March 2010
Cable and Telecommunications Law and Policy Newsletter
In This Issue
DAMAGES TO UNDERGROUND FACILITIES
TELECOM LEGISLATIVE UPDATE
UPCOMING EVENTS
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DAMAGES TO UNDERGROUND FACILITIES
 
Since the beginning of the year, there have been several high profile news stories involving damages to underground cabling and pipeline facilities.  In January 2010, a Qwest fiber optic line was severed when a steam pipe burst, leaving parts of Northeast Minnesota without any 911 service for more than 12 hours.  On February 1, 2010, a home in St. Paul exploded when a contractor attempting to unclog a sewer line hit a natural gas line that had been mistakenly relocated to run through the home's sewer line.  On February 23, 2010, an Edina home exploded after a Qwest contractor struck a natural gas line. 
 
There are two key players responsible for facilitating construction of underground facilities and enforcing state safety standards in Minnesota.  Minnesota's Office of Pipeline Safety (OPS), a division of the Minnesota Department of Public Safety, is responsible for enforcing laws, creating and enforcing regulations governing Minnesota's excavation notice system, Gopher One Call.  Gopher One Call is not a state agency, but a non-profit corporation that operates Minnesota's single statewide excavation notification center.  All owners of underground facilities are required by state law to participate in and share the costs of operating the Gopher One Call (GOC) system.  GOC is governed by board of directors of up to 20 members.  The director of the OPS has a permanent seat on the board.  Other board members are elected by and must represent underground facility owners, excavators, and other persons eligible to participate in the GOC system.
 
If an excavator damages an underground facility, the excavator must reimburse the operator for the cost of necessary repairs.  For pipelines, the excavator must also reimburse for the cost of the product that was being carried in the pipeline and which was lost as a direct result of the damage.  Reimbursement is not required if the damage to the underground facility was caused by the sole negligence of the operator or the operator failed to comply with facility location marking requirements under state law.  Both excavators and operators who violate Minnesota's excavation notice laws are subject to maximum penalties of $1,000 per day per violation. 
 
OPS maintains a database of voluntarily submitted damage reports.  However, OPS officials state that the data provided by facility owners is inconsistently reported, particularly by owners of communications facilities.  With this caveat, Mendoza Law Office reviewed the voluntary reporting data for 2006-2009, and makes the following observations:
 
The three most common causes for damages to all types of underground facilities are:
  • Failure to hand dig
  • Mismarked or unmarked facilities
  • Locate requests not made
In 2008, the most common cause of damage to underground facilities was "failure to protect and support the facility."  No unique trends appear evident in the OPS data with respect to causes of damage to communications facilities.
 
Damage appears to occur more frequently to communications facilities than to underground facilities overall.  For nine of the past thirteen years reported, the frequency of damages to communications facilities was higher than the frequency of damage to all underground types of underground facilities.

 
MINNESOTA TELECOM LEGISLATIVE UPDATE
 
Senate File 2532/House File 2629 (Municipal ownership of phone systems)

Chief Authors:

Senate:  Tom Bakk (DFL District 6)
House:  David Dill (DFL District 6A)
 
Bill Summary: 
 
Senate Version:  The bill, as it currently stands in the Senate, would lower the threshold that must be achieved in referenda in which municipalities seek to offer telephone services.  Current law requires a 65% supermajority in a municipal referendum to authorize a municipality to own and operate a telephone exchange.  The bill would lower this threshold to require only a majority of those voting in the election to approve.  After passage by the Energy, Utilities, Technology and Communications Committee on February 18, 2010, the bill was substantially amended in the Senate State and Local Government Operations Oversight Committee to include provisions that (a) prohibit municipalities from cross-subsidizing municipal phone systems with general operating funds; (b) require municipalities to conduct a feasibility analysis prior to holding a referendum; (c) prohibit municipalities from discriminating in favor of their own systems with respect to issues such as right-of-way use; and (d) require municipalities to use competitive bidding in developing feasibility studies, and the construction or acquisition of a phone system.
 
House Version:  The House version of this bill would only lower the referendum percentage required for passage for Cook County, Minnesota.
 
Bill Status:
 
Senate:  After the amendments made by the State and Local Government Operations and Oversight Committee, the bill received its second reading in the Senate.
 
House:  After clearing the House Commerce and Labor, the chief author of the House bill, Rep. Dill, re-referred the bill from the House General Register to the House State and Local Government Operations Reform, Technology, and Elections Committee (Government Operations Committee).  The chair of the Government Operations Committee referred the bill to its Local Government division, which is where the House bill now resides.

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Senate File 2254/House File 2907 (Broadband Advisory Group)
 
Chief Authors:

Senate:  Yvonne Prettner-Solon (DFL District 7)
House:  Sheldon Johnson (DFL District 67B)
 
Bill Summary:  The bill would codify goals for broadband deployment and access established by the Minnesota Broadband Task Force in its October 30, 2009 report.  The current Senate version requires the Commissioner of Commerce to report annually to the legislative committees with primary jurisdiction over broadband policy.  The House version would also require reports from the Commerce Department, but would also allow the Commerce Commissioner to appoint an advisory group for assistance in achieving the state's broadband goals.
 
Bill Status:

Senate:  The bill has received its second reading.
House:  The bill has been placed on the House Calendar for final vote on the House floor.

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Senate File 2535/House File 2852 (Telephone company video franchise service area)
 
Chief authors:

Senate:  Scott Dibble (DFL District 60)
House:  Sheldon Johnson (DFL District 67B)
 
Bill summary:  The bill would prohibit local cable franchising authorities from requiring a telephone company to build out plant beyond its MPUC certificated service area where the municipal boundaries and telephone exchange boundaries are incongruous.
 
Bill Status:

Senate:  Placed on General Orders to pass.
House:  Passed by the House Telecommunications Regulation and Infrastructure Division.  Was not considered by the House Commerce and Labor Committee prior to the second deadline requiring passage through committee by March 19, 2010.
 
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Senate File 2616/House File 3097 (Private Shared Services)

Chief authors:

Senate:  Kathy Sheran (DFL District 23)
House:  Al Juhnke (DFL District 13B)

Bill Summary:  The bill would require landlords and other owners of multiple tenant buildings to allow competitive providers of private shared phone, video, or broadband services to access tenants within such buildings.  The bill also requires property owners to facilitate such access within their buildings.

Bill Status:

            Senate:  Bill has received second reading.
            House:  Bill has received second reading

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Senate File 2470/House File 2639 (authorizing wireless carriers to provide call location information to authorities in emergency situations)

Bill Status:

House:  Placed on House Calendar for passage.
Senate:  Has received second reading.

 
UPCOMING EVENTS
 
Wednesday, April 14, 2010 - Tony Mendoza speaks on "Digital Public Performance Rights in Sound Recordings;" MSBA Communications Law Section CLE Luncheon (Free to all MSBA Communications Law Section members).  MSBA Offices, 600 Nicollet Mall #380, Minneapolis, MN  55402.
 
 
Wednesday, June 9, 2010 - Minnesota State Bar Association Regional Communications Law Forum;  Minnesota CLE Center.