1998 Minnesota Statutes

CHAPTER 237. Telephone, telegraph, telecommunications

     237.01 Definitions. 

    Subdivision 1.    Generally.  As used in this chapter, 
 the following terms have the meanings given.  

    Subd. 2.    Telephone company.  "Telephone company," 
 means and applies to any person, firm, association or any 
 corporation, private or municipal, owning or operating any 
 telephone line or telephone exchange for hire, wholly or partly 
 within this state, or furnishing any telephone service to the 
 public. 

    A "telephone company" does not include a radio common 
 carrier as defined in subdivision 4.  A telephone company which 
 also conforms with the definition of a radio common carrier is 
 subject to regulation as a telephone company.  However, none of 
 chapter 237 applies to telephone company activities which 
 conform to the definition of a radio common carrier. 

    A "telephone company" does not include a telecommunications 
 carrier as defined in subdivision 6, except that a 
 telecommunications carrier is a telephone company for the 
 purposes of section 222.36.  A telephone company is not subject 
 to section 237.74. 

    Subd. 3.    Independent telephone company.  "Independent 
 telephone company" means a telephone company organized and 
 operating under chapter 301 or 302A or authorized to do business 
 in Minnesota under chapter 303 as of January 1, 1983, and 
 providing local exchange service to fewer than 30,000 
 subscribers within the state. 

    Subd. 4.    Radio common carrier.  "Radio common carrier"
 means a person, firm, association, or corporation which owns, 
 operates, or otherwise furnishes to the public any paging or 
 other mobile telecommunications service by means of the use of 
 radio signals and connection to a telephone network. 

    Subd. 5.  Repealed, 1984 c 557 s 4 

    Subd. 6.    Telecommunications carrier.  
 "Telecommunications carrier" means a person, firm, association, 
 or corporation authorized to furnish one or more of the 
 following telephone services to the public, but not otherwise 
 authorized to furnish local exchange service:  (1) interexchange 
 telephone service; (2) local telephone service pursuant to a 
 certificate granted under the authority of section 237.16, 
 subdivision 4, before August 1, 1995; or (3) local service 
 pursuant to a certificate granted under section 237.16, for the 
 first time after August 1, 1995, except if granted to a 
 successor to a telephone company otherwise authorized to furnish 
 local exchange service.  Telecommunications carrier does not 
 include entities that derive more than 50 percent of their 
 revenues from operator services provided to transient locations 
 such as hotels, motels, and hospitals.  In addition, 
 telecommunications carrier does not include entities that 
 provide centralized equal access services. 

    HIST: (5287) 1915 c 152 s 2; 1981 c 248 s 1; 1984 c 451 s 1; 
 1984 c 557 s 1-3; 1985 c 22 s 1; 1987 c 340 s 18; 1993 c 268 s 
 1,2; 1995 c 156 s 1 

*   NOTE:  The amendment to subdivision 6 by Laws 1995, chapter 
*156, section 1, expires January 1, 2006.  Laws 1995, chapter 
*156, section 25.

     237.011 Telecommunications goals. 

    The following are state goals that should be considered as 
 the commission executes its regulatory duties with respect to 
 telecommunication services: 

    (1) supporting universal service; 

    (2) maintaining just and reasonable rates; 

    (3) encouraging economically efficient deployment of 
 infrastructure for higher speed telecommunication services and 
 greater capacity for voice, video, and data transmission; 

    (4) encouraging fair and reasonable competition for local 
 exchange telephone service in a competitively neutral regulatory 
 manner; 

    (5) maintaining or improving quality of service; 

    (6) promoting customer choice; 

    (7) ensuring consumer protections are maintained in the 
 transition to a competitive market for local telecommunications 
 service; and 

    (8) encouraging voluntary resolution of issues between and 
 among competing providers and discouraging litigation. 

    HIST: 1997 c 223 s 2 

     237.02 General authority of department and commission; 
  definitions. 

    The department of public service and the public utilities 
 commission, now existing under the laws of this state, are 
 hereby vested with the same jurisdiction and supervisory power 
 over telephone companies doing business in this state as it now 
 has over railroad and express companies.  The definitions set 
 forth in section 216A.02 shall apply also to this chapter. 

    HIST: (5286) 1915 c 152 s 1; 1971 c 25 s 67; 1980 c 614 s 118 

     237.03 Scope of law.  

    Except as otherwise provided in this chapter, all the 
 provisions of Revised Laws 1905, chapter 28, and acts amendatory 
 thereof applying to railroad and express companies, shall 
 insofar as the same are applicable apply also to telephone 
 companies.  

    HIST: (5288) 1915 c 152 s 3 

     237.035 Telecommunications carrier exemption. 

    (a) Telecommunications carriers are subject to regulation 
 under this chapter only to the extent required under paragraphs 
 (b) to (e). 

    (b) Telecommunications carriers shall comply with sections 
 237.121 and 237.74. 

    (c) Telecommunications carriers shall comply with section 
 237.16, subdivisions 8 and 9. 

    (d) To the extent a telecommunications carrier offers local 
 service, it shall obtain a certificate under section 237.16 for 
 that local service. 

    (e) In addition, a telecommunications carrier's local 
 service is subject to this chapter except that: 

    (1) a telecommunications carrier is not subject to 
 rate-of-return or earnings investigations under section 237.075 
 or 237.081; and 

    (2) a telecommunications carrier is not subject to section 
 237.22. 

    HIST: 1993 c 268 s 3; 1995 c 156 s 2 

*   NOTE:  The amendment to this section by Laws 1995, chapter 
*156, section 2, expires January 1, 2006.  Laws 1995, chapter 
*156, section 25.

     237.04 Wire crossing or paralleling utility line; rules. 

    (a) The department shall determine and promulgate 
 reasonable rules covering the maintenance and operation, also 
 the nature, location, and character of the construction to be 
 used, where telephone, telegraph, electric light, power, or 
 other electric wires of any kind, or any natural gas pipelines, 
 cross, or more or less parallel the lines of any railroad, 
 interurban railway, or any other similar public service 
 corporation; and, to this end, shall formulate and from time to 
 time, issue general rules covering each class of construction, 
 maintenance, and operation of such electric wire or natural gas 
 pipeline crossing, or paralleling, under the various conditions 
 existing; and the department, upon the complaint of any person, 
 railroad, interurban railway, municipal utility, cooperative 
 electric association, or other public utility claiming to be 
 injuriously affected or subjected to hazard by any such crossing 
 or paralleling lines constructed or about to be constructed, 
 shall, after a hearing, make such order and prescribe such terms 
 and conditions for the construction, maintenance, and operation 
 of the lines in question as may be just and reasonable. 

    (b) The department may, upon request of any municipal 
 utility, electric cooperative association, or public utility, 
 determine the just and reasonable charge which a railroad, or 
 owner of an abandoned railroad right-of-way, can prescribe for a 
 new or existing crossing of a railroad right-of-way by an 
 electric or gas line, based on the diminution in value caused by 
 the crossing of the right-of-way by the electric or gas line.  
 This section shall not be construed to eliminate the right of a 
 public utility, municipal utility, or electric cooperative 
 association to have any of the foregoing issues determined 
 pursuant to an eminent domain proceeding commenced under chapter 
 117.  Unless the railroad, or owner of an abandoned railroad 
 right-of-way, asserts in writing that the proposed crossing is a 
 serious threat to the safe operations of the railroad or to the 
 current use of the railroad right-of-way, a crossing can be 
 constructed following filing of the requested action with the 
 department, pending review of the requested action by the 
 department. 

    The department shall assess the cost of reviewing the 
 requested action, and of determining a just and reasonable 
 charge, equally among the parties. 

    HIST: (4718-1) 1925 c 152 s 1; 1971 c 25 s 67; 1985 c 248 s 
 70; 1997 c 123 s 1 

     237.05 Enforcement authority. 

    The department shall see that the provisions of section 
 237.04 are enforced; and, for that purpose shall have power to 
 cause the removal or reconstruction of such telephone, 
 telegraph, electric light, power, or other electric wires of any 
 kind crossing or paralleling such other lines and not in 
 accordance with the orders and rules issued by the department.  

    HIST: (4718-2) 1925 c 152 s 2; 1971 c 25 s 67; 1985 c 248 s 70 

     237.06 Reasonable rate and service.  

    It shall be the duty of every telephone company to furnish 
 reasonably adequate service and facilities for the accommodation 
 of the public, and its rates, tolls, and charges shall be fair 
 and reasonable for the intrastate use thereof.  All unreasonable 
 rates, tolls, and charges are hereby declared to be unlawful.  
 Any telephone company organized after January 1, 1949, may 
 include in its charges a reasonable deposit fee not exceeding 
 $50 for facilities furnished.  

    HIST: (5289) 1915 c 152 s 4; 1957 c 523 

     237.065 Rate for special service to school or 
  telecommunication services purchasing cooperative. 

    Subdivision 1.    Basic service; flat rate.  Each 
 telephone company, including a company that has developed an 
 incentive plan under section 237.625, that provides local 
 telephone service in a service area that includes a school that 
 has classes within the range from kindergarten to 12th grade 
 shall provide, upon request, additional service to the school 
 that is sufficient to ensure access to basic telephone service 
 from each classroom and other areas within the school, as 
 determined by the school board.  Each company shall set a flat 
 rate for this additional service that is less than the company's 
 flat rate for an access line for a business and the same as or 
 greater than the company's flat rate for an access line for a 
 residence in the same local telephone service exchange.  When a 
 company's flat rates for businesses and residences are the same, 
 the company shall use the residential rate for service to 
 schools under this section.  The rate required under this 
 section is available only for a school that installs additional 
 service that includes access to basic telephone service from 
 each classroom and other areas within the school, as determined 
 by the school board. 

    Subd. 2.    Basic and advanced telecommunication service; 
 reduced rate.  (a) Notwithstanding the provisions of sections 
 237.09, 237.14, 237.60, subdivision 3, and 237.74, each 
 telephone company and telecommunications carrier that provides 
 local telephone service in a service area that includes a school 
 that has classes within the range from kindergarten to grade 12, 
 a public library, or a telecommunication services purchasing 
 cooperative may provide, upon request, basic and advanced 
 telecommunication services at reduced or no cost to that school, 
 library, or may provide, upon request, advanced 
 telecommunication services at reduced wholesale rates to the 
 members of a telecommunication services purchasing cooperative.  
 For purposes of this section, a "telecommunication services 
 purchasing cooperative" means a cooperative organized under 
 section 308A.210.  A school or library receiving 
 telecommunications services at reduced or no cost may not resell 
 or sublease the discounted services.  No members of a 
 telecommunication services purchasing cooperative may resell or 
 sublease the discounted services.  A purchasing cooperative is 
 not required to negotiate or provide a uniform rate for its 
 members.  Telecommunications services shall be provided in 
 accordance with Public Law Number 104-104, and the regulations 
 of the Federal Communications Commission adopted under the act.  

    (b) An agent that provides telecommunications services to a 
 school or library may request the favorable rate on behalf of 
 and for the exclusive benefit of the school or library.  The 
 school or library must authorize the agent to make the request 
 of the local telephone company or telecommunications carrier.  
 The telephone company or telecommunications carrier is not 
 required to offer the same price discount to the agent that it 
 would offer to the school district or library.  An agent that 
 receives a price discount for telecommunications services on 
 behalf of a school or library may only resell or sublease the 
 discounted services to that school or library. 

    (c) For the purposes of this subdivision, "school" includes 
 a public school as defined in section 120A.05, nonpublic, and 
 church or religious organization schools that provide 
 instruction in compliance with sections 120A.22, 120A.24, and 
 120A.41. 

    HIST: 1990 c 562 art 8 s 35; 1Sp1995 c 3 art 12 s 6; 1996 c 
 412 art 12 s 5; 1997 c 208 s 1; 1998 c 397 art 11 s 3 

     237.067 Establishment exempt from regulation. 

    Subdivision 1.    Definition.  For purposes of this 
 section, "establishment" means an individual hotel, motel, 
 restaurant, lodging house, boarding house, resort, or place of 
 refreshment licensed under chapter 157. 

    Subd. 2.    Exemption; conditions.  An establishment 
 that provides telephone service to patrons on the premises of 
 the establishment is not subject to regulation under this 
 chapter, except that the establishment: 

    (1) shall comply with the requirement of section 237.06 
 that rates charged must be fair and reasonable; 

    (2) shall provide notice of charges and service providers 
 to patrons as required in section 325F.99; and 

    (3) is subject to the complaint and investigation 
 procedures of section 237.081. 

    HIST: 1991 c 154 s 1 

     237.068 Multiparty line telephone service. 

    After October 31, 1993, no telephone company may offer or 
 provide multiparty line telephone service to more than two 
 subscribers per line, unless otherwise approved by the 
 commission. 

    HIST: 1991 c 152 s 1 

     237.069 Tracer; harassing telephone call; rules. 

    The commission shall adopt rules to govern how telephone 
 companies respond to requests for tracers made by persons who 
 allege receiving harassing telephone calls.  The rules must 
 address when a request for a tracer may be denied or delayed. 

    HIST: 1992 c 442 s 1 

     237.07 Filing requirements. 

    Subdivision 1.    Filing of charges.  Every telephone 
 company shall keep on file with the department a specific rate, 
 toll, or charge for every kind of noncompetitive service and a 
 price list for every kind of service subject to emerging 
 competition, together with all rules and classifications used by 
 it in the conduct of the telephone business, including 
 limitations on liability.  The filings are governed by chapter 
 13.  When a company sells services subject to emerging 
 competition on an individually priced basis, it shall file a 
 statement of the charges to its customers with the commission 
 and the department.  The department shall require each telephone 
 company to keep open for public inspection, at designated 
 offices, so much of these rates, price lists, and rules as it 
 deems necessary for the public information.  

    Subd. 2.    Separate pricing.  When competitive services 
 or service elements or services on an individually priced basis 
 are sold in conjunction with noncompetitive services or service 
 elements, the telephone company shall file or have on file with 
 the commission and the department separate prices for its 
 services subject to emerging competition and noncompetitive 
 services or service elements.  Telephone services or service 
 elements must be offered on a nondiscriminatory basis. 

    HIST: (5290) 1915 c 152 s 5; 1971 c 25 s 67; 1985 c 248 s 70; 
 1989 c 74 s 1 

     237.071 Special pricing. 

    Except as prohibited by section 237.60, subdivision 3, 
 prices unique to a particular customer or group of customers may 
 be allowed for noncompetitive services and for services subject 
 to emerging competition when differences in the cost of 
 providing a service or a service element justifies a different 
 price for a particular customer or group of customers. 
 Individual pricing for services subject to emerging competition 
 may be allowed when a uniform price should not be required 
 because of market conditions.  Unique or individual prices for 
 services or service elements in effect before July 1, 1989, are 
 deemed to have been approved under this section. 

    HIST: 1989 c 74 s 2 

     237.072 Limitation on rate change. 

    (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 
 270 days after the date of the filing of the petition. 

    HIST: 1997 c 223 s 3; 1998 c 345 s 3 

     237.075 Rate change. 

    Subdivision 1.    Notice.  Unless the commission 
 otherwise orders, no telephone company shall change a rate which 
 has been duly established under this chapter, except upon 60 
 days' notice to the commission.  The notice shall include 
 statements of facts, expert opinions, substantiating documents, 
 and exhibits, supporting the change requested, and state the 
 change proposed to be made in the rates then in force and the 
 time when the modified rates will go into effect.  The filing 
 telephone company shall give written notice, as approved by the 
 commission, of the proposed change to the governing body of each 
 municipality and county in the area affected.  All proposed 
 changes shall be shown by filing new schedules or shall be 
 plainly indicated upon schedules on file and in force at the 
 time. 

    Subd. 1a. Repealed, 1989 c 74 s 26 

    Subd. 2.    Suspension of proposed rate; hearing; final 
 determination defined.  (a) Whenever there is filed with the 
 commission as provided in subdivision 1 a schedule modifying or 
 resulting in a change in any rate then in force, the commission 
 may suspend the operation of the schedule by filing with the 
 schedule of rates and delivering to the affected telephone 
 company a statement in writing of its reasons for the suspension 
 at any time before the rates become effective.  The suspension 
 shall not be for a longer period than ten months beyond the 
 initial filing date except as provided in paragraph (b).  During 
 the suspension the commission shall determine whether all 
 questions of the reasonableness of the rates requested raised by 
 persons deemed interested or by the administrative division of 
 the department of public service can be resolved to the 
 satisfaction of the commission.  If the commission finds that 
 all significant issues raised have not been resolved to its 
 satisfaction, or upon petition by ten percent of the affected 
 customers or 250 affected customers, whichever is less, it shall 
 refer the matter to the office of administrative hearings with 
 instructions for a public hearing as a contested case pursuant 
 to chapter 14, except as otherwise provided in this section.  
 The commission may order that the issues presented by the 
 proposed rate changes be bifurcated into two separate hearings 
 as follows:  (1) determination of the telephone company's 
 revenue requirements and (2) determination of the rate design.  
 Upon issuance of both administrative law judge reports, the 
 issues shall again be joined for consideration and final 
 determination by the commission.  All prehearing discovery 
 activities of state agency intervenors shall be consolidated and 
 conducted by the department of public service.  If the 
 commission does not make a final determination concerning a 
 schedule of rates within ten months after the initial filing 
 date, the schedule shall be deemed to have been approved by the 
 commission; except if a settlement has been submitted to and 
 rejected by the commission, the schedule is deemed to have been 
 approved 12 months after the initial filing. 

    (b) If the commission finds that it has insufficient time 
 during the suspension period to make a final determination of a 
 case involving changes in general rates because of the need to 
 make final determinations of other previously filed cases 
 involving changes in general rates under this section or section 
 216B.16, the commission may extend the suspension period to the 
 extent necessary to allow itself 20 working days to make the 
 final determination after it has made final determinations in 
 the previously filed cases.  An extension of the suspension 
 period under this paragraph does not alter the setting of 
 interim rates under subdivision 3. 

    (c) For the purposes of this section, "final determination" 
 means the initial decision of the commission and not any order 
 which may be entered by the commission in response to a petition 
 for rehearing or other further relief.  The commission may 
 further suspend rates until it determines all those petitions. 

    Subd. 3.    Interim rate.  Notwithstanding any order of 
 suspension of a proposed increase in rates, the commission shall 
 order an interim rate schedule into effect not later than 60 
 days after the initial filing date.  The commission shall order 
 the interim rate schedule ex parte without a public hearing.  
 Notwithstanding the provisions of sections 216.25 and 237.25, no 
 interim rate schedule ordered by the commission pursuant to this 
 subdivision shall be subject to an application for a rehearing 
 or an appeal to a court until the commission has rendered its 
 final determination.  Unless the commission finds that exigent 
 circumstances exist, the interim rate schedule shall be 
 calculated using the proposed test-year cost of capital, rate 
 base, and expenses, except that it shall include:  (1) a rate of 
 return on common equity for the company equal to that authorized 
 by the commission in the company's most recent rate proceeding; 
 (2) rate base or expense items the same in nature and kind as 
 those allowed by a currently effective order of the commission 
 in the company's most recent rate proceeding; and (3) no change 
 in the existing rate design, except for products and services 
 offered by nonregulated competitors.  In the case of a company 
 which has not been subject to a prior commission determination 
 or has not had a general rate adjustment in the preceding three 
 years, the commission shall base the interim rate schedule on 
 its most recent determination concerning a similar company.  

    If, at the time of its final determination, the commission 
 finds that the interim rates are in excess of the rates in the 
 final determination, the commission shall order the company to 
 refund the excess amount collected under the interim rate 
 schedule, including interest on it which shall be at the rate of 
 interest determined by the commission.  The company shall 
 commence distribution of the refund to its customers within 120 
 days of the final order, not subject to rehearing or appeal.  
 If, at the time of its final determination, the commission finds 
 that the interim rates are less than the rates in the final 
 determination, the commission shall prescribe a method by which 
 the company will recover the difference in revenues from the 
 date of the final determination to the date the new rate 
 schedules are put into effect.  

    If the telephone company fails to make refunds within the 
 period of time prescribed by the commission, the commission 
 shall sue therefor and may recover on behalf of all persons 
 entitled to a refund.  In addition to the amount of the refund 
 and interest due, the commission shall be entitled to recover 
 reasonable attorney's fees, court costs and estimated cost of 
 administering the distribution of the refund to persons entitled 
 thereto.  No suit under this subdivision shall be maintained 
 unless instituted within two years after the end of the period 
 of time prescribed by the commission for repayment of refunds.  
 The commission shall not order an interim rate schedule in a 
 general rate case into effect as provided by this subdivision 
 until at least four months after it has made a final 
 determination concerning any previously filed change of the rate 
 schedule or the change has otherwise become effective under 
 subdivision 2, unless: 

    (1) the commission finds that a four-month delay would 
 unreasonably burden the company, its customers, or its 
 shareholders and that an earlier imposition of interim rates is 
 therefore necessary; or 

    (2) the company files a second general rate case at least 
 12 months after it has filed a previous general rate case for 
 which the commission has extended the suspension period under 
 subdivision 2. 

    Subd. 4.    Burden of proof.  The burden of proof to 
 show that the rate change is just and reasonable shall be upon 
 the telephone company seeking the change. 

    Subd. 5.    Determination after finding rate unacceptable. 
  If, after the hearing, the commission finds the rates to be 
 unjust or unreasonable or discriminatory, the commission shall 
 determine the rates to be charged or applied by the telephone 
 company for the service in question and shall fix them by order 
 to be served upon the telephone company.  The rates shall 
 thereafter be observed until changed, as provided by this 
 chapter.  In no event shall the rates exceed the level of rates 
 requested by the telephone company, except that individual rates 
 may be adjusted upward or downward.  Rate design changes shall 
 be prospective from the effective date of the new rate schedules 
 approved by the commission.  

    Subd. 6.    Factors considered, generally.  The 
 commission, in the exercise of its powers under this chapter to 
 determine just and reasonable rates for telephone companies, 
 shall give due consideration to the public need for adequate, 
 efficient, and reasonable service and to the need of the 
 telephone company for revenue sufficient to enable it to meet 
 the cost of furnishing the service, including adequate provision 
 for depreciation of its telephone company property used and 
 useful in rendering service to the public, and to earn a fair 
 and reasonable return upon the investment in the property.  In 
 determining the rate base upon which the telephone company is to 
 be allowed to earn a fair rate of return, the commission shall 
 give due consideration to evidence of the cost of the property 
 when first devoted to public use, to prudent acquisition cost to 
 the telephone company, less appropriate depreciation on each, to 
 construction work in progress, to offsets in the nature of 
 capital provided by sources other than the investors, and to 
 other expenses of a capital nature.  To the extent that 
 construction work in progress is included in the rate base, the 
 income used in determining the actual return on the telephone 
 company property may include an allowance for funds used during 
 construction.  For purposes of determining rate base, the 
 commission shall consider the original cost of telephone company 
 property included in the base and shall make no allowance for 
 its estimated current replacement value. 

    Subd. 7.    Advertising.  The commission shall not make 
 an allowance for operating expenses incurred by a telephone 
 company for institutional advertising. 

    Subd. 8.    Charitable contribution.  The commission 
 shall allow as operating expenses only those charitable 
 contributions which the commission deems prudent and which 
 qualify under section 290.21, subdivision 3, clause (b) or (e).  
 Only 50 percent of the qualified contributions shall be allowed 
 as operating expenses. 

    Subd. 9.    Election on regulation; cooperative, 
 municipal, independent.  For the purposes of this section, 
 "telephone company" shall not include a cooperative telephone 
 association organized under the provisions of chapter 308A, an 
 independent telephone company, or a municipal, unless the 
 cooperative telephone association, independent telephone 
 company, or municipal makes the election provided in this 
 subdivision. 

    A cooperative telephone association may elect to become 
 subject to rate regulation by the commission pursuant to this 
 section.  The election shall be (a) approved by the board of 
 directors of the association in accordance with the procedures 
 for amending the articles of incorporation contained in section 
 308A.135, excluding the filing requirements; or (b) approved by 
 a majority of members or stockholders voting by mail ballot 
 initiated by petition of no fewer than five percent of the 
 members or stockholders of the association.  The ballot to be 
 used for the election shall be approved by the board of 
 directors and the department of public service.  The department 
 shall mail the ballots to the association's members who shall 
 return the ballots to the department.  The department will keep 
 the ballots sealed until a date agreed upon by the department 
 and the board of directors.  On this date, representatives of 
 the department and the association shall count the ballots.  If 
 a majority of the association's members who vote elect to become 
 subject to rate regulation by the commission, the election shall 
 be effective 30 days after the date the ballots are counted.  
 For purposes of this section, the term "member or stockholder"  
 shall mean either the member or stockholder of record or the 
 spouse of the member or stockholder unless the association has 
 been notified otherwise in writing.  

    A municipal may elect to become subject to rate regulation 
 by the commission pursuant to this section.  The election shall 
 be (a) approved by resolution of the governing body of the 
 municipality; or (b) approved by a majority of the customers of 
 the municipal voting by mail ballot initiated by petition of no 
 fewer than 20 percent of the customers of the municipal.  The 
 ballot to be used for the election shall be approved by the 
 governing body of the municipality and the department of public 
 service.  The department shall mail the ballots to the 
 municipal's customers who shall return the ballots to the 
 department.  The department will keep the ballots sealed until a 
 date agreed upon by the department and the governing body of the 
 municipality.  On this date, representatives of the department 
 and the municipal shall count the ballots.  If a majority of the 
 customers of the municipal who vote elect to become subject to 
 rate regulation by the commission, the election shall be 
 effective 30 days after the date the ballots are counted.  For 
 purposes of this section, the term "customer" shall mean either 
 the person in whose name the telephone service is registered or 
 the spouse of the person unless the municipal utility has been 
 notified otherwise in writing.  

    An independent telephone company may elect to become 
 subject to rate regulation by the commission pursuant to this 
 section.  The election shall be (a) approved by the board of 
 directors of the company in accordance with the procedures for 
 amending the articles of incorporation contained in sections 
 302A.133 to 302A.139, excluding the filing requirements; or (b) 
 approved by a majority of subscribers voting by mail ballot 
 initiated by petition of no fewer than five percent of the 
 subscribers of the company.  The ballot to be used for the 
 election shall be approved by the board of directors and the 
 department of public service.  The department shall mail the 
 ballots to the company's subscribers who shall return the 
 ballots to the department.  The department will keep the ballots 
 sealed until a date agreed upon by the department and the board 
 of directors.  On this date, representatives of the department 
 and the company shall count the ballots.  If a majority of the 
 company's subscribers who vote elect to become subject to rate 
 regulation by the commission, the election shall be effective 30 
 days after the date the ballots are counted.  For purposes of 
 this section the term "subscriber" shall mean either the person 
 in whose name the telephone service is registered or the spouse 
 of the person unless the independent telephone company has been 
 notified otherwise in writing.  

    Subd. 10.    Intervenor reimbursement.  The commission 
 may order a telephone company to pay all or a portion of a 
 party's intervention costs not to exceed $20,000 per 
 intervention in any general rate case when the commission finds 
 that the intervenor has materially assisted the commission's 
 deliberation and the intervenor has insufficient financial 
 resources to afford the costs of intervention.  No entity which 
 provides telephone services of any kind is eligible for 
 reimbursement of intervention costs under this subdivision.  

    Subd. 11.    Recovery of expenses of segregating billing 
 charges.  The public utilities commission shall allow each 
 telephone company and independent telephone company subject to 
 the requirements of section 325F.692 to automatically adjust 
 tariffs or rates paid by information service providers to 
 reflect the reasonable cost to the company to comply with 
 section 325F.692. 

    HIST: 1977 c 359 s 7; 1978 c 694 s 2; 1979 c 319 s 1; 1980 c 
 615 s 60; 1981 c 248 s 2; 1981 c 357 s 73; 1Sp1981 c 4 art 4 s 
 17; 1982 c 414 s 7-12; 1982 c 424 s 130; 1983 c 247 s 98; 1984 c 
 611 s 1; 1984 c 640 s 32; 1986 c 409 s 8,9; 1987 c 384 art 2 s 
 1; 1988 c 457 s 4,5; 1988 c 719 art 2 s 6; 1989 c 144 art 2 s 4; 
 1989 c 356 s 12; 1994 c 449 s 3 

     237.076 Settlement; procedures. 

    Subdivision 1.    Settlement.  In proceedings before the 
 commission, interested parties are encouraged to enter into 
 settlements of their disputes.  If a settlement is reached 
 before a contested case hearing has been ordered and the 
 commission rejects the settlement, the commission shall order a 
 contested case hearing if a significant issue has not been 
 resolved to the commission's satisfaction.  When a contested 
 case hearing has been ordered under this chapter, the office of 
 administrative hearings, before conducting the hearing, shall 
 convene a settlement conference including all the parties to 
 encourage settlement of issues in the contested case.  If a 
 stipulated settlement is not reached before the contested case 
 hearing, the office of administrative hearings may, at its 
 discretion or a party's request, reconvene the settlement 
 conference during the hearing or after its completion.  If all 
 parties agree to a stipulated settlement of the case or a part 
 of the case, the settlement must be submitted to the commission. 

    Subd. 2.    Procedures.  The commission may accept a 
 settlement upon finding that to do so is in the public interest 
 and is supported by substantial evidence.  If the commission 
 does not accept a settlement, it may issue an order modifying 
 the settlement, subject to the approval of the parties.  A party 
 has ten days after entry of the order, or of an order disposing 
 of a petition for reconsideration, in which to reject the 
 proposed modification.  If no party rejects the proposed 
 modification, the commission's order becomes final.  If the 
 commission rejects a settlement or if a party rejects the 
 commission's proposed modification of a settlement, the matter 
 must be referred to the administrative law judge assigned to the 
 case for further proceedings. 

    HIST: 1989 c 74 s 3 

  237.08 Repealed, 1977 c 359 s 8 

     237.081 Investigation. 

    Subdivision 1.    Commission investigation.  Whenever 
 the commission believes that a service is inadequate or cannot 
 be obtained or that an investigation of any matter relating to 
 any telephone service should for any reason be made, it may on 
 its own motion investigate the service or matter with or without 
 notice, except that the commission shall give notice to a 
 telephone company before it investigates the level of rates 
 charged by the company.  

    Subd. 1a.    Complaint investigation.  Upon a complaint 
 made against a telephone company by any other provider of 
 telephone service, by the governing body of a political 
 subdivision, or by no fewer than five percent or 100, whichever 
 is the lesser number, of the subscribers or spouses of 
 subscribers of the particular telephone company, that any of the 
 rates, tolls, tariffs, charges, or schedules, or any regulation, 
 measurement, practice, act, or omission affecting or relating to 
 the production, transmission, delivery, or furnishing of 
 telephone service or any service in connection with telephone 
 service is in any respect unreasonable, insufficient, or 
 unjustly discriminatory, or that any service is inadequate or 
 cannot be obtained, the commission, after notice to the 
 telephone company, shall investigate the matters raised by the 
 complaint. 

    Subd. 2.    Procedure after investigation.  (a) If, 
 after making an investigation under subdivision 1 or 1a, the 
 commission finds that a significant factual issue raised has not 
 been resolved to its satisfaction, the commission shall follow 
 the appropriate procedure prescribed by this subdivision. 

    (b) For an investigation concerning the reasonableness of 
 the rates for noncompetitive services of a telephone company 
 whose general revenue requirement is determined under section 
 237.075, the commission shall order the company to initiate a 
 rate proceeding in accordance with section 237.075.  The 
 commission shall allow the company at least 120 days after the 
 date of the commission's order to initiate the proceeding.  

    (c) For other investigations, the commission shall order 
 that a contested case hearing be conducted under chapter 14 
 unless the complainant, the telephone company, and the 
 commission agree that an expedited hearing under section 237.61 
 is appropriate.  

    Subd. 3. Repealed, 1989 c 74 s 26 

    Subd. 4.    Establishment of rate and price.  Whenever 
 the commission finds, after a proceeding under subdivision 2, 
 that (1) a service that can be reasonably demanded cannot be 
 obtained, (2) that any rate, toll, tariff, charge, or schedule, 
 or any regulation, measurement, practice, act, or omission 
 affecting or relating to the production, transmission, delivery, 
 or furnishing of telephone service or any service in connection 
 with telephone service, is in any respect unreasonable, 
 insufficient, or unjustly discriminatory, or (3) that any 
 service is inadequate, the commission shall make an order 
 respecting the tariff, regulation, act, omission, practice, or 
 service that is just and reasonable and, if applicable, shall 
 establish just and reasonable rates and prices. 

    Subd. 5.    Service; notice.  A copy of an order issued 
 under this section must be served upon the person against whom 
 it runs or the person's attorney, and notice of the order must 
 be given to the other parties to the proceedings or their 
 attorneys.  

    HIST: 1974 c 40 s 1; 1979 c 319 s 2,3; 1981 c 248 s 3; 1986 c 
 444; 1987 c 340 s 19; 1989 c 74 s 4 

     237.082 Telecommunication service; policy of increased 
  speed and service. 

    When setting rates, adopting rules, or issuing orders 
 related to telecommunication matters that affect deployment of 
 the infrastructure, the commission may apply the goals of: 

    (1) achieving economically efficient investment in: 

    (i) higher speed telecommunication services; and 

    (ii) greater capacity for voice, video, and data 
 transmission; and 

    (2) just and reasonable rates. 

    The department of public service may apply the same goals 
 in its regulation of and recommendations regarding 
 telecommunication services. 

    HIST: 1997 c 223 s 4 

     237.09 Discrimination prohibited. 

    Subdivision 1.    Generally.  No telephone company, or 
 any agent or officer thereof, shall, directly or indirectly, in 
 any manner, knowingly or willfully, charge, demand, collect, or 
 receive from any person, firm, or corporation, a greater or less 
 compensation for any intrastate service rendered or to be 
 rendered by it than it charges, demands, collects, or receives 
 from any other firm, person, or corporation for a like and 
 contemporaneous intrastate service under similar circumstances.  

    Subd. 2.    Particular services.  (a) A telephone 
 company that offers or provides a service or services, service 
 elements, features, or functionalities on a separate, 
 stand-alone basis to any customer shall provide that service, 
 service element, feature, or functionality pursuant to tariff to 
 all similarly situated persons, including all telecommunications 
 carriers and competitors.  To the extent prohibited by the 
 Federal Communications Commission or public utilities 
 commission, a telephone company shall not give preference or 
 discriminate in providing services, products, or facilities to 
 an affiliate or to its own or an affiliate's retail department 
 that sells to consumers. 

    (b) For purposes of establishing an appropriate rate or 
 price floor for a rate for a telephone service, a telephone 
 company shall impute, on a service-by-service basis, into the 
 rate or price for that service, the tariffed rate or price for 
 the same services, service elements, or network functions that 
 the company provides to others who use it to provide a service 
 that competes with the telephone service offered by the 
 company.  A company is not required to impute a rate or price 
 under this paragraph if it demonstrates to the commission, in an 
 expedited proceeding under section 237.61, that: 

    (1) the competitor can obtain substantially equivalent 
 services, service elements, or network functions within the 
 relevant market or geographic area on reasonably comparable 
 terms and conditions through self-provision or from a provider 
 other than the telephone company; or 

    (2) application of the imputation requirement otherwise 
 would be inconsistent with the public interest. 

    HIST: (5292) 1915 c 152 s 7; 1995 c 156 s 3 

*   NOTE:  The amendment to this section by Laws 1995, chapter 
*156, section 3, expires January 1, 2006.  Laws 1995, chapter 
*156, section 25.

     237.10 Uniform rules, classifications, practices; forms. 

    It shall be the duty of the commission to prescribe uniform 
 rules and classifications pertaining to the conduct of 
 intrastate telephone business and a system of accounting to be 
 used by telephone companies in transacting this business, and it 
 shall prescribe and furnish blanks and forms for reports, all of 
 which shall conform as nearly as practicable to the rules, 
 classifications, accounting systems, and reports prescribed by 
 the Federal Communications Commission for the interstate 
 business of like size companies.  

    The commission shall by correspondence or conference where 
 necessary use its best endeavors toward establishing uniformity 
 in practice in all matters pertaining to regulation of the 
 business of telephone companies between the federal government 
 and state government of this and adjacent states.  

    HIST: (5293) 1915 c 152 s 8; 1969 c 1031 s 10; 1971 c 25 s 67; 
 1980 c 614 s 123 

     237.11 Inspecting records and property; reports required.

    Every telephone company subject to the provisions of this 
 chapter, wherever organized, shall keep an office in this state, 
 and make such reports to the department as it shall from time to 
 time require.  All books, records, and files, whether they 
 relate to competitive or noncompetitive services, and all of its 
 property shall be at all times subject to inspection by the 
 commission and the department.  It shall close its accounts and 
 take therefrom a balance sheet on December 31 of each year, and 
 on or before May 1 following, such balance sheet, together with 
 such other information as the department shall require, verified 
 by an officer of the telephone company, shall be filed with the 
 commission and the department. 

    In the event that any telephone company shall fail to file 
 its annual report, as provided by this section, the department 
 is authorized to make such an examination of the books, records, 
 and vouchers of the company as is necessary to procure the 
 necessary data for the annual report and cause the same to be 
 prepared.  The expense of procuring this data and preparing this 
 report shall be paid by the telephone company failing to report, 
 and the amount paid shall be credited by the state treasurer to 
 funds appropriated for the expense of the department.  

    The department is authorized to force collection of such 
 sum by an action at law in the name of the department.  

    HIST: (5294) 1915 c 152 s 9; 1919 c 183 s 1; 1961 c 341 s 1; 
 1971 c 25 s 67; 1986 c 444; 1987 c 340 s 20 

     237.115 Information subject to protective order. 

    In any meeting of the commission during which information 
 that is subject to a protective order is discussed, the 
 commission shall employ the procedures of section 14.60 to close 
 to all persons who are not authorized to obtain the information 
 under the protective order that portion of the meeting during 
 which the information will be discussed and take other 
 appropriate measures to ensure that the data is not disclosed to 
 persons who are not authorized to obtain the information under 
 the protective order. 

    HIST: 1992 c 493 s 6 

     237.12 Service connection between telephone companies. 

    Subdivision 1.    Interconnection.  When public 
 convenience requires the same, every telephone company shall, 
 for a reasonable compensation, permit a physical connection or 
 connections to be made, and telephone service to be furnished 
 between any telephone exchange system operated by it, and the 
 telephone toll line or lines operated by another company, or 
 between its telephone toll line or lines and the telephone 
 exchange system of another telephone company, or between its 
 toll line and the toll line of another company, whenever such 
 physical connection or connections are practicable and will not 
 result in irreparable injury to the telephone system so 
 compelled to be connected.  The term "physical connection," as 
 used in this section, means such number of trunk lines or 
 complete wire circuits and connections as may be required to 
 furnish reasonable and adequate service between such telephone 
 lines and exchanges and shall not be deemed to provide for any 
 connection whereby one line or circuit is to be bridged upon 
 another line or circuit.  In case of failure of the telephone 
 companies concerned to allow or agree upon such physical 
 connection or connections, or the terms and conditions upon 
 which the same shall be made, application may be made to the 
 commission for an order requiring such connection and fixing the 
 compensation, terms and conditions thereof, and if after 
 investigation and hearing the commission shall find that such 
 physical connections will not result in irreparable injury to 
 such telephone properties, the commission shall by order direct 
 that such connections be made, and prescribe reasonable 
 conditions and compensation therefor and for the joint use 
 thereof, and by whom the expense of making and maintaining such 
 connection or connections shall be paid.  When application is 
 made requesting physical connection it shall be presumed that 
 such connection is necessary, and that the public convenience 
 will be promoted thereby, and the burden of overcoming such 
 presumption shall be upon the party resisting such application.  
 The telephone companies so connecting shall give service over 
 the connecting line or lines without preference to or 
 discrimination against any service or telephone company whatever.

    Subd. 2.    Discontinuance.  Wherever a physical 
 connection or connections exist between any telephone exchange 
 system operated by a telephone company and the toll line or 
 lines operated by another telephone company or between its toll 
 line or lines and the telephone exchange system of another 
 telephone company, or between its toll line and the toll line of 
 another telephone company, neither of the companies shall cause 
 such connection to be severed or the service between the 
 companies to be discontinued without first obtaining an order 
 from the commission upon an application for permission to 
 discontinue such physical connection.  Upon the filing of an 
 application for discontinuance of such a connection, the 
 department shall investigate and ascertain whether public 
 convenience requires the continuance of such physical 
 connection, and if the department so finds, the commission shall 
 fix the compensation, terms and conditions of the continuance of 
 the physical connection and service between the telephone 
 companies. 

    Subd. 3.    Compensation.  Telephone companies providing 
 long-distance telephone services shall pay compensation to 
 telephone companies providing local telephone services that 
 includes a fair and reasonable portion of:  

    (1) the costs of local exchange facilities used in 
 connection with long-distance telephone services, including 
 facilities connecting a customer to local switching facilities; 
 and 

    (2) the common costs of companies providing local telephone 
 services.  

    Subd. 4.    Price for interconnection or network element. 
  For telephone companies with more than 50,000 access lines, 
 the prices for interconnection or network elements to be 
 established by the commission in any pending or future 
 proceeding shall be based on a forward-looking economic cost 
 methodology which shall include, but is not limited to, 
 consideration of the following: 

    (1) the use of the most efficient telecommunications 
 technology currently available and the least cost network 
 configuration, given the existing location of the incumbent 
 telephone company's wire centers; 

    (2) forward-looking depreciation rates; 

    (3) a reasonable allocation of forward-looking joint and 
 common costs; 

    (4) forward-looking cost of capital; and 

    (5) Minnesota tax rates, and where applicable, Minnesota 
 facility placement requirements, Minnesota topography, and 
 Minnesota climate. 

    HIST: (5295) 1915 c 152 s 10; 1919 c 183 s 2; 1971 c 25 s 67; 
 1980 c 614 s 119; 1987 c 340 s 21; 1997 c 223 s 5 

     237.121 Prohibited practices. 

    (a) A telephone company or telecommunications carrier may 
 not do any of the following with respect to services regulated 
 by the commission: 

    (1) upon request, fail to disclose in a timely and uniform 
 manner information necessary for the design of equipment and 
 services that will meet the specifications for interconnection; 

    (2) intentionally impair the speed, quality, or efficiency 
 of services, products, or facilities offered to a consumer under 
 a tariff, contract, or price list; 

    (3) fail to provide a service, product, or facility to a 
 consumer other than a telephone company or telecommunications 
 carrier in accordance with its applicable tariffs, price lists, 
 or contracts and with the commission's rules and orders; 

    (4) refuse to provide a service, product, or facility to a 
 telephone company or telecommunications carrier in accordance 
 with its applicable tariffs, price lists, or contracts and with 
 the commission's rules and orders; 

    (5) impose unreasonable or discriminatory restrictions on 
 the resale of its services, provided that: 

    (i) it may require that residential service may not be 
 resold as a different class of service; and 

    (ii) the commission may prohibit resale of services it has 
 approved for provision for not-for-profit entities at rates less 
 than those offered to the general public; or 

    (6) provide telephone service to a person acting as a 
 telephone company or telecommunications carrier if the 
 commission has ordered the telephone company or 
 telecommunications carrier to discontinue service to that person.

    (b) A telephone company or telecommunications carrier may 
 not violate a provision of section 325F.693, with regard to any 
 of the services provided by the company or carrier. 

    HIST: 1995 c 156 s 4; 1997 c 68 s 1; 1997 c 223 s 6 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 4, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

  237.13 Repealed, 1987 c 340 s 25 

     237.14 Rate for service to officer.  

    A telephone company may furnish service free or at reduced 
 rates to its officers, agents, or employees in furtherance of 
 their employment, but it shall charge full schedule rates 
 without discrimination for all other services.  Nothing herein 
 shall release any telephone company from carrying out any 
 contract now existing between it and any municipality for the 
 furnishing of any service free or at reduced rates.  Any 
 contract for telephone service, at discriminatory rates, other 
 than those with municipalities, shall be terminated by the 
 company as soon as the same becomes terminable by its terms.  

    HIST: (5297) 1915 c 152 s 11 

     237.15 Investigation and hearing; authority delegated. 

    The department shall whenever it deems the same necessary 
 determine the value of all the property of any telephone company 
 devoted to the public use, and in so doing it shall, after 
 notice to the telephone company, hold such public hearing as 
 will give all interested parties a chance to furnish evidence 
 and be heard.  For the purpose of this chapter the department is 
 authorized to appoint engineers, examiners, experts, clerks, 
 accountants, and other assistants as it may deem necessary at 
 such rates of compensation as it may prescribe.  

    In the discharge of their duties such appointees shall have 
 every power, of any inquisitorial nature granted in this chapter 
 to the department.  The department may conduct any number of 
 investigations contemporaneously through its individual members 
 or appointees, and may delegate to its individual members and 
 employees the taking of all testimony on any investigation or 
 hearing.  

    HIST: (5298) 1915 c 152 s 12; 1919 c 183 s 3; 1971 c 25 s 67 

     237.16 Local exchange competition, rules. 

    Subdivision 1.    New service, certificate of authority. 
  (a) For the purpose of bringing about fair and reasonable 
 competition for local exchange telephone services, the 
 commission has the exclusive authority, subject to the authority 
 of a local government unit under sections 237.162 and 237.163, 
 to: 

    (1) authorize any person to construct telephone lines or 
 exchanges or to otherwise furnish local service to subscribers 
 in any municipality of this state, and to prescribe the terms 
 and conditions upon which construction or service delivery may 
 be carried on; and 

    (2) establish terms and conditions for the entry of 
 telephone service providers so as to protect consumers from 
 monopolistic practices and preserve the state's commitment to 
 universal service.  

    (b) No person shall provide telephone service in Minnesota 
 without first obtaining a determination that the person 
 possesses the technical, managerial, and financial resources to 
 provide the proposed telephone services and a certificate of 
 authority from the commission under terms and conditions the 
 commission finds to be consistent with fair and reasonable 
 competition, universal service, the provision of affordable 
 telephone service at a quality consistent with commission rules, 
 and the commission's rules.  

    (c) The commission shall make a determination on an 
 application for a certificate within 120 days of the filing of 
 the application.  

    Subd. 2. Repealed by amendment, 1995 c 156 s 5 

    Subd. 3.    Map.  Every company authorized to provide 
 local telephone service under this section shall file a 
 territorial map.  The map must comply with the rules prescribed 
 by the commission.  

    Subd. 4.    Amended certificate required for expansion.  
 No company authorized to provide local service shall provide 
 local telephone service in any area for which it has not been 
 certified nor shall any person acquire ownership or control of 
 another telephone company either directly or indirectly, without 
 first obtaining from the commission an amended certificate of 
 authority.  The applicant for an amended certificate shall file 
 with the commission notice of the expansion or acquisition, 
 along with a new map under subdivision 3, identifying the 
 territory to be served.  Notice of the filing shall be served on 
 any affected municipality and local telephone company certified 
 in that territory.  If no objection is filed with the commission 
 by any interested party or raised by the commission within 20 
 days of the filing, it is considered approved, except if it 
 involves an acquisition governed by section 237.23, in which 
 case no certificate shall be granted until approval is obtained 
 pursuant to that section and subdivision 1.  If an objection is 
 filed, the commission shall determine whether to approve the 
 amendment in an expedited proceeding under section 237.61.  This 
 section shall not be construed to require a telephone company 
 operating an exchange in Minnesota to secure a certificate for 
 an extension within any territory within which such company has 
 heretofore filed maps or for substitute facilities within such 
 territories, or for extensions into territories contiguous to 
 that already occupied by such company and not receiving similar 
 service from another company if no certificate of territorial 
 authority has been issued to or applied for by any other company.

    Subd. 5.    Revocation and temporary suspension.  Any 
 certificate of authority may, after notice of hearing and a 
 hearing, be revoked or temporarily suspended by the commission, 
 in whole or in part, for:  the failure of its holder to furnish 
 reasonably adequate telephone service within the area or areas 
 determined and defined in the certificate of authority; failure 
 to meet the terms and conditions of its certificate; intentional 
 violation of the commission's rules or orders; or intentional 
 violation of any applicable state or federal law relating to the 
 provision of telephone or telecommunications services.  

    Subd. 6.    Expansion of service area not required.  
 This section does not require any telephone company providing 
 local service in the state of Minnesota to render telephone 
 service in any portion of any territorial area not included on 
 the telephone company's territorial map. 

    Subd. 7.    Existing certificate service continued.  
 This section does not limit the ability of telephone companies 
 possessing certificates of territorial authority on August 1, 
 1995, including, but not limited to, certificates authorizing 
 resale of local telephone service, to continue to provide 
 telephone service within their designated territories. 

    Subd. 8.    Rules.  (a) Before August 1, 1997, the 
 commission shall adopt rules applicable to all telephone 
 companies and telecommunications carriers required to obtain or 
 having obtained a certificate for provision of telephone service 
 using any existing federal standards as minimum standards and 
 incorporating any additional standards or requirements necessary 
 to ensure the provision of high quality telephone services 
 throughout the state.  The rules must, at a minimum: 

    (1) define procedures for competitive entry and exit; 

    (2) require the provisions of equal access and 
 interconnection with the company's network and other features, 
 functions, and services which the commission considers necessary 
 to promote fair and reasonable competition; 

    (3) require unbundling of network services and functions to 
 at least the level required by existing federal standards; 

    (4) prescribe, if necessary, methods of reciprocal 
 compensation between telephone companies; 

    (5) provide for local telephone number portability; 

    (6) prescribe appropriate regulatory standards for new 
 local telephone service providers, that facilitate and support 
 the development of competitive services; 

    (7) protect against cross-subsidization, unfair 
 competition, and other practices harmful to promoting fair and 
 reasonable competition; 

    (8) prescribe methods for the preservation of universal and 
 affordable local telephone services; 

    (9) prescribe standards for quality of service; 

    (10) provide for the continued provision of local emergency 
 telephone services under chapter 403; and 

    (11) protect residential and commercial customers from 
 unauthorized changes in service providers in a competitively 
 neutral manner. 

    (b) Before January 1, 1998, in a separate rulemaking, the 
 commission shall adopt separate rules regarding the issues 
 described in paragraph (a), clauses (1) to (11), as may be 
 appropriate to provision of competitive local telephone service 
 in areas served by telephone companies with less than 50,000 
 subscribers originally certified to provide local telephone 
 services before January 1, 1988.  

    Subd. 9.    Universal service fund.  The commission 
 shall establish and require contributions to a universal service 
 fund, to be supported by all providers of telephone services, 
 whether or not they are telephone companies under section 
 237.01, including, but not limited to, local telephone 
 companies, independent telephone companies, cooperative 
 telephone companies, municipal telephone companies, 
 telecommunications carriers, radio common carriers, personal 
 communication service providers, and cellular carriers.  
 Services that should be considered for inclusion as universal 
 include, at a minimum, single-party service including access, 
 usage and touch-tone capability; line quality capable of 
 carrying facsimile and data transmissions; equal access; 
 emergency services number capability; statewide 
 telecommunications relay service for the hearing-impaired; and 
 blocking of long-distance toll services.  The fund must be 
 administered and distributed in accordance with rules adopted by 
 the commission and designed to preserve the availability of 
 universal service throughout the state.  Any state universal 
 service fund must be coordinated with any federal universal 
 service fund and be consistent with section 254(b)(1) to (5) of 
 the federal Telecommunications Act of 1996, Public Law Number 
 104-104.  The department shall make recommendations to the 
 legislature by January 1, 1996, regarding a plan for 
 contributions to and expenditures from the universal service 
 fund.  In particular, the department shall address the following 
 issues: 

    (1) what additional services should be included in the 
 basic set of essential telephone services which the state should 
 encourage in its mandate to ensure universal service; 

    (2) whether and how expenditures from the fund should be 
 used to ensure citizens access to local government and other 
 public access programming; and 

    (3) whether expenditures from the fund should be used to 
 encourage construction of infrastructure for, and access to, 
 advanced services, especially in high-cost areas of the state, 
 and, if the commission determines the fund should be used for 
 this purpose, a plan to accomplish these goals.  

    Subd. 10.    Interim authority.  (a) Before adopting the 
 rules required under subdivision 8, the commission shall grant 
 an applicant a certificate to provide a proposed local telephone 
 service when the commission finds that the applicant meets the 
 conditions of subdivision 1.  Any applicant for a certificate 
 pursuant to subdivision 1 shall, at the time its application is 
 filed, provide notice of its application to all local telephone 
 companies authorized to provide local exchange service in the 
 geographic area identified in the application.  The applicant 
 and telephone companies shall negotiate a temporary arrangement 
 pertaining to interconnection matters for the effective 
 interconnection of local exchange networks, pending the adoption 
 of the rules under subdivision 8.  If the applicant and the 
 telephone companies fail to reach agreement within 60 days of 
 filing the application, the commission shall set the terms of 
 the temporary arrangement at the time of the issuance of the 
 certificate. 

    (b) Any company previously certified to provide local 
 telephone services may request a temporary arrangement for the 
 effective interconnection with the local exchange network of 
 another telephone company in the same territory, pursuant to the 
 time frames and procedures of this subdivision. 

    (c) In addition, through and until the rules are adopted 
 under subdivision 8, each telephone company serving more than 
 50,000 access lines in the state shall: 

    (1) permit interconnection or discontinue interconnection 
 for intrastate services to the same extent and in the same 
 manner and time frame as the Federal Communications Commission 
 requires interconnection or permits discontinuance of 
 interconnection for interstate services; and 

    (2) unbundle its intrastate services and facilities used 
 for intrastate services to the same extent and in the same 
 manner as the Federal Communications Commission requires 
 unbundling for interstate purposes. 

    Subd. 11.    Interim authority in area served by small 
 telephone company.  (a) Before adopting the rules required 
 under subdivision 8 for telephone companies with less than 
 50,000 subscribers, when an applicant requests certification to 
 provide local telephone service in an area served by a telephone 
 company with less than 50,000 subscribers originally certified 
 to provide local telephone service before January 1, 1988, the 
 commission shall grant the application if it finds the applicant 
 meets the requirements of subdivision 1.  The commission shall 
 make its determination on the application, including whether to 
 provide a temporary arrangement for the effective 
 interconnection of the local exchange networks, after a hearing 
 under chapter 14 or expedited proceeding under section 237.61, 
 within nine months of the application, and considering any facts 
 unique to that telephone company.  In addition, if an 
 application is granted, that telephone company shall: 

    (1) permit interconnection or discontinue interconnection 
 for intrastate services to the same extent and in the same 
 manner and time frame as the Federal Communications Commission 
 may thereafter require for that small telephone company for 
 interstate purposes; and 

    (2) unbundle its intrastate services and facilities used 
 for intrastate services to the same extent and in the same 
 manner as the Federal Communications Commission may thereafter 
 require for that telephone company for interstate purposes. 

    (b) If a telephone company with less than 50,000 
 subscribers is authorized by the Federal Communications 
 Commission to provide video common carrier services before the 
 rules required under subdivision 8 are adopted, an application 
 under this subdivision for certification to provide local 
 telephone service in an area served by that telephone company 
 shall be determined within 120 days of its filing. 

    Subd. 12.    Extension of interexchange facility.  In 
 order to promote the development of competitive interexchange 
 services and facilities, any interexchange facility that is 
 owned by a certified telephone company, independent telephone 
 company, telecommunications carrier or an affiliate and that is 
 used to provide service to customers located in areas for which 
 it has been previously certified to provide service may be 
 extended to meet and interconnect with the facility of another 
 telephone company, small telephone company, or 
 telecommunications carrier, whether at a point inside or outside 
 of its territories, without further proceeding, order, or 
 determination of current or future public convenience and 
 necessity, upon mutual consent with the other telephone company, 
 small telephone company, or telecommunications carrier whose 
 facilities will be met and interconnected.  Written notice of 
 the extension and interconnection must be provided to the public 
 utilities commission and department of public safety within 30 
 days after completion.  The written notice must be served on all 
 local exchange companies certified before January 1, 1988, in 
 all areas where the facilities are located.  

    Subd. 13.    Application of other law.  Notwithstanding 
 any provisions of sections 237.035 and 237.74 to the contrary, 
 before adopting the rules under subdivision 8, the local 
 services provided by a telecommunications carrier are subject to 
 this chapter in the same manner as those local services of a 
 telephone company regulated under this chapter, except that the 
 telecommunications carrier is not subject to section 237.22 and 
 is not subject to rate-of-return regulation or earnings 
 investigations under section 237.075 or 237.081.  Before 
 offering a local telephone service a telecommunications carrier 
 must be certified to provide local service under this section.  

    HIST: (5299) 1915 c 152 s 13; 1925 c 184 s 1; 1961 c 637 s 1; 
 1971 c 25 s 67; 1980 c 614 s 123; 1985 c 248 s 70; 1987 c 340 s 
 22; 1995 c 156 s 5; 1996 c 305 art 1 s 56; 1996 c 340 s 1; 1997 
 c 68 s 2; 1997 c 123 s 2; 1997 c 223 s 7 

*   NOTE:  The amendment to this section by Laws 1995, chapter 
*156, section 5, expires January 1, 2006.  Laws 1995, chapter 
*156, section 25.

  237.161 Expired 

     237.162 Public right-of-way; definitions. 

    Subdivision 1.    Generally.  The terms used in sections 
 237.162 and 237.163 have the meanings given to them in this 
 section. 

    Subd. 2.    Local government unit.  "Local government 
 unit" means a county, home rule charter or statutory city, or 
 town. 

    Subd. 3.    Public right-of-way.  "Public right-of-way" 
 means the area on, below, or above a public roadway, highway, 
 street, cartway, bicycle lane, and public sidewalk in which the 
 local government unit has an interest, including other dedicated 
 rights-of-way for travel purposes and utility easements of local 
 government units. 

    A public right-of-way does not include the airwaves above a 
 public right-of-way with regard to cellular or other nonwire 
 telecommunications or broadcast service. 

    Subd. 4.    Telecommunications right-of-way user.  
 "Telecommunications right-of-way user" means a person owning or 
 controlling a facility in the public right-of-way, or seeking to 
 own or control a facility in the public right-of-way, that is 
 used or is intended to be used for transporting 
 telecommunications or other voice or data information.  A cable 
 communication system defined and regulated under chapter 238, 
 and telecommunications activities related to providing natural 
 gas or electric energy services whether provided by a public 
 utility as defined in section 216B.02, a municipality, a 
 municipal gas or power agency organized under chapter 453 or 
 453A, or a cooperative electric association organized under 
 chapter 308A, are not telecommunications right-of-way users for 
 the purposes of this section and section 237.163. 

    Subd. 5.    Excavate.  "Excavate" means to dig into or 
 in any way remove, physically disturb, or penetrate a part of a 
 public right-of-way. 

    Subd. 6.    Obstruct.  "Obstruct" means to place a 
 tangible object in a public right-of-way so as to hinder free 
 and open passage over that or any part of the right-of-way. 

    Subd. 7.    Right-of-way permit.  "Right-of-way permit" 
 means a permit to perform work in a public right-of-way, whether 
 to excavate or obstruct the right-of-way. 

    Subd. 8.    Manage the public right-of-way.  "Manage the 
 public right-of-way" means the authority of a local government 
 unit to do any or all of the following: 

    (1) require registration; 

    (2) require construction performance bonds and insurance 
 coverage; 

    (3) establish installation and construction standards; 

    (4) establish and define location and relocation 
 requirements for equipment and facilities; 

    (5) establish coordination and timing requirements; 

    (6) require telecommunications right-of-way users to 
 submit, for right-of-way projects commenced after May 10, 1997, 
 whether initiated by a local government unit or any 
 telecommunications right-of-way user, project data reasonably 
 necessary to allow the local government unit to develop a 
 right-of-way mapping system, such as a geographical information 
 mapping system; 

    (7) require telecommunication right-of-way users to submit, 
 upon request of a local government unit, existing data on the 
 location of the user's facilities occupying the public 
 right-of-way within the local government unit.  The data may be 
 submitted in the form maintained by the user and in a reasonable 
 time after receipt of the request based on the amount of data 
 requested; 

    (8) establish right-of-way permitting requirements for 
 street excavation and obstruction; 

    (9) establish removal requirements for abandoned equipment 
 or facilities, if required in conjunction with other 
 right-of-way repair, excavation, or construction; and 

    (10) impose reasonable penalties for unreasonable delays in 
 construction. 

    Subd. 9.    Management costs or rights-of-way management 
 costs.  "Management costs" or "rights-of-way management costs" 
 means the actual costs a local government unit incurs in 
 managing its public rights-of-way, and includes such costs, if 
 incurred, as those associated with registering applicants; 
 issuing, processing, and verifying right-of-way permit 
 applications; inspecting job sites and restoration projects; 
 maintaining, supporting, protecting, or moving user equipment 
 during public right-of-way work; determining the adequacy of 
 right-of-way restoration; restoring work inadequately performed 
 after providing notice and the opportunity to correct the work; 
 and revoking right-of-way permits.  Management costs do not 
 include payment by a telecommunications right-of-way user for 
 the use of the public right-of-way, the fees and cost of 
 litigation relating to the interpretation of this section or 
 section 237.163 or any ordinance enacted under those sections, 
 or the local unit of government's fees and costs related to 
 appeals taken pursuant to section 237.163, subdivision 5. 

    HIST: 1997 c 123 s 3 

     237.163 Use and regulation of public right-of-way. 

    Subdivision 1.    Legislative finding.  The legislature 
 finds, and establishes the principle that, it is in the state's 
 interest that the use and regulation of public rights-of-way be 
 carried on in a fair, efficient, competitively neutral, and 
 substantially uniform manner, while recognizing such regulation 
 must reflect the distinct engineering, construction, operation, 
 maintenance and public and worker safety requirements, and 
 standards applicable to various users of public rights-of-way.  
 Because of the potential for installation by telecommunication 
 companies of multiple and competing facilities within the public 
 rights-of-way, the legislature finds it is necessary to enact 
 the provisions of this section and section 237.162 to 
 specifically authorize local government units to regulate the 
 use of public rights-of-way by telecommunications right-of-way 
 users.  

    Subd. 2.    Generally.  (a) Subject to this section, a 
 telecommunications right-of-way user authorized to do business 
 under the laws of this state or by license of the Federal 
 Communications Commission may construct, maintain, and operate 
 conduit, cable, switches, and related appurtenances and 
 facilities along, across, upon, above, and under any public 
 right-of-way. 

    (b) Subject to this section, a local government unit has 
 the authority to manage its public rights-of-way and to recover 
 its rights-of-way management costs.  The authority defined in 
 this section may be exercised at the option of the local 
 government unit.  The exercise of this authority is not mandated 
 under this section.  A local government unit may, by ordinance: 

    (1) require a telecommunications right-of-way user seeking 
 to excavate or obstruct a public right-of-way for the purpose of 
 providing telecommunications services to obtain a right-of-way 
 permit to do so and to impose permit conditions consistent with 
 the local government unit's management of the right-of-way; 

    (2) require a telecommunications right-of-way user using, 
 occupying, or seeking to use or occupy a public right-of-way for 
 the purpose of providing telecommunications services to register 
 with the local government unit by providing the local government 
 unit with the following information: 

    (i) the applicant's name, gopher state one-call 
 registration number under section 216D.03, address, and 
 telephone and facsimile numbers; 

    (ii) the name, address, and telephone and facsimile numbers 
 of the applicant's local representative; 

    (iii) proof of adequate insurance; and 

    (iv) other information deemed reasonably necessary by the 
 local government unit for the efficient administration of the 
 public right-of-way; and 

    (3) require telecommunications right-of-way users to submit 
 to the local government unit plans for construction and major 
 maintenance that provide reasonable notice to the local 
 government unit of projects that the telecommunications 
 right-of-way user expects to undertake that may require 
 excavation and obstruction of public rights-of-way. 

    (c) A local government unit may also require a 
 telecommunications right-of-way user that is registered with the 
 local government unit pursuant to paragraph (b), clause (2), to 
 periodically update the information in its registration 
 application. 

    Subd. 3.    Restoration.  (a) A telecommunications 
 right-of-way user, after an excavation of a public right-of-way, 
 shall provide for restoration of the right-of-way and 
 surrounding areas, including the pavement and its foundation, in 
 the same condition that existed before the excavation.  Local 
 government units that choose to perform their own surface 
 restoration required as a result of the excavation may require 
 telecommunications right-of-way users to reimburse the 
 reasonable costs of that surface restoration.  Restoration of 
 the public right-of-way must be completed within the dates 
 specified in the right-of-way permit, unless the permittee 
 obtains a waiver or a new or amended right-of-way permit. 

    (b) If a telecommunications right-of-way user elects not to 
 restore the public right-of-way, a local government unit may 
 impose a degradation fee in lieu of restoration to recover costs 
 associated with a decrease in the useful life of the public 
 right-of-way caused by the excavation of the right-of-way by a 
 telecommunications right-of-way user.  

    (c) A telecommunications right-of-way user that disturbs 
 uncultivated sod in the excavation or obstruction of a public 
 right-of-way shall plant grasses that are native to Minnesota 
 and, wherever practicable, that are of the local eco-type, as 
 part of the restoration required under this subdivision, unless 
 the owner of the real property over which the public 
 right-of-way traverses objects.  In restoring the right-of-way, 
 the telecommunications right-of-way user shall consult with the 
 department of natural resources regarding the species of native 
 grasses that conform to the requirements of this paragraph. 

    Subd. 4.    Permit denial or revocation.  (a) A local 
 government unit may deny any application for a right-of-way 
 permit if the telecommunications right-of-way user does not 
 comply with a provision of this section.  

    (b) A local government unit may deny an application for a 
 right-of-way permit if the local government unit determines that 
 the denial is necessary to protect the health, safety, and 
 welfare or when necessary to protect the public right-of-way and 
 its current use. 

    (c) A local government unit may revoke a right-of-way 
 permit granted to a telecommunications right-of-way user, with 
 or without fee refund, in the event of a substantial breach of 
 the terms and conditions of statute, ordinance, rule, or 
 regulation or any material condition of the permit.  A 
 substantial breach by a permittee includes, but is not limited 
 to, the following: 

    (1) a material violation of a provision of the right-of-way 
 permit; 

    (2) an evasion or attempt to evade any material provision 
 of the right-of-way permit, or the perpetration or attempt to 
 perpetrate any fraud or deceit upon the local government unit or 
 its citizens; 

    (3) a material misrepresentation of fact in the 
 right-of-way permit application; 

    (4) a failure to complete work in a timely manner, unless a 
 permit extension is obtained or unless the failure to complete 
 work is due to reasons beyond the permittee's control; and 

    (5) a failure to correct, in a timely manner, work that 
 does not conform to applicable standards, conditions, or codes, 
 upon inspection and notification by the local government unit of 
 the faulty condition. 

    (d) Subject to this subdivision, a local government unit 
 may not deny an application for a right-of-way permit for 
 failure to include a project in a plan submitted to the local 
 government unit under subdivision 2, paragraph (b), clause (3), 
 when the telecommunications right-of-way user has used 
 commercially reasonable efforts to anticipate and plan for the 
 project. 

    (e) In no event may a local government unit unreasonably 
 withhold approval of an application for a right-of-way permit, 
 or unreasonably revoke a permit. 

    Subd. 5.    Appeal.  (a) A telecommunications 
 right-of-way user that:  (1) has been denied registration; (2) 
 has been denied a right-of-way permit; (3) has had its 
 right-of-way permit revoked; or (4) believes that the fees 
 imposed on the user by the local government unit do not conform 
 to the requirements of subdivision 6, may have the denial, 
 revocation, or fee imposition reviewed, upon written request, by 
 the governing body of the local government unit.  The governing 
 body of the local government unit shall act on a timely written 
 request at its next regularly scheduled meeting.  A decision by 
 the governing body affirming the denial, revocation, or fee 
 imposition must be in writing and supported by written findings 
 establishing the reasonableness of the decision.  

    (b) Upon affirmation by the governing body of the denial, 
 revocation, or fee imposition, the telecommunications 
 right-of-way user shall have the right to have the matter 
 resolved by binding arbitration.  Binding arbitration must be 
 before an arbitrator agreed to by both the local government unit 
 and the telecommunications right-of-way user.  If the parties 
 cannot agree on an arbitrator, the matter must be resolved by a 
 three-person arbitration panel made up of one arbitrator 
 selected by the local government unit, one arbitrator selected 
 by the telecommunications right-of-way user and one person 
 selected by the other two arbitrators.  The costs and fees of a 
 single arbitrator shall be borne equally by the local government 
 unit and the telecommunications right-of-way user. 

    In the event there is a third arbitrator, each party shall 
 bear the expense of its own arbitrator and shall jointly and 
 equally bear with the other party the expense of the third 
 arbitrator and of the arbitration. 

    Each party to the arbitration shall pay its own costs, 
 disbursements, and attorney fees. 

    Subd. 6.    Fees.  (a) A local government unit may 
 recover its right-of-way management costs by imposing a fee for 
 registration, a fee for each right-of-way permit, or, when 
 appropriate, a fee applicable to a particular telecommunications 
 right-of-way user when that user causes the local government 
 unit to incur costs as a result of actions or inactions of that 
 user.  A local government unit may not recover from a 
 telecommunications right-of-way user costs caused by another 
 entity's activity in the right-of-way. 

    (b) Fees, or other right-of-way obligations, imposed by a 
 local government unit on telecommunications right-of-way users 
 under this section must be: 

    (1) based on the actual costs incurred by the local 
 government unit in managing the public right-of-way; 

    (2) based on an allocation among all users of the public 
 right-of-way, including the local government unit itself, which 
 shall reflect the proportionate costs imposed on the local 
 government unit by each of the various types of uses of the 
 public rights-of-way; 

    (3) imposed on a competitively neutral basis; and 

    (4) imposed in a manner so that above-ground uses of public 
 rights-of-way do not bear costs incurred by the local government 
 unit to regulate underground uses of public rights-of-way. 

    (c) The rights, duties, and obligations regarding the use 
 of the public right-of-way imposed under this section must be 
 applied to all users of the public right-of-way, including the 
 local government unit while recognizing regulation must reflect 
 the distinct engineering, construction, operation, maintenance 
 and public and worker safety requirements, and standards 
 applicable to various users of the public rights-of-way.  For 
 users subject to the franchising authority of a local government 
 unit, to the extent those rights, duties, and obligations are 
 addressed in the terms of an applicable franchise agreement, the 
 terms of the franchise shall prevail over any conflicting 
 provision in an ordinance. 

    Subd. 7.    Additional right-of-way provisions.  (a) In 
 managing the public rights-of-way and in imposing fees under 
 this section, no local government unit may: 

    (1) unlawfully discriminate among telecommunications 
 right-of-way users; 

    (2) grant a preference to any telecommunications 
 right-of-way user; 

    (3) create or erect any unreasonable requirement for entry 
 to the public rights-of-way by telecommunications right-of-way 
 users; or 

    (4) require a telecommunications right-of-way user to 
 obtain a franchise or pay for the use of the right-of-way. 

    (b) A telecommunications right-of-way user need not apply 
 for or obtain right-of-way permits for facilities that are 
 located in public rights-of-way on May 10, 1997, for which the 
 user has obtained the required consent of the local government 
 unit, or that are otherwise lawfully occupying the public 
 right-of-way.  However, the telecommunications right-of-way user 
 may be required to register and to obtain a right-of-way permit 
 for an excavation or obstruction of existing facilities within 
 the public right-of-way after May 10, 1997. 

    (c) Data and documents exchanged between a local government 
 unit and a telecommunications right-of-way user are subject to 
 the terms of chapter 13.  A local government unit not complying 
 with this paragraph is subject to the penalties set forth in 
 section 13.08. 

    (d) A local government unit may not collect a fee imposed 
 under this section through the provision of in-kind services by 
 a telecommunications right-of-way user, nor may a local 
 government unit require the provision of in-kind services as a 
 condition of consent to use the local government unit's public 
 right-of-way. 

    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 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). 

    HIST: 1997 c 123 s 4; 1998 c 345 s 4 

*   NOTE:  Subdivision 5 of this section, as added by Laws 
*1997, chapter 123, section 4, is repealed effective June 30, 
*1999.  Laws 1997, chapter 123, section 11.

     237.164 Universal service discount for school or library.

    The commission shall establish intrastate service discounts 
 for schools and libraries by order to the extent and within the 
 time frame necessary to enable schools and libraries to begin 
 receiving federally supported discounts at the earliest date 
 permitted by the Federal Communications Commission. 

    HIST: 1997 c 223 s 8 

     237.17 Extension of long-distance line. 

    Any telephone company may extend its long-distance lines 
 into or through any city of this state for the furnishing of 
 long-distance service only, subject to the regulation of the 
 governing body of such city relative to the location of the 
 poles and wires and the preservation of the safe and convenient 
 use of such streets and alleys to the public.  

    HIST: (5300) 1915 c 152 s 14; 1925 c 184 s 2; 1973 c 123 art 5 
 s 7; 1987 c 340 s 23 

     237.18 Surrendering old license; new authority.  

    Any telephone company operating under any existing license, 
 permit, or franchise or which shall, before the taking effect of 
 Laws 1915, chapter 152, acquire any license, permit, or 
 franchise, upon filing with the clerk of the municipality which 
 granted such franchise, a written declaration that it surrenders 
 such license, permit, or franchise, may receive in lieu thereof, 
 an indeterminate permit, as defined in this chapter; and such 
 telephone company shall thereafter hold such permit under all 
 the terms, conditions, and limitations of this chapter.  The 
 filing of such declaration shall be deemed a waiver by such 
 telephone company of the right to insist upon the fulfillment by 
 any municipality of any contract theretofore entered into 
 relating to any rate, charge, or service made subject to 
 regulation by this chapter.  Upon filing such written 
 declaration by the telephone company, the clerk of the 
 municipality shall file with the commission a certificate 
 showing that fact and the date thereof, and thereupon it shall 
 receive an indeterminate permit from the commission conferring 
 the same rights as if originally granted under this chapter.  

    HIST: (5301) 1915 c 152 s 15; 1971 c 25 s 67; 1980 c 614 s 123 

     237.19 Municipal telecommunications services. 

    Any municipality shall have the right to own and operate a 
 telephone exchange within its own borders, subject to the 
 provisions of this chapter.  It may construct such plant, or 
 purchase an existing plant by agreement with the owner, or where 
 it cannot agree with the owner on price, it may acquire an 
 existing plant by condemnation, as hereinafter provided, but in 
 no case shall a municipality construct or purchase such a plant 
 or proceed to acquire an existing plant by condemnation until 
 such action by it is authorized by a majority of the electors 
 voting upon the proposition at a general election or a special 
 election called for that purpose, and if the proposal is to 
 construct a new exchange where an exchange already exists, it 
 shall not be authorized to do so unless 65 percent of those 
 voting thereon vote in favor of the undertaking.  A municipality 
 that owns and operates a telephone exchange may enter into a 
 joint venture as a partner or shareholder with a 
 telecommunications organization to provide telecommunications 
 services within its service area. 

    HIST: (5302) 1915 c 152 s 16; 1991 c 79 s 1 

     237.20 Condemnation:  notice, compensation, appeal. 

    When a municipality decides in the manner above provided to 
 acquire an existing plant by condemnation, it shall give notice 
 to the commission which shall determine the just compensation 
 which the owner of the plant is entitled to receive from the 
 municipality.  Before deciding upon the compensation, the 
 commission shall, at a public meeting which may be adjourned 
 from time to time, hear all interested parties on the question 
 involved.  The commission shall by order fix the compensation 
 and furnish a copy of its order to the municipality and to the 
 telephone company concerned.  An appeal may be taken to the 
 district court of the county in which the plant is situated from 
 that part of the order fixing the compensation to be paid, 
 within 30 days, by either party.  The appeal shall be tried the 
 same as other appeals hereunder.  If no appeal is taken, the 
 order of the commission shall become final at the end of 30 days.

    HIST: (5303) 1915 c 152 s 17; 1971 c 25 s 67; 1980 c 614 s 
 123; 1983 c 247 s 99 

     237.21 Valuation of telephone property.  

    In determining the value of any telephone property for rate 
 making purposes, no valuation shall be allowed upon the value of 
 any franchise granted by the state or any municipality where no 
 payment was or is being made to the state or municipality on 
 account thereof.  The requirement as to reasonableness of rates 
 shall apply to each exchange unit as well as to telephone plants 
 as a whole.  Provided, that in the case of a company operating a 
 telephone system consisting of more than one exchange in the 
 state, reasonableness of rates, as measured by earnings, shall 
 be determined by a reasonable return from the total operations 
 of the system within the state rather than by the return from 
 individual exchanges or services.  No telephone rates or charges 
 shall be allowed or approved by the commission under any 
 circumstances, which are inadequate and which are intended to or 
 naturally tend to destroy competition or produce a monopoly in 
 telephone service in the locality affected.  

    Laws 1953, chapter 25, shall have no effect on proceedings 
 pending before the courts or the department of public service at 
 the time of its enactment.  

    HIST: (5304) 1915 c 152 s 18; 1953 c 25 s 1,2; 1971 c 25 s 67; 
 1980 c 614 s 123 

     237.22 Depreciation; amortization. 

    The commission shall fix proper and adequate rates and 
 methods of depreciation and amortization with respect to 
 telephone company property and every telephone company shall 
 conform its depreciation accounts for property used in whole or 
 in part to provide noncompetitive services to the rates and 
 methods fixed by the commission. 

    HIST: (5305) 1915 c 152 s 19; 1971 c 25 s 67; 1977 c 364 s 10; 
 1980 c 614 s 123; 1987 c 340 s 24 

     237.23 Acquiring property of another company.  

    It shall be unlawful for any telephone company, 
 corporation, person, partnership, or association subject to the 
 provisions of this chapter to purchase or acquire the property, 
 capital stock, bonds, securities, or other obligations, or the 
 franchises, rights, privileges, and immunities of any telephone 
 company doing business within the state without first obtaining 
 the consent of the commission thereto; and telephone companies, 
 corporations, persons, partnerships, or associations are hereby 
 given the right with the consent of the commission to purchase 
 and acquire the property, capital stock, bonds, securities, or 
 other obligations together with all franchises, rights, 
 privileges, and immunities owned or enjoyed by said companies.  
 The owner and the proposed purchaser of said property shall both 
 join in the application filed with the commission for the 
 approval of such transfer, and in the case of a corporation 
 desiring to sell all of its property it shall require a vote of 
 a majority of its stockholders to ratify the same.  Telephone 
 companies may sell and dispose of any property not used by said 
 telephone companies in the conduct of their business at the time 
 of the sale without the consent of the commission.  

    Nothing herein shall be deemed to prevent the holding of 
 stock heretofore lawfully acquired or to prevent the acquisition 
 of additional stock by any telephone company owning a majority 
 of the stock of any telephone company.  

    HIST: (5306) 1915 c 152 s 20; 1919 c 183 s 4; 1945 c 143 s 1; 
 1971 c 25 s 67; 1980 c 614 s 123 

     237.231 Sale of local exchange service. 

    Subdivision 1.    Commission approval.  A Class A 
 telephone company may not sell a local exchange service 
 territory without receiving the prior consent of the 
 commission.  For the purposes of this section, a Class A 
 telephone company is a telephone company which has annual 
 revenues from regulated telecommunication operations of 
 $100,000,000 or more, as defined by the Federal Communications 
 Commission in Code of Federal Regulations, title 47, section 
 32.11, paragraphs (a)(1) and (e). 

    Subd. 2.    Notice of intended sale.  At least 90 days 
 prior to applying to the commission for consent to a proposed 
 sale or acquisition of a local exchange service, the selling 
 telephone company must provide notice to its customers in that 
 local exchange of its intent to sell and identify the affected 
 local exchange, and the name of the proposed buyer.  The notice 
 must be on a separate document and included in the company's 
 monthly billings to customers.  The commission must approve the 
 form of all notices. 

    Subd. 3.    Resident poll.  At least 60 days prior to 
 the hearing under subdivision 4, the telephone company proposing 
 the sale of a local exchange service must provide each of its 
 customers with a stamped envelope addressed to the commission 
 and must inform the customer that the customer is encouraged to 
 comment on the quality of service that has been provided in the 
 local exchange service territory by the telephone company over 
 the last 12 months. 

    Subd. 4.    Public hearing.  At least 30 days prior to 
 the commission's deliberations about a proposed sale or 
 acquisition of a local exchange service territory, the 
 commission must hold a public hearing at a location within the 
 affected local exchange service territory allowing the public an 
 opportunity to be heard and to present any concerns or comments. 

    Subd. 5.    Requirements for consent.  The commission 
 may not give consent to a sale of a service territory unless, at 
 a minimum, it finds all of the following: 

    (1) the quality of service provided by the telephone 
 company servicing the local exchange service territory has 
 substantially complied with all applicable quality of service 
 standards adopted by rule by the commission for the previous 
 calendar year; 

    (2) the proposed buyer is financially responsible and 
 capable of making necessary investments to maintain quality 
 service at levels required by rule; and 

    (3) the proposed buyer demonstrates that it has an adequate 
 number of properly trained employees to maintain service at 
 required levels. 

    The commission shall, as a condition of its consent, 
 require a proposed buyer to enter into binding commitments 
 obligating the buyer to maintain minimum levels of investment 
 and staffing needed to meet the commission's quality of service 
 rules.  These commitments are in addition to any other 
 conditions that the commission may impose. 

    HIST: 1995 c 191 s 1 

     237.24 Transcribed copy of record, expense.  

    A full and complete record shall be kept by the commission 
 of all proceedings had before it upon any formal investigation 
 or hearing and all testimony received or offered shall be taken 
 down by the stenographer appointed by the commission and a 
 transcribed copy of such record shall be furnished to any party 
 to such investigation upon the payment of the expense of 
 furnishing said transcribed copy.  

    When an appeal is taken from any order of the commission 
 under the provisions of this chapter, the commission shall 
 forthwith cause a certified transcript of all proceedings had, 
 of all pleadings and files, and all testimony taken or offered 
 before it upon which such order was based, showing particularly 
 what, if any evidence, offered was excluded, to be made and 
 filed with the court administrator of the district court where 
 such appeal is pending.  

    HIST: (5307) 1915 c 152 s 21; 1919 c 183 s 5; 1971 c 25 s 67; 
 1980 c 614 s 123; 1Sp1986 c 3 art 1 s 82 

     237.25 Appeal from decision of commission. 

    Any party to a proceeding before the commission or the 
 attorney general may make and perfect an appeal from the order 
 in accordance with chapter 14.  

    If the court finds from an examination of the record that 
 the commission erroneously rejected evidence which should have 
 been admitted, it shall remand the proceedings to the commission 
 with instructions to receive the evidence rejected and any 
 rebutting evidence and make new findings and return them to the 
 court for further review.  In such case the commission, after 
 notice to the parties in interest, shall proceed to rehear the 
 matter in controversy, and receive the wrongfully rejected 
 evidence and any rebutting evidence offered and make new 
 findings, as upon the original hearing, and transmit it and the 
 new record, properly certified, to the court of appeals, 
 whereupon the matter shall be again considered in the court in 
 the same manner as in an original appeal.  

    HIST: (5308) 1915 c 152 s 22; 1971 c 25 s 67; 1980 c 614 s 
 123; 1983 c 247 s 100 

     237.26 Order final and conclusive.  

    If no appeal is taken from any order of the commission, as 
 above provided, then in all litigation thereafter arising 
 between the state and any telephone company or between private 
 parties and any telephone company, the order shall be deemed 
 final and conclusive.  

    HIST: (5309) 1915 c 152 s 23; 1971 c 25 s 67; 1980 c 614 s 123 

     237.27 Attorney general to compel obedience. 

    When any telephone company fails to comply with any law of 
 the state or any order of the commission after it has become 
 final, or any order or judgment of the district court, the court 
 of appeals, or the supreme court in any cases taken to any of 
 the courts on appeal, after the judgment or order has become 
 final, the attorney general shall apply to the district court in 
 the name of the state in any county in which the plant of the 
 telephone company, or any part of it, is situated, for a 
 mandatory injunction or other appropriate writ to compel 
 obedience to the law, order, or judgment.  The district court 
 shall punish any disobedience of its orders in the enforcement 
 proceedings as for contempt of court.  

    HIST: (5311) 1915 c 152 s 25; 1971 c 25 s 67; 1980 c 614 s 
 123; 1983 c 247 s 101 

     237.28 Burden of proof.  

    In any investigation, action or proceeding arising under, 
 or growing out of, an action initiated by the commission upon 
 its own motion, the burden of proof shall be upon the telephone 
 company to establish the reasonableness of the existing rates.  

    HIST: (5311-1) 1937 c 426 s 1; 1971 c 25 s 67; 1980 c 614 s 
 123 

  237.29 Repealed, 1978 c 694 s 4 

     237.295 Assessment of regulatory expenses. 

    Subdivision 1.    Payment for investigation.  (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 any company, parties to the proceeding shall pay 
 the expenses reasonably attributable to the proceeding.  The 
 department and commission shall ascertain the expenses, and the 
 department shall render a bill for those expenses to the 
 parties, at the conclusion of the 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 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. 

    (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.    Objection.  Within 30 days after the date of 
 the mailing of any bill as provided by subdivisions 1, 2, 5, and 
 6, the 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 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 contested case hearings 
 held pursuant to section 237.25 shall be assessed by the 
 commissioner or the department against the 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 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. 

    HIST: 1978 c 694 s 3; 1979 c 50 s 24; 1980 c 614 s 120,121; 
 1981 c 357 s 74,75; 1989 c 74 s 5,6; 1992 c 478 s 5; 1993 c 369 
 s 68,69; 1998 c 345 s 5 

     237.30 Telephone investigation fund; appropriation. 

    The sum of $25,000 is hereby appropriated out of any moneys 
 in the state treasury not otherwise appropriated, to establish 
 and provide a revolving fund to be known as the Minnesota 
 Telephone Investigation Fund for the use of the department of 
 public service and of the attorney general in investigations, 
 valuations, and revaluations under section 237.295.  All sums 
 paid by the telephone companies to reimburse the department of 
 public service for its expenses pursuant to section 237.295 
 shall be credited to the revolving fund and shall be deposited 
 in a separate bank account and not commingled with any other 
 state funds or moneys, but any balance in excess of $25,000 in 
 the revolving fund at the end of each fiscal year shall be paid 
 into the state treasury and credited to the general fund.  The 
 sum of $25,000 herein appropriated and all subsequent credits to 
 said revolving fund shall be paid upon the warrant of the 
 commissioner of finance upon application of the department or of 
 the attorney general to an aggregate amount of not more than 
 one-half of such sums to each of them, which proportion shall be 
 constantly maintained in all credits and withdrawals from the 
 revolving fund. 

    HIST: (5311-2a) 1939 c 333 s 2; 1969 c 399 s 1; 1971 c 25 s 
 67; 1973 c 492 s 14; 1Sp1981 c 4 art 1 s 96; 1989 c 269 s 43 

  237.31 Repealed, 1951 c 113 s 2 

  237.32 Repealed, 1975 c 25 s 2 

     237.33 Town telephone system.  

    For the purpose of preventing the starting and spreading of 
 forest or prairie fires and extinguishing the same, promoting 
 public welfare, public health, and public safety, and 
 facilitating the work of public improvements, the electors of 
 any organized town of this state shall have power, at their 
 annual town meeting or at any special town meeting called in the 
 manner provided by law for special town meetings, to authorize 
 the town to construct, or otherwise acquire, operate, and 
 maintain a township telephone system, including the necessary 
 poles, wires, telephones and telephone equipment, and by itself 
 or in conjunction with one or more other towns to construct, 
 equip, acquire, operate, and maintain a local telephone 
 exchange, or one or more trunk lines of wires connecting such 
 town or towns with the local exchange, or with a local exchange 
 owned by some other corporation or persons, and to determine by 
 ballot the amount of money to be raised for the purposes 
 aforesaid.  No such local exchange as herein provided for shall 
 be constructed or maintained in municipalities where a local 
 exchange is already in operation.  

    HIST: (5312) 1921 c 439 s 1 

     237.34 Town telephone line outside corporate limits.  

    For the purpose of carrying out the provisions of section 
 237.33, any town may, by itself or in conjunction with one or 
 more other towns, construct, maintain, acquire, own, or lease 
 telephone lines, telephone equipment, or a local exchange 
 outside the corporate limits of such town.  The authority herein 
 granted to any town to acquire, construct, or maintain, by 
 itself, lines outside of its corporate limits shall be solely 
 for the purpose of connecting telephones inside its corporate 
 limits with a telephone exchange or switching center outside its 
 corporate limits.  The department may order any service to be 
 extended across any township line to any person or concern 
 adjacent thereto when, in the judgment of the department, such 
 person or concern is entitled to telephone service and the same 
 cannot be reasonably required of any other telephone company.  

    HIST: (5313) 1921 c 439 s 2; 1927 c 193 s 1; 1971 c 25 s 67 

     237.35 Tax levy for construction. 

    When any town has authorized the construction, acquiring, 
 operation, or maintenance of a telephone system, as set forth in 
 sections 237.33 and 237.34, and determined the amount of money 
 to be raised for that purpose, the town board of supervisors may 
 levy a tax for the amount of money to be raised therefor.  

    HIST: (5314) 1921 c 439 s 3; 1949 c 238 s 1; 1973 c 773 s 1; 
 1989 c 277 art 4 s 19; 1994 c 505 art 5 s 3 

     237.36 Rental, charge, toll; taxation; nonpayment.  

    The electors of such town shall have power at their annual 
 town meeting, or at any special meeting, to determine and, in 
 case the electors fail to do so, the town board of supervisors 
 shall determine, the manner of payment of rentals and charges to 
 be paid per phone for operating a local exchange service; and 
 such charges and all tolls payable by the users of such township 
 system shall, in the first instance, be collected by the town 
 board or under its direction.  Any local exchange may, by 
 agreement with any town board of supervisors, collect the 
 long-distance tolls directly from the users.  No such town shall 
 be subjected to or liable for any gross earnings or other tax by 
 reason of moneys collected or property owned by it for such 
 township telephone system.  In case of the failure on the part 
 of any user to pay such charges or tolls in the manner so 
 provided, the town board may institute an action at law to 
 collect such charges or tolls in arrears, and may also 
 discontinue telephone service to such user, until all charges 
 and tolls in arrears, the court costs, if any, taxed and allowed 
 in an action to collect such arrears, and the reasonable cost of 
 disconnecting the telephone from the general service, and 
 reconnecting the same shall have been paid.  

    HIST: (5315) 1921 c 439 s 4 

     237.37 Bonds to construct.  

    For the purpose of constructing, acquiring, operating, or 
 maintaining a township telephone system or local exchange, as in 
 sections 237.33 to 237.40 provided, any organized town is hereby 
 authorized to issue and sell its bonds in the same manner, under 
 the same procedure, and within the same limitations as provided 
 by law for the issuance and sale of town road and bridge bonds; 
 and the board of supervisors and their successors are hereby 
 authorized to levy and in due form certify to the auditor of the 
 county in which such town is situated, a tax upon the taxable 
 property of the town to provide for the payment of installments 
 of principal and interest as they mature, in the manner provided 
 in the case of town road and bridge bonds.  

    HIST: (5316) 1921 c 439 s 5 

     237.38 Local exchange permits connection.  

    When public convenience requires the same, every local 
 telephone exchange shall for a reasonable compensation permit a 
 physical connection or connections to be made and telephone 
 service to be furnished between such local telephone exchange 
 system and township telephone system.  In case of failure of the 
 local telephone exchange to allow or agree upon such physical 
 connection or connections, or the terms and conditions upon 
 which the same shall be made, application may be made to the 
 department for an order requiring such connection, and fixing 
 the compensation, terms, and conditions thereof; and if after 
 investigation and hearing the department shall find that such 
 physical connections will not result in irreparable injury to 
 such telephone properties, it shall by order direct such 
 connections to be made and prescribe reasonable conditions and 
 compensation therefor and for the joint use thereof, and by whom 
 the expense of making and maintaining such connection or 
 connections shall be paid.  When application is made to the 
 department requesting physical connection, it shall be presumed 
 that such connection is necessary and that the public 
 convenience will be promoted thereby, and the burden of 
 overcoming such presumption shall be upon the party resisting 
 such application.  

    HIST: (5317) 1921 c 439 s 6; 1971 c 25 s 67 

     237.39 Acquiring or selling telephone system. 

    When, under the provisions of sections 237.33 to 237.40, a 
 township telephone system is established in any township in 
 which any of the inhabitants of the town are already provided 
 with telephone service furnished by any other telephone company 
 or person, the town shall, when so requested by the telephone 
 company or person, acquire from the telephone company all 
 telephone equipment used by the telephone company or person in 
 furnishing telephone service to the inhabitants of the town 
 exclusively.  For the purpose of determining the purchase price 
 of the equipment, application shall be made to the department 
 which shall determine the just compensation which the owner of 
 the telephone equipment is entitled to receive for it from the 
 town.  Before deciding upon the compensation, the department 
 shall, at a public meeting, which may be adjourned from time to 
 time, hear all interested persons of the question involved.  The 
 department shall by order fix the compensation and furnish a 
 copy of its order to the town, and to the telephone company or 
 person concerned.  An appeal may be taken to the district court 
 of the county in which the town is situated from that part of 
 the order fixing the compensation to be paid, within 30 days, by 
 either party.  The appeal shall be tried in the same manner as 
 other appeals hereunder.  If no appeal is taken, the order of 
 the department shall become final at the end of 30 days.  

    When, under the provisions of sections 237.33 to 237.40 a 
 township telephone system has been established in any town, and 
 it has been determined by the board of supervisors of the town 
 to be for the best interest of public service and all persons 
 concerned, to sell and transfer the township telephone system to 
 any telephone company or person giving service organized for 
 that purpose and qualified to purchase the system and operate 
 it, the board of supervisors may sell, transfer, and convey the 
 township telephone system upon such reasonable price and terms 
 as it may determine; provided, that there shall be presented to 
 the board of supervisors by a petition signed by at least 25 
 percent of the freeholders of the town asking for the sale.  If 
 the sale and agreed sale price are approved at an annual or 
 special town meeting, it being stated in the notice of the 
 annual and special meeting that the proposition will be 
 considered at it, by 66 percent of the legal voters attending 
 the meeting.  

    If any township telephone lines are sold under the 
 provisions of sections 237.33 to 237.40, and the town has 
 previously issued bonds for their construction, and any part of 
 the bonds are then outstanding and unpaid, the entire 
 consideration received from the sale, or such part as may be 
 necessary, shall be held and applied only for the payment and 
 retirement of the bonds.  

    HIST: (5318) 1921 c 439 s 7; 1929 c 150 s 1; 1971 c 25 s 67; 
 1983 c 247 s 102 

     237.40 Management.  

    The board of supervisors of any such town is hereby vested 
 with all necessary authority to manage, maintain, and operate 
 any township telephone system constructed under the provisions 
 of sections 237.33 to 237.40; and, to that end, may, among other 
 things, contract for the connection of such town lines with 
 exchanges owned by others for switching, lease the system for a 
 reasonable compensation, local exchange and toll connections, 
 hire and discharge such employees as may be necessary to operate 
 and maintain such township system, establish rules and 
 regulations; and, subject to the approval of the department, 
 establish and from time to time, change rates and charges 
 covering the service furnished the users.  

    HIST: (5319) 1921 c 439 s 8; 1929 c 150 s 2; 1971 c 25 s 67 

  237.41 Repealed, 1987 c 340 s 25 

  237.42 Repealed, 1987 c 340 s 25 

  237.43 Repealed, 1987 c 340 s 25 

     237.44 Telegraph line, liability.  

    If any person or corporation owning or operating a 
 telegraph line wholly or partly within the state shall fail to 
 transmit any message within a reasonable time, or to exercise 
 due diligence to that end, after its reception, or shall fail to 
 deliver any message to the party to whom it is addressed within 
 a reasonable time after its arrival at the place of destination, 
 the person or corporation shall be liable in a civil action at 
 the suit of the party injured for all damages sustained by 
 reason of such neglect or omission.  The company delivering the 
 message shall state plainly thereon the exact time when it was 
 received at the original point for transmission. 

    HIST: (7548) RL s 2931; 1986 c 444 

     237.45 Telephone and telegraph lines constructed.  

    Natural persons, copartnerships, and associations may 
 construct, maintain, and operate telephone and telegraph lines, 
 and shall have and possess the same rights, powers, and 
 privileges with reference thereto as corporations formed for 
 such purpose.  

    HIST: (7549) RL s 2932 

     237.46 Gross misdemeanor violation.  

    Any telephone company and, if it be a corporation, the 
 officers thereof, violating any provisions of sections 237.01 to 
 237.27, shall be guilty of a gross misdemeanor.  

    HIST: (5310) 1915 c 152 s 24; 1919 c 183 s 6 

     237.461 Enforcement. 

    Subdivision 1.    Actions.  This chapter and rules and 
 orders of the commission adopted under this chapter may be 
 enforced by any one or combination of:  criminal prosecution, 
 action to recover civil penalties, injunction, action to compel 
 performance, and other appropriate action. 

    Subd. 2.    Civil penalty.  A person who knowingly and 
 intentionally violates a provision of this chapter or rule or 
 order of the commission adopted under this chapter shall forfeit 
 and pay to the state a penalty, in an amount to be determined by 
 the court, of at least $100 and not more than $5,000 for each 
 day of each violation.  The civil penalties provided for in this 
 section may be recovered by a civil action brought by the 
 attorney general in the name of the state.  Amounts recovered 
 under this section must be paid into the state treasury. 

    HIST: 1990 c 598 s 2; 1995 c 156 s 6 

*   NOTE:  The amendment to subdivision 2 by Laws 1995, chapter 
*156, section 6, expires January 1, 2006.  Laws 1995, chapter 
*156, section 25.

     237.47 Alarm transmission telephone device; rules. 

    Subdivision 1.    Permission required.  Any person 
 desiring to install or use any automatic, electrical, or 
 mechanical device or attachment to any telephone that reproduces 
 any taped or prerecorded message to report any police, fire, or 
 other emergency to any official emergency reporting telephone 
 number shall obtain permission, in writing, from the sheriff of 
 the county in which located or the police chief or fire chief of 
 the municipality into whose emergency telephone number the 
 attachment or device is connected. 

    Subd. 2.    Conditions for connection.  The sheriff, 
 police chief, or fire chief may determine the conditions, if 
 any, under which the device or attachment may be connected, 
 provided such conditions are reasonable in accordance with local 
 conditions and further provided that the device or attachment 
 complies with the rules of the Minnesota public utilities 
 commission.  

    Subd. 3.    Removal.  Whenever the sheriff, police 
 chief, or fire chief has knowledge of the use of any such 
 attachment or device not operated or maintained in accordance 
 with the provisions of this section , that official may order 
 its removal.  

    Subd. 4.    Penalty.  Violation of any of the provisions 
 of this section shall constitute a misdemeanor.  

    HIST: 1969 c 1057 s 1-4; 1980 c 614 s 123; 1985 c 248 s 70; 
 1986 c 444 

     237.49 Combined local access surcharge. 

    Each local telephone company shall collect from each 
 subscriber an amount per telephone access line representing the 
 total of the surcharges required under sections 237.52, 237.70, 
 and 403.11.  Amounts collected must be remitted to the 
 department of administration in the manner prescribed in section 
 403.11.  The department of administration shall divide the 
 amounts received proportional to the individual surcharges and 
 deposit them in the appropriate accounts.  A company or the 
 billing agent for a company shall list the surcharges as one 
 amount on a billing statement sent to a subscriber. 

    HIST: 1988 c 621 s 1; 1993 c 272 s 1 

     237.50 Definitions. 

    Subdivision 1.    Scope.  The terms used in sections 
 237.50 to 237.56 have the meanings given them in this section.  

    Subd. 2. Repealed, 1995 c 190 s 17 

    Subd. 3.    Communication impaired.  "Communication 
 impaired" means certified as deaf, severely hearing impaired, 
 hard-of-hearing, speech impaired, deaf and blind, or mobility 
 impaired if the mobility impairment significantly impedes the 
 ability to use standard customer premises equipment. 

    Subd. 4.    Communication device.  "Communication device"
 means a device that when connected to a telephone enables a 
 communication-impaired person to communicate with another person 
 utilizing the telephone system.  A "communication device" 
 includes a ring signaler, an amplification device, a telephone 
 device for the deaf, a Brailling device for use with a 
 telephone, and any other device the department of human services 
 deems necessary. 

    Subd. 4a.    Deaf.  "Deaf" means a hearing impairment of 
 such severity that the individual must depend primarily upon 
 visual communication such as writing, lip reading, manual 
 communication, and gestures. 

    Subd. 5.    Exchange.  "Exchange" means a unit area 
 established and described by the tariff of a telephone company 
 for the administration of telephone service in a specified 
 geographical area, usually embracing a city, town, or village 
 and its environs, and served by one or more central offices, 
 together with associated facilities used in providing service 
 within that area. 

    Subd. 6.    Fund.  "Fund" means the telecommunication 
 access for communication-impaired persons fund established in 
 section 237.52. 

    Subd. 6a.    Hard-of-hearing.  "Hard-of-hearing" means a 
 hearing impairment resulting in a functional loss, but not to 
 the extent that the individual must depend primarily upon visual 
 communication. 

    Subd. 7.    Interexchange service.  "Interexchange 
 service" means telephone service between points in two or more 
 exchanges. 

    Subd. 8.    Inter-LATA interexchange service.  
 "Inter-LATA interexchange service" means interexchange service 
 originating and terminating in different LATAs. 

    Subd. 9.    Local access and transport area.  "Local 
 access and transport area (LATA)" means a geographical area 
 designated by the Modification of Final Judgment in U.S. v. 
 Western Electric Co., Inc., 552 F. Supp. 131 (D.D.C. 1982), 
 including modifications in effect on the effective date of 
 sections 237.51 to 237.54. 

    Subd. 10.    Local exchange service.  "Local exchange 
 service" means telephone service between points within an 
 exchange. 

    Subd. 11.    Telecommunication relay service.  
 "Telecommunication relay service" means a central statewide 
 service through which a communication-impaired person, using a 
 communication device, may send and receive messages to and from 
 a non-communication-impaired person whose telephone is not 
 equipped with a communication device and through which a 
 non-communication-impaired person may, by using voice 
 communication, send and receive messages to and from a 
 communication-impaired person.  

    HIST: 1987 c 308 s 1,8; 1988 c 621 s 2; 1993 c 272 s 2-6,17; 
 1995 c 190 s 1 

     237.51 Board. 

    Subdivision 1.    Creation.  The department of public 
 service shall administer through interagency agreement with the 
 department of human services a program to distribute 
 communication devices to eligible communication-impaired persons 
 and contract with a local consumer group that serves 
 communication-impaired persons to create and maintain a 
 telecommunication relay service.  For purposes of sections 
 237.51 to 237.56, the department of public service and any 
 organization with which it contracts pursuant to this section or 
 section 237.54, subdivision 2, are not telephone companies or 
 telecommunications carriers as defined in section 237.01. 

    Subd. 2. Repealed, 1995 c 190 s 17 

    Subd. 3. Repealed, 1995 c 190 s 17 

    Subd. 4. Repealed, 1995 c 190 s 17 

    Subd. 5.    Department of public service duties.  In 
 addition to any duties specified elsewhere in sections 237.51 to 
 237.56, the department of public service shall: 

    (1) prepare the reports required by section 237.55; 

    (2) administer the fund created in section 237.52; and 

    (3) adopt rules under chapter 14 to implement the 
 provisions of sections 237.50 to 237.56. 

    Subd. 5a.    Department of human services duties.  (a) 
 In addition to any duties specified elsewhere in sections 237.51 
 to 237.56, the department of human services shall: 

    (1) define economic hardship, special needs, and household 
 criteria so as to determine the priority of eligible applicants 
 for initial distribution of devices and to determine 
 circumstances necessitating provision of more than one 
 communication device per household; 

    (2) establish a method to verify eligibility requirements; 

    (3) establish specifications for communication devices to 
 be purchased under section 237.53, subdivision 3; 

    (4) inform the public and specifically the community of 
 communication-impaired persons of the program; and 

    (5) notwithstanding any provision of chapters 16B and 16C, 
 develop guidelines for the purchase of some communication 
 devices from local retailers and dispensers if the department 
 determines that otherwise they will be economically harmed by 
 implementation of sections 237.50 to 237.56. 

    (b) The department may establish an advisory board to 
 advise the department in carrying out the duties specified in 
 this section and to advise the department of public service in 
 carrying out its duties under section 237.54.  If so 
 established, the advisory board must include, at a minimum, the 
 following communication-impaired persons: 

    (1) at least one member who is deaf; 

    (2) at least one member who is speech impaired; 

    (3) at least one member who is mobility impaired; and 

    (4) at least one member who is hard-of-hearing. 

    The membership terms, compensation, and removal of members 
 and the filling of membership vacancies are governed by section 
 15.059.  Advisory board meetings shall be held at the discretion 
 of the commissioner. 

    Subd. 6. Repealed, 1995 c 190 s 17 

    HIST: 1987 c 186 s 15; 1987 c 308 s 2,8; 1988 c 621 s 3; 1990 
 c 571 s 41; 1990 c 598 s 3; 1992 c 430 s 1,2; 1992 c 518 s 1; 
 1993 c 272 s 7-11,17; 1995 c 190 s 2-4; 1998 c 386 art 2 s 70 

     237.52 TACIP fund. 

    Subdivision 1.    Fund established.  A telecommunication 
 access for communication-impaired persons fund is established as 
 an account in the state treasury.  Earnings, such as interest, 
 dividends, and any other earnings arising from fund assets, must 
 be credited to the fund. 

    Subd. 2.    Assessment.  The department of public 
 service shall annually recommend to the commission an adequate 
 and appropriate surcharge and budget to implement sections 
 237.50 to 237.56.  The public utilities commission shall review 
 the budget for reasonableness and may modify the budget to the 
 extent it is unreasonable.  The commission shall annually 
 determine the funding mechanism to be used within 60 days of 
 receipt of the recommendation of the department and shall order 
 the imposition of surcharges effective on the earliest 
 practicable date.  The commission shall establish a monthly 
 charge no greater than 20 cents for each customer access line, 
 including trunk equivalents as designated by the commission 
 pursuant to section 403.11, subdivision 1. 

    Subd. 3.    Collection.  Every telephone company or 
 communications carrier that provides service capable of 
 originating a telecommunications relay call, including cellular 
 communications and other nonwire access services, in this state 
 shall collect the charges established by the commission under 
 subdivision 2 and transfer amounts collected to the commissioner 
 of administration in the same manner as provided in section 
 403.11, subdivision 1, paragraph (c).  The commissioner of 
 administration must deposit the receipts in the fund established 
 in subdivision 1. 

    Subd. 4.    Appropriation.  Money in the fund is 
 appropriated to the department of public service to implement 
 sections 237.51 to 237.56. 

    Subd. 5.    Expenditures.  Money in the fund may only be 
 used for: 

    (1) expenses of the department of public service, including 
 personnel cost, public relations, advisory board members' 
 expenses, preparation of reports, and other reasonable expenses 
 not to exceed ten percent of total program expenditures; 

    (2) reimbursing the commissioner of human services for 
 purchases made or services provided pursuant to section 237.53; 

    (3) reimbursing telephone companies for purchases made or 
 services provided under section 237.53, subdivision 5; and 

    (4) contracting for establishment and operation of the 
 telecommunication relay service required by section 237.54. 

    All costs directly associated with the establishment of the 
 program, the purchase and distribution of communication devices, 
 and the establishment and operation of the telecommunication 
 relay service are either reimbursable or directly payable from 
 the fund after authorization by the department of public 
 service.  The department of public service shall contract with 
 the message relay service operator to indemnify the local 
 exchange carriers of the relay service for any fines imposed by 
 the Federal Communications Commission related to the failure of 
 the relay service to comply with federal service standards.  
 Notwithstanding section 16A.41, the department of public service 
 may advance money to the contractor of the telecommunication 
 relay service if the contractor establishes to the department's 
 satisfaction that the advance payment is necessary for the 
 operation of the service.  The advance payment may be used only 
 for working capital reserve for the operation of the service.  
 The advance payment must be offset or repaid by the end of the 
 contract fiscal year together with interest accrued from the 
 date of payment.  

    HIST: 1987 c 308 s 3,8; 1988 c 621 s 4; 1992 c 518 s 2; 1993 c 
 272 s 12,13,17; 1995 c 190 s 5-7; 1995 c 201 s 1 

     237.53 Communication device. 

    Subdivision 1.    Application.  A person applying for a 
 communication device under this section must apply to the 
 program administrator on a form prescribed by the department of 
 human services.  

    Subd. 2.    Eligibility.  To be eligible to obtain a 
 communication device under this section, a person must be: 

    (1) able to benefit from and use the equipment for its 
 intended purpose; 

    (2) communication impaired; 

    (3) a resident of the state; 

    (4) a resident in a household that has a median income at 
 or below the applicable median household income in the state, 
 except a deaf and blind person applying for a telebraille unit 
 may reside in a household that has a median income no more than 
 150 percent of the applicable median household income in the 
 state; and 

    (5) a resident in a household that has telephone service or 
 that has made application for service and has been assigned a 
 telephone number; or a resident in a residential care facility, 
 such as a nursing home or group home where telephone service is 
 not included as part of overall service provision. 

    Subd. 3.    Distribution.  The commissioner of human 
 services shall purchase and distribute a sufficient number of 
 communication devices so that each eligible household receives 
 an appropriate device.  The commissioner of human services shall 
 distribute the devices to eligible households in each service 
 area free of charge as determined under section 237.51, 
 subdivision 5a. 

    Subd. 4.    Training; maintenance.  The commissioner of 
 human services shall maintain the communication devices until 
 the warranty period expires, and provide training, without 
 charge, to first-time users of the devices. 

    Subd. 5.    Wiring installation.  If a 
 communication-impaired person is not served by telephone service 
 and is subject to economic hardship as determined by the 
 department of human services, the telephone company providing 
 local service shall at the direction of the administrator of the 
 program install necessary outside wiring without charge to the 
 household. 

    Subd. 6.    Ownership.  All communication devices 
 purchased pursuant to subdivision 3 will become the property of 
 the state of Minnesota. 

    Subd. 7.    Standards.  The communication devices 
 distributed under this section must comply with the electronic 
 industries association standards and approved by the Federal 
 Communications Commission.  The commissioner of human services 
 must provide each eligible person a choice of several models of 
 devices, the retail value of which may not exceed $600 for a 
 communication device for the deaf, and a retail value of $7,000 
 for a telebraille device, or an amount authorized by the 
 department of human services for a telephone device for the deaf 
 with auxiliary equipment. 

    Subd. 8. Repealed, 1988 c 621 s 19 

    HIST: 1987 c 308 s 4,8; 1988 c 621 s 5-8; 1993 c 272 s 17; 
 1995 c 190 s 8-11; 1995 c 201 s 2 

     237.54 Telecommunication relay service. 

    Subdivision 1. Repealed, 1995 c 190 s 17 

    Subd. 2.    Operation.  The department of public service 
 shall contract with a local consumer organization that serves 
 communication-impaired persons for operation and maintenance of 
 the telecommunication relay system.  The department may contract 
 with other than a local consumer organization if no local 
 consumer organization is available to enter into or perform a 
 reasonable contract or the only available consumer organization 
 fails to comply with terms of a contract.  The operator of the 
 system shall keep all messages confidential, shall train 
 personnel in the unique needs of communication-impaired people, 
 and shall inform communication-impaired persons and the public 
 of the availability and use of the system.  The operator shall 
 not relay a message unless it originates or terminates through a 
 communication device for the deaf or a Brailling device for use 
 with a telephone. 

    HIST: 1987 c 308 s 5,8; 1993 c 272 s 14,17; 1995 c 190 s 12 

     237.55 Annual report on communication access. 

    The department of public service must prepare a report for 
 presentation to the commission by January 31 of each year.  Each 
 report must review the accessibility of the telephone system to 
 communication-impaired persons, review the ability of 
 non-communication-impaired persons to communicate with 
 communication-impaired persons via the telephone system, 
 describe services provided, account for money received and 
 disbursed annually for each aspect of the program to date, and 
 include predicted future operation. 

    HIST: 1987 c 308 s 6,8; 1993 c 272 s 15,17; 1995 c 190 s 13 

     237.56 Adequate service enforcement. 

    The services required to be provided under sections 237.50 
 to 237.55 may be enforced under section 237.081 upon a complaint 
 of at least two communication-impaired persons within the 
 service area of any one telephone company, provided that if only 
 one person within the service area of a company is receiving 
 service under sections 237.50 to 237.55, the commission may 
 proceed upon a complaint from that person. 

    HIST: 1987 c 308 s 7,8; 1993 c 272 s 17 

     237.57 Definitions. 

    Subdivision 1.    Scope.  The terms used in this chapter 
 have the meanings given them in this section.  

    Subd. 2.    Competitive service.  "Competitive service" 
 means a service that has been determined to be subject to 
 effective competition or emerging competition. 

    Subd. 3.    Effective competition.  "Effective 
 competition" exists when the criteria of section 237.59, 
 subdivision 5, have been satisfied for a service.  

    Subd. 4.    Emerging competition.  A service will be 
 regulated under "emerging competition" provisions when the 
 criteria of section 237.59, subdivision 5, have not been 
 satisfied, but there is a trend toward effective competition, or 
 if it is a new service offered for the first time after August 
 1, 1994, that is not integrally related to the provision of 
 adequate telephone service or access to the telephone network or 
 to the privacy, health, or safety of the company's customers, 
 whether or not it meets the criteria of section 237.59, 
 subdivision 5. 

    Subd. 5.    Local access and transport area.  "Local 
 access and transport area (LATA)" means a geographical area 
 designated by the Modification of Final Judgment in U.S. v. 
 Western Electric Co., Inc., 552 F. Supp. 131 (D.D.C. 1982). 

    Subd. 6.    Noncompetitive service.  "Noncompetitive 
 service" means a service that has not been classified as 
 competitive by the commission.  

    HIST: 1987 c 340 s 1,26; 1989 c 74 s 7,25; 1994 c 534 art 1 s 
 2 

     237.5799 Expiration of competitive service laws. 

    Sections 237.58, 237.59, 237.60, 237.61, 237.62, 237.625, 
 237.63, 237.64, 237.65, and 237.68 expire on August 1, 1999. 

    HIST: 1994 c 534 art 1 s 3; 1997 c 68 s 3 

     237.58 Applicability; regulation of noncompetitive 
  services. 

    Subdivision 1.    Applicability.  This section and 
 sections 237.59; 237.60, subdivisions 1, 2, and 5; 237.62; and 
 237.625 do not apply to a telephone company unless the company 
 notifies the commission in writing of its decision to be subject 
 to all of those sections.  The company may not revoke its 
 decision to be subject to those sections before January 1, 1999, 
 unless the company becomes subject to some other form of 
 alternative regulation. 

    Subd. 2.    Noncompetitive services; rate change 
 procedures.  Except as provided in section 237.63, a telephone 
 company may change its rates and charges for the noncompetitive 
 services by complying with section 237.075 and section 237.62.  
 The commission may also investigate matters related to the 
 provision of these services and make orders relating to the 
 services as may be appropriate under section 237.081. 

    Subd. 3.    Discontinuance of service.  A telephone 
 company may not discontinue any noncompetitive services without 
 the express approval of the commission. 

    HIST: 1987 c 340 s 2; 1989 c 74 s 8; 1994 c 534 art 1 s 4 

     237.59 Classification of competitive service; hearing. 

    Subdivision 1.    Emerging competitive service.  (a) The 
 following services provided by the telephone company are subject 
 to emerging competition unless and until reclassified as 
 noncompetitive or subject to effective competition under this 
 section: 

    (1) apartment door answering services; 

    (2) automatic call distribution; 

    (3) billing and collection services; 

    (4) call waiting, call forwarding, and three-way calling 
 services for businesses with three or more lines; 

    (5) central office-based pricing packages providing 
 switched business access lines which substitute for private 
 branch exchange systems which may or may not share intelligence 
 with customer premises equipment; 

    (6) command link-type services for network reconfiguring to 
 rearrange cross-connections between channel services; 

    (7) custom network services and special assemblies; 

    (8) digicom switchnet services for full duplex, 
 synchronous, information transport; 

    (9) direct customer access services for telephone number 
 information; 

    (10) teleconferencing services; 

    (11) inter-LATA and intra-LATA message toll service; 

    (12) inter-LATA and intra-LATA private line services; 

    (13) inter-LATA and intra-LATA wide area telephone service; 

    (14) mobile radio services; 

    (15) operator services, excluding local operator services; 

    (16) public pay telephone services, excluding charges for 
 access to the central office; 

    (17) special construction of facilities; 

    (18) systems for automatic dialing; and 

    (19) versanet-type service access line involving continuous 
 monitoring and transmission of data from customer's premises to 
 the central office. 

    (b) A service classified as subject to emerging competition 
 before June 1, 1994, retains that classification unless and 
 until it is reclassified pursuant to subdivision 3 or 10.  

    Subd. 1a.    CLASS service.  Notwithstanding the terms 
 of subdivision 1, paragraph (b), CLASS services may be 
 classified as competitive services only when so classified 
 according to subdivision 3 or 10. 

    Subd. 2.    Petition.  (a) A telephone company, or the 
 commission on its own motion, may petition to have a service of 
 that telephone company classified as subject to effective 
 competition or emerging competition.  The petition must be 
 served on the commission, the department of public service, the 
 office of the attorney general, and any other person designated 
 by the commission.  The petition must contain at least: 

    (1) a list of the known alternative providers of the 
 service available to the company's customers; and 

    (2) a description of affiliate relationships with any other 
 provider of the service in the company's market. 

    (b) At the time the company first offers a service, it 
 shall also file a petition with the commission for a 
 determination as to how the service should be classified.  In 
 the event that no interested party or the commission objects to 
 the company's proposed classification within 20 days of the 
 filing of the petition, the company's proposed classification of 
 the service is deemed approved.  If an objection is filed, the 
 commission shall determine the appropriate classification after 
 a hearing conducted pursuant to section 237.61.  In either 
 event, the company may offer the new service to its customers 
 ten days after the company files the price list and incremental 
 cost study as provided in section 237.60, subdivision 2, 
 paragraph (f). 

    (c) A new service may be classified as subject to effective 
 competition or emerging competition pursuant to the criteria set 
 forth in subdivision 5.  A new service must be regulated under 
 the emerging competition provisions if it is not integrally 
 related to the provision of adequate local service or access to 
 the telephone network or to the privacy, health, or safety of 
 the company's customers, whether or not it meets the criteria 
 set forth in subdivision 5. 

    Subd. 3.    Expedited proceeding.  An interested party 
 wishing to contest the change of classification of a service 
 must file an objection with the commission within 20 days after 
 the filing of the petition.  If no party files an objection, the 
 service must be reclassified in accordance with the petition.  
 If a petition is contested, a telephone company that is the 
 subject of a petition under subdivision 2 may request that the 
 commission determine the classification of the service through 
 an expedited proceeding under section 237.61 or a contested case 
 hearing.  If an expedited proceeding is requested, the 
 commission must provide interested persons an opportunity to 
 comment on the appropriateness of the process and the merits of 
 the petition. 

    When an expedited proceeding is requested, the commission 
 shall make a final determination within 60 days of the date on 
 which all required information required under subdivision 2 is 
 filed, unless during the 60 days the commission finds that a 
 material issue of fact is in dispute, in which case it shall 
 order that a contested case hearing be conducted to evaluate the 
 petition. 

    Subd. 4.    Contested case hearing.  If a contested case 
 hearing is held under this section, the commission shall make a 
 final determination on the petition within eight months from the 
 date the petitioning party requests a contested case hearing or 
 from the date the commission orders a contested case hearing 
 under subdivision 3.  When a contested case hearing is requested 
 in the petition or when the commission acts on its own motion, 
 this deadline may be extended for no more than 60 days by 
 agreement of all parties or by order of the commission if the 
 commission finds that the case cannot be completed within the 
 required time and that without an extension there is substantial 
 probability that the public interest will be harmed. 

    Subd. 5.    Criteria.  (a) If a proposed classification 
 is objected to pursuant to subdivision 2, paragraph (b), on the 
 basis that the service does not meet the criteria of this 
 subdivision, the commission shall consider, in determining 
 whether a service is subject to either effective competition or 
 emerging competition from available alternative service 
 providers, the following factors:  

    (1) the number and sizes of alternative providers of 
 service and affiliation to other providers; 

    (2) the extent to which services are available from 
 alternative providers in the relevant market; 

    (3) the ability of alternative providers to make 
 functionally equivalent or substitute services readily available 
 at competitive rates, terms, and conditions of service; 

    (4) the market share, the ability of the market to hold 
 prices close to cost, and other economic measures of market 
 power; and 

    (5) the necessity of the service to the well-being of the 
 customer.  

    (b) In order for the commission to find a service subject 
 to effective competition alternative services must be available 
 to over 50 percent of the company's customers for that service. 

    (c) In order for the commission to find a service subject 
 to emerging competition alternative services must be available 
 to over 20 percent of the company's customers for that service. 

    Subd. 6.    Burden of proof.  The classification of a 
 service may not be changed so as to result in lessened 
 regulation unless it is demonstrated by a preponderance of the 
 evidence that the criteria of subdivision 5 have been met.  

    Subd. 7. Repealed, 1993 c 268 s 6 

    Subd. 8.    Interim relief.  A telephone company that 
 has a petition pending before the commission under this section 
 to declare a service competitive may decrease its price for that 
 service without notice while the commission considers the 
 petition.  A company must provide an incremental cost study if 
 requested by the commission.  The commission shall suspend a 
 company's right under this subdivision to decrease rates if, 
 after an expedited hearing conducted under section 237.61, the 
 commission finds that the service is being priced below cost, or 
 that the company has within the previous 12 months charged 
 customers interim rates under this subdivision for the same 
 service, and that service was determined by the commission to be 
 noncompetitive. 

    Subd. 9.    Reporting requirements; exception.  A 
 telephone company that offers only competitive services is not 
 subject to the accounting and reporting requirements of this 
 chapter unless otherwise ordered by the commission for good 
 cause.  A telephone company that offers both competitive and 
 noncompetitive services is not subject to the reporting 
 requirements with regard to its effective competition services 
 unless otherwise ordered by the commission for good cause. 

    Subd. 10.    Regulation reinstated.  The commission, on 
 its own motion or upon complaint, shall reclassify a service as 
 noncompetitive or as subject to emerging competition and 
 reinstate, in whole or in part, rate regulation of the service, 
 if, after notice and hearing, the commission finds either: 

    (1) that the competitive market for that service, on review 
 of the criteria found in subdivision 5, has failed so that rate 
 regulation of that service is necessary to protect the interest 
 of consumers, that it has considered the alternatives to rate 
 regulation, and that the benefits of rate regulation outweigh 
 the burdens of rate regulation; or 

    (2) that unreasonable discrimination has occurred between 
 different areas of the state. 

    In any proceeding to reclassify a service the person 
 initiating the complaint has the burden of proving that the 
 existing classification is inappropriate, except the telephone 
 company providing the service has the burden of proving that the 
 classification is appropriate when the proceeding is commenced 
 by the commission on its own motion or when the complainant is 
 the department or the attorney general. 

    HIST: 1987 c 340 s 3; 1989 c 74 s 9-12; 1994 c 534 art 1 s 5-9 

     237.60 Rates; competitive service. 

    Subdivision 1.    Effective competition.  A company 
 whose service has been determined by the commission to be 
 subject to effective competition may:  

    (1) decrease the rate for that service effective without 
 notice to its customers or the commission; and 

    (2) increase the rate for that service effective upon 
 notice to its customers at least 30 days in advance of the 
 increase.  

    A company whose service is declared subject to effective 
 competition is not subject to the requirements of section 
 237.07, subdivision 1, for that service.  

    Subd. 2.    Emerging competition.  (a) A company may 
 decrease the rate for a service subject to emerging competition 
 that is listed in the price list, effective ten days after 
 filing a new price list with the commission and the department, 
 along with an incremental cost study demonstrating that the new 
 price is above incremental cost.  The commission shall prevent a 
 proposed price reduction from going into effect or prospectively 
 reinstate the original rate if the reduction has gone into 
 effect if, after receiving a complaint or on its own motion, 
 under section 237.081, the commission finds that the new rate is 
 below incremental cost or that the new rate is not just and 
 reasonable. 

    (b) A company may increase the rate for a service subject 
 to emerging competition that is listed in the price list 
 effective 30 days' after notice is given to affected customers, 
 the commission, and the department.  The notice and new price 
 list filing to the commission and the department for a rate 
 increase must include an incremental cost study demonstrating 
 that the proposed price is above incremental cost, unless a cost 
 study for the service has been filed within the past three years 
 and the company certifies that the cost study remains 
 appropriate for setting rates.  However, the commission may 
 order a new cost study upon showing that the most recent cost 
 study is inadequate.  

    An interested party may file comments on the proposed rate 
 increase within 30 days of the filing.  If no party objects to 
 the increase within that time, the rate is deemed approved.  If 
 an objection is filed, the rate increase must nonetheless be 
 deemed approved unless within 60 days of the date of the filing 
 the commission determines that the increase is potentially 
 contrary to the public interest.  In that event, the commission 
 shall, within 60 days after the date of the filing, order that 
 the rate increase is interim in nature and subject to refund.  
 If interim rates are not ordered, the rate increase is not 
 refundable.  If a rate is subject to refund, the commission, 
 after a contested case hearing or an expedited hearing under 
 section 237.61, must make a final decision regarding the 
 propriety of the rate increase within six months of the date the 
 price change was filed, except that if a contested case hearing 
 before an administrative law judge is required the commission 
 shall make a final decision within ten months of the date the 
 price change was filed.  If the commission does not do so, the 
 price change is deemed approved. 

    (c) If language describing a rate, term, or condition of 
 service in a price list is changed without substantially 
 altering the application of the price list, the change may take 
 effect upon one-day notice to the commission. 

    (d) If a term or condition of service in a price list is 
 changed in a way that results in a substantial change in the 
 application of the price list, but the price is not changed, the 
 change in the price list is effective at the same time as a 
 price decrease under paragraph (a). 

    (e) If a new pricing plan is proposed for a service that is 
 currently offered by a telephone company, the change in the 
 price list is subject to the same schedules governing a price 
 increase under paragraph (b).  For purposes of this paragraph, a 
 new pricing plan is a proposal that bundles rate elements for a 
 service, alters the definition of the rate elements for a 
 service, or includes increases for some rate elements and 
 decreases for other rate elements. 

    (f) A telephone company may offer a new service to its 
 customers ten days after it files a price list and incremental 
 cost study for the service with the department and the 
 commission. 

    (g) A telephone company may discontinue a telephone service 
 that is subject to emerging competition, as long as the 
 discontinuance is effective for that service throughout the 
 state, effective 60 days' after notice to the commission, the 
 department, and affected customers, unless the commission, 
 within 45 days of the notice, orders a hearing on it.  If the 
 commission orders a hearing, the commission shall make a final 
 determination on the discontinuance within 180 days of the date 
 that notice of the discontinuance was filed with the commission, 
 except that if a contested case hearing before an administrative 
 law judge is required the commission shall make a final decision 
 within ten months of the date the notice of discontinuance was 
 filed. 

    (h) A change in a price list not covered by paragraphs (a) 
 to (f) must be reviewed according to the schedule prescribed for 
 a price increase under paragraph (b). 

    (i) An incremental cost study required by this section, 
 section 237.62, and 237.626, must be a long-run incremental cost 
 study unless the commission has allowed the telephone company 
 required to do the study to set rates based on a variable cost 
 study.  A telephone company may include a petition to file a 
 variable cost study instead of a long-run incremental cost study 
 with its notice of price change, notice of a promotion, or its 
 filing of a new service.  The commission shall grant the 
 petition if the company demonstrates that a long-run incremental 
 cost study is burdensome in relation to its annual revenue from 
 the service involved, that the company has a low market share, 
 that the service is no longer being offered to new customers, or 
 if the company shows other good cause.  A petition must be 
 accompanied by a variable cost study.  If the petition is 
 denied, the company shall withdraw a filing made under this 
 section. 

    (j) For purposes of this section and section 237.62, (1) 
 long-run incremental cost means the change in total cost 
 associated with a change in volume of the service, expressed on 
 a per-unit basis, and (2) variable cost means the change in 
 total cost, excluding fixed costs, associated with a change in 
 volume of service, expressed on a per-unit basis. 

    Subd. 3.    Discrimination.  No telephone company shall 
 offer telecommunications service within the state upon terms or 
 rates that are unreasonably discriminatory.  No telephone 
 company shall unreasonably limit its service offerings to 
 particular geographic areas unless facilities necessary for the 
 service are not available and cannot be made available at 
 reasonable costs.  The rates of a telephone company must be the 
 same in all geographic locations of the state unless for good 
 cause the commission approves different rates.  A company that 
 offers long-distance services shall charge uniform rates and 
 charges on all long-distance routes and in all geographic areas 
 in the state where it offers the services.  However, a company 
 may offer or provide volume discounts in connection with 
 intrastate long-distance services and may pass through any 
 state, municipal, or local taxes in the specific geographic 
 areas from which the taxes originate.  Nothing in this 
 subdivision authorizes a telephone company to provide service 
 outside of its authorized service area except as provided in 
 section 237.16. 

    Subd. 4.    Cost of service.  Prices or rates charged 
 for competitive services must cover the incremental costs of 
 providing the service.  If a telephone company provides both 
 local service and long-distance services, that company shall, in 
 determining the cost of the long-distance service, include at 
 least the same level of contribution to common and joint costs 
 as is contained in the access charges to other telephone 
 companies.  The company may do so on an aggregate basis, instead 
 of on a time or mileage band basis. 

    Subd. 5.    Complaint.  Competitive services are subject 
 to the complaint procedures of section 237.081.  In a complaint 
 proceeding, the company providing the service bears the burden 
 of proving that the prices charged cover its incremental costs 
 and a reasonable contribution to the common and joint costs of 
 the company and are fair, just, and reasonable. 

    HIST: 1987 c 340 s 4; 1989 c 74 s 13,14; 1992 c 493 s 7; 1994 
 c 465 art 1 s 28; 1994 c 534 art 1 s 10 

     237.61 Expedited proceeding. 

    Notwithstanding chapter 14, the commission may conduct an 
 expedited proceeding when authorized under this chapter.  In an 
 expedited proceeding, the commission shall give prior notice to 
 interested persons and provide them with an opportunity to 
 present statements of fact and argument and to reply, either 
 orally or in writing or both.  In an expedited proceeding, the 
 pleadings must be verified, and oral statements of fact must be 
 made under oath or affirmation.  The commission shall make a 
 decision in an expedited proceeding based on the record. 

    HIST: 1987 c 340 s 5 

     237.62 General rate proceeding; joint costs; 
  noncompetitive services. 

    Subdivision 1.    Financial requirements.  (a) This 
 subdivision governs a proceeding initiated under section 237.075 
 or 237.081 to change the rates for noncompetitive services.  
 Subdivision 1a governs a proceeding under section 237.075 or 
 237.081 to change the rates for noncompetitive services and for 
 services subject to emerging competition.  The company shall 
 elect that rate changes be made in accordance with either this 
 subdivision or subdivision 1a, and that election is binding on 
 the commission in all respects.  

    (b) A company electing to use this subdivision may 
 demonstrate the revenue requirement for its noncompetitive 
 services by providing: 

    (1) revenues, expenses, and embedded investments directly 
 related to the provision of the noncompetitive services; 

    (2) a reasonable portion of the net income generated 
 jointly or arising from jointly competitive and noncompetitive 
 services, and net income received by a telephone company as a 
 result of the sale of telephone number listings, charges and 
 advertising for use in white pages, yellow pages, other 
 directory and other related services, must be treated as arising 
 jointly from competitive and noncompetitive services; and 

    (3) a reasonable portion of the company's total joint and 
 common costs to be attributable to the provision of the 
 noncompetitive services. 

    (c) For purposes of this subdivision, when a telephone 
 company uses an investment to provide competitive services to 
 end-user customers and another company provides a competing 
 service that requires, in part, the use of a similar investment 
 to provide the telephone company's noncompetitive services or 
 service elements, the telephone company shall treat both 
 investments and related costs as though they are providing 
 noncompetitive services and shall attribute revenues to the 
 noncompetitive category using the rates for the noncompetitive 
 service or service elements multiplied by the appropriate 
 current volumes for the telephone company's competitive service 
 instead of determining the investment, associated expenses, and 
 common and joint costs under paragraph (b), clauses (1) and (3) 
 to determine the revenue requirement for the noncompetitive 
 category. 

    (d) A telephone company that receives annual revenues from 
 Minnesota intrastate services of less than $100,000,000 may 
 demonstrate the revenue requirement for its noncompetitive 
 services by removing from the telephone company's total 
 revenues, expenses, and embedded investments the revenues, 
 expenses, and embedded investments of: 

    (1) interstate services, determined using: 

    (i) the specific jurisdictional separations procedures 
 adopted by the Federal Communications Commission, if the 
 telephone company is an actual cost company for interstate 
 services; or 

    (ii) applicable jurisdictional separations principles, if 
 the telephone company is an average schedule company for 
 interstate services; and 

    (2) competitive intrastate services, determined as follows: 

    (i) revenues must be directly assigned based on the related 
 services; 

    (ii) revenues from services with both competitive and 
 noncompetitive elements must be assigned first to noncompetitive 
 elements based on tariffs, with the remainder assigned to 
 competitive elements; 

    (iii) expenses must be directly assigned to either 
 competitive or noncompetitive services when possible, based on 
 the origin of those expenses; 

    (iv) joint expenses, which are those that cannot be 
 directly assigned to any single competitive or noncompetitive 
 service, must be allocated using a cost causal methodology in 
 accordance with the following hierarchy: 

    (A) whenever practicable, the allocation of expenses must 
 be based on a measurable assignment method; then 

    (B) other expenses, to the extent practicable, must be 
 allocated by employing surrogate measures; and then 

    (C) any remaining joint expenses must be allocated to 
 competitive services based on the ratio of related direct and 
 joint expenses assigned to the competitive services to total 
 related direct and joint expenses; 

    (v) expenses that are common to all services must be 
 allocated based on the ratio of all direct and joint expenses of 
 competitive and noncompetitive services; and 

    (vi) embedded investments must be assigned and allocated 
 using a hierarchy comparable to the hierarchy used for the 
 assignment and allocation of expenses. 

    (e) A telephone company shall also treat the net income 
 from the sale of telephone number listings, charges, and 
 advertising for use in the white pages directory, yellow pages 
 directory, other directories, and other related services as 
 provided in paragraph (b), clause (2). 

    (f) Unless otherwise ordered by the commission, a telephone 
 company may omit the determination and removal of the revenues, 
 expenses, and embedded investments related to competitive 
 services that: 

    (1) generate, in the aggregate, annual revenues less than 
 $50,000; or 

    (2) individually generate annual revenues less than 
 one-tenth of one percent of the company's annual gross revenues 
 for the test-year period. 

 However, the telephone company shall not omit determination 
 based on clauses (1) and (2). 

    Subd. 1a.    Alternative method.  (a) A telephone 
 company electing to use this subdivision shall demonstrate the 
 combined revenue requirement for its noncompetitive services and 
 services subject to emerging competition in accordance with 
 paragraphs (b) to (d). 

    (b) The telephone company shall use the procedures 
 prescribed by subdivision 1 to allocate and remove the cost of 
 providing services that are subject to effective competition, 
 except that those procedures do not apply to central 
 office-based dial switching systems that, by January 1, 1984, 
 have been approved by the commission as obsolete and that are 
 not available to new customers. 

    (c) Except as provided in paragraph (d), a combined revenue 
 requirement for noncompetitive services and services subject to 
 emerging competition must be determined under section 237.075.  
 Once the revenue requirement has been established, the 
 commission shall determine the telephone company's rates for 
 services subject to emerging competition and noncompetitive 
 services so that the revenue requirement can be met.  The 
 telephone company shall provide an embedded direct cost and an 
 incremental cost study for each service subject to emerging 
 competition that generates annual revenues in excess of the 
 greater of one-tenth of one percent or $100,000 of the company's 
 annual gross revenues for the test-year period.  An embedded 
 direct cost is the sum of current expenses and a return of and a 
 return on the current net book investment directly incurred to 
 provide a service. 

    (d) On the date that a telephone company becomes subject to 
 this section under section 237.58, the company shall begin an 
 accounting of rate changes for services generally offered before 
 January 1, 1988, that are subject to emerging competition.  If 
 the net effect of those rate changes is a lower revenue amount 
 than would have been realized had the rates remained unchanged, 
 the combined revenue requirement established under paragraph (c) 
 must be reduced by an amount equal to the difference in 
 revenues.  The commission shall, as part of these proceedings, 
 permit the telephone company to increase the prices for services 
 subject to emerging competition to recover the revenue 
 reduction.  To determine whether a rate change has resulted in 
 lower or higher revenues from a service subject to emerging 
 competition, the rate in effect when the accounting requirement 
 prescribed by this paragraph became effective must be subtracted 
 from the rate in effect on the date the rate proceeding is 
 commenced.  For services priced on an individual basis, the 
 change in rates must be calculated by subtracting the average 
 revenue per unit for the service on the date the accounting 
 requirements of this paragraph became effective from the average 
 revenue per unit for the service in the test year used in the 
 rate case.  The difference for both individually priced and 
 nonindividually priced services must be multiplied by the number 
 of units sold in the test year used in the rate case.  A rate 
 change resulting from a pass-through of cost increases or 
 decreases, approved or reallocated by a government entity, must 
 be excluded from the revenue calculations under this paragraph. 

    Subd. 2.    Cross-subsidization.  A telephone company 
 may not subsidize its competitive services from its 
 noncompetitive services through allocations of costs, 
 cost-sharing agreements, or other means, direct or indirect.  
 When an investment is for both noncompetitive and competitive 
 services, the company shall demonstrate that its proposed 
 methods of cost recovery between competitive and noncompetitive 
 services are reasonable.  If the commission determines that the 
 methods chosen by the company are not reasonable, the commission 
 may order changes in the methods used and make necessary 
 adjustments in rates being charged to reflect the changes. 

    Subd. 3.    Additional information.  The commission may 
 require a telephone company to provide information regarding the 
 revenues, expenses, investments, and costs for all of its 
 services.  

    HIST: 1987 c 340 s 6; 1989 c 74 s 15-17; 1994 c 534 art 1 s 11 

     237.625 Incentive regulation. 

    Subdivision 1.    Incentive plan.  (a) A telephone 
 company whose general revenue requirement is determined under 
 section 237.075 may petition the commission for approval of an 
 incentive plan.  The incentive plan must apply to the 
 noncompetitive services of a company covered by section 237.62, 
 subdivision 1, and must apply to noncompetitive services and 
 services subject to emerging competition if the company has 
 chosen to be governed by section 237.62, subdivision 1a.  The 
 purpose of the plan is to provide an incentive to the company to 
 improve its operating efficiency while maintaining or improving 
 the quality of its service.  If a telephone company is able to 
 increase its earnings, the telephone company shall share the 
 increased earnings with its customers to the extent and in the 
 manner set forth in the commission-approved plan.  The 
 commission may not approve a plan that does not meet the 
 requirements of this paragraph and paragraphs (b) to (f). 

    (b) A telephone company shall share increased earnings 
 during the term of the incentive plan with its customers either 
 by giving them credits against bills or by lowering rates.  The 
 division of increased earnings between the company and the 
 customers must reflect the degree to which the company has 
 assumed a risk of earning less than its revenue requirement and 
 the degree to which the customers have assumed a risk of rate 
 increases.  Any plan approved or renewed under this section 
 after August 1, 1994, must require that the percentage of 
 increased earnings shared with customers change in relation to 
 the amount that earnings exceed the last authorized return on 
 equity for that company. 

    (c) The incentive plan must be in effect for at least two 
 years. 

    (d) The incentive plan must provide for periodic reporting 
 to the commission to document that the sharing requirements of 
 the plan are being properly implemented.  The company's rates 
 and earnings under the plan are not subject to section 237.081, 
 subdivision 2, paragraph (b), except to the extent necessary to 
 enforce the sharing provisions of the incentive plan. 

    (e) An incentive plan may not permit rate increases except 
 under other provisions in this chapter.  The plan may, however, 
 permit the direct pass-through of cost decreases and increases 
 approved or reallocated by a governmental entity, except for 
 changes in intrastate depreciation schedules. 

    (f) An incentive plan approved or renewed by the commission 
 pursuant to this section after August 1, 1994, must contain: 

    (1) specific standards for measuring the quality of 
 noncompetitive services and services subject to emerging 
 competition in all areas served by the company and including, 
 but not limited to, standards concerning installation and time 
 intervals for restoration or repair of service, trouble rates, 
 exchange access line held orders, customer satisfaction, and 
 dial tone speed; 

    (2) quality reports provisions for reporting to the 
 commission at least annually the company's performance as to the 
 quality of service standards; 

    (3) indexing provisions that index quality of service 
 improvements for local residence services to similar 
 improvements for local business services; and 

    (4) appropriate remedies, which may include incentives and 
 sanctions, that may apply to ensure substantial compliance with 
 the quality of service standards set forth in the plan. 

    Subd. 2.    Adoption of plan.  Before acting on a 
 petition for approval of an incentive plan, the commission shall 
 conduct any public meetings it may consider necessary.  The 
 commission shall require the petitioning telephone company to 
 provide notice of the proposed plan to its customers, along with 
 a summary description of the plan provisions and the dates, 
 times, and locations of public meetings scheduled by the 
 commission.  In addition to public meetings, the commission 
 shall conduct a proceeding under section 237.61 to decide 
 whether to approve the plan.  The commission shall issue 
 findings of fact and conclusions concerning the appropriateness 
 of the proposed plan and the terms and conditions of the sharing 
 of increased earnings between the company and its customers.  
 The commission may approve, reject, or modify a proposed plan, 
 but may not order that a modified plan take effect without the 
 agreement of the petitioning telephone company.  The commission 
 shall reject a plan if it has substantial reason to believe that 
 existing rates are inappropriate.  The commission shall issue 
 its decision on a plan within six months after receiving the 
 petition to approve the plan.  If the commission does not act 
 within six months, the plan is deemed withdrawn unless the 
 commission and the petitioning company agree to an extension of 
 the time for commission action. 

    HIST: 1989 c 74 s 18; 1994 c 534 art 1 s 12 

     237.626 Promotion activities. 

    A telephone company may promote the use of its services by 
 offering a waiver of part or all of a recurring or a 
 nonrecurring charge, a redemption coupon, or a premium with the 
 purchase of a service.  Section 237.09 does not apply to 
 promotions under this section, but the customer group to which 
 the promotion is available must be based on reasonable 
 distinctions among customers.  No single promotion may be 
 effective for longer than 90 days at a time.  The service being 
 promoted must have a price that is above the incremental cost of 
 the service, including amortized cost of the promotion.  A 
 promotion may take effect the day after the notice is filed with 
 the commission.  The notice must identify customers to whom the 
 promotion is available and include cost information 
 demonstrating that the revenue from the service covers 
 incremental cost, including cost of the promotion.  A telephone 
 company that offers a promotion under this section shall file a 
 report on the promotion with the commission and the department 
 within 90 days of the conclusion of the promotion. 

    HIST: 1992 c 493 s 8 

     237.63 Miscellaneous tariffs. 

    Subdivision 1.    Generally.  A telephone company whose 
 general revenue requirement is determined under section 237.075 
 may also set or change its rates for noncompetitive services 
 under this section.  

    Subd. 2.    Language change.  If language describing a 
 rate, term, or condition of service in a tariff is changed, 
 without substantially altering the application of the tariff, 
 the change may take effect upon one-day notice to the public 
 utilities commission.  

    Subd. 3.    Cost increase.  If the actual costs of 
 providing a particular service have increased since the last 
 proceeding under section 237.075, the rate for that service may 
 be increased to recover those costs.  The company requesting 
 this rate increase shall file with its request the cost data it 
 relies upon for the increase.  The department shall review the 
 request and make a recommendation to the commission regarding 
 the appropriateness of the request within 20 calendar days of 
 filing the request by the telephone company.  If the department 
 notifies the company within 15 days of the filing that 
 additional information is required, the department shall make 
 its recommendation to the commission within 20 calendar days 
 after receipt of that additional information.  If the company 
 fails to provide adequate information within 20 calendar days of 
 the department request, the department shall recommend denial of 
 the company request on the basis of failure to provide adequate 
 information.  The commission shall either approve or reject the 
 request under this subdivision within 20 calendar days of the 
 receipt of the department recommendation.  In order to qualify 
 as a change in costs, it must be a cost change related to a 
 particular service rather than a general overall increase 
 applicable to most of the company's services, and an actual 
 change in costs must have occurred rather than the discovery of 
 a change in costs as a result of conducting a new cost study.  

    Subd. 4.    Reducing rate.  A company may reduce its 
 rates for one or more services effective 20 days after filing 
 the rates with the commission.  

    Subd. 4a.    Significant change in condition of service. 
  If the terms or conditions of service in a tariff are changed 
 in a way that substantially changes the application of the 
 tariff, but the price is not changed, the change in the tariff 
 may take effect according to the schedule governing rate 
 reductions in subdivision 4. 

    Subd. 4b.    New service.  A telephone company may offer 
 a new service to its customers ten days after it files a tariff 
 with the department and the commission. 

    Subd. 4c.    Other change.  A tariff change not covered 
 by subdivisions 1 to 4b and not requiring a review of a 
 telephone company's gross revenues must be reviewed in 
 accordance with section 237.075, subdivisions 1 and 2, except 
 that the commission may order the company to provide whatever 
 notice to potentially affected customers that the commission 
 considers appropriate. 

    Subd. 5.    Burden of proof.  The burden of proof that 
 the requested rates are reasonable under this section is on the 
 telephone company providing the service.  

    Subd. 6.    Filing.  A copy of filings made under this 
 section must be served on the commission, the department, and 
 the attorney general.  

    Subd. 7.    Commission review.  Nothing in this section 
 prevents the commission from ordering that a requested change 
 not take effect, or from subsequently amending the rates either 
 through a complaint proceeding, a commission investigation, or 
 through a proceeding conducted under section 237.075.  

    HIST: 1987 c 340 s 7; 1989 c 74 s 19-22 

     237.64 Registration; bond. 

    Subdivision 1.    Registration.  A person, firm, or 
 corporation seeking to become a telephone company, as defined by 
 section 237.01, subdivision 2, and not required to be certified 
 under section 237.16, shall register with the department and the 
 commission 90 days before beginning operation in the state.  The 
 commission may review the proposed rates and services and the 
 financial conditions of the telephone company and may, under 
 section 237.081, investigate any other matter it considers 
 appropriate to protect the public interest.  A telephone company 
 that has been authorized by the commission to provide telephone 
 services in this state prior to August 1, 1987, is not required 
 to register under this subdivision.  A person, firm, or 
 corporation seeking to offer a noncompetitive service to the 
 public must obtain authority from the commission under section 
 237.16.  

    Subd. 2.    Bond.  Telephone companies that have 
 registered under subdivision 1 shall maintain a bond if the 
 company requires advance payments or deposits from its 
 customers, unless waived by the commission.  The bond must be 
 issued by a surety company admitted to do business in this state 
 in the principal sum of all deposits and advance payments to be 
 held by the company.  The department shall determine the amount 
 of the bond and may require the company to supply information to 
 determine the appropriate amount of the bond.  The bond must be 
 in favor of the state for the benefit of any customer who 
 suffers the loss of a deposit or advance payment due to 
 insolvency, cessation of business, or failure to return any 
 unused portion of the deposit or advance payment.  The bond must 
 be filed with the department. 

    HIST: 1987 c 340 s 8; 1989 c 74 s 23,24 

     237.65 Affiliated transaction. 

    Subdivision 1.    Definition.  For the purposes of this 
 section, "affiliated company" means a person, company, 
 corporation, or other entity in which the telephone company has 
 an affiliated interest as defined under section 216B.48, 
 subdivision 1.  

    Subd. 2.    Records.  Telephone companies, except 
 companies that provide only services that have been found to be 
 competitive, shall maintain records for a period of three years 
 documenting transactions in excess of $50,000 with an affiliated 
 company.  The documentation must contain: 

    (1) the name of the affiliate; 

    (2) a description of the transaction or contract; 

    (3) the dollar value of the transaction or contract; 

    (4) in the case of goods and services purchased from an 
 affiliate, any evidence of efforts made by the telephone company 
 to secure the same or functionally equivalent goods or services 
 from a nonaffiliated supplier; and 

    (5) in the case of services provided to an affiliate, any 
 evidence of the fair market value of those goods or services. 

    Subd. 3.    Commission review; burden of proof.  In a 
 proceeding for the approval of rates for noncompetitive 
 services, the burden is on the company to prove that goods or 
 services acquired from or sold to affiliates were transferred at 
 reasonable value.  The determination of reasonable value shall 
 include but not be limited to durability, quality, service, and 
 price. 

    HIST: 1987 c 340 s 9 

     237.66 Disclosure of local service options. 

    Subdivision 1.    Notice to local residential customers. 
  A telephone company, when a residential customer initially 
 requests service or requests a change of service, and annually 
 in the form of a bill insert, shall advise each residential 
 customer of the price of all service options available to that 
 customer.  The requirement of an annual notice through a bill 
 insert does not apply to long-distance service. 

    Subd. 1a.    Notice to customer; right to require prior 
 authorization.  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. 

    Subd. 1b. Repealed, 1998 c 345 s 16 

    Subd. 1c.    Timing of notice; new customer.  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.  

    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. 

    Subd. 2.    Filing; exemptions.  Copies of both the 
 written notices and information provided to customer service 
 representatives concerning the disclosure required under 
 subdivision 1 must be filed once every 12 months with the 
 commission and the department.  Independent telephone companies, 
 municipalities, and cooperative telephone associations are 
 exempt from the requirements of this subdivision unless 
 otherwise ordered by the commission.  

    Subd. 2a.    Call blocking.  A telephone company, when a 
 residential customer initially requests service, shall advise 
 each residential customer of the availability of all blocking 
 options including 900 number blocking and international 
 long-distance blocking. 

    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 1c, it shall order the company to take corrective 
 action as necessary. 

    HIST: 1987 c 340 s 10; 1994 c 449 s 1; 1996 c 340 s 2,3; 1997 
 c 68 s 4; 1998 c 345 s 6-9 

     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. 

    HIST: 1998 c 345 s 10 

     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 tariff 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. 

    HIST: 1998 c 345 s 11 

     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. 

    HIST: 1998 c 345 s 12 

     237.67 Annual legislative report. 

    Beginning January 1, 1988, the commission and the 
 department shall annually report to the legislature on the 
 implementation of Laws 1987, chapter 340, and recommend changes 
 necessary to assure high quality and affordable telephone 
 services for the residents of the state.  

    HIST: 1987 c 340 s 11,26; 1989 c 74 s 25; 1994 c 534 art 1 s 
 13 

     237.68 Private shared telecommunications service. 

    Subdivision 1.    Definition.  For the purposes of this 
 section, "private shared telecommunications services" means the 
 provision of telephone services and equipment within a user 
 group located in discrete private premises, in building 
 complexes, campuses, or high-rise buildings, by a commercial 
 shared services provider or by a user association, through 
 privately owned customer premises equipment and associated data 
 processing and information management services and includes the 
 provision of connections to the facilities of a local exchange 
 and to long-distance telephone companies.  

    Subd. 2.    Requirements.  A person who owns or operates 
 a building, property, complex, or other facility where a private 
 shared telecommunications system is operated shall establish a 
 single demarcation point for services and facilities provided by 
 the telephone company providing local exchange service in the 
 area that is mutually agreeable to the property owner or 
 operator and the telephone company.  The obligation of a 
 telephone company to provide service to a customer at a location 
 where a private shared telecommunications system is operated is 
 limited to providing telephone company service and facilities up 
 to the demarcation point established for the property where the 
 private shared telecommunications system is located. 

    Subd. 3.    Access to alternative provider.  A tenant of 
 a building, property, complex, or other facility where a private 
 shared telecommunications system is operated may establish a 
 direct connection to and receive telephone service from the 
 telephone company providing local exchange service in the area 
 where the private shared telecommunications system is located.  
 At the request of a tenant where a private shared 
 telecommunications system is operated, the owner or manager of 
 the property shall make facilities or conduit space available to 
 the tenant to allow the tenant to make separate connection to 
 and to receive telephone service directly from the telephone 
 company operating local exchange service in the area.  The 
 tenant has the choice of installing the tenant's own facilities 
 or using the existing facilities.  The facilities or conduit 
 space must be provided by the owner or operator to the tenant at 
 a reasonable rate and on reasonable terms and conditions.  It is 
 the obligation of the tenant to arrange for premises wire, 
 cable, or other equipment necessary to connect the tenant's 
 telephone equipment with the facilities of the telephone company 
 operating local exchange service at the location of the 
 demarcation point.  

    Subd. 4.    Enforcement.  If the commission finds that 
 the owner or operator of a private shared telecommunications 
 system has failed to comply with a request under this section, 
 the commission may order the owner or operator to make 
 facilities or conduit space available sufficient to allow the 
 tenant to make separate connection with the telephone company, 
 and provide the services at reasonable prices and on reasonable 
 terms and conditions.  

    Subd. 5.    Exemption.  A provider of private shared 
 telecommunications services is exempt from section 237.16 if the 
 telecommunications services are only provided to tenants or for 
 the provider's own use.  

    Subd. 6.    Service by local telephone company.  The 
 telephone company providing local exchange service shall provide 
 service to anyone located within a shared services building at 
 the demarcation point within a reasonable time upon request.  

    HIST: 1987 c 340 s 12 

     237.69 Telephone assistance plan; definitions. 

    Subdivision 1.    Scope.  The terms used in sections 
 237.69 to 237.711 have the meanings given them in this section. 

    Subd. 2.    Commission.  "Commission" means the 
 Minnesota public utilities commission. 

    Subd. 3.    Department.  "Department" means the 
 Minnesota department of public service. 

    Subd. 4.    Telephone company.  "Telephone company" has 
 the meanings given it in section 237.01, subdivisions 2 and 3, 
 that provides local exchange telephone service. 

    Subd. 5.    Access line.  "Access line" means telephone 
 company-owned facilities furnished to permit switched access to 
 the telecommunications network that extend from a central office 
 to the demarcation point on the property where the subscriber is 
 served.  The term includes access lines provided to residential 
 and business subscribers, includes centrex access lines on a 
 trunk-equivalent basis, but does not include private nonswitched 
 or wide area telephone service access lines. 

    Subd. 6.    Federal matching plan.  "Federal matching 
 plan" means any telephone assistance plan formulated by the 
 Federal Communications Commission that provides federal 
 assistance to local telephone subscribers. 

    Subd. 7.    Telephone assistance plan.  "Telephone 
 assistance plan" means the plan to be adopted by the commission 
 and to be jointly administered by the commission, the department 
 of human services, and the telephone companies, as required by 
 sections 237.69 to 237.711. 

    Subd. 8.    Income.  For purposes of sections 237.69 to 
 237.711, income has the meaning given it in section 290A.03, 
 subdivision 3. 

    Subd. 9.    Disabled.  "Disabled" has the meaning given 
 it in section 363.01, subdivision 13.  

    Subd. 10.    Fund.  "Fund" means the telephone 
 assistance fund established in section 237.701. 

    HIST: 1987 c 340 s 13; 1988 c 621 s 9-11; 1989 c 209 art 2 s 
 1; 1990 c 567 s 10 

     237.70 Development of telephone assistance plan. 

    Subdivision 1.    Commission responsibility.  The 
 commission shall develop a telephone assistance plan under this 
 section.  

    Subd. 2.    Scope.  The telephone assistance plan must 
 be statewide and apply to telephone companies that provide local 
 exchange service in Minnesota.  

    Subd. 3.    Federal matching plan.  The telephone 
 assistance plan must contain adequate provisions to enable 
 telephone companies to qualify for waiver of the federal 
 interstate access charge and to enable eligible subscribers to 
 take advantage of the federal matching plan.  

    Subd. 4. Repealed, 1988 c 621 s 19 

    Subd. 4a.    Household eligible for credit.  The 
 telephone assistance plan must provide telephone assistance 
 credit for a residential household in Minnesota that meets each 
 of the following criteria: 

    (1) has a household member who: 

    (i) subscribes to local exchange service; and 

    (ii) is either disabled or 65 years of age or older; 

    (2) whose household income is 150 percent or less of 
 federal poverty guidelines or is currently eligible for: 

    (i) aid to families with dependent children or Minnesota 
 family investment program-statewide; 

    (ii) medical assistance; 

    (iii) general assistance; 

    (iv) Minnesota supplemental aid; 

    (v) food stamps; 

    (vi) refugee cash assistance or refugee medical assistance; 

    (vii) energy assistance; or 

    (viii) supplemental security income; and 

    (3) who has been certified as eligible for telephone 
 assistance plan credits. 

    Subd. 5.    Nature and extent of credits.  The telephone 
 assistance plan may provide for telephone assistance credits to 
 eligible households up to the amounts available under the 
 federal matching plan.  However, the credits available under the 
 telephone assistance plan may not exceed: 

    (1) more than 50 percent of the local exchange rate charged 
 for the local exchange service provided to the household by that 
 household's telephone company; and 

    (2) the level of credits that can actually be funded in 
 accordance with the limitations contained in subdivision 6. 

    Subd. 6.    Funding.  The commission shall provide for 
 the funding of the telephone assistance plan by assessing a 
 uniform recurring monthly surcharge, not to exceed ten cents per 
 access line, applicable to all classes and grades of access 
 lines provided by each telephone company in the state.  

    Subd. 7.    Administration.  The telephone assistance 
 plan must be administered jointly by the commission, the 
 department of human services, and the telephone companies in 
 accordance with the following guidelines: 

    (a) The commission and the department of human services 
 shall develop an application form that must be completed by the 
 subscriber for the purpose of certifying eligibility for 
 telephone assistance plan credits to the department of human 
 services.  The application must contain the applicant's social 
 security number.  Applicants who refuse to provide a social 
 security number will be denied telephone assistance plan 
 credits.  The application form must include provisions for the 
 applicant to show the name of the applicant's telephone 
 company.  The application must also advise the applicant to 
 submit the required proof of age or disability, and income and 
 must provide examples of acceptable proof.  The application must 
 state that failure to submit proof with the application will 
 result in the applicant being found ineligible.  Each telephone 
 company shall annually mail a notice of the availability of the 
 telephone assistance plan to each residential subscriber in a 
 regular billing and shall mail the application form to customers 
 when requested.  

    The notice must state the following: 

    YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE 
 BILL IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND IF 
 YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS.  FOR MORE INFORMATION 
 OR AN APPLICATION FORM PLEASE CONTACT ......... 

    (b) The department of human services shall determine the 
 eligibility for telephone assistance plan credits at least 
 annually according to the criteria contained in subdivision 4a.  

    (c) An application may be made by the subscriber, the 
 subscriber's spouse, or a person authorized by the subscriber to 
 act on the subscriber's behalf.  On completing the application 
 certifying that the statutory criteria for eligibility are 
 satisfied, the applicant must return the application to an 
 office of the department of human services specially designated 
 to process telephone assistance plan applications.  On receiving 
 a completed application from an applicant, the department of 
 human services shall determine the applicant's eligibility or 
 ineligibility within 120 days.  If the department fails to do 
 so, it shall within three working days provide written notice to 
 the applicant's telephone company that the company shall provide 
 telephone assistance plan credits against monthly charges in the 
 earliest possible month following receipt of the written 
 notice.  The applicant must receive telephone assistance plan 
 credits until the earliest possible month following the 
 company's receipt of notice from the department that the 
 applicant is ineligible. 

    If the department of human services determines that an 
 applicant is not eligible to receive telephone assistance plan 
 credits, it shall notify the applicant within ten working days 
 of that determination. 

    Within ten working days of determining that an applicant is 
 eligible to receive telephone assistance plan credits, the 
 department of human services shall provide written notification 
 to the telephone company that serves the applicant.  The notice 
 must include the applicant's name, address, and telephone number.

    Each telephone company shall provide telephone assistance 
 plan credits against monthly charges in the earliest possible 
 month following receipt of notice from the department of human 
 services. 

    By December 31 of each year, the department of human 
 services shall redetermine eligibility of each person receiving 
 telephone assistance plan credits, as required in paragraph (b). 
 The department of human services shall submit an annual report 
 to the commission by January 15 of each year showing that the 
 department has determined the eligibility for telephone 
 assistance plan credits of each person receiving the credits or 
 explaining why the determination has not been made and showing 
 how and when the determination will be completed.  

    If the department of human services determines that a 
 current recipient of telephone assistance plan credits is not 
 eligible to receive the credits, it shall notify, in writing, 
 the recipient within ten working days and the telephone company 
 serving the recipient within 20 working days of the 
 determination.  The notice must include the recipient's name, 
 address, and telephone number. 

    Each telephone company shall remove telephone assistance 
 plan credits against monthly charges in the earliest possible 
 month following receipt of notice from the department of human 
 services. 

    Each telephone company that disconnects a subscriber 
 receiving the telephone assistance plan credit shall report the 
 disconnection to the department of human services.  The reports 
 must be submitted monthly, identifying the subscribers 
 disconnected.  Telephone companies that do not disconnect a 
 subscriber receiving the telephone assistance plan credit are 
 not required to report.  

    If the telephone assistance plan credit is not itemized on 
 the subscriber's monthly charges bill for local telephone 
 service, the telephone company must notify the subscriber of the 
 approval for the telephone assistance plan credit. 

    (d) The commission shall serve as the coordinator of the 
 telephone assistance plan and be reimbursed for its 
 administrative expenses from the surcharge revenue pool.  As the 
 coordinator, the commission shall: 

    (1) establish a uniform statewide surcharge in accordance 
 with subdivision 6; 

    (2) establish a uniform statewide level of telephone 
 assistance plan credit that each telephone company shall extend 
 to each eligible household in its service area; 

    (3) require each telephone company to account to the 
 commission on a periodic basis for surcharge revenues collected 
 by the company, expenses incurred by the company, not to include 
 expenses of collecting surcharges, and credits extended by the 
 company under the telephone assistance plan; 

    (4) require each telephone company to remit surcharge 
 revenues to the department of administration for deposit in the 
 fund; and 

    (5) remit to each telephone company from the surcharge 
 revenue pool the amount necessary to compensate the company for 
 expenses, not including expenses of collecting the surcharges, 
 and telephone assistance plan credits.  When it appears that the 
 revenue generated by the maximum surcharge permitted under 
 subdivision 6 will be inadequate to fund any particular 
 established level of telephone assistance plan credits, the 
 commission shall reduce the credits to a level that can be 
 adequately funded by the maximum surcharge.  Similarly, the 
 commission may increase the level of the telephone assistance 
 plan credit that is available or reduce the surcharge to a level 
 and for a period of time that will prevent an unreasonable 
 overcollection of surcharge revenues. 

    (e) Each telephone company shall maintain adequate records 
 of surcharge revenues, expenses, and credits related to the 
 telephone assistance plan and shall, as part of its annual 
 report or separately, provide the commission and the department 
 of public service with a financial report of its experience 
 under the telephone assistance plan for the previous year.  That 
 report must also be adequate to satisfy the reporting 
 requirements of the federal matching plan.  

    (f) The department of public service shall investigate 
 complaints against telephone companies with regard to the 
 telephone assistance plan and shall report the results of its 
 investigation to the commission.  

    HIST: 1987 c 340 s 14; 1988 c 621 s 12-15; 1989 c 282 art 5 s 
 2; 1991 c 292 art 5 s 5; 1997 c 7 art 2 s 29; 1997 c 85 art 4 s 
 6 

     237.701 Telephone assistance fund; appropriation. 

    Subdivision 1.    Fund created; authorized expenditures. 
  The telephone assistance fund is created as a separate 
 account in the state treasury to consist of amounts received by 
 the department of administration representing the surcharge 
 authorized by section 237.70, subdivision 6, and amounts earned 
 on the fund assets.  Money in the fund may be used only for: 

    (1) reimbursement to telephone companies for expenses and 
 credits allowed in section 237.70, subdivision 7, paragraph (d), 
 clause (5); 

    (2) reimbursement of the administrative expenses of the 
 department of human services to implement sections 237.69 to 
 237.71, not to exceed $314,000 annually; 

    (3) reimbursement of the administrative expenses of the 
 commission not to exceed $25,000 annually; and 

    (4) reimbursement of the statewide indirect cost of the 
 commission. 

    Subd. 2.    Appropriation.  Money in the fund is 
 appropriated to the commission to be disbursed pursuant to 
 section 237.70, subdivision 7. 

    HIST: 1988 c 621 s 16; 1989 c 282 art 5 s 3; 1992 c 513 art 5 
 s 11; 1995 c 224 s 78 

     237.71 TAP rules. 

    The commission shall adopt rules under the Administrative 
 Procedure Act necessary or appropriate to establish the 
 telephone assistance plan in accordance with this chapter so 
 that the telephone assistance plan is effective as of January 1, 
 1988, or as soon after that date as Federal Communications 
 Commission approval of the telephone assistance plan is obtained.

    HIST: 1987 c 340 s 15 

     237.711 TAP implementation rules. 

    The commission may adopt rules to implement Laws 1988, 
 chapter 621, sections 1 to 16. 

    HIST: 1988 c 621 s 18; 1997 c 7 art 5 s 20 

  237.72 Repealed, 1988 c 621 s 19 

     237.73 Obtaining service by fraud; injunction. 

    Subdivision 1.    Equitable relief.  Whenever it appears 
 that a person is engaged in an act that constitutes or will 
 constitute a violation of section 609.893, a representative of a 
 telecommunications provider or a person harmed by an alleged 
 violation of section 609.893 may begin a civil proceeding in a 
 district court to enjoin the violation and may petition the 
 court to issue an order for the discontinuance of telephone 
 service. 

    Subd. 2.    Venue.  An action under this section must be 
 brought in the county in which subject matter of the action, or 
 some part of it, is located or found, and must be commenced by 
 the filing of a complaint that must be verified by affidavit. 

    Subd. 3.    Temporary restraining order.  If it is shown 
 to the satisfaction of the court, either by verified complaint 
 or affidavit, that a person is engaged in an act that 
 constitutes a violation of section 609.893, the court shall 
 issue a temporary restraining order to abate and prevent the 
 continuance or recurrence of the act.  Notice of the complaint 
 shall be given and a hearing on the issuance of a temporary 
 restraining order shall be held under the rules of civil 
 procedure.  The court shall direct the county sheriff to seize 
 and keep until further order of the court any device that is 
 being used in violation of section 609.893.  The temporary 
 restraining order expires after ten days. 

    Subd. 4.    Permanent injunction.  The court may issue a 
 permanent injunction to restrain, abate, or prevent the 
 continuance or recurrence of the violation of section 609.893.  
 The court may grant declaratory relief, mandatory orders, or any 
 other relief it judges necessary to accomplish the purposes of 
 the injunction.  The court may keep jurisdiction of the case for 
 the purpose of enforcing its orders. 

    Subd. 5.    Discontinuance of telephone service.  If it 
 is shown to the satisfaction of the court, by affidavit, that a 
 person is engaged in an act that constitutes a violation of 
 section 609.893, the court may issue an order that shall be 
 promptly served upon the person in whose name the 
 telecommunications device is listed, requiring the party, within 
 a reasonable time to be fixed by the court but not exceeding 48 
 hours from the time of service of the petition on said party, to 
 show cause before the judge why telephone service should not 
 promptly be discontinued.  At the hearing, the burden of proof 
 is on the complainant. 

    Subd. 6.    Disconnect order.  Upon a finding by the 
 court that the telecommunications device is being used or has 
 been used in violation of section 609.893, the court shall issue 
 an order requiring the telephone company that is rendering 
 service over the device to disconnect the service.  Upon receipt 
 of the order, that shall be served upon an officer of the 
 telephone company by the sheriff of the county in which the 
 telecommunications device is installed or by a duly authorized 
 deputy, the telephone company shall proceed promptly to 
 disconnect and remove the service and discontinue all telephone 
 service until further order of the court. 

    Subd. 7.    Immunity.  No telephone company is liable 
 for any damages, penalty, or forfeiture, whether civil or 
 criminal, for an act performed in compliance with an order 
 issued by the court. 

    HIST: 1990 c 494 s 1; 1990 c 612 s 9 

     237.74 Regulation of telecommunications carrier. 

    Subdivision 1.    Filing requirements.  Every 
 telecommunications carrier shall elect and keep on file with the 
 department either a tariff or a price list for each service on 
 or before the effective date of the tariff or price, containing 
 the rules, rates, and classifications used by it in the conduct 
 of the telephone business, including limitations on liability.  
 The filings are governed by chapter 13.  The department shall 
 require each telecommunications carrier to keep open for public 
 inspection at designated offices so much of these rates, tariffs 
 or price lists, and rules as the department considers necessary 
 for public information. 

    Subd. 2.    Discrimination prohibited; practices, 
 services, rates.  No telecommunications carrier shall offer 
 telecommunications service within the state upon terms or rates 
 that are unreasonably discriminatory.  No telecommunications 
 carrier shall unreasonably limit its service offerings to 
 particular geographic areas unless facilities necessary for the 
 service are not available and cannot be made available at 
 reasonable costs.  The rates of a telecommunications carrier 
 must be the same in all geographic locations of the state unless 
 for good cause the commission approves different rates.  A 
 company that offers long-distance services shall charge uniform 
 rates and charges on all long-distance routes and in all 
 geographic areas in the state where it offers the services.  
 However, a carrier may offer or provide volume or term discounts 
 or may offer or provide unique pricing to certain customers or 
 to certain geographic locations for special promotions, and may 
 pass through any state, municipal, or local taxes in the 
 specific geographic areas from which the taxes originate. 

    Notwithstanding any other provision of this subdivision, a 
 telecommunications carrier may furnish service free or at 
 reduced rates to its officers, agents, or employees in 
 furtherance of their employment. 

    Subd. 3.    Special pricing.  Except as prohibited by 
 this section, prices unique to a particular customer or group of 
 customers may be allowed for services when differences in the 
 cost of providing a service or a service element justify a 
 different price for a particular customer or group of 
 customers.  Individual pricing for services may be allowed when 
 a uniform price should not be required because of market 
 conditions.  Unique or individual prices for services or service 
 elements in effect before August 1, 1993, are deemed to be 
 lawful under this section. 

    Subd. 4.    Investigation, hearing, order, appeal.  (a) 
 When the commission or the department believes that an 
 investigation of any matter relating to any telephone service 
 should for any reason be made, it may on its own motion 
 investigate the service or matter upon notice to the carrier.  
 However, telecommunications carriers are not subject to rate or 
 rate of return regulation and neither the commission nor the 
 department may investigate any matter relating to a 
 telecommunications carrier's costs, rates, or rate of return, 
 except the commission and the department may investigate whether 
 a rate is unreasonably discriminatory under subdivision 2. 

    (b) Upon a complaint made against a telecommunications 
 carrier by a telephone company, by another telecommunications 
 carrier, by the governing body of a political subdivision, or by 
 no fewer than five percent or 100, whichever is the lesser 
 number, of the subscribers or spouses of subscribers of the 
 particular telecommunications carrier, that any of the rates, 
 tolls, tariffs or price lists, charges, or schedules is in any 
 respect unjustly discriminatory, or that any service is 
 inadequate or cannot be obtained, the commission, after notice 
 to the telecommunications carrier, shall investigate the matters 
 raised by the complaint. 

    (c) If, after making an investigation under paragraph (a) 
 or (b), the commission finds that a significant factual issue 
 raised has not been resolved to its satisfaction, the commission 
 may order that a contested case hearing be conducted under 
 chapter 14 unless the complainant, the telecommunications 
 carrier, and the commission agree that an expedited hearing 
 under section 237.61 is appropriate. 

    (d) In any complaint proceeding authorized under this 
 section, telecommunications carriers shall bear the burden of 
 proof consistent with the allocation of the burden of proof to 
 telephone companies in sections 237.01 to 237.73. 

    (e) A full and complete record must be kept by the 
 commission of all proceedings before it upon any formal 
 investigation or hearing and all testimony received or offered 
 must be taken down by the stenographer appointed by the 
 commission and a transcribed copy of the record furnished to any 
 party to the investigation upon the payment of the expense of 
 furnishing the transcribed copy. 

    If the commission finds by a preponderance of the evidence 
 presented during the complaint proceeding that existing rates, 
 tolls, tariffs or price lists, charges, or schedules are 
 unjustly discriminatory, or that any service is inadequate or 
 cannot be obtained, the commission may issue its order requiring 
 termination of the discrimination or making the service adequate 
 or obtainable. 

    (f) A copy of an order issued under this section must be 
 served upon the person against whom it runs or the person's 
 attorney, and notice of the order must be given to the other 
 parties to the proceedings or their attorneys. 

    (g) Any party to a proceeding before the commission or the 
 attorney general may make and perfect an appeal from the order 
 in accordance with chapter 14. 

    If the court finds from an examination of the record that 
 the commission erroneously rejected evidence that should have 
 been admitted, it shall remand the proceedings to the commission 
 with instructions to receive the evidence rejected and any 
 rebutting evidence and to make new findings and return them to 
 the court for further review.  Then the commission, after notice 
 to the parties in interest, shall proceed to rehear the matter 
 in controversy and receive the wrongfully rejected evidence and 
 any rebutting evidence offered and make new findings, as upon 
 the original hearing, and transmit it and the new record 
 properly certified to the court of appeals, when the matter 
 shall be again considered by the court in the same manner as in 
 an original appeal. 

    (h) When an appeal is taken from any order of the 
 commission under this chapter, the commission shall, without 
 delay, have a certified transcript made of all proceedings, 
 pleadings and files, and testimony taken or offered before it 
 upon which the order was based, showing particularly what, if 
 any, evidence offered was excluded.  The transcript must be made 
 and filed with the court administrator of the district court 
 where the appeal is pending. 

    Subd. 5.    Extension of facility.  A telecommunications 
 carrier may extend its facilities into or through a statutory or 
 home rule charter city or town of this state for furnishing its 
 services, subject to the provisions of sections 237.162 and 
 237.163.  Nothing in this subdivision shall be construed to 
 allow or prohibit facilities bypass of the local exchange 
 telephone company, nor shall it be construed to prohibit the 
 commission from issuing orders concerning facilities bypass of 
 the local exchange telephone company. 

    Subd. 6.    Tariff or price list change.  (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". 

    Subd. 7.    Occasional use.  A telecommunications 
 carrier shall not be deemed to provide local exchange services 
 within the meaning of sections 237.01 and 237.035 merely because 
 of occasional use of the service by the customer for local 
 exchange service related to the provision of interexchange 
 services. 

    Subd. 8.    Uniform rules.  Telecommunications carriers 
 are subject to uniform rules pertaining to the conduct of 
 intrastate telephone services by telecommunications carriers 
 that the commission has prescribed and may prescribe, to the 
 extent the rules are not inconsistent with this section.  Rules, 
 forms, or reports required by the commission must conform as 
 nearly as practicable to the rules, forms, or reports prescribed 
 by the Federal Communications Commission for interstate business.

    Subd. 9.    Discontinuance.  If a physical connection 
 exists between a telephone exchange system operated by a 
 telephone company and the toll line or lines operated by a 
 telecommunications carrier, neither of the companies shall have 
 the connection severed or the service between the companies 
 discontinued without first obtaining an order from the 
 commission upon an application for permission to discontinue the 
 physical connection.  Upon the filing of an application for 
 discontinuance of the connection, the department shall 
 investigate and ascertain whether public convenience requires 
 the continuance of the physical connection, and if the 
 department so finds, the commission shall fix the compensation, 
 terms, and conditions of the continuance of the physical 
 connection and service between the telephone company and the 
 telecommunications carrier.  Prior commission approval is not 
 required for severing connections where multiple local exchange 
 companies are authorized to provide service.  However, the 
 commission may require the connections if it finds that the 
 connections are in the public interest. 

    Subd. 10.    Cost of examination; assessment of expenses; 
 limitation; objection.  Section 237.295 applies to 
 telecommunications carriers as it does to telephone companies. 

    Subd. 11.    Enforcement; penalties and remedies.  (a) 
 This section and rules and orders of the commission adopted or 
 issued under this section may be enforced by criminal 
 prosecution, action to recover civil penalties, injunction, 
 action to compel performance, other appropriate action, or any 
 combination of penalties and remedies. 

    (b) A person who knowingly and intentionally violates this 
 section or a rule or order of the commission adopted or issued 
 under this section shall forfeit and pay to the state a penalty, 
 in an amount to be determined by the court, of at least $100 and 
 not more than $1,000 for each day of each violation.  The civil 
 penalties provided for in this paragraph may be recovered by a 
 civil action brought by the attorney general in the name of the 
 state.  Amounts recovered under this paragraph must be paid into 
 the state treasury. 

    Subd. 12.    Certification requirement.  No 
 telecommunications carrier shall construct or operate any line, 
 plant, or system, or any extension of it, or acquire ownership 
 or control of it, either directly or indirectly, without first 
 obtaining from the commission a determination that the present 
 or future public convenience and necessity require or will 
 require the construction, operation, or acquisition, and a new 
 certificate of territorial authority.  Nothing in this 
 subdivision requires a telecommunications carrier that has been 
 certified by the commission to provide telephone service before 
 August 1, 1993, to be recertified under this subdivision.  
 Nothing in this subdivision shall be construed to allow or 
 prohibit facilities bypass of the local exchange telephone 
 company, nor shall it be construed to prohibit the commission 
 from issuing orders concerning facilities bypass of the local 
 exchange telephone company. 

    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.

    HIST: 1993 c 268 s 4; 1997 c 123 s 5; 1998 c 345 s 13,14 

     237.75 CLASS service. 

    Subdivision 1.    Definition.  For purposes of this 
 section, "CLASS" or "custom local area signaling service" means 
 a custom calling telephone service that is enabled through the 
 installation or use of Signaling System 7 or similar signaling 
 system and that includes at least the following features: 

    (1) automatic call back; 

    (2) automatic recall; 

    (3) calling number delivery, commonly known as "caller 
 identification"; 

    (4) calling number delivery blocking; 

    (5) customer originated call tracing; 

    (6) distinctive ringing/call waiting; 

    (7) selective call acceptance; 

    (8) selective call forwarding; and 

    (9) selective call rejection. 

    Subd. 2.    CLASS; terms and conditions.  By January 1, 
 1994, the commission shall determine the terms and conditions 
 under which CLASS services may be provided by telephone 
 companies in this state. 

    Subd. 3.    CLASS; capability and offering of service.  
 Each telephone company that provides local telephone service to 
 persons located in the counties of Anoka, Carver, Dakota, 
 Hennepin, Ramsey, Scott, and Washington shall obtain the 
 capability to offer CLASS services in those counties by January 
 1, 1995, unless the commission approves an extension to a date 
 certain. 

    HIST: 1993 c 268 s 5 

     237.76 Purpose. 

    A telephone company may petition the commission for 
 approval of an alternative regulation plan under sections 237.76 
 to 237.774.  The purpose of an alternative regulation plan is to 
 provide a telephone company's customers with service of a 
 quality consistent with commission rules at affordable rates, to 
 facilitate the development of telecommunication alternatives for 
 customers, and to provide, where appropriate, a regulatory 
 environment with greater flexibility than is available under 
 traditional rate-of-return regulation as reflected in other 
 provisions of this chapter. 

    HIST: 1995 c 156 s 7 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 7, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.761 Alternative regulation plan; service. 

    Subdivision 1.    Classification of services.  An 
 alternative regulation plan must contain provisions that provide 
 for classification of all telephone services as price regulated, 
 flexibly priced, or nonprice regulated consistent with 
 subdivisions 2 to 5. 

    Subd. 2.    Price-regulated service; definition.  For 
 purposes of this section, the term "price-regulated service" 
 includes only those services that are: 

    (1) essential for providing local telephone service and 
 access to the local telephone network; 

    (2) integrally related to privacy, health, and safety of 
 the company's customers; and 

    (3) for which no reasonable alternative exists within the 
 relevant market or geographic area on reasonably comparable 
 terms and conditions. 

    Subd. 3.    Specific price-regulated services.  
 Price-regulated telephone services are the following: 

    (1) residential and business service for local calling, 
 including measured local service, two-party service, private 
 branch exchange (PBX) trunks, trunk type hunting services, 
 direct inward dialing, the network access portion of central 
 office switched exchange service, and public access lines for 
 customer-owned coin-operated telephones; 

    (2) extended area service; 

    (3) switched network access service; 

    (4) call tracing; 

    (5) calling number blocking; 

    (6) touch tone service when provided separately from basic 
 local exchange service; 

    (7) local exchange, white-page, printed directories; 

    (8) 911 emergency services; 

    (9) installation and repair of local network access; 

    (10) local operator services, excluding directory 
 assistance; and 

    (11) toll service blocking and 1-900 or 976 access blocking.

    Subd. 4.    Flexibly priced service.  (a) A service not 
 listed in subdivision 3 or not otherwise determined to be price 
 regulated under subdivision 6 or 7 or nonprice regulated must be 
 classified as a flexibly priced service. 

    (b) Flexibly priced services are regulated consistent with 
 section 237.60, subdivision 2, except that: 

    (1) rate decreases may be effective immediately upon filing 
 and upon notice to affected customers; and 

    (2) rate increases may be effective 20 days after filing 
 and upon notice to affected customers and are considered 
 approved if no objection is filed or raised by an interested 
 party or the commission within 20 days after the filing.  If an 
 interested party files an objection, the commission shall make 
 its determination on the proposed rate increase within 90 days 
 of the filing of the objection. 

    Subd. 5.    Non-price-regulated service.  (a) A service 
 must be classified as nonprice regulated if the commission 
 finds, based upon evidence filed by the telephone company and 
 other evidence available to the commission and consistent with 
 the company's proposed plan, that there is sufficient 
 competition to justify classification as nonprice regulated.  In 
 making that determination, the factors the commission shall 
 consider include: 

    (1) the number, size, and identity of competitors providing 
 the same or functionally equivalent service; 

    (2) the geographic area in which competitive service is 
 actually available to and being used by customers, to the extent 
 this information is available to the commission; 

    (3) the importance of the service to the public; and 

    (4) the effect of classification of the service on the 
 development of a competitive telecommunications market. 

    (b) Telephone companies shall file tariffs or price lists 
 for non-price-regulated services with the commission, but the 
 rates for these services are not subject to commission approval 
 or investigation except as provided in subdivision 6 and 
 sections 237.762, subdivision 6, 237.770, and 237.771. 

    Subd. 6.    Reclassification.  An alternative regulation 
 plan may contain provisions allowing for the reclassification of 
 services during the course of the plan upon a showing that the 
 service meets the criteria contained in subdivision 2, 3, 4, or 
 5, and the plan, for the requested classification. 

    Subd. 7.    New service; classification; rate.  At the 
 time the company first offers a service, it shall file a tariff 
 or price list and the proposed classification for the service 
 under the plan along with a written explanation of why the 
 proposed classification is consistent with this section.  New 
 services classified as flexibly priced or nonprice regulated may 
 be offered on one day's notice to the commission and the 
 department.  New services classified as price regulated may be 
 offered pursuant to the terms set forth in the plan.  A service 
 is not considered a new service if it consists of a repackaging 
 including bundling, unbundling, or repricing of an already 
 existing service.  If no interested party or the commission 
 objects to the company's proposed classification within 30 days 
 of the filing of the petition, the company's proposed 
 classification of the service is approved.  If an objection is 
 filed, the commission shall determine the classification of the 
 service within 90 days of the filing of the new service. 

    Subd. 8.    Investment commitment.  (a) An alternative 
 regulation plan must also include a plan outlining the company's 
 commitment to invest in telecommunications infrastructure 
 improvements in this state over a period of not less than six 
 years. 

    (b) An investment plan shall include all of the following: 

    (1) a description of the level of planned investment in 
 technological or infrastructure enhancement; 

    (2) a description of the extent to which planned investment 
 will make new telecommunications technology available to 
 customers or expand the availability of current technology; 

    (3) a description of the planned deployment of fiber-optic 
 facilities or broad-band capabilities to schools, libraries, 
 technical colleges, hospitals, colleges and universities, and 
 local governments in this state; and 

    (4) a description of planned investment and deployment of 
 higher speed telecommunications services and increased capacity 
 for voice, video, and data transmission, in both the 
 metropolitan and outstate portions of the company's service 
 territory. 

    HIST: 1995 c 156 s 8; 1997 c 223 s 9,10 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 8, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.762 Alternative regulation plan rate, price. 

    Subdivision 1.    Initial rate.  An alternative 
 regulation plan approved by the commission under this section 
 must provide that the recurring and nonrecurring rates or prices 
 that may be charged by a telephone company for price-regulated 
 services are no higher than the approved rate or prices on file 
 with the commission for those services on the date of the filing 
 of the plan.  Furthermore, no plan may in any way change the 
 terms or conditions of any access charge settlements approved by 
 the commission or exempt any company from compliance with any 
 commission access charge order issued before the filing of a 
 plan.  The plan must address implementation of additional access 
 charge reductions that may occur during that portion of the plan 
 that extends beyond expiration of commission-approved 
 settlements. 

    Subd. 2.    New service; rate.  For services offered by 
 the telephone company for the first time after August 1, 1995, 
 the rates or prices must equal or exceed the total service 
 long-run incremental cost of the service. 

    Subd. 3.    Rate change.  (a) An alternative regulation 
 plan must set forth the procedures under which the telephone 
 company may reduce the rates or prices for price-regulated 
 services below the initial rates or prices or thereafter 
 increase the rates or prices during the term of the plan.  The 
 rates or prices may not be reduced below the total service 
 long-run incremental cost of providing the service.  Except as 
 provided in paragraph (b), the rates or prices may not exceed 
 the initial rates or prices for the service determined under 
 subdivision 1 for the first three years of the plan.  After a 
 plan has been in effect for three years, price-regulated rates 
 may be changed as appropriate under a procedure set forth in an 
 approved plan.  Rates for price-regulated services may not be 
 increased unless the company has demonstrated substantial 
 compliance with the quality of service standards set forth in 
 the plan. 

    (b) An approved plan may allow changes in rates for 
 price-regulated services after two years to reflect: 

    (1) changes in state and federal taxes; 

    (2) changes in jurisdictional allocations from the Federal 
 Communications Commission, the amount of which the telephone 
 company cannot control and for which equal and opposite 
 exogenous changes are made on the federal level; and 

    (3) substantial financial impacts of investments in 
 telecommunications infrastructure which are made:  (i) if the 
 investments, for any 12-month period, exceed 20 percent of the 
 gross plant investment of the company; or (ii) are the result of 
 government mandates to construct specific telephone 
 infrastructure, the mandate applies to local telephone 
 companies, and the company would not otherwise be compensated 
 through some other manner under the plan. 

    Subd. 4.    Bundled rates.  When the rates or prices for 
 services are unbundled, the price for each basic network 
 function must be set to equal or exceed its total service 
 long-run incremental cost.  Before August 1, 1997, if the rates 
 or prices for price-regulated services are bundled, the bundled 
 rate or price may not exceed the sum of the unbundled rates or 
 prices for the individual service elements or services or the 
 total initial bundled rate or price for those service elements 
 or services. 

    Subd. 5.    Income-neutral change.  Other than as 
 authorized in this subdivision, an initial alternative 
 regulation plan must not permit income-neutral rate changes for 
 price-regulated services during the plan except as is necessary 
 to implement extended area service or any successor to that 
 service.  Any plan must provide that after the rules issued 
 pursuant to section 237.16 are adopted, rates for 
 price-regulated services may be increased, as approved by the 
 commission, to the extent necessary to carry out the purpose of 
 those rules.  However, rate increases, if any, for those 
 services must be incorporated with a universal service fund so 
 that the effective rate for the customers of those services does 
 not increase during the first three years of the plan. 

    Subd. 6.    Rate for other service.  The telephone 
 company shall file price lists with the commission for all 
 flexibly priced or non-price-regulated services.  The rate or 
 price for each flexibly priced and non-price-regulated service 
 must be equal to or exceed the total service long-run 
 incremental cost of providing that service.  In any proceeding 
 regarding the appropriateness of a rate or price for a flexibly 
 priced or non-price-regulated service, the telephone company has 
 the burden of proving that the rate or price is above the total 
 service long-run incremental cost of providing that service. 

    Subd. 7.    Packaged services.  This section does not 
 prevent a telephone company from packaging any service 
 classified as price regulated or flexibly priced pursuant to 
 section 237.761, subdivisions 2 to 4, with any other service, or 
 engaging in promotional activities concerning such services, so 
 long as:  

    (1) the company also continues to offer these 
 price-regulated and flexibly priced services as separate 
 stand-alone services at prices required by this section; and 

    (2) at the time the packaged offering is introduced, or at 
 the time the package price is subsequently changed, the packaged 
 rate or price may not exceed the sum of the unpackaged rates or 
 prices for the individual service elements or services. 

    HIST: 1995 c 156 s 9; 1997 c 223 s 11-13 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 9, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.763 Exemption from rate-of-return regulation and 
  rate investigation. 

    Except as provided in the plan and any subsequent plans, a 
 company that has an alternative regulation plan approved under 
 section 237.764, is not subject to the rate-of-return regulation 
 or earnings investigations provisions of section 237.075 or 
 237.081 during the term of the plan.  A company with an approved 
 plan is not subject to the provisions of section 237.57; 237.58; 
 237.59; 237.60, subdivisions 1, 2, 4, and 5; 237.62; 237.625; 
 237.63; or 237.65, during the term of the plan.  Except as 
 specifically provided in this section or in the approved plan, 
 the commission retains all of its authority under section 
 237.081 to investigate other matters and to issue appropriate 
 orders, and the department retains its authority under sections 
 216A.07 and 237.15 to investigate matters other than the 
 earnings of the company. 

    HIST: 1995 c 156 s 10 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 10, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.764 Plan adoption; effect. 

    Subdivision 1.    Petition, notice, hearing, and decision. 
  (a) Before acting on a petition for approval of an 
 alternative regulation plan, the commission shall conduct any 
 public meetings it may consider necessary.  

    (b) The commission shall require the petitioning telephone 
 company to provide notice of the proposed plan to its customers, 
 along with a summary description of the plan provisions and the 
 dates, times, and locations of public meetings scheduled by the 
 commission.  

    (c) The company's petition shall contain an explanation of 
 how ratepayers will benefit from the plan and a justification of 
 the appropriateness of earnings levels and rates in light of the 
 proposed plan as well as any proposed changes in rates for 
 price-regulated services for the first three years of the 
 proposed plan.  If a telephone company has completed a general 
 rate proceeding, rate investigation, or audit of its earnings by 
 the department or commission within two years of the initial 
 application for an alternative form of regulation plan, the 
 commission order or department audit report, updated for the 
 most recent calendar year, is sufficient justification of 
 earnings levels to initiate the filing of an alternative 
 regulation plan.  At the time of filing a plan, the current 
 earnings level of a telephone company with more than 1,000,000 
 access lines in Minnesota shall be deemed reasonable. 

    (d) The commission shall conduct a proceeding under section 
 237.61 to decide whether to approve the plan and shall grant 
 discovery as appropriate.  

    (e) The commission shall issue findings of fact and 
 conclusions concerning the appropriateness of the proposed 
 initial rates, where necessary, and the proposed plan, or any 
 modifications to it, but may not order that a modified plan take 
 effect without the agreement of the petitioning telephone 
 company.  The commission shall issue its decision on a plan 
 within six months after receiving the petition to approve the 
 plan unless the commission and the petitioning company agree to 
 an extension of the time for commission action.  

    (f) If a settlement is submitted to the commission, the 
 commission shall accept, reject, or modify the proposed 
 settlement within 60 days from the date it was submitted. 

    Subd. 2.    Settlement; stipulation; final order.  Upon 
 receipt of a petition for an alternative regulation plan, the 
 commission shall convene a conference including all interested 
 parties to encourage settlement or stipulation of issues.  Any 
 settlement or stipulation must be submitted to the commission, 
 which shall accept or reject the proposal in its entirety or 
 modify it.  If the commission modifies the proposal, all parties 
 have 30 days to comment on the proposed modifications, after 
 which the commission shall issue its final order.  If the final 
 order contains modifications to the proposal, each party to the 
 settlement has ten days to reject the proposed modifications, in 
 which case the matter must be decided under section 237.61.  
 After appropriate notice and hearing for all parties, the 
 commission may adopt a stipulation submitted by a substantial 
 number of, but less than all, parties. 

    Subd. 3.    Effect on incentive plan.  The approval of a 
 plan under this section automatically terminates any existing 
 incentive plan previously approved under section 237.625 upon 
 the effective date of the plan approved under this section, 
 provided, however, the company remains obligated to share 
 earnings under the terms of the incentive plan through the date 
 of the termination of that plan and also is required to complete 
 the performance of any other unexecuted commitments under the 
 incentive plan. 

    HIST: 1995 c 156 s 11; 1997 c 223 s 14 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 11, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.765 Quality of service. 

    (a) For an alternative regulation plan to be approved by 
 the commission under sections 237.76 to 237.774, the plan must 
 contain an existing service quality plan or settlement for 
 retail customers approved by the commission or if no such plan 
 or settlement has been approved, the commission shall require: 

    (1) evidence that current service quality substantially 
 complies with commission rules as to justify lessened rate 
 regulation; 

    (2) a baseline measurement of the quality of service levels 
 as achieved by the company during the previous three years, to 
 the extent the data are available, and specific statewide 
 standards for measuring the quality of price-regulated and 
 flexibly priced services provided by the company, including, but 
 not limited to (i) time intervals for installation, (ii) time 
 intervals for restoration or repair of service, (iii) trouble 
 rates, (iv) exchange access line held orders, and (v) customer 
 service answer time; 

    (3) provisions for reporting to the commission at least 
 annually the company's performance as to the quality of service 
 standards by quarter for the previous year; 

    (4) provisions that index quality of service standards for 
 local residence services to similar standards for local business 
 services; 

    (5) appropriate remedies, including penalties and 
 customer-specific adjustments or payments to compensate 
 customers for specific quality of service failures, so as to 
 ensure substantial compliance with the quality of service 
 standards set forth in the plan; and 

    (6) provisions for informing customers of their rights as 
 to quality of service and how customers can register their 
 complaints regarding service. 

    (b) Any penalties under paragraph (a), clause (5), shall be 
 returned to customers under a method set forth in the plan. 

    (c) The terms of an existing service quality plan or 
 settlement approved by the commission must be offered to extend 
 through the duration of an alternative regulation plan filed 
 under this section. 

    HIST: 1995 c 156 s 12; 1997 c 223 s 15 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 12, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.766 Plan duration. 

    An alternative regulation plan approved by the commission 
 under section 237.764 must remain in force as approved for the 
 term specified in the plan, which must be for no less than three 
 years.  Within six months prior to the termination of the plan, 
 the plan must be reviewed by the commission and, with the 
 consent of the company, revised or renewed consistent with 
 sections 237.76 to 237.774, except that the justification of 
 earnings levels in section 237.764, subdivision 1, paragraph 
 (c), if required and the provisions prohibiting rate increases 
 at the initiation of or during the first three years of a plan 
 contained in section 237.762, shall not apply to a revised or 
 renewed plan.  Any revised or renewed plan must be approved by 
 the commission and shall contain a mechanism under which a 
 telephone company may reduce the rates for price-regulated 
 services below the initial rates or prices or increase the rates 
 or prices during the term of the revised or renewed plan.  The 
 plan must specify the reports required of the telephone company 
 for review of the plan and specify that the telephone company 
 shall maintain records in sufficient detail to facilitate the 
 review. 

    HIST: 1995 c 156 s 13; 1997 c 223 s 16 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 13, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.767 Discontinuance of service. 

    Without the express approval of the commission, a telephone 
 company subject to a plan may not discontinue the provision of a 
 service or basic network function that has been classified as 
 price regulated or flexibly priced. 

    HIST: 1995 c 156 s 14 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 14, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.768 Periodic financial report. 

    In addition to the reports required under section 237.766, 
 an alternative regulation plan may require a telephone company 
 to file with the department an annual report of financial 
 matters for the previous calendar year on or before May 1 of 
 each year on report forms furnished by the department of public 
 service in the same manner as is required of other telephone 
 companies on August 1, 1995.  In addition, any company subject 
 to a plan shall file with the commission and department a copy 
 of any filings it has made to the Federal Communications 
 Commission regarding the provisions of video programming 
 provided through a video dial tone facility in Minnesota.  An 
 alternative regulation plan may require a telephone company to 
 maintain its accounts in accordance with the system of accounts 
 prescribed for the company by the commission under section 
 237.10. 

    HIST: 1995 c 156 s 15 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 15, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.769 Rules applicable. 

    Any company under a plan is subject to any rules adopted 
 under section 237.16 on the same date as those rules are 
 applicable to other companies. 

    HIST: 1995 c 156 s 16; 1997 c 223 s 17 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 16, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.770 Subsidization. 

    No telephone company shall subsidize flexibly priced or 
 non-price-regulated services from other services.  A telephone 
 service is not subsidized if the aggregate revenues for the 
 service equal or exceed the total service long-run incremental 
 costs of providing the service.  If the commission determines, 
 after a proceeding under section 237.081, that subsidization 
 exists, it shall order changes in rates to price the subsidized 
 service above total service long-run incremental cost and may 
 invoke any other remedies otherwise available under this chapter.

    HIST: 1995 c 156 s 17 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 17, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.771 Discrimination. 

    The rates of a telephone company under a plan must be the 
 same in all geographic locations of the state except for good 
 cause.  A plan may contain provisions that define good cause, 
 including consideration of the ability to respond to 
 competition.  Sections 237.09, 237.121, and 237.60, subdivision 
 3 apply to a telephone company under a plan. 

    HIST: 1995 c 156 s 18 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 18, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.772 Cost study methodology. 

    Subdivision 1.    Total service long-run incremental cost. 
  (a) For purposes of this chapter, total service long-run 
 incremental cost (TSLRIC) means the total cost to the company of 
 supplying a service, group of services, or basic network 
 function.  The term "long-run" means a period of time sufficient 
 so that all inputs are avoidable based on the total increment of 
 service, group of services, or basic network function and 
 includes the relevant costs resulting from the company's 
 decision to provide the service, group of services, or basic 
 network function, holding constant the production levels of all 
 other services, groups of services, or basic network functions 
 provided by the company.  

    (b) A telephone company is not required to prepare or file 
 TSLRIC or variable cost studies for all of its services as a 
 prerequisite to filing a plan.  However, the commission may 
 order cost studies to be prepared for specific services as a 
 condition of approval of the plan. 

    Subd. 2.    Petition for variable cost study.  To the 
 extent that this section or the commission may require a company 
 to provide a TSLRIC study, a company may submit a petition to 
 the commission for permission to submit a variable cost study 
 instead of a TSLRIC study.  The commission shall grant the 
 petition if the telephone company demonstrates: 

    (1) that a TSLRIC study is burdensome in relation to its 
 annual revenue from the service involved; 

    (2) in the case of an existing service, that the service is 
 no longer being offered to new customers; or 

    (3) if the telephone company shows other good cause. 

    HIST: 1995 c 156 s 19 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 19, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.773 Alternative regulation for small telephone 
  company. 

    Subdivision 1.    Definition.  For purposes of this 
 section, "small telephone company" means a local exchange 
 telephone company with fewer than 50,000 subscribers that has 
 made an election under subdivision 2 whether or not the company 
 is subject to sections 237.58, 237.59, 237.60, subdivisions 1, 
 2, and 5, 237.62, and 237.625. 

    Subd. 2.    Election; effect.  A local telephone company 
 with fewer than 50,000 subscribers may elect to become a small 
 telephone company by notice to the commission, in writing, of 
 its decision.  The small telephone company may not revoke its 
 election for three years after making the election.  While that 
 election remains in effect, a small telephone company is not 
 subject to the rate-of-return regulation or earnings 
 investigation provisions of section 237.075 or 237.081. 

    If, before electing under this subdivision, a small 
 telephone company has been found by the commission to have 
 significant quality of service problems in violation of 
 applicable commission rules, that company must either resolve 
 the quality of service problems or develop a plan to resolve the 
 quality of service problems in conformance with section 
 237.765.  The quality of service plan must be approved by the 
 commission in order for an election under this subdivision to be 
 effective.  The commission shall make a determination on the 
 quality of service plan within 60 days after it is submitted. 

    Subd. 3.    Local rate.  (a) Except as provided in 
 paragraph (b), a small telephone company shall not implement a 
 rate increase for any service listed in section 237.761, 
 subdivision 3, beyond the level in effect 60 days prior to an 
 election under subdivision 2, until the later of January 1, 
 1998, or two years after making an election.  However, a small 
 telephone company may implement any new service and establish 
 rates for any new service and may change rates for any other 
 service at any time subject to the requirements of section 
 237.761, subdivision 4. 

    A small company shall provide to its customers the ability 
 to block, at no extra charge, any new service which it offers, 
 provides, or bills.  This requirement shall not apply to 
 services that require affirmative subscription by the customer.  
 Nothing in this section shall prevent the commission from 
 requiring blocking or other privacy or safety protections for 
 other types of telecommunications services under section 237.081.

    (b) At any time following one year after electing under 
 subdivision 2, a small telephone company may change rates for 
 local services except switched network access services, listed 
 in section 237.761, subdivision 3, to reflect: 

    (1) changes in state and federal taxes; 

    (2) changes in jurisdictional allocations from the Federal 
 Communications Commission, the amount of which the small 
 telephone company cannot control and for which equal and 
 opposite exogenous changes are made on the federal level; 

    (3) substantial financial impacts of investments in network 
 upgrades which are made; or 

    (i) if the investment exceeds 20 percent of the gross plant 
 investment of the company; or 

    (ii) as the result of government mandates to construct 
 specific telephone infrastructure, if the mandate applies to 
 local telephone companies and the company would not otherwise be 
 compensated. 

 A small telephone company may change rates for local services 
 listed in section 237.761, subdivision 3, at any time, to 
 implement extended area service or any successor to that service 
 on an income neutral basis. 

    A small telephone company proposing an increase under this 
 subdivision shall provide 60 days' advance written notice to the 
 department and each of the company's customers including the 
 individual rates affected and the procedure necessary for the 
 customers to petition for investigation.  If the department 
 receives a petition within 45 days after the notice from five 
 percent or 500, whichever is fewer, of the customers of the 
 small telephone company, the department shall determine if the 
 petition is valid and, if so, may investigate the rate change to 
 determine if it conforms to the limitations of this subdivision. 
 The department shall report its findings to the commission, 
 which shall either adopt the report or order changes to conform 
 to this subdivision. 

    (c) On or after the later of January 1998, or two years 
 after making an election under subdivision 2, a small telephone 
 company may increase rates for local services, except switched 
 network access services, listed in section 237.761, subdivision 
 3.  

    A small telephone company proposing an increase shall 
 provide 60 days' advance written notice to its customers 
 including individual rates affected and the procedure necessary 
 for the customers to petition for investigation.  If the 
 commission receives a petition within 45 days after such notice, 
 from five percent or 500, whichever is fewer, of the customers 
 of the small telephone company, the department shall determine 
 if the petition is valid and, if so, may investigate the 
 proposed rate increase to determine if it is appropriate in 
 light of rates charged by other local exchange telephone 
 companies for comparable services, taking into account calling 
 scope, quality of service, the availability of competitive 
 alternatives, service costs, and the features available to the 
 customers.  The department shall file a report with the 
 commission which shall then approve appropriate rates for those 
 services.  Rates established by the commission under this 
 paragraph shall not be increased within one year of 
 implementation. 

    Subd. 4.    Access rate.  (a) No election by a small 
 telephone company may in any way change the terms or conditions 
 of any interexchange access charge settlements approved by the 
 commission before an election under subdivision 2. 

    (b) While any interexchange access charge settlement 
 approved by the commission remains in effect, the commission and 
 department shall enforce the agreement without further 
 investigation of interexchange access charges or earnings 
 relating to the interexchange access service.  Except as 
 specifically provided in this section, the commission retains 
 all of its authority under section 237.081 to investigate other 
 matters relating to interexchange access charges and to issue 
 appropriate orders, and the department retains its authority 
 under sections 216A.07 and 237.15 to investigate matters 
 relating to interexchange access charges. 

    Subd. 5.    Depreciation.  While an election under 
 subdivision 2 is in effect, the company shall be subject to 
 complaints by the department or others concerning its 
 depreciation rates and practices pursuant to section 237.081, 
 subdivision 1a, and shall submit to the department the 
 information required by Minnesota Rules, parts 7810.7700 and 
 7810.7800, but shall not otherwise be subject to section 237.22 
 or the certification procedures of Minnesota Rules, part 
 7810.7000.  

    HIST: 1995 c 156 s 20 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 20, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.774 Application of other laws. 

    Except as provided in sections 237.76 to 237.773, a 
 telephone company subject to a plan approved under sections 
 237.764 and 237.773, shall comply with any state or federal laws 
 governing the provision of telephone services.  Nothing 
 contained in sections 237.76 to 237.773 is intended in any way 
 to change or modify the definitions contained in section 237.01 
 or what constitutes the provision of telephone service under 
 this chapter or other laws. 

    HIST: 1995 c 156 s 21 

*   NOTE:  This section, as added by Laws 1995, chapter 156, 
*section 21, expires January 1, 2006.  Laws 1995, chapter 156, 
*section 25.

     237.775 Existing plan not affected. 

    An alternative regulation plan approved by the commission 
 prior to May 1, 1997, is not subject to the amendments in Laws 
 1997, chapter 223; provided that a plan filed, revised, or 
 renewed after that date is subject to those amendments. 

    HIST: 1997 c 223 s 18 

     237.79 Telephone company providing cable service. 

    A telephone company that provides cable television services 
 shall, with respect to provisioning of those services in 
 Minnesota, be subject to the same franchise requirements, 
 procedures, and fees, and public, educational, and government 
 access requirements as a cable communication company under 
 chapter 238. 

    HIST: 1997 c 123 s 6 

     237.80 Interexchange telephone service. 

    Subdivision 1.    Definition, findings, and purpose.  (a)
 For purposes of this section, "act" means the federal 
 Telecommunications Act of 1996, Public Law Number 104-104. 

    (b) The act establishes procedures whereby former Bell 
 Operating Companies or their affiliates may obtain Federal 
 Communications Commission authorization to provide intrastate 
 inter-LATA telecommunications services and to promote the 
 development of fair and reasonable competition. 

    (c) The purpose of this section is to promote the 
 development of fair and reasonable competition in the 
 telecommunications industry in Minnesota. 

    Subd. 2.    Consultation with FCC.  Any investigation or 
 proceeding by the Minnesota public utilities commission for the 
 purpose of verifying compliance with the competitive checklist 
 requirements of section 271(c) of the act must be completed by 
 the commission and the resulting certification provided to the 
 Federal Communications Commission within 90 days after receipt 
 of a request for verification from the Federal Communications 
 Commission. 

    HIST: 1996 c 445 s 1 

     237.81 Scope. 

    To the extent they regulate telecommunications right-of-way 
 users, sections 237.04; 237.16, subdivision 1; 237.162; 237.163; 
 and 237.74, subdivision 5, supersede sections 222.37, 300.03, 
 and 300.04, and any ordinance, regulation, or rule to the 
 contrary. 

    HIST: 1997 c 123 s 7