SF4496 (Legislative Session 94 (2025-2026))
Telephone company regulation provisions modification
Related bill: HF4052
AI Generated Summary
Purpose
This bill overhauls how Minnesota regulates telephone companies and related communications services. It aims to modernize pricing, reporting, and consumer protections; expand support for schools and libraries to access discounted services; require clearer price disclosures to customers; and retire or replace many older regulatory provisions. It also adds rules around tracer requests for harassing calls, strengthens enforcement on reporting, and shifts some regulatory responsibilities to newer processes. A major theme is moving from a complex web of old statutes to a clearer, more flexible framework while preserving protections for customers and public safety.
Main Provisions and Objectives
Tracer Harassment Rules (Sec. 1)
- The Public Utilities Commission (or equivalent) must adopt rules about how telephone companies respond to tracer requests from people who say they’re getting harassing calls.
- Rules may specify when tracer requests can be denied or delayed.
- Carriers must ensure equipment and processes allow lawful interception and access to call-identifying information in line with federal law (US Code, Title 47, 1001-1010).
Records, Reporting, and Inspections (Sec. 2)
- Telephone companies must keep an office in Minnesota and file required reports.
- All financial and service records are subject to inspection by the commission and department.
- Annual balance sheets and reports must be filed by a set date; local exchange carriers must include a 911 update plan.
- If a company fails to file, the department can examine books, and the company must cover the cost of gathering data.
Universal Service Discount for Schools/Libraries (Sec. 3)
- The commission must establish intrastate service discounts for schools, school districts, and libraries to help them obtain federally supported discounts.
- Discounts should align with the federal Erate program (47 U.S.C. 254; 47 C.F.R. Part 54).
Price Transparency and Customer Notices (Sec. 4-5)
- Local residential customers must be notified of the price for all service options when they request service, when they request a change, and upon customer request.
- Optional electronic notices are allowed if the customer opts in, notices are clear and accessible, and a paper copy can be requested at any time.
Repealer and Modernization (Sec. 6)
- Many older Minnesota statutes related to telephone service regulation are repealed or replaced.
- This includes a broad set of rate, service, and regulatory provisions from prior law.
- An accompanying Appendix repeals rules governing coin-operated or public pay telephones and related requirements (the bill modernizes or removes those older provisions).
Appendix: Coin-Operated/Public Pay Telephones
- The old rules for coin-operated/public pay phones are repealed, shifting away from state-regulated frameworks for these devices.
Additional Regulatory Provisions Introduced or Updated
- New or revised pricing and rate-change processes, including 60-day notices, hearings, interim rates, and potential refunds if interim rates differ from final determinations.
- State and Tribal government pricing plans allowing discounted services for government and educational bodies, with Commission review to ensure plans are fair and not used to advantage private entities.
- Establishment Exemption from Regulation for on-site telephone service at certain establishments (e.g., hotels) with conditions (911 access, clear charges, complaint procedures).
- Intervenor reimbursement provisions to help financially support parties who participate in rate-case proceedings (up to a cap per intervention).
- Provisions related to depreciation and amortization for the purpose of rate setting.
- Special pricing provisions for noncompetitive or emerging-competition services, with safeguards to ensure nondiscriminatory pricing and proper rate design.
- Continued regulatory authority for the Commission and Department of Commerce to oversee investigations, hearings, and property valuation in telecom matters.
Significant Changes to Existing Law
Major Regulatory Framework Shift
- Large-scale repeal of many older statutes governing rates, filings, and service classifications (many 237.xx sections) and replacing them with new rules, processes, and protections.
- Introduction of updated rate-change procedures, interim-rate mechanics, and a stronger emphasis on public notice and customer protections.
Modernized Consumer Protections and Transparency
- Explicit requirement to disclose prices for all service options at key moments (initial request, changes, and upon request).
- Clear opt-in options for electronic billing/notices with guarantees of accessibility and paper-copy availability.
Expanded Universal Service Support
- Formalized intrastate discounts for schools and libraries, aligning Minnesota policy with federal Erate programs.
Government Pricing Plans
- Authorization and procedural requirements for state/Tribal government pricing plans, with Commission review to ensure public-interest benefits and non-resale use.
Reduced Regulation of Public Pay Phones
- Repeal of coin-operated payphone rules, significantly reducing state regulatory oversight in this area.
Resource and Process Adjustments
- New rules for interventional cost reimbursement, reporting burdens, and the ability for the Commission to issue interim refunds or require refunds if interim rates are too high.
Potential Impacts
For Consumers and Public Safety
- More consistent price disclosures and modernized protections on how price options are presented.
- Tracer rules could affect how harassing-call investigations are handled.
- 911 reliability is reinforced through reporting and infrastructure considerations.
For Schools, Libraries, and Government
- Access to discounted telecom services through Erate-like discounts and dedicated state/Tribal pricing plans.
- Clear processes for government bodies to obtain favorable pricing while ensuring public accountability.
For the Telecom Industry
- A shift from many older statutes to a streamlined framework with new rate-change procedures, interim-rate governance, and potential penalties or refunds.
- A move toward more transparent customer communication and standardized information sharing.
For Coin-Operated Pay Phones
- Federal/regulatory changes reduce Minnesota’s regulatory footprint on coin-operated/public pay phones, with legacy requirements repealed.
Implementation Considerations
Rulemaking and Timing
- The Commission must adopt rules for tracer requests and other new provisions.
- Rate-change procedures (notice, hearings, interim rates) involve timelines and potential refunds, requiring careful administration.
Coordination with Federal Law
- Several provisions reference federal statutes and programs (Erate, 47 U.S.C. 254; 47 C.F.R. Part 54), so compatibility with federal rules is important.
Oversight and Compliance
- Expanded reporting and audit requirements place ongoing obligations on telephone companies.
- Intervenor reimbursement provisions require clear standards to avoid overuse of public funds in rate proceedings.
Relevant Terms
- tracer harassing telephone calls
- call-identifying information
- United States Code Title 47 (1001-1010)
- Public Utilities Commission (Minnesota)
- Department of Commerce
- annual reports; balance sheet
- 911 update plan
- intrastate service discounts
- Erate program (federal)
- Universal Service Administrative Company (USAC)
- 47 U.S.C. 254; 47 C.F.R. Part 54
- price notices; service options; price transparency
- electronic billing; opt-in; paper copy
- rate change; interim rate; revenue requirement
- general rate case; suspension; public hearing
- state government pricing plan; Tribal government pricing plan
- nondiscriminatory pricing; emerging competition
- establishment exempt from regulation (hotels, etc.)
- coin-operated/public pay telephones
- filing requirements; open price lists
- depreciation and amortization
- universal service fund (local, state level)
- inter intervenor reimbursement
- 325F.692 (cost allocation for information providers)
- 911 accessibility and public safety requirements
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Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2026 | Senate | Action | Introduction and first reading | ||
| March 16, 2026 | Senate | Action | Referred to | Commerce and Consumer Protection |
Citations
[
{
"analysis": {
"added": [
"Rules governing how telephone companies respond to tracer requests, including when such requests may be denied or delayed.",
"Requirement that telecommunications carriers' equipment, facilities, and services enable authorized law enforcement agencies to conduct lawful interception and access call-identifying information in a manner consistent with 47 U.S.C. §§ 1001–1010."
],
"removed": [],
"summary": "Amends Minn. Stat. 237.069 to require the commission to adopt tracer harassing telephone call rules and to ensure intercept capabilities are available to authorized law enforcement in a manner consistent with federal law.",
"modified": [
"Explicitly ties state tracer rules to federal intercept authority."
]
},
"citation": "237.069",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Federal statute cited by Minn. Stat. 237.069 for lawful interception capabilities; used to justify state rulemaking related to tracers and intercept capabilities.",
"modified": [
"Referenced to support compliance requirements in Minn. Stat. 237.069."
]
},
"citation": "47 U.S.C. §§ 1001-1010",
"subdivision": ""
},
{
"analysis": {
"added": [
"Specific reporting to include balance sheets as of December 31 and filing by May 1 each year.",
"Requirement for reporting on the status of the 911 update plan."
],
"removed": [],
"summary": "Amends Minn. Stat. 237.11 to revis[e] reporting requirements for telephone companies, including annual reports and 911-related updates.",
"modified": [
"Recasts and enhances reporting requirements and deadlines."
]
},
"citation": "237.11",
"subdivision": ""
},
{
"analysis": {
"added": [
"Intrastate service discounts for schools and libraries established by commission order."
],
"removed": [],
"summary": "Amends Minn. Stat. 237.164 to establish intrastate universal service discounts for schools and libraries, aligned with federal programs.",
"modified": [
"Linkage to federal universal service discounts (ERate) and to federal law standards (47 U.S.C. § 254 and 47 C.F.R. Part 54)."
]
},
"citation": "237.164",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Federal statute cited as the basis for universal service discounts referenced in Minn. Stat. 237.164.",
"modified": [
"Used to anchor Minnesota discounts to federal universal service policy."
]
},
"citation": "47 U.S.C. § 254",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Federal regulation cited as the framework for ERate-like discounts referenced in Minn. Stat. 237.164.",
"modified": [
"Used to anchor Minnesota discounts to federal regulatory standards."
]
},
"citation": "47 C.F.R. Part 54",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Federal provisions governing the universal service fund, cited in context of state pricing plans.",
"modified": [
"Referenced to ensure state pricing plans align with federal universal service requirements."
]
},
"citation": "47 U.S.C. § 254(b)(1)-(5)",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Federal Telecommunications Act of 1996 citation used to contextualize universal service and related pricing plans.",
"modified": [
"Anchors state plan provisions to the federal Act."
]
},
"citation": "Public Law 104104",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Uses specific subdivisions of Minn. Stat. 120A.05 to define or reference schools for discount provisions.",
"modified": [
"Expands or clarifies eligible school types (including certain definitions) for discounted services by referencing subdivisions 9, 11, 13, and 17."
]
},
"citation": "120A.05",
"subdivision": "subd.9, subd.11, subd.13, subd.17"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Parts of the bill reference school definitions and standards tied to 120A.22, 120A.24, and 120A.41 in relation to discounts.",
"modified": [
"Clarifies that school definitions involve 120A.22–120A.41 framework."
]
},
"citation": "120A.22",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Parts of the bill reference school-related provisions tied to 120A.24 in the context of discounts.",
"modified": [
"Clarifies scope of schools for discounted telecommunications services under 120A.24."
]
},
"citation": "120A.24",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Parts of the bill reference school-related provisions tied to 120A.41 in the context of discounts.",
"modified": [
"Clarifies scope of schools for discounted telecommunications services under 120A.41."
]
},
"citation": "120A.41",
"subdivision": ""
},
{
"analysis": {
"added": [
"Basis for board-approved or member-voted changes to corporate status to become subject to rate regulation."
],
"removed": [],
"summary": "References to conduct elections to subject entities to rate regulation by the Minnesota Public Utilities Commission, per corporate governance procedures.",
"modified": [
"Integrates corporate amendments processes (sections 302A.133–302A.139) into rate-regulation elections."
]
},
"citation": "302A.133 to 302A.139",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines telecommunications services purchasing cooperative as an entity organized under 308A.210.",
"modified": [
"Incorporates 308A.210 framework for cooperatives eligible to participate in pricing and discount arrangements."
]
},
"citation": "308A.210",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Election procedures for rate regulation by cooperative or municipal entities reference 308A.135 for articles/amendments and voting.",
"modified": [
"Connects rate-regulation elections to corporate amendment procedures under 308A.135."
]
},
"citation": "308A.135",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to 16E.17 and 16E.18 regarding commissioning duties related to state government or Tribal pricing plans.",
"modified": [
"Incorporates 16E.17–16E.18 as enabling provisions for pricing plan administration."
]
},
"citation": "16E.17",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "See 16E.17 entry; related duties for pricing plan administration.",
"modified": [
"Supports implementation framework for state/Tribal pricing plans under 16E.17–16E.18."
]
},
"citation": "16E.18",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Provides framework for the universal service fund within the regulatory scheme.",
"modified": [
"Contextualizes the fund within state pricing plans and federal coordination requirements."
]
},
"citation": "237.01",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Allows automatic adjustment of tariffs or rates paid by information service providers to reflect costs related to 325F.692 requirements; related to segregation of billing charges.",
"modified": [
"Aligns tariff adjustments with information service provider costs per 325F.692."
]
},
"citation": "325F.692",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to pricing and billing for information services in relation to 325F.99.",
"modified": [
"Links pricing/billing disclosures to 325F.99 as part of the broader regulatory framework."
]
},
"citation": "325F.99",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Noted in the repealer appendix; coinoperated or public pay telephone registrations and related regulatory requirements under 237.64.",
"modified": [
"Existing coinoperated/public pay telephone registration framework remains part of the repealed scope."
]
},
"citation": "237.64",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Removed the statutory framework for coinoperated/public pay telephones."
],
"summary": "Repealed statute: COINOPERATED OR PUBLIC PAY TELEPHONES; previously allowed possession of pay phones without commission approval and set other regulatory terms.",
"modified": []
},
"citation": "237.036",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed rate/deposit provisions governing intrastate service."
],
"summary": "Repealed statute: RATES AND DEPOSITS; governed intrastate telephone service pricing.",
"modified": []
},
"citation": "237.06",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed structured discounts for schools or purchasing cooperatives under rate regulation framework."
],
"summary": "Repealed statute: RATE FOR SCHOOL OR PURCHASING COOPERATIVE; pricing for schools and cooperatives within local service areas.",
"modified": []
},
"citation": "237.065",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed state/tribal government pricing plan provisions."
],
"summary": "Repealed statute: STATE GOVERNMENT PRICING PLANS; pricing plans for state/Tribal government entities.",
"modified": []
},
"citation": "237.066",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed establishment exemption framework from regulation."
],
"summary": "Repealed statute: ESTABLISHMENT EXEMPT FROM REGULATION; exemption framework for establishments providing telephone service.",
"modified": []
},
"citation": "237.067",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed general special pricing provisions."
],
"summary": "Repealed statute: SPECIAL PRICING; allows special pricing for noncompetitive or emerging competition services.",
"modified": []
},
"citation": "237.071",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed limitation on rate changes for incumbent carriers."
],
"summary": "Repealed statute: LIMITATION ON RATE CHANGE; governance of rate change under certain historical conditions.",
"modified": []
},
"citation": "237.072",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed procedural framework for rate changes."
],
"summary": "Repealed statute: RATE CHANGE; general procedures for notice, hearings, suspension, and final determinations.",
"modified": []
},
"citation": "237.075",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed rate-for-officer exceptions from general tariffing."
],
"summary": "Repealed statute: RATE FOR SERVICE TO OFFICER; discounted/service exceptions for officers and employees.",
"modified": []
},
"citation": "237.14",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed delegation framework for investigations/hearings."
],
"summary": "Repealed statute: INVESTIGATION AND HEARING AUTHORITY; delegation provisions.",
"modified": []
},
"citation": "237.15",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed portions relating to local exchange competition and universal service fund rules."
],
"summary": "Repealed statute: LOCAL EXCHANGE COMPETITION RULES; universal service fund provisions under 237.16 Subd.9.",
"modified": []
},
"citation": "237.16",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed depreciation/amortization framework."
],
"summary": "Repealed statute: DEPRECIATION AMORTIZATION; rate setting and depreciation methods.",
"modified": []
},
"citation": "237.22",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Rebut: repealed statutory provision."
],
"summary": "Repealed statute: related to deprecated rate and service provisions referenced in 237.231.",
"modified": []
},
"citation": "237.231",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed miscellaneous provisions."
],
"summary": "Repealed statute: miscellaneous rate/regulatory provisions.",
"modified": []
},
"citation": "237.46",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed additional rate/regulatory provisions."
],
"summary": "Repealed statute: additional rate/regulatory provisions.",
"modified": []
},
"citation": "237.59",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed targeted rate-regulation subdivisions."
],
"summary": "Repealed statute: rate-regulation related subdivisions (1, 1a, 1c, 1d, 2, 2a, 3).",
"modified": []
},
"citation": "237.626",
"subdivision": ""
},
{
"analysis": {
"added": [
"Subd.4: Notice to residential customers regarding price for all service options, provided at key interaction points.",
"Subd.5: Customer notice may be provided electronically if opt-in is obtained and the customer can request a paper copy."
],
"removed": [],
"summary": "Adds notice requirements to local residential customers and allows customer notice prior to authorization for service option pricing; amendments to 237.66.",
"modified": [
"Enhances customer notification and consent mechanics in pricing."
]
},
"citation": "237.66",
"subdivision": "subd.4, subd.5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in the context of universal service fund and pricing plans; confirms public interest and coordination with federal programs.",
"modified": [
"Supports alignment of state pricing with universal service goals and federal coordination."
]
},
"citation": "237.01",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Appendix referencing repealed Minnesota Statutes 2607135; lists statutes repealed in the bill.",
"modified": [
"Documented repeals of statutes including 237.036 and related provisions."
]
},
"citation": "2607135",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Repealed coinoperated/public pay telephone regulatory framework."
],
"summary": "Repealed statute: coinoperated or public pay telephones; historic regulatory provisions.",
"modified": []
},
"citation": "237.036",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to ch. 157 (licensing under chapter 157) within establishment exemptions; part of repeals context.",
"modified": [
"Notes the establishment licensing framework referenced in repeal context."
]
},
"citation": "157",
"subdivision": ""
}
]Progress through the legislative process
In Committee