or to such classes of 
2.22 	users as to be effectively available to the public regardless of the facilities used.

2.23 	Sec. 7. Minnesota Statutes 2012, section 237.01, is amended by adding a subdivision 
2.24 	to read:
2.25 		Subd. 9.Wholesale transport provider. "Wholesale transport provider" means a 
2.26 	person, firm, association, or corporation that carries, delivers, routes, or transports any 
2.27 	telecommunications service, regardless of the technology used, on behalf of a telephone 
2.28 	company or telecommunications carrier or another wholesale transport provider, but is not 
2.29 	certified in Minnesota to provide retail telecommunications service to the public.

3.1 	Sec. 8. Minnesota Statutes 2012, section 237.02, is amended to read:
3.2 	237.02 GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
3.3 	DEFINITIONS.
3.4 	The Department of Commerce and the Public Utilities Commission are hereby 
3.5 	vested with the same jurisdiction and supervisory power over telephone and companies,
3.6 	 telecommunications companies carriers, telecommunications service providers, and 
3.7 	wholesale transport providers doing business in this state as the commission's predecessor, 
3.8 	the railroad and warehouse commission, had over railroad and express companies
3.9 	 provided in this chapter. The definitions set forth in sections 216A.02 and 216B.02 also 
3.10 	apply to this chapter.

3.11 	Sec. 9. Minnesota Statutes 2012, section 237.035, is amended to read:
3.12 	237.035 TELECOMMUNICATIONS CARRIER EXEMPTION.
3.13 	(a) Telecommunications carriers are subject to regulation under this chapter only to 
3.14 	the extent required under paragraphs (b) to (e).
3.15 	(b) Telecommunications carriers shall comply with sections 237.121 and 237.74.
3.16 	(c) Telecommunications carriers shall comply with section 237.16, subdivisions 
3.17 	8 and 9.
3.18 	(d) To the extent a telecommunications carrier offers local service, it shall obtain a 
3.19 	certificate under section 237.16 for that local service.
3.20 	(e) In addition, a telecommunications carrier's local service is subject to this chapter 
3.21 	except that:.
3.22 	(1) a telecommunications carrier is not subject to rate-of-return or earnings 
3.23 	investigations under section 237.075 or 237.081; and
3.24 	(2) a telecommunications carrier is not subject to section 237.22.

3.25 	Sec. 10. Minnesota Statutes 2012, section 237.04, is amended to read:
3.26 	237.04 WIRE CROSSING OR PARALLELING UTILITY LINE; RULES.
3.27 	(a) The department shall determine and promulgate reasonable rules covering the 
3.28 	maintenance and operation, also the nature, location, and character of the construction to 
3.29 	be used, where telephone, telegraph, electric light, power, or other electric wires of any 
3.30 	kind, or any natural gas pipelines, cross, or more or less parallel the lines of any railroad, 
3.31 	or any other similar public service corporation; and, to this end, shall formulate and from 
3.32 	time to time, issue general rules covering each class of construction, maintenance, and 
3.33 	operation of such telephone, telegraph, telecommunications, cable, fiber optic, electric 
4.1 	wire, or natural gas pipeline crossing, or paralleling, under the various conditions existing; 
4.2 	and The department, upon the complaint of any person, railroad, municipal utility, 
4.3 	cooperative electric association, telephone company, telecommunications carrier, cable 
4.4 	company, fiber optic carrier, or other public utility claiming to be injuriously affected or 
4.5 	subjected to hazard by any such crossing or paralleling of the lines of any railroad or other 
4.6 	similar public service corporation, constructed or about to be constructed, shall, after a 
4.7 	hearing, make such order and prescribe such terms and conditions for the construction, 
4.8 	maintenance, and operation of the lines in question as may be just and reasonable.
4.9 	(b) The department may, upon request of any municipal utility, electric cooperative 
4.10 	association, public utility, telephone company, telecommunications carrier, cable 
4.11 	company, or fiber optic carrier determine the just and reasonable charge which a railroad, 
4.12 	or owner of an abandoned railroad right-of-way, other than the state or a regional railroad 
4.13 	authority, can prescribe for a new or existing crossing of a railroad right-of-way by any 
4.14 	telephone, telegraph, telecommunications, cable, fiber optic, electric, or gas line, or new 
4.15 	or existing telephone, telegraph, telecommunications, cable, fiber optic, electric, or gas 
4.16 	line more or less paralleling a railroad right-of-way, based on the diminution in value 
4.17 	caused by the crossing or paralleling of the right-of-way by the telephone, telegraph, 
4.18 	telecommunications, cable, fiber optic, electric, or gas line. This section shall not be 
4.19 	construed to eliminate the right of a public utility, municipal utility, or electric cooperative 
4.20 	association to have any of the foregoing issues determined pursuant to an eminent domain 
4.21 	proceeding commenced under chapter 117. Unless the railroad, or owner of an abandoned 
4.22 	railroad right-of-way, other than the state or a regional railroad authority, asserts in writing 
4.23 	that the proposed crossing or paralleling is a serious threat to the safe operations of the 
4.24 	railroad or to the current use of the railroad right-of-way, a crossing can be constructed 
4.25 	following filing of the requested action with the department, pending review of the 
4.26 	requested action by the department.
4.27 	(c) The department shall assess the cost of reviewing the requested action, and of 
4.28 	determining a just and reasonable charge, equally among the parties.
4.29 	(d) For the purposes of this section, "parallel" or "paralleling" means that the 
4.30 	relevant utility facilities run adjacent to and alongside the lines of a railroad for no more 
4.31 	than one mile, or another distance agreed to by the parties, before the utility facilities cross 
4.32 	the railroad lines, terminate, or exit the railroad right-of-way.

4.33 	Sec. 11. Minnesota Statutes 2012, section 237.075, subdivision 1, is amended to read:
4.34 		Subdivision 1.Notice. Unless the commission otherwise orders, no telephone 
4.35 	company shall change increase a rate which has been duly established under this chapter,
5.1 	 for basic services or switched access services except upon 60 days' notice to thecustomers, 
5.2 	the department, and the commission. The notice shall include statements of facts, expert 
5.3 	opinions, substantiating documents, and exhibits, supporting the change requested, and
5.4 	 state the change proposed to be made in the rates then in force and the time when the 
5.5 	modified rates will go into effect. The filing telephone company shall give written notice, 
5.6 	as approved by the commission, of the proposed change to the governing body of each 
5.7 	municipality and county in the area affected. All proposed changes shall be shown by 
5.8 	filing new schedules or shall be plainly indicated upon schedules on file and in force at 
5.9 	the time. A telephone company may give notice to its customers by the same means 
5.10 	used to bill the customer, including by e-mail or other electronic means, or by any other 
5.11 	reasonable means that provides actual notice to the customer. Customer notices for 
5.12 	increases of intrastate rates must include as a heading "NOTICE OF PRICE INCREASE." 
5.13 	All proposed changes shall be shown on the telephone company's tariff. Any proposed 
5.14 	increase to switched access rates shall include an explanation stating how the increase is 
5.15 	consistent with federal law. All purchasers of switched access shall be charged the rate 
5.16 	listed in the provider's price list and shall pay for switched access at that rate.

5.17 	Sec. 12. [237.077] SCHEDULES; TARIFFS.
5.18 		Subdivision 1.Filing requirements. Except as set forth in this section, 
5.19 	telecommunications service providers are not required to maintain or file any rate 
5.20 	schedule, tariff, contract, or agreement with the commission.
5.21 		Subd. 2.General provisions applicable to all tariffs. Any tariff filed with the 
5.22 	commission in accordance with this chapter must include all terms, conditions, rates, and 
5.23 	charges that apply to the services specified in the tariff.
5.24 		Subd. 3.Tariff. (a) Any telecommunications service provider that offers intrastate 
5.25 	switched access services shall maintain on file with the commission a tariff containing 
5.26 	the terms, conditions, rates, and charges the telecommunications service provider has 
5.27 	established for intrastate switched access services.
5.28 	(b) Every local exchange carrier that provides basic telecommunications service 
5.29 	shall maintain on file with the commission a tariff containing the terms, conditions, rates, 
5.30 	and charges for that service.
5.31 	(c) Subject to any applicable notice to end users required by this chapter, a telephone 
5.32 	company tariff becomes effective 60 days after it is filed with the commission.
5.33 	(d) A person who objects to a tariff shall file an objection within 30 days of the filing 
5.34 	of the tariff. The person filing the tariff may reply to the objection within five days of 
5.35 	the filing of the objection.
6.1 	(e) The commission shall review the tariff, the objection, and the reply within 60 
6.2 	days of the filing of the tariff and shall issue an order approving the tariff or order that 
6.3 	a contested case hearing be conducted under chapter 14.

6.4 	Sec. 13. Minnesota Statutes 2012, section 237.081, subdivision 1, is amended to read:
6.5 		Subdivision 1.Commission investigation. Whenever the commission believes 
6.6 	that a service is inadequate or cannot be obtained or that an investigation of any matter 
6.7 	relating to any telephone service should for any reason be made, it may on its own motion 
6.8 	investigate the service or matter with or without notice, except that the commission shall 
6.9 	give notice to a telephone company before it investigates the level of rates for basic or 
6.10 	wholesale telecommunications services charged by the company.

6.11 	Sec. 14. Minnesota Statutes 2012, section 237.081, subdivision 2, is amended to read:
6.12 		Subd. 2.Procedure after investigation. (a) If, after making an investigation under 
6.13 	subdivision 1 or 1a, the commission finds that a significant factual issue raised has not 
6.14 	been resolved to its satisfaction, the commission shall follow the appropriate procedure 
6.15 	prescribed by this subdivision.
6.16 	(b) For an investigation concerning the reasonableness of the rates for noncompetitive 
6.17 	services of a telephone company whose general revenue requirement is determined under 
6.18 	section 237.075, the commission shall order the company to initiate a rate proceeding in 
6.19 	accordance with section 237.075. The commission shall allow the company at least 120 
6.20 	days after the date of the commission's order to initiate the proceeding.
6.21 	(c) For other investigations, the commission shall order that a contested case hearing 
6.22 	be conducted under chapter 14 unless the complainant, the telephone company, and the 
6.23 	commission agree that an expedited hearing under section 237.61 is appropriate.

6.24 	Sec. 15. Minnesota Statutes 2012, section 237.081, subdivision 4, is amended to read:
6.25 		Subd. 4.Establishment of rate and price. Whenever the commission finds, 
6.26 	after a proceeding under subdivision 2, that (1) a service that can be reasonably 
6.27 	demanded cannot be obtained, (2) that any rate, toll, tariff, charge, or schedule, or any 
6.28 	regulation, measurement, practice, act, or omission affecting or relating to the production, 
6.29 	transmission, delivery, or furnishing of telephone service or any service in connection with 
6.30 	telephone service, is in any respect unreasonable, insufficient, or unjustly discriminatory
6.31 	 contrary to the requirements of this chapter, or (3) that any service is inadequate, the 
6.32 	commission shall make an order respecting the tariff, regulation, act, omission, practice, 
7.1 	or service that is just and reasonable and, if applicable, shall establish just and reasonable 
7.2 	rates and prices for basic or wholesale services.

7.3 	Sec. 16. [237.102] CUSTOMER BILLING.
7.4 	(a) Bills to customers from telecommunications service providers shall be rendered 
7.5 	regularly, and shall contain an itemized listing of all charges and the period of time 
7.6 	covered by the billing. Taxes and fees collected and remitted as mandated by law shall be 
7.7 	separately identified, itemized, and distinguished from the service charges on the bill.
7.8 	(b) All bills shall contain an explanation of the charges in plain language. Bills shall 
7.9 	include a company telephone number the customer may contact with billing questions or 
7.10 	concerns. Each bill shall also provide the Public Utility Commission's telephone number.
7.11 	(c) Charges billed to a customer shall not exceed the price stated in any related 
7.12 	offers or advertisements as the regular price for the service, including any fractional 
7.13 	monthly amounts, with the exception of taxes and fees collected and remitted for required 
7.14 	government programs.
7.15 	(d) Any rates, charges, or fees collected by the telecommunications service provider 
7.16 	that are not required to be remitted by state or federal law and that are not included in the 
7.17 	telecommunications service provider's price list shall not be charged to the customer, 
7.18 	unless otherwise approved by the commission.
7.19 	(e) Customers shall not be assessed an additional charge or fee to obtain a paper bill.

7.20 	Sec. 17. Minnesota Statutes 2012, section 237.12, is amended by adding a subdivision 
7.21 	to read:
7.22 		Subd. 5.Discontinuance for nonpayment. (a) Except as otherwise provided in 
7.23 	an interconnection agreement or contract, in the event an interexchange carrier or a local 
7.24 	exchange carrier fails to pay full compensation to a local exchange carrier for services 
7.25 	and a written dispute has not been registered between the companies, the local exchange 
7.26 	carrier may discontinue accepting traffic from the alleged nonpaying carrier after the local 
7.27 	exchange carrier provides to the commission, the department, and the nonpaying carrier 
7.28 	30 days' notice of intent to discontinue service. The notice to the department shall indicate 
7.29 	whether the discontinuance will result in the disruption of service to end users or others 
7.30 	and what steps will be taken, if any, to prevent such disruption.
7.31 	(b) Any person objecting to the discontinuance shall file an objection with the 
7.32 	commission within 30 days of notice of intent to disconnect. If an objection is filed, 
7.33 	the department shall investigate and recommend to the commission whether public 
7.34 	convenience requires continued service to the other carrier and, if so, the recommended 
8.1 	compensation, terms, and conditions of the continuance of service between the companies. 
8.2 	A carrier objecting to the discontinuance must pay all undisputed charges while the 
8.3 	objection is being considered.
8.4 	(c) If no objection is filed within 30 days, the discontinuance shall be deemed 
8.5 	approved and the local exchange carrier may discontinue service.

8.6 	Sec. 18. [237.131] INTRASTATE CALL ROUTING; CERTAIN PRACTICES 
8.7 	PROHIBITED.
8.8 	(a) Telecommunications service providers shall not participate in the adoption or 
8.9 	perpetuation of intrastate call routing practices that result in the blocking, restriction, 
8.10 	or interference with the completion of calls to certain telephone exchanges, for the 
8.11 	purpose of avoiding the terminating access rates of those exchanges. All contracts, 
8.12 	agreements, or arrangements with underlying providers to deliver traffic on behalf of the 
8.13 	telecommunications service provider shall not contain terms that are inconsistent with 
8.14 	this section.
8.15 	(b) A telecommunications service provider shall not knowingly contract with a 
8.16 	wholesale transport provider that is not registered with the commission.
8.17 	(c) For calls that are not completed within ten seconds, the telephone company must 
8.18 	provide the caller with a message stating the call is being processed. This requirement 
8.19 	applies regardless of whether a ringtone is used by the originating provider while the 
8.20 	call is being processed.
8.21 	(d) Upon learning a call has failed to terminate, the service provider for the customer, 
8.22 	whether for the called or calling customer, shall:
8.23 	(1) determine the reason for the failure;
8.24 	(2) notify the affected called and calling customers; and
8.25 	(3) report to the commission or department that the failure occurred and the actions 
8.26 	taken to correct the cause of the failure.
8.27 	(e) A telecommunications service provider shall be liable under this section and is 
8.28 	subject to section 237.461 for the actions of an underlying provider used to deliver traffic 
8.29 	on its behalf if:
8.30 	(1) the underlying provider is an agent, contractor, or subcontractor of the 
8.31 	telecommunications service provider, or is employed by the telecommunications service 
8.32 	provider; and
8.33 	(2) the telecommunications service provider knew or should have known of the 
8.34 	underlying carrier's actions.

9.1 	Sec. 19. [237.132] REGISTRATION OF WHOLESALE TRANSPORT 
9.2 	PROVIDERS.
9.3 	(a) A wholesale transport provider shall file a registration with the commission that 
9.4 	includes the company name, address, a contact name, and a telephone number that will 
9.5 	be answered 24 hours each day, seven days a week, to address any failures of calls to 
9.6 	complete within Minnesota. The contacts provided by each entity should be well-versed 
9.7 	in the subject matter of call routing and call completion. Wholesale transport providers are 
9.8 	subject to regulation under this chapter only to the extent required under section 237.131.
9.9 	(b) The department shall maintain a contact list of all registered wholesale transport 
9.10 	service providers on its Web site to enable expeditious resolution of any call routing and 
9.11 	call completion problems involving wholesale transport providers.
9.12 	(c) Wholesale transport providers shall update their registration information when 
9.13 	changes occur, but no less than annually.

9.14 	Sec. 20. [237.84] CERTIFICATION, REGISTRATION, AND MAPPING.
9.15 		Subdivision 1.Application for certificate of authority. Before a 
9.16 	telecommunications service provider may offer retail or wholesale telecommunications 
9.17 	services to the public in Minnesota, the telecommunications service provider must receive 
9.18 	a certificate of authority from the commission. The commission shall issue a certificate of 
9.19 	authority within 60 days after receipt of a complete application, unless it makes a finding 
9.20 	that issuance of a certificate is contrary to the public interest. A telecommunications service 
9.21 	provider seeking a certificate of authority under this chapter shall submit an application on 
9.22 	a form prescribed by the commission. If a telecommunications service provider's submitted 
9.23 	application is incomplete, the commissioner may deny the application or suspend the 
9.24 	60-day period until it finds that a complete application has been filed. The form must 
9.25 	require the telecommunications service provider to provide the following information:
9.26 	(1) the legal name of the telecommunications service provider and any name under 
9.27 	which the telecommunications service provider does or will do business in Minnesota, as 
9.28 	authorized by the secretary of state;
9.29 	(2) a certification from the secretary of state authorizing the telecommunications 
9.30 	service provider to do business in Minnesota;
9.31 	(3) the address and telephone number of the telecommunications service provider, 
9.32 	along with contact information for the person responsible for ongoing communication 
9.33 	with the commission;
9.34 	(4) the legal name, address, and telephone number of the parent company of the 
9.35 	telecommunications service provider, if any;
10.1 	(5) a description of each service area in Minnesota in which the telecommunications 
10.2 	service provider proposes to offer telecommunications service;
10.3 	(6) a list of other states in which the telecommunications service provider offers 
10.4 	telecommunications service, including the type of telecommunications service offered;
10.5 	(7) information demonstrating the financial, managerial, and technical ability of 
10.6 	the telecommunications service provider to provide telecommunications service in 
10.7 	Minnesota; and
10.8 	(8) verification that the telecommunications service provider's 911 plan has been 
10.9 	approved.
10.10 		Subd. 2.Fees. The commission may collect from the applicant a filing fee not to 
10.11 	exceed $2,000, charged at the time an application is filed under this section.

10.12 	Sec. 21. REVISOR'S INSTRUCTION.
 10.13 	The revisor shall make necessary technical cross-reference changes in Minnesota 
10.14 	Statutes and Minnesota Rules consistent with the repealer in section 22.

10.15 	Sec. 22.  REPEALER.
 10.16 	Minnesota Statutes 2012, sections 237.03; 237.068; 237.072; 237.075, subdivisions 
10.17 	1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11; 237.21; 237.22; 237.411; 237.44; 237.45; 237.57; 
10.18 	237.59, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, and 10; 237.64, subdivision 2; 237.67; 
10.19 	237.75; 237.76; 237.761; 237.762; 237.763; 237.764; 237.765; 237.766; 237.767; 
10.20 	237.768; 237.769; 237.770; 237.771; 237.772; 237.773, subdivisions 1, 2, 3, and 4; 
10.21 	237.774; 237.775; and 237.80, are repealed.