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Home > Statutes > Usa Missouri
USA Statutes : missouri
Title : INCORPORATION AND REGULATION OF CERTAIN UTILITIES AND CARRIERS
Chapter : Chapter 392 Telephone and Telegraph Companies
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, RSMo 351.030



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



All corporations formed under sections 392.010 to 392.170 shall
possess all the powers and privileges granted to corporations by chapter
351, RSMo, 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



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, RSMo 351.267



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



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, RSMo 351.267



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



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,
RSMo, 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.
(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, RSMo 77.520 Cities of the fourth class,
RSMo 88.773 Consent of county commission, RSMo 229.100 State highways and
transportation commission consent, RSMo 227.240

(1981) Statutory amendment giving telephone utility, but not other
utilities, a vested property interest in public land under which its
cables and conduits had been placed had a retroactive effect in violation
of the ex post facto provision of the Missouri Constitution and the
constitutional ban on local or special laws. Planned Industrial Expansion
Authority of the City of St. Louis v. Southwestern Bell Telephone Co.
(Mo.), 612 S.W.2d 772.



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 b{e 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



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, RSMo



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



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



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



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



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



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



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

(1957) This section does not dispense with the element of proximate
cause, but telephone company is liable for neglect or refusal to transmit
notice of fire to fire department within reasonable time after it has
notice thereof, and under pleadings question of proximate cause was jury
question. Jennings v. Southwestern Bell Tel. Co. (Mo.), 307 S.W.2d 464.



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, RSMo.

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)



The provisions of section 386.020, RSMo, 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)



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)



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



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 incumbent local exchange
telecommunications company in any exchange where an alternative local
exchange telecommunications company has been certified and is providing
basic local telecommunications services or switched exchange access
services, or for an alternative local exchange telecommunications
company, 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, RSMo;

(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 to business customers by the incumbent
local exchange telecommunications company has been declared competitive
under section 392.245.

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. (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)

Prior revisions: 1929 § 5208; 1919 § 10496

CROSS REFERENCES: Cities of the third class, RSMo 77.490 Regulation and
supervision by public service commission, RSMo 386.320

(1963) Finding by Public Service Commission that telephone company's
refusal to accept television service corporation's advertising in
telephone directory as submitted because it implied that corporation was
rendering free service was not unreasonable or unlawful discrimination
was supported by substantial evidence. Videon Corp. v. Burton (A.), 369
S.W.2d 264.

(1976) Held, statute of limitations begins to run when public service
commission determined that rate charged was improper, not when improper
charges were made. DePaul Hospital v. Southwestern Bell Telephone (A.),
539 S.W.2d 542.



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)



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)



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



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 sixty 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
sixty-day suspension period, but any such decision by the commission
issued after the maximum sixty-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,
RSMo, 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, RSMo, 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)

Prior revisions: 1929 § 5209; 1919 § 10497

(1958) Where telephone company serving a number of communities fixed its
rates on a system-wide basis, a holding that city licenses or gross
receipts taxes of some of the cities served should be collected from
telephone users in cities which levied the taxes was reasonable. State ex
rel. City of West Plains v. Pub. Serv. Comm. (Mo.), 310 S.W.2d 925.

(1968) Held that limitation of damages in rate schedule are binding on
customers and failure to correct error in two consecutive listings and
with notice from customer held to be negligent but not "willful, wanton
or reckless" so as to allow recovery for loss of business. Warner v.
Southwestern Bell Telephone Company (Mo.), 428 S.W.2d 596.



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 one hundred and
twenty 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 six months.

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)

Prior revisions: 1929 § 5215; 1919 § 10503



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

(1976) Held, public service commission has authority to question
reasonableness of price paid for items of property bought by utility and
included in its rate base. State ex rel. General Telephone Co. v. Public
Service Commission (A.), 537 S.W.2d 655.



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 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 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 one of the following methods:

(a) By the change in the telephone service component of the Consumer
Price Index (CPI-TS), as published by the United States Department of
Commerce or its successor agency for the preceding twelve months; or

(b) Upon request by the company and approval by the commission, by the
change in the Gross Domestic Product Price Index (GDP-PI), as published
by the United States Department of Commerce or its successor agency for
the preceding twelve months, minus the productivity offset established
for telecommunications service by the Federal Communication Commission
and adjusted for exogenous factors;

(2) The commission shall approve a change to a maximum allowable price
filed pursuant to paragraph (a) of 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) As a part of its request under paragraph (b) of subdivision (1) of
this subsection, a company may seek commission approval to use a
different productivity offset in lieu of the productivity offset
established by the Federal Communication Commission. An adjustment under
paragraph (b) of subdivision (1) of this subsection shall not be
implemented if the commission determines, after notice and hearing to be
conducted within forty-five days of the filing of the notice of a change
to a maximum allowable price, that it is not in the public interest. In
making such a determination, the commission shall consider the
relationship of the proposed price of service to its cost and the impact
of competition on the incumbent local exchange telecommunications
company's intrastate revenues from regulated telecommunications services.
Any adjustments for exogenous factors shall be allocated to the maximum
allowable prices for exchange access and basic local telecommunications
service in the same percentage as the revenues for such company bears to
such company's total revenues from basic local, nonbasic and exchange
access services for the preceding twelve months.

(4) For the purposes of this section, the term "exogenous factor" shall
mean a cumulative impact on a local exchange telecommunications company's
intrastate regulated revenue requirement of more than three percent,
which is attributable to federal, state or local government laws,
regulations or policies which change the revenue, expense or investment
of the company, and the term "exogenous factor" shall not include the
effect of competition on the revenue, expense or investment of the
company nor shall the term include any assessment made under section
392.248.

(5) 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 thirty 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
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:

(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;

(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 a basic
local telecommunications service provider regardless of whether such
entity is subject to regulation by the commission. 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, RSMo;

(4) Telecommunications companies only offering prepaid telecommunications
service or only reselling telecommunications service as defined in
subdivision (46) of section 386.020, RSMo, in the exchange being
considered for competitive classification shall not be considered
entities providing basic telecommunications service; and

(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 business service or
residential service, or both, the commission shall, within thirty days of
the request, determine whether the requisite number of entities are
providing basic local telecommunications service to business or
residential customers, or both, in an exchange and if so shall approve
tariffs designating all such business or residential 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 unless it finds
that such competitive classification is contrary to the public interest.
The commission shall maintain records of regulated providers of local
voice service, including those regulated 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 regulated providers of local voice service to determine
the extent and presence of regulated 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 shall, at least every two years, or where
an incumbent local exchange telecommunications company increases rates
for basic local telecommunications services in an exchange classified as
competitive, 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 maximum allowable prices established by the
provisions of subsections 4 and 11 of this section, and, in any such
case, the maximum allowable prices established for the telecommunications
services of such incumbent local exchange telecommunications company
shall reflect all index adjustments which were or could have been filed
from all preceding years since the company's maximum allowable prices
were first adjusted pursuant to subsection 4 or 11 of this section.

6. Nothing in this section shall be interpreted to alter the commission's
jurisdiction over quality and conditions of service or to relieve
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 is first
subject to regulation under this section. Absent commission action under
subsection 10 of this section, an incumbent local exchange
telecommunications company regulated under this section shall have four
years from the date the company becomes subject to regulation under this
section to make the adjustments authorized under this subsection and
subsection 9 of this section. 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 is first subject to regulation under this section.

9. Other provisions of this section to the contrary notwithstanding and
no earlier than January 1, 1997, 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 revenue loss resulting from the first
year's access service rate reduction by increasing 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. No
later than one year after the date the incumbent local exchange
telecommunications company becomes subject to regulation under this
section, the commission shall complete an investigation of the cost
justification for the reduction of intrastate access rates and the
increase of maximum allowable prices for basic local telecommunications
service. If the commission determines that the company's monthly maximum
allowable average statewide prices for basic local telecommunications
service after adjustment pursuant to this subsection will be equal to or
less than the long run incremental cost, as defined in section 386.020,
RSMo, of providing basic local telecommunications service and that the
company's intrastate access rates after adjustment pursuant to this
subsection will exceed the long run incremental cost, as defined in
section 386.020, RSMo, of providing intrastate access services, the
commission shall allow the company to offset the revenue loss resulting
from the remaining three-quarters of the total needed to bring that
company's intrastate access rates to one hundred fifty percent of the
interstate level by increasing the company's monthly maximum allowable
prices applicable to basic local telecommunications service by an amount
not to exceed one dollar fifty cents on each of the next three
anniversary dates thereafter; otherwise, the commission shall order the
reduction of intrastate access rates and the increase of monthly maximum
allowable prices for basic local telecommunications services to be
terminated at the levels the commission determines to be cost-justified.
The total revenue increase due to the increase to the monthly maximum
allowable prices for basic local telecommunications service shall not
exceed the total 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. The maximum allowable prices for nonbasic telecommunications services
of a small, incumbent local exchange telecommunications company regulated
under this section shall not be changed until twelve months after the
date the company is subject to regulation under this section or, on an
exchange-by-exchange basis, until an alternative local exchange
telecommunications company is certified and providing basic local
telecommunications service in such exchange, whichever is earlier. The
maximum allowable prices for nonbasic telecommunications services of a
large, incumbent local exchange telecommunications company regulated
under this section shall not be changed until January 1, 1999, or on an
exchange-by-exchange basis, until an alternative local exchange
telecommunications company is certified and providing basic local
telecommunications service in such exchange, whichever is earlier.
Thereafter, the maximum allowable prices for nonbasic telecommunications
services of an incumbent local exchange telecommunications company may be
annually increased by up to five percent for each of the following
twelve-month periods upon providing notice to the commission and filing
tariffs establishing the rates for such services in such exchanges at
such maximum allowable prices. This subsection shall not preclude an
incumbent local exchange telecommunications company from proposing new
telecommunications services and establishing prices for such new
services. 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 thirty days, provided that any such rate is not in
excess of the maximum allowable price established for such service under
this section.

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)



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)



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, RSMo, 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, RSMo. 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, RSMo. 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, RSMo, 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)

*Original rolls contain "subdivision 3 of subsection 6".



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



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, RSMo, 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,
RSMo 386.330



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



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



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



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



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



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, RSMo.

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



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



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

(1984) The term "all damages" includes punitive damages and any allowance
of attorney's fees, in the court's discretion as a means of equalizing
the disparate positions of the parties. The term "willful", as used in
this section, is not the level of intent needed for criminal liability of
for punitive damages in tort cases. Overman v. Southwestern Bell
Telephone Co. (Mo. App. W.D.), 675 S.W.2d 419.



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



1. A telecommunications company 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. The office of
public counsel may initiate classification proceedings by petition. The
commission may initiate classification proceedings on its own motion. The
commission may require all telecommunications companies potentially
affected by a classification proceeding to appear as parties for a
determination of their interests.

2. The commission or a petitioner 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 or a proceeding instituted
upon its own motion, 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 or initiation of a proceeding under this section, consider
all relevant factors and shall issue written findings of fact delineating
all factors considered. The commission may, for good cause, extend the
time for determination for an additional three months. A second extension
period not exceeding three months may, for good cause, be granted by the
commission. 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 only upon a finding that all
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. The commission
may suspend different requirements for different telecommunications
companies, if such different treatment is reasonable and not detrimental
to the public interest.

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.

7. If necessary to protect the public interest, the commission may at any
time, by order, after hearing upon its own motion or petition filed by
the public counsel, a telecommunications company, or any person or
persons authorized to file a complaint as to the reasonableness of any
rates or charges under section 386.390, RSMo, reimpose or modify the
statutory provisions suspended under subsection 5 of this section upon
finding that the company or service is no longer competitive or
transitionally competitive or that the lesser regulation previously
authorized is no longer in the public interest or no longer consistent
with the provisions and purposes of this chapter.

8. 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.
(L. 1987 H.B. 360, A.L. 1993 S.B. 160)



l. 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 pursuant to the procedure set
out in subsection 2 of section 392.490, 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".

2. The commission may extend or reinstate a transitionally competitive
service classification applicable to any service provided by a
noncompetitive local exchange telecommunications company for two periods
in addition to the initial three-year period, each additional period not
to exceed three years, after notice and hearing, upon the issuance of an
order finding that a competitive classification for such service is not
in the public interest or not consistent with the purposes and policies
of this chapter. The commission may extend or reinstate a transitionally
competitive service classification applicable to any service provided by
a transitionally competitive interexchange telecommunications company for
two periods in addition to the initial two-year period, each additional
period not to exceed two years, after notice and hearing, upon the
issuance of an order finding that a competitive classification for such
service is not in the public interest or not consistent with the purposes
and policies of this chapter. The commission, on its own motion, or
public counsel or any telecommunications company, by complaint, may
initiate a proceeding in which the commission shall consider whether to
extend or reinstate a transitionally competitive service classification
under this section. In any proceeding initiated under this subsection by
the commission or the public counsel, the burden to prove that such
service is a competitive telecommunications service shall be on the
noncompetitive or transitionally competitive telecommunications company
providing such service. The commission may consolidate different
proceedings under this section involving different transitionally
competitive telecommunications services for purposes of hearing.

3. The commission may issue an order, effective at or after such time as
the commission may no longer extend or reinstate a transitionally
competitive service classification, that reclassifies a competitive or
transitionally competitive telecommunications service as a noncompetitive
telecommunications service if the commission, after notice and hearing
upon its own motion or petition filed by the public counsel, a
telecommunications company, or any person or persons authorized to file a
complaint as to the reasonableness of any rates or charges under section
386.390, RSMo, determines that a competitive classification for such
service is not in the public interest or not consistent with the
provisions and purposes of this chapter. Should the commission issue an
order under this subsection reclassifying a competitive or transitionally
competitive telecommunications service as noncompetitive it shall
thereafter apply equal regulation, with respect to such service, to all
telecommunications companies providing the same equivalent or
substitutable telecommunications service.

4. No tariff which proposes a new rate, rental, or charge or new
regulation or practice affecting any rate, rental, or charge for a
transitionally competitive telecommunications service which is filed by a
noncompetitive local exchange telecommunications company, or a
noncompetitive or transitionally competitive interexchange
telecommunications company, shall be effective unless and until the
noncompetitive local exchange telecommunications company, or the
noncompetitive or transitionally competitive interexchange
telecommunications company, offering or providing, or seeking to offer or
provide, such proposed transitionally competitive telecommunications
service prepares and files a study of the cost of providing such service.
Such study may in the commission's discretion be given proprietary
treatment at the request of such company.

5. Except as provided in subsection 6 of this section, the provisions of
sections 392.220 and 392.230 shall apply to any tariff filed for the
offer or provision of a transitionally competitive telecommunications
service.

6. So long as a transitionally competitive interexchange
telecommunications company charges the same price per minute or other
unit of measure for the same, equivalent, or substitutable interexchange
telecommunications service provided over the same or equivalent distance
between any two points, the provisions of subsections 4 and 5 of this
section shall not apply to such transitionally competitive interexchange
telecommunications company for any proposed decrease in rates for a
transitionally competitive interexchange telecommunications service. Such
proposed decrease shall instead be treated as a competitive service
pursuant to section 392.500.

7. A transitionally competitive telecommunications service which becomes
a competitive telecommunications service pursuant to this section or
section 392.361 shall no longer be subject to the provisions of
subsections 4, 5, and 6 of this section and any increase or decrease in
rates or charges applicable to such competitive service shall be treated
pursuant to section 392.500. (L. 1987 H.B. 360)



1. The provisions of chapter 386, RSMo, 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,
RSMo, 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)



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, RSMo, 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, RSMo;
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)



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, RSMo, 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)



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.

The provisions of this subsection shall expire on August 28, 2007.

8. The public service commission shall annually study the economic impact
of the provisions of this section and prepare and submit a report to the
general assembly by December thirty-first of each year. (L. 1987 H.B.
360, A.L. 1996 S.B. 507, A.L. 1997 H.B. 620, A.L. 2002 H.B. 1402)

*Subsection 7 of this section expires 8-28-07.

(2002) Subsection 7 provision prohibiting municipalities and other
political subdivisions from providing telecommunication services is
preempted by federal Telecommunications Act of 1996. Missouri Municipal
League v. Federal Communications Commission, 299 F.3d 949 (8th Cir.).

(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.



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 under section 392.361 and in accordance with the
procedures set out in section 392.361, 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. (L. 1987 H.B. 360)



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)



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)



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, including quality of service and
billing standards, as the commission requires of the incumbent local
exchange telecommunications company with which the applicant seeks to
compete. (L. 1987 H.B. 360, A.L. 1996 S.B. 507)



1. Notwithstanding any provisions of this act* to the contrary,
and consistent with section 253(f) of the federal Telecommunications Act
of 1996, 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 in an area that is served by a small incumbent
local exchange telecommunications company only upon a showing by the
applicant, and a finding by the commission, after notice and hearing,
that:

(1) The applicant shall, throughout the service area of the incumbent
local exchange telecommunication company, offer all telecommunications
services which the commission has determined are essential for purposes
of qualifying for state universal service fund support; and

(2) The applicant shall advertise the availability of such essential
services and the charges therefor using media of general distribution.

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;

(2) Meet the minimum service standards, including quality of service and
billing standards, as the commission requires of the incumbent local
exchange telecommunications company with which the applicant seeks to
compete;

(3) Make such reports to and other information filings with the
commission as is required of the incumbent local exchange
telecommunications company with which the applicant seeks to compete; and

(4) Comply with all of the same rules and regulations as the commission
may impose on the incumbent local exchange telecommunications company
with which the applicant seeks to compete.

3. 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)

*"This act" refers to S.B. 507, 1996.



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)



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 thereto and is not otherwise contrary to the public
interest. (L. 1987 H.B. 360)



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, RSMo.
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)



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)



1. 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.

2. Subject to the provisions of subsection 4* of section 392.220, an
offering or the provision of a telecommunications service shall be
classified as competitive only if, and only to the extent that, the
commission has issued an order to that effect pursuant to section 392.361
or pursuant to its findings issued in an order granting or modifying a
certificate of authority or certificate of public convenience and
necessity pursuant to section 392.410 or if, and only to the extent that,
a transitionally competitive telecommunications service has become a
competitive telecommunications service pursuant to section 392.370.
Subject to the provisions of subsection 4 of section 392.220, an offering
or the provision of a telecommunications service shall be classified as
transitionally competitive only if, and only to the extent that, the
commission has issued an order to that effect pursuant to section 392.361
or pursuant to its findings issued in an order granting or modifying a
certificate of authority or certificate of public convenience and
necessity pursuant to section 392.410 or if, and only to the extent that,
a telecommunications service has become a transitionally competitive
telecommunications service pursuant to subsection 1 of section 392.370
and subsection 2 of section 392.490. All telecommunications services not
properly classified as competitive or transitionally competitive shall be
classified as noncompetitive telecommunications service. (L. 1987 H.B.
360)

*Number "3" appears in original rolls, an apparent typographical error.



1. Except as provided in subsection 2 of this section and in
subsection 4* of section 392.220, any telecommunications company which
seeks to file a tariff classifying a telecommunications service as
competitive or transitionally competitive shall apply to the commission
consistent with section 392.361, prior to offering or providing such
service as competitive or transitionally competitive, for an order
finding that the proposed tariff is proper and consistent with the law.
The commission or the telecommunications company applying for commission
approval pursuant to this subsection shall provide notice of its
application and proposed tariff as provided in section 392.361, and the
commission shall afford all interested persons reasonable notice and an
opportunity to be heard. No such tariff shall become effective until
after the commission issues an order consistent with section 392.361.

2. A noncompetitive or transitionally competitive telecommunications
company which seeks to file a tariff classifying a telecommunications
service as transitionally competitive by operation of subsection 1 of
section 392.370, shall apply to the commission for an order finding that
the transitionally competitive classification is consistent with
subsection 1 of section 392.370. If such tariff does not otherwise
propose a new rate, rental or charge or new regulation or practice
affecting any rate, rental or charge, the transitionally competitive
classification shall become effective ninety days after filing with the
commission and notice to public counsel and all telecommunications
companies unless the commission issues an order prior to the effective
date of such tariff, after notice and hearing, upon its own motion or
upon complaint by the public counsel or a telecommunications company,
which finds that the transitionally competitive classification is not
consistent with subsection 1 of section 392.370. (L. 1987 H.B. 360)

*Number "3" appears in original rolls, an apparent typographical error.



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)



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, subsections 4 and 5 of
section 392.370, and section 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, subsections 4 and 5 of section
392.370, and section 392.500 shall not apply to any rate increase or
decrease within such band or range. (L. 1987 H.B. 360)



Notwithstanding the provisions of sections 392.361, 392.370,
392.380, 392.400, 392.480, 392.490, 392.500, 392.510 and 392.520 to the
contrary:

(1) Intrastate operator services provided by alternative operator service
companies shall be provided pursuant to rates approved by the commission
under the provisions of subsection 2 of section 392.220, provided that
proposed rates shall be presumed reasonable by the commission and
approved if they are no higher than operator services rates of
certificated interexchange telecommunications companies which are not
alternative operator services companies;

(2) The commission shall promulgate rules as are supported by evidence as
to reasonableness to protect users of intrastate operator services
provided by interexchange telecommunications companies at traffic
aggregator locations from unjust and unreasonable rates, charges, and
practices; and to ensure that such users have the opportunity to make
informed choices between and among providers of operator services. All
such proposed rules shall be filed with the secretary of state and
published in the Missouri Register as provided in chapter 536, RSMo, and
a hearing shall be held at which affected parties may present evidence as
to the reasonableness of any proposed rule. The provisions of subdivision
(6) of section 386.250, RSMo, shall apply to rules promulgated under the
authority of this section;

(3) Notwithstanding the provisions of paragraph (d) of subdivision (44)
of section 386.020, RSMo, to the contrary, no traffic aggregator shall
deny a user of intrastate operator services access to that user's
interexchange telecommunications company of choice unless the commission,
after hearing, orders otherwise for good cause shown. (L. 1990 H.B. 1315)

Effective 7-10-90



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, subsections 4 and 5 of section 392.370, and section 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, RSMo.

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)



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)



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)



 
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