Missouri Revised Statutes

Chapter 392
Telephone and Telegraph Companies

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Telephone and telegraph corporations, by whom and how formed.

392.010. Any number of persons, not less than five, being subscribers to the stock of any contemplated telephone or magnetic telegraph company, may be formed into a corporation for the purpose of constructing, owning, operating and maintaining lines of telephone or magnetic telegraph, upon complying with the following requirements: Whenever stock to the amount of not less than twenty thousand dollars shall have been subscribed for the purpose of forming a telegraph company, or five hundred dollars for the purpose of forming a telephone company, the subscribers to such stock shall elect such number of directors, not less than three nor more than twenty-one, as they may determine, and shall severally subscribe articles of association, which shall set forth the name of the corporation, the amount of the capital stock of the company, the number of directors, the amount of each share of stock, the number and names of the subscribers to the stock of the company, and the number of shares of stock taken by each subscriber, the location of the principal office or place of business of the company, and the names of its authorized agents thereat, which shall be verified by the affidavit of at least three of the subscribers thereto, and shall pay into the state treasury fifty dollars for the first fifty thousand dollars or less of its capital stock, and the further sum of five dollars for every additional ten thousand dollars thereof.

(RSMo 1939 § 5321, A.L. 1975 S.B. 89)

Prior revisions: 1929 § 4916; 1919 § 10127; 1909 § 3321

CROSS REFERENCE:

Organization under general corporation law, 351.030

Articles, where filed--powers when incorporated.

392.020. 1. The original articles of association shall be recorded in the office of the recorder of deeds of the county in which the corporation is to be located, and then be filed in the office of the secretary of state, who shall carefully preserve the same in his office, and thereupon the subscribers and the persons who, from time to time, shall become stockholders in such company, and their successors, shall be a body politic and corporate, by the name stated in such articles of association, and shall have power to construct, own, operate and maintain lines of telephone and magnetic telegraph between such points as they may from time to time determine, and to make such reasonable charges for the use of the same as they may establish; and shall have power to lease or attach to their lines other telephone or telegraph lines by lease or purchase; and meetings of the stockholders or of the directors of such corporation may be held for the transaction of business as well without as within this state.

2. A copy of the articles of association, certified by the secretary of state or his deputy, under the seal of the state, shall be prima facie evidence of the incorporation of such company, and of the facts stated therein. Any such company, through its board of directors, with the consent of the persons holding the larger amount in value of the stock, shall have power to reduce its capital stock to any amount not below the actual cost of construction, and in like manner and with like consent to increase the capital stock from time to time as in their judgment may be necessary, not exceeding an amount which, when fully paid up, shall be required for the business of the company, which consent shall be obtained in the manner prescribed by law.

(RSMo 1939 § 5322)

Prior revisions: 1929 § 4917; 1919 § 10128; 1909 § 5322

Powers of corporation.

392.030. All corporations formed under sections 392.010 to 392.170 shall possess all the powers and privileges granted to corporations by chapter 351, relating to the general powers of private corporations, and be subject to all the provisions thereof except as herein otherwise provided.

(RSMo 1939 § 5337)

Prior revisions: 1929 § 4932; 1919 § 10143; 1909 § 3338

Election of directors--appointment of officers.

392.040. 1. There shall be an annual election of directors to serve for the ensuing year, notice of which, appointing a time and place, shall be given by the directors chosen, as provided by law, for the first annual election, and thereafter by their successors in office; which notice shall be published not less than twenty days previous thereto in a newspaper published in the county where the principal office of the company shall be situated. The directors shall hold their offices for one year and until their successors are duly elected and qualified.

2. They shall elect one of their number to be president of the company, and may appoint such other officers and agents as may be prescribed by the articles of association or bylaws of the company.

(RSMo 1939 § 5323)

Prior revisions: 1929 § 4918; 1919 § 10129; 1909 § 3323)

CROSS REFERENCE:

Quorum of stockholders, powers, 351.267

Directors, procedure for election of.

392.050. All elections for directors shall conform to the requirements of law governing private business corporations.

(RSMo 1939 § 5324, A.L. 1975 S.B. 89)

Prior revisions: 1929 § 4919; 1919 § 10130; 1909 § 3324

Meeting of board.

392.060. The board of directors may at any time meet for the transaction of business, upon a call of the president of the company.

(RSMo 1939 § 5325)

Prior revisions: 1929 § 4920; 1919 § 10131; 1909 § 3325

CROSS REFERENCE:

Quorum in membership telephone corporations, 351.267

Consolidation of companies.

392.070. Any telegraph company now organized, or which may hereafter be organized, under the laws of this state, may at any regular meeting of the stockholders thereof, by vote of persons holding a majority of the shares of the stock of such company, unite or consolidate with any other company or companies now organized, or which may hereafter be organized, under the laws of the United States, or of any state or territory, by consent of the company with which it may consolidate or unite, and such consolidated company so formed may hold, use and enjoy all the rights and privileges conferred by the laws of Missouri on companies separately organized under the provisions of sections 392.010 to 392.170, and be subject to the same liabilities.

(RSMo 1939 § 5336)

Prior revisions: 1929 § 4931; 1919 § 10142; 1909 § 3337

May construct lines on public roads--consent of cityrequired--constructive easement acquired, when.

392.080. Companies organized under the provisions of sections 392.010 to 392.170, for the purpose of constructing and maintaining telephone or magnetic telegraph lines are authorized to set their poles, piers, abutments, wires, and other fixtures along, across or under any of the public roads, streets and waters of this state, in such manner as not to incommode the public in the use of such roads, streets and waters; provided, any telegraph or telephone company desiring to place their wires, poles, and other fixtures in any city, they shall first obtain consent from said city through the municipal authorities thereof; and provided, further, that the acceptance, use, or continued use of this right shall create a real property public easement in the public roads, streets and waters in favor of the accepting telephone or magnetic telegraph company so long as it is used for public utility purposes, subject only to public use and the rights of the cities as set out above and such easement shall not terminate or be extinguished by any vacation, abandonment or subsequent sale by the state or any agency or commission thereof; however, nothing contained herein shall alter the authority of the state highways and transportation commission to require the alteration or removal of such facilities pursuant to section 227.240, nor entitle the owner of the facilities to reimbursement for the cost of altering or removing such facilities pursuant to an order of state highways and transportation commission under section 227.240.

(RSMo 1939 § 5326, A.L. 1974 S.B. 344)

Prior revisions: 1929 § 4921; 1919 § 10132; 1909 § 3326

CROSS REFERENCES:

Erection of telephone or telegraph wires in streets or roads, cities of the third class, 77.520

Erection of telephone or telegraph wires in streets or roads, cities of the fourth class, 88.773

Erection of telephone or telegraph wires in streets or roads, consent of county commission, 229.100

Erection of telephone or telegraph wires in streets or roads, state highways and transportation commission consent, 227.240

Mode of construction may be directed, by whom.

392.090. The mayor and aldermen or board of common council of any city, and the trustees of any incorporated town, through which the lines of any telephone or telegraph company are to pass, may, by ordinance or otherwise, specify where the posts, piers or abutments shall be located, the kind of posts that shall be used, the height at which the wires shall be run; and such company shall be governed by the regulations thus prescribed; and after the erection of said telephone or telegraph lines, the said mayor and aldermen, or board of common council, and the trustees of any incorporated town, shall have power to direct any alteration in the location or erection of said posts, piers or abutments, and also in the height at which the wires shall run, having first given such company or its agents opportunity to be heard in regard to such alteration.

(RSMo 1939 § 5335)

Prior revisions: 1929 § 4930; 1919 § 10141; 1909 § 3335

May enter upon lands, when.

392.100. Such companies are also authorized to enter upon any land, whether owned by private persons in fee or in any less estate, or by any corporation, whether acquired by purchase or by virtue of any provision in the charter of such corporation for the purpose of making preliminary surveys and examinations with a view to the erection of any telephone or telegraph lines, and, from time to time, to appropriate so much of said lands as may be necessary to erect such poles, piers, abutments, wires and other necessary fixtures for a telephone or magnetic telegraph, and to make such changes of location of any part of said lines as may, from time to time, be deemed necessary, and shall have a right of access to construct said line, and when erected, from time to time, as may be required, to repair the same; and may proceed to obtain the right-of-way, and to condemn said lands in the manner provided by law.

(RSMo 1939 § 5327)

Prior revisions: 1929 § 4922; 1919 § 10133; 1909 § 3327

CROSS REFERENCE:

Condemnation proceedings, Chap. 523

No contract for exclusive use of land.

392.110. No company shall have power to contract with any owner of land for the right to erect or maintain a telephone or telegraph line over his lands, to the exclusion of the lines of other companies organized under the provisions of sections 392.010 to 392.170.

(RSMo 1939 § 5328)

Prior revisions: 1929 § 4923; 1919 § 10134; 1909 § 3328

Power to own and maintain lines.

392.120. Any company incorporated as herein provided may contract, own, use and maintain any line or lines of telephone or magnetic telegraph, whether wholly within or wholly or partly beyond the limits of this state, and shall have power to lease or attach to the line or lines of such company other telephone or telegraph lines, by lease or purchase, and may join with any other corporation or association in constructing, leasing, owning, using or maintaining their line or lines, upon such terms as may be agreed upon between the directors or managers of the respective corporations, and may own and hold any interest in such line or lines, or become lessees thereof, on such terms as the respective corporations may agree.

(RSMo 1939 § 5329)

Prior revisions: 1929 § 4924; 1919 § 10135; 1909 § 3329

Companies to provide facilities to meet public needs--penalty forfailure to deliver messages.

392.130. It shall be the duty of every telegraph or telephone company, incorporated or unincorporated, operating any telephone or telegraph line in this state, to provide sufficient facilities at all its offices for the dispatch of the business of the public, to receive dispatches from and for other telephone or telegraph lines and from or for any individual, and on payment or tender of their usual charges for transmitting and delivering dispatches as established by the rules and regulations of such telephone or telegraph lines, to transmit and deliver the same to designated address and to use due diligence to place said dispatch in the hands of the addressee, by the most direct means available, without material alterations, promptly, and with impartiality and good faith under a penalty of three hundred dollars for every neglect or refusal so to transmit and deliver, to be recovered with costs of suit by civil action by the person or persons or company sending or desiring to send such dispatch; two-thirds of the amount recovered to be retained by the plaintiff and one-third to be paid into the county school fund of the county in which the suit was instituted, and the burden of proof shall be upon the company to show that the wire was engaged as the reason for the delay in transmitting such dispatch.

(RSMo 1939 § 5330)

Prior revisions: 1929 § 4925; 1919 § 10136; 1909 § 3330

Duties in forwarding dispatches over other lines.

392.140. Where the person sending the dispatch desires to have it forwarded over the lines of other telephone or telegraph companies, whose termini are respectively within the limits of the usual delivery of such companies, to the place of final destination, and shall tender to the first company the amount of the usual charges for the dispatch to the place of final delivery, it shall be the duty of the company to receive the same, and, without delaying the dispatch, to pay to the succeeding line the necessary charges for the remaining distance; and it shall be the duty of the succeeding line or lines to accept the same, and forward the dispatch in the same manner as if the person sending the same had applied to the agent or operator of such line or lines in person, and paid to him the usual charges; and for omitting so to do the company or companies owning or operating such line or lines shall severally be liable to the penalty prescribed in section 392.130.

(RSMo 1939 § 5331)

Prior revisions: 1929 § 4926; 1919 § 10137; 1909 § 3331

Employees to notify sender when message cannot be transmittedimmediately--penalty.

392.150. In all cases where application is made to any telephone or telegraph company, or the operator, agent, clerk or servant thereof, to send a dispatch, it shall be the duty of such operator, agent, clerk or servant who may receive dispatches at that station, plainly to inform the applicant, and, if required by him, to write upon the dispatch that the line is not in working order, or that the dispatches already on hand for transmission will occupy the time so that the dispatch offered cannot be transmitted within the time required, or promptly, if the facts be so; and for omitting so to do, or for intentionally giving false information to the applicant in relation to the time within which the dispatch offered may be sent, such operator, agent, clerk or servant, and the company by which he is employed, shall incur a like penalty as in section 392.130.

(RSMo 1939 § 5332)

Prior revisions: 1929 § 4927; 1919 § 10138; 1909 § 3332

Penalty for transmitting false communications.

392.160. If any officer, manager, agent or operator of any telephone or telegraph line operating in this state, or any other person, shall knowingly transmit by such telephone or telegraph line any false communication or intelligence with intent to injure anyone, or to speculate in any article of merchandise, commerce or trade, or with intent that another may do so, or shall knowingly send or deliver any dispatch that is forged or not authorized by the person whose name purports to be signed thereto, shall, on conviction thereof in the court having criminal jurisdiction in the proper county, be liable to the same penalty as is provided in section 392.130.

(RSMo 1939 § 5333)

Prior revisions: 1929 § 4928; 1919 § 10139; 1909 § 3333

Liability for negligence in transmitting and delivering messages--notto disclose contents--penalty.

392.170. Every telephone or telegraph company now organized under the laws of this state, and every telephone or telegraph company now organized, or which may hereafter be organized under the laws of any other state or territory, and doing business in this state, shall be liable for special damages occasioned by the failure or negligence of their operators or servants in receiving, copying, transmitting or delivering dispatches; and for the disclosure of any of the contents of any private dispatches to any person other than to him to whom it was addressed, or to his agent, they shall be liable to the sender of the dispatch, and to the person to whom it was addressed, in the sum of fifty dollars to each, recoverable by any action before a magistrate, and for all special damages in addition thereto.

(RSMo 1939 § 5334)

Prior revisions: 1929 § 4929; 1919 § 10140; 1909 § 3334

Operator services, live operator to be provided, when.

392.175. 1. As used in this section, the meanings of words and phrases shall have the same meaning as given to such words and phrases in section 386.020.

2. A telecommunications company that provides operator services within this state shall enable a caller to access a live operator at the beginning of a call by a means that is easily and readily understood.

3. The requirements of this section shall not apply to telephones located in any correctional or detention facility.

(L. 1997 S.B. 333 § 1)

What definitions to apply.

392.180. The provisions of section 386.020, defining words, phrases and terms, shall apply to and determine the meaning of all such words, phrases and terms as used in sections 392.190 to 392.530.

(1949 H.B. 2104, A.L. 1996 S.B. 507)

Purpose of chapter.

392.185. The provisions of this chapter shall be construed to:

(1) Promote universally available and widely affordable telecommunications services;

(2) Maintain and advance the efficiency and availability of telecommunications services;

(3) Promote diversity in the supply of telecommunications services and products throughout the state of Missouri;

(4) Ensure that customers pay only reasonable charges for telecommunications service;

(5) Permit flexible regulation of competitive telecommunications companies and competitive telecommunications services;

(6) Allow full and fair competition to function as a substitute for regulation when consistent with the protection of ratepayers and otherwise consistent with the public interest;

(7) Promote parity of urban and rural telecommunications services;

(8) Promote economic, educational, health care and cultural enhancements; and

(9) Protect consumer privacy.

(L. 1996 S.B. 507)

Application of sections 392.190 to 392.530.

392.190. The provisions of sections 392.190 to 392.530 shall apply to telecommunications service between one point and another within the state of Missouri and to every telecommunications company.

(RSMo 1939 § 5663, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5207; 1919 § 10495

Adequate service--just and reasonable charges--unjustdiscrimination--unreasonable preference--reduced rates permittedfor federal lifeline connection plan--delivery of telephone andtelegraph messages--customer--specific pricing--term agreements,discount rates.

392.200. 1. Every telecommunications company shall furnish and provide with respect to its business such instrumentalities and facilities as shall be adequate and in all respects just and reasonable. All charges made and demanded by any telecommunications company for any service rendered or to be rendered in connection therewith shall be just and reasonable and not more than allowed by law or by order or decision of the commission. Every unjust or unreasonable charge made or demanded for any such service or in connection therewith or in excess of that allowed by law or by order or decision of the commission is prohibited and declared to be unlawful.

2. No telecommunications company shall directly or indirectly or by any special rate, rebate, drawback or other device or method charge, demand, collect or receive from any person or corporation a greater or less compensation for any service rendered or to be rendered with respect to telecommunications or in connection therewith, except as authorized in this chapter, than it charges, demands, collects or receives from any other person or corporation for doing a like and contemporaneous service with respect to telecommunications under the same or substantially the same circumstances and conditions. Promotional programs for telecommunications services may be offered by telecommunications companies for periods of time so long as the offer is otherwise consistent with the provisions of this chapter and approved by the commission. Neither this subsection nor subsection 3 of this section shall be construed to prohibit an economy rate telephone service offering. This section and section 392.220 to the contrary notwithstanding, the commission is authorized to approve tariffs filed by local exchange telecommunications companies which elect to provide reduced charges for residential telecommunications connection services pursuant to the lifeline connection assistance plan as promulgated by the federal communications commission. Eligible subscribers for such connection services shall be those as defined by participating local exchange telecommunications company tariffs.

3. No telecommunications company shall make or give any undue or unreasonable preference or advantage to any person, corporation or locality, or subject any particular person, corporation or locality to any undue or unreasonable prejudice or disadvantage in any respect whatsoever except that telecommunications messages may be classified into such classes as are just and reasonable, and different rates may be charged for the different classes of messages.

4. (1) No telecommunications company may define a telecommunications service as a different telecommunications service based on the geographic area or other market segmentation within which such telecommunications service is offered or provided, unless the telecommunications company makes application and files a tariff or tariffs which propose relief from this subsection. Any such tariff shall be subject to the provisions of sections 392.220 and 392.230 and in any hearing thereon the burden shall be on the telecommunications company to show, by clear and convincing evidence, that the definition of such service based on the geographic area or other market within which such service is offered is reasonably necessary to promote the public interest and the purposes and policies of this chapter.

(2) It is the intent of this act to bring the benefits of competition to all customers and to ensure that incumbent and alternative local exchange telecommunications companies have the opportunity to price and market telecommunications services to all prospective customers in any geographic area in which they compete. To promote the goals of the federal Telecommunications Act of 1996, for an alternative local exchange telecommunications company or for an incumbent local exchange telecommunications company in any exchange where an incumbent local exchange telecommunications company has been classified competitive under sections 392.245 and 392.361, an alternative local exchange telecommunications company has been certified and is providing basic local telecommunications services or switched exchange access services, or an interconnected voice over internet protocol service provider has been registered and is providing local voice service, the commission shall review and approve or reject, within forty-five days of filing, tariffs for proposed different services as follows:

(a) For services proposed on an exchangewide basis, it shall be presumed that a tariff which defines and establishes prices for a local exchange telecommunications service or exchange access service as a different telecommunications service in the geographic area, no smaller than an exchange, within which such local exchange telecommunications service or exchange access service is offered is reasonably necessary to promote the public interest and the purposes and policies of this chapter;

(b) For services proposed in a geographic area smaller than an exchange or other market segmentation within which or to whom such telecommunications service is proposed to be offered, a local exchange telecommunications company may petition the commission to define and establish a local exchange telecommunications service or exchange access service as a different local exchange telecommunications service or exchange access service. The commission shall approve such a proposal unless it finds that such service in a smaller geographic area or such other market segmentation is contrary to the public interest or is contrary to the purposes of this chapter. Upon approval of such a smaller geographic area or such other market segmentation for a different service for one local exchange telecommunications company, all other local exchange telecommunications companies certified to provide service in that exchange may file a tariff to use such smaller geographic area or such other market segmentation to provide that service;

(c) For proposed different services described in paragraphs (a) and (b) of this subdivision, the local exchange telecommunications company which files a tariff to provide such service shall provide the service to all similarly situated customers, upon request in accordance with that company's approved tariff, in the exchange or geographic area smaller than an exchange or such other market segmentation for which the tariff was filed, and no price proposed for such service by an incumbent local exchange telecommunications company, other than for a competitive service, shall be lower than its long-run incremental cost, as defined in section 386.020.

(3) The commission, on its own motion or upon motion of the public counsel, may by order, after notice and hearing, define a telecommunications service offered or provided by a telecommunications company as a different telecommunications service dependent upon the geographic area or other market within which such telecommunications service is offered or provided and apply different service classifications to such service only upon a finding, based on clear and convincing evidence, that such different treatment is reasonably necessary to promote the public interest and the purposes and policies of this chapter.

5. No telecommunications company may charge a different price per minute or other unit of measure for the same, substitutable, or equivalent interexchange telecommunications service provided over the same or equivalent distance between two points without filing a tariff for the offer or provision of such service pursuant to sections 392.220 and 392.230. In any proceeding under sections 392.220 and 392.230 wherein a telecommunications company seeks to charge a different price per minute or other unit of measure for the same, substitutable, or equivalent interexchange service, the burden shall be on the subject telecommunications company to show that such charges are in the public interest and consistent with the provisions and purposes of this chapter. The commission may modify or prohibit such charges if the subject telecommunications company fails to show that such charges are in the public interest and consistent with the provisions and purposes of this chapter. This subsection shall not apply to reasonable price discounts based on the volume of service provided, so long as such discounts are nondiscriminatory and offered under the same rates, terms, and conditions throughout a telecommunications company's certificated or service area.

6. Every telecommunications company operating in this state shall receive, transmit and deliver, without discrimination or delay, the conversations and messages of every other telecommunications company with whose facilities a connection may have been made.

7. The commission shall have power to provide the limits within which telecommunications messages shall be delivered without extra charge.

8. Customer-specific pricing is authorized on an equal basis for incumbent and alternative local exchange companies, and for interexchange telecommunications companies for:

(1) Dedicated, nonswitched, private line and special access services;

(2) Central office-based switching systems which substitute for customer premise, private branch exchange (PBX) services; and

(3) Any business service offered in an exchange in which basic local telecommunications service offered by the incumbent local exchange telecommunications company has been declared competitive under section 392.245, and any retail business service offered to an end-user in a noncompetitive exchange.

9. This act shall not be construed to prohibit the commission, upon determining that it is in the public interest, from altering local exchange boundaries, provided that the incumbent local exchange telecommunications company or companies serving each exchange for which the boundaries are altered provide notice to the commission that the companies approve the alteration of exchange boundaries.

10. Notwithstanding any other provision of this section, every telecommunications company is authorized to offer term agreements of up to five years on any of its telecommunications services.

11. Notwithstanding any other provision of this section, every telecommunications company is authorized to offer discounted rates or special promotions on any of its telecommunications services to any existing, new, and/or former customers.

12. Packages of services may be offered on an equal basis by incumbent and alternative local exchange companies and shall not be subject to regulation under section 392.240 or 392.245, nor shall packages of services be subject to the provisions of subsections 1 through 5 of this section, provided that each telecommunications service included in a package is available apart from the package of services and still subject to regulation under section 392.240 or 392.245. For the purposes of this subsection, a "package of services" includes more than one telecommunications service or one or more telecommunications service combined with one or more nontelecommunications service. Any tariff to introduce a new package or to make any change to an existing package, except for the elimination of a package, shall be filed, on an informational basis, with the commission at least one day prior to the introduction of such new package or implementation of such change. Any tariff to eliminate an existing package shall be filed, on an informational basis, with the commission at least ten days prior to the elimination of the package.

(RSMo 1939 § 5664, A.L. 1987 H.B. 360, A.L. 1988 H.B. 1670, A.L. 1996 S.B. 507, A.L. 2003 H.B. 208, A.L. 2005 S.B. 237, A.L. 2008 H.B. 1779)

Prior revisions: 1929 § 5208; 1919 § 10496

CROSS REFERENCES:

Cities of the third class, 77.490

Regulation and supervision by public service commission, 386.320

Electronic publishing limitations--adoption of provisions--publicservice commission to administer--exception.

392.201. 1. Prior to February 7, 2000, no incumbent local exchange telecommunications company may engage in the provision of electronic publishing services, on an intrastate basis, which services are disseminated by means of such telecommunications company's or any of its affiliates' telecommunications services; except that nothing in this section shall prohibit a separated affiliate or electronic publishing joint venture operated in accordance with this section from engaging in the provision of intrastate electronic publishing services.

2. The state of Missouri hereby adopts and incorporates in total the electronic publishing provisions of Section 274 of the federal Telecommunications Act of 1996 for the purpose of governing the provision of electronic publishing services on an intrastate basis; provided that said provisions shall be fully applicable to and binding on all incumbent local exchange telecommunications companies operating in the state of Missouri until February 7, 2000.

3. The public service commission is hereby granted all primary and concurrent jurisdiction and powers necessary and proper to administer the provisions of this section consistent with the federal Telecommunications Act of 1996, as incorporated herein, and otherwise consistent with the public service commission law.

4. Other provisions of law to the contrary notwithstanding, the provisions of this section shall not be construed to affect or prohibit incumbent local exchange telecommunications companies from providing international networking (internet) services, electronic bulletin board and related services which are offered primarily as a community or public service.

(L. 1996 S.B. 507)

Public schools to have reduced rates.

392.205. The public service commission shall ensure that all public school districts have access to substantially reduced telecommunications rates and may approve the tariff as submitted, or may, after hearing, modify the tariff in the public interest.

(L. 1996 S.B. 507)

Reports and records of telecommunication companies.

392.210. 1. Every telecommunications company shall file with the commission an annual report at a time and covering the yearly period fixed by the commission. Such annual report shall be verified by the oath of the president, treasurer, general manager or receiver, if any, of any of such companies, or by the person required to file the same. Verification shall be made by the official holding office at the time of the filing of such report, and if not made upon the knowledge of the person verifying, the same shall set forth in general terms the sources of his information and the grounds for his belief as to any matters not stated to be verified on his knowledge. The commission shall prescribe the form of such reports and the character of the information to be contained therein and may, from time to time, make such changes and additions in regard to form and contents thereof as it may deem proper, and shall furnish a blank form for such annual reports to every telecommunications company required to make the same. The form of such reports shall follow, as nearly as may be, the form prescribed by the Federal Communications Commission. When the report of any telecommunications company is defective or erroneous, the commission shall notify the company to amend the same within a time prescribed by the commission. Such reports shall be preserved in the office of the commission. The commission may require of any telecommunications company specific answers to questions upon which the commission may desire information. If any telecommunications company shall fail to make and file its annual report as and when required or within such extended time as the commission may allow, or shall fail to make specific answers to any question within the period specified by the commission for the making and filing of such answers, such company shall forfeit to the state the sum of one hundred dollars for each and every day it shall continue to be in default with respect to such report or answer. Such forfeiture shall be recovered in an action brought by the commission in the name of the state of Missouri. The amount recovered in any such action shall be paid to the public school fund of the state. The commission may, when it deems it advisable, exempt any telecommunications company from the necessity of filing annual reports until the further order of the commission.

2. The commission may establish a system of accounts to be used by telecommunications companies, which are required to make annual reports to it, or classify the companies, and prescribe a system of accounts for each class and may prescribe the manner in which such accounts shall be kept. The system of accounts required shall follow, as nearly as may be, the system prescribed by the Federal Communications Commission. It may also, in its discretion, prescribe the form of records to be kept by such companies. The commission shall at all times have access to all accounts, records and memoranda kept by telecommunications companies, and may designate any of its officers or employees who shall thereupon be authorized under the order of the commission to inspect and examine any and all accounts, records and memoranda kept by any such company; and the commission may, after hearing, prescribe, by order, the accounts in which particular outlays and receipts shall be entered, charged or credited. Any employee or agent of the commission who divulges any fact or information which may come to his knowledge during the course of any such inspection or examination, except insofar as he may be directed by the commission by regulation or otherwise, or by a court or judge thereof, or authorized by law, shall be guilty of a misdemeanor. Any provision of law prohibiting the disclosure of the contents of telegraph messages or the contents or substance of telecommunications transmissions shall not be deemed to prohibit the disclosure of any matter in accordance with the provisions of sections 392.190 to 392.530.

(RSMo 1939 § 5668, A.L. 1984 H.B. 1477, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5212; 1919 § 10500

Rates, schedules, suspension of, when--revocation of certificate ofservice, penalty.

392.220. 1. Every telecommunications company shall print and file with the commission schedules showing the rates, rentals and charges for service of each and every kind by or over its facilities between points in this state and between each point upon its facilities and all points upon all facilities leased or operated by it and between each point upon its facilities or upon any facility leased or operated by it and all points upon the line of any other telecommunications company whenever a through service or joint rate shall have been established between any two points. If no joint rate over through facilities has been established, the several companies joined over such through facilities shall file with the commission the separately established rates and charges applicable where through service is afforded. Such schedule shall plainly state the places between which telecommunications service will be rendered and shall also state separately all charges and all privileges or facilities granted or allowed and any rules or regulations or forms of contract which may in any wise change, affect or determine any or the aggregate of the rates, rentals or charges for the service rendered. Such schedule shall be plainly printed and kept open to public inspection. The commission shall have the power to prescribe the form of every such schedule and may from time to time prescribe, by order, changes in the form thereof. The commission shall also have power to establish rules and regulations for keeping such schedules open to public inspection and may from time to time modify the same. Every telecommunications company shall file with the commission as and when required by it a copy of any contract, agreement or arrangement in writing with any other telecommunications company or with any other corporation, association or person relating in any way to the construction, maintenance or use of telecommunications facilities or service by or rates and charges over or upon any facilities.

2. Unless the commission otherwise orders, and except for the rates charged by a telephone cooperative for providing telecommunications service within an exchange or within a local calling scope as determined by the commission other than the rates for exchange access service, no change shall be made in any rate, charge or rental, or joint rate, charge or rental which shall have been filed by a telecommunications company in compliance with the requirements of sections 392.190 to 392.530, except after thirty days' notice to the commission, which notice shall plainly state the changes proposed to be made in the schedule then in force and the time when the changed rate, charge or rental shall go into effect; and all proposed changes shall be shown by filing new schedules or shall be plainly indicated upon the schedules filed and in force at the time and kept open to public inspection. The commission for good cause shown may allow changes in rates, charges or rentals without requiring the thirty days' notice, under such conditions as it may prescribe. All such changes shall be immediately indicated upon its schedules by such telecommunications company. No telecommunications company shall charge, demand, collect or receive a different compensation for any service rendered or to be rendered than the charge applicable to such service as specified in its schedule on file and in effect at that time. No telecommunications company shall refund or remit directly or indirectly any portion of the rate or charge so specified, nor extend to any person or corporation any form of contract or agreement, or any rule or regulation, or any privilege or facility other than such privileges and facilities as are contemplated by sections 392.200, 392.245, and 392.455, except such as are specified in its schedule filed and in effect at the time and regularly and uniformly extended to all persons and corporations under like circumstances for a like or substantially similar service.

3. No telecommunications company subject to the provisions of this law shall, directly or indirectly, give any free or reduced service, or any free pass or frank for the provision of telecommunications services between points within this state, except to its officers, employees, agents, surgeons, physicians, attorneys at law and their families; to persons or corporations exclusively engaged in charitable and eleemosynary work and ministers of religions; to officers and employees of other telegraph corporations and telephone corporations, railroad corporations and street railroad corporations; public education institutions, public libraries and not-for-profit health care institutions. This subsection shall not apply to state, municipal or federal contracts.

4. Any proposed rate or charge for any new telecommunications service which has not previously been provided by a telecommunications company to its Missouri customers may be suspended by the commission for a period not to exceed thirty days from the proposed effective date of such proposed rate or charge. This subsection shall not be applicable to any new price or method of pricing for a service presently being offered by any telecommunications company to its Missouri customers. Upon proposing a rate or charge for a telecommunications service which has not previously been provided by a telecommunications company to its Missouri customers, the offeror must file with the commission its justification for considering such offering a new service and such other information as may be required by rule or regulation, and must identify that service as being noncompetitive, transitionally competitive or competitive. If the offeror is a noncompetitive or transitionally competitive telecommunications company and it proposes such service as a transitionally competitive or competitive telecommunications service, the telecommunications service shall be treated as a transitionally competitive telecommunications service until such time as the commission finally determines the appropriate classification. If the offeror is a competitive telecommunications company and it proposes such service as a competitive service, the competitive classification proposed by the offeror of the service shall apply until such time as the commission finally determines the appropriate classification. Such final determination by the commission of the appropriate classification of such service may be made by the commission after the end of the maximum thirty-day suspension period, but any such decision by the commission issued after the maximum thirty-day suspension period shall be prospective in nature. The commission shall expedite proceedings under this subsection in order to facilitate the rapid introduction of new telecommunications products and services into the marketplace.

5. Unless the commission otherwise orders, any change in rates or charges, or change in any classification or tariff resulting in a change in rates or charges, for any telephone cooperative shall be filed, on an informational basis, with the commission at least thirty days prior to the date for implementation of such change. Nothing contained in this section shall be construed as conferring jurisdiction upon the commission over the rates charged by a telephone cooperative for providing telecommunications service within an exchange or within a local calling scope as determined by the commission, except for exchange access service.

6. If after notice and hearing, the commission determines that a telecommunications company has violated the requirements of section 392.200 or this section, it may revoke the certificate of service authority under which that telecommunications company operates and shall direct its general counsel to initiate an action under section 386.600 to recover penalties from such telecommunications company in an amount not to exceed the revenues received as a result of such violation multiplied by three or the gross jurisdictional operating revenues of that company for the preceding twelve months, the provisions of section 386.570 notwithstanding.

(RSMo 1939 § 5665, A.L. 1987 H.B. 360, A.L. 1988 S.B. 481, A.L. 1991 S.B. 269, A.L. 1993 S.B. 160, A.L. 1996 S.B. 507 merged with S.B. 630, A.L. 2008 H.B. 1779)

Prior revisions: 1929 § 5209; 1919 § 10497

Charges for short and long distance service--power of commission tostay increased rates--hearing, requirements, small telephonecompany, requirements.

392.230. 1. No telecommunications company subject to the provisions of this chapter shall charge or receive any greater compensation in the aggregate for the transmission of any interexchange telecommunications service offered or provided for a shorter than for a longer distance over the same line or route in the same direction, within this state, the shorter being included within the longer distance, or charge any greater compensation for a through interexchange telecommunications service than the aggregate of the intermediate rates or tolls subject to the provisions of this chapter; but this shall not be construed as authorizing any such telecommunications company to charge or receive as great a compensation for a shorter as for a longer distance.

2. Upon application to the commission, a telecommunications company may, in special cases, after investigation, be authorized by the commission to charge less for a longer than for a shorter distance service for the transmission of messages or conversations, and the commission may from time to time prescribe the extent to which such telecommunications companies may be relieved from the operation and requirements of this section.

3. Whenever there shall be filed with the commission by any telecommunications company, other than a small telephone company, any schedule stating a new individual or joint rate, rental or charge, or any new individual or joint regulation or practice affecting any rate, rental or charge, the commission shall have, and it is hereby given, authority, either upon complaint or upon its own initiative without complaint, at once, and if it so orders without answer or other formal pleading by the interested telecommunications company or companies, but upon reasonable notice, to enter upon a hearing concerning the propriety of such rate, rental, charge, regulation or practice; and pending such hearing and the decision thereon the commission, upon filing with such schedule and delivering to the telecommunications company affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of such rate, rental, charge, regulation or practice, but not for a longer period than sixty days beyond the time when such rate, rental, charge, regulation or practice would otherwise go into effect; and after full hearing, whether completed before or after the rate, rental, charge, regulation or practice goes into effect, the commission may make such order in reference to such rate, rental, charge, regulation or practice as would be proper in a proceeding initiated after the rate, rental, charge, regulation or practice had become effective, however, if any such hearing cannot be concluded within the period of suspension, as above stated, the commission may, in its discretion, extend the time of suspension for a further period not exceeding ninety days.

4. For the purposes of this section, a "small telephone company" is defined as a local exchange telecommunications company which serves no more than twenty-five thousand subscriber access lines in the state of Missouri.

5. Whenever a small telephone company seeks to implement any new individual or joint rate, rental or charge, or any individual or joint regulation or practice affecting any rate, rental or charge, it shall file same with the commission and notify its customers of such change at least thirty days in advance of the date on which the new rate, rental, charge, regulation or practice is proposed to become effective. Upon the filing by a small telephone company of any new individual or joint rate, rental or charge, or any new individual or joint regulation or practice affecting any rate, rental or charge, the commission shall have, and it is hereby given, authority, either upon complaint or upon its own initiative without complaint, at once, and if it so orders without answer or other formal pleading by the interested small telephone company or companies, but upon reasonable notice, to enter upon a hearing concerning the propriety of such rate, rental, charge, regulation or practice; and pending such hearing and the decision thereon the commission, upon filing with such schedule and delivering to the small telephone company affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of such rate, rental, charge, regulation or practice, but not for a longer period than one hundred fifty days beyond the time when such rate, rental, charge, regulation or practice would otherwise go into effect. If the commission fails to issue its decision within the one-hundred-fifty-day suspension period, the investigation shall be closed and the rate, rental, charge, regulation or practice shall be considered approved for all purposes.

6. At any hearing involving a rate increased or a rate sought to be increased after the passage of this law, the burden of proof to show that the increased rate or proposed increased rate is just and reasonable shall be upon the telecommunications company, and the commission shall give to the hearing and decision of such questions preference over all other questions pending before it and decide the same as speedily as possible.

(RSMo 1939 § 5671, A.L. 1987 H.B. 360, A.L. 2008 H.B. 1779)

Prior revisions: 1929 § 5215; 1919 § 10503

Rates--rentals--service and physical connections.

392.240. 1. Whenever the commission shall be of the opinion, after a hearing had upon its own motion or upon a complaint, that the rates, charges, tolls or rentals demanded, exacted, charged or collected by any telecommunications company for the transmission of messages or communications, or for the rental or use of any telecommunications facilities or that the rules, regulations or practices of any telecommunications company affecting such rates, charges, rentals or service are unjust, unreasonable, unjustly discriminatory or unduly preferential or in any wise in violation of law, or that the maximum rates, charges or rentals chargeable by any such telecommunications company are insufficient to yield reasonable compensation for the service rendered, the commission shall with due regard, among other things, to a reasonable average return upon the value of the property actually used in the public service and of the necessity of making reservation out of income for surplus and contingencies, determine the just and reasonable rates, charges and rentals to be thereafter observed and in force as the maximum to be charged, demanded, exacted or collected for the performance or rendering of the service specified and shall fix the same by order to be served upon all telecommunications companies by which such rates, charges and rentals are thereafter to be observed, and thereafter no increase in any rate, charge or rental so fixed shall be made without the consent of the commission.

2. Whenever the commission shall be of the opinion, after a hearing had upon its own motion or upon complaint, that the rules, regulations or practices of any telecommunications company are unjust or unreasonable, or that the equipment or service of any telecommunications company is inadequate, insufficient, improper or inefficient, the commission shall determine the just, reasonable, adequate, efficient and proper regulations, practices, equipment and service thereafter to be installed, to be observed and used and to fix and prescribe the same by order to be served upon every telecommunications company to be bound thereby, and thereafter it shall be the duty of every telecommunications company to which such order is directed to obey each and every such order so served upon it and to do everything necessary or proper in order to secure compliance with and observance of every such order by all its officers, agents and employees according to its true intent and meaning. Nothing contained in this chapter shall be construed as giving to the commission power to make any order, direction or requirement requiring any telecommunications company to perform any act which is unjust or unreasonable or in violation of any law of this state or of the United States not inconsistent with the provisions of this chapter.

3. Whenever the commission, after a hearing had upon its own motion or upon complaint, shall find that a physical connection can reasonably be made between the lines of two or more telecommunications companies whose facilities can be made to form a continuous link of communication by the construction and maintenance of suitable connections for the transfer of messages or conversations, and that public convenience and necessity will be subserved thereby, or shall find that two or more telecommunications companies have failed to establish joint rates, tolls or charges for service by or over their facilities, and that joint rates, tolls or charges ought to be established, the commission may, by its order, require that such connection be made, except where the purpose of such connection is primarily to secure the transmission of local telecommunications service and the telecommunications be transmitted over such connection under such rules and regulations as the commission may establish, and prescribe through lines and joint rates, tolls and charges to be made, and to be used, observed and in force in the future. If any two telecommunications companies do not agree upon the division between them of the cost of such physical connection or connections or the division of the joint rates, tolls or charges established by the commission over such through facilities, the commission shall have authority, after further hearing, to establish such division by supplemental order.

(RSMo 1939 § 5670, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5214; 1919 § 10502

Companies to be regulated, when--maximum prices, determined how,changed how--classification--change of rates--nonwireless basiclocal telecommunications services, exempt from maximum allowableprices.

392.245. 1. The commission shall have the authority to ensure that rates, charges, tolls and rentals for telecommunications services are just, reasonable and lawful by employing price cap regulation. Any rate, charge, toll, or rental that does not exceed the maximum allowable price under this section shall be deemed to be just, reasonable, and lawful. As used in this chapter, "price cap regulation" shall mean establishment of maximum allowable prices for telecommunications services offered by an incumbent local exchange telecommunications company, which maximum allowable prices shall not be subject to increase except as otherwise provided in this section.

2. A large incumbent local exchange telecommunications company shall be subject to regulation under this section upon a determination by the commission that an alternative local exchange telecommunications company has been certified to provide basic local telecommunications service or an interconnected voice over internet protocol service provider has been registered to provide service under section 392.550, and is providing such service in any part of the large incumbent company's service area. A small incumbent local exchange telecommunications company may elect to be regulated under this section upon providing written notice to the commission if an alternative local exchange telecommunications company has been certified to provide basic local telecommunications service or an interconnected voice over internet protocol service provider has been registered to provide service under section 392.550, and is providing such service, or if two or more commercial mobile service providers providing wireless two-way voice communications services are providing services, in any part of the small incumbent company's service area, and the incumbent company shall remain subject to regulation under this section after such election.

3. Except as otherwise provided in this section, the maximum allowable prices established for a company under subsection 1 of this section shall be those in effect on December thirty-first of the year preceding the year in which the company is first subject to regulation under this section. Tariffs authorized under subsection 9 of this section shall be phased in as provided under such tariffs as approved by the commission.

4. (1) Except as otherwise provided in subsections 8 and 9 of this section and section 392.248, the maximum allowable prices for exchange access and basic local telecommunications services of a small, incumbent local exchange telecommunications company regulated under this section shall not be changed for a period of twelve months after the date the company is subject to regulation under this section. Except as otherwise provided in subsections 8 and 9 of this section and section 392.248, the maximum allowable prices for exchange access and basic local telecommunications services of a large, incumbent local exchange telecommunications company regulated under this section shall not be changed prior to January 1, 2000. Thereafter, the maximum allowable prices for exchange access and basic local telecommunications services of an incumbent local exchange telecommunications company shall be annually changed by the following methods:

(a) By the change in the Consumer Price Index (CPI), as published by the United States Department of Commerce or its successor agency for the preceding twelve months; provided however, that if such a change in the CPI for the preceding twelve months is negative, upon request by the company and approval by the commission for good cause shown, the commission may waive any requirement to reduce prices of exchange access and basic local telecommunications service and those existing prices shall remain the maximum allowable prices for purposes of this section until the next annual change. All revenues that are attributable to a CPI reduction waiver shall be used for the purposes approved by the commission to benefit local exchange ratepayers in a specific exchange or exchanges, including but not limited to expanded local calling scopes;

(b) Notwithstanding the foregoing, upon a finding that a company that is subject to price-cap regulation has telecommunications services in one or more exchanges classified as competitive, the company may increase the maximum allowable rate for basic local telecommunications service in noncompetitive exchanges at a level not to exceed the statewide average for basic local telecommunications service in the competitively classified exchanges of that company, provided that any annual increase in rates for residential basic local telecommunications service shall not exceed two dollars per line per month for a period of four years.

(2) The commission shall approve a change to a maximum allowable price or make a determination regarding a request for waiver filed pursuant to subdivision (1) of this subsection within forty-five days of filing of notice by the local exchange telecommunications company. An incumbent local exchange telecommunications company shall file a tariff to reduce the rates charged for any service in any case in which the current rate exceeds the maximum allowable price established under this subsection.

(3) An incumbent local exchange telecommunications company may change the rates for its services, consistent with the provisions of subsections 2 through 5 of section 392.200, but not to exceed the maximum allowable prices, by filing tariffs which shall be approved by the commission within ten days, provided that any such rate is not in excess of the maximum allowable price established for such service under this section.

5. Each telecommunications service offered to business customers, other than exchange access service, of an incumbent local exchange telecommunications company regulated under this section shall be classified as competitive in any exchange in which at least two nonaffiliated entities in addition to the incumbent local exchange company are providing basic local telecommunications service to business or residential customers within the exchange. Each telecommunications service offered to residential customers, other than exchange access service, of an incumbent local exchange telecommunications company regulated under this section shall be classified as competitive in an exchange in which at least two nonaffiliated entities in addition to the incumbent local exchange company are providing basic local telecommunications service to residential customers within the exchange. For purposes of this subsection and not for purposes of defining the commission's jurisdiction:

(1) Commercial mobile service providers as identified in 47 U.S.C. Section 332(d)(1) and 47 C.F.R. Parts 22 or 24 shall be considered as entities providing basic local telecommunications service, provided that only one such nonaffiliated provider shall be considered as providing basic local telecommunications service within an exchange. If the commercial mobile service provider does not designate customers by business or residential class, such provider will be deemed to be providing service to both business and residential customers;

(2) Any entity providing local voice service in whole or in part over telecommunications facilities or other facilities in which it or one of its affiliates have an ownership interest shall be considered as providing basic local telecommunications service regardless of whether such entity is subject to regulation by the commission, including any interconnected voice over internet protocol service provider registered under section 392.550. A provider of local voice service that requires the use of a third party, unaffiliated broadband network or dial-up internet network for the origination of local voice service shall not be considered a basic local telecommunications service provider. For purposes of this subsection only, a "broadband network" is defined as a connection that delivers services at speeds exceeding two hundred kilobits per second in at least one direction;

(3) Regardless of the technology utilized, "local voice service" shall mean two-way voice service capable of receiving calls from a provider of basic local telecommunications services as defined by subdivision (4) of section 386.020;

(4) Telecommunications companies only offering prepaid telecommunications service or only reselling telecommunications service as defined in subdivision (54) of section 386.020 in the exchange being considered for competitive classification shall not be considered entities providing basic telecommunications service;

(5) "Prepaid telecommunications service" shall mean a local service for which payment is made in advance that excludes access to operator assistance and long distance service;

(6) Upon request of an incumbent local exchange telecommunications company seeking competitive classification of its services under this subsection, the commission shall, within thirty days of the request, determine whether there are at least two entities providing basic local telecommunications service in an exchange and if so shall approve tariffs designating all such services other than exchange access service as competitive within such exchange. Notwithstanding any other provision of this subsection, any incumbent local exchange company may petition the commission for competitive classification within an exchange based on competition from any entity providing local voice service in whole or in part by using its own telecommunications facilities or other facilities or the telecommunications facilities or other facilities of a third party, including those of the incumbent local exchange company as well as providers that rely on an unaffiliated third-party internet service. The commission shall approve such petition within sixty days. The commission shall maintain records of certified and registered providers of local voice service, including those providers who provide local voice service over their own facilities, or through the use of facilities of another provider of local voice service. In reviewing an incumbent local exchange telephone company's request for competitive status in an exchange, the commission shall consider their own records concerning ownership of facilities and shall make all inquiries as are necessary and appropriate from certified and registered providers of local voice service to determine the extent and presence of local voice providers in an exchange. If the services of an incumbent local exchange telecommunications company are classified as competitive under this subsection, the local exchange telecommunications company may thereafter adjust its rates for such competitive services upward or downward as it determines appropriate in its competitive environment, upon filing tariffs which shall become effective within the time lines identified in section 392.500. The commission may not more than once every two years review those exchanges where an incumbent local exchange carrier's services have been classified as competitive, to determine if the conditions of this subsection for competitive classification continue to exist in the exchange and if the commission determines, after hearing, that such conditions no longer exist for the incumbent local exchange telecommunications company in such exchange, it shall reimpose upon the incumbent local exchange telecommunications company, in such exchange, the provisions of paragraph (c) of subdivision (2) of subsection 4 of section 392.200 and the new maximum allowable prices for basic local telecommunications service in such exchange shall be established by the provisions of subsection 4 of this section;

(7) Upon a finding that fifty-five percent or more of an incumbent local exchange telecommunications company's total subscriber access lines are in exchanges where such company's services have been declared competitive, the incumbent local exchange telecommunications company shall be deemed competitive and shall no longer be subject to price-cap regulation, except that rates charged for basic local telecommunications service in exchanges that were noncompetitive immediately prior to this finding can be increased to a rate that is no higher than the statewide average rate for basic local telecommunications service in the incumbent local exchange company's competitively classified exchanges for a period of four years. During the four year period, any annual increase in rates for residential basic local telecommunications service shall not exceed two dollars per line per month. Rates charged for exchange access service by an incumbent local exchange telecommunications company deemed competitive shall not exceed the rates charged at the time the company was deemed competitive;

(8) An incumbent local exchange telecommunications company deemed competitive under this section and all alternative local exchange telecommunications companies shall not be required to comply with customer billing rules, network engineering and maintenance rules, and rules requiring the recording and submitting of service objectives or surveillance levels established by the commission, but shall be subject to commission authority to hear and resolve customer complaints to the extent the customer complaint is based on Truth-in-Billing regulations established by the Federal Communications Commission, or network engineering and maintenance standards established within the National Electric Safety Code. In addition, the commission shall continue to have authority to hear and resolve customer complaints to the extent such complaints are based on a failure to comply with the provisions of applicable tariffs, or a failure to comply with the rules of the commission other than those rules related to customer billing, network engineering and maintenance, and service objectives and surveillance levels or a failure to provide service in a manner that is safe, adequate, usual and customary in the telecommunications industry;

(9) The commission may reimpose its customer billing rules, network engineering and maintenance rules, and rules requiring the recording and submitting of service objectives or surveillance levels, as applicable, on an incumbent local exchange telecommunications company that has been deemed competitive under this section, only upon a finding that the incumbent local exchange telecommunications company has engaged in a pattern or practice of inadequate service in these subject areas and that the reimposition of such rules is necessary to ensure the protection of consumer rights and/or the public safety. Prior to formal notice and hearing, the commission shall notify the incumbent local exchange telecommunications company of any deficiencies and provide such company an opportunity to remedy such deficiencies in a reasonable amount of time, but not less than sixty days. Should the incumbent local exchange telecommunications company remedy such deficiencies within a reasonable amount of time, the commission shall not reimpose the applicable customer billing rules, network engineering and maintenance rules, and rules requiring the recording and submitting of service objectives or surveillance levels. Should the incumbent local exchange telecommunications company fail to remedy such deficiencies, the commission shall reimpose the applicable customer billing rules, network engineering and maintenance rules, and rules requiring the recording and submitting of service objectives or surveillance levels, if it finds that:

(a) The reimposition of such rules is necessary for the protection of the majority of the incumbent local exchange telecommunications company's customers or for the public safety;

(b) No alternative or less burdensome action is adequate to protect the majority of the incumbent local exchange telecommunications company's customers; and

(c) Competitive market forces have been and will continue to be insufficient to protect the majority of the incumbent local exchange telecommunications company's customers;

(10) Should the commission determine that an emergency exists that impacts public safety or is essential for the protection of a majority of customers of all local exchange telecommunications companies operating in this state, the commission may, on an emergency basis, impose its customer billing rules, network engineering and maintenance rules, and rules requiring the recording and submitting of service objectives or surveillance levels, as applicable, on all local exchange telecommunications companies on a uniform and nondiscriminatory basis through the promulgation of emergency rules pursuant to section 536.025. The commission shall only promulgate such emergency rules after determining that:

(a) The rules are essential for the protection of a majority of customers of local exchange telecommunications companies operating in this state;

(b) No alternative or less burdensome mechanism will suffice to protect the majority of customers of local exchange telecommunications companies operating in this state; and

(c) Competitive market forces have been and will continue to be insufficient to protect the majority of customers of local exchange telecommunications companies operating in this state.

Notwithstanding the provisions of subsection 7 of section 536.025, emergency rules promulgated by the commission pursuant to this subdivision shall remain in effect until the legislature concludes its next regular legislative session following the imposition of any such rules.

6. Nothing in this section shall be interpreted to alter the commission's jurisdiction over quality and conditions of noncompetitive telecommunications services or to relieve noncompetitive telecommunications companies from the obligation to comply with commission rules relating to minimum basic local and interexchange telecommunications service.

7. A company regulated under this section shall not be subject to regulation under subsection 1 of section 392.240.

8. An incumbent local exchange telecommunications company regulated under this section may reduce intrastate access rates, including carrier common line charges, subject to the provisions of subsection 9 of this section, to a level not to exceed one hundred fifty percent of the company's interstate rates for similar access services in effect as of December thirty-first of the year preceding the year in which the company first exercises its option to rebalance rates under this subsection. Nothing in this subsection shall preclude an incumbent local exchange telecommunications company from establishing its intrastate access rates at a level lower than one hundred fifty percent of the company's interstate rates for similar access services in effect as of December thirty-first of the year preceding the year in which the company first exercises its option to rebalance rates under this subsection.

9. Other provisions of this section to the contrary notwithstanding, the commission shall allow an incumbent local exchange telecommunications company regulated under this section which reduces its intrastate access service rates pursuant to subsection 8 of this section to offset the annual revenue loss resulting from its access service rate reduction by increasing each year its monthly maximum allowable prices applicable to basic local exchange telecommunications services by an amount not to exceed one dollar fifty cents. A large incumbent local exchange telecommunications company shall not increase its monthly rates applicable to basic local telecommunications service under this subsection unless it also reduces its rates for intraLATA interexchange telecommunications services by at least ten percent in the year it first exercises its option to rebalance rates under subsection 8 of this section. The total annual revenue increase due to the increase to the monthly maximum allowable prices for basic local telecommunications service shall not exceed the total annual revenue loss resulting from the reduction to intrastate access service rates.

10. Any telecommunications company whose intrastate access costs are reduced pursuant to subsections 8 and 9 of this section shall decrease its rates for intrastate toll telecommunications service to flow through such reduced costs to its customers. The commission may permit a telecommunications company to defer a rate reduction required by this subdivision until such reductions, on a cumulative basis, reach a level that is practical to flow through to its customers.

11. All nonbasic telecommunications services of an incumbent local exchange telecommunications company that is subject to price-cap regulation shall be exempt from limitations on maximum allowable prices.

12. The commission shall permit an incumbent local exchange telecommunications company regulated under this section to determine and set its own depreciation rates which shall be used for all intrastate regulatory purposes. Provided, however, that such a determination is not binding on the commission in determining eligibility for or reimbursement under the universal service fund established under section 392.248.

13. Prior to January 1, 2006, the commission shall determine the weighted, statewide average rate of nonwireless basic local telecommunications services as of August 28, 2005. The commission shall likewise determine the weighted, statewide average rate of nonwireless basic local telecommunications services two years and five years after August 28, 2005. The commission shall report its findings to the general assembly by January 30, 2008, and provide a second study by January 30, 2011. If the commission finds that the weighted, statewide average rate of nonwireless basic local telecommunications service in 2008 or 2011 is greater than the weighted, statewide average rate of nonwireless basic local telecommunications service in 2006 multiplied by one plus the percentage increase in the Consumer Price Index for all goods and services for the study periods, the commission shall recommend to the general assembly such changes in state law as the commission deems appropriate to achieve the purposes set forth in section 392.185. In determining the weighted, statewide average rate of nonwireless basic local telecommunications service, the commission shall exclude rate increases to nonwireless basic telecommunications service permitted under subsections 8 and 9 of this section and section 392.240 or exogenous costs incurred by the providers of nonwireless basic local telecommunications service.

(L. 1996 S.B. 507, A.L. 2005 S.B. 237, A.L. 2006 S.B. 1066, A.L. 2008 H.B. 1779)

Petition for rate relief--relief to be granted, when.

392.246. Notwithstanding the provisions of subsection 2 of section 392.245, an incumbent local exchange telecommunications company regulated under section 392.245 may petition the commission for rate relief under the provisions of sections 392.220 and 392.230, and the commission may grant such rate relief if it determines that the financial condition of such incumbent local exchange telecommunications company's Missouri jurisdictional operations is such that the company cannot attract capital on reasonable terms or that the ability of that incumbent local exchange telecommunications company to continue to provide safe and adequate universal telecommunications service is threatened. If the commission shall be of the opinion that the maximum rates, charges or rentals chargeable by such telecommunications company are insufficient to yield reasonable compensation for the service rendered, the commission shall with due regard, among other things, to a reasonable average return upon the value of the property actually used in the public service and of the necessity of making reservation out of income for surplus and contingencies, determine the just and reasonable rates, charges and rentals to be thereafter observed and in force as the maximum to be charged, demanded, exacted or collected for the performance or rendering of the service specified and shall fix the same by order served upon such incumbent local exchange telecommunications company, and thereafter no increase in any rate, charge or rental so fixed shall be made without the consent of the commission.

(L. 1996 S.B. 507)

Universal service board created, purpose, powers, duties,members--assessment, failure to pay, penalty--eligibility forfunding--carriers of last resort--commission's duties--limitedliability.

392.248. 1. In order to ensure just, reasonable, and affordable rates for reasonably comparable essential local telecommunications services throughout the state, there is hereby established the "Universal Service Board" which shall consist of the members of the public service commission and the public counsel, and which shall be incorporated as a not-for-profit, public benefit corporation in the manner provided pursuant to chapter 355, except as otherwise provided in this section. Consistent with rules adopted by the commission, the universal service board shall create a universal service fund. The universal service board shall supervise the management of the universal service fund. Funds deposited in the universal service fund are not state funds. The commission shall adopt rules governing the operations of the state universal service fund within three months of the adoption of the rules adopted by the Federal Communication Commission for the federal Universal Service Fund. Nothing in the rules adopted by the commission shall be inconsistent with the support mechanisms established for the federal Universal Service Fund, but the commission may adopt any additional definitions and standards it believes are necessary to preserve and advance universal service in the state of Missouri. The commission shall adopt rules governing the operations of the universal service fund and the operation of the universal service board. Meetings of the universal service board shall be open meetings pursuant to chapter 610. The universal service board shall also retain an independent neutral fund administrator who will be responsible for the day-to-day operations of the universal service fund. The fund administrator shall be a fiduciary with trust company powers. The universal service board shall provide for periodic review of the fund administrator and the opportunity for selection of an alternate fund administrator no less frequently than every four years. The agency, individual, firm, partnership, or corporation that is selected by the commission as the neutral administrator of the universal service fund may neither contribute to nor receive disbursements from the universal service fund, except as provided in subsection 2 of this section. The administrator may not have any financial interest in a telecommunications company, as defined in section 386.020. The commission shall cause the books and records of the universal service fund administrator to be independently audited on an annual basis. The independent audit shall be paid for from funds held in the universal service fund.

2. The commission shall adopt and enforce rules to be implemented by the universal service board, governing the system of funding and disbursing funds from the universal service fund in a manner that does not grant a preference or competitive advantage to any telecommunications company or subject a telecommunications company to prejudice or disadvantage. Funds from the universal service fund shall only be used:

(1) To ensure the provision of reasonably comparable essential local telecommunications service, as that definition may be updated by the commission by rule, throughout the state including high-cost areas, at just, reasonable and affordable rates;

(2) To assist low-income customers and disabled customers in obtaining affordable essential telecommunications services; and

(3) To pay the reasonable, audited costs of administering the universal service fund.

3. The universal service fund shall be funded through assessments on all telecommunications companies in the state which shall be based on Missouri jurisdictional telecommunications services revenue and other nondiscriminatory factors as determined by the commission. Such assessments shall be paid to the universal service board. A telecommunications company regulated under section 392.245 may, upon providing written notice to the commission, increase the maximum allowable prices for any or all of its telecommunications services except residential basic local telecommunications services above those maximum allowable prices otherwise established in section 392.245 by an amount not to exceed the amount required to recover fifty percent of its assessment under this section. Any increases in the maximum allowable prices for exchange access and basic local telecommunications services other than residential basic local telecommunications services shall be calculated to recover revenues in the same percentage as the revenues from such services bear to such company's total revenues for nonbasic, exchange access and basic local other than residential telecommunications services for the preceding twelve months. A telecommunications company regulated under section 392.245 may seek to have the remaining fifty percent of its assessment under this section included in its funding requirements under this section. The commission shall establish the level of the universal service fund funding requirement necessary to fund the purposes set forth in subsection 2 of this section. The universal service fund funding requirements shall be paid by the universal service board in accordance with procedures approved by the commission. A telecommunications company that fails to pay an assessment that is due and payable pursuant to this section may have its certificate revoked or be required to pay appropriate penalties under chapter 386 after notice and hearing.

4. To facilitate provision of essential local telecommunications service, the commission shall determine whether and to what extent any telecommunications company in the state providing essential local telecommunications service in any part of the state, shall be eligible to receive funding. Eligibility shall be determined as follows:

(1) A telecommunications company's eligibility to receive support for high-cost areas from the universal service fund shall be conditioned upon:

(a) The telecommunications company offering essential local telecommunications service, using its own facilities, in whole or in part, throughout an entire high-cost area and having carrier of last resort obligations in that high-cost area; and (b) The telecommunications company charging a rate not in excess of that set by the commission for essential services in a particular geographic area; and

(2) A telecommunications company's eligibility to receive support to assist low-income customers and disabled customers shall be conditioned on the company's providing essential local telecommunications services to such customers pursuant to the discounted rate established by the commission for such customers. Distributions from the universal service fund shall be made by the universal service board in accordance with rules approved by the commission.

5. In local exchange areas subject to competition for essential local telecommunications service, the incumbent local exchange telecommunications company shall be designated as a carrier of last resort for essential local telecommunications service. The commission may, consistent with section 214(e)(2) of the federal Telecommunications Act of 1996, after notice and hearing, designate one or more additional carriers of last resort for any exchange or other area designated by the commission upon a finding that such designation is in the public interest. In exchanges where the commission has designated more than one carrier of last resort, the commission may permit a local exchange telecommunications company to relinquish such obligation, consistent with section 214(e)(4) of the federal Telecommunications Act of 1996, upon a finding that at least one carrier of last resort will continue to serve that area. In local exchange areas not subject to competition for essential local telecommunications service, the incumbent local exchange telecommunications company shall continue to act as the carrier of last resort.

6. In determining whether, and to what extent, universal service fund funding is required to facilitate provision of essential local telecommunications service, the commission shall:

(1) Determine the definition of essential local telecommunications service no later than three months after the adoption of the essential local exchange telecommunications service definition for the federal Universal Service Fund, and consider revision of the definition on a periodic basis not to exceed every three years thereafter, with the goal that every citizen of this state shall have access to a wider range of services, that are reasonably comparable between urban and rural areas, at rates that are reasonably comparable between urban and rural areas;

(2) Upon request from an eligible telecommunications company for assistance from the universal service fund for a high-cost area, determine if the high-cost area qualifies for assistance from the universal service fund. The commission shall review its determination that a high-cost area qualifies for assistance from the universal service fund no less frequently than once every five years;

(3) Determine for each requesting, eligible local exchange telecommunications company, by high-cost area, the costs of providing essential local telecommunications services in those high-cost areas and establish support payments necessary to such companies to ensure just, reasonable and affordable rates for essential telecommunications service. The commission shall review such support payments no less frequently than once every five years; provided, however, that if the commission adopts a different definition of essential local telecommunications service, pursuant to subdivision (1) of this subsection, then the commission shall review and adjust accordingly the previously authorized support payments in order to ensure just, reasonable and affordable rates for essential telecommunications service, as revised by commission rule. In determining and reviewing such support payments, the commission shall ensure that no telecommunications company receives more or less support than necessary to further the purposes established in subsection 2 of this section; (4) Establish a standard to determine whether and to what extent particular end-user customers, without regard to location within the state, may be eligible for assistance in paying for essential local telecommunications service.

7. The commission shall arrange for the time and place for the initial organizational meeting of the universal service board.

8. The universal service board shall submit to the commission a plan of operation. After notice and hearing, the commission shall approve the plan of operation, provided that it does not grant a preference or competitive advantage to any telecommunications company or subject a telecommunications company to prejudice or disadvantage. In its plan, the universal service board shall establish procedures for the handling and accounting of assets and establish procedures for the collection of assessments from all telecommunications companies to provide for universal service payments and for administrative expenses.

9. The universal service board shall have authority to:

(1) Enter into contracts as are necessary or proper to carry out the provisions of this section; and

(2) Sue or be sued, including taking any legal actions necessary or proper for recovery of any assessments.

10. No member of the universal service board shall be civilly liable, either jointly or separately, as a result of any act, omission or decision in performance of the member's duties as specifically required by this section. Such immunity shall not attach for any intentional or reckless act affecting the property or rights of any person.

11. Nothing in this section shall require the commission, the universal service board, the universal service fund administrator, or any other person or agency to take any actions that are inconsistent with federal statutes, administrative rules, or court decisions concerning provision of essential local telecommunications service.

12. The commission and the universal service board may do all things necessary and convenient to implement and administer the universal service fund.

13. In the event of a Federal Communications Commission order, rule or policy announced no later than December 31, 1997, pursuant to section 254(a)(2) of the federal Telecommunications Act of 1996, the effect of which is to change the federal Universal Service Fund revenues of an incumbent local exchange telecommunications company, the commission shall either increase the maximum allowable prices for basic local telecommunications service or increase the company's recovery from the state universal service fund or a combination thereof to replace the reasonably projected change in revenues. The commission shall review the continuing need for such revenues in its periodic reviews pursuant to subdivision (3)* of subsection 6 of this section.

(L. 1996 S.B. 507)

*Words "subdivision 3 of subsection 6" appear in original rolls.

Power of commission to order repairs or changes.

392.250. Whenever the commission shall be of the opinion, after a hearing had upon its own motion or upon complaint, that repairs or improvements to or changes in any telecommunications facilities ought reasonably to be made, or that any additions should reasonably be made thereto, in order to promote the convenience of the public or employees, or in order to secure adequate service or facilities for telecommunications service, the commission shall make and serve an order directing that such repairs, improvements, changes or additions be made within a reasonable time and in a manner to be specified therein, and every telecommunications company is hereby required and directed to make all repairs, improvements, changes and additions required of it by any order of the commission served upon it.

(RSMo 1939 § 5672, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5216; 1919 § 10504

Power of commission to ascertain valuation of property of telegraphand telephone corporations.

392.270. 1. The commission shall have the power to ascertain the value of the property of every telecommunications company in this state and every fact which in its judgment may or does have any bearing on such value. The commission shall have power to make revaluations from time to time and to ascertain all new construction, extensions and additions to the property of every telecommunications company.

2. For the purpose of ascertaining the matters and things specified in this section, concerning the value of the property of telecommunications companies, the commission may cause a hearing or hearings to be held at such time or times and place or places as the commission may designate. Before any hearing is had, the commission shall give the telecommunications company affected thereby at least thirty days' written notice, specifying the time and place of such hearing, and such notice shall be sufficient to authorize the commission to inquire into the matters designated in this section, but this provision shall not prevent the commission from making any preliminary examination or investigation into the matters herein referred to, or from inquiring into such matters in any other investigation or hearing. All telecommunications companies affected shall be entitled to be heard and to introduce evidence at such hearing or hearings. The commission is empowered to resort to any other source of information available, which information shall be offered in evidence on such hearing. The evidence introduced at such hearing or hearings shall be reduced to writing and certified under the seal of the commission. The commission shall make and file its findings of fact in writing upon all matters concerning which evidence shall have been introduced before it which in its judgment have bearing on the value of the property of the telecommunications company affected. Such findings shall be subject to review by any circuit court of this state in the same manner and within the same time as other orders and decisions of the commission. The findings of the commission so made and filed, when properly certified under the seal of the commission, shall be admissible in evidence in any action, proceeding or hearing before the commission or any court in which the commission, the state or any officer, department, or institution thereof, or any county, city, municipality or other body politic and the telecommunications company affected may be interested, whether arising under the provisions of this law or otherwise, and such findings, when so introduced, shall be conclusive evidence of the facts therein stated as of the date therein stated under conditions then existing, and such facts can only be controverted by showing a subsequent change in conditions bearing upon the facts therein determined. The commission may from time to time cause further hearings and investigations to be had for the purpose of making revaluations or ascertaining the value of any betterments, improvements, additions or extensions made by any telecommunications company subsequent to any prior hearing or investigation and may examine into all matters which may change, modify or affect any finding of fact previously made, and may at such time make findings of fact supplementary to those previously made. Such hearings shall be had upon the same notice and be conducted in the same manner, and the findings so made shall have the same force and effect as is provided herein for such original notice, hearings and findings, however, such findings made at such supplemental hearings or investigations shall be considered in connection with and as a part of the original findings except insofar as such supplemental findings shall change or modify the findings made at the original hearing or investigation.

3. Notwithstanding this section or any other provision of this chapter or chapter 386, the commission is not required to consider evidence regarding the fair value or other measure of value of the property of a telecommunications company in any proceeding to consider and set just and reasonable rates for a telecommunications company so long as the commission considers and relies on evidence of the original cost of such property.

(RSMo 1939 § 5679, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5223; 1919 § 10511

CROSS REFERENCE:

Investigations by public service commission, generally, 386.330

Depreciation account required--application for change, informationrequired--ruling, when--minimum rates in lieu of fixed rates.

392.280. 1. The commission shall have power, after hearing, to require any or all telecommunications companies to carry a proper and adequate depreciation account in accordance with such rules and regulations and in the forms of account as the commission shall prescribe. The commission may, from time to time on its own motion or upon the application of the telecommunications company or the office of the public counsel, ascertain and determine and by order fix the proper and adequate rates of depreciation of the several classes of property of such public utility. Each telecommunications company shall conform its depreciation accounts to the rates so ascertained, determined and fixed. Upon filing the application for a change in depreciation rates, the applicant must file with the commission all information in justification of the depreciation rate changes. The commission shall rule upon any request for a change in depreciation rates within twelve months of such request, unless a general rate proceeding is pending at the time set for decision, in which case the commission may rule upon the request for a change in depreciation rates at the same time it rules upon the general rate case proceeding.

2. Notwithstanding the provisions of subsection 1 of this section, a telecommunications company may request the commission to authorize minimum depreciation rates in lieu of fixed rates, and to record depreciation expense on the basis of depreciation rates in excess of such minimum rates. The reasonableness of any request for an increase in the tariffed rates for noncompetitive telecommunications service shall be considered on the basis of the minimum authorized depreciation rates, and the depreciation expense attributed to any test period shall be calculated on the basis of the company's minimum depreciation rates regardless of the depreciation expense actually recorded by the telecommunications company. Where minimum depreciation rates have been authorized pursuant to this subsection, the commission may prescribe new minimum depreciation rates in a general rate proceeding and use those new minimum depreciation rates to determine the reasonableness of tariffed rates for telecommunications service in that general rate proceeding. In any proceeding to consider a request for an increase in the tariffed rates for telecommunications service, the telecommunications company shall utilize for the purposes of such proceeding the depreciation reserve levels which have occurred on the basis of the recorded depreciation expenses.

(RSMo 1939 § 5680, A.L. 1987 H.B. 360, A.L. 1993 S.B. 160)

Prior revisions: 1929 § 5224; 1919 § 10512

Right to issue stocks, bonds and notes is subject to regulation bystate--exception--limitation on powers of commission.

392.290. 1. The power of telecommunications companies to issue stocks, bonds, notes and other evidence of indebtedness and to create liens upon their property situated in this state is a special privilege, the right of supervision, regulation, restriction and control of which is and shall continue to be vested in the state, and such power shall be exercised as provided by law and under such rules and regulations as the commission may prescribe.

2. Notwithstanding any other provision of this chapter to the contrary, no telecommunications company operating in Missouri and one or more other states shall be required to obtain authorization from the commission to issue stocks, bonds, notes or any other evidence of indebtedness; nor shall any such telecommunications company be required to obtain authorization from the commission in order to encumber the whole or any part of its franchise line or system.

(RSMo 1939 § 5674, A.L. 1986 S.B. 625, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5218; 1919 § 10506

Transfer of property and ownership of stock without consent ofcommission prohibited--impact of transfer on local tax revenues,information on to be furnished, to whom, procedure.

392.300. 1. No telecommunications company shall hereafter sell, assign, lease, transfer, mortgage or otherwise dispose of or encumber the whole or any part of its franchise, facilities or system, necessary or useful in the performance of its duties to the public, nor by any means, direct or indirect, merge or consolidate such line or system, or franchises, or any part thereof, with any other corporation, person or public utility, without having first secured from the commission an order authorizing it so to do. Every such sale, assignment, lease, transfer, mortgage, disposition, encumbrance, merger or consolidation made other than in accordance with the order of the commission authorizing the same shall be void. The permission and approval of the commission to the exercise of a franchise or permit under this chapter, or the sale, assignment, lease, transfer, mortgage or other disposition or encumbrance of a franchise or permit under this section shall not be construed to revive or validate any lapsed or invalid franchise or permit, or to enlarge or add to the powers or privileges contained in the grant of any franchise or permit, or to waive any forfeiture. Any person seeking any order under this subsection authorizing the sale, assignment, lease, transfer, merger, consolidation, or other disposition, direct or indirect, of any telecommunications company shall, at the time of application for any such order, file with the commission a statement, in such form, manner and detail as the commission shall require, as to what, if any, impact such sale, assignment, lease, transfer, merger, consolidation, or other disposition will have on the tax revenues of the political subdivisions in which any structures, facilities or equipment of the companies involved in such disposition are located. The commission shall send a copy of all information obtained by it as to what, if any, impact such sale, assignment, lease, transfer, merger, consolidation, or other disposition will have on the tax revenues of various political subdivisions to the county clerk of each county in which any portion of a political subdivision which will be affected by such disposition is located. Nothing in this subsection contained shall be construed to prevent the sale, lease or other disposition by any telecommunications company of a class designated in this subsection of property which is not necessary or useful in the performance of its duties to the public, and any sale of its property by such company shall be conclusively presumed to have been of property which is not useful or necessary in the performance of its duties to the public, as to any purchaser of such property in good faith for value.

2. Except where stock shall be transferred or held for the purpose of collateral security, no stock corporation, domestic or foreign, other than a telecommunications company, shall, without the consent of the commission, purchase or acquire, take or hold more than ten percent of the total capital stock issued by any telecommunications company organized or existing under or by virtue of the laws of this state, except that a corporation now lawfully holding a majority of the capital stock of any telecommunications company may, without the consent of the commission, acquire and hold the remainder of the capital stock of such telecommunications company, or any portion thereof. Nothing herein contained shall be construed to prevent the holding of stock heretofore lawfully acquired, or to prevent, upon the surrender or exchange of such stock pursuant to a reorganization plan, the purchase, acquisition, taking or holding of a proportionate amount of stock of any new corporation organized to take over, at foreclosure or other sale, the property of any corporation whose stock has been thus surrendered or exchanged. Every contract, assignment, transfer or agreement for transfer of any stock by or through any person or corporation to any corporation in violation of any provision of this chapter shall be void and of no effect, and no such transfer or assignment shall be made upon the books of any such telecommunications company, or shall be recognized as effective for any purpose.

(RSMo 1939 § 5675, A.L. 1984 H.B. 1477, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5219; 1919 § 10507

Approval of issues of stocks, bonds and other forms of indebtedness.

392.310. 1. A telecommunications company may, when authorized by order of the commission, and not otherwise, issue stock, bonds, notes or other evidence of indebtedness payable at periods of more than twelve months after the date thereof when necessary for the acquisition of property, the construction, completion, extension or improvement of its facilities or the improvement or maintenance of its service within the state, or for the discharge or lawful refunding of its obligations, or reimbursement of moneys actually expended from the income from any source, within five years next prior to the filing of the application therefor, or for any of such purposes; provided, however, that no order shall be granted authorizing such issue for reimbursement of moneys expended from income for betterments or replacements unless the applicant shall have kept its accounts and vouchers of such expenditures in such manner as to enable the commission to ascertain the amount of moneys so expended and the purposes for which such expenditures were made.

2. The commission may by order authorize the issue of bonds, notes or other evidence of indebtedness for the reimbursement of moneys heretofore actually expended from income for any of the purposes herein specified. The order of the commission shall fix the amount of any such issue and the purposes to which it or its proceeds are to be applied and recite that in the opinion of the commission the money, property or labor procured or to be procured or paid for by such issue or its proceeds has been or is reasonably required for the purposes specified in the order, and that such purposes are in no part reasonably chargeable to operating expenses or to income except in the case of bonds, notes or other evidence of indebtedness as may be permitted in the order.

3. For the purpose of enabling the commission to determine whether it should issue such an order the commission shall make such inquiry or investigation, hold such hearings and examine such witnesses, books, papers, documents or contracts as it may determine of importance in enabling it to reach a determination.

4. No such company shall, without the consent of the commission, apply any such issue or its proceeds to any purpose not specified in the order. Such telecommunications company may issue notes for proper business purposes and not in violation of any provision of this chapter, or of any other law, payable at periods of not more than twelve months, without the consent of the commission; but no such note shall, in whole or in part, directly or indirectly, be refunded by any issue of stock or bonds, or by any evidence of indebtedness running for more than twelve months, without the consent of the commission.

5. No telecommunications company shall be required, however, to apply to the commission for authority to issue stocks, bonds, notes or other evidence of indebtedness except for the acquisition of property, the construction, completion, extension or improvement of its facilities, or the improvement or maintenance of its service within the state, or the discharge or refunding of obligations, or reimbursement of moneys actually expended for such purposes.

6. The commission shall have no power to authorize the capitalization of any franchise or right to be a corporation, or to authorize the capitalization of any franchise, or the right to own, operate or enjoy any franchise whatsoever in excess of the amount (exclusive of any tax or annual charge) actually paid to the state or any political subdivision thereof, as the consideration of the grant of such franchise or right, nor shall the corporate stock of the corporation formed by the merger or consolidation of two or more other corporations exceed the sum of the capital stock of the corporation so consolidated, at the par value thereof, or such sum and any additional sum actually paid in cash; nor shall any contract for consolidation or lease be capitalized in the stock of any corporation whatever; nor shall any corporation hereafter issue any bonds against or as a lien upon any contract for consolidation or merger.

(RSMo 1939 § 5676, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5220; 1919 § 10508

Certificate of commission to be recorded--stock dividends, permittedwhen.

392.320. 1. No telecommunications company governed by the provisions of this chapter shall issue any stocks, bonds, notes or other evidence of indebtedness, for money, property or services, either directly or indirectly, nor shall it receive any money, property or services in payment of the same, either directly or indirectly, until there shall have been recorded upon the books of such corporation or person the certificate of the commission herein provided for.

2. No telecommunications company governed by the provisions of this chapter shall declare any stock, bond or scrip dividend or divide the proceeds of the same of any stock, bond or scrip among its stockholders unless authorized by the commission so to do.

(RSMo 1939 § 5677, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5221; 1919 § 10509

Account for disposition of proceeds--issue void, when,exception--penalties--state not liable.

392.330. 1. The commission shall have the power to require every telecommunications company to account for the disposition of the proceeds of all sales of stocks, bonds, notes and other evidence of indebtedness, in such form and detail as it may deem advisable, and to establish such rules and regulations as it may deem reasonable and necessary to ensure the disposition of such proceeds for the purpose or purposes specified in its order. No rule or portion of a rule promulgated under the authority of this chapter shall become effective unless it has been promulgated pursuant to the provisions of section 536.024.

2. All stock and every bond, note or other evidence of indebtedness of a telecommunications company issued without an order of the commission authorizing the same then in effect shall be void, and likewise all stock and every bond, note or other evidence of indebtedness of a telecommunications company issued with the authorization of the commission, but not conforming in its provisions to the provisions, if any, which it is required by the order of authorization of the commission to contain, shall be void; but no failure in any other respect to comply with the terms or conditions of the order of authorization of the commission shall render void any stock or any bond, note or other evidence of indebtedness, except as to a corporation or person taking the same otherwise than in good faith and for value and without actual notice.

3. Every telecommunications company which, directly or indirectly, issues or causes to be issued any stock, or bond, note or other evidence of indebtedness, in nonconformity with the order of the commission authorizing the same, or contrary to the provisions of this chapter, or of the constitution of this state, or which applies the proceeds from the sale thereof, or any part thereof, to any purpose other than the purpose or purposes specified in the commission's order in excess of the amount in such order authorized for the purpose, is subject to a penalty of not less than five hundred dollars nor more than twenty thousand dollars for each offense.

4. Every officer, agent or employee of a telecommunications company and every other person who knowingly authorizes, directs, aids in, issues or executes, or causes to be issued or executed, any stock, bond, note or other evidence of indebtedness, in nonconformity with the order of the commission authorizing the same, or contrary to the provisions of sections 392.190 to 392.360, or to the constitution of this state, or who, in any proceeding before the commission, knowingly makes any false statement or representation or with knowledge of its falsity files or causes to be filed with the commission any false statement or representation, which said statement or representation so made, filed or caused to be filed, may tend in any way to influence the commission to make an order authorizing the issue of any stock, or any bond, note or other evidence of indebtedness, or which results in the procuring from the commission the making of any such order, or who, with knowledge that any false statement or representation was made to the commission, in any proceeding, tending in any way to influence the commission to make such order, issues or executes or negotiates, or causes to be issued or executed or negotiated any such stock, or bond, note or other evidence of indebtedness, or who, directly or indirectly, knowingly applies, or causes or assists to be applied, the proceeds, or any part thereof, from the sale of any stock, bond, note or other evidence of indebtedness, to any purpose not specified in the commission's order, or to any purpose specified in the commission's order in excess of the amount authorized for such purpose, or who, with knowledge that any stock, or bond, note or other evidence of indebtedness has been issued or executed in violation of any of the provisions of this chapter, negotiates, or causes to be negotiated, any stock, bond, note or other evidence of indebtedness, shall be deemed guilty of a felony, and upon conviction shall be punished by a fine of not less than one thousand dollars nor more than five thousand dollars, or by imprisonment for not less than two years nor more than five years, or by both such fine and imprisonment.

5. No provision of this chapter, and no deed or act done or performed under or in connection therewith, shall be held or construed to obligate the state of Missouri, to pay or guarantee, in any manner whatsoever, any stock, or bond, note or other evidence of indebtedness, authorized, issued or executed under the provisions of sections 392.190 to 392.360.

6. All stocks, and every bond, note or other evidence of indebtedness issued by any public utility after this chapter takes effect, upon the authority of any articles of incorporation or amendments thereto or vote of the stockholders or directors filed, taken or had, or other proceedings taken or had, previous to the taking effect of this law, shall be void, unless an order of the commission authorizing the issue of such stocks, bonds, notes or other evidences of indebtedness shall have been obtained from the commission prior to such issue. The commission may by its order impose such condition or conditions as it may deem reasonable and necessary.

7. Notwithstanding the other provisions of this section, the commission can approve all issues of stock, bonds, notes or other evidence of indebtedness of a telecommunications company which were issued without prior approval when it can be shown that the stocks, bonds, notes or other evidence of indebtedness were issued for purposes authorized by section 392.310, and were issued in good faith without knowledge of the requirement of obtaining prior approval.

(RSMo 1939 § 5678, A.L. 1980 H.B. 1618, A.L. 1987 H.B. 360, A.L. 1995 S.B. 3)

Prior revisions: 1929 § 5222; 1919 § 10510

Reorganization.

392.340. 1. Reorganization of telecommunications companies shall be subject to the supervision and control of the commission and no such reorganization shall be had without the authorization of such commission.

2. Upon all such reorganizations the amount of capitalization, including therein all stocks and bonds and other evidence of indebtedness, shall be such as is authorized by the commission, which, in making its determination, shall not exceed the fair value of the property involved, taking into consideration its original cost of construction, duplication cost, present condition, earning power at reasonable rates and all other relevant matters and any additional sum or sums as shall be actually paid in cash except, that the commission may make due allowance for discount of bonds. Any reorganization agreement before it becomes effective shall be amended so that the amount of capitalization shall conform to the amount authorized by the commission. The commission may by its order impose such condition or conditions as it may deem reasonable and necessary.

(RSMo 1939 § 5681, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5225; 1919 § 10513

Liability for loss or damage.

392.350. In case any telecommunications company shall do or cause to be done or permit to be done any act, matter or thing prohibited, forbidden or declared to be unlawful, or shall omit to do any act, matter or other thing required to be done by this chapter or by any order or decision of the commission, such telecommunications company shall be liable to the person or corporation affected thereby for all loss, damage or injury caused thereby or resulting therefrom, and in case of recovery, if the court shall find that such an act or omission was willful, it may, in its discretion, fix a reasonable counsel or attorney's fee, which fee shall be taxed and collected as a part of the costs in the action. An action to recover for such loss, damage or injury may be brought in any court of competent jurisdiction by any such person or corporation.

(RSMo 1939 § 5666; A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5210; 1919 § 10498

Forfeiture--penalties.

392.360. Every telecommunications company, and all officers, agents and employees of any telecommunications company shall obey, observe and comply with every order, direction or requirement made by the commission, under authority of this chapter, so long as the same shall be and remain in force. Any telecommunications company which shall violate any provision of sections 392.190 to 392.530, or which fails, omits or neglects to obey, observe or comply with any order or decision or any direction or requirement of the commission, shall forfeit to the state of Missouri not to exceed the sum of five thousand dollars for each and every offense. Every violation of any such order or decision or direction or requirement, or of said sections, shall be a separate and distinct offense, and, in case of a continuing violation, every day's continuance thereof shall be and be deemed to be a separate and distinct offense.

(RSMo 1939 § 5682, A.L. 1987 H.B. 360)

Prior revisions: 1929 § 5226; 1919 § 10514

Classification of telecommunications company,services--procedure--effect of classification.

392.361. 1. As an alternative to the provisions of section 392.245, a telecommunications company, including price-cap regulated companies, may file with the commission a petition to be classified as a competitive telecommunications company or a transitionally competitive telecommunications company under this section, or to have services classified as competitive or transitionally competitive telecommunications services under this section.

2. The commission shall serve by regular mail a copy of any petition or motion filed under subsection l of this section on all telecommunications companies that have applied for authority to provide or are authorized to provide intrastate telecommunications service within this state. In response to a petition filed, the commission shall afford all interested persons reasonable notice and an opportunity to be heard to determine whether a telecommunications company or service may be subject to sufficient competition to justify a lesser degree of regulation. In making this determination, the commission shall, within nine months of the filing of the petition under this section, consider all relevant factors and shall issue written findings of fact delineating all factors considered. In any hearing involving the same telecommunications service or company, the commission may, if appropriate and if no new finding of fact is required, rely on a finding of fact made in a prior hearing.

3. The commission may classify a telecommunications company as a competitive telecommunications company upon a finding that a majority of its telecommunications services offered by such company are competitive telecommunications services.

4. If, after following the procedures required under subsection 2 of this section, the commission determines that a telecommunications service is subject to sufficient competition to justify a lesser degree of regulation and that such lesser regulation is consistent with the protection of ratepayers and promotes the public interest it may, by order, classify:

(1) The subject telecommunications service offered by a telecommunications company as a competitive telecommunications service;

(2) The subject telecommunications service offered by a noncompetitive or transitionally competitive telecommunications company as a transitionally competitive telecommunications service;

(3) The subject telecommunications company, subject to the condition set forth in subsection 3 of this section, as a competitive telecommunications company; or

(4) The subject interexchange telecommunications company as a transitionally competitive telecommunications company.

5. By its order classifying a telecommunications service as competitive or transitionally competitive or a telecommunications company as competitive or transitionally competitive, the commission may, with respect to that service or company and with respect to one or more providers of that service, suspend or modify the application of its rules or the application of any statutory provision contained in sections 392.200 to 392.340, except as provided in section 392.390.

6. If the commission suspends the application of a statutory requirement under this section, it may require a telecommunications company to comply with any conditions reasonably made necessary to protect the public interest by the suspension of the statutory requirement. The exchange access rates of an incumbent local exchange company that is declared a competitive telecommunications company shall not exceed the rates that were charged at the time the company became a competitive telecommunications company. The exchange access rates of an alternative local exchange company shall not exceed the exchange access rates of the incumbent local exchange company against whom the alternative local exchange company is competing.

7. A telecommunications company may file a petition to have a telecommunications service it then offers classified as competitive or transitionally competitive under this section no more than once every two years, unless exceptional circumstances are demonstrated. A telecommunications company shall consolidate in a single petition all telecommunications services the company then offers which it seeks to classify as competitive or transitionally competitive within two years from the date such petition is filed, unless the commission determines, for good cause shown, that a waiver of this provision should be granted.

8. Notwithstanding the foregoing or the provisions of section 392.245, intrastate operator and directory services, including directory assistance services, shall be deemed competitive on a statewide basis for all local exchange telecommunications companies.

(L. 1987 H.B. 360, A.L. 1993 S.B. 160, A.L. 2008 H.B. 1779)

Transitionally competitive telecommunications services, classifiedwhen.

392.370. After the effective date of an order of the commission which finds, pursuant to section 392.361, that a telecommunications service is sufficiently competitive to justify a lesser degree of regulation, the same, substitutable, or equivalent service offered by a transitionally competitive or noncompetitive telecommunications company shall be classified as transitionally competitive, if the telecommunications service granted a lesser degree of regulation is authorized to be provided anywhere within the certificated or service area of the transitionally competitive or noncompetitive telecommunications company. Any transitionally competitive telecommunications service offered by a noncompetitive local exchange telecommunications company shall be classified as a competitive telecommunications service no later than three years after the effective date of a tariff for such service bearing the classification "transitionally competitive". Any transitionally competitive service offered by a transitionally competitive interexchange telecommunications company shall be classified as a competitive telecommunications service no later than two years after the effective date of a tariff for such service bearing the classification "transitionally competitive". The exchange access rates of an incumbent local exchange company that is declared a competitive telecommunications company shall not exceed the rates that were charged at the time the company became a competitive telecommunications company. The exchange access rates of an alternative local exchange company shall not exceed the exchange access rates of the incumbent local exchange company against whom the alternative local exchange company is competing.

(L. 1987 H.B. 360, A.L. 2008 H.B. 1779)

Applicability of law to competitive and transitionally competitivetelecommunications companies and services.

392.380. 1. The provisions of chapter 386 and sections 392.010 to 392.360 shall be fully and equally applicable to noncompetitive telecommunications companies and services and the regulation thereof.

2. Except to the extent modified or supplemented by the specific provisions of sections 392.361 to 392.530, the provisions of chapter 386 and sections 392.010 to 392.360 are fully and equally applicable to competitive and transitionally competitive telecommunications services and to all telecommunications companies and the regulation thereof.

(L. 1987 H.B. 360)

Minimum requirements of telecommunications companies, reports to befiled with commission.

392.390. Except as provided in subsection 1 of section 392.520, a telecommunications company shall at a minimum:

(1) File annual reports with the commission as required by the commission and in a form and at times prescribed by the commission. The commission may require different forms of annual reports for different telecommunications companies;

(2) Comply with any subpoena issued by the commission, any order issued by the commission pursuant to section 386.450 and provide specific answers to any questions asked by the commission pursuant to subsection 1 of section 392.210;

(3) Comply with any reasonable requirements which shall be imposed by the commission for determining and reporting the jurisdictional nature of the telecommunications services it provides;

(4) Be subject to the provisions of sections 386.320 and 386.330; and

(5) Be subject to the provisions of subsections 2, 3, 4 and 5 of section 392.200, so far as such provisions are applicable to a telecommunications company.

(L. 1987 H.B. 360)

Noncompetitive telecommunication services, rates not to coverexpenses of competitive services, exception--complaint may be filed byanother company, purpose--commission may examine records, purpose.

392.400. 1. In permitting, approving, investigating or establishing rates, charges, classifications or tariffs for noncompetitive telecommunications services, the commission shall not allow or establish rates, charges, classifications or tariffs for noncompetitive services which in any way, directly or indirectly, recover the expenses, investment, incremental risk or increased cost of capital associated with the provision of competitive or transitionally competitive telecommunications services.

2. The commission shall, after hearing, by rule or order, establish procedures, including but not limited to accounting procedures, to be followed by all noncompetitive and transitionally competitive telecommunications companies which assist in implementing the prohibition contained in subsection 1 of this section.

3. The commission shall establish, after hearing, by rule or order, appropriate methods for calculating the costs of providing any telecommunications service offered by a noncompetitive or transitionally competitive telecommunications company and for determining whether the rates or charges for such telecommunications service are at a level equal to or greater than such cost. The commission may order any noncompetitive or transitionally competitive telecommunications company to conduct a cost study and to provide the results thereof to the commission. Any cost study provided to the commission pursuant to the provisions of this section may, in the commission's discretion, be accorded proprietary treatment at the request of such company.

4. Notwithstanding subsection 1 of this section, the commission may take into account revenues received from competitive and transitionally competitive telecommunications services in setting just and reasonable rates for noncompetitive telecommunications services offered or provided by a noncompetitive local exchange telecommunications company, but only if the total revenue received from the offering or provision of the aggregate of all competitive and transitionally competitive telecommunications services exceeds the total expense plus a reasonable return on investment attributable to the offering or provision of the aggregate of all competitive and transitionally competitive telecommunications services. Should the commission consider revenues from a competitive or transitionally competitive telecommunications service in setting just and reasonable rates for noncompetitive telecommunications service offered or provided by a noncompetitive local exchange telecommunications company, the commission shall also consider all expenses, investment, and revenues associated with the offering or provision of all competitive and transitionally competitive telecommunications services offered or provided by such telecommunications company unless the consideration of the expenses, investment, and revenues associated with the offering or provision of a particular competitive or transitionally competitive telecommunications service is otherwise prohibited by law, or the commission in its original order classifying a telecommunications service as competitive or transitionally competitive, finds that it is not in the interest of customers of noncompetitive telecommunications services for the expenses, investment, and revenues associated with a particular competitive service or transitionally competitive telecommunications service to be taken into account in setting just and reasonable rates for noncompetitive telecommunications service. If the commission finds that it is not in the interest of customers of noncompetitive telecommunications services for the expenses, investment, and revenues associated with a particular competitive service or transitionally competitive telecommunications service to be taken into account in setting just and reasonable rates for noncompetitive telecommunications service, then the noncompetitive local exchange telecommunications company shall have the option of not offering or providing that particular competitive or transitionally competitive telecommunications service.

5. It shall be unjust, unreasonable, and unlawful for a noncompetitive or transitionally competitive telecommunications company to offer or provide a competitive or transitionally competitive telecommunications service below the cost of such service as determined by the commission if the commission finds that such offering or provision of service constitutes conduct which is not consistent with the promotion of full and fair competition.

6. A telecommunications company may file a complaint as to the reasonableness or lawfulness of any rate or charge for service offered or provided by a noncompetitive or transitionally competitive telecommunications company. Nothing in this chapter shall in any way preempt, modify, exempt, abrogate or otherwise affect any right, cause of action, defense, liability, duty or obligation arising from any federal, state or local law governing unfair business practices, antitrust, restraint of trade or other anticompetitive activity.

7. In order to implement and enforce the provisions of this section the commission shall have power to examine the books and records, including but not limited to any accounts, contracts, documents, papers, outside auditor workpapers, and computer data, of any noncompetitive or transitionally competitive telecommunications company and any affiliate of a noncompetitive or transitionally competitive telecommunications company whether such affiliate is a competitive, noncompetitive, or transitionally competitive telecommunications company. The commission shall also have the power to examine the books and records, including but not limited to any accounts, contracts, documents, papers, outside auditor workpapers, and computer data, of any affiliate of a noncompetitive or transitionally competitive telecommunications company which is not a telecommunications company as defined by this chapter for the purpose of investigating any transactions or the allocation of any costs between such noncompetitive or transitionally competitive telecommunications company and such affiliate. Any sanctions for violation of this section or for violation of a commission order provided for in sections 386.360, 386.390, 386.460, 386.570, 386.580, and section 392.361, shall not be applied against a telecommunications company for failure to produce outside auditor workpapers, if the subject telecommunications company shows that the failure to produce outside auditor workpapers was due to circumstances beyond its control.

(L. 1987 H.B. 360)

Certificate of public convenience and necessity required,exception--certificate of interexchange service authority,required when--duration of certificates--temporary certificates,issued when--political subdivisions restricted from providingcertain telecommunications services or facilities.

392.410. 1. A telecommunications company not possessing a certificate of public convenience and necessity from the commission at the time this section goes into effect shall have not more than ninety days in which to apply for a certificate of service authority from the commission pursuant to this chapter unless a company holds a state charter issued in or prior to the year 1913 which charter authorizes a company to engage in the telephone business. No telecommunications company not exempt from this subsection shall transact any business in this state until it shall have obtained a certificate of service authority from the commission pursuant to the provisions of this chapter, except that any telecommunications company which is providing telecommunications service on September 28, 1987, and which has not been granted or denied a certificate of public convenience and necessity prior to September 28, 1987, may continue to provide that service exempt from all other requirements of this chapter until a certificate of service authority is granted or denied by the commission so long as the telecommunications company applies for a certificate of service authority within ninety days from September 28, 1987.

2. No telecommunications company offering or providing, or seeking to offer or provide, any interexchange telecommunications service shall do so until it has applied for and received a certificate of interexchange service authority pursuant to the provisions of subsection 1 of this section. No telecommunications company offering or providing, or seeking to offer or provide, any local exchange telecommunications service shall do so until it has applied for and received a certificate of local exchange service authority pursuant to the provisions of section 392.420.

3. No certificate of service authority issued by the commission shall be construed as granting a monopoly or exclusive privilege, immunity or franchise. The issuance of a certificate of service authority to any telecommunications company shall not preclude the commission from issuing additional certificates of service authority to another telecommunications company providing the same or equivalent service or serving the same geographical area or customers as any previously certified company, except to the extent otherwise provided by section 392.450.

4. Any certificate of public convenience and necessity granted by the commission to a telecommunications company prior to September 28, 1987, shall remain in full force and effect unless modified by the commission, and such companies need not apply for a certificate of service authority in order to continue offering or providing service to the extent authorized in such certificate of public convenience and necessity. Any such carrier, however, prior to substantially altering the nature or scope of services provided under a certificate of public convenience and necessity, or adding or expanding services beyond the authority contained in such certificate, shall apply for a certificate of service authority for such alterations or additions pursuant to the provisions of this section.

5. The commission may review and modify the terms of any certificate of public convenience and necessity issued to a telecommunications company prior to September 28, 1987, in order to ensure its conformity with the requirements and policies of this chapter. Any certificate of service authority may be altered or modified by the commission after notice and hearing, upon its own motion or upon application of the person or company affected. Unless exercised within a period of one year from the issuance thereof, authority conferred by a certificate of service authority or a certificate of public convenience and necessity shall be null and void.

6. The commission may issue a temporary certificate which shall remain in force not to exceed one year to assure maintenance of adequate service or to serve particular customers, without notice and hearing, pending the determination of an application for a certificate.

7. No political subdivision of this state shall provide or offer for sale, either to the public or to a telecommunications provider, a telecommunications service or telecommunications facility used to provide a telecommunications service for which a certificate of service authority is required pursuant to this section. Nothing in this subsection shall be construed to restrict a political subdivision from allowing the nondiscriminatory use of its rights-of-way including its poles, conduits, ducts and similar support structures by telecommunications providers or from providing to telecommunications providers, within the geographic area in which it lawfully operates as a municipal utility, telecommunications services or telecommunications facilities on a nondiscriminatory, competitively neutral basis, and at a price which covers cost, including imputed costs that the political subdivision would incur if it were a for-profit business. Nothing in this subsection shall restrict a political subdivision from providing telecommunications services or facilities:

(1) For its own use;

(2) For 911, E-911 or other emergency services;

(3) For medical or educational purposes;

(4) To students by an educational institution; or

(5) Internet-type services.

(L. 1987 H.B. 360, A.L. 1996 S.B. 507, A.L. 1997 H.B. 620, A.L. 2002 H.B. 1402, A.L. 2007 H.B. 801 merged with S.B. 22, A.L. 2008 H.B. 1426)

(2004) Section barring political subdivisions from providing telecommunication services is not preempted by Telecommunications Act of 1996. Nixon v. Missouri Municipal League, 541 U.S. 125.

Call location information to be provided in emergencies--immunity fromliability, when.

392.415. 1. Upon request, a telecommunications carrier or commercial mobile service provider as identified in 47 U.S.C. Section 332(d)(1) and 47 CFR Parts 22 or 24 shall provide call location information concerning the user of a telecommunications service or a wireless communications service, in an emergency situation, to a law enforcement official or agency in order to respond to a call for emergency service by a subscriber, customer, or user of such service, or to provide caller location information (or do a ping locate) in an emergency situation that involves danger of death or serious physical injury to any person where disclosure of communications relating to the emergency is required without delay.

2. No cause of action shall lie in any court of law against any telecommunications carrier or telecommunications service or commercial mobile service provider, or other provider of communications-related service, or its officers, employees, agents, or other specified persons, for:

(1) Providing any information, facilities, or assistance to a law enforcement official or agency in response to requests made under the circumstances of subsection 1 of this section;

(2) Providing such information, facilities, or assistance through any plan or system required by sections 190.300 to 190.340; or

(3) Any loss, damage, or other injury, whether to person or property, resulting from a disruption or loss of communication services during an emergency situation, except in cases of gross negligence, recklessness, or intentional misconduct.

3. Notwithstanding any other provision of law, nothing in this section prohibits a telecommunications carrier, commercial mobile service provider, or other provider of communications-related service from establishing protocols by which such carrier or provider could voluntarily disclose call location information.

(L. 2012 H.B. 1108, A.L. 2013 H.B. 331, A.L. 2014 S.B. 651)

Regulations, modification of, company may request by petition,when--waiver, when.

392.420. The commission is authorized, in connection with the issuance or modification of a certificate of interexchange or local exchange service authority or the modification of a certificate of public convenience and necessity for interexchange or local exchange telecommunications service, to entertain a petition to suspend or modify the application of its rules or the application of any statutory provision contained in sections 392.200 to 392.340 if such waiver or modification is otherwise consistent with the other provisions of sections 392.361 to 392.520 and the purposes of this chapter. In the case of an application for certificate of service authority to provide basic local telecommunications service filed by an alternative local exchange telecommunications company, and for all existing alternative local exchange telecommunications companies, the commission shall waive, at a minimum, the application and enforcement of its quality of service and billing standards rules, as well as the provisions of subsection 2 of section 392.210, subsection 1 of section 392.240, subsections 1 and 4 of section 392.245, and sections 392.270, 392.280, 392.290, 392.300, 392.310, 392.320, 392.330, and 392.340. Notwithstanding any other provision of law in this chapter and chapter 386, where an alternative local exchange telecommunications company is authorized to provide local exchange telecommunications services in an incumbent local exchange telecommunications company's authorized service area, the incumbent local exchange telecommunications company may opt into all or some of the above-listed statutory and commission rule waivers by filing a notice of election with the commission that specifies which waivers are elected. In addition, where an interconnected voice over internet protocol service provider is registered to provide service in an incumbent local exchange telecommunications company's authorized service area under section 392.550, the incumbent local exchange telecommunications company may opt into all or some of the above-listed statutory and commission rule waivers by filing a notice of election with the commission that specifies which waivers are elected. The commission may reimpose its quality of service and billing standards rules, as applicable, on an incumbent local exchange telecommunications company but not on a company-granted competitive status under subdivision (7) of subsection 5 of section 392.245 in an exchange where there is no alternative local exchange telecommunications company or interconnected voice over internet protocol service provider that is certificated or registered to provide local voice service only upon a finding, following formal notice and hearing, that the incumbent local exchange telecommunications company has engaged in a pattern or practice of inadequate service. Prior to formal notice and hearing, the commission shall notify the incumbent local exchange telecommunications company of any deficiencies and provide such company an opportunity to remedy such deficiencies in a reasonable amount of time, but not less than sixty days. Should the incumbent local exchange telecommunications company remedy such deficiencies within a reasonable amount of time, the commission shall not reimpose its quality of service or billing standards on such company.

(L. 1987 H.B. 360, A.L. 2008 H.B. 1779, A.L. 2013 H.B. 331 merged with S.B. 237)

Certificates to be approved, when.

392.430. Except as provided in section 392.450, the commission shall approve an application for a certificate of local exchange or interexchange service authority upon a showing by the applicant, and a finding by the commission, after notice and hearing, that the grant of authority is in the public interest.

(L. 1987 H.B. 360)

Service authority, certificate of, approved when.

392.440. Any telecommunications company offering or providing the resale of either local exchange or interexchange telecommunications service must first obtain a certificate of service authority. Except as provided in section 392.450, the commission shall approve an application for a certificate for the resale of local exchange or interexchange telecommunications service upon a showing by the applicant, and a finding by the commission, after notice and hearing, that the grant of authority is in the public interest.

(L. 1987 H.B. 360)

Requirements, approval of certificates--commission to adoptrules--modification, when--federal law not preempted.

392.450. 1. The commission shall approve an application for a certificate of local exchange service authority to provide basic local telecommunications service or for the resale of basic local telecommunications service only upon a showing by the applicant, and a finding by the commission, after notice and hearing that the applicant has complied with the certification process established pursuant to section 392.455.

2. In addition, the commission shall adopt such rules, consistent with section 253(b) of the federal Telecommunications Act of 1996 to preserve and advance universal service, protect the public safety and welfare, ensure the continued quality of telecommunications services, and safeguard the rights of consumers. Such rules, at a minimum, shall require that all applicants seeking a certificate to provide basic local telecommunications services under this section:

(1) File and maintain tariffs with the commission in the same manner and form as the commission requires of the incumbent local exchange telecommunications company with which the applicant seeks to compete; and

(2) Meet the minimum service standards as the commission requires of the incumbent local exchange telecommunications company with which the applicant seeks to compete.

3. An alternative local exchange telecommunications company which possesses a certificate of service authority to provide basic local telecommunications service as of August 28, 2008, in some but not all exchanges of the state may request the commission to modify its existing certificate to include some or all of the remaining exchanges in the state. The commission shall grant such request within thirty days of its filing as long as the alternative local exchange telecommunications company is in good standing, in all respects, with all applicable commission rules and requirements.

4. Nothing in this chapter or in chapter 386 is intended to alter the rights and obligations arising under federal law, including the interconnection and unbundling provisions of 47 U.S.C. Sections 251 and 252, irrespective of the type of technology being used by the requesting local exchange telecommunications company and whether the local exchange telecommunications company is providing telecommunications service or interconnected voice over internet protocol service, as those terms are defined in chapter 386, and the jurisdiction and authority of the commission to mediate and arbitrate disputes arising under said federal law provisions shall remain unaffected.

(L. 1987 H.B. 360, A.L. 1996 S.B. 507, A.L. 2008 H.B. 1779)

State adopts federal exemption for certain rural telephone companies.

392.451. The state of Missouri hereby adopts and incorporates in total the provisions of section 251(f)(1) of the federal Telecommunications Act of 1996 providing exemption for certain rural telephone companies.

(L. 1996 S.B. 507, A.L. 2008 H.B. 1779)

Commission to establish certification process.

392.455. Upon enactment of this section, the commission shall immediately begin a proceeding to establish a basic local telecommunications certification process. The commission may grant certificates to new entrants to provide basic local telecommunications service on a common carriage basis, subject to the provisions of sections 392.380 and 392.390. In order to preserve and advance universal service, protect the public safety and welfare, insure the continued quality of telecommunications services and safeguard the rights of consumers, such process shall include, but not be limited to:

(1) A requirement that the applicant possess sufficient technical, financial and managerial resources and abilities to provide basic local telecommunications service;

(2) A requirement that the applicant demonstrate that the services it proposes to offer satisfy the minimum standards established by the commission;

(3) A requirement that the applicant set forth the geographic area in which it proposes to offer service and demonstrate that such area follows exchange boundaries of the incumbent local exchange telecommunications company and is no smaller than an exchange;

(4) A requirement that all providers must offer basic local telecommunications service as a separate and distinct service;

(5) A requirement that the commission give due consideration to the equitable access for all Missourians, regardless of where they live or their income, to affordable telecommunications services.

(L. 1996 S.B. 507)

Abandonment of service, commission must approve--definitions--carriersof last resort, relief from obligation, when, criteria,waivers--exemption for St. Louis County*, St. Louis City,portions of Kansas City.

392.460. 1. As used in this section, the following words shall mean:

(1) "Alternative service provider", any person or entity providing local voice services, or any person or entity allowing another person or entity to use its equipment or facilities to provide local voice services, or any person or entity securing rights to select an alternative service provider for a property owner or developer. Alternative service provider shall not include an incumbent local exchange carrier providing service within its commission-approved local exchange service area;

(2) "Greenfield area", real property that requires entirely new construction of local loops or local connectivity in addition to the deployment of any necessary switching and other network equipment to serve new real property developments;

(3) "Local voice service" or "local voice services", any two-way voice service offered through any form of technology that is capable of placing calls to or receiving calls from a provider of basic local telecommunications services, including voice over internet protocol services;

(4) "Owner or developer", an entity that owns or develops a business or residential property, any condominium association or homeowner's association thereof, any person or entity having ownership in or control over the property, or any person acting on behalf of such owner or developer;

(5) "Real property", any single tenant or multitenant business or residential property, subdivisions, condominiums, apartments, office buildings, or office parks.

2. No telecommunications company authorized by the commission to provide or offer basic local or basic interexchange telecommunications service within the state of Missouri on January 1, 1984, shall abandon such service until and unless it shall demonstrate, and the commission finds, after notice and hearing, that such abandonment will not deprive any customers of basic local or basic interexchange telecommunications service or access to local voice service and is not otherwise contrary to the public interest.

3. Notwithstanding other provisions of this chapter or chapter 386, a local exchange carrier obligated under this section to serve as the carrier of last resort in greenfield areas shall automatically be relieved of such obligation and shall not be obligated to provide basic local voice service or any telecommunications service to any occupants of real property if the owner or developer of the real property, or a person acting on behalf of the owner or developer of real property, engages in any of the following acts:

(1) Permits an alternative service provider to install its facilities or equipment used to provide local voice services based on a condition of exclusion of the local exchange carrier during the construction phase of the real property;

(2) Accepts or agrees to accept incentives or rewards from an alternative service provider that are contingent upon the provision of any or all local voice services by one or more alternative service providers to the exclusion of the local exchange carrier; or

(3) Collects from the occupants or residents of the real property mandatory charges for the provision of any local voice service provided by an alternative service provider to the occupants or residents in any manner, including, but not limited to, collection through rent, fees, or dues.

4. The local exchange carrier relieved of its carrier of last resort obligation to provide basic local telecommunications service to the occupants of real property under subsection 3 of this section shall notify the commission in writing of that fact within one hundred twenty days after receiving knowledge of the existence of such fact.

5. A local exchange carrier that is not relieved of its carrier of last resort obligation under subsections 2 and 3 of this section may seek a waiver of its carrier of last resort obligation from the commission for good cause shown based on the facts and circumstances of the provision of local voice service or internet access services or video services to a particular real property. Upon petition for such relief, notice shall be given by the local exchange carrier at the same time to the relevant owner or developer. The commission shall make a determination concerning the petition on or before ninety days after such petition is filed, unless the commission determines that good cause exists to delay the determination for an additional ninety days and that such delay is not likely to have a materially adverse effect upon consumers of telecommunications services.

6. If a local exchange carrier is relieved of its carrier of last resort obligation under subsection 3 or 5 of this section, the owner or developer shall notify all occupants and any subsequent owner of the specific real property of the following:

(1) That the incumbent local exchange carrier does not have facilities installed to serve the specific real property, and that such carrier has been relieved of its carrier of last resort obligations; and

(2) The name of the person that will be providing local telecommunications service to the real property, and the type of technology that will be used to provide such service.

7. If all conditions described in subsection 3 and the conditions that form the basis for relief under subsection 5 of this section cease to exist at the property, no company is providing local voice service there, and either:

(1) The owner or developer requests in writing that the local exchange carrier make local voice service available to occupants of the real property and the owner or developer confirms in writing that all conditions described in subsections 3 and 5 of this section have ceased to exist at the property; or

(2) A petition is submitted to the local exchange carrier by at least fifty percent plus one of the residents of the real property requesting that the local exchange carrier make local voice service available to the residents and the petition confirms in writing that all conditions described in subsections 3 and 5 of this section have ceased to exist at the property;

the carrier of last resort obligation under this section shall again apply to the local exchange carrier at the real property. The local exchange carrier shall provide notice to the commission that it is assuming the carrier of last resort obligation. The local exchange carrier may require that the owner or developer pay the local exchange carrier in advance a reasonable fee to recover costs that exceed the costs that would have been incurred to construct or acquire facilities to serve customers at the real property initially. The commission may verify that the fee enables the local exchange carrier to recover its costs that exceed the costs that would have been incurred to construct or acquire facilities to serve customers at the real property initially, including, but not limited to, amounts necessary to install or retrofit any facilities or equipment, to cut or trench sidewalks and streets, and to restore roads, sidewalks, block walls, or landscapes to original conditions. The local exchange carrier shall have a reasonable period of time, but not to exceed one hundred eighty days, following the request or petition under this subsection to provide local voice service.

If the conditions described in subsection 3 of this section or the conditions that form the basis for relief under subsection 5 of this section again exist at the real property, the relief in subsection 3 or 5 of this section shall again apply.

8. When real property is located in a greenfield area, a carrier of last resort shall not automatically be excused from its obligations under subsection 3 of this section unless the alternative service provider possesses or will possess at the time of commencement of service the capability to provide local voice service or the functional equivalent of such service through any form of technology.

9. If an owner or developer of real property permits an alternative service provider to install its facilities or equipment used to provide local voice service to such property based on a condition of exclusion of the local exchange carrier, the owner or developer shall provide written notice to the purchaser of any such real property that there is an exclusion of that local exchange carrier and that the alternative service provider is the exclusive provider of service to such property.

10. An incumbent local exchange carrier shall have the right to require a payment from an owner or developer in cases where the costs of extending facilities to serve a multitenant business or residential property, including, but not limited to, apartments, condominiums, subdivisions, office buildings, or office parks are not economically reasonable. The terms and conditions applicable to such payments shall be specified in the incumbent local exchange carrier's tariffs. An incumbent local exchange carrier shall not be obligated to provide local voice service or any other telecommunications service without payment specified in the incumbent local exchange carrier's tariff.

11. Notwithstanding other provisions of this chapter or chapter 386, a telecommunications company may meet its carrier of last resort obligations and its obligations to provide or offer basic local or basic interexchange telecommunications service by providing local voice service using any technology. If a telecommunications company uses a wireless technology, such company shall meet such obligations by using a technology that provides 911 caller location technology that meets or exceeds wireless Phase II enhanced 911 rules requirements, as adopted by the Federal Communications Commission.

12. Any local exchange carrier relieved of its carrier of last resort obligation in a particular area under subsection 3 or 5 of this section shall not be deemed to have lost its general designation as carrier of last resort for essential local telecommunications service outside that area for purposes of subsection 5 of section 392.248.

13. When a local exchange carrier is relieved of the carrier of last resort obligation to serve in a designated area, in no instance shall the carrier of last resort obligation be transferred to any alternative service provider or provider of local voice service, including interconnected voice over internet protocol service in that designated service area.

14. Notwithstanding other provisions of this chapter or chapter 386, any telecommunications company may, upon notice to the commission, elect to no longer be designated as a carrier of last resort for any telecommunications service within any county with a charter form of government and with more than eight hundred thousand inhabitants*, any city not within a county, and the portion of any home rule city with more than four hundred thousand inhabitants and located in more than one county that is located in any county with a charter form of government and with more than six hundred thousand but fewer than seven hundred thousand inhabitants. Upon such election, a telecommunications company shall not be required to provide or offer basic local or basic interexchange telecommunications service and may provide local voice service using any technology.

15. Notwithstanding any other provision of this section or other law to the contrary, no telecommunications company shall receive state high-cost universal service fund support in a high-cost area as described under section 392.248 for any area where such company has been relieved of its carrier of last resort obligation under this section; however, such company shall not be ineligible to receive state high-cost universal service fund support in other areas where it retains the carrier of last resort obligation.

(L. 1987 H.B. 360, A.L. 2011 H.B. 339)

*Revisor's note: The county description contained in this section is not consistent with any official county description in effect at the time of passage based on the requirements of section 1.100.

Exemption from certain rules, telecommunications companies.

392.461. A telecommunications company may, upon written notice to the commission, elect to be exempt from certain retail rules relating to:

(1) The provision of telecommunications service to retail customers and established by the commission which include provisions already mandated by the Federal Communications Commission, including, but not limited to, federal rules regarding customer proprietary network information, verification of orders for changing telecommunications service providers (slamming), submission or inclusion of charges on customer bills (cramming); or

(2) The installation, provisioning, or termination of retail service.

Notwithstanding any other provision of this section, a telecommunications company shall not be exempt from any commission rule established under authority delegated to the state commission pursuant to federal statute, rule or order, including, but not limited to, universal service funds, number pooling and conservation efforts, or any authority delegated to the state commission to facilitate or enforce any interconnection obligation or other intercarrier issue, including, but not limited to, intercarrier compensation, network configuration or other such matters. Notwithstanding other provisions of this chapter or chapter 386, a telecommunications company may, upon written notice to the commission, elect to be exempt from any requirement to file or maintain with the commission any tariff or schedule of rates, rentals, charges, privileges, facilities, rules, regulations, or forms of contract, whether in whole or in part, for telecommunications services offered or provided to residential or business retail end-user customers and instead shall publish generally available retail prices for those services available to the public by posting such prices on a publicly accessible website. A telecommunications company may include in a tariff filed with the commission any, all, or none of the rates, terms, or conditions for any, all, or none of its retail telecommunications services. Nothing in this section shall affect the rights and obligations of any entity, including the commission, established pursuant to federal law, including 47 U.S.C. Sections 251 and 252, any state law, rule, regulation, or order related to wholesale rights and obligations, or any tariff or schedule that is filed with and maintained by the commission.

(L. 2011 H.B. 338, A.L. 2013 H.B. 331, A.L. 2014 S.B. 651)

Conditions, commission may impose, when--compensation to othercompanies, when, commission may order.

392.470. 1. The commission may impose any condition or conditions that it deems reasonable and necessary upon any company providing telecommunications service if such conditions are in the public interest and consistent with the provisions and purposes of this chapter, including, but not limited to, determining that any such company should provide just and reasonable compensation to one or more other certificated telecommunications companies operating in areas in which the compensating company is providing intrastate telecommunications service without commission authorization. The foregoing authority to determine compensation may be exercised by the commission for any telecommunications service that the compensating company is not authorized to provide, whether or not the provision of the telecommunications service is intentional, unintentional or incidental to any telecommunications service that the compensating company is authorized to provide. The commission may review any certificate of public convenience and necessity issued prior to September 28, 1987, and modify such certificate to impose any reasonable and necessary conditions authorized by this section.

2. An order of the commission issued under subsection 1 of this section which determines that compensation should be provided shall be enforced and subject to continuing enforcement by the circuit courts of this state, unless stayed pending review pursuant to section 386.520. The venue of such an action shall lie in any county in which the subject telecommunications company is providing unauthorized telecommunications service.

(L. 1987 H.B. 360)

Prohibition of resale, when.

392.475. Consistent with the federal Telecommunications Act of 1996, including implementing regulations, the commission shall prohibit the resale of a telecommunications service available at retail only to designated categories of subscribers to different categories of subscribers, including a prohibition on the resale of services provided to residential customers to business customers.

(L. 1996 S.B. 507)

Services to be offered under tariff.

392.480. Except as provided in section 392.520, all telecommunications services offered or provided by telecommunications companies shall be offered under tariff and classified as either competitive, transitionally competitive, or noncompetitive telecommunications services, subject to proper certification and other applicable provisions of this chapter. Any tariff filed with the commission shall indicate whether the telecommunications service to be offered or provided is competitive, transitionally competitive, or noncompetitive.

(L. 1987 H.B. 360, A.L. 2008 H.B. 1779)

Changes in rates, competitive telecommunication services, procedure.

392.500. Except as provided in subsections 2 to 5 of section 392.200, proposed changes in rates or charges, or any classification or tariff provision affecting rates or charges, for any competitive telecommunications service, shall be treated pursuant to this section as follows:

(1) Any proposed decrease in rates or charges, or proposed change in any classification or tariff resulting in a decrease in rates or charges, for any competitive telecommunications service shall be permitted only upon the filing of the proposed rate, charge, classification or tariff after one day's notice to the commission; and

(2) Any proposed increase in rates or charges, or proposed change in any classification or tariff resulting in an increase in rates or charges, for any competitive telecommunications service shall be permitted ten days after the filing of the proposed rate, charge, classification or tariff and upon notice to all potentially affected customers through a notice in each such customer's bill at least ten days prior to the date for implementation of such increase or change, or, where such customers are not billed, by an equivalent means of prior notice.

(L. 1987 H.B. 360, A.L. 2005 S.B. 237)

Tariffs, bands and ranges allowed, when, requirements.

392.510. 1. Telecommunications companies may file proposed tariffs for any competitive or transitionally competitive telecommunications service, which includes and specifically describes a range, or band, setting forth a maximum and minimum rate within which range a change in rates or charges for such telecommunications service could be made without prior notice or prior commission approval.

2. The commission may approve such a proposed tariff for a transitionally competitive service only if a noncompetitive or transitionally competitive telecommunications company demonstrates, and the commission finds, that any and all rates or charges within the band or range are consistent with the public interest and the provisions and purposes of this chapter. To the extent any proposed band or range encompasses rates or charges which are not consistent with the public interest and the provisions and purposes of this chapter, the commission shall have the power, upon notice and after hearing, to modify the level, scope or limits of such band or range, as necessary, to ensure that rates or charges resulting therefrom are consistent with the public interest and the provisions and purposes of this chapter.

3. The provisions of sections 392.220, 392.230, and 392.500 shall not apply to any rate increase or decrease within the band or range authorized pursuant to this section. A telecommunications company shall file written notice of the rate change and its effective date with the commission within ten days after the effective date of any increase or decrease authorized pursuant to this section.

4. Any tariffs that have been approved by the commission prior to September 28, 1987, which establish a range or band of rates within which range or band of rates a change in rates or charges for such telecommunications service could be made without prior notice or prior commission approval shall be deemed approved by the commission. The provisions of sections 392.220, 392.230, and 392.500 shall not apply to any rate increase or decrease within such band or range.

(L. 1987 H.B. 360, A.L. 2008 H.B. 1779)

Private shared tenant services, coin operated telephone services,regulation of.

392.520. 1. The commission shall have jurisdiction over the provision of private shared tenant services and customer-owned coin telephone telecommunications services, but shall subject such services to the minimum regulation permitted by this chapter for competitive telecommunications services. The commission shall exempt the provision of private shared and customer-owned coin telephone telecommunications services from the tariff filing requirements of sections 392.220, 392.230, and 392.500 and may exempt the provision of such telecommunications services from the provisions of subdivisions (1) and (3) of section 392.390 and from the provisions of section 386.370.

2. The commission shall establish the rates or charges and terms of connection for access by such services to the local exchange network. In so doing, the commission shall consider the network integrity of the principal provider of local exchange service and the impact of private shared tenant services on the cost to provide, and rates or charges, for local exchange service. If the commission finds, upon notice and investigation, that tenants in private shared tenant services locations have no alternative access to a local exchange telecommunications company providing basic local telecommunications service, it may require the private shared tenant services provider to make alternative facilities available on reasonable terms and conditions at reasonable prices.

(L. 1987 H.B. 360, A.L. 2008 H.B. 1779)

Construction of provisions of the chapter.

392.530. Sections 392.361 to 392.520 are enacted in part to clarify and specify the law existing prior to September 28, 1987. Any specific grant of authority to the commission contained in those provisions shall not be construed as indicating or meaning that the commission did not possess such authority under the law existing prior to September 28, 1987.

(L. 1987 H.B. 360, A.L. 1996 S.B. 507)

Public service commission to promulgate rules on changes oftelecommunications providers.

392.540. Notwithstanding any other provision of law to the contrary, the public service commission shall promulgate rules which shall be effective by January 1, 1999, for the submission or execution of changes by a telecommunications company to a subscriber's selected provider of basic interexchange or basic local telecommunications services, and requiring verification by customers to telecommunication companies for any changes in such customer's telecommunication service. Any rule promulgated shall be consistent with rules prescribed by the Federal Communications Commission pursuant to 47 U.S.C. Section 258(a).

(L. 1998 H.B. 1506 § 1)

Interconnected voice over internet protocol service, registrationrequired--charges to apply--procedure for registration--authorityof commission.

392.550. 1. No person, corporation, or other entity shall offer or provide interconnected voice over internet protocol service as defined in section 386.020 without first having obtained a registration from the commission allowing it to do so. Upon application, the commission shall grant a registration to any person, corporation, or other entity to provide interconnected voice over internet protocol service, subject to the provisions of this section.

2. Interconnected voice over internet protocol service shall be subject to appropriate exchange access charges to the same extent that telecommunications services are subject to such charges. Until January 1, 2010, this subsection shall not alter intercarrier compensation provisions specifically addressing interconnected voice over internet protocol service contained in an interconnection agreement approved by the commission pursuant to 47 U.S.C. Section 252 and in existence as of August 28, 2008.

3. The commission shall grant a registration, without a hearing and no later than thirty days following the filing of an application accompanied by an affidavit signed by an officer or general partner of the applicant stating the following:

(1) The location of the principal place of business and the names of the principal executive officers of the applicant;

(2) Each exchange, in whole or in part, of a local exchange company in which the applicant proposes to provide interconnected voice over internet protocol service;

(3) That the applicant is legally, financially, and technically qualified to provide interconnected voice over internet protocol services;

(4) That the applicant is ready, willing, able, and will comply with all applicable state and federal laws and regulations imposed upon providers of interconnected voice over internet protocol services;

(5) That the applicant will charge and collect from its end-user customers on interconnected voice over internet protocol service, and remit to the appropriate authority, fees and surcharges in the same manner as are charged and collected upon end-user customers of local exchange telecommunications service and remitted by local exchange telecommunications companies, including but not necessarily limited to:

(a) Telecommunications programs under section 209.255;

(b) Missouri universal service fund under section 392.248;

(c) Local enhanced 911;

(d) Any applicable license tax;

(6) That the applicant will remit the annual assessment imposed by the commission under section 386.370;

(7) That the applicant will file, either directly or indirectly through an affiliated competitive local exchange carrier, with the commission an annual report at a time and covering the yearly period fixed by the commission. Verification shall be made by the official holding office at the time of the filing of such report, and if not made upon the knowledge of the person verifying, the same shall set forth in general terms the sources of his or her information and the grounds for his or her belief as to any matters not stated to be verified on his or her knowledge. Such annual report shall be verified by the oath of the president, treasurer, general manager, or receiver, if any, of any of such companies, or by the person required to file the same. The commission shall prescribe the form of such reports and the character of the information to be contained therein; provided, however, that such form and character of the information to be provided shall be limited to:

(a) Information necessary to enable the commission to determine the assessment of the fees and surcharges set forth in subdivisions (5) and (6) of this subsection;

(b) A list of all Missouri exchanges, in whole or in part, in which customers are served; and

(c) The number of customers or lines served in each exchange. The commission shall maintain such information as proprietary and not available to the public; and

(8) That the applicant has established a process for handling inquiries from customers concerning billing issues, service issues, and other consumer-related complaints.

4. Notwithstanding any other provision of law to the contrary, the public service commission shall have the following authority with respect to providers of interconnected voice over internet protocol service and their provision of such service:

(1) To assess and collect fees to support telecommunications programs under section 209.255;

(2) To assess and collect fees to support the Missouri universal service fund under section 392.248;

(3) To assess and collect fees to support the operations of the commission under section 386.370;

(4) To assess and collect fees and surcharges under subdivisions (5) and (6) of subsection 3 of this section;

(5) To hear and resolve complaints under sections 386.390 and 386.400 regarding the payment or nonpayment for exchange access services regardless of whether a user of exchange access service has been certificated or registered by the commission and regardless of whether the commission otherwise has authority over such user. This subdivision shall not grant the commission authority to review rates for exchange access services that are set under section 392.245; and

(6) To revoke or suspend the registration of any provider of interconnected voice over internet protocol service who fails to comply with the requirements of this section.

(L. 2008 H.B. 1779)

Local exchange telecommunications companies to decrease certain ratesfor three years--exemption.

392.605. 1. For a period of three years, each incumbent local exchange telecommunications company shall decrease its composite intrastate switched exchange access rates annually by six percent of the difference, as determined immediately preceding the first reduction required under this subsection, between its composite interstate switched exchange access rates and its composite intrastate switched exchange access rates, except that the provisions of this subsection shall not apply to small incumbent local exchange telecommunications companies individually serving fewer than twenty-five thousand access lines as of January 1, 2010, and the provisions of subsection 6 of section 392.361 and section 392.370 to the contrary notwithstanding, rural alternative local exchange telecommunications companies as defined in this section. The first six percent reduction shall occur by March 1, 2011, and the two subsequent six percent reductions shall occur by March first of each subsequent year thereafter. Between January fifteenth and January thirtieth of each year following a rate reduction required under this section, any company whose intrastate rates have been impacted by the requirements of this section shall submit a report to the chairperson of the house standing committee selected by the speaker of the house of representatives and the chairperson of the senate standing committee selected by the president pro tem of the senate which report shall describe the company's activities with regard to quality of consumer service, build-out of telecommunications infrastructure, and any other nonproprietary matters requested by the chairpersons of the committees as well as the financial impact of the provisions of this section on the company.

2. For purposes of this section, the term "rural alternative local exchange telecommunications company" shall be defined to include only those alternative local exchange telecommunications companies that, as of December 31, 2009:

(1) Possess a certificate of service authority to provide basic local telecommunications services issued by the commission;

(2) Have tariffs on file with and approved by the commission for the provision of basic local telecommunications services and exchange access services;

(3) Provide basic local telecommunications services and exchange access service to at least sixty percent of their local subscribers over distribution facilities connecting end-user customers to the central office which are owned by the alternative local exchange telecommunications company. For purposes of this subsection, the ownership of distribution facilities connecting end-user customers to the central office shall not include facilities that are leased, such as unbundled network elements, or resold from any other person or entity; and

(4) Have more than ninety percent of their total Missouri basic local telecommunications service customers located in counties of the third classification.

3. The exemption under this section for rural alternative local exchange telecommunications companies shall only apply to those exchanges where the rural alternative local exchange telecommunications companies serve existing lines as of December 31, 2009.

(L. 2010 H.B. 1750)

Inapplicability of laws and rules, when--universal service fundsurcharge--broadband not subject to regulation, when--noexemption from rules, when--alternative certification.

392.611. 1. A telecommunications company certified under this chapter or holding a state charter authorizing it to engage in the telephone business shall not be subject to any statute in chapter 386 or this chapter (nor any rule promulgated or order issued under such chapters) that imposes duties, obligations, conditions, or regulations on retail telecommunications services provided to end-user customers, except to the extent it elects to remain subject to certain statutes, rules, or orders by notification to the commission. Telecommunications companies shall remain subject to general, nontelecommunications-specific statutory provisions other than those in chapter* 386 and this chapter to the extent applicable. Telecommunications companies shall:

(1) Collect from their end users the universal service fund surcharge in the same competitively neutral manner as other telecommunications companies and interconnected voice over internet protocol service providers, remit such collected surcharge to the universal service fund administrator, and receive, as appropriate, funds disbursed from the universal service fund, which may be used to support the provision of local voice service;

(2) Report to the commission such intrastate telecommunications service revenues as are necessary to calculate the commission assessment, universal service fund surcharge, and telecommunications programs under section 209.255; and

(3) Continue to comply with the provisions of section 392.415 pertaining to the provision of location information in emergency situations.

2. Broadband and other internet protocol-enabled services shall not be subject to regulation under chapter 386 or this chapter, except that interconnected voice over internet protocol service shall continue to be subject to section 392.550. Nothing in this subsection extends, modifies, or restricts the provisions of subsection 3 of this section. As used in this subsection, "other internet protocol-enabled services" means any services, capabilities, functionalities, or applications using existing internet protocol, or any successor internet protocol, that enable an end user to send or receive a communication in existing internet protocol format, or any successor internet protocol format, regardless of whether the communication is voice, data, or video.

3. Notwithstanding any other provision of this section, a telecommunications company shall not be exempt from any commission rule established under authority delegated to the state commission under federal statute, rule, or order, including, but not limited to, universal service funds, number pooling, and conservation efforts. Notwithstanding any other provision of this section, nothing in this section extends, modifies, or restricts any authority delegated to the state commission under federal statute, rule, or order to require, facilitate, or enforce any interconnection obligation or other intercarrier issue including, but not limited to, intercarrier compensation, network configuration or other such matters. Notwithstanding any other provision of this section, nothing in this section extends, modifies, or restricts any authority the commission may have arising under state law relating to interconnection obligations or other intercarrier issue including, but not limited to, intercarrier compensation, network configuration, or other such matters.

4. After August 28, 2014, telecommunications companies seeking to provide telecommunications service may, in lieu of the process and requirements for certification set out in other sections, elect to obtain certification by following the same registration process set out in subsection 3 of section 392.550, substituting telecommunications service for interconnected voice over internet protocol service in the requirements specified in subdivisions (1) to (8) of subsection 3 of section 392.550.

(L. 2013 H.B. 331, A.L. 2014 S.B. 651)

*Word "chapters" appears in original rolls.


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