Parallel Minn. bills to carry out telecom reform plan of Gov. Jes...

revolving loan fund for deployment of advanced telecom services. New fund would be supported by 5% state excise tax on all retail telecom and cable services and “other multichannel video programming services” billed to Minn. customer. All retail rate changes would be presumed just and reasonable unless 5% of customers petitioned PUC for rate review. Legislation would deregulate rates for any telecom service where 75% of customers had competitive alternatives and deregulate telecom resale by hotels, motels and resorts except for requirement that providers notify customers of their rates and of any rate changes. For companies under alternative regulation plans approved before measure’s passage, deregulation provisions wouldn’t become effective until current plan expired. Bill also would require cost-based rate deaveraging for retail basic services, with resulting rates capped for next 2 years. Other provisions would streamline process for obtaining state telecom certificate but require all prepaid and competitive telecom providers to obtain certificate or license from PUC, and for prepaid providers to post bond against failure to deliver services. Bill also would allow municipalities to provide telecom services to their citizens on their own or through joint ventures where fewer than 50% of customers enjoyed actual competition. Measure would give PUC jurisdiction over telecom mergers, broad power to combat slamming and cramming, toughen minimum requirements for establishing extended local calling, and require landlords to allow access for competitive telecom and cable providers wanting to serve tenants. It would end cable franchising by municipalities, with franchises after Dec. 31, 2002, granted only by PUC, for up to 15 years. PUC could terminate franchise for cause, and would review all cable franchise transfers. Municipalities would get 5% franchise fee on gross receipts from locality. PUC could delegate franchise enforcement to municipalities. Cablers would have to give customers 30 days’ notice of changes in rates, channel positions or programing, provide emergency alert override capabilities and public access channels. Parallel bills are pending in House and Senate utilities committees.