Neb. Admin. Code tit. 291 — Public Service Commission

Chapter 1 Rules of Commission Procedure

Neb. Admin. Code tit. 291, ch. 1 Rules of Commission Procedure {#sec-291-nac-1 omnilex-key=us-ne-regs-official--title-291--291 NAC 1}

001 DEFINITIONS : The following definitions apply:

001.01. Applicant means a party or parties who have filed an application with the Commission.

001.02. Application means an initial pleading seeking Commission action.

001.03. Argument means the oral statement of the petitioner or any other party which explains his or her view of the facts and issue to be decided, the law applicable to the question presented, and the reasoning that connects the facts and law.

001.04. Commission means the Nebraska Public Service Commission.

001.05. Common Carrier means a person transporting passengers or goods or providing telecommunications services for hire to the general public at large in Nebraska intrastate commerce.

001.06. Contested Case means a proceeding before the Commission in which the legal rights, duties, or privileges of specific parties are required by law or constitutional right to be determined after hearing before the Commission.

001.07. Contract Carrier means a person transporting passengers or goods or providing telecommunications services for hire, other than as a common carrier, in Nebraska intrastate commerce.

001.08. Declaratory Order Proceeding means a proceeding initiated by a petitioner seeking issuance of a binding order by the Commission as to the applicability of specified circumstances to a statute, rule, regulation, or order within the primary jurisdiction of the Commission.

001.09. Departmental Complaint means a complaint filed by a director of a department alleging a violation of a statute, rule or Commission order and seeking relief.

001.10. Executive Director means the designated person in charge of the daily operations of the Commission.

001.11. Ex parte Communication means an oral or written communication which is not on the record in a contested case with respect to which reasonable notice to all parties was not given. Ex parte communication will not include:

001.11A. Communications which do not pertain to the merits of a contested case;

001.11B. Communications required for the disposition of ex parte matters as authorized by law;

001.11C. Communications in a ratemaking or rulemaking proceeding except with respect to any proceedings in which the public advocate is a party as set forth in 002.11B; and

001.11D. Communications to which all parties have given consent.

001.12. Formal Complaint means a written complaint filed with the Commission alleging a violation of a statute, rule or Commission order and seeking relief.

001.13. Formal Intervenor(s) means an intervenor who files a Petition for Formal Intervention seeking to become a party to a Commission proceeding.

001.14. Hearing Officer means the Commissioner or Commissioners conducting a proceeding pursuant to the Administrative Procedure Act, whether designated as the presiding officer, administrative law judge, or some other title.

001.15. Informal Intervenor(s) means an intervenor who does not satisfy the requirements of formal intervention or files a satisfactory petition requesting informal intervention status. Informal intervenors are not made parties to the proceeding and their participation is limited.

001.16. Intervenor(s) means persons, political subdivisions, corporations, organizations, or other entities who have or claim to have any interest, legal right, duty, privilege, or immunity, which would be directly affected by the Commission's issuance of a binding order.

001.17. Jurisdictional Utility means a natural gas public utility subject to the jurisdiction of the Commission under the State Natural Gas Regulation Act as defined in section 66-1802 (10).

001.18. Motion means an oral or written request addressed to a Hearing Officer or the Commission by any party to a proceeding.

001.19. Necessary Party for Purposes of Petitions for Declaratory Rulings means a person who or an entity which has a specific interest in the applicability of the statute, rule, regulation, or order, as distinguished from a general interest such as may be the concern of the public at large. A necessary party is one which is or would be adversely affected in a legally cognizable way by the uncertainty sought to be resolved.

001.20. Order to Show Cause means an order issued by the Commission directing a person subject to its jurisdiction to appear before the Commission and present evidence as to why the Commission should not take a particular action.

001.21. Parties means persons, political subdivisions, corporations, organizations, or other entities subject to the jurisdiction of the Commission who are involved in a proceeding before the Commission according to the procedures set forth in this chapter. In a contested case, party means the person by or against whom a contested case is brought or a person allowed to formally intervene in a contested case.

001.22. Person means an individual, firm, organization, corporation, company, association, partnership, joint stock association, body politic, common carrier, society, legal representative, trustee, receiver, assignee, guardian, executor or administrator.

001.23. Petition means an initial pleading filed by or with the Commission that sets forth a claim and request for Commission action or initiates a proceeding.

001.24. Petitioner(s) means a party or parties who have filed a petition with the Commission seeking issuance of a Commission order.

001.25. Pleading means any petition, application, complaint, intervention, protest, answer, reply, notice, motion, stipulation, objection or order or other formal written document filed in a proceeding before the Commission.

001.26. Protest means any pleading filed in opposition to an application.

001.27. Protestant means a person filing a protest to the granting of an application.

001.28. Public Advocate means the person appointed by the Executive Director to represent the interests of Nebraska citizens and all classes of jurisdictional utility ratepayers, other than high-volume ratepayers, in matters involving jurisdictional utilities and as trial staff before the Commission.

002 GENERAL RULES OF PRACTICE AND PROCEDURE :

002.01 Office Hours: Commission office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday, except for holidays as defined by state statute.

002.02 Computation of Time: In computing time prescribed or allowed by these rules and regulations or by any applicable statute in which the method of computing time is not specifically provided, days will be computed by excluding the day of the act or event and including the last day of the period. If the last day of the period falls on a Saturday, Sunday, or state holiday, the period will include the next working day. When the period of time prescribed or allowed is less than five (5) days, intermediate Saturdays, Sundays and holidays will be excluded in the computation.

002.03 Copies: Unless otherwise specified, persons filing a pleading, comments or other filings, must furnish to the Commission an original, a paper copy and an electronic copy either via e-mail or other electronic media.

002.04 Appearances:

002.04A Individual: An individual may appear on his or her own behalf before the Commission.

002.04B On Behalf of Another: An individual may appear on behalf of another person and elicit testimony from witnesses if such individual is admitted to practice law before the Nebraska Supreme Court or is admitted to practice law before the Supreme Court of any other state and has been admitted to practice before the Commission in a proceeding upon a motion by a person admitted to practice before the Nebraska Supreme Court.

002.04C On Behalf of Another by Limited Appearance: An individual who is neither admitted to practice law before the Nebraska Supreme Court nor the Supreme Court of any other state may appear for a governmental subdivision, corporation, association or partnership for the sole purpose of making a statement on behalf of such person, but may not elicit testimony from any other person.

002.05 Pleadings:

002.05A. All pleadings must be made on white, letter-sized (8 1/2 x 11) paper and must be legibly typewritten, photo statically reproduced, printed or handwritten. If handwritten, a pleading must be written in ink, and must contain the following information:

002.05A1. A caption specifying the title or nature of the pleading;

002.05A2. Material factual allegations;

002.05A3. The action the Commission is being requested to take;

002.05A4. The name, mailing address, telephone number and email address of the petitioner, applicant, or complainant;

002.05A5. Signature of the party filing the pleading, or when represented by an attorney, the signature, address, telephone number and bar number of that attorney; and

002.05A6. The name and address of the respondent, if applicable.

002.05B. All pleadings must be filed with the Commission at its official office. Filing may be accomplished by personal delivery or mail and will be received during regular office hours of the Commission.

002.05C. Pleadings filed with the Commission will not be withdrawn without approval of the Commission.

002.06 Service and Notice:

002.06A Manner of Service: Service of any pleading or subpoena may be accomplished through any means permitted by law related to civil cases.

002.06B Date of Service if by First Class Mail: If a document is served via first class mail, the date of service of a document is the date of the mailing plus three (3) days.

002.06C Notice of Application: Notice of the filing of all applications will be given to all interested persons by publishing a summary of the authority or relief sought.

002.06D Notice of Hearing: Notice of a hearing will be mailed to all parties via first class mail, except that notice of a hearing on a complaint will be mailed to the respondent via certified mail or made by personal service.

002.06E Official Publication: The legal newspaper is known as The Daily Record and is the official newspaper in which notices will be published by the Commission.

002.06F Address/Agent for Service: For the purpose of service, each person subject to the Commission's jurisdiction must at all times keep on file with the Executive Director his, her or its business address or, in lieu thereof, notify the Executive Director of an agent (name and address) designated to receive documents and notices. Until the Executive Director is notified to the contrary, the address on file with the Commission's various departments will be deemed to be the address to which documents and notices will be mailed or personally delivered. Proof of service that any person subject to Commission jurisdiction was served, or was attempted to be served, at the address on file with the Commission will be adequate to satisfy any notice requirement imposed by these rules. Any person who does not hold a certificate, permit, or license from the Commission, and yet may be subject to the Commission's jurisdiction, may be served wherever such person is found within the state.

002.06G Service of Complaints: The Commission will serve a copy of any formal or departmental complaint on each respondent listed in the complaint personally or by first class or certified mail. Written proof of such service must be filed with the Commission. Each respondent who chooses to file a responsive pleading must do so within 20 days from the date of personal service or the date of Commission mailing of the petition or formal complaint.

002.06H. All pleadings subsequent to the initial petition, application, or formal complaint must be served by the party filing such pleading upon all attorneys of record or other representatives of record and upon all unrepresented parties. Service must be made personally or by first class or certified mail. Written proof of such service must be filed with the Commission.

002.07 Commencing an Action before the Commission: An action before the Commission is commenced by the filing of a petition, application, or complaint. The Commission, on its own motion, may open investigations or other dockets.

002.08 Hearing Officer; Criteria: The Commission may delegate to a Hearing Officer the functions of conducting any prehearing conference, planning conference, and/or hearing and addressing discovery and evidentiary matters and other non-dispositive matters.

002.08A. A Commissioner who has served as investigator, prosecutor, or advocate in a contested case or in its prehearing stage may not serve as Hearing Officer or assist or advise a Hearing Officer in the same proceeding without the consent of all parties.

002.08B. A Commissioner who has participated in a determination of probable cause or other equivalent preliminary determination in a contested case may serve as Hearing Officer or assist or advise a Hearing Officer in the same proceeding.

002.08C. A Commissioner may serve as Hearing Officer at successive stages of the same contested case.

002.09 Amendments:

002.09A. A petition, application, or complaint may be amended at any time before an intervention, protest, or answer is filed or is due, if notice is given. Otherwise, a petitioner, applicant, or complainant must request permission to amend from the hearing officer by filing a motion.

002.09B. A hearing officer may also allow, in his or her discretion, the filing of supplemental pleadings alleging facts material to the case occurring after the original pleadings were filed. A Hearing Officer may also permit amendment of pleadings when a mistake appears or when amendment does not materially change a claim or defense.

002.10 Disposition Without Hearing:

002.10A. Unless otherwise precluded by law, disposition of any case may be made by stipulation, agreed settlement, consent order, or default and be processed administratively without a hearing.

002.10B. Any application, petition, or other initial pleading which is not opposed through a protest or formal intervention within thirty (30} days of the date notice is published may be processed by use of affidavits administratively without a hearing.

002.10C. Any petitioner, applicant, or complainant failing to prosecute his or her petition, application, or complaint within ninety (90) days may be subject to an order to show cause as to why the petition, application, or complaint should not be dismissed.

002.11 Prohibitions Against Ex Parte Communications:

002.11A. The prohibitions found in this section apply beginning at the time a petition is filed. If after thirty (30) days from the date notice of an application or petition is published no interventions or protests are filed, the provisions of section 002.11 prohibiting ex parte communications will no longer apply to the proceeding.

002.11B. With respect to any matter of fact or law at issue in a proceeding and notwithstanding any other provision of law, a member, staff, or agent of the Commission will not during the pendency of any proceeding heard before the Commission have any ex parte communication with any party having an interest in the outcome of the proceeding. In any proceeding before the Commission in which the public advocate is a party or is appearing for a party, the public advocate will be considered a party for purposes of the restrictions on ex parte communications.

002.11C. Any Commissioner, member of commission staff, or agent of the Commission who is or may reasonably be expected to be involved in the decision-making process of the proceeding who receives or who makes or knowingly causes to be made an ex parte communication must file in the record of the proceeding all such written communications, memoranda stating the substance of all such oral communications, and all written responses and memoranda stating the substance of all oral responses to all the ex parte communications. The filing must be made within two working days of the receipt or making of the ex parte communication. Notice of the filing, with an opportunity to respond, will be given to all parties of record.

002.12 Intervention and Protest:

002.12A. Persons seeking to formally intervene in any matter before the Commission must comply with the following:

002.12A1. A petition for formal intervention must be filed with the Commission within thirty (30) days of the date of publication of notice of an application, petition, or other initial pleading. A copy of the petition must be served by the petitioner for formal intervention upon all parties to the proceeding;

002.12A2. The petition must state the petitioner's name and address; facts demonstrating that the petitioner's legal rights, duties, privileges, immunities, or other legal interests may be substantially affected by the proceeding or that the petitioner qualifies as a formal intervenor under any provision of law; and

002.12A3. The Hearing Officer or designee may grant a petition for formal intervention at any time upon determining that the formal intervention sought is in the interests of justice and will not impair the orderly and prompt conduct of the proceedings.

002.12A4. If a petitioner qualifies for formal intervention, the Hearing Officer or designee may impose conditions upon the formal intervenor's participation in the proceedings, either at the time that formal intervention is granted or at any subsequent time. Those conditions may include:

002.12A4a. Limiting the formal intervenor's participation to designated issues in which the formal intervenor has a particular interest demonstrated by the petition;

002.12A4b. Limiting the formal intervenor's use of discovery, cross examination, and other procedures so as to promote the orderly and prompt conduct of the proceedings; and

002.12A4c. Requiring two or more formal intervenors to combine their presentation of evidence and argument, cross examination, discovery, and other participation in the proceedings.

002.12A5. The Hearing Officer or designee will issue, prior to the establishment of any procedural schedule, an order granting or denying each pending petition for intervention, specifying any conditions and briefly stating the reasons for the order.

002.12A5a. The Hearing Officer or designee may modify the order at any time, stating the reasons for the modification.

002.12A5b. The Hearing Officer or designee will promptly give notice of an order granting, denying, or modifying intervention to the petitioner for intervention and to all parties.

002.12B. Persons seeking to informally intervene in any matter before the Commission must comply with the following:

002.12B1. A petition for informal intervention must state the petitioner's name and address and must give notice of whether the petitioner intends to offer a witness at the hearing. The statement the witness for the petitioner must be served upon all parties to the proceeding not less than five (5) days prior to the hearing.

002.12B2. A petition for informal intervention may be filed with the Commission within thirty (30) days of the date of publication of notice of the application, petition, or other initial pleading, but not less than five (5) days prior to the hearing. A copy of the petition must be served by the petitioner for informal intervention upon all parties to the proceeding.

002.12B3. Leave to intervene informally will be granted only if the petitioner addresses issues reasonably pertinent to the issues already presented and does not unduly broaden the scope of the proceeding.

002.12B4. Participation by an informal intervenor is limited to the presentation of a pre-filed statement of a single witness together with exhibits by such witness, and participation in oral argument and submission of briefs. Informal intervenors are not parties and as such are not entitled to cross examine or otherwise interrogate witnesses in the proceeding presented by any party.

002.12C. Persons seeking to protest any matter before the Commission must comply with the following:

002.12C1. A protest against the granting of any application must be filed with the Commission within thirty (30) days from the date of publication of notice of the application. A copy of the protest must be served upon all parties to the proceeding.

002.12C2. A protest against the granting of an application for a certificate authorizing inter-LATA interexchange telecommunications service must be filed with the Commission within ten (10) days from the date of publication of said notice. A copy of the protest should be served upon all adverse parties, or upon their attorneys of record.

002.12C3. A protest to the granting of an application for temporary motor carrier authority, which the Commission is empowered to grant after not less than five (5) days-notice and without hearing, must be filed with the Commission within five (5) days after the date such notice is published.

002.12C4. In certain emergency situations, the Commission has the statutory authority to temporarily alter, amend, or suspend any existing rates in force, or to fix any such rates where none exist by issuing an order which prescribes an emergency rate. A protest to the granting of such emergency rate must be filed within fifteen (15) days after notice of the emergency rate.

002.12C5. A protest must set forth the name and address of the protestant, a statement concerning the interest of the protestant in the application, and a request for the relief sought by the protestant. Additionally, the protest must set forth specifically the grounds upon which it is made and the facts and circumstances relied upon.

002.13 Subpoenas:

002.13A Witnesses and Documents: The Commission may compel the attendance of witnesses or production of documents through the issuance of a subpoena upon written request of any party, or on order of the Commission or Hearing Officer.

002.13A1. Requests for subpoenas must be filed with the Commission at least ten (10) days prior to the date the witness is expected to attend or the date the production of documents is expected to occur.

002.13A2. Witness fees must be paid as provided by law in attendance at any district court in this state. The sheriff or constable executing any process of the Commission will receive such compensation as is provided by law for performing similar services. Any such fee must be paid by the party requesting the subpoena.

002.13A3. Any Motion to Quash a subpoena must be filed in writing with the Commission and served on all parties to a proceeding by the movant in compliance with Rule 004.06C. The hearing officer may grant or deny the motion in whole or in part or may schedule oral argument on the motion.

002.13B Failure to Comply with Subpoena:

002.13B1: Any witness failing or refusing to obey any subpoena issued by the Commission, or to produce before the Commission such books, papers, documents or records as have been enumerated and required in any subpoena, or failing or refusing, when before the Commission, to give testimony lawfully required by it, or failing or refusing to answer such questions as may be propounded by it which such witness would be required to answer if in court, the witness is guilty of a misdemeanor, and upon conviction thereof, for each offense, may be fined in any sum not exceeding five thousand dollars ($5,000.00).

002.13B2. The claim that any such testimony may tend to incriminate the witness will not excuse the witness from testifying, but such evidence or testimony may not be used against such person on the trial of any criminal proceeding.

002.14 Discovery:

002.14A. The use of depositions and discovery in proceedings before the Commission is governed by the rules and regulations of the Nebraska Supreme Court unless otherwise ordered by the Hearing Officer.

002.14B. The Hearing Officer or a designee, at the request of any party or upon the Hearing Officer's own motion, may issue subpoenas, discovery orders, and protective orders in accordance with the rules of civil procedure except as may otherwise be prescribed by law. Subpoenas and orders issued under this subsection may be enforced by the district court.

002.14C. Any motion to compel discovery, motion to quash, motion for protective order or other discovery-related motion must:

002.14C1. Quote the interrogatory, request, question, or subpoena at issue, or be accompanied by a copy of the interrogatory, request, subpoena or excerpt of a deposition;

002.14C2. State the reasons supporting the motion;

002.14C3. Be accompanied by a statement setting forth the steps or efforts made by the moving party or his or her counsel to resolve by agreement the issues raised and that agreement has not been achieved; and

002.14C4. Be filed with the Commission. The moving party must serve copies of all such motions to all parties to the contested case.

002.14D. Other than as provided in subsection 002.14C4 above, discovery materials need not be filed with the Commission.

002.15 Commission Decisions and Orders:

002.15A. A Commission order entered disposing of a matter pending before the Commission must be written and must recite the following:

002.15A1. A discussion of the facts of a basic or underlying nature;

002.15A2. The ultimate facts; and

002.15A3. The Commission's reasoning or other authority relied upon by the Commission.

002.15B. Every decision and order rendered by the Commission after a civil penalty hearing is held pursuant to section 75-156 will be in writing and accompanied by findings of facts and conclusions of law. The decision or order will be sent to the parties by certified or registered mail.

002.15C. Parties to the proceeding will be notified of the decision and order in person or by mail. A copy of the decision and order and accompanying findings and conclusions will be delivered or mailed upon request to each party or his or her attorney of record.

002.15D. Every order of the Commission becomes effective ten (10) days after the date of the mailing of a copy of the order to the parties of record except:

002.15D1. When the Commission prescribes an alternate effective date;

002.15D2. As otherwise provided with respect to emergency rate orders entered pursuant to section 75-121 and rate orders entered pursuant to section 75-139;

002.15D3. For cease and desist orders issued pursuant to section 75-133 which will become effective on the date of entry; or

002.15D4. For orders granting temporary approval of a lease of a regulated motor carrier property and certificates or permits sought to be acquired entered pursuant to section 75-319 which will become effective on the date of entry.

002.15E. When any application has been denied, in whole or in part, a subsequent application covering substantially the same subject matter will not be considered by the Commission within ninety (90) days from the date of the final denial, in whole or in part, of the previous application, except for good cause shown.

002.16 Motions for Reconsideration and Appeals:

002.16A. Except with respect to rate orders under the State Natural Gas Regulation Act, any party may file a motion for reconsideration with the Commission within ten (10) days after the effective date of the order.

002.16A1. The filing of a motion for reconsideration will suspend the time for filing a notice of intention to appeal pending resolution of the motion.

002.16A2. If the Commission does not dispose of a motion for reconsideration within sixty (60) days after the filing of the motion, the motion is deemed denied.

002.16B. Any party to a general rate proceeding under the State Natural Gas Regulation Act may file a motion for reconsideration within thirty (30) days after the day an order setting natural gas rates is entered by the Commission.

002.16B1. The filing of a motion for reconsideration will stay the order until the earlier of the date the Commission enters an order resolving the motion or one hundred twenty (120) days from the date of the order setting rates.

002.16B2. Either party will have thirty (30) days after the date the Commission enters an order resolving the motion or the expiration of the one hundred twenty (120) day period for considering the motion, whichever is earlier, in which to file an appeal.

002.16C. Appeal of a Commission order must be taken in the same manner and time as appeals from the district court, except that the appellate court must conduct a review of the matter de novo on the record. Appeal of a Commission order is perfected by filing a notice of intention to appeal with the Executive Director of the Commission within thirty (30) days after the effective date of the order.

003 RULES OF PRACTICE AND PROCEDURE FOR HEARINGS IN CONTESTED CASES :

003.01 Contested Case: A matter filed with the Commission is deemed to be a contested case if:

003.01A. a person files a petition or application with the Commission and a person files a formal intervention or protest within thirty (30) days of the date notice is published;

003.01B. a person files a formal complaint with the Commission;

003.01C. a departmental complaint is filed with the Commission; or

003.01D. a matter is declared to be a contested case upon the Commission's own motion.

003.02 Parties: The parties to a contested case must be the petitioner, applicant, complainant, or other person by whom a contested case is brought and the respondent or person against whom a contested case is brought and includes any formal intervenors or protestants.

003.03 Hearing: Unless state law provides that a hearing is not required, a hearing date must be set by the Commission in accordance with statutory requirements. A written notice of the time and place of hearing and the name of the Hearing Officer, if known, must be served by the Commission upon all attorneys of record or other representatives of record and upon all unrepresented parties. The notice must include a proof of such service and will be filed with the Commission.

003.04 Formal Intervention: Any person who has an interest in any proceeding pending before the Commission but who does not desire to file a formal protest, may file a Petition of Formal Intervention. Such person shall be designated as a "formal intervenor", and shall become a party to the proceeding.

003.04A Content: A Petition of Formal Intervention shall set forth the name and address of the intervenor, a statement of the interest of the intervenor in the proceeding, the grounds upon which the intervention is made and shall specify the facts and circumstances relied upon for such intervention.

003.04B: When Filed; Service: A Petition of Formal Intervention shall be filed with the Commission within the timeframe specified in 02.12Cl for the filing of a formal protest. A copy of the Petition of Formal Intervention shall be served upon all parties of record to the proceedings or upon their attorneys of record.

003.04C: Participation in the Proceedings: A formal intervenor shall be entitled to participate in the proceeding to the extent of his/her express interest in the matter. Such participation may include, presentation of evidence and argument, cross-examination of witnesses and submission of rebuttal evidence. As a party, a formal intervenor shall have the right of appeal.

003.05 Informal Intervention in a Contested Case: Any person may file a Petition of Informal Intervention. Such Petition of Informal Intervention shall set forth the information required in 003.04A above. Any person who files a Petition of Informal Intervention shall be designated as an "Informal Intervenor".

003.05A When Filed: A Petition of Informal Intervention shall be filed not later than fifteen days prior to the date the hearing in the proceeding commences and shall be accompanied by the statement referred to in 003.05C and any exhibits to be offered by the Informal Intervenor's witness at the hearing. A copy of the Petition of Informal Intervention and all accompanying pre-filed material shall be served on all parties to the proceeding, or upon their attorneys of record.

003.05B Approval by the Commission: Leave to intervene informally shall be granted only if the petitioner addresses issues reasonably pertinent to the issues already presented and does not unduly broaden the scope of the proceeding. If leave is granted by the Commission, the petition becomes an informal intervenor but does not become a party to the proceeding.

003.05C Participation in the Proceedings: Participation by an informal intervenor shall be limited to the presentation of a pre-filed statement of a single witness together with exhibits by such witness, and participation in oral argument submission or briefs. An informal intervenor shall not be permitted to engage in discovery or cross-examine or otherwise interrogate the witnesses in the proceeding called by any party. An informal intervenor providing a statement at a hearing may be subject to cross-examination by the other parties to the proceeding.

003.06 Prehearing Procedures:

003.06A. A Hearing Officer designated to conduct a hearing may determine, subject to the Commission's rules and regulations, whether a prehearing conference will be conducted. If a prehearing conference is not held, a Hearing Officer for the hearing may issue a prehearing order, based on the pleadings, to regulate the conduct of the proceedings.

003.06A1. If a prehearing conference is conducted the following will apply:

003.06A1a. The Hearing Officer will promptly notify the Commission of the determination that a prehearing conference will be conducted. The Commission may assign another Hearing Officer for the prehearing conference; and

003.06A1b. The Hearing Officer for the prehearing conference will set the time and place of the conference and give reasonable written notice to all parties and to all persons who have filed written petitions to intervene in the matter. The Commission shall give notice to other persons entitled to notice.

003.06A1c. The notice referred to in subsection 004.05A1b will include the following:

003.06A1c(i). The names and mailing addresses of all parties and other persons to whom notice is being given by the Hearing Officer;

003.06A1c(ii). The name, official title, mailing address, and telephone number of any counsel or employee who has been designated to appear for the Commission;

003.06A1c(iii). The official file or other reference number, the name of the proceeding, and a general description of the subject matter;

003.06A1c(iv). A statement of the time, place, and nature of the prehearing conference;

003.06A1c(v). A statement of the legal authority and jurisdiction under which the prehearing conference and the hearing are to be held;

003.06A1c(vi). The name, official title, mailing address, and telephone number of the Hearing Officer for the prehearing conference;

003.06A1c(vii). A statement that a party who fails to attend or participate in a prehearing conference, hearing, or other stage of a contested case or who fails to make a good faith effort to comply with a prehearing order may be held in default under the Administrative Procedure Act; and

003.06A1c(viii). Any other matters that the Hearing Officer considers desirable to expedite the proceedings.

003.06A2. The Hearing Officer will conduct a prehearing conference, as may be appropriate, to deal with such matter as exploration of settlement possibilities, preparation of stipulations, clarification of issues, rulings on identity and limitation of the number of witnesses, objections to proffers of evidence; determination of the extent to which direct evidence, rebuttal evidence, or cross-examination will be presented in written form and the extent to which telephone, television, or other electronic means will be used as a substitute for proceedings in person, order of presentation of evidence and cross examination, rulings regarding issuance of subpoenas, discovery orders, and protective orders, and such other matters as will promote the orderly and prompt conduct of the hearing. The Hearing Officer will issue a prehearing order incorporating the matters determined at the prehearing conference.

003.06A3. The Hearing Officer may conduct all or part of the prehearing conference by telephone, television, or other electronic means if each participant in the conference has an opportunity to participate in, to hear, and, if technically feasible, to see the entire proceeding while it is taking place.

003.06B. The Hearing Officer or staff designated by the Hearing Officer may conduct informal planning conferences during the pendency of an action to discuss scheduling, discovery, and other procedural issues.

003.07 Continuances: The Hearing Officer may, in his or her discretion, grant extensions of time or continuances of hearings upon the Hearing Officer's own motion or at the timely request of any party for good cause shown. A party must file a written motion for continuance which states in detail the reasons why a continuance is necessary and serve a copy of the motion on all other parties.

003.07A. Good cause for an extension of time or continuance may include, but is not limited to, the following:

003.07A1. Illness of the party, legal counsel or witness;

003.07A2. A change in legal representation; or

003.07A3. Settlement negotiations are underway.

003.08 Conducting a Contested Case Hearing:

003.08A. At the discretion of the Hearing Officer, the hearing may be conducted in the following order:

003.08A1. The hearing is called to order by the Hearing Officer. Any preliminary motions, stipulations or agreed orders are entertained.

003.08A2. Each party may be permitted to make an opening statement. Opening statements take place in the same order as the presentation of evidence.

003.08B. Evidence will be received in the following order. Presentation of evidence by Commission staff may be offered during the hearing at the discretion of the Hearing Officer:

003.08B1. Evidence is presented by the applicant, petitioner, or complainant;

003.08B2. Evidence is presented by the intervenor, protestant, or respondent;

003.08B3. Rebuttal evidence is presented by the applicant, petitioner, or complainant; and

003.08B4. Surrebuttal evidence is presented by the intervenor, protestant, or respondent, if permitted by the Hearing Officer. If surrebuttal evidence is permitted, the applicant, petitioner, or complainant will have an opportunity to respond.

003.08C. With regard to each witness who testifies, the following examination may be conducted:

003.08C1. Direct examination conducted by the party who calls the witness;

003.08C2. Cross examination by the opposing party;

003.08C3. Redirect examination by the party who called the witness; and

003.08C4. Recross examination by the opposing party, if permitted by the Hearing Officer. If recross is permitted, the party sponsoring the witness will have an opportunity to respond.

003.08D. After the evidence is presented, each party may request the opportunity to make a closing argument. Closing arguments will be made in the same order as the presentation of evidence. The Hearing Officer may limit the time allowed for each party's closing argument, however, each party will be allowed equal time. The Hearing Officer may request that the parties file briefs.

003.09 Evidence:

003.09A. In contested cases the Commission or Hearing Officer may admit and give probative effect to evidence which possesses probative value commonly accepted by reasonably prudent persons in the conduct of their affairs and may exclude incompetent, irrelevant, immaterial and unduly repetitious evidence.

003.09B. Any party to a formal hearing before the Commission, from which a decision may be appealed to the courts of this state, may request that the Commission be bound by the rules of evidence applicable in district court by delivering to the Commission, at least three (3) days prior to the holding of the hearing, a written request therefore. Such request will include the requesting party's agreement to be liable for the payment of costs incurred thereby and upon any appeal or review thereof, including the cost of court reporting services which the requesting party will procure for the hearing.

003.09C. Documentary evidence may be received in the form of copies or excerpts or incorporated by reference.

003.09D. All evidence including records and documents in the possession of the Commission of which it desires to avail itself will be offered and made a part of the record in the case. No factual information or evidence other than the record will be considered in the determination of the case.

003.09E. A Hearing Officer or designee may administer oaths and issue subpoenas in accordance with the rules of civil procedure except as may otherwise be prescribed by law. Subpoenas and orders issued under this subsection may be enforced by the district court.

003.09F. The Commission will give effect to the rules of privilege recognized by law.

003.09G. The Commission may take official notice of cognizable facts and in addition may take official notice of general, technical, or scientific facts within its specialized knowledge and the rules and regulations adopted and promulgated by the Commission.

003.09G1. Parties will be notified either before or during the hearing or by reference in preliminary reports or otherwise of materials so noticed.

003.09G2. Parties will be afforded an opportunity to contest facts so noticed.

003.09G3. The record will contain a written record of everything officially noticed.

003.09H. The Commission may utilize its experience, technical competence and specialized knowledge in the evaluation of the evidence presented to it.

003.09I. The Hearing Officer may conduct all or part of the hearing by television, or other electronic means if each participant in the hearing has an opportunity to participate in, to hear, if technically feasible, to see the entire proceeding while it is taking place, and oaths can be properly administered to witnesses.

003.09J. Testimony of a witness may be adduced by use of a prepared statement, if the witness is present for cross examination.

003.09K. The Hearing Officer may authorize any party to furnish and serve designated late filed exhibits within a specified time after the close of the hearing.

003.10 Official Record:

003.10A. The Commission will prepare an official record, which will include testimony and exhibits, in each contested case, but it will not be necessary to transcribe the record of the proceedings unless requested for purpose of rehearing or appeal, in which event the transcript and record will be furnished by the Commission upon request and tender of the cost of preparation.

003.10B. The Commission will maintain an official record of each contested case under the Administrative Procedure Act for at least four (4) years following the date of the final order.

003.10C. The Commission record will consist only of the following:

003.10C1. notices of all proceedings;

003.10C2. any pleadings, motions, requests, preliminary or intermediate rulings and orders, and similar correspondence to or from the Commission pertaining to the contested case;

003.10C3. the record of the hearing before the Commission, including all exhibits and evidence introduced during such hearing, a statement of matters officially noticed by the Commission during the proceeding, and all proffers of proof and objections and rulings thereon;

003.10C4. any notices of any ex parte communications and responses thereto filed pursuant to section 004.01C; and

003.10C5. the final order.

003.10D. The Commission record will constitute the exclusive basis for Commission action in contested cases under the act.

003.11 Costs: All costs of a formal hearing will be paid by the party or parties as may be ordered by the Commission.

004 FORMAL AND DEPARTMENTAL COMPLAINTS :

004.01 Applicability: The following apply to formal complaints and departmental complaints in addition to the requirements set forth in section 004. To the extent a conflict exists between section 003 and 004 with respect to a formal complaint or departmental complaint, section 004 controls.

004.02 Departmental Complaint:

004.02A. A departmental complaint must contain the name of the complainant, the name of the respondent, a clear and concise allegation of each offense in terms of each applicable statute, rule or Commission order, the requested relief, and be signed by the complainant.

004.02B. An answer to a departmental complaint must be filed and must admit or deny each material allegation of the departmental complaint. The answer must set forth any affirmative defense which respondent may assert.

004.02B1. The answer must be filed with the Commission within twenty (20) days after service of the complaint.

004.02B2. Except for good cause shown, failure to answer will be construed as an admission of the allegations in the complaint. The fact that a failure to answer will be construed as an admission to the allegations in the complaint must be included in the complaint served upon respondent.

004.03 Formal Complaints:

004.03A. A formal complaint must contain the name of the complainant, the name of the respondent, a clear and concise allegation of each offense, the requested relief, and be signed by the complainant.

004.03B. An answer to a formal complaint must be filed and must admit or deny each material allegation of the complaint. The answer must set forth any affirmative defense which the defense may assert. The Commission will have the discretion, upon proper showing, to dismiss the formal complaint or require further action.

004.03B1. The answer must be filed with the Commission within twenty {20) days after service of the complaint.

004.03B2. Except for good cause shown and except where a Statement of Satisfaction has been filed and accepted, failure to answer will be construed as an admission of the allegations in the complaint.

004.03C. A respondent to a formal complaint may file with the Commission a Statement of Satisfaction of the formal complaint.

004.03C1. Such Statement of Satisfaction must be filed with the Commission within ten (10) days after service of the complaint upon respondent.

004.03C2. Respondent must serve a copy of the Statement of Satisfaction upon the complainant.

004.03C3. Within five (5) days after receipt of the Statement of Satisfaction by complainant, complainant may file a Statement of Acceptance, a copy of which must be served upon respondent. The respondent may then move for dismissal at any time prior to the time set for hearing on the complaint.

004.03C4. If a Statement of Satisfaction is filed by the respondent but is not accepted by the complainant, the respondent must file an answer with the Commission within twenty (20) days from the date of service of the Statement of Satisfaction with a copy thereof being served on complainant.

005 ORDERS TO SHOW CAUSE :

005.01 General: The Commission may, by order, compel any person to whom it has granted authority to show good cause as to why the authority should not be suspended, changed, revoked in whole or in part, or why the holder of the certificate for such authority should not be subject to an administrative fine as provided for in Commission rules.

005.02 Content: An order to show cause must contain the name of the respondent, a clear and concise allegation of each cause for which the Commission requires a showing, and be signed by the Executive Director. The show cause order will specifically advise the respondent of the alleged violation or violations and the time and place of the hearing on such order.

005.03 Cease and Desist Order: The Commission may, after proper notice and hearing, enter a cease and desist order or any order the Commission deems just and reasonable.

006 COMMISSION INVESTIGATIONS :

006.01 General: The Commission may, at any time on its own motion, conduct an investigation or order any hearing which the Commission is authorized by law or inherent power to conduct.

006.02 Order to Appear: The Commission may, by order, compel any person to appear in an investigative proceeding. The order will state the purpose or scope of the investigation and the time and place of the hearing.

006.03 Investigations/Penalty: If it appears, as the result of an investigative hearing by the Commission, that any person who has been personally served has violated the provisions of any statute over which the Commission has jurisdiction or the rules of the Commission, the Commission may order such person to cease and desist or enter any order justified in the premises.

007 CIVIL PENALTY PROCEDURES :

007.01 Purpose and Scope:

007.01A. The purpose of this section is to establish procedures which the Commission will follow when civil penalties are sought against any person as defined in Neb. Rev. Stat. § 75-139.01 pursuant to § 75-156.

007.01B. For purposes of these rules, civil penalty has the same meaning as administrative fine and these terms may be used interchangeably.

007.02 Assessing Civil Penalties:

007.02A. In addition to other penalties and relief provided by law, the Commission may, upon a finding that a violation is proven by clear and convincing evidence, assess a civil penalty of up to ten thousand dollars ($10,000) per day against any person for each violation.

007.02B. The civil penalty assessed under these rules must not exceed two million dollars ($2,000,000) per year for each violation. For purposes of this rule, year shall mean calendar year which is the period from January 1 to December 31 inclusive.

007.02C. The Commission will have discretion in determining the appropriate amount of the civil penalty assessed for each violation. In determining the amount of the penalty, the Commission shall consider:

007.02C1. The appropriateness of the penalty in light of the gravity of the violation; and,

007.02C2. The good faith of the violator in attempting to achieve compliance after notification of the violation.

007.03 Initiation of Civil Penalty Proceedings Before the Commission:

007.03A. A civil penalty proceeding may be initiated by any person by the filing of a formal complaint or departmental complaint with the Executive Director or the issuance of an order to show cause. The complaint initiating a civil penalty proceeding must (1) consist of a written pleading signed by the complainant or his or her legal representative containing the names of the complainant and the alleged violator or violators; (2) set forth the date, facts, and nature of each act or omission upon which each charge of a violation is based; (3) specifically identify the particular statute, certificate, permit, rule, regulation, or order allegedly violated; (4) contain a prayer stating the type of relief, action, or order desired by the complainant; (5) inform the respondent that pursuant to Commission rules, failure to answer will be construed as an admission of the allegations in the complaint; and, (6) that upon failure to pay any civil penalty determined by the Commission, such civil penalty may be collected by civil action in the District Court of Lancaster County.

007.03A1. In the case of a formal complaint, a hearing fee may be assessed against the complainant in the amount established by the Commission and as provided by law for hearing fees. If the respondent is found to have committed the violation or violations named in the formal complaint, the hearing costs assessed, if any, will be refunded to the complainant. If the respondent is found to have committed the violation or violations named in the formal complaint, the respondent may be assessed the cost(s) of the hearing.

007.03B. Before a formal complaint filed pursuant to an alleged violation of sections 75-301 to 75-390 by anyone other than the Commission can proceed to a hearing, a copy of said complaint will be delivered to the Executive Director of the Commission. The Director has thirty (30) days to intervene in support of said complaint, intervene in opposition to said complaint, or issue a letter advising the complainant that the Commission has taken no position in the proceeding. In the event the Director takes no action after the thirty (30) day period has expired, the complainant may proceed to a hearing on the complaint no earlier than thirty (30) days after notice is served upon the respondent named in the complaint. Nothing contained herein will preclude the Commission from intervening as otherwise allowed under the rules of the Commission.

007.03C When a complaint is filed with the Commission, wherein the respondent may be subject to a civil penalty under state law and these rules, the Commission will notify such respondent in writing (1) setting forth the date, facts, and nature of each act or omission upon which each charge of a violation is based; (2) specifically identifying the particular statute, certificate, permit, rule, regulation, or order allegedly violated; (3) that a hearing will be held and give notification of the time, date, and place of such hearing; (4) that, in addition to a civil penalty, the Commission may enforce additional penalties and relief as provided by law; (5) that pursuant to Commission rules, failure to answer will be construed as an admission of the allegations in the complaint. Failure to file an answer or to appear at the hearing allows the Commission to enter an order assessing a civil penalty as provided by law for the violation or violations alleged in the complaint, or the Commission may proceed with a hearing to receive evidence of the alleged violation or violations and may assess civil penalties as provided by law; and, (6) that upon failure to pay any civil penalty determined by the Commission, such civil penalty may be collected by civil action in the District Court of Lancaster County.

007.03D. A copy of the complaint described in 007.03A and the notice information specified by 007.03C will be sent by the Commission to the respondent pursuant to the Service and Notice provisions as contained in Commission rules.

007.03E. Supplemental pleadings filed by a party must be in writing and be filed with the Commission and distributed by him or her to all interested parties under a certificate of service at any time until five (5) days before the hearing date. Supplemental pleadings filed five (5) days or less prior to the hearing date may be allowed by the Hearing Officer upon a showing of good cause and undue surprise does not disadvantage other parties of record. A civil penalty proceeding will not be cumulative of all other remedies available under state law and the rules of the Commission. Nothing herein will be construed so as to preclude the Commission or any other party, person, or entity from seeking any remedy in law or equity not specifically provided for in this section.

007.03F. A complaint may be withdrawn by the party who filed the complaint without prejudice to refiling upon the same facts if the Commission approves the withdrawal as provided by these rules.

007.04 Answer:

007.04A. The respondent must file with the Commission a written answer in the manner required by these rules no later than twenty (20) days after the date on which notice is given.

007.04B. If the respondent fails to timely file an answer as required by this subsection, or fails to appear at the hearing, the Commission may enter an order which assesses a civil penalty as provided by law for the violation or violations alleged in the complaint, or the Commission may proceed with a hearing to receive evidence on the alleged violation or violations and the Commission may assess civil penalties or an administrative fine as provided by law.

007.05 Settlement Orders:

007.05A. A respondent may enter into a compromise settlement agreement and proposed final order prior to a hearing pursuant to section 75-157 which does not constitute an admission by the respondent of any alleged violation or violations contained in the civil penalty complaint. Such agreement and proposed final order must be signed by the respondent and all parties to the proceeding and must reflect that the respondent consents to the assessment of a specific civil penalty or administrative fine. Settlement of the matters raised by the complaint in a proposed final order containing a recommended penalty are subject to the approval of the Commission.

007.05B. If the respondent and all parties to the proceeding enter into a compromise settlement agreement and proposed final order, the settlement of the complaint may include a recommended penalty to the Commission. If a recommended penalty is included as part of the compromise settlement agreement and proposed final order, simultaneous with the filing of a compromise settlement agreement and proposed final order, the respondent must remit to the Commission a cashier's check or money order in the amount of the recommended penalty payable to the Treasurer of the State of Nebraska. These funds will be held in a contingent liability account until appropriately allocated upon final order. The compromise settlement agreement and proposed final order must be filed with the Commission by the Commission's counsel. If the Commission approves the agreement and proposed order, the civil penalty proceeding will cease. If the Commission does not approve the proposed order, a hearing on the civil penalty complaint must be held.

007.06 Post Order Requirements:

007.06A. On the issuance of a final order finding that the violation or violations have occurred, the Commission must inform the respondent or the respondent's legal representative no later than five (5) business days of the rendition of the order and of the amount of the penalty, if any.

007.06B. Within the thirty (30) day period immediately following the day on which the Commission's final order is mailed, the respondent who has not previously paid all the civil penalty ordered to be paid must pay the penalty in full by remitting a cashier's check, electronic transfer or money order to the Commission payable to the Treasurer of the State of Nebraska. The Commission will then promptly forward the cashier's check or the money order to the State Treasurer as provided by law.

007.07 Collection of Penalty in Lieu of Payment: A civil penalty assessed pursuant to these rules and unpaid will constitute a debt to the State of Nebraska which may be collected in the manner of a lien foreclosure or sued for and recovered in a proper form of action in the name of the state in the District Court of Lancaster County. Any civil penalty collected by the Commission pursuant to such judicial proceedings must be transmitted within thirty (30) days from receipt to the Treasurer of the State of Nebraska for deposit in the permanent school fund pursuant to section 75-158.

008 RULE MAKING PETITIONS :

008.01 Petition: Any person may petition the Commission requesting the promulgation, amendment, or repeal of a rule or regulation.

008.02 Form: The petition must:

008.02A. Be clearly designated as a petition for a rule change;

008.02B. In the case of a proposed new rule or amendment of an existing rule, must set forth the desired rule in its entirety;

008.02C. In the case of a petition for the repeal of an existing rule, such must be stated and the rule proposed to be repealed shall either be set forth in full or shall be referred to by the Commission rule number;

008.02D. Describe the reason for the rule change;

008.02E. Include an address and telephone at which the petitioner can be reached during regular work hours; and

008.02F. Be signed by:

008.02F1. The petitioner or his or her attorney in which case the attorney must also state his or her address and telephone number and bar number; or

008.02F2. A duly authorized officer of the petitioner, if petitioner is a corporation or other legal entity.

008.03. Within sixty (60) days after submission of a petition, the Commission must:

008.03A. Deny the petition in writing, stating its reasons therefor;

008.03B. Initiate rulemaking or regulation making proceedings in accordance with the Administrative Procedure Act; or

008.03C. If otherwise lawful, adopt a rule or regulation.

009 PETITIONS FOR DECLARATORY ORDER :

009.01 Generally: A request for a declaratory order must be made by a petition that meets the requirements of section 009.

009.02 Who May File: Any person may petition the Commission for issuance of a declaratory order as to the applicability to specified circumstances of a statute, rule, regulation, or order which is within the primary jurisdiction of the Commission.

009.03 When Order Is Appropriate: A declaratory order may be requested on the applicability of a statute, rule, regulation, or order enforced by the Commission. "Applicability" refers to the appropriateness of the relation of the law to the person, property, or state of facts, or its relevance under the circumstances given. It may include such questions as whether the law applies at all, to whom it applies, when it applies, how it applies, or which law applies. Considerations as to whether issuance of a declaratory order is appropriate include:

009.03A. A declaratory order may be requested only on the applicability of existing statutes and rules and regulations.

009.03B. A declaratory order may be requested to obtain a determination of proposed conduct, not to obtain a determination of the effect of conduct that has already occurred.

009.03C. A declaratory order is not a mechanism for review or appeal of a decision made by the Commission in a contested case.

009.03D. A declaratory order may not be requested to obtain a declaration by the Commission that a statute or regulation is unconstitutional or that a regulation of the Commission is invalid.

009.03E. A declaratory order may not be issued by the Commission that would substantially prejudice the rights of a person who would be a necessary party and who does not consent in writing to the determination of the matter by a declaratory order proceeding.

009.04 Form of Petition: A petition for declaratory order must be in the form of either a pleading or letter which shall contain each of the following:

009.04A. A caption, which must include:

009.04A1. The venue "BEFORE THE NEBRASKA PUBLIC SERVICE COMMISSION";

009.04A2. A heading specifying the subject matter and the name of the petitioner; and

009.04A3: The name of the pleading as "PETITION FOR DECLARATORY ORDER".

009.04B. The statements required in subsection 009.05 of this chapter.

009.04C. The signature of the petitioner, or when represented by an attorney, the signature of the attorney.

009.04D. The name and address of the petitioner, and when represented by an attorney, the name, address, telephone number, and bar number of the attorney.

009.04E. The petition must be made on white, letter-sized (8-1/2" x 11") paper.

009.04F. The petition must be legibly typewritten, photo statically reproduced, printed, or handwritten. If handwritten, the petition must be written in ink. Only one side of a page must contain any writing.

009.04G. Any documents attached to a petition must be securely fastened to the pleading, must meet the requirements of 009.04E and 009.04F and, when possible, be reproduced on 8-1/2" x 11" paper or placed in an 8-1/2" x 11" envelope and clearly marked as an attachment to the petition.

009.05 Contents of Petition: To be considered, the petition must include the following:

009.05A. The name and address of the petitioner;

009.05B. The name and address of all persons or entities, known to the petitioner, who may have a specific interest in the applicability of the statute, rule, regulation, or order or who may be adversely affected by the issue sought to be resolved by the petitioner.

009.05C. The statute, rule, regulation, or order upon which the petitioner seeks issuance of a declaratory order;

009.05D. A detailed statement of all of the material facts and specific circumstances which apply to petitioner's request for issuance of a declaratory order;

009.05E. All propositions of law or contentions asserted by the petitioner;

009.05F. A demand for the relief to which the petitioner alleges entitlement. The petition must state the petitioner's position as to how the Commission should rule and why the Commission should rule in the manner requested; and

009.05G. Any documents pertinent to the petition that the petitioner wishes to be considered by the Commission.

009.06 Verification: The Petition must be subscribed and verified by the petitioner. If the petitioner is a corporation, political subdivision, or other entity, then the petition must be subscribed and verified by a duly authorized agent of the petitioning entity.

009.07 Sample Petition: The petitioner may use the sample form of a petition which is attached as "Appendix A" and incorporated within this chapter. The petitioner may also prepare a reasonable facsimile of "Appendix A" so long as the requirements of 9.04, 009.05, and 009.06 of this chapter are satisfied.

009.08 Written Consents: The petitioner must also attach to the petition any written consents obtained from any necessary party that the petition may be determined by use of a declaratory order proceeding.

009.09 Submission and Service of Declaratory Order Petition:

009.09A. The original petition for declaratory order must be filed with the Commission by mail or in person during the Commission's normal business hours.

009.09B. The petition will be deemed as filed when it is actually received by the Commission. The Commission will date stamp all petitions upon receipt.

009.09C. At the same time the petition is filed with the Commission, the petitioner will serve a copy of the petition, by certified mail, return receipt requested, on all necessary parties, including all persons, political subdivisions, corporations, organizations, or other entities who are known to have or claim any interest, legal right, duty, privilege, or immunity which would be directly affected by issuance of a declaratory order in this matter by the Commission.

009.10 Disposition of the Petition:

009.10A. Upon the filing of a petition, the Commission may, in its discretion, do one or more of the following:

009.10A1. Require that additional information be filed before the petition will be further considered;

009.10A2. Require a petitioner to provide notice to persons or entities who may be necessary parties and other persons that a request for a declaratory order has been filed with the Commission;

009.10A3. Schedule a date, time, and location at which the petitioner and any other parties to the proceeding may make an oral presentation on the petition; or

009.10A4. Consider the petition and any attachments without oral presentation.

009.10B. Within thirty (30) days after the petition is filed, the Commission will, in writing:

009.10B1. Issue an order declaring the applicability of the statute, regulation, rule, or order in question to the specified circumstances; or

009.10B2. Agree to issue an order by a specified time declaring the applicability of the statute, regulation, rule, or order in question to the specified circumstances; or

009.10B3. Set the matter for specified proceedings as set forth in subsection 009.09 of this Chapter; or

009.10B4. Decline to issue a declaratory ruling, stating the reasons for the Commission's decision.

009.10C. Notwithstanding section 009.09B of this rule, the Commission may determine at any time that it will not issue a declaratory order if issuance of an order under the circumstances would be contrary to any provisions of section 009.013 of this Chapter. The Commission will notify the petitioner and, if applicable, any intervenor or necessary party in writing when the Commission determines not to issue a declaratory order.

009.11 Intervention in Declaratory Order Proceeding: Intervention by any person or entity in a declaratory order proceeding will be allowed when the following requirements are met:

009.11A. A petition for intervention must be filed in writing with the Commission. Copies must be mailed to all parties to the proceeding.

009.11B. The petition for intervention must be submitted to the Commission, in writing, on 8 1/2" x 11" white paper, and must include each of the following:

009.11B1. The statute, regulation, rule, or order that may apply to or effect the person, property, entity, or facts at issue in the matter;

009.11B2. A statement of facts sufficient to show the intervenor's interest;

009.11B3. A statement of facts which demonstrate that the intervenor's legal rights, duties, privileges, immunities, or other legal interests may be substantially affected by the proceeding or that the intervenor may intervene pursuant to a provision of law;

009.11B4. All propositions of law or contentions asserted by the intervenor; and

009.11B5. A statement of the specific relief requested by the intervenor.

009.11C. The Commission must determine that the interests of justice and the orderly and prompt conduct of the proceedings will not be impaired by allowing the intervention.

009.11D. The Commission may, at its discretion, invite any person or entity to file a petition for intervention.

009.11E. The Commission will grant a petition for intervention if the requirements of § 009.010 are satisfied.

009.11F. The Commission will deny a petition for intervention upon determining that the interests of justice or the orderly and prompt conduct of the proceedings would be impaired by allowing the intervention.

009.11G. The Commission's decision to grant or deny a petition for intervention will be in writing and served upon all parties.

009.12 Declaratory Order Proceedings:

009.12A. Oral argument will be had only on specific order of the Commission. A petitioner, intervenor, necessary party, or the Commission may file a motion for oral argument with the Commission. If opportunity for oral argument is granted, then argument will be scheduled to be conducted not more than forty-five (45) days after filing of the petition. Petitioner and all other parties or, when represented, their attorneys, must be served by the Commission with a notice of the date, time, and location for oral argument. The Commission will provide each of the parties with notice of the proceeding not less than seven (7) days in advance of the scheduled date. Service will be made by certified mail, return receipt requested.

009.12B. Oral argument will be made before the Commission. The Hearing Officer will be in control of the proceeding and will:

009.12B1. Identify the proceeding and introduce himself or herself and identify each party for the record;

009.12B2. Hear the oral argument of the petitioner, intervenor, or necessary parties; and

009.12B3. Close the proceedings.

009.12C. At the declaratory order proceeding, Commission staff will have the right to present oral argument.

009.12D. The Hearing Officer may impose reasonable time limits on the amount of time allocated to each party for oral argument.

009.12E. The parties and Commission staff may file briefs in support of their respective positions. The Hearing Officer may fix the time and order of filing briefs and may direct that briefs be filed prior to the date of oral argument.

009.12F. The oral argument may be conducted either in person or by telephone conference call.

009.13 Issuance of Declaratory Order:

009.13A. The Commission will issue its declaratory order within sixty (60} days of the date on which the petition was filed.

009.13B. The declaratory order will be in writing and shall include the following:

009.13B1. The names of all parties to the proceeding upon which the order is based;

009.13B2. The facts upon which the order is based;

009.13B3. The statute, regulation, rule, or order at issue in the matter;

009.13B4. The Commission's conclusion as to the applil423cability of the statute, regulation, rule, or order to the facts;

009.13B5. The Commission's conclusion as to the legal effect or result of applying the statute, regulation, rule, or order to the facts; and

009.13B6. The reasons relied upon by the Commission to support its conclusions.

009.13C. A copy of the declaratory order must be served upon each party by certified mail, return receipt requested.

009.13D. A declaratory order will have the same status and binding effect as any other order issued in a contested case.

009.13E. If the Commission has not issued a declaratory order within sixty (60) days after the petition has been filed, then the petition will be deemed to have been denied by the Commission.

009.14 Circumstances Under Which Commission Will Not Issue Declaratory Orders:

009.14A. Grounds upon which the Commission may refuse to issue a declaratory order include, but are not limited to, the following:

009.14A1. The petition requests a declaratory order on a matter that is outside the scope of authority of the Commission;

009.14A2. The petition requests review or appeal of a decision made by the Commission in a contested case;

009.14A3. The petition requests a declaratory order on the effect of past conduct;

009.14A4. An investigation for purposes of a formal adjudication, a contested case, or a petition to issue, amend, or repeal regulations is pending before the Commission involving the petitioner on substantially the same or similar facts or issues raised in the petition;

009.14A5. The petition seeks a declaration that a statute or rule or regulation is unconstitutional or invalid;

009.14A6. The issue raised in the petition has been settled by a change in circumstances or other means so as to render moot the need for a declaratory order;

009.14A7. An order would substantially prejudice the rights of a person or entity who would be a necessary party and who does not consent in writing to the determination of the matter by a declaratory order proceeding;

009.14A8. An order would not resolve the controversy or uncertainty; or

009.14A9. The question posed or facts presented are insufficiently specific, overly broad, or are otherwise inappropriate as a basis upon which to decide the matter.

009.14B. Grounds upon which the Commission may determine to refuse to issue a declaratory order include, but are not limited to, the following:

009.14B1. Refusal is necessary to assure adequate allocation of Commission resources are available for issuing rulings on petitions raising questions of greater urgency or significance;

009.14B2. The question presented is of such complexity that the Commission has had insufficient opportunity or resources to develop a fully matured ruling; or

009.14B3. The petitioner fails to file any additional information requested by the Commission or files such information after the date established by the Commission.

009.15 Appeal: A declaratory order is subject to review in accordance with Nebraska Statute.

010 SECURITY ISSUANCES :

010.01 Applications: Applications for approval of a security issuance must set forth the details surrounding the proposed indebtedness or issuance and must be accompanied by the following:

010.01A. a certified copy of the Articles of Incorporation with amendments to date;

010.01B. a certified copy of the minutes from the board of directors' or stockholders' meeting, or other proper corporate authority authorizing the action;

010.01C. a certified copy of the by-laws with amendments to date;

010.01D. current balance sheet and supporting profit and loss statement; and

010.01E. sample of proposed stock certificate.

010.02 Notice: In cases of stock increase and consolidation of stock, a hearing will be held only after proof of publication in a legal newspaper published in the city wherein the common carrier has its principal place of business in the State of Nebraska, or, if no legal newspaper is published in such county, then in some legal newspaper published within the state and having general circulation within such county once each week for two consecutive weeks. The first publication must be at least sixty (60) days prior to the hearing upon the application for the increase or for the consolidation.

History

• Effective 2019-04-21

Chapter 2 Administrative Rules and Regulations

Neb. Admin. Code tit. 291, ch. 2 Administrative Rules and Regulations {#sec-291-nac-2 omnilex-key=us-ne-regs-official--title-291--291 NAC 2}

001 SCOPE :

001.01 General: These rules and regulations govern administrative policies as set forth in Neb. Rev. Stat., Section 75-104, Laws of 1994.

001.02 Definitions: As used in this chapter, unless the context otherwise requires:

001.02A Commission: Nebraska Public Service Commission.

001.02B In the Line of Duty: Attendance at meetings and hearings which relates to the business of the Commission.

001.02C Residence: The domicile maintained in the district which the Commissioner is elected to represent.

001.02D Travel: Travel to and from a Commissioner's residence to the Commission office.

002 REIMBURSEMENT :

002.01 Authorized Expenses: Commissioners may receive, from the state, mileage expenses incurred while traveling to and from their residences to the Commission office.

002.02 Stipulations: To receive reimbursement for mileage, the following conditions must be met:

002.02A Travel must be conducted in the line of duty.

002.02B The mileage rate allowable for travel reimbursement shall not exceed the mileage rate established by the Department of Administrative Services pursuant to Neb. Rev. Stat. Section 81-1176.

002.02C Mileage expenses incurred while traveling to and from a Commissioner's residence to the Commission office in Lincoln must be reported as taxable income.

002.02C1 To report such travel and receive reimbursement, a separate Expense Reimbursement Document, as approved by the Department of Administrative Services, must be completed.

003 APPROPRIATIONS :

003.01 Funding: Mileage expenses, as allowed in this chapter, shall be funded from the program established for Commissioner's expenses.

003.02 Amount: The total amount authorized for reimbursement of Commissioner's expenses in any fiscal year, including mileage, shall not exceed the total funds that are appropriated to the program established for such expenses.

History

• Effective 1999-05-20

Chapter 3 Motor Carrier Rules and Regulations

Neb. Admin. Code tit. 291, ch. 3 Motor Carrier Rules and Regulations {#sec-291-nac-3 omnilex-key=us-ne-regs-official--title-291--291 NAC 3}

001 GENERAL.

001.01 DEFINITIONS. The definitions found in Neb. Rev. Stat. §75-302 (Reissue 2018) apply to these rules. In addition to those definitions, the following apply to this chapter, unless the context otherwise requires.

001.01(A) COMMISSION. The Nebraska Public Service Commission.

001.01(B) DRIVER. Any person who operates a motor vehicle.

001.01(C) LIMOUSINE. A vehicle used to provide limousine service.

001.01(D) LOW SPEED VEHICLE. a (1) four-wheeled motor vehicle (a) whose speed attainable in one mile is more than twenty miles per hour and not more than twenty-five miles per hour on a paved, level surface, (b) whose gross vehicle weight rating is less than three thousand pounds, and (c) that complies with 49 C.F.R. part 571, as such part existed on January 1, 2019, or (2) three-wheeled motor vehicle (a) whose maximum speed attainable is not more than twenty-five miles per hour on a paved, level surface, (b) whose gross vehicle weight rating is less than three thousand pounds, and (c) which is equipped with a windshield and an occupant protection system.

001.01(E) NPSC PLATE. A license plate which is issued by the Commission to holders of Commission authority.

001.01(F) ON DEMAND. Service requested by street hail; offered at a cab stand, airport feeder lines, bus stations, or similar staging area; personal summoning by a passenger; or personal solicitation by a driver of the vehicle or an employee, contractor, or agent of the carrier;

001.01(G) PREARRANGED. Service requested and arranged in advance of the time that the service is to be performed. Nothing in this definition will be construed to allow on demand services. This definition will not replace the definition of prearranged in § 012.02(I) of the rules pertaining to Transportation Network Companies;

001.01(H) PREMIUM FARE. A rate based on an hourly rental of not less than one (1) hour at a scheduled rate which will be set, and periodically reviewed, by the Commission and which will include a minimum rental of not less than one hour. A mileage charge may be assessed for the transportation of the vehicle only for such time before and after the transportation is provided and only in addition to the minimum hourly charged as provided by this definition.

001.01(I) TAXI SOFT METER. a mechanical or digital device that calculates the time-and-distance fares for a taxicab service by software-based devices that utilize GPS or other measurement data in the calculation of time-and-distance fares for taxicab service.

001.01(J) TAXIMETER. a mechanical or digital device that calculates the time-and-distance fares for a taxicab service by a physical connection to the vehicle.

001.02 MATTER TO BE SET FOR HEARING. All matters that require a hearing will be set for hearing at the earliest practicable date and in no event, except for good cause shown, will the time fixed for hearing be more than six (6) months after the date of the filing of the petition. Any application that is not set for hearing as set forth above will be dismissed.

001.03 REQUIREMENTS FOR AN EFFECTIVE COMMON OR CONTRACT CARRIER AUTHORITY.

001.03(A). The following requirements must be fulfilled no later than forty-five (45) days following the date an authority is granted by the Commission.

001.03(A)(i). Filing of proposed rates;

001.03(A)(ii). Filing of Commission required insurance documents; and

001.03(A)(iii). Payment of Annual Fees

001.03(B). An authority issued by the Commission is not effective until the requirements of subsection 001.03A have been fulfilled.

001.03(C). If after forty-five (45) days an applicant has not fulfilled the requirements of subsection 001.03A above, the Commission’s grant of authority will be considered null and void.

002 OPERATIONS RULES.

002.01 UNAUTHORIZED OPERATIONS. Unless specifically exempted by statute, a regulated motor common or contract carrier of passengers, a licensed carrier of household goods, or a licensed carrier transporting employees of a railroad carrier will not operate any motor vehicle on any public highway in this state except in accordance with state law and these rules. A motor carrier transporting household goods or employees of a railroad carrier will not operate upon any public highway without first having obtained from the Commission a license and will not operate except in compliance with the terms and conditions and restrictions of the license. A regulated motor common or contract carrier passengers will not operate upon any public highway without first having obtained from the Commission a certificate or permit of authority and will not operate except in compliance with the terms and conditions and restrictions of the authority or permit. A licensed carrier or regulated motor common or contract carrier does not avoid the jurisdiction of the Commission by engaging in a lease. No carrier, with­out first obtaining written Commission approval, will.

002.01(A). Fail to operate over its entire certificated route.

002.01(B). Discontinue in any part service authorized.

002.01(C). Serve any part of its certificated route by interline agreement with another carrier.

002.01(D). Fail to confine its operations to those authorized under its license, certificate or permit.

002.02 RATES. Each regulated motor carrier will charge and collect rates, issue and deliver freight bills, and obtain receipts showing delivery of ship­ments carried, as prescribed by the Commission in its effective Motor Vehicle Tariffs, schedule of charges, and supplements.

002.03 DEVIATIONS FROM ROUTES. A carrier which has received authority from the Commission to operate only along a designated route may not deviate from their authorized route unless such route has been redesignated, relocated or temporarily closed, when such route has been obstructed by any natural or other cause over which the regulated motor carrier has no control, or when a detour has been designated by the Department of Roads, law enforcement, or an authorized agency of a political subdivision of the state.

002.04 SCHEDULES. Schedules containing the actual rates or charges of such regulated motor carrier for the transportation of passengers in intra-state commerce will be filed with and approved by the Commission, published and kept open for public inspection. In the event that such rates are changed after a permit is issued, the carrier will file a new schedule with the Commission ten (10) days before the effective date of such rates or charges.

003 CLASSIFICATIONS. Pursuant to Neb. Rev. Stat. §75-304, the Commission determines that the following classifications of motor carriers are necessary or desirable in the public interest. All certificates and permits issued by the Commission will be construed and interpreted, and the operations authorized will be tested and determined in accordance with these classifications.

003.01 SERVICE CLASSIFICATIONS. Every applicant for common or contract transportation will designate the type of transportation service requested from the classifications found in this section and will further designate whether (1) such service as requested will be provided as a common carrier or as a contract carrier and, if a contract carrier, the persons or entities contracted with; (2) the service, if granted, will be provided over (a) a regular route which route shall be described in the application or (b) an irregular route which territory the applicant seeks to provide transportation which will be described, and (3) any other restrictions will be applicable. An applicant who desires to transport household goods, employees of railroad carriers, or clients of the Nebraska State Department of Health and Human Services or any contractors of the Department will make specific application for such authority.

003.01(A). Bus service consists of the following elements. (1) the business of carrying passengers and their baggage (2) by bus or van (3) either by charter or regular route (4) either prearranged or scheduled service (5) at a fare approved and on file with the Commission. Bus service may be hired on a charter or special party basis.

003.01(A)(i). Scheduled service means service by any regulated motor carrier who undertakes to transport passengers and their baggage in intrastate commerce by motor vehicle for compensation between fixed termini and over a specific highway or highways upon an established or fixed schedule.

003.01(A)(ii). Charter service means transportation of groups of seven or more persons who collectively contract for transportation on a particular trip paying one lump sum.

003.01(A)(iii). Special party service means the transportation of a group or groups of one or more persons who individually contract for transportation to a common destination with each person paying an individual sum.

003.01(B). Limousine service consists of all of the following elements. (1) the business of carrying passengers for hire by a vehicle (2) along a route under the control of the person who hired the vehicle and not over a defined regular route (3) on prearranged and not on a demand basis (4) at a premium fare.

003.01(C). Open class service consists of all of the following elements. (1) the business of carrying passengers for hire by a vehicle (2) along the most direct route between the points of origin and destination or along a route under the control of the person who hired the vehicle and not over a defined regular route (3) on a prearranged and not on a demand basis (4) at a mileage based, per trip fare, or an hourly rate.

003.01(C)(i). In calculating charges for transportation, a carrier charging a mileage-based fare may use only the actual loaded mileage traveled by the vehicle to transport such passengers. Mileage based charges may not be augmented or enhanced through any calculation that does not reflect actual mileage traveled.

003.01(D). Taxicab service consists of all of the following elements. (1) the business of carrying passengers for hire by a vehicle, subject to the provisions of Rule 010.02 (2) along the most direct route between the points of origin and destination or a route under the control of the person who hired the vehicle and not over a defined regular route (3) on a prearranged or demand basis (4) at a metered mileage based or per trip fare according to the provisions of Rule 010.02H (5) commencing within and/or restricted to a defined geographic area.

003.01(E). Unique Purpose service consists of all of the following elements. (1) the business of carrying passengers for hire (2) by low-speed vehicle (3) by regular routes, irregular routes, or along a route under the control of the person who hired the vehicle (4) on a prearranged or on-demand basis (5) at a per trip fare or hourly rate approved and on file with the Commission.

003.02 RESTRICTIONS. In addition to the other applicable Motor Carrier Rules in this chapter, the following provisions apply to all classes of service unless otherwise specifically provided in these rules.

003.02(A). The Commission, based on the record before it in an application proceeding, restrict the transportation of passengers by type of vehicle, geographic territory, commencement point or termination point, or any other lawful factor which the Commission may determine is necessary or reasonable and in the public interest. Covenants not to compete or similar agreements that restrict the proposed service or the geographic territory of a proposed service that the Commission finds are not in the public interest will not be considered lawful and will not be approved in an application proceeding.

003.02(B). No carrier will transport household goods or employees of railroad carriers absent being granted a license from the Commission.

003.02(C). No carrier will transport passengers under contract with the Nebraska Department of Health and Human Services or any subcontractors of the Department of Health and Human Services absent specific authorization from the Commission. In order to receive such authorization, the applying carrier must demonstrate that such authorization is or will be required by the present or future convenience and necessity separate and apart from the present or future convenience and necessity demonstrated on the underlying certificate of authority. Authorization to transport HHS clientele will not be available or granted to carriers that only have limousine service authority.

003.03 CLASSIFICATIONS FOR PURPOSES OF REQUIRED INSURANCE. The following classifications are established for the purpose of determining insurance requirements for vehicles operated under authority from the Commission. Operators of motor vehicles are required to carry the minimum levels of financial responsibility as prescribed. Operators will also comply with all applicable insurance regulations as found in Rule 006 of this chapter.

003.03(A). Licensed carriers of household goods are required to carry liability insurance of not less than seven hundred and fifty thousand dollars ($750,000.00) plus cargo insurance of not less than five thousand dollars ($5,000.00) of coverage.

003.03(B). Regulated or Licensed carriers of passengers in vehicles with a rated seating capacity of sixteen (16) passengers or more as originally manufactured or as currently modified are required to carry liability insurance of not less than five million dollars ($5,000,000.00) of coverage.

003.03(C). Regulated or Licensed carriers of passengers in vehicles with a rated seating capacity between eight (8) and fifteen (15) passengers are required to carry liability insurance of not less than one million, five hundred thousand dollars ($1,500,000.00) of coverage.

003.03(D). Carriers of passengers in vehicles with a rated seating capacity of no more than seven (7) passengers are required to carry liability insurance of not less than five hundred thousand dollars ($500,000.00) of coverage.

004 FEES AND IDENTIFICATION.

004.01 APPLICATION FEE. An application fee approved annually by the Commission will be payable by the applicant at the time of filing an application. This application fee will not apply to any person who contracts for transportation services with the Nebraska Department of Health and Human Services, or any agency organized under the Nebraska Community Aging Services Act who is not required to hold a certificate from the Commission pursuant to the provisions of Neb. Rev. Stat. sections 75-303.01 and 75-303.02 (Cum. Supp. 2000).

004.02 ANNUAL FEES. An annual fee approved annually by the Commission will be remitted for each motor vehicle operated by each regulated motor carrier. A fee approved annually by the Commission will be remitted by each regulated motor carrier for each truck-trailer or tractor-trailer combination operated. Such annual fees are due and payable by every regulated motor carrier on the first day of January of each year, and is delinquent on the first day of March of that year. If the initial certificate or permit is issued to a motor carrier on or after July 1, the fee will be fifty percent of the annual fee.

004.03 IDENTIFICATION CARDS. The following provisions concern­ing identification cards apply to all regulated motor carriers.

004.03A ISSUANCE. The Commission will issue annual­ly, without additional charge, an identification card for each motor vehicle, upon payment of an annual fee, and upon compliance with all statutory requirements and rules and regulations of the Commission. The card will con­tain the certificate or permit number issued by the Commission, the name and address of the holder, and other information as the Commission may require. Upon replacement or addition of any vehicle, a new identification card will be ob­tained by the regulated motor carrier by application to the Commission and the previously issued identification card will be surrendered to the Commission.

004.03B DISPLAY. No motor vehicle subject to Commis­sion jurisdiction will be operated without an identifi­cation card, protected from defacement, in the driver's cab.

004.04 PSC PLATES. The following provisions concerning PSC plates will apply to all regulated motor carriers.

004.04A ISSUANCE. The Commission will issue PSC plates to motor carriers who have complied with all statutory requirements and rules and regulations of the Commission, and who have completed and filed a copy of the forms furnished by the Commission to provide a detailed description for each unit for which a PSC plate is required.

004.04B DISPLAY. No vehicle will be operated without the secure attachment of its PSC plate in the following manner.

004.04(B)(i). On passenger carrying units, at the front or rear of the vehicle, and easily legible from the front or rear.

004.04(B)(ii). On power units on any portion of the front part, preferably to the regular vehicle license so as to be easily read from the front.

004.04(B)(iii). On straight trucks and vehicles with no more than two axles on either the front or rear so as to be easily legible.

004.04(C) TRANSFER. A transferee or lessee of a certifi­cate or permit may use the PSC plates of the transferor or lessor for the remainder of the calendar year, without payment of an additional fee for use of the plates, upon approval in writing by the Commission after the transferee or lessee has applied to the Com­mission for the approval, and has given the Commission a full, written description of the equipment or vehicle to which the PSC plates are to be transferred and any other relevant information requested by the Commission. The plates will be used only on the specific equipment or vehicle to which they are assigned.

004.04(D) LOSS. If a plate is lost or destroyed, such loss or destruction will be reported to the Commission within forty-eight (48) hours after the discovery of such loss or destruction. A substitute plate may be obtained upon making request for such plate, upon filing an affidavit with the Commission setting forth the time, place and circumstances surrounding the loss or destruction, and upon payment of a fee approved annually by the Commission.

004.04(E) RETURN OF PLATES. Upon suspension, cancellation, or revocation of a certificate or permit, or upon sale, transfer, or other disposition of equipment or vehicles to which a PSC plate has been assigned, the plates will be re­turned to the Commission within ten days, except if such plate has been transferred to a transferee or lessee in accordance with these rules.

004.05 DOOR DISPLAYS. The following provisions concerning door displays will apply to all licensed and regulated motor carriers except to those carriers providing limousine service.

004.05(A) CONTENTS. The name, or trade name, of the carrier under whose authority the vehicle is being operated, and the Commission application number assigned to the operating authority, excluding supplement num­bers, will be displayed on both doors or sides of each powered vehicle. If the name of any person other than the operating carrier appears on a vehicle, the name of the operating carrier will be followed by the informa­tion required in this section and be preceded by the words "operated by". Additional identification may be displayed if it is consistent with the above require­ments.

004.05(B) SIZE AND COLOR. Each door display will be legible at all times. The application number will be readily legible, during daylight hours, from a distance of 50 feet (15.24 meters) while the vehicle is stationary. The color scheme of the display will be in distinct contrast to the background color of the vehicle.

004.05(C) REMOVAL. Any numeral or letter painted on equipment in accordance with this section will be removed by the carrier when possession or ownership chang­es, or when a different carrier operates such equip­ment.

005 SAFETY REGULATIONS.

005.01 MINIMUM QUALIFICATIONS. Each person driving a motor vehicle subject to the Commission jurisdiction will possess the following minimum qualifications.

005.01(A). Sound physical and mental condition with no mental, nervous, organic, or functional disease or structural defect or limitation likely to interfere with safe driving.

005.01(B). Adequate sight which includes vision with visual acuity of at least 20/40 (Snellen) in each eye either without corrective lenses, or visual acuity separately corrected to 20/40 (Snellen) or better with corrective lenses, distant binocular acuity of at least 20/40 (Snellen) in both eyes with or without corrective lenses, field of vision of at least 70 degrees in the horizontal meridian in each eye, and the ability to recognize the colors of traffic signals and devices showing standard red, green and amber. Persons who require corrective lenses to meet the minimum sight requirement must wear such lenses while operating the motor vehicle.

005.01(C). Adequate hearing which includes hearing of not less than 10/20 in the better ear for conversational tone without a hearing aid.

005.01(D). Freedom from the use of narcotics or illegal drugs.

005.01(D)(i). Pre-employment drug and alcohol testing will be required of all drivers transporting railroad personnel. The testing will be done for alcohol and controlled substances as provided by 49 CFR Parts 40 and 382 as such regulations existed on January 1, 2013.

005.01(D)(ii). A driver will be qualified to drive if the alcohol test results indicate an alcohol concentration of zero (0) and the controlled substance test results indicate a verified negative result.

005.01(D)(iii). A driver will be disqualified to drive if the alcohol and controlled substance test results are not in compliance with 49 CFR Parts 40 and 383; or if the driver refuses to provide a specimen for testing; or if the driver submits an adulterated, diluted or substituted sample for the tests to be performed.

005.01(E). Eighteen 18 years of age.

005.01(F). Possession of a valid operator's license appropriate for the vehicle being operated.

005.01(G). Ability to read, speak and understand the English lan­guage.

005.02 MEDICAL CERTIFICATE. Each motor carrier will have on file a certificate of physical examination signed by a licensed physician or a licensed physician assistant for every driver in its employment, attesting that the physician or licensed physician assistant has exam­ined the driver to meet the require­ments in 005.01. Such certification will be renewed no less than every two years. Physical certificates obtained pursu­ant to federal regulations will meet the requirements of this section.

005.03 BACKGROUND CHECK. Each operator of a motor vehicle subject to the Commission's jurisdiction will be subject to a criminal background check submitted to the Commission.

005.04 IMPAIRED ALERTNESS. No person will operate a motor vehicle while such operator's alertness is impaired by fatigue, illness, or other causes.

005.05 HOURS OF SERVICE. No motor carrier will permit or require any driver employed by such motor carrier to drive nor will any such driver drive (1) more than twelve (12) hours following ten (10) consecutive hours off duty or (2) for any period after having been on duty sixteen (16) hours following ten (10) consecutive hours off duty.

005.06. A logbook, (Form MCS-59), as required by the United States Department of Transportation in Section 395.8 of the Federal Motor Carrier Safety Regulations, will be maintained by each driver traveling more than one hundred (100) air road miles from the garage or terminus at which such driver reports for work.

005.06(A). The original copy of each day’s logbook sheet for each over-the-road driver will be kept on record at the home office or base of operations of each motor carrier in the State of Nebraska for not less than one year.

005.06(B). The copies will be filed according to the date of the logbook sheet.

005.06(C). All filings will be available for examination by the Commission.

005.06(D). For all passenger carriers that must comply with this are not required to comply with the trip log requirements set out in rule 010.01E and its subparts.

005.07 INSPECTION OF VEHICLES. The Commission may at any time, but at least annually, inspect or cause to be inspected any vehicle subject to its jurisdiction. The inspections may be conducted at any place except that inspections of passenger carrying vehicles will not impede or delay the schedule upon which the vehicle is operating. The Commission may at any time enter the operating premises of the carrier or into such vehicles as may be operated by the carrier to ascertain whether any statute, rule, or regulation has been violated.

005.08. Each vehicle shall at all times be kept in proper physical and mechanical condition so as to render safe and comfortable public service, as may be determined by the Commission.

005.08(A) MINOR DEFECTS IN EQUIPMENT. Minor defects in equipment that are not likely to endanger life or property may be corrected by maintenance staff of the carrier. When the defects have been corrected, the carrier, or its agent, will notify the Commission that corrections have been made.

005.08(B) MAJOR DEFECTS. If the Commission finds that a motor vehicle under its jurisdiction is unsafe or poses a significant risk to public safety, it may order the carrier to take the vehicle out of service and marked as out of service until repairs have been made and the vehicle has been re-inspected by Commission personnel.

005.08(C) APPEAL BY CARRIER. A carrier, when notified by the Commission that a motor vehicle has been declared and marked "Out Of Service" under the provi­sions of subsection 005.9B may, before the close of the first business day following the date of such notice, appeal by sending notice, by facsimile or in person to the Commission.

005.08(C)(i). Upon receipt of such appeal notice, the Director of the Transportation Department of the Commission will arrange for the assignment of an inspector to re-inspect or cause to have re-inspected such vehicle within twenty-four (24) hours from date of receipt of the appeal which will include only those normal hours of operation for the Commission.

005.08(C)(ii). If upon re-inspection, the motor vehicle is found in safe condition and to pose no significant risk to public safety, the Commission will notify the carrier by telephone or facsimile that the vehicle is no longer out of service and that the motor vehicle may be put into service without further delay.

005.08(C)(iii). If, upon re-inspection, the vehicle is found to be in an unsafe condition or that the vehicle still poses a significant risk to public safety, the Commission will notify the carrier who owns and operates the vehicle that the appeal of the finding placing the vehicle out of service is dismissed.

005.08(C)(iv). The vehicle may not be placed back into service until the necessary repairs have been made and an inspection finds that the vehicle is no longer unsafe or poses a significant risk to public safety and the Commission certifies in writing that the vehicle can be placed back into service.

006 INSURANCE COVERAGE.

006.01 MINIMUM AMOUNTS OF COVERAGE. Unless otherwise provided in a license, certificate of public convenience and necessity, or permit issued by the Commission, each motor carrier will have liability coverage at any time for any one accident, by insur­ance, surety bond, self insurance, or a combination thereof, in the minimum as required by Rule 003.03.

006.02. In addition to the requirements for minimum insurance as provided in Rule 003.03, all carriers of passengers will also carry uninsured and underinsured motorist coverage with a minimum limit of one hundred thousand ($100,000)per person, three hundred ($300,000) aggregate per accident coverage.

006.03. All motor carrier insurance required to be filed with the Commission will be continuous in nature, subject to cancel­lation by the insurer or the insured within thirty (30) days written notice to the Commission. Insurance for a specified term (e.g. six months or one year) will not be acceptable to meet the motor carrier insurance requirements of these Rules.

006.04. Proof of adequate coverage by insurance or bond will be made by filing a uniform motor carrier insurance filing or a uniform motor carrier surety bond filing in lieu of the policy of insurance or surety bond. Such filing may be made electronically in a manner designated by the Director of Transportation of the Commission. Upon receipt by the Commission of a paper filing, which will be in triplicate, one copy will be returned to the home office of the insurance or surety company, one copy will be forwarded to the insured, and the original will be retained by the Commission.

006.05 TYPES OF FILINGS. Insurance filings will be made on the following designated forms unless the Director of Transportation will specifically authorize another type of filing.

006.05(A) ALL LIABILITY INSURANCE FILINGS WILL BE FORM E, ENTITLED. Uniform Motor Carrier Bodily Injury and Property Damage Liability Certificate of Insurance.

006.05(B) ALL LIABILITY SURETY BOND FILINGS WILL BE FORM G, ENTITLED. Uniform Motor Carrier Bodily Injury and Property Damage Liability Surety Bond.

006.05(C) ALL CARGO INSURANCE FILINGS WILL BE FORM H, ENTITLED. Uniform Motor Carrier Cargo Certificate of Insur­ance.

006.05(D) ALL CARGO SURETY BOND FILINGS WILL BE FORM J, ENTITLED. Uniform Motor Carrier Cargo Surety Bond.

006.05(E) ALL INSURANCE CANCELLATION FILINGS WILL BE FORM K, ENTITLED. Uniform Notice of Cancellation of Motor Carrier Insurance Policies.

006.05(F) ALL SURETY BOND CANCELLATIONS FILINGS WILL BE FORM L, ENTITLED. Uniform Notice of Cancellation of Motor Carrier Surety Bonds.

006.06. Each insurance policy or bond will be written in the full and correct name of the individual, partnership, corporation, limited liability company or other person as shown on the insured's certificate or permit. All partners in a partnership will be named in the policy or bond.

006.07. Motor carrier insurance required under these rules will provide.

006.07(A). The liability of the insurance company will extend only to the insured named in the policy and its employees or lessees notwithstanding any clause in the policy providing for additional insured.

006.07(B). The liability of the insurance company will not be affect­ed by any provision in the policy or the endorsement thereon or viola­tion thereof by the insured, or by the financial condition of the insured.

006.07(C). The insurance company will be liable whether the loss, damage, injury or death occurs on the route or in the territory authorized to be served by the insured or elsewhere in the state.

006.07(D). The insurance company will be liable within the limits of liability as set out in section 003.03 and its subsections of these rules, regardless of whether the motor vehicles or termini, warehouses or other facilities used in connection with the transportation of the cargo are specifically described in the policy or not.

006.07(E). The insurance company will pay, within the limits of liability set out in section 003.03 and its subsections of these rules, any final judgment recov­ered against the insured for bodily injury to, or death of, any person, except employees of insured while engaged in the course of their employment, or loss or damage to property of others, except property leased or rented by the insured, which results from negligent operation, maintenance, or use of motor vehicles under the certificates of public convenience and necessity, or permit issued to the insured by the Commission.

006.07(F). The liability of the insurance company on each vehicle will be a continuing one notwithstanding any recovery under the schedule of limits set out in section 006.05.

006.07(G). No provision contained in the policy or endorsement thereon, or violation thereof by the insured, will affect in any way the right of any shipper or consignee to relieve the insurance company from liability for the payment of any claim for which the insured may be held legally liable to compensate shippers or consignees, irrespective of the financial condition of the insured.

006.08. Each policy of insurance or surety bond issued pursu­ant to these regulations will be endorsed by authorized personnel of such company.

006.09. Policies of insurance, surety bonds, and the certif­icates and endorsements thereof will not be canceled, and liability will not cease until after thirty (30) days written notice by the insurer has been given to the Commission. Such thirty (30) day period will commence on the date the cancellation filing, as set out in section 006.05 is received by the Commission.

006.10. No insurance policy or surety bond will be accepted by the Commission unless written by a company which has been granted a certificate of authority by the Department of Insurance of the State of Nebraska; or which is a properly registered risk retention group as authorized under the federal Liability Risk Retention Act and the state's Risk Retention Act, provid­ed that when a carrier is, after diligent effort, unable to obtain an insurance policy or surety bond from an authorized company, such carrier may obtain a policy or bond from a non-admitted company pursuant to the Surplus Insurance Act.

006.11. A carrier may apply to qualify as a self-insurer by furnishing the Commission a true and accurate state­ment of its financial condition and any other evidence required by the Commission which will estab­lish to the Commission's satisfaction, the ability of the carrier to meet the requirements of section 003.03 and its subsections without adversely affecting the carrier's financial stability. Such self-insurance will become effective only upon the written approval of the Commission and will be subject to review at the Commission's discretion.

006.12. The Commission may require any carrier qualifying as a self-insurer to deposit securities, in any amount up to the requirements set by section 003.03 and its subsections, with any financial institution within this state.

006.13. Any carrier may withdraw its qualifications as self-insurer, upon written notice to the Commission and compliance with the provisions of section 006.04.

006.14. The Commission may revoke its approval of any insurance policy, surety bond, or qualification as a self-insurer, if, in its judgment, such security no longer complies with these regulations, or fails to provide satisfactory or adequate protection for the public.

007 ACCOUNTING AND STATISTICAL INFORMATION.

007.01 BUSINESS RECORDS RETENTION AND INSPECTION. Each carrier will, for a period of one (1) year, maintain copies of records related to the movement of passengers or household goods. All such records will be available to the Commission for inspection.

007.02 NOTIFICATION OF CHANGE OF ADDRESS OR CONTACT INFORMATION. All carriers will inform the Commission of changes in address or contact information.

008 LEASING AND INTERCHANGE OF EQUIPMENT.

008.01 SCOPE. Common or contract carriers may engage in leasing only as provided by these rules. Failure to observe the provisions of a lease or its preparation will be a violation of these rules. Leases filed with the Commission in accordance with these rules will be retained by the Commission, the Lessor, and the Lessee for not less than three years after cancellation of such lease.

008.02 LEASING EQUIPMENT. Common or contract carriers may lease equip­ment which they do not own to augment their existing equipment, other than that exchanged between motor carriers in interchange service, only under the following conditions.

008.02(A). Each lease for the use of equipment will.

008.02(A)(i). Be made between the lessor and lessee;

008.02(A)(ii). Be in writing and signed by the parties there­to, or their duly authorized agents;

008.02(A)(iii). Specify the time period for which the lease applies and the time, date, or circumstance on which the lease begins and ends, the duration of which will coincide with the time for giving receipts for the equipment or the vehicles as re­quired by these rules.

008.02(A)(iv). Specify the compensation to be paid by the lessee for the equipment or vehicle.

008.02(A)(v). Provide for the exclusive possession, control, and use of the equipment or vehicle, and for the complete assumption of responsibility in respect thereto by the lessee for the duration of the lease, or otherwise may be assigned by the lessee, in writing, to an independent contractor who will operate equipment under the lessee’s authority.

008.02(A)(vi). Provide that the lessee will be responsible for carrying the insurance required by the Commission not with­standing any agreement between the parties that the les­sor will hold the lessee harmless and provide certain insurance covering the lessee.

008.02(A)(vii). Be approved by the Commission.

008.02(A)(viii). Be executed in quadruplicate, with all copies filed with the Commission to be stamped for approval. One copy will be retained by the Commission and the other three returned to the lessee of which the lessee will retain one, carry one copy on the equipment or vehicle and send the remaining copy to the lessor for retention.

008.02(B). Notwithstanding the provision of rule 008.02(E), a common or contract carrier lessee of equipment or vehicles may subsequently lease that leased equipment or vehicle to another common or contract carrier without being in violation of these rules if the subsequent lease also conforms to the provisions of this section.

008.02(C). When possession of equipment is taken by lessee, the lessee will give to the lessor a receipt specifically identifying the equipment and stating the date and time of day possession is taken. When the possession by the lessee ends, the lessee will obtain from the lessor a receipt specifically identi­fying the equipment and stating the date and time of day posses­sion is taken.

008.02(D). It will be the duty of the lessee before taking posses­sion of equipment or vehicle, to inspect the same in order to ensure that the equipment complies with the safety regulations of section 005 of these rules. The person making the inspection will certify the results thereof in a report which will be retained by the lessee for the duration of the lease. When equipment other than a power unit is leased, any form of report applicable to such equipment or vehicle may be used. If the inspection discloses that the equipment or vehicle does not comply with the requirements of section 005 of these rules, possession will not be tak­en. In all instances in which inspection is made, the lessee will certify on the report that the person making the inspection is competent and qualified to make such inspection as a representa­tive of the lessee.

008.02(E). The lessee will identify the leased equipment or vehicle during the duration of the lease. Before relinquishing possession of the equipment or vehicle to the lessor, the les­see will remove any PSC plates or other signs displayed on such equipment or vehicle showing it as the operating carrier. When a power unit owned by a lessor holding operating authority from the Commission is leased, the PSC plates and the cab card belonging to the lessor may remain on or in the power unit.

008.02(F). Before any person other than a regular employee of the lessee is assigned to drive the equipment or vehicle operated under these rules, the lessee will make certain that the driver is familiar with, and that employment does not result in any violation of section 005 of these rules. The driver will furnish to the lessee a certificate of physical examination in accordance with section 005.03 of these rules.

008.02(G). Each lessee who uses equipment or vehicle under these rules will prepare and retain for one year, a document covering each trip for which the equipment or vehicle is used. This document will contain the name and address of the lessor, the point of origin, the com­modity carried, if any, the time and date of departure, the point of final destination, and the lessee's certificate or permit number which has been affixed to the equipment or vehicle. Bills of lading, way-bills, freight-bills, manifests, or other paper identifying the lading will be carried on the equipment or vehicle during use. Copies of these documents will be kept by the les­see for not less than three (3) years.

008.02(H). The use of leased equipment will not change operations, or the relations of the parties involved as they relate to the jurisdiction and control of the Commission. The lessee will continue to remain responsible to the Commission and will answer to the Commission for the performance of its common or contract carrier’s responsibilities and for the conduct of any of the drivers with whom it has a lease.

008.03 INTERCHANGE OF EQUIPMENT. For the purposes of this section, the common or contract carrier leasing the equipment to another common or contract carrier is referred to as the transferor, and the common or con­tract carrier which takes possession of the equipment will be referred to as the transferee. Common or contract carriers may inter­change equipment with one or more common or contract carriers only under the following conditions.

008.03(A) WRITTEN AGREEMENT. The written contract, lease or other arrangement providing for interchange, hereinafter, the written agreement, will specify in a readily apparent manner that it is an interchange agreement and will.

008.03(A)(i). Describe specifically the equipment to be inter­changed and specify the point or points at which the interchange is to occur.

008.03(A)(ii). Specify the use to be made of the equipment and the consideration for the use.

008.03(A)(iii). Be signed by the parties to the written agree­ment or their duly authorized agents.

008.03(A)(iv). Be executed in quadruplicate, with all copies filed with the Commission to be stamped for approval.

One copy will be retained by the Commission and the other three returned to the transferee. The transferee shall retain one copy for itself, carry one copy on the equip­ment and send the remaining copy to the transferor for retention.

008.03(B). In order to engage in the interchange of equipment, the certificates or permits held by transferee and transferor must authorize the transportation of the commodities proposed to be transported and must authorize service from and to the point where the physical interchange occurs.

008.03(C). Traffic transported under interchange service will move by means of through bills of lading issued by the originating carrier, and the rates charged and revenues collected must be accounted for in the same manner as if there had been no inter­change of equipment. Charges for the use of the equipment will be kept separate and distinct from the divisions of the joint rates or the proportions thereof accruing to the carriers.

008.03(D). The transferee will have the equipment inspected in the manner provided for in section 008.02(D) of these rules. Equipment which does not comply with the safety regulations will not be operated until the defects have been corrected.

008.03(E). A common or contract carrier which operates a power unit in interchange service as the transferee will identify such equip­ment in accordance with these rules. Upon completion of the inter­change agreement, the transferee will remove any PSC plate, legend, or signs showing the transferee as the operating carrier before relinquishing possession of the equipment.

008.03(F). A PSC plate need not be purchased by the transferee if the PSC plate purchased for the power unit by the transferor remains on the power unit.

008.03(G). The transferee of equipment on a through movement involv­ing two or more carriers will be considered the owner of the equip­ment for the purpose of leasing the equipment for movement to destination or return to the originating carrier.

009 BUSES. The following provisions pertain only to carriers providing bus service as defined in rule 003.01A et seq..

009.01 REFUSAL TO CARRY. No driver of any vehicle which transports passengers will refuse to carry any person offering himself or herself for carriage at any time at any regular stopping place who tenders the regular fare to any regular stopping place on the route of such carrier, or between the termini of the route, unless at the same time of such offer the vehicle is fully occupied or unless the person tendering such fare is intoxicated or acting in a disorderly manner.

009.02 TRAILERS. Unless specifically authorized in writing by the Commission, no carrier will transport passengers in a vehicle with any trailer or other vehicle attached, except in a case where a vehicle has become disabled while on a trip and is unable to run on its own power, such disabled vehicle may be towed to a point where repair facilities are available.

009.03 AISLES. Drivers will at all times keep the aisles from front to rear of their buses free from obstructions of any kind, and will not permit passengers to ride on any other part of the vehicle other than the seats while the vehicle is in motion except in an emergency. Passengers will not be allowed in front of a two inch (2") wide white line which will be painted on the floor of each vehicle immediately behind the driver's seat. Each vehicle will have a notice visible at the front of the vehicle that passengers must remain behind the white line.

009.04 HEAT. Vehicles used to transport passengers will be equipped with a heating system sufficient to keep the vehicle comfortable for its passengers.

009.05 LIGHTING. Vehicles will be equipped with lights of not less than two candle power within the vehicle and so arranged as to light up the whole of the interior except that portion occupied by the driver.

009.06 EMERGENCY EXIT DOORS. All vehicles with a seating capacity of eight (8) or more passengers will have emergency exits either in the form of push out windows, or a door on the opposite side of the vehicle entry or at the rear of the vehicle. The door will be equipped with a latch which may be readily operated in an emergency. There shall be no obstructions, either inside or outside, which would prevent the door from being opened. The exits will be easily accessible to passengers.

009.07 TIMETABLES. Each carrier who transports passengers in regular scheduled service will file with the Commission prior to commencing operations, a timetable or schedule showing the time of arrival or departure of its vehicles at each point of the route and the number of trips made daily. When any change is made in the table or schedule, a new table or schedule will be filed with the Commission. All time schedules and revisions will be filed with the Commission not less than ten (10) days prior to the proposed effective date unless otherwise authorized by the Commission. No time schedule or revision will be effective until approved by the Commission.

009.08 CHARTER SERVICE AND SPECIAL PARTY SERVICE. The following provisions apply only to charter service and special party service as designated.

009.08(A). No charter or special party service will be conducted between the same points or over the same route so frequently as to be construed as a regular or scheduled service.

009.08(B). Special party service will not be conducted between points on the route of another route so frequently as to be construed as a regular or scheduled service.

009.08(C). Carriers holding certificates restricted to charter service or sightseeing operations will be prohibited from conducting special party operations.

009.08(D). Each vehicle used in charter or special party service will be so designated by a sign on the front of the vehicle used for such service.

09.08(D)(i). Each sign must contain the following information.

009.08(D)(i)(a). Affirmation or denial that the owner or operator of the vehicle is allowing the consumption of alcoholic liquor in the vehicle by an individual who is twenty-one years of age or older; and

009.08(D)(i)(a)(i). As used in this section, alcoholic liquor is as defined under neb. Rev. Stat. 53-103.2.

009.08(D)(i)(b). Whether the current trip is being performed under a charter or a special party designation in accordance with rules 003.01A2 and 003.01A3; and

009.08(D)(i)(b)(i). If the current trip is being completed under a special party designation, then the sign must also include the license number assigned to the operating authority by the Nebraska Liquor Control Commission.

009.08(D)(i)(c). The name or trade name of the carrier under whose authority the vehicle is being operated; and

009.08(D)(i)(d). The Commission authority number, excluding supplemental numbers.

009.08(D)(ii). Each sign will be legible at all times from a distance of 50 feet (15.24 meters) while the vehicle is stationary. The color scheme of the lettering will be in distinct contrast to the background color of the sign.

009.08(E). Each carrier conducting charter or special party service will file with the Commission a tariff of rates for the transportation of parties and charges for dead head mileage which will be approved by the Commission prior to implementation. The tariff will also indicate at which points the carrier has equipment available for charter party service. No equipment will be held out as available at any non-authorized point.

010 PROVISIONS APPLICABLE TO TRANSPORTATION OF PASSENGERS. The following provisions will be applicable to the transportation of passengers as designated within this section.

010.01 PROVISIONS APPLICABLE TO ALL CLASSIFICATIONS OF PASSENGER TRANSPORTATION. In addition to the other applicable Motor Carrier rules in this chapter, the following provisions will be applicable to all classifications of service for the transportation of passengers.

010.01(A) VEHICLE TITLE. All vehicles will be owned by, and registered in, the name of the certificate holder, except that the certificate holder may engage in equipment leasing as provided by these rules.

010.01(B). If a person applies for carriage and is willing and able to tender the fare, each operator will convey such person to the person's destination unless.

010.01(B)(i). The passenger is in such condition of uncleanliness that carriage in the vehicle would be a violation of any law.

010.01(B)(ii). The behavior of the passenger is such that the person poses a safety risk to the operator, other passengers, or the vehicle is in danger of being damaged

010.01(B)(iii). The point of origin or destination or immediate approach is impassable or dangerous.

010.01(C). In addition to complying with the minimum qualifications for driving a motor vehicle subject to Commission jurisdiction, all operators will.

010.01(C)(i). Be competent to conduct the applicable transportation service safely and courteously.

010.01(C)(ii). Not smoke inside the vehicle.

010.01(C)(iii). Shall be within the ages of twenty-one (21) and seventy (70) except that the Commission may waive the maximum age limit for an operator who is over seventy (70) if the carrier desiring to employ the operator can show that the operator is insurable, has no medical or other disability which prevents him or her from safely operating the vehicle and has a satisfactory driving record. Any such waiver will be in writing and renewed annually. Any application for waiver or renewal will be accompanied by a medical certificate required by rule 005.02.

010.01(D). Each carrier will retain articles left in vehicles by passengers for not less than thirty (30) days. Upon request from any passenger, the carrier will make a reasonable search for any article believed to have been left in a vehicle.

010.01(E) TRIP LOG. All carriers will maintain a trip log which contains the information prescribed in this section. Such log will be completed following the delivery of the passenger to his or her destination and signed by the driver. The Commission may, upon application and written approval, allow for electronic filing and storing of the information required in this section provided that all of the information herein prescribed is included except that the full name of the driver may be filed in place of the signature. All records required by this section will be retained by the carrier for a period of two (2) years from the date of the transportation of the passenger.

010.01(E)(i). The name of the individual engaging or hiring the vehicle and his or her address.

010.01(E)(ii). The address of the point where the passenger was picked up and the point of destination and the times they occurred.

010.01(E)(iii). The amount charged and collected.

010.01(F) RECEIPT. Upon demand of any passenger, a receipt for services will be given at the time of payment. Such receipt will contain the name of the company, the name of the operator, the vehicle fleet number, the total amount paid, and the date of payment.

010.01(G) COMPLAINTS. Every vehicle will have a notice posted, clearly legible and visible from the passenger compartment, which reads.

"DIRECT COMPLAINTS REGARDING THE OPERATION

OF THIS VEHICLE TO.

The Nebraska Public Service Commission

300 The Atrium, 1200 N Street

Lincoln, Nebraska 68508

1-800-526-0017 (Nebraska)

1-402-471-3101 (Lincoln)"

010.02 PROVISIONS APPLICABLE ONLY TO THOSE CARRIERS PROVIDING TAXICAB SERVICE. The following provisions apply only to those carriers who are authorized to provide taxicab service.

010.02(A). If a person applies for carriage and is willing and able to tender the fare, the operator will convey such person to his or her destination subject to rule 010.01B, or unless the vehicle is already engaged.

010.02(B). Operators may solicit passengers only at taxicab stands established by the city, while seated in the driver's seat, or while standing beside the vehicle. Passengers will not be solicited by outcries or hawking.

010.02(C). Carriers will comply with all applicable municipal ordinances relating to the qualification of taxicab operators which are not in conflict with these rules.

010.02(D). The number of passengers carried by a vehicle will not exceed seven persons, including the driver, or the rated capacity of such vehicle as prescribed by the maker of the vehicle, whichever is smaller. Except for transportation provided under contract with the Nebraska Department of Health and Human Services, whenever any vehicle is occupied by a passenger or passengers, the operator will not permit any other person to occupy the vehicle except with the consent of the first passenger or passengers. Passengers will be informed of this provision by a card, posted inside the vehicle, stating the schedule of rates and charges for the vicinity in which the vehicle is operated and in the following form.

"FOR YOUR PROTECTION.

You, as the first passenger in this taxicab, are the one to decide who will ride with you. Unless it is at your request or with your consent, this cab driver is prohibited by law from accepting additional passengers. Schedule of rates authorized for taxicabs operating in (Name of Town) is (Copy from commission order setting rates for that vicinity).

(Name of Company)"

010.02(D)(i). Service will not be denied to the first passenger or passengers due to refusal to grant consent to transport additional passengers on the trip.

010.02(D)(ii). If several individuals that have boarded a taxicab at one location choose to be transported to a single common destination, the driver of the taxicab will charge the party at rates approved by the Commission as if the passengers are all members of the same party.

010.02(E). Each vehicle will be operated over the most direct route from point of passenger pickup to the point of destination of passengers.

010.02(F). Each carrier will have its full or trade name and assigned application number permanently placed on each side of the vehicle in letters at least two inches (2") high. The word "taxi­cab" will also appear conspicuously on the sides of the vehicle unless the word "cab", “taxi” or "taxicab" is included within the name of the carrier. The fleet number of each vehicle will be displayed in figures not less than two inches (2") high in the forward part of the passenger compartment and also on the sides and rear of each vehicle. None of the markings described in this rule will be placed on any glass or on the bumper of the vehicle.

010.02(G). Each vehicle will be equipped with.

010.02(G)(i). A dome light within the passenger compartment of the vehicle capable of being turned on or off by passengers or controlled by operation of the doors.

010.02(G)(ii). An identity light attached to the top of the vehicle. The light will be in one unit consisting of an illuminated plate or cylinder upon which is printed the word "taxicab", "taxi", "cab", "for hire", or the owner's trade name. The size of such light will not exceed eight inches (8") in height nor twenty-three inches (23") in length. Loaded or bug lights may be attached to the upper portion of a vehicle. If used, such lights will be smaller than the identity light and will be illuminated when the vehicle is engaged.

010.02(H). A carrier which operates in municipalities of fifteen thousand (15,000) persons or more, as determined by the official U.S. Census, or between munici­palities not more than five (5) miles apart, whose aggregate popu­lation exceeds fifteen thousand (15,000) persons, will equip its vehicles with a taximeter or a taxi soft meter. The Commission may, at any time, require any carrier operating in any community of less than fifteen thousand (15,000) persons to equip its vehicles with a taximeter or a taxi soft meter. Taximeters and taxi soft meters are subject to the following specifications.

010.02(H)(i). No taximeter will be operated without first having been inspected, tested, approved and sealed by the Commission or a duly authorized representative of the taxicab company.

010.02(H)(ii). Each meter will be sealed during the time the vehicle is in the service of the taxicab carrier.

010.02(H)(ii)(a). Taximeters will be sealed with either a wire and lead seal bearing the letters “NPSC,” or, at the discretion of the Commission representative, with a sticker bearing the letters “NPSC.” This seal will be affixed only by a person duly authorized by the Commission.

010.02(H)(ii)(a). Taxi soft meters will be physically secured in each vehicle and password protected that enable only an authorized representative of the company to program the taxi soft meter remotely. Taxi drivers may not have access to or program taxi soft meters. Taxi soft meters will be considered sealed upon written approval from the Commission.

010.02(H)(iii). Commission approved rates will be programmed into each taxi soft meter.

010.02(H)(iii)(a). Programmed rates may only be changed by an authorized representative of the company who has central password protected access to program rates for all taxi soft meters in the fleet.

010.02(H)(iii)(b). Hardware and Software provisions must be in place that prevent a taxi driver from changing the programmed rates or modifying how the taxi soft meter works.

010.02(H)(iii)(c). Each company will have access to, and provide to the Commission upon request, a changelog that provides a persistent audit trail or rates that are charged and historical rate changes that have been made identifying the person(s) who made them.

010.02(H)(iii)(d). Any Hardware or Software changes and/or upgrades must not affect the way programmed rates are calculated. If the calculation of programmed rates is affected, the company must have the taxi soft meter reevaluated according to 010.02H1.

010.02(H)(iv). taxi soft meters must provide passengers with a generated receipt pursuant to rule 010.01F.

010.02(H)(v). Taximeters will be mounted and connected to the transmission or speedometer in an approved manner. Taxi soft meters shall be mounted or affixed to the vehicle interior to the right of the driver, and physically secured in the vehicle by hardware. Where mounted on the dashboard of a vehicle, the meter will be located so as not to obstruct the view of the operator or cause undue hazard to passengers. All taximeters and taxi soft meters will be placed so that the dial or faceplate showing the amount charged is well lighted and readily visible to passengers riding in the vehicle.

010.02(H)(vi). Periodic tests of meters will be made by the Commission. A meter with an error in registration not exceeding three percent (3%) of the dis­tance covered by each meter drop will be considered correct and accurate. Otherwise, the requirements for approval of, and methods for, testing the taximeters will conform to specifications established by the National Bureau of Standards.

010.02(H)(vii). After a meter has been tested, approved and sealed, a different tire size will not be affixed to the vehicle without re-testing the meter.

010.02(I). Each vehicle will be equipped with a device visible to the public from the outside of the vehicle which indicates whether it is in service or for hire and a device visible to a passenger inside which indicates whether the taximeter is in position to record a fare.

010.02(J). Each operator will be identified by a card, displayed in full view of the passengers, bearing the name and photograph of the operator and the taxicab carrier's address.

010.02(K). No vehicle will be equipped with shades, curtains, or window-tinting which shields the occupants or the operator from observation.

010.03 PROVISIONS THAT APPLY TO THE TRANSPORTATION CONTRACTORS OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND LIKE AGENCIES. A contractor of the Nebraska Department of Health and Human Services, hereinafter, the Department, or any of the agencies contracting with the Department, or for any agency organized under the Nebraska Community Aging Services Act, who is not certificated or permitted by the Commission providing transportation for the Department or such agencies will certify on a form provided by the Commission that the provider meets the minimum operator standards, insurance requirements and equipment standards prescribed by the Commission in these rules.

010.03(A) DRIVER REQUIREMENTS. A Department transportation provider must certify that.

010.03(A)(i). The person is the individual who will personally drive the vehicle in question.

010.03(A)(ii). The person is at least nineteen (19) years of age or an emancipated minor.

010.03(A)(iii). The person possesses a current operator's permit issued by any state.

010.03(A)(iv). The person has knowledge of Nebraska state and local traffic rules and the rules of the road.

010.03(A)(v). The person has no more than three (3) points assigned against their driver's license.

010.03(A)(vi). The person will not smoke in the vehicle.

010.03(A)(vii). The person is competent to conduct the service carefully and dependably.

010.03(A)(viii). The person does not use illegal drugs.

010.03(A)(ix). The person is not aware of any mental or physical limitation which would impose a threat to the health or well-being of the passengers.

010.03(B) INSURANCE. A Department provider must maintain the minimum automobile liability insurance coverage as required by these rules and state law.

010.03(C) EQUIPMENT STANDARDS. A Department transportation provider must certify that.

010.03(C)(i). The person has current and valid plates and registration.

010.03(C)(ii). The person will ensure that each vehicle will, at all times, be kept in proper physical and mechanical condition including, but not limited to, operable seat belts, turn signals, lights and horn, child passenger restraint devices as required by law, and comfortable temperature and ventilation conditions.

010.03(D) SELF-CERTIFICATION. All such self-certification filings will be made with the Commission and filed for record and be available for p140ublic inspection during the regular business hours of the Commission. Such filings will be continuous in nature unless canceled by the Department.

010.03(E). The Commission will, upon application of any certificated motor carrier or the Department, hear any dispute between the same with regard to the contested ability of the motor carrier to provide a specific service in a given case. The parties may agree to an informal conference between the carrier, the Department, and the Commission to facilitate a mutually agreeable resolution. If the parties cannot come to an agreement, either party may file a formal complaint with the Commission in a manner provided for in the rules of Commission procedure.

011 VOLUNTARY SUSPENSIONS. Certificated motor carriers seeking to suspend service pursuant to Neb. Rev. Stat. §75-316, must apply for and obtain Commission approval of such suspension. The certificated motor carrier must provide the Commission with an application identifying the certificate of public convenience and necessity held by said motor carrier and setting forth the length of time the carrier wishes to place its authority under voluntary suspension. The Commission may approve the carrier's request for the time period requested for a period not exceeding a twelve (12) month increment. In no event will the carrier's authority be suspended for more than twenty-four (24) consecutive months.

012 TRANSPORTATION NETWORK COMPANIES.

012.01 APPLICABILITY OF RULES. The rules and regulations found in Chapter 3, Sections 001 through 011 of Title 291 of the Nebraska Administrative Code will not apply to transportation network companies. If there is a conflict between Chapter 3, Sections 001 through 011 of Title 291 of the Nebraska Administrative Code and these rules regarding the regulation of transportation network companies, these rules and regulations will apply.

012.02 DEFINITIONS. In addition to other definitions used in this chapter, unless the context otherwise requires, the following definitions apply.

012.02(A). Application open stage means the time period from the moment a participating driver logs on to the transportation network company’s online-enabled application or platform until the driver accepts a request to transport a passenger and from the moment the driver completes the transaction on the online-enabled application or platform or the passenger exits the vehicle, whichever is later, until the driver either accepts another ride request on the online-enabled application or platform or logs off the online-enabled application or platform.

012.02(B). Commission means the Nebraska Public Service Commission.

012.02(C). Engaged stage means the time period from the moment a participating driver accepts a ride request on the transportation network company online-enabled application or platform.

012.02(D). Insurance policy means a policy placed with an authorized Nebraska insurer or with a surplus lines insurer pursuant to Chapter 44 of the Nebraska Revised Statutes.

012.02(E). Participating driver or driver means any person who uses a personal vehicle in connection with a transportation network company’s online-enabled application or platform to connect with passengers.

012.02(F). Passenger means a passenger in a personal vehicle for whom a driver provides transportation and who is connected with a driver by a transportation network company’s online-enabled application or platform.

012.02(G). Passengers on board stage means the time period when there are passengers in the vehicle pursuant to the driver’s participation in a transportation network company.

012.02(H). Personal vehicle means a passenger car as defined in Neb. Rev. Stat . § 60-345 that a driver owns, leases or is otherwise authorized to use to provide services on a transportation network company’s online-enabled application or platform.

012.02(I). Prearranged ride means a ride in which a participating driver is matched to a passenger through a transportation network company’s online-enabled application or platform and does not include the on-demand summoning of a ride or street hail. Prearranged ride does not include shared-expense carpool or vanpool arrangements. Prearranged ride does not include activity by the participating driver to personally solicit passengers or initiate contact with potential passengers.

012.02(J). Service means the provision of transportation by a driver to a passenger with whom a transportation network company matches the driver.

012.02(K). Transportation network company means an organization, including a corporation, a limited liability company, a partnership, a sole proprietor, or any other entity, operating in this state that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with participating drivers using a personal vehicle. Transportation network company does not include Medicaid nonemergency medical transportation brokerage services provided pursuant to a contract with the Department of Health and Human Services.

012.02(L). Transportation network company insurance means an insurance policy that covers loss arising from a participating driver’s use of a personal vehicle in connection with a transportation network company’s online-enabled application or platform.

012.03 UNAUTHORIZED OPERATIONS. Unless exempted by statute, no person will operate a transportation network company in Nebraska without first having obtained from the Commission a permit to operate as a transportation network companyin Nebraska.

012.04 APPLICATION REQUIREMENTS. The application for permit to operate as a transportation network company in Nebraska must be filed on forms provided by the Commission.

012.04(A). The application for a permit will be in writing, under oath, submitted to the Commission, and accompanied by the fee required under Neb. Rev. Stat. § 75-305(2).

012.04(B). A duly authorized official of the applicant who possesses the full power and authority to make binding representations on the applicant’s behalf will subscribe to the oath on the application.

012.04(B)(i). A participating driver contracting with a transportation network company holding a valid permit from the Commission will not be required to obtain a permit or certificate from the Commission when driving pursuant to the terms of the contract with the transportation network company.

012.04(C). The application will contain the following.

012.04(C)(i). The legal name of the applicant;

012.04(C)(ii). Any name under which the applicant will or does conduct business in Nebraska;

012.04(C)(iii). The applicant’s primary business address and telephone number;

012.04(C)(iv). A copy of the articles of organization or certificate to transact business in Nebraska;

012.04(C)(v). The name, address, and telephone number of the applicant’s registered agent in Nebraska; and

012.04(C)(vi). A statement that the applicant agrees to adhere to the statutes of Nebraska, the rules and regulations of the Commission regulating transportation network companies, and any applicable federal laws, local ordinances and regulations.

012.04(D). If an applicant is duly certified or permitted to operate a transportation network company in at least one other state, the Commission will, within sixty (60) days after receiving a complete application, issue a permit to the applicant if the applicant meets the requirements set forth under statute and Commission rules and regulations.

012.04(E). If an applicant is not duly certified or permitted to operate a transportation network company in at least one other state, the Commission will, within ninety (90) days after receiving a complete application, issue a permit to the applicant if the applicant meets the requirements set forth under statute and Commission rules and regulations. The applicant will bear the burden of demonstrating that.

012.04(E)(i). The applicant has sufficient financial resources to provide transportation network company services in the proposed service territory;

012.04(E)(ii). The applicant has sufficient technical competency to provide transportation network company services in the proposed service territory; and

012.04(E)(iii). The applicant has sufficient managerial resources to provide transportation network company services in the proposed service territory.

012.04(F). If the Commission finds any information incomplete or inaccurate, the Commission will notify the applicant and give the applicant the opportunity to complete the application.

012.05 TRANSPORTATION NETWORK COMPANY REQUIREMENTS. Every transportation network company will.

012.05(A). Provide the Commission with its email address and customer service telephone number.

012.05(B). Display for the passenger either a picture of the driver’s personal vehicle and a picture of the driver or the license plate number of the driver’s personal vehicle on the online-enabled application or platform that a transportation network company uses to connect drivers and passengers.

012.05(C). Maintain an agent for service of process in Nebraska.

012.05(D). Maintain accurate and up-to-date records of all drivers providing services on behalf of the transportation network company, including the vehicle identification number for all personal vehicles to be operated in connection with the transportation network company.

012.05(E). Implement an anti-discrimination policy that prohibits discrimination by any driver providing service for the company on the basis of race, national origin, religion, gender, physical or mental disability, medical condition, marital status, or age and file the policy with the Commission.

012.05(F). Maintain a website that provides a customer service telephone number or email address of the transportation network company and that provides the telephone number and email address of the Commission.

012.05(G). Establish a driver training program designed to ensure that each driver safely operates his or her personal vehicle prior to the driver being able to offer services on the transportation network company’s online-enabled application or platform.

012.05(H). Maintain records required under Neb. Rev. Stat. §§ 75-323 through 75-343 to be collected by the transportation network company, including records regarding participating drivers.

012.05(I). Cooperate with the Commission and any employees, investigators, or duly authorized agents of the Commission in the investigation of complaints received by the Commission from the public or in investigations initiated by the Commission.

012.05(J). Disclose in writing prior to permitting a person to act as a driver that a driver is responsible to know the laws, rules, and regulations that govern the service he or she provides in connection with a transportation network company.

012.06 PREARRANGED RIDE. A participating driver will not provide a ride unless it is a prearranged ride.

012.06(A). Upon completion of a prearranged ride, a transportation network company will transmit an electronic receipt to the passenger’s email address or online-enabled application documenting the following.

012.06(A)(i). The point of origin and destination of the prearranged ride;

012.06(A)(ii). The total duration and distance of the prearranged ride;

012.06(A)(iii). The total amount paid, if any, including the base fare and any additional charges incurred for distance traveled or duration of the prearranged ride; and

012.06(A)(iv). The driver’s first name.

012.07 RATES. Except as otherwise provided by statute or under these rules, a transportation network company will not be subject to rate regulation by the Commission and will not be subject to provisions relating to rates and charges prescribed in Neb. Rev. Stat. §§ 75-101 to 75-158.

012.07(A). A transportation network company may offer service for compensation, no charge, or suggested compensation.

012.07(B). A transportation network company will file with the Commission the rates it uses to determine any compensation or suggested compensation on its online-enabled application or platform, including any use of dynamic pricing. The transportation network company will keep the rate filing current and will charge rates consistent with the rates it files with the Commission.

012.07(C). The following requirements apply if the transportation network company uses dynamic pricing through its online-enabled application or platform.

012.07(C)(i). The transportation network company’s online-enabled application or platform will provide clear visible indication that dynamic pricing is in effect prior to the passenger requesting a ride.

012.07(C)(ii). The transportation network company’s online-enabled application or platform will include a feature that requires the passenger to expressly confirm that he or she understands that dynamic pricing will be used in order for the ride request to be completed.

012.07(C)(iii). The transportation network company’s online-enabled application or platform will provide a fare estimator that enables the passenger to estimate the cost under dynamic pricing prior to requesting a ride.

012.07(C)(iv). Dynamic pricing will not be permitted during any state of emergency declared by the Governor.

012.08 NON-COMPETE. A transportation network company will not require a participating driver to sign an agreement not to compete with the company in order to be matched with passengers through the company’s online-enabled application or platform.

012.09 OWNERSHIP OF VEHICLES. A transportation network company will not own, control, operate, or manage drivers’ personal vehicles.

012.10 HHS AUTHORIZATION. No transportation network company or participating driver will provide transportation for any person under contract with the Department of Health and Human Services or any contractors of the Department of Health and Human Services without specific authorization from the Commission. In order to receive such authorization, the transportation network company or participating driver will file an application which demonstrates that such service is or will be required by the present or future public convenience and necessity as required under Neb. Rev. Stat. § 75-371.20.

012.11 DRUGS AND ALCOHOL POLICY. Every transportation network company will implement, enforce, and maintain a zero-tolerance policy on the use of drugs or alcohol applicable to any driver providing service for the transportation network company that prohibits a driver from using any amount of drugs or alcohol while the driver is providing service.

012.11(A). The transportation network company must provide a copy of the policy to the Commission promptly upon adoption and provide a copy of any revision to the policy promptly upon adoption.

012.11(B). A transportation network company will not allow a driver to provide service if the company finds the driver to be in violation of its zero-tolerance policy or if the driver has not successfully completed driver training as required under 012.05G.

012.11(C). The transportation network company will provide on its website and its online-enabled application or platform notice of the zero-tolerance policy and the procedures to report a complaint about a driver with whom the passenger was matched when the passenger reasonably suspects the driver was under the influence of drugs or alcohol during the course of the prearranged ride.

012.11(C)(i). Upon receiving a complaint, a transportation network company will immediately suspend the driver against whom the complaint was issued and conduct an investigation of the alleged violation. The suspension will last for the duration of the investigation.

012.11(D). If the Commission has reasonable cause to believe a transportation network company is not enforcing the zero-tolerance policy filed with the Commission, the Commission will investigate and, after notice and hearing, may enter an order requiring the transportation network company to enforce such policy, which may include suspension of the participating driver.

012.12 DRIVER REQUIREMENTS. A participating driver must possess a valid driver’s license, proof of registration, and proof of automobile liability insurance and be at least twenty-one (21) years of age.

012.12(A). Prior to permitting a person to act as a driver, the transportation network company will obtain and review a national criminal history record information check.

012.12(A)(i). The criminal disposition information retrieved by the transportation network company’s national criminal history record information check will be at least as comprehensive as the criminal disposition information retrieved by a national criminal history record information check performed by the Federal Bureau of Investigation pursuant to Neb. Rev. Stat. § 81-6120.

012.12(A)(ii). Fingerprinting is not required as part of the national criminal history record information check.

012.12(B). A person who has four or more moving traffic violations or one or more major traffic violations in the three (3) years prior to the date of the criminal background check will not serve as a driver. The following offenses will constitute major traffic violations.

012.12(B)(i). Failure to stop and report or render aid as required under Neb. Rev. Stat. §§ 60-696 or 60-697;

012.12(B)(ii). Reckless driving in violation of any city or village ordinance or of §§ 60-6213, 60-6214, or 60-6217;

012.12(B)(iii). Speeding of more than thirty-five (35) miles per hour over the speed limit; and

012.12(B)(iv). Failure to yield to a pedestrian resulting in bodily injury to a pedestrian.

012.12(C). A person who has been convicted of or pled guilty or nolo contendere to driving under the influence of drugs or alcohol in the previous seven (7) years in this state or any other state or territory prior to the date of the criminal background check will not serve as a driver.

012.12(D). A person who is required to register as a sex offender or who has been convicted of or pled guilty or nolo contendere to any offense involving fraud, use of a motor vehicle to commit a felony, a crime involving property damage, theft, acts of violence, or acts of terror will not serve as a driver.

012.13 HOURS OF OPERATION. No person will be a participating driver for a period of more than twelve (12) hours during each twenty-four (24) hour period.

012.14 VEHICLE REQUIREMENT. In order for a vehicle to be used under these rules, a personal vehicle will be in compliance with the Motor Vehicle Registration Act as required for a passenger car as defined in Neb. Rev. Stat. § 60-345.

012.15 INSPECTIONS. A certified mechanic, who may be employed by a transportation network company, will perform an initial safety inspection on each personal vehicle prior to approving it for use as a personal vehicle.

012.15(A). The inspection will include inspection of at least the following components and as such components will be in good working order.

012.15(A)(i). Foot brakes;

012.15(A)(ii). Parking or emergency brakes;

012.15(A)(iii). Steering mechanism;

012.15(A)(iv). Windshield;

012.15(A)(v). Rear window and other glass;

012.15(A)(vi). Windshield wipers;

012.159(A)(vii). Headlights;

012.15(A)(viii). Taillights;

012.15(A)(ix). Turn indicator lights;

012.15(A)(x). Stop lights;

012.15(A)(xi). Front seat adjustment mechanism;

012.15(A)(xii). The opening, closing, and locking capability of doors;

012.15(A)(xiii). Horn;

012.15(A)(xiv). Speedometer;

012.15(A)(xv). Bumpers;

012.15(A)(xvi). Brake Lights;

012.15(A)(xvii). Muffler and exhaust system;

012.15(A)(xviii). Tire conditions, including tread depth;

012.15(A)(xix). Interior and exterior rear-view mirrors; and

012.15(A)(xx). Safety belts for driver and passengers.

012.15(B). A driver will annually obtain such an inspection and approval of the driver’s personal vehicle in order to continue its use as a personal vehicle. A driver will maintain proof of the current inspection.

012.15(C). A transportation network company will make the initial and annual inspection reports available to the Commission upon request.

012.16 TRANSPORTATION NETWORK COMPANY INSURANCE. Beginning on September 1, 2015, a transportation network company and a participating driver will maintain transportation network company insurance as provided.

012.16(A). Unless otherwise specified, the following requirements will apply to transportation network company insurance during the engaged stage and during the passengers on board stage.

012.16(A)(i). Primary liability coverage in the amount of at least one million dollars ($1,000,000) for death, personal injury, and property damage; and

012.16(A)(ii). Uninsured and underinsured motorist coverage for both the driver and passengers in the amounts required by the Uninsured and Underinsured Motorist Insurance Coverage Act.

012.16(B). Unless otherwise specified, the following requirements will apply to transportation network company insurance during the application open stage.

012.16(B)(i). Transportation network company insurance will be primary and in the amount of at least twenty-five thousand dollars ($25,000) for death and personal injury per person, fifty thousand dollars ($50,000) for death and personal injury per incident, and twenty-five thousand dollars ($25,000) for property damage; and

012.16(B)(ii). Uninsured motorist coverage pursuant to the Uninsured and Underinsured Motorist Insurance Coverage Act.

012.16(C). The requirements for coverage may be satisfied by any of the following.

012.16(C)(i). Transportation network company insurance maintained by a participating driver;

012.16(C)(ii). Transportation network company insurance maintained by a transportation network company; or

012.16(C)(iii). Any combination of the above.

012.16(D). Prior to permitting a person to act as a driver, a transportation network company will disclose in writing to each participating driver.

012.16(D)(i). The insurance coverage, the limits of liability, and any deductible amounts that the transportation network company maintains while the driver uses a personal vehicle in connection with a transportation network company’s online-enabled application or platform;

012.16(D)(ii). That a driver’s personal automobile insurance policy may potentially not provide coverage for damage to the vehicle used by the driver, uninsured and underinsured motorist coverage, and other first-party claims from the moment the driver logs on to the transportation network company’s online-enabled application or platform to the moment the driver logs off the transportation network company’s online-enabled application or platform.

012.16(D)(ii)(a). The driver should contact his or her insurer or insurance agent in order to determine coverage under his or her personal automobile insurance policy.

012.16(E). The insurer providing transportation network company insurance will have the duty to defend and indemnify the insured.

012.16(F). An insurance policy required under Neb. Rev. Stat. §§ 75-323 through 75-341 will be placed with an authorized Nebraska insurer or with a surplus-lines insurer pursuant to Chapter 44 of the Nebraska Revised Statues.

012.16(G). Coverage under a transportation network company insurance policy will not be dependent on a personal automobile insurance policy first denying a claim nor will a personal automobile insurance policy, including a personal liability umbrella policy, be required to first deny a claim.

012.16(H). When transportation network company insurance maintained by a participating driver to fulfill the insurance obligations of Neb. Rev. Stat. §§ 75-323 through 75-341 and these rules and regulations has lapsed or ceased to exist, the transportation network company will provide the coverage required by Neb. Rev. Stat. §§ 75-323 through 75-341 and these rules beginning with the first dollar of a claim.

012.16(I). In order for transportation network company insurance maintained by a transportation network company to meet the requirements of Neb. Rev. Stat. §§ 75-323 through 75-341 and these rules, a certificate of insurance will be filed with the Commission specifying that on cancellation or nonrenewal of the transportation network company insurance, the insurer must send written notice of the cancellation or nonrenewal to the Commission at least thirty (30) days before the effective date of the cancellation or nonrenewal.

012.16(J). Neb. Rev. Stat. §§ 75-323 through 75-341 will not limit the liability of a transportation network company arising out of an automobile accident involving a participating driver in any action for damages against a transportation network company for an amount above the required insurance coverage.

012.16(K). In the event of a loss involving a personal vehicle used in connection with a transportation network company and if such personal vehicle is subject to a lien, the transportation network company insurance carrier will make payment for a claim covered under collision physical damage coverage or comprehensive physical damage coverage directly to the business repairing the vehicle or jointly to the owner of the vehicle and the primary lienholder on the covered vehicle.

012.16(L). The owner of any personal vehicle used in connection with a transportation network company will have the duty to maintain collision physical damage coverage and comprehensive physical damage coverage for transportation network company activity if the vehicle is required to carry such coverage due to a contractual obligation.

012.16(M). A private passenger automobile insurance policy is not required to provide primary or excesscoverage during the period of time from the moment a participating driver logs on to a transportation network company’s online-enabled application or platform until the driver logs off the online-enabled application or platform or the passenger exits the personal vehicle, whichever is later.

012.16(N). Notwithstanding any other law, a personal automobile insurer may, at its discretion, offer an automobile insurance policy, or an amendment or endorsement to an existing policy, that covers a private passenger motor vehicle, station wagon type vehicle, sport utility vehicle, or similar type of motor vehicle with a passenger capacity of eight (8) persons or less, including the driver, while used in connection with a transportation network company’s online-enabled application or platform only if the policy expressly provides for the coverage during all or the defined portion of the time periods specified in Neb. Rev. Stat. §§ 75-323 through 75-341, with or without separate charge, or the policy contains an amendment or an endorsement to provide that coverage, for which a separately stated premium may be charged. The policy, amendment, or endorsement may include, but not be limited to.

012.16(N)(i). Comprehensive physical damage coverage;

012.16(N)(ii). Collision physical damage coverage;

012.16(N)(iii). Liability coverage for bodily injury and property damage;

012.16(N)(iv). Medical payments coverage; and

012.16(N)(v). Uninsured and underinsured motorist coverage.

012.16(O). In a claims coverage investigation, a transportation network company or its insurer will cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information, including the provision of dates and times at which an accident occurred that involved a participating driver and the precise times that the participating driver logged on and off the transportation network company’s online-enabled application or platform in the twenty-four (24) hour period preceding the accident.

012.16(P). All records, including electronic records, showing the time when a driver has logged in as active or logged out as inactive on the transportation network company’s online-enabled application or platform, and any data or reports with information about the personal vehicle’s involvement in a motor vehicle accident, that are maintained by the transportation network company will be maintained for a minimum of five (5) years after the date the loss is reported to the transportation network company.

012.16(Q). A participating driver will carry proof of transportation network company insurance coverage with him or her at all times during his or her use of a vehicle in connection with a transportation network company’s online-enabled application or platform. In the event of an accident, a participating driver will, upon request, provide this insurance coverage information to any other party involved in the accident and to a law enforcement officer.

012.16(Q)(i).Proof of insurance coverage will be in any format allowable under Nebraska law.

012.17 LIENS.

012.17(A). A transportation network company is required to disclosein writing to any driver planning to use a vehicle which has a lien against it to provide service in connection with a transportation network company that the driver must notify the lienholder at least seven days prior to using the vehicle to provide such service that the driver intends to use the vehicle to provide service in connection with a transportation network company by complying with Neb. Rev. Stat. §§ 75-323 through 75-343and these rules.

012.17(A)(i). The transportation network company will make the required disclosure a distinctive part of the driver’s terms of service and will require a separate acknowledgment of this disclosure by each driver by electronic or handwritten signature.

012.17(B). A driver planning to use a vehicle which has a lien against it to provide service in connection with a transportation network company will notify the lienholder using a form prescribed by the Commission.

012.17(B)(i). The form will be signed by the driver prior to filing the form with the lienholder.

012.17(B)(ii). The driver will file a copy of the signed lienholder notification form as well as proof of receipt of the form to the Commission prior to using the vehicle to provide service in connection with a transportation network company.

012.17(C). A driver planning to use a vehicle which has a lien against it to provide service in connection with a transportation network company will update his or her lienholder notification form on file with the Commission within thirty (30) days should the driver acquire a lien on a vehicle or change lienholders during the course of his or her employment as a driver with a transportation network company.

012.17(C)(i). The form will be signed by the driver prior to filing the form with the lienholder.

012.17(C)(ii). The driver will file a copy of the signed lienholder notification form as well as proof of receipt of the form to the Commission prior to using the vehicle to provide service in connection with a transportation network company.

012.17(D). The Commission will maintain such records for a maximum of five (5) years.

012.17(E). The Commission will make such records available to lienholders.

012.18 RECORDS. The Commission or the employees or duly authorized agents of the Commission may, in a mutually agreed-upon setting, inspect any records held by a transportation network company which the Commission determines are necessary to review to ensure public safety, including information obtained pursuant to statute and these rules.

012.18(A). Such inspection of records will occur no more than once each calendar quarter unless the Commission finds it necessary to inspect such records more frequently. Such inspection will be conducted on an audit basis rather than a comprehensive basis.

012.18(B). In response to a specific complaint, the Commission may inspect any records held by a transportation network company which the Commission determines are necessary to investigate and resolve the complaint, including information obtained pursuant to statute or these rules.

012.18(C). Any records obtained or inspected pursuant to these rules will not be considered public records subject to Neb. Rev. Stat. §§ 84-712 to 84-712.09 and will not be subject to disclosure by the Commission except when publicly disclosed as evidence in a civil penalty proceeding pursuant to Neb. Rev. Stat. § 75-156 or in a criminal proceeding prosecuted by the state.

012.19 FEES.

012.19(A). Every transportation network company will pay an annual fee.

012.19(A)(i). The transportation network company may choose to pay either twenty-five thousand dollars ($25,000) or a fee established by the Commission not to exceed eighty dollars ($80) for each personal vehicle operated by a driver of the transportation network company.

012.19(A)(ii). The Commission will establish the amount per vehicle on an annual basis so that the amount collected does not exceed the amount actually necessary to sustain the administration and enforcement of laws, rules, and regulations governing transportation network companies.

012.19(B). Annual fees will be due and payable to the Commission no later than January 1. Such fees will be paid to and collected by the Commission and remitted to the State Treasurer within thirty (30) days of receipt.

012.19(B)(i). Annual fees will be delinquent on March 1 of each year after such permit has been issued.

012.19(B)(ii). If the initial permit is issued to a transportation network company on or after July 1, the fee will be fifty (50) percent of the annual fee.

012.20 TRANSPORTATION NETWORK COMPANY REGULATION CASH FUND.

012.20(A). This section is adopted pursuant to Neb. Rev. Stat. § 75-331.

012.20(B). The Fund will be used to regulate transportation network companies and enforce Neb. Rev. Stat. §§ 75-321 through 75-343and these rules and regulations.

012.20(C). The Fund will contain the fees remitted pursuant to Neb. Rev. Stat. § 75-305.

012.21 ANNUAL REPORT. The Commission will electronically provide the Legislature with an annual report before December 31 of each year on the status of the implementation of Neb. Rev. Stat. §§ 75-321 through 75-343. The report will describe the following.

012.21(A). The number of permits issued pursuant to § 75-324;

012.21(B). A description of any revocation proceedings involving permits issued under § 75-324;

012.21(C). The number of rides provided by taxicab carriers relative to historical numbers;

012.21(D). The number of taxicabs operated by taxicab carriers relative to historical numbers;

012.21(E). The number of drivers either employed or contracted by taxicab carriers relative to historical numbers;

012.21(F). The number of taxicab carriers authorized by the Commission relative to historical numbers;

012.21(G). Any other information in its possession that the Commission believes will assist the Legislature in evaluating the effectiveness of §§ 75-323 through 75-343. The report will also address the question of the need for further legislation to achieve the purposes of §§ 75-323 through 75-343 .

013 LICENSES.

013.01. Applicability of Rules. The rules and regulations found in Chapter 3, Sections 001 through 011 of Title 291 of the Nebraska Administrative Code shall apply to motor carriers granted a license to transport household goods or passengers that are employees of railroad carriers where specified. If there is a conflict between Chapter 3, Sections 001 through 011 of Title 291 of the Nebraska Administrative Code and these rules regarding the regulation of licensees, these rules and regulations shall apply.

013.02. Requirements for an Effective Authority.

013.02(A). A license shall be issued by the Commission to any qualified applicant upon completion of the following.

013.02(A)(i). Payment of a license fee required under Neb. Rev. Stat. § 75-304.03 and 75-304.04;

013.02(A)(ii). Filing of Commission required insurance documents; and

013.02(A)(iii). Filing of required application form.

013.03 APPLICATION. The application for initial and renewal licenses to transport household goods or passengers that are employees of railroad carriers must be filed on forms provided by the Commission.

013.03(A). The application for a license will be in writing, under oath, and submitted to the Commission.

013.03(B). A duly authorized official of the applicant who possesses the full power and authority to make binding representations on the applicant’s behalf will subscribe to the oath on the application.

013.03(C). The application will contain the following.

013.03(C)(i). The legal name of the applicant;

013.03(C)(ii). The applicant’s principal place of business in the State of Nebraska, mailing address, telephone number, and email address;

013.03(C)(iii). USDOT number issued by the Federal Motor Carrier Safety Administration;

013.03(C)(iv). A copy of the articles of incorporation, organization, or certification to transact business from the Nebraska Secretary of State;

013.03(C)(v). The name, address, telephone number, and email address for the applicant’s designated agent for service of process;

013.03(C)(vi). The applicant’s current list of vehicles to be used to provide transportation services pursuant to the license;

013.03(C)(vii). A copy of the applicant’s fingerprint-based background check report conducted by the Nebraska State Patrol or other comparable law-enforcement agency; and

013.03(C)(viii). A statement that the applicant agrees to adhere to the statutes of Nebraska, and the rules and regulations of the Commission.

013.04. A license issued by the Commission shall be valid for one year and may be renewed annually for a fee required under Neb. Rev. Stat § 75-304.03 and 75-34.04.

013.04(A). A license may be suspended or revoked by the Commission after notice and hearing for failure to comply with Neb. Rev. Stat. § 75-307, any rule or regulation adopted and promulgated by the Commission, or any lawful order of the Commission.

013.05 INSURANCE. The applicant must ensure proof of adequate coverage by insurance or bond is filed with the Commission in minimum levels of financial responsibility and on such forms prescribed by Rule 003.03 and Rule 006.

013.05(A). An applicant may file a certificate of insurance with its initial or renewal license application. Such certificate of insurance shall be replaced with a form prescribed in Rule 006 no later than thirty (30) days after filing of the initial or renewal license application.

013.06 RATES. The Commission shall have no authority to regulate the rates of any motor carrier issued a license under these rules.

013.07 SERVICE TERRITORY. licensees are authorized to provide services statewide unless an applicant elects to limit the service territory to specific counties.

013.08 PROVISIONS APPLICABLE TO THOSE LICENSEES PROVIDING PASSENGER TRANSPORTATION SERVICE TO EMPLOYEES OF RAILROAD CARRIERS. The following provisions apply only to those carriers who are licensed to provide passenger transportation services to employees of railroad carriers engaged in interstate commerce to and from their work locations.

013.08(A) SAFETY REGULATIONS. All licensees transporting employees of railroad carriers must.

013.08(A)(i). Operate its vehicles in compliance with state law; and

013.08(A)(ii). Comply with Commission Rule Section 005, minimum safety regulations for driver qualifications, equipment safety, and operating standards, and log books.

013.08(B). Licensees must post notice in a conspicuous location in all vehicles of a passenger’s right to submit a complaint to the commission. Such notice must conform to Commission Rule 010.01G.

013.08(C). Recordkeeping. All licensees transporting employees of railroad carriers must.

013.08(C)(i). Maintain copies of records related to its intrastate passenger transportation services and make such records available for inspection in accordance with Rule Section 007;

013.08(C)(ii). Maintain logbooks in accordance with Rule 005.06 and 005.07.

013.08(D) DRIVER REQUIREMENTS. All licensees transporting employees of railroad carriers intrastate must meet the following requirements.

013.08(D)(i). A person who has four or more moving traffic violations or one or more major traffic violations in the three (3) years prior to the date of the criminal background check will not serve as a driver. The following offenses will constitute major traffic violations.

013.08(D)(i)(a). Failure to stop and report or render aid as required under Neb. Rev. Stat. §§ 60-696 or 60-697;

013.08(D)(i)(b). Reckless driving in violation of any city or village ordinance or of §§ 60-6,213, 60-6,214, or 60-6,217;

013.08(D)(i)(c). Speeding of more than thirty-five (35) miles per hour over the speed limit; and

013.08(D)(i)(d). Failure to yield to a pedestrian resulting in bodily injury to a pedestrian.

013.08(D)(ii). A person who has been convicted of or pled guilty or nolo contendere to driving under the influence of drugs or alcohol in the previous seven (7) years in this state or any other state or territory prior to the date of the criminal background check will not serve as a driver.

013.08(D)(iii). A person who, in the previous seven (7) years, has been convicted of or pled guilty or nolo contendere to a felony or misdemeanor that required the individual to register as a sex offender will not serve as a driver.

013.08(d)(iv). A person who has been convicted of or pled guilty or nolo contendere to use of a motor vehicle to commit a felony in the previous seven (7) years will not serve as a driver.

013.08(D)(v). Licensees must ensure that all drivers operating their vehicles under Commission authority are operating in compliance with state law.

013.08(E). Each driver operating a vehicle will be identified by card, displayed in full view of passengers, bearing the driver’s legal name and photograph.

013.09 PROVISIONS APPLICABLE TO THOSE LICENSEES PROVIDING TRANSPORTATION SERVICE AS A MOVER OF HOUSEHOLD GOODS. The following provisions apply only to those carriers who are licensed to provide transportation services as a mover of household goods.

013.09(A) DEFINITIONS. In addition to the definitions found in Neb. Rev. Stat. § 75-302 and otherwise found in this chapter, unless the context otherwise requires, the following definitions apply.

013.09(A)(i). Accessorial services means any service provided by a household goods mover that supplements, or is incidental to, the transportation of household goods. Examples include packing, unpacking, wrapping or protecting a portion of the shipment or providing special equipment or services as hoisting;

013.09(A)(ii). Bill of lading means receipt for shipment and contract for its transportation;

013.09(A)(iii). Binding Estimate means written agreement made in advance between consumer and named mover that guarantees total cost of move based upon quantities and services shown in estimate;

013.09(A)(iv). Certified Scale means any scale designed for weighing motor vehicles, including trailers or semi-trailers not attached to a tractor and certified by an authorized scale inspection and licensing authority;

013.09(A)(v). Contract means a written document, approved by the shipper in writing before the performance of any service, that authorizes services by the named mover and lists the services and all costs associated with the transportation of household goods to be performed;

013.09(A)(vi). Inventory means a written list of all items to be made part of the shipment;

013.09(A)(vii). Line Haul Charge means the charges for the transportation portion of the move;

013.09(A)(viii). Non-Binding Estimate means written notice of costs estimated by named mover based on estimated weight of the shipment and services requested, with final charges based upon the actual weight of the shipment, the services provided, and the tariff provisions of named mover;

013.09(A)(ix). Order for Service means a document authorizing the mover to transport a shipper’s household goods;

013.09(A)(x). Shipper means a person who utilizes the services of a mover to transport or ship household goods;

013.09(A)(xi). Storage means warehousing of the shipper’s goods while under the care, custody, and control of the mover; and

013.09(A)(xii). Valuation means the monetary value declared by a shipper for the shipment.

013.09(B) ARTICLES LIABLE TO CAUSE DAMAGE. A mover will not accept for shipment any property liable to impregnate or otherwise damage equipment or other property or accept for shipment articles which cannot be taken from the premises without damage to the article or premises.

013.09(C). Prior to providing transportation services, a mover shall provide a prospective shipper.

013.09(C)(i). Either a written binding or non-binding estimate of the total costs and basis for such costs to be incurred by the shipper at least 24 hours prior to a scheduled move, unless the move is initiated less than 24 hours before the commencement of the move;

013.09(C)(ii). A signed Order for Service on every move;

013.09(C)(iii). A complete and legible descriptive inventory of each loading;

013.09(C)(iv). An executed Bill of Lading;

013.09(C)(v). A detailed description of the rates and charges to be assessed as negotiated by the mover and shipper or, if the mover has notice of the availability of the applicable sections of the mover’s rates and charges in its tariff, including an explanation that a shipper may examine or request a copy of the tariff sections;

013.09(C)(vi). Disclosure of the limits of its liability and the valuation options available for any claims of damage to shipper’s household goods;

013.09(C)(vii). Provide summary of mover’s customer complaint and inquiry handling procedures.

013.09(D) ESTIMATES.

013.09(D)(i). A mover must conduct a physical survey of the household goods to be transported and considered part of the written estimate provided to the prospective shipper prior to providing transportation services.

013.09(D)(i)(a). If the household goods are more than 50 miles from the mover’s location, a physical survey is not required.

013.09(D)(i)(b). A shipper may waive the physical survey in writing prior to the loading of the shipment.

013.09(D)(ii) WEIGH TICKET. A mover must weigh each shipment that is moving under a non-binding estimate and retain scale ticket from a certified scale, complete with date, truck or trailer number and shipper’s name/or bill of lading.

013.09(D)(iii). The estimate will specify the form of payment for the shipment.

013.09(D)(iv). A mover must determine charges for any accessorial services before finalizing any estimate.

013.09(E) CONTRACTS. Nothing in these rules will be construed to preclude the mover and shipper from entering into a more comprehensive contract or amending a contract upon mutual agreement.

013.09(F) DELIVERY AND STORAGE OF GOODS.

013.09(F)(i). The shipper and mover must agree to the date for pickup and delivery of the shipment. Such dates must be recorded on the Bill of Lading;

013.09(F)(ii). A mover shall relinquish household goods to a shipper and place the goods inside the shipper’s dwelling after all charges have been paid or satisfactory arrangements have been made between the mover and the shipper; and

013.09(F)(iii) STORAGE IN TRANSIT. A shipper may request that a mover store the shipment prior to delivery.

013.09(F)(iii)(a). The mover will notify the shipper of the specified period of time that the shipment will be held in storage; and

013.09(F)(iii)(b). Prior to the expiration of the storage period, the mover must notify the shipper in writing when such period will convert to permanent storage, the time period under which the shipper may file claims against the mover for loss or damage to the household goods while in transit or during the storage period, when the mover’s liability will end for loss and damage, and when the shipment will become subject to the rules, regulations, and charges of the storage facility.

013.09(G) CLAIMS.

013.09(G)(i). A claim for loss, damage or injury will not be voluntarily paid by the mover unless the claim is filed in writing within the time limits specified in the Bill of Lading or other contract and contains the following minimum requirements.

013.09(G)(i)(a). Contains facts sufficient to identify the shipment;

013.09(G)(i)(b). Asserts liability for alleged loss, damage, or inquiry;

013.09(G)(i)(c). A claim for the payment of specified or determinable amount of money.

013.09(G)(ii) CLAIM FOR UNCERTAIN AMOUNT. When presented a claim for an uncertain amount of money, a mover will determine the condition of the shipment involved at the time of delivery, if it was delivered, and will ascertain as nearly as possible the extent, if any, of the loss or damage for which it may be responsible. A formal claim in writing for a specified or determinable amount of money must still be filed before a mover will voluntarily pay a claim.

013.09(G)(iii) DOCUMENTS NOT CONSTITUTING CLAIMS. Bad order reports, appraisal reports of damage, notations of shortage or damage, or both, or freight bills, delivery receipts, or other documents, or inspection reports issued by carriers or their inspection agencies, whether the extent of loss or damage is indicated in dollars and cents or otherwise, will, standing alone, not be considered by carriers as sufficient to comply with the minimum claim filing requirements specified.

013.09(G)(iv) CONCEALED DAMAGE OR SHORTAGE. a mover must be promptly notified after discovery of concealed damage or shortage and given reasonable opportunity to inspect the shipment and packaging. Movers will promptly and thoroughly investigate the claim and establish a claim file.

013.09(G)(v). A mover may satisfy a claim by repairing or replacing the property lost or damaged with materials of like kind, quality, and condition at time of acceptance by the mover.

013.09(G)(vi). A mover’s liability is limited to the extent provided in the terms and conditions of the Bill of Lading.

013.09(G)(vii). A mover must acknowledge receipt of each claim in writing within 30 days after receipt of the claim.

013.09(G)(vii)(a). The mover will pay, refuse payment, or make a firm compromise offer within 120 days after receipt of the claim.

013.09(G)(vii)(b). If the claim cannot be resolved within 120 days, the mover each succeeding 60 days thereafter while the claim is pending must notify the claimant in writing of the reason that the claim cannot be concluded.

History

• Effective 2025-06-23

Chapter 4 Railroad Rules and Regulations

Neb. Admin. Code tit. 291, ch. 4 Railroad Rules and Regulations {#sec-291-nac-4 omnilex-key=us-ne-regs-official--title-291--291 NAC 4}

001 GENERAL.

001.01 REQUIRED EQUIPMENT.

001.01(A) REFLEX LENSES ON SWITCH STANDS. railroads operating within the state of Nebraska are authorized to substitute reflex lenses for lighted lamps on switch stands, except where conditions exist preventing the proper reflection of the reflex lenses from the headlight because of track curvature, or where a substantial amount of switching is regularly or frequently performed at night.

001.02 WIRE CROSSING RAILROAD TRACKS AT PUBLIC HIGHWAY CROSSINGS.

001.02(A) NATIONAL ELECTRICAL SAFETY CODES. The National Electrical Safety Code, as published by the National Bureau of Standards, United States Department of Commerce, and all revisions and amendments thereto, is hereby adopted as prescribing the minimum requirements for clearances, materials, construction, and maintenance to be followed for all wires crossing under or over any railroad track at a public highway crossing in the State of Nebraska.

001.02(B) EXCEPTIONS. In matters not specifically prescribed by the National Electrical Safety Code, or where local conditions make the prescribed practice impracticable, methods which will provide equivalent security and protection to the public will be submitted to the Commission for approval.

002 CLEARANCES.

002.01 GENERAL.

002.01(A) NOT RETROACTIVE. All existing structures, operating appurtenances, pole lines, service facilities, and track arrangements will be exempt from these regulations except as hereinafter provided.

002.01(B) EXEMPTIONS. Exemptions from any of the requirements contained herein will be considered by the Commission upon proper application from the carriers, industries, or other interested persons. A request for such exemption must be accompanied by a full statement of the conditions existing, and the reasons why such exemption is asked. Any exemption so granted will be limited to the particular case covered by the application.

002.01(C) EMERGENCIES. No restricted clearance set out herein will apply to false-work, shoe-fly tracks, or other temporary emergency conditions caused by derailments, washouts, slides, or other unavoidable disasters.

002.01(D) CONSTRUCTION MATERIALS. No restricted clearances set out herein will apply to ballast, track material, or construction material unloaded on and adjacent to tracks for contemplated use thereon or in the immediate vicinity, nor shall they apply to false-work or temporary construction necessary on any construction project.

002.01(E) WARNING SIGNS. Wherever an existing clearance is reduced, so as to endanger the life or limb of any person working along or upon any railroad engine or car, a sign warning such workman of the reduction will be maintained by the railroad.

002.02 DEFINITIONS. As used in Chapter 4 unless the context otherwise requires:

002.02(A) EMERGENCY. Any case of casualty or unavoidable accident, trackage or signal failure, or equipment failure of the train causing a crossing blockage, or act of God.

002.02(B) OVERHEAD CLEARANCE. The vertical distance from the top of the highest rail to a structure or obstruction above;

002.02(C) SIDE CLEARANCE. The shortest horizontal distance from the center line of track to a structure or obstruction at the side of the track.

002.02(D) TRACK CLEARANCE. The shortest horizontal distance between the center lines of adjacent tracks.

002.03 MINIMUM CLEARANCE FOR RAILROAD STRUCTURES.

002.03(A) DESCRIPTION. As used in this section, minimum clearance is described as follows: Starting at the center line of track at top of rail and extending five feet six inches (5'6") both sides horizontally and level therewith, thence upward diagonally to a point four feet (4') above top of rail and eight feet (8') laterally from center line of track, thence vertically to a point sixteen feet (16') above top of rail, thence diagonally upward to a point twenty-two feet zero inches (22' 0") above top of rail and four feet (4') horizontally from center of track, thence horizontally to center of track.

002.03(B) CHANGES IN TRACK LOCATION OR ELEVATION. No changes in track location or elevation will hereafter be made which will reduce existing vertical or horizontal structural clearances below the minimum specified in Chapter 4.

002.03(C) CHANGES ADJACENT TO TRACKS. No repair or maintenance work will hereafter be done on structures, facilities or appurtenances adjacent to tracks which will reduce existing vertical or horizontal structural clearance below the minimum specified in Chapter 4.

002.04 NON-CONFORMANCE.

002.04(A) REPAIR OF NON-CONFORMING STRUCTURES. Where an existing structure does not provide clearance equal to the minimum of subsection 002.03(A) or such other minimum which may be herein specified, the portion of the structure producing the impaired clearance may be repaired and maintained by partial replacements.

002.04(B) REPLACEMENT OF NON-CONFORMING STRUCTURES. When the owner replaces in its entirety the portion of a structure which has not previously provided standard clearance, the rebuilt portion must, when complete, provide the full standard clearance of Chapter 4 unless otherwise ordered by the Commission.

002.04(C) NON-CONFORMING TRACKS AND YARDS. Existing tracks of all kinds may be maintained by reballasting, resurfacing, and replacing rails and ties subject to the limitations of Subsection 002.01A. Where existing yards are completely replaced or are partially replaced as a unit or section of a master plan, the arrangement must meet the provisions of Chapter 4 both as to track centers and clearance to structures and other facilities being built in connection with and as a part of such plan. Existing structures which are to remain and which do not provide the minimum clearance of Subsection 002.03A with respect to the proposed new tracks must be approved by the Commission for exemption from the terms of Chapter 4. Existing tracks having less vertical clearance than that specified in Subsection 002.03A may be maintained but the top of rail may not be raised without a corresponding raise of the overhead structure so as to maintain the existing available clearance. Existing tracks having less horizontal clearance between them than is herein specified for new construction or having less horizontal clearance to structures than is specified in Subsection 002.03A may be maintained but they may not be shifted horizontally to reduce either the existing track centers or the existing structural clearance.

002.05 OVERHEAD CLEARANCE.

002.05(A) GENERAL. Overhead clearances will be a minimum of twenty-two feet six inches (22’ 6”) unless specified in another subsection.

002.05(B) IN BUILDINGS. The overhead clearance inside of enclosed buildings may be reduced to:

002.05(B)(ii). Eighteen feet zero inches (18' 0”) only for tracks terminating within the building or in the immediate plant area if said tracks should extend through the building.

002.05(B)(ii). Seventeen feet zero inches (17'0") for overhead clearance of doors, provided that engine houses and railroad shops are exempt from the requirements of this section.

002.05(C) IN TUNNELS. The minimum overhead clearance in tunnels may be decreased to the extent defined by the half circumference of a circle having radius of eight feet (8') and tangent to a horizontal line twenty-three feet (23') above the top of rail at a point directly over the center line of track.

002.05(D) IN THROUGH BRIDGES. Overhead clearance in through bridges will require telltales if built less than twenty-two feet six inches (22'6") overhead clearance.

002.05(E) ALL OTHER STRUCTURES. Except as herein specifically provided, all other structures will have the clearance described as follows: Starting at the center of track at top of rail and extending six feet (6') both sides horizontally and level therewith, thence diagonally upward to a point four (4) feet above top of rail and eight feet six inches (8'6") laterally from center of track, thence vertically upward to a point fifteen feet nine inches (15'9") above top of rail, thence diagonally upward to a point twenty-two feet six inches (22'6") above top and rail and four feet (4') horizontally from center of track, thence horizontally to center of track. Overhead clearance for structures other than buildings may be reduced if overhead telltales are maintained for clearances less than twenty-two feet zero inches (22'0") which must have been approved by the Commission.

002.05(F) WIRES. All wires in general will have a minimum vertical clearance of not less than that specified by the National Electrical Safety Code as published by the United States Department of Commerce, National Bureau of Standards, or any revisions thereto.

002.06 SIDE CLEARANCE.

002.06(A) GENERAL. Wherever practicable, all posts, pipes, warning signs and other small obstructions will be given a side clearance of eight feet six inches (8’6”).

002.06(B) PLATFORMS. The following side clearances apply to both mainline and side tracks unless otherwise indicated, but do not apply to engine houses, railroad shop buildings, and passenger platforms at car floor height:

002.06(B)(i). Platforms eight inches (8") or less above top of rail will be five feet zero inches (5'0") from center of the track.

002.06(B)(ii). Platforms four feet (4') or less above top of rail (except as provided in 1) will be as follows:

002.06(B)(ii)(a). Platform on side tracks will be five feet nine inches (5’9”)

002.06(B)(ii)(b). If side clearance is reduced to five feet nine inches (5’9”) on one side, a full clearance of eight feet six inches (8’6”) will be maintained on the opposite side.

002.06(B)(iii). Platforms more than four feet (4') above top of rail side will be a minimum of eight feet zero inches (8'0")

002.06(B)(iv). Platforms on main line tracks and passing tracks will be eight feet six inches (8'6")

002.06(B)(v). Retractable platforms, permitted on side tracks only, either sliding or hinged, which are attached to a permanent structure, must be so constructed that when retracted or in a non-working position and firmly secured or anchored, the resulting clearance shall not be less than the clearances provided in these regulations.

002.06(C) TUNNELS AND BRIDGES. The minimum side clearance for tunnels and bridges is eight feet zero inches (8’0”)

002.06(C)(i) TUNNELS - UPPER SECTION. Side clearances in tunnels may be decreased to the extent defined in Subsection 002.05C.

002.06(C)(ii) BRIDGES. Lower section and structures at or less than four feet zero inches (4'0") above top of rail: Same clearances as set forth in Subsection 002.03A; provided, that the clearances authorized in this section are not permitted on through bridges where the work of trainmen require them to be upon the decks of such bridges for the purpose of coupling or uncoupling cars in the performance of switching service on a switching lead.

002.06(D) INTERLOCKING MECHANISM. The minimum side clearance for interlocking mechanisms is three feet zero inches (3’0”). This includes switch boxes, and switch operating mechanism necessary for the control and operation of signals and interlockers projecting four inches (4") or less above the top of rail.

002.06(E) MAIL CRANES AND TRAIN ORDER STANDS. The minimum side clearance for mail cranes and train order stands not in operative position is eight feet six inches (8’6”).

002.06(F) OIL AND WATER COLUMNS. The minimum side clearance for oil and water columns is eight feet zero inches (8'0")

002.06(G) ELECTRIC SUPPLY AND COMMUNICATION LINE POLES. The minimum side clearance for such poles shall be governed by the National Electrical Safety Code and all additions and amendments thereto.

002.06(H) SIGNALS AND SWITCH STANDS.

002.06(H)(i). The minimum side clearance for signals and switch stands will be six feet zero inches (6’0”) if such signals are three feet (3') high or less above top of rail when located between tracks or where not practicable to provide clearances otherwise prescribed in this section.

002.06(H)(ii). The minimum side clearance for signals and switch stands over three feet 3' high above top of rail will be eight feet three inches (8'3").

002.06(H)(iii). Signals and portions of signal poles higher than four feet (4') and less than sixteen feet (16') above top of rail will have a minimum side clearance of eight feet six inches (8’6”).

002.06(I) BUILDING ENTRANCES. The minimum side clearance inside buildings is seven feet zero inches (7'0"). Such clearance may be reduced on one side of the track to five feet nine inches (5'9") not more than four inches (4") above top of rail, provided that a side clearance of eight feet six inches (8'6") is maintained on the opposite side.

002.06(J) CURVED TRACK. The horizontal clearances specified herein relate to tracks on tangent. On curved track, the clearances shall be increased to allow for the overhang and the tilting of a car eighty-five feet (85') long, sixty feet (60') between centers of trucks, and fourteen feet (14') high.

002.06(K) MATERIAL AND OTHER ARTICLES ADJACENT TO TRACK. The minimum side clearance for material and other articles adjacent to track is eight feet six inches (8'6").

002.07 TRACK CLEARANCES.

002.07(A) IN GENERAL. The minimum distance between the center lines of parallel standard gauge railroad tracks, which are used or proposed to be used for transporting freight cars, will be fourteen feet (14'), except as hereinafter prescribed.

002.07(B) MAIN AND SUBSIDIARY TRACKS. The minimum distance between main and passing tracks will be fifteen feet (15').

002.07(C) PARALLEL TEAM, HOUSE OR INDUSTRY TRACKS. The minimum distance between parallel team, house, or industry tracks will be thirteen feet (13’).

002.07(D) LADDER TRACKS. Minimum clearances shall be as follows:

002.07(D)(i). Ladder track and any parallel track, except another ladder track will be seventeen feet (17').

002.07(D)(ii). Ladder track and another parallel ladder track will be twenty feet (20').

002.07(E) EXISTING TRACKS. Existing tracks may be extended at clearances prevailing prior to the effective date of these regulations.

002.08 PUBLIC ROADS, HIGHWAYS AND STREET CROSSINGS OVER OR UNDER TRACKS.

002.08(A) ROADS, HIGHWAYS OR STREET CROSSINGS OVER RAILROAD TRACK: Where a public road, highway or street crosses above any railroad track used or proposed to be used for transporting freight cars, side clearance in general provided in Chapter 4 for such tracks must be observed. Minimum overhead clearance will be twenty-three feet zero inches (23'0").

002.08(B) RAILROAD CROSSINGS OVER ROADS, HIGHWAYS OR STREET. Where a railroad crosses above any public road, highway, or street, a minimum overhead clearance of fourteen feet zero inches (14'0") will be provided above the surface of such road, highway or street. Where a railroad crosses above any highway of the State Highway System or any street or highway of the Federal Aid Urban Systems, a minimum overhead clearance of fifteen feet zero inches (15'0") will be provided above the surface of such highway or street.

002.08(C) MINIMUM WIDTH AT CROSSINGS. Where a railroad or street railroad crosses above any public road, highway, or street, on a single supporting span, a minimum width of twenty-six feet (26') will be provided for the opening for such public road, highway or street. Where a railroad or street railroad crosses any highway of the State Highway System, or any street or highway of the Federal Aid Urban System, on a single supporting span, a minimum width of thirty feet (30') will be provided for the opening of such highway or street. Where two or more supporting spans are used for such an opening, the minimum widths above specified will be provided for each of such supporting spans.

002.09 RAILROAD CAR STORAGE OR PARKING DISTANCE FROM CROSSINGS.

002.09(A). Upon complaint or on its own motion, the Commission may direct that any railroad car or cars stored or parked on a railroad track which may be obstructing or obscuring the traveling public's view of any oncoming train be stored or parked at a minimum distance from the crossing of such railroad track and particular public road.

002.09(B). A person who has been directed by the Commission under 002.09A to move a railroad car or cars may file an application for a hearing on the matter. The Commission will hear the matter within seven (7) days of the filing of the application.

002.09(C). After notice and hearing, the Commission may establish a specific minimum distance for storage or parking of a railroad car or cars from the crossing of a railroad track and a particular public road, and it will be that distance reasonable and necessary to provide a range of vision at the crossing adequate to protect the safety of the public using the crossing.

002.09(C)(i). Unless a different distance is prescribed by the Commission, railroad cars, locomotives and equipment will not be parked nor stored within 250 feet from any public or private crossings, of multiple adjacent railroad tracks, except upon written waiver from the Commission, or from private crossing owners. In the event of single track blockages, crossings will be opened a safe distance as will be determined by the operating railroad employee when the way is seen to be clear.

002.09(D). Standing trains, parked or stored cars, locomotives, equipment and switching movements will not block a public or private crossing longer than ten (10) minutes after a person appears and wants to cross a crossing, except in case of emergency. In a situation where a standing train has an operating crew on that train, and a multiple access crossing that is blocked is visible and accessible from the locomotive, such crossing need not be opened if a vehicle or pedestrian is not present at the expiration of ten (10) minutes. However, it will be opened or the train must be moving within ten (10) minutes after a pedestrian or vehicle becomes present at that crossing.

002.10 CROSSING GATES. All operating railroads within this state will clearly mark the location of the actuating devices (bonds) which control crossing gate operation.

003 MINIMUM SAFETY REQUIREMENTS.

003.01 RAILROAD MINIMUM INJURY AND PROPERTY DAMAGE REPORT.

003.01(A) ACCIDENT REPORTS. Upon occurrence of any serious personal injury or loss of life to persons other than railroad employees resulting from an accident at a railroad crossing or from an accident involving an explosion, fire, or release of noxious fumes occurring upon any railroad within the State of Nebraska, the corporation which operates the railroad upon which the accident occurred will report such accident in writing or by telephone to the Commission within twenty-four (24) hours of the time such accident occurred.

003.01(B) SUPPLEMENTAL ACCIDENT REPORTS. All corporations which operate railroads in the State of Nebraska shall report in writing to the Commission all accidents on their lines in Nebraska involving personal injury or property damage as determined pursuant to Title 49 C.F.R. Part 225 accident reporting requirements to the Federal Railroad Administration. These reports are due within thirty (30) days from the end of the month in which the accident occurred.

History

• Effective 2024-05-05

Chapter 5 Telecommunications Rules and Regulations

Neb. Admin. Code tit. 291, ch. 5 Telecommunications Rules and Regulations {#sec-291-nac-5 omnilex-key=us-ne-regs-official--title-291--291 NAC 5}

001 GENERAL :

001.01 Definitions: As used in this chapter unless the context otherwise requires.

001.01A Access:

001.01A1 Carrier Access: The ability of interexchange carriers to utilize the facilities of the exchange carrier for the origination and termination of interex-change calls.

001.01A2 Subscriber Access: The ability of subscribers to utilize the facilities of the exchange carrier for connection to the network.

001.01B Access Line: The facility used by the exchange carrier to provide dial tone to a subscriber from the central office through and including the Network Interface on the subscriber’s premises.

001.01C Application for Service: A request made verbally or in writing for telecommunications service and shall include requests for a change in existing service.

001.01D Base Rate Area: The area in which urban access line service is furnished without mileage charges.

001.01E Billing Company: Any company rendering its own bill, or who has legally contracted with a telecommunications company to provide billing services.

001.01F Busy Hour-Busy Season: The continuous one-hour period of that day in the calendar month or period of the year (not to exceed 30 days) during which the greatest volume of traffic is handled by the central office.

001.01G Call: A customer telecommunications message attempted.

001.01H Central Office: An independent switching unit in a telecommunications system providing service to the general public, having the necessary equipment and operating arrangements for terminating and interconnecting access lines and trunks or trunks only. There may be more than one central office in a building.

001.01I Certificate: An authorization issued by the Commission to allow a person to offer telecommunications services within Nebraska as a common carrier.

001.01J Class of Service: The various categories of service generally available to customers such as business access line service.

001.01K Commission: The Nebraska Public Service Commission.

001.01L Competitive Eligible Telecommunications Carrier: A carrier that is an eligible telecommunications carrier and does not meet the definition of an incumbent local exchange carrier.

001.01M Competitive Local Exchange Carrier: A person holding a permit to offer contract carriage or a certificate to offer common carriage telecommunications services within Nebraska issued after February 8, 1996. Competitive local exchange carriers are not required to offer dial tone service or any other specific service unless authorized or required by the terms of their permit or certificate.

001.01N Customer and/or Access Line Trouble Report: Any oral or written report from a subscriber relating to a physical defect in the operation of the exchange carrier’s facilities.

001.01O Customer or Subscriber: Any person, firm, partnership, corporation, limited liability company, municipality, cooperative, organization, governmental agency or any other entity provided with telecommunications service by a telephone company.

001.01P Deaf: Any hearing impairment, with or without amplification, which is so severe that the person with the impairment may have difficulty in auditorily processing spoken language without the use of an interpreter.

001.01Q Dual-Disabled: Any individuals with more than one hearing, vision or speech impairment simultaneously.

001.01R Eligible Telecommunications Carrier: A carrier designnated as such by this Commission.

001.01S Exchange: A unit established by an exchange carrier for the administration of access line service in a specified area which usually embraces a city, town or village and its environs. It consists of one or more central offices together with associated plant used in furnishing access line service in the area.

001.01T Exchange Carrier: A local exchange telephone company operating under authority of a Certificate of Public Convenience and Necessity engaged in providing access line service and related telecommunications service, regulated or unregulated, to the public. An exchange carrier may provide interexchange service as authorized by this Commission.

001.01U Extended Area Service (EAS): A telecommunications service which groups two or more exchanges to allow subscribers of one exchange in the group to place and receive two (2) way switched communications to and from subscribers in one or more other exchanges in the group without an interexchange toll charge.

001.01U1 Petitioning Exchange: The exchange which petitions the Commission for EAS.

001.01U2 Petitioned Exchange(s): The exchange, or group of exchanges, to which the petitioning exchange asserts a community of interest.

001.01V Fund: The Nebraska Telecommunications Relay System Fund (NTRSF).

001.01W Grade of Access Line Service: The type of access line service furnished a customer with respect to the number of access lines which may be connected to central office lines (1-party, 2-party, 4-party and multi-party).

001.01X Hard of Hearing: A hearing loss, permanent or fluctuating, which may adversely affect the ability to understand spoken language without the use of an interpreter or auxiliary aid.

001.01Y Held Application: A firm but unfilled application which is not filled within thirty (30) days.

001.01Z Household: A family unit whose members are related by birth, marriage, or adoption and who share a common living arrangement.

001.01AA Incumbent Local Exchange Carrier: A person holding a certificate to offer local exchange telecommunications services within Nebraska issued on or before February 8, 1996. The issuance of a new certificate in conjunction with the acquisition of a certificate issued on or before February 8, 1996, gives the acquiring entity incumbent local exchange status in the pre- February 8, 1996, certificated area.

001.01BB Indebted Household: Two or more people living together at least one of whom is indebted to the telephone company for service previously rendered.

001.01CC Intercept: A means, whether automatic or manual, to permit the interception of calls to vacant levels, numbers, and codes.

001.01DD Interexchange Carrier: A telecommunications company which provides interexchange telephone service.

001.01EE Interexchange Service: The telecommunications service rendered by telephone companies between points which are not both within a local calling area as established in the tariff of an exchange carrier.

001.01FF Inter-LATA Interexchange Service: Telecommunications services that originate in one and terminate in another Local Access and Transport Area.

001.01GG Intra-LATA Interexchange Service: Telecommunications services that originate and terminate in the same Local Access and Transport Area.

001.01HH Local Exchange Service: The telecommunications service provided within a local calling area in accordance with the exchange carrier's tariffs.

001.01II Map: A drawing showing the geographical location of an area in which a telephone company furnishes service.

001.01JJ Message: A completed customer telephone call.

001.01KK Nebraska Specialized Telecommunications Equipment Program (NSTEP): Program administered by the Commission that provides assistance to impaired Nebraskans in purchasing specialized telecommunications equipment.

001.01LL Nebraska Telecommunications Relay System (NTRS): The Nebraska service permitting full and simultaneous communication between deaf, hard of hearing, or speech-impaired persons using specialized telecommunications equipment and other persons using conventional telephone equipment.

001.01MM Network Interface: The point of connection between the subscriber's facilities and the exchange carrier provided access line, which is located on the subscriber's premises at a place deemed necessary to insure transmission quality, station grounding coordination and which is readily accessible to the subscriber and the exchange carrier.

001.01NN Operator Service Provider: Any person, firm, partnership or corporation engaged in furnishing operators to facilitate the completion of local and/or long distance calls and who also bills for such operator services and call completion either separately, through exchange carriers or other billing services such as credit card companies.

001.01OO Optional Enhanced Area Calling Plan (OEACP): A toll discount plan offered in lieu of EAS or for any other purpose.

001.01PP Originating Location: The geographic area served for originating interexchange telecommunications through the facilities of the exchange carrier at the originating end of the call.

001.01QQ Permit: An authorization issued by the Commission to allow a person to offer telecommunications services within Nebraska as a contract carrier.

001.01RR Person: Any individual, firm, partnership, limited liability company, joint venture, cooperative, corporation, company, association, or other entity.

001.01SS Personal Telephone Service: Telephone service located in an individual’s room and the telephone service account is in the individual’s name.

001.01TT Program Administrator: The person designated by the Commission for the administration of the Nebraska Telecommunications Relay System Act.

001.01UU Proprietary Information: Any information that is intended solely for the use of persons authorized by a company and not for general disclosure.

001.01VV Specialized Telecommunications Equipment (STE): Any telecommunications device enabling deaf, hard of hearing, or speech-impaired persons to communicate using conventional telephone systems, including, but not limited to, telecommunications devices for the deaf, signaling devices, and amplification devices.

001.01WW Speech-Impaired: A permanent or fluctuating loss of ability to vocalize auditory sounds which may adversely affect the ability to communicate in a spoken language without the use of an interpreter or auxiliary aid.

001.01XX Tariff: The schedule of rates, tolls, rentals, charges, classifications, rules and regulations which a carrier files with the Commission.

001.01YY Telecommunications: The transmission between or among points specified by the subscriber, of information of the subscriber’s choosing, without a change in the form or content of the information as sent or received.

001.01ZZ Telecommunications Common Carrier: A person holding a certificate issued by the Commission to offer telecommunications services within Nebraska.

001.01AAA Telecommunications Contract Carrier: A person holding a permit issued by the Commission to offer telecommunications services within Nebraska.

001.01BBB Telecommunications Relay Surcharge: The surcharge set annually by the Commission to carry out the Telecommunications Relay System Act.

001.01CCC Telephone Company: Any person, firm, partnership, limited liability company, cooperative, corporation, or other entity engaged in the business of furnishing telecommunications services.

001.01DDD Terminating Location: The geographic area served for terminating interexchange telecommunications through the facilities of the exchange carrier at the terminating end of the call.

001.01EEE Text Telephone (TTY): Any machine that employs graphic communication in the transmission of coded signals through wire or radio communication system.

001.01FFF TRS Act: The Telecommunications Relay System Act.

001.01GGG Vendor: Any person, firm, partnership, limited liability company, cooperative, corporation, or other entity that sells goods or services for profit.

001.01HHH Vouchers: Written certificates issued under the Telecommunications Relay System Act to pay private vendors for all or part of the cost of equipment to qualified deaf, hard of hearing, and speech-impaired persons in Nebraska.

001.01III Wireless Service: The offering of wireless telecommunications, as defined in Neb. Rev. Stat. §86-456.01 (Supp. 2007), for a fee.

001.02 Requirement for a Certificate or Permit: Before any person offers any telecommunications service, it must first obtain from the Commission a certificate, if seeking to provide telecommunications services as a common carrier, or a permit, if seeking to provide telecommunications services as a contract carrier. No agency or political subdivision of the state may be issued a certificate of public convenience and necessity as a telecommunications common carrier or a permit as a telecommunications contract carrier.

002 LOCAL EXCHANGE SERVICE :

002.01 General:

002.01A An exchange carrier shall have the authority, through its Certificate of Public Convenience and Necessity, within its Certificated service area to:

002.01A1 Provide local exchange or access line service.

002.01A2 Provide radio common carrier service, including paging and mobile telephone service. Such radio common carrier service shall be subject to the provisions of Chapter 6 of these rules and regulations.

002.01A3 Provide the resale of access line service as may be defined in the exchange carriers' tariffs.

002.01B The Commission shall maintain safeguards for the protection of proprietary information, included but not limited to, protective orders and limited distribution of the proprietary information.

002.02 Adequacy of Service:

002.02A Each exchange carrier shall provide adequate access line service. In determining whether the access line service provided by an exchange carrier is adequate, the Commission's consideration will include, but shall not be limited to, the adequacy of the carrier's plant and equipment, the number and nature of service interruptions, trouble reports, customer complaints and held applications, the nature of access line service offered by the carrier and the nature of the access line services desired by the public served.

002.02B Adequate service shall include not subjecting any particular person, class of persons, or locality to any undue or unreasonable prejudice or disadvantage in the provisioning of service by means of blocking, choking, reducing or restricting traffic in any way, or otherwise engaging in unjust or unreasonable conduct with regard to intrastate telecommunications service prohibited by Nebraska law or the rules and regulations of the Commission.

002.02C In the event of a dispute between a subscriber or subscribers and an exchange carrier regarding the adequacy of the access line service provided, the carrier shall make such investigations as required by the particular case, and report the results to the subscriber. In the event the dispute is not reconciled, the exchange carrier, or the subscriber affected, may make application to the Commission for a determination of the dispute.

002.02D Each exchange carrier shall employ appropriate engineering and administrative procedures to determine the adequacy of access line service being provided to its customers.

002.02E Traffic studies shall be made and records thereof maintained to the extent and frequency necessary to determine that sufficient equipment and adequate operating forces are provided.

002.02F Each exchange carrier shall employ adequate procedures for assignment of facilities. The assignment record shall be kept up-to-date and checked periodically to determine whether adjustments are necessary to maintain proper balance in all trunk and equipment groups.

002.02G Local access line service furnished by means of line concentrators or subscriber carrier equipment at a given exchange shall be substantially equivalent to that furnished other subscribers at that exchange served by means of normal physical loops.

002.02H Each exchange carrier shall continually review its operations to assure that the access line service provided is adequate.

002.02I No exchange carrier shall engage in any practice, including blocking, choking, reducing, or otherwise restricting telecommunications traffic to particular locations in an unjust or unreasonable manner, that has the effect of degrading service to a particular location, including for purposes of avoiding any applicable rate, charge, or fee. This shall not apply if traffic restriction is caused by a force majeure event that is beyond the reasonable control of the exchange carrier. Each exchange carrier shall be responsible for the acts, omissions, or failures of their officers, agents or other persons acting for or employed by the carrier, acting within the scope of their employment, including but not limited to third parties contracted by carriers to assist in the provision of service.

002.03 Interruptions of Service:

002.03A Each exchange carrier shall make all reasonable efforts to prevent interruptions of access line service. When interruptions occur, the exchange carrier shall re-establish access line service with the shortest possible delay consistent with the physical conditions encountered, the available work forces and with normal safety practices.

002.03B Each exchange carrier shall keep a record of all access line service interruptions or acute irregularities of access line service whenever reported to it or whenever the duration of a found access line service interruption exceeds twenty-four (24) hours. The record shall include appropriate identification of the customer or access line service affected, the date, time, duration, extent and cause of the interruption. The carrier shall furnish reports to the Commission upon request and shall inform the Commission as soon as possible of any occurrence of an unusual nature which apparently will result in prolonged and serious interruption of access line service to a large number of customers.

002.03C In the event the customer's access line service is interrupted other than by the negligence or willful act of the customer and it remains interrupted for a period in excess of twenty-four (24) hours after being reported or found to be interrupted, the carrier shall, upon request, or pursuant to direction of the Commission, refund the pro rata portion of the month's charge for the period of days during which such access line service was interrupted. Provided, however, if access line service is interrupted as the result of widespread disaster, and other than by the negligence or willful act of the exchange carrier, no refund shall be required unless the access line service remains interrupted for a period in excess of seven (7) days. No exchange carrier shall charge or collect any further rates for such service that was affected during the interruption of service. An exchange carrier may, in its discretion, refund such sum without request or Commission direction and for a lesser period of access line interruption. This refund may be accomplished by a credit on a subsequent bill for local exchange service.

002.04 Trouble Reports:

002.04A Each exchange carrier shall receive or provide a reasonable means for receipt of customer and/or access line trouble reports daily on a twenty-four (24) hour basis.

002.04B Each exchange carrier shall keep a record of trouble reports made by its customers. This record shall include appropriate identification of the customers or access line service affected, the time, date and nature of the report, the action taken, the date and time of trouble clearance or other disposition and the identification of the person making final disposition. The carrier shall furnish reports to the Commission upon request.

002.04C It shall be the objective to so maintain access line service that the average rate of all access line trouble reports in an exchange is no greater than six (6) per one hundred (100) access lines per month, based on a six (6) month period. In the event this average trouble rate reaches eight (8) per month, in a particular exchange, it shall be the responsibility of the exchange carrier serving that exchange to develop a plan to improve service in the exchange with the objective being to reduce trouble reports to acceptable levels.

002.04D In the case of access line service interruptions, each exchange carrier shall provide repair service daily consistent with the bona fide needs of the customer and the personal safety of exchange carrier personnel.

002.05 Emergency Operations and Power:

002.05A Each exchange carrier shall make reasonable provisions to meet emergencies resulting from failures of lighting or power service, sudden and prolonged increases in local calls or similar emergencies and each exchange carrier shall inform its employees as to procedures to be followed in the event of emergency in order to prevent or mitigate interruption or impairment of access line service.

002.05B It is essential that all central offices have reasonably adequate provisions for emergency power. For offices without permanently installed emergency power facilities, there shall be a mobile power unit available which can be delivered on reasonably short notice and which can be readily connected.

002.05C Each central office shall contain, as a minimum, three (3) hours of battery reserve.

002.06 Public Telephone Service: In each municipality served by an exchange carrier where public convenience requires it, the exchange carrier shall supply at least one public pay station that will be available to the public on a 24-hour basis. The requirement for this facility may be waived by the Commission for reasons such as: abusive vandalism or damage, excessive cost of maintaining the pay station, or lack of use.

002.07 Intercept: Central office equipment shall be equipped to provide adequate operator or recorded announcement intercept to cover changed numbers, vacant numbers and vacant levels.

002.08 Maintenance Program:

002.08A Each exchange carrier shall adopt and pursue an adequate maintenance program, which includes provision for periodic tests, inspections and preventive maintenance for the purpose of insuring rendition of adequate service at all times.

002.08B Maintenance shall include keeping all plant and equipment in a good state of repair consistent with safety and adequate service performance. Broken, damaged or deteriorated parts which are no longer serviceable shall be repaired or replaced. Adjustable apparatus and equipment shall be readjusted as necessary when found by preventive routines or fault location tests to be in unsatisfactory operating condition. Electrical faults, such as leakage or poor insulation, noise induction, cross-talk or poor transmission characteristics, shall be corrected to the extent practicable within the design capability of the plant affected.

002.08C The maintenance program shall also include definite procedures designed to keep the central office equipment rooms clean and the humidity and temperature at satisfactory levels. These rooms should not ordinarily be used for storage of general supplies nor for a general workshop.

002.09 Operator Rules:

002.09A Suitable practices shall be adopted by each exchange carrier concerning the operating methods to be employed by operators with the objective of providing efficient and pleasing service to the customers.

002.09B Operators shall be instructed to be courteous, considerate and efficient in the handling of all calls.

002.09C All operator handled calls shall be carefully supervised and disconnections made promptly.

002.09D If a customer reaches a wrong number on a direct dialed call and notifies the operator, reasonable action shall be taken to make certain that the customer is not charged for the call.

002.10 Tests: Each exchange carrier shall provide or have access to test facilities which will enable it to determine the operating and transmission capabilities of circuit and switching equipment, both for routine maintenance and for fault location.

002.10A Each exchange carrier furnishing access line service, where local measured service is offered, shall provide the necessary facilities, instruments, and equipment for testing its metering and recording equipment.

002.10B The over-all accuracy of the test equipment and test procedures shall be sufficient to enable testing of meters and recording equipment within the requirements of these rules.

002.10C All meters and/or recording devices used to record data and prepare customer's bills shall be in good mechanical and electrical condition, shall be accurately read and shall not involve approximations.

002.10D All meters and/or recording devices shall accurately perform the following:

002.10D1 For message rate service, where timing or length of message is not involved, the meter and/or recording device shall show accurately the number of completed messages sent by the access line which it is measuring.

002.10D2 For local measured and/or toll service where in addition to recording the number of messages, it is necessary to time and distance-rate the messages, the recording device shall show accurately the number of messages and the chargeable time involved in each message, applicable distance information, and the access line originating the message.

002.10D3 Where the recording equipment provides coded information that is used to automatically prepare customer bills, accurate interpretation of such coded information is required.

002.10E Every billing meter and/or recording device shall be tested for accuracy, when put into service, either by the exchange carrier or a qualified organization.

002.10F All meters and/or recording devices tested in accordance with these rules for routine maintenance or pursuant to complaints shall be tested in their normal operating locations and wiring modes prior to removal or adjustment.

002.10G Each exchange carrier shall adopt appropriate practices for the routine testing and maintenance of its meters and/or recording devices to assure the integrity of their operation.

002.10H Upon request of any customer the exchange carrier shall make a test of any metering and/or recording equipment related to the billing in question provided such request is not made more frequently than once each six (6) months.

002.10I Any customer, by written application to the Commission, may have a test of metering and/or recording equipment conducted by the exchange carrier in the presence of a representative of the Commission for reasonable cause as determined by the Commission.

002.10J A record of all metering and/or recording equipment tests and adjustments and data sufficient to allow checking of the results shall be recorded and retained for a period of two (2) years. Such record shall include the identifying number of the meter and/or recording device, its type, the date and kind of test, and the result found in each test.

002.11 Answering Time Objectives: Each exchange carrier shall provide equipment designed and engineered on the basis of realistic forecasts of growth, and shall make all reasonable efforts to provide personnel so as to attain the following daily operator answer performance objectives under normal operating conditions:

002.11A Where the performance criteria is in terms of the average interval preceding answer, the objective shall be 2.5 seconds for all toll and assistance calls and 6.3 seconds for directory assistance and intercept calls.

002.11B Where the performance criteria is in terms of the percentage of calls which are answered within a specified period, the following objectives shall apply:

002.11B1 Ninety percent (90%) of all toll and assistance operator calls will be answered within ten (10) seconds (equivalent measurements as approved by the Commission may be used).

002.11B2 Ninety percent (90%) of repair service calls, calls to the business office and other calls shall be answered within twenty (20) seconds (equivalent measurements as approved by the Commission may be used).

002.11C The term "answered" as used in this subsection shall be construed to mean that the operator or exchange carrier representative is ready to render assistance and/or accept information necessary to process the call. An acknowledgment that the customer is waiting on the line shall not constitute an "answered" call.

002.11D Answering time studies shall be made by exchange carriers to the extent and frequency necessary to determine compliance with the objectives outlined in this subsection. The exchange carrier shall furnish reports to the Commission upon request.

002.12 Dial Service Objectives: Sufficient central office capacity and equipment shall be provided to meet the following requirements during the average busy hour-busy season:

002.12A Ninety-eight percent (98%) of all calls should receive dial tone within three (3) seconds.

002.12B Intraoffice trunks shall be sufficient so that ninety-seven percent (97%) of all correctly dialed intraoffice calls can be handled without encountering an all trunks busy condition.

002.12C Local interoffice trunks in multi-office exchanges shall be provided in sufficient quantities so that ninety-six percent (96%) of all correctly dialed interoffice local calls will not encounter an all trunks busy condition.

002.12D Trunks for extended area service shall be provided in sufficient quantities so that at least ninety-five percent (95%) of all correctly dialed calls offered to any trunk group within the local calling area will not encounter an all trunks busy condition.

002.13 Loop Transmission Objectives: Exchange carriers shall furnish and maintain adequate plant, equipment, and facilities necessary to provide satisfactory transmission of telecommunications. Transmission shall be at adequate volume levels and free of excessive distortion. Levels of noise and cross-talk shall be such as not to impair communications.

002.13A Local line loops shall have a loop resistance not exceeding the operating design of the associated central office equipment. Longer loops may be used by employment of long line adapters and amplifiers, or special equipment.

002.13B Transmission loss as set forth herein means the loss that occurs in a telephone connection, measured in decibels (db) at one thousand (1000) hertz per second, exclusive of test pads, impedance matching coils used for measurement, and similar devices. Transmission loss on local access line loops shall not exceed ten (10) db.

002.13C The maximum overall transmission loss objective, including the loss of terminating equipment on local interoffice trunks, shall be seven (7) db.

002.13D Noise, as set forth herein means noise expressed in db above reference level, with the standard C-message weighting (dbrnC) at applicable circuitry impedances. Reference level is defined as minus ninety (-90) dbm (minus 90 decibels referred to one milliwatt). The maximum noise objective for local access line loops shall be thirty (30) dbrnC.

002.13E The maximum power influence or noise-to-ground objective for local access line loops shall be ninety (90) dbrnC.

002.13F The minimum loop current objective for local access lines shall be twenty (20) milliamps (ma).

002.14 Customer-Provided Semi-Public Telephones: Customer-provided coin or non-coin operated telephone instruments may be connected to semi-public telephone service offered by exchange carriers under the following conditions:

002.14A Customer-provided coin or non-coin operated telephones must be registered in compliance with Part 68 of the Federal Communications Commission Registration Program or be connected behind an FCC registered coupler.

002.14B The customer shall be responsible for the installation, operation and maintenance of any customer-provided telephones used in connection with this service.

002.14C The customer shall be responsible for payment of all exchange carrier charges for this service as well as charges for all toll messages originated or accepted at this type of service.

002.14D Customer-provided coin or non-coin operated telephones must have the following operational characteristics:

002.14D1 Must be able to access the operator at no charge and without using a coin.

002.14D2 Must be able to access 911 Emergency Service, where available, at no charge, without using a coin, and, when such instrument can only access 911 Emergency Service by use of a dialing sequence other than 911, must prominently display on such instrument, the appropriate dialing sequence to access 911 Emergency Service, where available.

002.14D3 Must be able to access all interexchange carriers unless the customer is an interexchange carrier in which case access may be limited to that carrier.

002.14D4 Must comply with all applicable federal, state, and local laws and regulations concerning the use of these telephones by disabled persons and the hearing impaired.

002.14D5 Must allow completion of both local and long distance calls from the zero (0) level.

002.14E The customer shall cause to be prominently displayed on each customer-provided coin or non-coin operated semi-public telephone the name of the owner of such instrument, the procedure for reporting the service difficulties and obtaining customer refunds, and the percentage or range of percentages by which the cost of long distance service to the vendor is increased to the user of such equipment.

002.14F Customer-provided semi-public telephones must be connected to one-party service and only one such instrument per line is allowed.

002.14G Rates for local calls from customer-provided semi-public telephones shall not be regulated by the Commission. Any additional charge for long distance service must be made in accordance with 002.14E preceding.

002.15 Application for Service:

002.15A An application or applicants desiring access line service from an exchange carrier may be required to make application in writing. Forms for this purpose shall be supplied by the exchange carrier and should be accompanied by a telephone number the exchange carrier can call during normal business hours to reach the applicant and complete the application.

002.15B Each exchange carrier shall keep a record of held applications by exchange, showing the name and address of each applicant for service, the date of application, the date service is desired, the class and grade of service applied for, together with the reasons for the inability to provide the new service or higher grade of service to the applicant. The exchange carrier shall furnish reports to the Commission upon request.

002.16 Refusal of Service and Disconnection:

002.16A Access line service may be refused or disconnected for any of the following reasons:

002.16A1 Without notice in the event of customer use of equipment in such a manner as to adversely affect the access line service to others.

002.16A2 Without notice in the event of tampering with the equipment furnished and owned by the exchange carrier.

002.16A3 For violation of or non-compliance with the Commission's regulations governing access line service supplied by exchange carriers or for violation of or non-compliance with the exchange carrier's tariff on file with the Commission.

002.16A4 Failure to pay for services rendered subsequent to proper notice.

002.16A5 Request for service or delinquency in payment for service at an indebted household, unless a customer in the indebted household to whom service is provided and billed has made prompt payment for such service. Rule and Regulation No. 121; October 27, 1993

002.16B The following shall not constitute sufficient cause for refusal of access line service to a present or prospective customer:

002.16B1 Delinquency in payment for service by a previous occupant, other than a member of the same household, of the premises to be served.

002.16B2 Failure to pay directory advertising charges or other unregulated charges.

002.16B3 Failure to pay for operator service provider charges billed by the local exchange carrier if the charge exceeds that of AT&T Communications of the Midwest.

002.16B4 Failure to pay for 900, 960 or 976 calls disputed by the customer.

002.17 Customer Billing:

002.17A Bills to customers shall be prompt and accurate, rendered regularly consistent with the carrier’s tariff and shall contain a clear listing of all charges. An itemized listing of the services being subscribed to and their monthly rates, written or upon request of the customer, electronic, where available, shall be provided as a part of the initial bill or when service is ordered and subsequently upon reasonable request of the customer. No carrier shall impose interest or late payment fees for delinquent payment less than twenty (20) days from the date of billing.

002.17A1 “Prompt and accurate” billing shall mean that any charges for telecommunications services shall not be older than one hundred and eighty (180) days prior to the date of the first monthly billing statement or invoice that reflects such charges. The requirement of prompt billing shall not operate to curtail the rights of any telecommunications provider to collect payment for telecommunications services rendered and timely billed, and shall not operate to curtail the rights of any telecommunications provider to bill and collect for services obtained by fraud or other misconduct on the part of the customer regardless of when such bills are first submitted.

002.17B Billing Adjustments: For all billing adjustments resulting in a charge to the customer, a carrier must offer a reasonable amount of time for payment.

002.17C If a dispute between the customer and the exchange carrier occurs regarding any bill, an investigation will be made and the results given to the customer. During the investigation, disconnection of service will not occur provided the balance of the bill not in dispute is paid. If the investigation does prove the disputed billing is correct under the regulations of the Commission, and the customer still will not pay the amount due, the exchange carrier may then disconnect service. The customer, or the exchange carrier, may make application to the Commission for review. Their decision will be final, subject only to legal redress as the parties involved may choose to exercise. The Commission may prohibit such disconnection pending judicial review of the dispute.

002.18 Information:

002.18A Each exchange carrier shall, upon request, provide its customers with such information and assistance as is necessary so that they may secure the most desirable grades of service.

002.18B Each exchange carrier shall provide or make provisions, through tariffs, for directory assistance and information regarding customers not listed in their locally published directory, provided, however, the number of a customer who has requested that his number not be made available to the public need not be disclosed.

002.18C Each exchange carrier shall provide or make provisions through tariffs, customer line verification in emergencies where possible.

002.19 Rules Governing Credit and Deposits:

002.19A Rules filed under Section 002.21G governing the establishment of credit by customers for the payment of service bills shall be subject to the following provisions:

002.19A1 The amount of deposit required shall not normally exceed the bill for two (2) month's service plus estimated toll charges for two (2) months. An increase in the deposit amount may be requested if increased usage or additional services warrants it.

002.19A2 Deposits shall bear simple interest at the minimum rate of seven percent (7%) per annum. No interest need be paid on deposits held less than thirty (30) days.

002.19A3 In the case of residential service the deposit shall be refunded upon request of the customer after twelve (12) consecutive months of prompt payment and refunded voluntarily after twenty-four (24) consecutive months of prompt payment.

002.19A4 In the case of business service, the deposits shall be refunded after thirty-six (36) consecutive months of prompt payment.

002.19A5 Deposits may be refunded sooner at the exchange carrier's option.

002.19A6 New and existing residential customers may be allowed to pay deposits or requests for increases in existing deposits in installments over a period of at least three (3) months.

002.19A7 Each exchange carrier holding customer deposits shall render to each depositor, when such customer's deposit is applied to an unpaid bill, a statement showing the bill then due and unpaid, the amount of the deposit, together with the interest accrued thereon and the period covered thereby, and the balance due or remaining to the credit of the depositor.

002.19A8 Each exchange carrier holding customer deposits shall render to each depositor, when and as such deposit is refunded, a statement showing the amount of the deposit, together with the amount of unpaid interest accrued thereon to the date of refund and the period covered thereby.

002.19A9 For purposes of establishing a refund date when deposits are paid on an installment plan, the date will be the day of receipt of the final installment.

002.19A10 Each exchange carrier holding deposits shall issue to every subscriber from whom a deposit may be exacted, a receipt of which a record shall remain in the possession of the exchange carrier.

002.19A11 Records shall be kept by each exchange carrier showing, with respect to each deposit, the account telephone number, the name of the customer making the deposit, the address of each depositor, if known, the date of receipt of the deposit and the amount of the deposit. These deposit records shall include deductions representing sums due and unpaid to the carrier, when the depositor ceased to be a customer and the date thereof, together with such other information as any such carrier may deem necessary to make a complete record of each deposit.

002.19B Guarantors shall be accepted in lieu of deposits subject to the following:

002.19B1 The guarantor shall be satisfactory to the exchange carrier.

002.19B2 The guarantor shall guarantee the payment of all specific charges for access line facilities and service covered on the date the guarantee arrangement is entered into. The guarantor's liability shall not exceed the amount otherwise required as a deposit by the exchange carrier from the customer.

002.19B3 The guarantor's obligation shall cease:

002.19B3a Upon the customer discontinuing service, or

002.19B3b After twelve (12) consecutive months of prompt payment, or

002.19B3c After ten (10) business days written notice by the guarantor to the exchange carrier, the customer would be subject to suspension of service unless a security deposit is received before the date the guarantor's obligation ceases.

002.19B4 The exchange carrier shall have six (6) months, from the date a guarantor's obligation ceases, in which to accumulate charges incurred prior to such date for which the guarantor may be obligated.

002.19B5 The exchange carrier shall provide written notification to the guarantor verifying date guarantor's obligation ceases.

002.19C The exchange carrier may request an existing customer for a deposit or guarantee or an increase in a deposit or guarantee only if increased usage warrants such request or where the customer's payment record is not satisfactory.

002.19D Where the customer's business is of a hazardous or temporary nature, the exchange carrier may bill such customer on other than a monthly basis with a corresponding adjustment in the deposit or guarantee requirement.

002.20 Complaint Handling Procedures: Customers' complaints about access line service, deposit requests, or other service or billing problems shall first be made to the exchange carrier. The carrier shall allow complaints to be accepted and processed in a simple manner and form. Every complaint shall be promptly investigated in a fair manner and the results reported to the complainant. If the report of the investigation is made orally, the carrier shall provide the complainant, upon request, the report in writing. If the carrier fails to resolve a complaint to the satisfaction of the complainant, the carrier shall, upon request, inform same of the availability of the Commission to review the carrier's investigation, including the Commission's address and telephone number.

002.20A An exchange carrier shall refrain from suspending or terminating service for non-payment during the pendency of a complaint before the exchange carrier or this Commission or its authorized designee, unless otherwise provided by the Commission or its authorized designee; provided however, that as a condition of continued service during the pendency of such dispute, a customer shall pay the undisputed portions of any bill for service.

002.21 Tariff to be Filed with the Commission: No exchange carrier shall offer access line service to the public, except pursuant to its tariff filed with the Commission. The provisions of such tariff shall be definite and so worded as to minimize ambiguity or the possibility of misinterpretation and shall include, together with such other information as may be deemed pertinent, the following:

002.21A A list of the exchanges or a separate sheet for each exchange showing the rates and charges for local exchange access line service at those exchanges.

002.21B A map or maps of each exchange showing the various rate areas.

002.21C Information as to the extended area access line service furnished.

002.21D Definitions of classes of access line service.

002.21E Rules for extending access line service to new customers indicating what portion of the line extension or the cost thereof will be furnished by the exchange carrier.

002.21F Rules governing foreign exchange access line service (where offered) and all other access line service offerings together with the corresponding rates and charges.

002.21G Rules governing the establishment or re-establishment of access line service including credit requirements.

002.21H Rules governing the procedures followed in disconnecting and reconnecting access line service.

002.21I Rules governing the billing procedures and payment requirements.

002.22 Directories:

002.22A One exchange alphabetical directory for each access line shall be made available, without charge, to all access line customers. The listings of customers in foreign exchanges to which extended area service is provided shall also be made available to all access line customers. Where such listings are not included in the exchange directory, the exchange carrier shall inform customers how such listings may be obtained. Inclusion of all listings for the calling area within a single volume is recommended.

002.22B Directories shall be revised at least annually. Exemption from this requirement may be necessary with an office conversion, or when changed listings and new listings are not sufficient in number to cause serious inconvenience. Such exemption shall be provided upon approval of this Commission. A shorter directory interval may be necessary where the number of changed listings and new listings is abnormally large.

002.22C The name of the exchange covered by the directory, month and year issued, and the area code shall appear prominently. If the directory serves more than one exchange, such exchanges shall be listed in the front of the directory.

002.22D Each directory shall contain a list of common governmental emergency numbers, a list of extended area service points, and the repair service number; pertinent instructions concerning the use of local and extended area service; and an alphabetical list of all customers, together with their address (unless customer requests address omission) and telephone number. The number of a subscriber who has requested that his number not be made available to the public shall not be listed subject to any existing or future tariffs that may be applicable. The emergency numbers shall appear prominently in the directory either on the inner or outer face of the front cover, or on the first page inside the cover. The opening pages of the directory shall contain a conspicuous notice advising customers that should the carrier fail to satisfactorily resolve service or billing problems, the customer may refer the problem to the Nebraska Public Service Commission, 300 The Atrium, 1200 N Street, Lincoln, NE 68508, telephone number 402-471-3101.

002.22E Upon issuance of a new directory, two copies thereof shall be filed by the exchange carrier with the Commission.

002.23 Records:

002.23A All records required by these rules, unless otherwise specified herein, shall be preserved for the period of time specified by the Federal Communications Commission's Records Retention Schedule.

002.23B Each exchange carrier shall maintain records of its operations in sufficient detail as is necessary to permit review of its operation to assure the furnishing of adequate service. Such records shall be made available for inspection by the Commission upon request at any time within the period required for the retention of such records.

002.23C Where an exchange carrier is operated in conjunction with any other enterprise, suitable records shall be maintained, so that the results of the exchange carrier's regulated operation may be determined within a reasonable time after notice to the exchange carrier by the Commission.

002.24 Accounting:

002.24A For purposes of accounting to the Commission, each exchange carrier shall be classified in conformance with the latest FCC rules.

002.24B For the purposes of accounting to the Commission, each exchange carrier shall keep its books and records in accordance with the appropriate uniform system of accounts in conformance with the latest FCC rules.

002.24C Each exchange carrier shall file an annual report with the Commission on or before April 30 of the succeeding year.

002.24D Exchange carriers filing an annual report with the Federal Communications Commission shall file a copy of same with the Commission and in addition shall file with the Commission an annual report on the form prescribed by the Commission.

002.24E Exchange carriers operating in more than one state shall file with the Commission a supplemental annual report with segregation of accounts and miscellaneous statistics for the State of Nebraska on the form prescribed by the Commission.

002.24F Exchange carriers not filing an annual report with the Federal Communications Commission shall file with the Commission an annual report on the form prescribed by the Commission.

002.25 Service Area:

002.25A Each exchange carrier shall file with the Commission a map for each exchange operated in the State of Nebraska. Each map shall show the exchange area of the exchange for which such map is filed. The exchange area shall be enclosed in a solid black line; a service station company area receiving switching service from the exchange shall be enclosed in a dash-dot line; any area within the exchange area boundaries which receives service from another exchange shall be shaded indicating a duplicate service area; section lines, range and township numbers and the names of counties served shall be shown; the map shall be drawn to a scale not less than 1/2 inch per mile; the map shall indicate the revision number, date of issuance, and person who authorized the revision.

002.25B Any change in the service area boundary of an exchange which would result in one exchange carrier offering access line service in the exchange area of another exchange carrier or which would result, directly or indirectly, in an increase in rates charged or in a change of service offered in the area affected, shall be valid only after approved by the Commission. Each exchange carrier shall within a reasonable time after a change in its service area boundaries, file a revised map depicting the revised service area of the exchange for which such map is filed.

002.25C Commission acceptance or approval of a map filed pursuant to this subsection shall not preclude the Commission from thereafter determining in any appropriate proceeding the accuracy of the map filed or from assisting in the settlement of any boundary dispute.

002.26 Exchange Boundary Changes:

002.26A For purposes of this section, advanced telecommunications capability service means high-speed, broadband telecommunications capability provided by a local exchange carrier that enables users to originate and receive high-quality voice, data, graphics, and video communications using any technology.

002.26B Any person may file an application with the Commission to obtain advanced telecommunications capability service furnished by a telecommunications company in the local exchange area adjacent to the local exchange area in which the applicant resides.

002.26C The Commission shall serve upon each telecommunications company directly affected by the application a copy of the application. In the event both telecommunications companies directly affected do not consent to the application, a hearing shall be scheduled and notice of the hearing shall be sent to each affected telecommunications company at least thirty (30) days prior to the hearing on the application.

002.26C1 Any telecommunications company directly affected by the application shall, within thirty (30) days of receiving notice pursuant to section 002.26C, notify the Commission in writing whether or not the telecommunications company consents to the application.

002.26D If an application for the revision of an exchange service area includes more than one customer in a particular exchange, the Commission shall consider the circumstances of each customer and the impact to the obligations of any affected telecommunications company which has not consented to the application.

002.26E Upon the completion of the hearing on such an application made pursuant to section 002.26C, if a hearing is required, the Commission may grant the application, in whole or in part, if the evidence establishes the following:

002.26E1 That such applicant is not receiving, and will not within a reasonable time receive, reasonable advanced telecommunications capability service from the telecommunications company which furnishes telecommunications service in the local exchange area in which the applicant resides;

002.26E2 That the revision of the exchange service area required to grant the application is economically sound, will not impair the capability of any telecommunications company affected to serve the remaining subscribers in any affected exchanges, and will not impose an undue and unreasonable technological or engineering burden on any affected telecommunications company; and

002.26E3 That the applicant is willing and, unless waived by the affected telecommunications company, will pay such construction and other costs and rates as are fair and equitable and will reimburse the affected telecommunications company for any undepreciated investment in existing property as determined by the commission.

002.26E4 The amount of any payment by the applicant for construction and other costs associated with providing service to the applicant pursuant to section 002.26E3, may be negotiated between the applicant and the affected telecommunications company.

002.26F In the event the Commission lawfully grants an application pursuant to section 002.26E, the telecommunications company ordered to provide the advanced telecommunications capability service shall be issued a certificate of convenience and necessity to serve that area added to its local exchange area by the Commission, if necessary.

002.26G The Commission shall set the date when the service granted shall take effect and, in doing so, shall take into consideration any construction or major repair which will be required of the telecommunications company involved.

002.26H If the Commission refuses to grant an application made pursuant to section 002.26B, no new application for the same advanced telecommunications capability service shall be filed or shall be considered by the Commission until one year has elapsed after the date of mailing of the Commission order.

002.27 Transfer of Ownership of Exchange Carriers of their Properties:

002.27A No valid sale, assignment or transfer of one or more exchanges can be affected by transfer of the physical properties or the assignment of stock resulting in a change in controlling interest until a joint application requesting such change is approved by the Commission and a certificate of public convenience and necessity or permit as a contract carrier has been issued to the new owner.

002.27B No two or more exchange carriers operating as a common carrier shall consolidate their properties, or any part thereof involving an exchange, into a single carrier, nor shall one or more exchange carriers acquire the whole or any part of the properties of another exchange carrier by the purchase of stock, securities or by lease or in any like manner without first filing an application with and receiving from the Commission a certificate of convenience and necessity, providing, however, this rule shall not be construed to apply to purchase and sale transactions in the usual course of business between one exchange carrier and another involving units of property less than a single exchange.

002.27C After a public hearing, if the Commission finds that the proposed transfer, consolidation, acquisition or control be of advantage to persons to whom service is to be rendered and in the public interest, it shall thereupon enter an order certifying to that effect, and the applicant or applicants may thereafter proceed to consolidate, acquire or control in the manner and form specified in said application except and unless the Commission otherwise provides.

002.28 Extended Area Service:

002.28A No Extended Area Service (EAS) may be discontinued without prior approval of the Commission. All new EAS offerings must be approved by the Commission.

002.28B Survey Procedure; General Information:

002.28B1 All exchange carriers subject to the Commission’s jurisdiction shall follow the EAS survey procedures set forth in the following sections: Sections 002.27C and 002.27D contain the procedures to be followed to establish EAS and Sections 002.27E and 002.27F contain the procedures to be followed to discontinue EAS.

002.28B2 At all stages of this procedure, the information an exchange carrier is required to supply customers shall be brief but sufficient to explain the proposed service to the customers and shall not discourage the customers from completing the survey.

002.28B3 Whenever an EAS survey is conducted, the ex- change carrier shall mail to each customer account (primary service listing) a letter explaining the purpose of the survey, and a postage-paid, Commission-addressed return ballot on which the customer can indicate a preference. The Commission shall provide the exchange carrier a copy of the survey results within ten (10) days following the last date on which surveys may be returned to the Commission.

002.28B3a Customers are permitted one vote per account.

002.28B4 The exchange carrier shall provide a copy of the proposed text and format of the customer letter and ballot to the Commission, for its approval.

002.28C Requirements for Establishing Extended Area Service (EAS) Studies:

002.28C1 The initiative for EAS shall be in the form of a petition presented to the Commission with evidence of support indicated by signatures of twenty-five percent (25%), or 750, of the petitioning exchange accounts, whichever is less. If the subscriber has a residential account, the petition must be signed by the subscriber or the subscriber's spouse. In the case of a business account, only a duly authorized agent or representative of the business may sign the petition. Each signer shall include an address and telephone number. The exchange carrier may also inaugurate the initiative for EAS.

002.28C2 The exchange carrier shall file a list of customers in the petitioning exchange with the Commission within seven (7) working days of notification by the Commission that a petition has been filed. If the petition meets the above requirements, the Commission will assign a docket number to the EAS request.

002.28C3 If the requirements of Section 002.27C1 are fulfilled, the exchange carrier shall conduct a usage study covering the most recent three month available data to determine if a sufficient community of interest exists from the petitioning exchange to the petitioned exchange. There must be an average of five (5) or more calls per customer, per month, and more than fifty percent (50%) of the customers must make at least two (2) calls per month to the petitioned exchange in at least two (2) of the three (3) months studied. The exchange carrier shall file the results of the usage study with the Commission within forty-five (45) days from the date the petition is docketed. If these basic criteria are not met, the request will be dismissed without further action.

002.28C4 If the provisions of Section 002.27C3 are met, the exchange carrier shall file proposed rates for EAS and may voluntarily file an OEACP with the Commission within ninety (90) days from the date usage studies are submitted. The proposed rates shall be made a part of the record in the docket. The exchange carrier shall provide evidence supporting the proposed rate, including computations used to develop the proposed rates.

002.28C5 The exchange carrier shall hold at least one informational meeting in the exchange where the EAS petition was originated within sixty (60) days from the date the proposed rates are filed. The purpose of the meeting is to inform the petitioners of the proposed rates and to assess the petitioners= interest in receiving EAS, or an OEACP if offered.

002.28C5a The exchange carrier shall publish notice of the time, date, and location of the informational meeting in the local newspaper of the affected exchange(s) at least one (1) week prior to the date of the meeting.

002.28C6 Within thirty (30) days from the date of the informational meeting, the Commission shall determine whether a survey for EAS should be mailed to the affected customers. If the Commission determines that EAS is not acceptable, or if the EAS ballot fails, the Commission may require that the voluntarily offered OEACP be offered.

002.28C6a The exchange carrier shall publish the results of the Commission's decision (made pursuant to Section 002.27C6) in the local newspaper of the affected exchange(s).

O02.28C7 If the Commission determines an optional enhanced area calling plan is acceptable, the exchange carrier shall establish the service not later than six (6) months from the date of the informational meeting, unless good cause is shown.

002.28C7a A petition for EAS may not be resubmitted for twelve (12) months from the date the OEACP is approved.

002.28C8 When a petition fails to pass the tests in Section 002.27C3, the petitioning exchange may not initiate a similar petition for twelve (12) months from the date the petition is dismissed.

002.28D Requirements for Customer Survey to Establish Extended Area Service (EAS):

002.28D1 If the Commission determines EAS should be offered, the exchange carrier shall conduct a survey of the customers whose rates will be affected if the plan is adopted. The Commission may grant a waiver of this provision upon request from an affected exchange carrier and a showing of good cause.

002.28D2 The survey letter shall contain the following items:

002.28D2a An explanation of the purpose of the survey;

002.28D2b An explanation that only one vote, per account is permitted;

002.28D2c Identification of the existing rate, the amount of the rate increase, and the new rate associated with the addition of the proposed EAS;

002.28D2d A statement that more than fifty percent (50%) of those voting must vote in favor of the proposal before EAS will be implemented;

002.28D2e A statement indicating the proposed date when service would be established which shall not be more than one (1) year from the survey ballot date, unless a delay is granted by the Commission for good cause shown; and

002.28D2f The date by which the survey ballot must be returned to be considered, as set by the Commission. Such date shall be not less than thirty (30) days, nor more than sixty (60) days, from the date on which the exchange carrier mails the survey letter. The Commission shall not count the survey ballots for three (3) days following the return date to allow all returned survey ballots to clear the post office.

002.28D3 Ballot Return: The postage-paid, Commission-addressed return ballot included with the survey letter should contain the following information:

002.28D3a A statement explaining the EAS proposal being voted upon as set out in the survey letter;

002.28D3b A place for the customer to indicate a choice of being in favor of, or opposed to, the establishment of EAS; and

002.28D3c Lines designated for the customer's signature, telephone number, and date.

002.28D4 If the customers in an exchange vote in favor of EAS to another exchange, but concurrence in EAS is not received from the second exchange, then customers in the first exchange shall be surveyed with new rates for EAS. The same basic survey procedure shall be followed as provided herein, but the survey letter shall also include information concerning lack of concurrence for EAS by the neighboring exchange and that another survey is being undertaken to determine interest in EAS at new rates. If ultimately only one exchange votes in favor of EAS, the subscribers in that exchange shall bear the total cost of the EAS offering.

002.28D5 When a petition fails to pass the requirements of Section 002.27D2d, the exchange carrier or petitioning exchange may not submit a similar petition for twelve (12) months from the date the petition is dismissed.

002.28E Requirements for Discontinuing Extended Area Service (EAS):

002.28E1 The initiative to discontinue EAS shall be in the form of a petition presented to the Commission with evidence of support indicated by signatures of twenty-five percent (25%), or 750, of the petitioning exchange accounts, whichever is less. If the subscriber has a residential account, the petition must be signed by the subscriber or the subscriber=s spouse. In the case of a business account, only a duly authorized agent or representative of the business may sign the petition. Each signer shall include an address and telephone number. The exchange carrier may also inaugurate the initiative to discontinue EAS.

002.28E2 The exchange carrier shall file a list of customers in the petitioning exchange with the Commission within seven (7) working days of notification by the Commission that a petition has been filed. If the petition meets the above requirements, the Commission shall assign a docket number to the request to discontinue EAS.

002.28E3 The exchange carrier shall conduct customer usage, cost, and revenue studies and shall submit the results of such studies to the Commission within ninety (90) days of the docket date. The Commission shall determine the merits of proceeding with a customer survey.

002.28E4 The exchange carrier need not undertake such studies more than once in the twelve (12) month period from the date the petition is dismissed.

002.28F Requirements for Customer Survey to Discontinue Extended Area Service (EAS):

002.28F1 The survey letter shall contain the following items:

002.28F1a An explanation of the purpose of the survey;

002.28F1b An explanation that only one vote, per account, is permitted;

002.28F1c Identification of the existing rate, the amount of the rate decrease, if any, and the new rate associated with the proposed discontinuance of EAS; (Previously Item 2)

002.28F1d A statement that more than fifty percent (50%) of those voting must vote in favor of the proposal before EAS will be discontinued;

002.28F1e A statement indicating the proposed date when the service would be discontinued, which shall not be more than six (6) months from the survey ballot date; and

002.28F1f The date by which the survey ballot must be returned to be considered, as set by the Commission. Such date shall be not less than thirty (30) days, nor more than sixty (60) days, from the date on which the exchange carrier mails the survey letter. The Commission shall not count the ballots for three (3) days following the return date to allow all returned survey ballots to clear the post office.

002.28F2 Ballot Return: Along with the survey letter, the exchange carrier shall send each customer in the affected exchange(s) a postage-paid, Commission-addressed return ballot containing the following information:

002.28F2a A statement explaining the EAS proposal being voted on as set out in the survey letter;

002.28F2b A place for the customer to indicate a choice of being in favor of, or opposed to, the discontinuance of EAS; and

002.28F2c Lines designated for the customer's signature, telephone number, and date.

002.28F3 A majority of those voting in each exchange surveyed must vote to discontinue EAS for the service to be withdrawn.

002.28F4 The exchange carrier need not conduct a customer survey to discontinue EAS more than once in any twelve (12) month period from the date the petition is dismissed.

002.28G Exemption: If an exchange carrier offers, in an exchange, an optional enhanced area calling plan acceptable to the Commission, it shall be exempt from the requirements of rule 002.27B in that exchange.

002.29 Short Term Debt: No exchange carrier whose security issues require the approval of this Commission may issue short term or demand notes or other evidence of indebtedness in any amount exceeding twenty percent (20%) of its total plant in service without prior approval of this Commission.

002.30 Application for New Rates or Charges, of Changes in Existing Rates or Charges for Telephone Service: An application to establish new rates or charges or to change existing rates or charges filed pursuant to Section 75-128 R.R.S. 1943, as amended, shall be accomplished by proposed tariff sheets setting forth the proposed rates and the appropriate filing fee. In lieu of filing tariff sheets, an applicant may submit a detailed rate schedule of all items to be changed including the present rate, the proposed rate, the number of units and the revenue to be produced.

002.30A The Commission will not approve any increase in rates pursuant to Section 75-128 R.R.S. 1943, as amended unless it finds:

002.30A1 The increase is cost-justified and does not reflect future inflationary expectations. Said standard shall be applied subject to the following conditions:

002.30A1a Application or tariff filings for rate increases must be based on data submitted for a recently concluded test year or for a test year consisting of at least six (6) months actual experience and not more than six (6) months estimated data to be subject to correction or verification during the course of the proceeding considering the proposed rate increase.

002.30A1b Adjustments will be made to test year data to reflect changes in costs occurring during the test year but not reflected in test year data, known and measurable changes in costs occurring within a reasonable time subsequent to the test year. All known decreases in costs, as well as increases will be included in the adjustments made.

002.30A1c Adjustments will also be made to eliminate the effects of abnormal or unrepresentative conditions reflected in test year data.

002.30A1d Adjustments for changes in test year costs will not be made unless either the changes are subject to definite computation or reasonable estimation, or in exceptional circumstances, a cost adjustment is dictated by overriding considerations of public policy and should be allowed despite difficulties in estimations. In the case of adjustments falling within the latter category, the Commission may require periodic reporting or impose other protective conditions. In no case will an adjustment be made on the general predictions of future increased cost.

002.30A2 The increase is the minimum required to assure continued, adequate and safe service or to provide for necessary expansion to meet future requirements.

002.30A2a Where rate increases are sought to cover future costs associated with safety, expansion of service, improvement of service, or environmental or ecological protection, the increases will not be permitted except in instances where the costs qualify as test year adjustments within the scope of 002.29A1(b), (c), and (d) preceding.

002.30A3 The increase will achieve minimum rate of return or revenue needed to attract capital at reasonable costs, to maintain the integrity of the utility's investment, and not to impair its credit; such rate of return must also meet all the requirements of the Constitution and statutes of the state of Nebraska and all decisions of the Nebraska Supreme Court with reference to such matters.

002.30A3a In determining an appropriate rate of return, the Commission will consider the capital structure at or near the time the applicant's increased rates will become effective. Costs of various components of capital structure-interest on bonds, dividends on preferred stock, return on common stock-will be computed as of that date. Adjustments generally will be made in the capital structure and in the costs of various types of capital in a number of situations, as, for example, where adjustments are required to reflect new financings which are known to be imminent.

002.30A3b The rate of return or operating ratio allowed by the Commission will not reflect expectations of future inflations, but only cost-justified expense increases.

002.30A4 The increase takes into account expected and obtainable productivity gains, to the extent that such gains can be measured and verified.

002.30A5 This Rule shall not apply to rate increases of utilities if such rate increases are:

002.30A5a Intended only to pass on to customers specific payments to municipalities, such as occupation taxes, license taxes, permit or franchise fees, or

002.30A5b Which do not increase the utility's aggregate annual revenue by more than one percent.

002.30B An Application to increase rates shall include the information set forth below:

002.30B1 Testimony and exhibits of all witnesses to be called in the direct case. Amendments of filed testimony and exhibits may be made only with the permission of the Commission.

002.30B2 Balance sheet and income statement or, in lieu thereof, a statement of the assets and revenues which constitute the jurisdictional rate base and net earnings statement for the test year and any adjustments thereto.

002.30B3 The latest available certified audit report.

002.30B4 The latest annual report to stockholders.

002.30B5 A summary of trouble reports showing by exchange for the most recent twelve (12) month period for which such information is available, the monthly average incidence of customer access line trouble per one hundred (100) access lines.

002.30B6 A summary of monthly answering time study results for the most recent twelve (12) month period for which such information is available.

002.31 Exemption From Rate Regulation: Exchange carriers which serve less than five thousand (5,000) subscribers shall not be subject to rate regulation by the Nebraska Public Service Commission pursuant to Section 75-609 R.R.S. 1943, as amended, unless:

002.31A Exchange carriers eligible for exemption may elect to be regulated. If prior to any proposed rate change its Board of Directors votes to be subject to regulation, a copy of the resolution shall be filed with the application.

002.31B If the proposed increase exceeds thirty percent (30%) in any one year for any subscriber's service, the proposed increase shall be subject to Commission rate regulation.

002.31C Notice to the Commission shall be in writing over the signature of an officer of the exchange carrier and shall include the present and proposed rates, the effective date of the rate increase, a list of subscribers as of the first day of the month in which the notice is given and a statement that all subscribers have been notified. Notice to all affected subscribers shall be in the following form:

002.31C1 Form for Notice of Proposed Rate Change:

(Date)

Exchange Carrier

, Nebraska

NOTICE OF RATE INCREASE

All affected subscribers of the

Telephone Company are

hereby notified that increased rates will be effective (date) .

Present and proposed rates by class of service are as follows:

Class of Service

Present

Proposed

All affected subscribers are hereby notified that said rates are not subject to approval by the Nebraska Public Service Commission unless petitions signed by five percent (5%) or more of the subscribers are received by the Commission before the effective date shown above. At the present time the company serves ______ affected subscribers. Petitions must be in the following form:

To the Nebraska Public Service Commission:

The undersigned subscribers of the _________ Telephone Company do hereby petition the Nebraska Public Service Commission to determine rates in lieu of those proposed by the telephone company.

Date

Subscriber's Signature

Telephone No.

Each signature shall be dated and shall be that of the subscriber or the subscriber's spouse. If a business, the name shall be included with the signature of an officer or agent. The subscriber's telephone number shall be shown. If an unlisted number, "unlisted" may be shown. Each petition may be signed by one or more subscribers and shall be sent to the Nebraska Public Service Commission, 300 The Atrium, 1200 N Street, Lincoln, NE 68508.

002.31D The foregoing notice to subscribers may exclude the instructions concerning petitions if such information is published in the company's telephone directory and the notice contains reference thereto.

002.31E The effective date of any rate increase proposed by an exchange carrier exempt from rate regulation shall not fall on a Saturday, Sunday, legal holiday or the day immediately following any of the above. Exchange carriers will be notified by the Commission by telephone as soon as petitions are filed, with a confirmation by letter, and shall likewise be notified by the effective date if fewer than five percent (5%) of the subcribers have submitted petitions.

002.31F If at any time the Commission receives petitions signed by fifty-one percent (51%) or more of an exchange carrier's subscribers requesting regulation, the Commission shall declare the company subject to rate regulation.

002.31F1 Petitions shall be in the following form:

To the Nebraska Public Service Commission:

The undersigned subscribers of the _______________ Telephone Company hereby petition the Nebraska Public Service Commission to declare that the company shall be subject to rate regulation.

Date

Subscriber's Signature

Telephone No.

Each signature shall be dated and shall be that of the subscriber or the subscriber's spouse. If a business, the name shall be included with the signature of an officer or agent. The subscriber's telephone number shall be shown. If unlisted, "unlisted" may be shown. Each petition may be signed by one or more subscribers and shall be sent to the Nebraska Public Service Commission, 300 The Atrium, 1200 N Street, Lincoln, NE 68508.

002.31F2 Upon receipt of said petitions, the Commission shall notify the exchange carrier and shall obtain a list of current subscribers.

002.31F3 Companies subject to rate regulation by virtue of petitions by fifty-one percent (51%) of their subscribers may be exempted from regulation upon the filing with the Commission of petitions signed by fifty-one percent (51%) of the subscribers requesting deregulation in like form as previously set forth in this section.

002.31F4 When any proposed rate increase is subjected to Commission regulation, whether by petition or otherwise, a proper application shall be filed with the Commission and all provisions of the Commission's Rules and Regulations as to applications shall apply.

002.32 Rate Regulation: Pursuant to Section 86-803 R.R.S. 1943, as amended, telecommunications companies shall not be subject to basic local exchange service rate regulation by the Nebraska Public Service Commission, except as follows:

002.32A A telecommunications company may file an application with the Commission requesting the Commission to prescribe fair and reasonable rates for the company.

002.32B Except as provided in Section 75-609.01 R.R.S. 1943, as amended and Commission Rule 002.30, the Commission may on its own motion review basic local exchange rates of any telecommunications company if the company has increased such rates for its local service area by more than 10% within any consecutive 12-month period.

002.32C The Commission shall review a telecommunications company's basic local exchange rates if a valid petition is filed with the Commission within sixty days from the date notice is sent to affected subscribers and is signed by:

002.32C1 5% of all affected subscribers if the company has up to 50,000 access lines in service.

002.32C2 3% of all affected subscribers if the company has 50,000 but not more than 250,000, access lines in service.

002.32C3 2% of all affected subscribers if the company has more than 250,000 access lines in service.

002.33 Notice of Rate Change: All subscribers shall be notified in writing of any change in the monthly basic local exchange rates sixty days prior to the effective date. A notice of this change shall include but not be limited to:

002.33A The reasons for the rate increase

002.33B A description of the affected service

002.33C An explanation of the right of the subscriber to petition the commission for a public hearing on the rate increase

002.33D A list of exchanges which are affected by the proposed rate increase

002.33E The dates, times, and places for the public informational meetings required by this section.

002.33F A statement of the number of affected subscribers served and the number and percentage of signatures required for a hearing to be held, and

002.33G A statement that the complaint must be signed by the subscriber or subscriber's spouse, be dated and include a telephone number. If a business subscriber, the name of the business with a signature of an officer or an agent. The subscriber's telephone number should be shown to aid in verifying the subscriber. If an unlisted number, "unlisted" may be shown.

002.34 Local Exchange Service Petition Notice: The notice to subscribers required by subsection (2) of Section 86-803 shall include a statement that a sample petition may be obtained by writing or calling the Nebraska Public Service Commission, 300 The Atrium, 1200 N Street, Lincoln, NE 68508, 402-471-3101.

002.35 Information Meeting(s): At least one informational meeting shall be held in an affected exchange of each Commission district in which an exchange carrier provides basic local exchange service prior to the effective date of the rate increase. The exchange carrier shall explain the proposed rate increases, the reasons for the increases and respond to questions by members of the public. At the exchange carrier=s informational meetings, the notice must be made available for the subscribers.

002.36 Filing with the Commission: At the time notice of a rate change is sent to the subscribers, a copy of the notice shall be filed with the Commission along with a list of current subscribers.

002.37 Effective Date: Sufficient notice shall be given prior to the effective date of a rate increase by an exchange carrier so that if the sixtieth day following the notice falls on a Saturday, Sunday, or legal holiday the notice period shall be extended to the next business day.

002.38 Notify and Validate: The Commission shall validate the required number of petitions necessary to trigger a hearing and shall not be required to validate all petitions received. Notification shall be made to the exchange carrier by the effective date if fewer than the required subscribers submitted valid petitions. Upon receipt of the required number of valid subscriber petitions, the Commission shall notify the telecommunications company.

002.39 Valid Petition Signatures: Each signature shall be dated and if a residential subscriber, be that of the subscriber or the subscriber's spouse. If a business subscriber, the name of the business shall be included with the signature of an officer or agent. Only one signature per business subscriber or per residential subscriber will be counted. The subscriber's telephone number shall be shown to aid in verifying the subscriber. If an unlisted number, "unlisted" may be shown. Each formal complaint may be signed by one or more subscribers and shall be sent to the Nebraska Public Service Commission, 300 The Atrium, 1200 "N" Street, Lincoln, NE 68508.

002.40 Suspended Rates and Charges: If a proper complaint is presented to the Commission within sixty days from the date notice of the rate change was sent to subscribers, the Commission shall accept and file the complaint, and, upon proper notice, may suspend the rates and charges at issue during the pendency of the proceedings and reinstate the rates and charges previously in effect. The exchange carrier shall be notified in writing as to the time and place of a hearing to review the rates.

002.41 Burden of Proof: In a complaint proceeding pursuant to a rate change, the applicant for a rate change has the burden of going forward with presentation of evidence unless otherwise ordered by the Commission.

002.42 Review by the Commission: If a proper complaint is presented to the Commission under Nebraska Revised Statute '86-803 (1986 Supp) the Commission may, within sixty days after close of the hearing, enter an order adjusting the basic local exchange rates and charges at issue, except that the commission may not set any rate or charge below the actual cost of providing such service as established by the evidence received at the hearing.

002.43 Actual Cost: The phrase actual cost as used in Section 86-803 (1986 Supp.) shall mean those costs that are attributable to the provision of basic local exchange service. These costs may include, but shall not be limited to, a telecommunications company's cost for the local distribution facilities, the applicable central office equipment, billing and collecting, directory listing, intercept service and usage on the local switched network if usage is included in the flat monthly charge for basic local exchange service. Such cost may include cost of money as well as expenses specified by the Uniform System of Accounts such as depreciation, all applicable taxes, operating expenses and directly attributable administrative expenses. A telecommunications company may establish these costs at a hearing through one of the following cost studies adjusted to reflect expected future changes: a long-run incremental cost study, a fully allocated separations cost study, or any other cost study acceptable to the Commission. No matter which study a telecommunications company elects to use, it shall also include within actual cost a ratable portion of administrative expenses and overhead incurred by the telecommunications company in its operations and any appropriate amortization of previously deferred accounting costs. A telecommunications company shall make available to the Commission all workpapers, analyses and data used to prepare the cost study. This definition is only for the purposes of Section 86-803 (1986 Supp.) and the rules pertaining to that section.

002.44 Order of Presenting Evidence: At evidentiary hearings upon basic local exchange rates the telecommunications company changing its rates shall open and close the presentation of evidence. The Hearing Officer may direct departures from the foregoing order of procedure for efficiency and justice.

002.45 Service: The Commission shall retain quality of service regulation over the services provided by all telecommunications companies and shall investigate and resolve subscriber complaints concerning quality of telecommunications service, subscriber deposits, and disconnection of service.

002.45A At a hearing affecting basic local exchange rates, the Commission may consider testimony regarding service presented by an affected subscriber, the commission staff or the telecommunications company.

002.45B The Commission may by order in accordance with the Commission's rules and regulations render its decision granting or denying service relief as is reasonable based on the evidence presented to the commission at the hearing. Any such order of the commission may be enforced against any telecommunications company as provided in Sections 75-140 to 75-145 and may be appealed.

002.46 Notice of a Change in a Rate List other than for Basic Local Exchange Service: Any change in a rate list under Nebraska Revised Statute '86-803 (1) (1986 Supp.) shall be effective after ten days notice to the Commission.

002.47 Effective Notice to Customers: In addition to the notice to the Commission, each telecommunications company shall notify the customers affected by an increase in a rate list. Notice to affected customers may be in any of the following forms:

002.47A Publication in a statewide or local newspaper in the area.

002.47B Included in the latest bill.

002.47C Separate letters notifying customers of increases.

002.47D Press Release.

002.48 Statement to Commission: Within thirty days after the effective date of an increase in a rate list, the telecommunications company shall present the Commission with a signed, written statement that affected customers have been notified or are being notified and the method of notification. In the case where customers are still being notified, the statement shall include the date when notification shall be final, not to exceed sixty days after the effective date of an increase.

002.49 Blocking of 900, 960, 976: Each local exchange company shall, where facilities are available and only upon request by the subscriber, on an individual numbering plan area (NPA) basis or NXX basis, provide blocking of the following two options: (1) all 900 NPA, 960 and 976 NXX numbers; (2) all 960 and 976 NXX numbers. Such blocking shall be provided without interruption of other services. Any cost associated with the initial blocking shall not be billed separately to the subscriber.

002.50 Certification and Permitting of Competitive Local Exchange Carrier (CLEC):

002.50A Certificate of Authority or Permit Required: Except as provided by Neb. Rev. Stat. '86-805 (Reissue 1999) or other applicable statutes, no person, firm, partnership, limited liability company, joint venture, corporation, cooperative, or association (hereinafter, applicant) shall offer any telecommunications service as defined by the Telecommunications Act of 1996, 47 U.S.C. '151 et. seq. (the Act) or shall construct new telecommunications facilities in this state outside of the applicant's certificated or permitted service area, as defined in these rules, for the purpose of providing any telecommunications service without first making an application for, and receiving from the Commission, a certificate of authority as a telecommunications common carrier or a permit as a telecommunications contract carrier after due notice and, when required, a hearing, as provided under the rules and regulations of the Commission.

002.50B Standards for Granting Certification or Obtaining a Permit: Before granting a certificate of authority for an applicant as a telecommunications common carrier or a permit for a telecommunications contract carrier pursuant to Rule 002.49A, the applicant shall bear the burden of demonstrating and the Commission shall find:

002.50B1 The applicant's provision of competitive local exchange telecommunications services in the territory in which the applicant proposes to offer such service (the certificated service area) is consistent with the public interest. For purposes of this section, public interest shall include, but not be limited to:

002.50B1a Preserving and advancing universal service;

002.50B1b Protecting the public safety and welfare;

002.50B1c Ensuring the continuous quality of telecommunications services within such territory; and,

002.50B1d Safeguarding the rights of consumers.

002.50B2 The applicant has sufficient financial resources to provide competitive local exchange telecommunications service in the proposed certificated or permitted service area;

002.50B3 The applicant has sufficient technical competency to provide competitive local exchange telecommunications service in the proposed certificated or permitted service area;

002.50B4 The applicant has sufficient managerial resources to provide competitive local exchange telecommunications service in the proposed certificated or permitted service area; and,

002.50B5 The applicant has satisfactorily provided all of the information required by the Commission in its application.

002.50C Information Required for CLEC Applications: Applications for a certificate or permit authorizing any applicant to offer and provide local exchange telecommunications services shall: (1) be submitted in writing; (2) be subscribed to under oath by a duly authorized official of the applicant who possesses full power and authority to make binding representations on applicant's behalf; and, (3) be accompanied by the filing fee established pursuant to Rules of Commission Procedure, Section 025. Such application shall also include the following information:

002.50C1 To the extent pertinent to applicant's form of organization:

002.50C1a A certified copy of applicant's Articles of Incorporation with all amendments, if any.

002.50C1b If applicant is a foreign corporation, a copy of its Certificate of Authority to transact business in the state of Nebraska.

002.50C1c If applicant is a partnership or a limited partnership, a copy of applicant's Articles of Partnership or Limited Partnership Agreement with all amendments, if any.

002.50C1d If applicant is a joint venture, a copy of applicant's Joint Venture Agreement with all amendments, if any.

002.50C1e If applicant is a proprietorship, the name and business address of all proprietors.

002.50C1f If applicant is a limited liability company, a copy of applicant's Articles or Certificate of Organization and Operating Agreement with all amendments, if any, and if applicant is a foreign liability company, a copy of its Certificate of Authority to transact business in the state of Nebraska.

002.50C2 The names, telephone numbers, and business addresses of each of applicant's officers, directors, general and limited partners, joint venture members or managers;

002.50C3 The names and business addresses of each of applicant's shareholders having a beneficial interest in 5% or more of applicant's voting securities;

002.50C4 A listing of each state in which applicant currently transacts business and a brief description of the nature and extent of the business transacted in each such state;

002.50C5 A listing of each state in which the applicant has applied for certification or a permit to provide telecommunication services; the date each pending application was filed; and the disposition of all applications;

002.50C6 A detailed description of each docketed formal complaint or other investigatory or enforcement proceeding involving the business operations of applicant or any of its officers, directors, principals, partners, proprietors, shareholders, members or managers having a beneficial interest in 5% or more of applicant's voting securities, commenced within the last two (2) years showing the state where such action was brought, the date commenced, the nature of the proceeding, the substance of the complaint or proceeding, and its disposition or current status;

002.50C7 A detailed description of the services the applicant proposes to offer in Nebraska, an indication of whether the applicant intends to offer these services as a common carrier or contract carrier, whether advance payments and/or deposits will be required;

002.50C8 A description of the geographic areas within which such services will be offered;

002.50C9 A description of applicant's technical support staff, training and/or experience of personnel pertinent to its Nebraska local service operations should be provided together with such information as applicant deems appropriate which will allow the Commission to make an assessment of the technical competency of such staff;

002.50C10 A copy of applicant's last three annual financial statements to include a balance sheet, profit and loss statement, and evidence of adequate financing, together with applicant's most recent interim financial statements, certified by an independent certified public accountant. If certified financial statements are not available, applicant shall provide such information as the Commission requires to satisfy this provision. At a minimum, financial statements shall adhere to generally accepted accounting principles ((GAAP(). For purposes of determining evidence of adequate financing, the following minimum criteria shall be met:

002.50C10a A minimum positive capitalization of $200,000. Capitalization shall include all components of equity and total long and short-term debt and can include, but is not limited to, all classes of capital stock, additional paid-in capital, treasury stock, retained earnings, accumulated deficit, preferred stock, long and short-term debt;

002.50C10b Positive Working Capital. For purposes of determining working capital, working capital shall be defined as the excess of an entity(s current assets over its current liabilities.

002.50C11 A copy of the latest annual report of applicant, if available;

002.50C12 The name and business address of applicant's attorney, resident agent, or other representative to whom all communications regarding the application should be directed;

002.50C13 The name and business address of the resident agent and person to contact concerning customer complaints;

002.50C14 A copy of the certificates or permits the applicant holds in the State of Nebraska authorizing the applicant to provide telecommunications services other than local exchange services;

002.50C15 The method or methods by which the applicant proposes to provide local exchange service;

002.50C16 Information concerning the applicant's plans to provide directory assistance and operator assistance services;

002.50C17 Information concerning the provision of emergency 911 services;

002.50C18 Information concerning the provision of Telephone Relay Service; and,

002.50C19 A statement that the applicant agrees to adhere to all state laws and all Commission policies, rules, and orders.

002.50C20 A sample tariff which describes the services to be offered and which contains proposed rates, tolls, rentals, charges, classifications and rules and regulations.

002.50D Performance Bonds:

002.50D1 The Commission may, if it finds that such action is in the public interest, require an applicant, as a condition precedent to granting a certificate or permit authorizing the offering of local exchange telecommunications services, to file with the Commission a bond in such sum as the Commission may require. Such bond shall be filed with the State of Nebraska and be for the benefit of:

002.50D1a Other telecommunications companies providing access to the local exchange networks for the applicant.

002.50D1b All customers of the applicant.

002.50D2 The minimum bond should be sufficient to protect any advances or deposits the telecommunications company may collect from its customers.

002.50D3 The Commission may, for good cause shown, require such increases in the amount of such bond, from time to time, as it may deem necessary for the protection of the public. The surety on such bond must be a corporate surety company holding a certificate with the Department of Insurance of the State of Nebraska authorizing it to execute the same.

002.51 In addition to information otherwise provided to or filed with the Commission, any incumbent local exchange carrier (ILEC) that provides service in the same service territory or exchange as a competitive local exchange carrier (CLEC) with which it is affiliated shall file with the Commission information specified by this rule.

002.51A An ILEC shall file with the Commission all commercial agreements between the ILEC and its affiliated CLEC as they are made.

002.51A1 For the purposes of this rule, commercial agreements includes but is not limited to, agreements not otherwise included in and filed with the interconnection agreement between the ILEC and its affiliated CLEC.

002.51A2 For the purposes of this section, it will be sufficient if the ILEC files such agreements not later than thirty (30) days from the date such agreements are signed.

002.51B An ILEC shall file with the Commission, on an annual basis, commencing April 30, 2006, the number of resale access lines provided by the ILEC to its affiliated CLEC.

002.52 No incumbent local exchange carrier (ILEC) that provides service in the same service territory or exchange as a competitive local exchange carrier (CLEC) with which it is affiliated may engage in discriminatory practices to the favor of its affiliated CLEC.

003 INTEREXCHANGE SERVICE :

003.01 General: An interexchange carrier shall have the authority, through its certificate of public convenience and necessity or permit granted by the Commission, to provide interexchange telecommunications services subject to the provisions in this section.

003.01A The Commission shall maintain safeguards for the protection of proprietary information, included but not limited to, protective orders and limited distribution of the proprietary information.

003.01B The Commission may exempt an interexchange carrier or interexchange service from any provisions of this chapter when the Commission determines that the interexchange carrier or interexchange service is subject to competition. The Commission shall continue to exercise oversight authority over all interexchange carriers and services, and may reimpose or strengthen to the extent necessary, regulation over such services or carriers when the Commission determines such regulation is warranted.

003.01C The following subsections of the preceding section in this chapter shall apply to interexchange carriers with the terms “exchange carrier”, “access line service”, and “central office” replaced by “interexchange carrier”, “interexchange service”, and “switching office” respectively if the service is provided as a common carrier. If the interexchange service is provided as a contract carrier, the contract shall govern the terms and conditions, if any, of the subsections below apply:

002.02 Adequacy of Service

002.03 Interruptions of Service

002.05 Emergency Operations and Power

002.08 Maintenance Program

002.09 Operator Rules

002.11 Answering Time Objectives

002.15 Application for Service

002.16 Refusal of Service and Disconnection

002.17 Customer Billing

002.19 Rules Governing Credit and Deposits

002.23 Records

002.27 Transfer of Ownership of Exchange Carriers of their Properties

002.31 Rate Regulation

003.01D Common carriers providing interexchange service shall comply with Sections 003.02 through 003.11C. Contract carriers providing interexchange service pursuant to contract authority shall comply with Sections 003.02 through 003.11C unless the terms of their respective contracts provide for some alternative.

003.02 Trouble Reports:

003.02A All interexchange carriers shall comply with the provisions of Subsection 002.04 of this chapter regarding trouble reports.

003.02A1 The trouble index objectives found in part 002.04C shall not apply to interexchange carriers.

003.03 Information:

003.03A Each interexchange carrier shall, upon request, provide its customers with such information and assistance as is necessary so that they may secure the most desirable grades of service.

003.03B Each interexchange carrier shall provide customer line verification in emergencies where possible.

003.04 Tests: Each interexchange carrier shall provide or contract for test facilities which will enable determination of operating and transmission capabilities of circuit and switching equipment, either for routine maintenance or for fault location.

003.05 Trunk and Access Circuit Service Objectives:

003.05A On toll connecting trunks, a goal of sufficient quantities of trunks to be provided so that ninety-nine percent (99%) of all telephone calls offered to any trunk group will not encounter an all trunks busy condition.

003.05B Trunks shall be provided in sufficient quantities so that ninety-five percent (95%) of all toll manual calls will be completed without an all trunks busy condition.

003.05C Ninety-five percent (95%) of Direct Distance Dialed (DDD) calls, assuming they are properly dialed, shall receive a ring back signal, line busy signal or intercept facility on the first attempt after completion of dialing.

003.05D Interexchange carriers shall provide access circuits in sufficient quantities so that at least ninety-five percent (95%) of all calls offered to the interexchange carrier will not encounter an all circuits busy condition.

003.06 Transmission Requirements: Interexchange carriers shall furnish and maintain adequate plant, equipment, and facilities to provide satisfactory transmission of telecommunications. Transmission shall be at adequate volume levels and free of excessive distortion. Levels of noise and cross-talk shall be such as not to impair telecommunications.

003.07 Minimum Transmission Objectives: The transmission objectives set forth herein are based upon the use of standard telephone sets connected to a 48-volt dial central office. This does not preclude future designs based on new instruments or voltages other than 48 volts, provided that equivalent or better transmission is obtained.

003.07A Transmission loss as set forth herein means the loss that occurs in a telephone connection, measured in decibels (db) at one thousand (1000) hertz per second, exclusive of test pads, impedance matching coils used for measurement, and similar devices.

003.07B The maximum overall transmission loss objective, including the loss of terminating equipment, for toll terminating trunks shall be four (4) db. The maximum loss objective of intertoll trunks shall be consistent with the requirements of a nationwide switching plan.

003.07C Noise, as set forth herein, means noise expressed in db above reference level, with the standard C-message weighting (dbrnC) at applicable circuitry impedances. Reference level is defined as -90 dbm (minimum 90 decibels referred to one milliwatt).

003.07D The maximum noise objectives for trunks, with both terminals located within the State of Nebraska, shall be as follows:

003.07D1 Trunks of 50 miles or less in length, thirty-two (32) dbrnC.

003.07D2 Trunks between 50 and 100 miles in length, thirty-six (36) dbrnC.

003.07D3 Trunks exceeding 100 miles in length, forty (40) dbrnC.

003.08 Tariff to be Filed with the Commission: No interexchange carrier shall offer a telecommunications service to the public, except pursuant to its tariff filed with the Commission. The provisions of such tariff shall be definite and so worded as to minimize ambiguity or the possibility of misinterpretation and shall include, together with such other information as may be deemed pertinent, the following:

003.08A Definition of all classes of service provided.

003.08B Rules governing foreign exchange service (where offered) and all other service offerings together with the corresponding rates and charges.

003.09 Accounting:

003.09A For purposes of accounting to the Commission, each interexchange carrier shall be classified and shall keep its books and records in accordance with the Uniform System of Accounts as prescribed by the Federal Communications Commission.

003.09B Each interexchange carrier shall file an annual report with the Commission on or before April 30 of the succeeding year.

003.09C Each interexchange carrier filing an annual report with the Federal Communications Commission shall file a copy of same with the Commission and in addition shall file with the Commission an annual report on the form prescribed by the Commission.

003.09D Interexchange carriers operating in more than one state shall file with the Commission a supplemental annual report with segregation of investment, revenue and expense accounts and miscellaneous statistics for the State of Nebraska on the form prescribed by the Commission.

003.09E Interexchange carriers not filing an annual report with the Federal Communications Commission shall file with the Commission an annual report on the form prescribed by the Commission.

003.10 Service Area:

003.10A Each interexchange carrier shall file with the Commission a map showing each originating location.

003.10B Each interexchange carrier shall file with the Commission a map showing each terminating location.

003.10C Each interexchange carrier must file new or revised maps when originating or terminating locations identified in 003.10A and 003.10B change.

003.10D Commission acceptance or approval of a map filed pursuant to this subsection shall not preclude the Commission from thereafter determining in any appropriate proceeding the accuracy of the map filed.

003.11 Application for New Rates or Charges or Changes in Existing Rates or Charges:

003.11A New Rates: An application to establish new rates or charges or to change existing rates or charges filed pursuant to Section 75-128 R.R.S., 1943, as amended, shall be accompanied by proposed tariff sheets setting forth the proposed rates and the appropriate filing fee. An application to increase rates for interexchange service shall include the information set forth below along with such tariff sheets and filing fee. In lieu of filing proposed tariff sheets an applicant may submit a detailed rate schedule of all items to be changed including the present rate, the proposed rate, the number of units and the revenue to be produced.

003.11A1 Testimony and exhibits of all witnesses to be called in the direct case. Amendments of filed testimony and exhibits may be made only with the permission of the Commission.

003.11A2 Balance sheet and income statement or, in lieu thereof, a statement of the assets and reserves which constitute the jurisdictional rate base and net earnings statement for the test year and any adjustments thereto.

003.11A3 The latest available certified audit report.

003.11A4 The latest annual report to stockholders.

003.11A5 A summary of monthly answering time study results for the most recent 12 month period for which such information is available.

003.11A6 This Rule shall not apply to rate increases of interexchange carriers if such rate increases are intended only to pass on to customers increases in payments to municipalities, such as occupation taxes, license taxes, permits or franchise fees.

003.11B New Services:

003.11B1 New products and services identification and rate schedules will be submitted to the Commission under the proprietary information provision ten (10) days before first date of offer.

003.11B2 Service discontinuances, by item, area, customer class, etc. will be submitted to the Commission thirty (30) days before withdrawal date. The Commission will adjudge the necessity of a hearing.

003.11C Experimentation: Interexchange carriers will be allowed to implement market trials, and rate and service experiments upon ten (10) days notice.

003.12 Inter-LATA Interexchange Telecommunications Services:

003.12A Applications: Applications for a certificate or permit authorizing any telecommunications company to offer and provide inter-LATA interexchange telecommunications services shall: (a) be submitted in writing; (b) be subscribed to under oath by a duly authorized official of the applicant who possesses full power and authority to make binding representations on the applicant's behalf; (c) be accompanied by the filing fee established pursuant to Rules of Commission Procedure, Section 025; and, (d) include, to the extent pertinent to the applicant's form of organization, the following information:

003.12A1 A certified copy of applicant's articles of incorporation with all amendments.

003.12A2 If applicant is a foreign corporation, a copy of its certificate of authority to transact business in Nebraska.

003.12A3 If applicant is a partnership or a limited partnership, a copy of applicant's articles of partnership or limited partnership.

003.12A4 If applicant is a joint venture, a copy of applicant's joint venture agreement.

003.12A5 If applicant is a proprietorship, the name and business address of the proprietor.

003.12A6 The names, telephone numbers, and business addresses of each of applicant's officers, directors, general and limited partners, or joint venture members.

003.12A7 The names and business addresses of each of applicant's shareholders having a beneficial interest in 5% or more of applicant's voting securities.

003.12A8 A listing of each state in which applicant currently transacts business and a brief description of the nature and extent of the business transacted in each such state.

003.12A9 A listing of each state in which the applicant has applied for certification or a permit to provide telecommunication services; the date each such application was filed; and the disposition of each such application.

003.12A10 A detailed description of each formal complaint or other investigatory or enforcement proceeding involving the business operations of applicant or any of its officers, directors, principals, partners, proprietors, or shareholders having a beneficial interest in 5% or more of applicant's voting securities, commenced within the last two (2) years showing the state where such action was brought, the date commenced, the nature of the proceeding, the substance of the complaint or proceeding, and its disposition or current status.

003.12A11 A detailed description of the services applicant proposes to offer in Nebraska, including whether advance payments and/or deposits will be required.

003.12A12 A description of the geographic areas within which such services will be offered, showing originating points.

003.12A13 A detailed description of the communications network applicant proposes to utilize in Nebraska. If any facilities will be purchased or leased from other providers, identify the lessor(s) or vendor(s) and provide copies of the purchase and/or lease agreements. If applicant's own facilities will be utilized, describe the facilities in detail and indicate when they will be available and how they will be maintained.

003.12A14 A description of applicant's technical support staff, training and/or experience of personnel pertinent to its Nebraska operations together with such information as applicant deems appropriate to allow the Commission to make an assessment of the technical competency of such staff.

003.12A15 A copy of applicant's last three annual financial statements, to include a balance sheet and profit and loss statement, and evidence of adequate financing, certified by an independent certified public accountant, together with applicant's most recent interim financial statements, certified by applicant's chief financial officer. If certified financial statements are not available, applicant shall provide such information as the Commission requires to satisfy this provision. At a minimum, financial statements shall adhere to generally accepted accounting principles (AGAAP@). For the purposes of determining evidence of adequate financing, the following minimum criteria shall be met:

003.12A15a A Minimum Positive Capitalization of $200,000: Capitalization shall include all components of equity and total long and short-term debt and can include, but is not limited to, all classes of capital stock, additional paid-in capital, treasury stock, retained earnings, accumulated deficit, preferred stock, long and short-term debt.

003.12A15b Positive Working Capital: For purposes of determining working capital, working capital shall be defined as the excess of an entity=s current assets over its liabilities.

003.12A16 A copy of the latest annual report of applicant, if available.

003.12A17 A schedule showing investment to be made in proposed service and estimated expenses until breakeven point.

003.12A18 The name and business address of applicant's attorney, resident agent, or other representative to whom all communications regarding the application should be directed.

003.12A19 The name and business address of resident agent or person to contact concerning customer complaints.

003.12B Standards for Determination: The Commission will base its decision to approve or deny the application upon its assessment of the financial resources and the managerial and technical competency of the applicant. The Commission will deny the application of any applicant which:

003.12B1 Does not provide the information required by Rule 003.12A.

003.12B2 Fails to file any performance bond required by the Commission in accordance with the provisions of Rule 003.12E.

003.12B3 Does not possess adequate financial resources to provide the proposed service; or

003.12B4 Does not possess adequate managerial and technical competency to provide the proposed service.

003.12C Notice: The Commission shall take action to approve or issue a notice of hearing concerning any application for certification or for a permit within 30 days after receiving the application. The Commission may approve an application with or without a hearing. The Commission may deny an application only after a hearing.

003.12C1 Notice of the filing of the application will be in accordance with the provisions of Rules of Commission Procedure 011.06 and 011.08.

003.12D Protests Against Applications; When Filed: Except as provided in Rule 014.05, and unless otherwise provided in statute, a protest against the granting of an application for a certificate or permit authorizing inter-LATA interexchange telecommunications service shall be filed with the Commission within ten (10) days from the date of publication of said notice. A copy of the protest shall be served upon all adverse parties of record, or upon their attorney or attorneys of record.

003.12E Performance Bonds:

003.12E1 The Commission may, if it finds that such action is in the public interest, require an applicant, as a condition precedent to the granting of an application for a certificate or permit authorizing the offering and providing of inter-LATA interexchange telecommunications services, to file with the Commission a bond in such sum as the Commission may require. Such bond shall run to the State of Nebraska and be for the benefit of:

003.12E1a Other telecommunications companies providing access to the local exchange networks for the applicant.

003.12E1b All customers of the applicant.

003.12E2 The minimum bond must be sufficient to protect any advances or deposits the telecommunications company may collect from its customers.

003.12E3 The Commission may, for good cause shown, require such increases in the amount of such bond, from time to time, as it may deem necessary for the protection of the public. The surety on such bond must be a corporate surety company holding a certificate of the Department of Insurance of the State of Nebraska authorizing it to execute the same.

003.12F Escrow or Advance Deposits: The Commission may require that any deposit the applicant telecommunications company collects from its customers or any advances made by the customer be held in escrow or trust in a federally insured financial institution.

003.12G Rules 003.13 through 003.16D apply only to common carriers. Contract carriers providing services within the purview of these rules will provide for the terms of their service pursuant to the terms of the contract between the carrier and their customer.

003.13 Notice of a Change in a Rate List other than for Basic Local Exchange Service: Any change in a rate list under Neb. Rev. Stat. '86-803(1) (Reissue 1999) shall be effective after ten days notice to the Commission.

003.14 Effective Notice to Customers: In addition to the notice to the Commission, each telecommunications company shall notify the customers affected by an increase in a rate list. Notice to affected customers may be in any of the following forms:

003.14A Publication in a statewide or local newspaper in the area.

003.14B Included in the latest Bill.

003.14C Separate letters notifying customers of increases.

003.14D Press Release.

003.15 Statement to Commission: Within thirty days after the effective date of an increase in a rate list, the telecommunications company shall present the Commission with a signed, written statement that affected customers have been notified or are being notified and the method of notification. In the case where customers are still being notified, the statement shall include the date when notification shall be final, not to exceed sixty days after the effective date of an increase.

003.16 Operator Service: Operator service providers as defined in Section 001.01AA shall comply with all provisions of these rules applicable to interexchange carriers including, but not limited to those dealing with certification, complaints and quality of service.

003.16A Identification: All operator service providers shall identify themselves in the course of the transaction of an operator assisted call in sufficient time for a caller to terminate the call without incurring a charge.

003.16B Customer Notification: Operator service providers contracting with hotels, motels, hospitals, private pay phone owners or other such businesses are required to cause to be posted and displayed in a prominent fashion, a notice that their rates are not regulated and instructions for registering a complaint with the operator service provider. The notice shall include the carrier name, detailed complaint procedure and procedure to access another company's operator. Rates of the operator service provider shall be available to the caller upon request.

003.16C Public Safety: All operator service providers must provide adequate emergency service to callers dialing zero (0-). Absent the ability of an operator service provider to process emergency calls itself or to reroute emergency calls at all locations back to the originating local network in a timely fashion at no charge, then all 0- calls shall be directed to the local exchange carrier.

003.16D Access to Other Carriers: In order for proper billing of calls and that access to alternate long distance carriers not be denied to the end user, operator service providers must insure that a caller is able to use his or her carrier of choice for long distance service, where available. Operator service providers shall also have procedures for transferring callers on request to other carriers or instructing such callers to follow dialing procedures previously provided to the caller by the carrier of choice. Such transfer may be made only to an operator center serving the originating telephone.

003.17 Permit Required: Before any person may offer any telecommunications services as a contract carrier, such carrier must first obtain from the Commission a permit pursuant to the rules set forth herein.

003.18 Applicable Rules for Local Exchange Contract Carriers: The following subsections of Rule 002 in this chapter shall apply to contract carriers seeking to provide local telecommunications services unless the parties have agreed to different quality of service standards in their contract. Only those quality of service standards applicable to the type of service offered will be applicable. Voice grade quality standards will not be applicable to data transmission.

002.01 General

002.02 Adequacy of Service

002.03 Interruptions of Service

002.04 Trouble Reports

002.05 Emergency Operations and Power

002.07 Intercept

002.08 Maintenance Program

002.09 Operator Rules

002.10 Tests

002.11 Answering Time Objectives

002.12 Dial Service Objectives

002.13 Loop Transmission Objectives

002.16 Refusal of Service and Disconnection

002.22 Directories

002.23 Records

002.24 Accounting

002.26 Transfer of Ownership of Exchange Carriers of their Properties

002.28 Short Term Debt

002.44 Service

002.49 Certification and Permitting of Competitive Local Exchange Carrier (CLEC) except that subsections 002.49D1 through 002.49D3 shall not apply.

003.19 Applicable Rules for Interexchange Contract Carriers: The following subsections of Rule 003 shall apply to contract carriers providing or seeking to provide interexchange telecommunications services unless the parties have agreed by contractual terms to different quality of service standards. Only those quality of service standards applicable to the type of service offered will be applicable. Voice grade quality standards will not be applicable to data transmission.

003.01 General

003.02 Trouble Reports

003.03 Information

003.04 Tests

003.05 Trunk and Access Circuit Service Objectives

003.06 Transmission Requirements

003.07 Minimum Transmission Objectives

003.09 Accounting

003.12 Inter-LATA Interexchange Telecommunications Services except that subsections 003.12E and 003.12F shall not apply

003.16 Operator Service

003.20 Other Applicable Sections: In addition to the requirements otherwise identified in this Rule, all contract carriers must comply with all universal service, Lifeline, 911 and E911, wireless 911, enhanced wireless E-911 and telecommunications relay service requirements as directed by the Commission.

003.21 Application of Rules: If a common carrier is providing common carrier service, the rules applicable to common carriers shall apply. If a common carrier is providing contract service, the rules applicable to contract carriers shall apply. The service provided by each carrier shall be governed by the rules applicable to that class of carrier.

003.22 Single Permit: Any person wishing to provide telecommunications services as a contract carrier may obtain from the Commission a single permit to serve multiple customers. The permit will identify the type of service and the geographic area in which the service is to be provided. Common carriers which provide contract carrier service may provide contract carrier service to no more than twenty-five percent (25%) of the total customers it serves as a common carrier. Carriers which hold only a contract carrier permit may serve no more than five (5) customers as a contract carrier.

003.23 Certification of Contract: Each contract carrier shall file a certification of contract for each customer with whom it signs a contract to provide service. A certification shall be in such form as the Commission may direct and include, but not be limited to: (a) the date the certification was filed; (b) the name of the permit holder; (c) the permit number assigned by the Commission; (d) the type of services that will be provided under the contract; (e) the name of the customer; (f) the customer(s address; (g) the primary telephone number of the customer; h) the term of the contract; and, (i) the signature of an authorized representative of the carrier holding the permit.

004 SUBSCRIBER COMPLAINTS OF SLAMMING AND UNAUTHORIZED CHARGES :

004.01 Definitions: For purposes of this section, the definitions in Section 001.01 shall apply except that as used in this section and unless the context otherwise requires:

004.01A Slamming shall mean the unauthorized switching of a telecommunications company selected by the subscriber to provide telecommunications service.

004.01B Subscriber shall mean a person or persons, company, or lawful entity, who has the financial responsibility for the telephone service provided by a telecommunications provider.

004.02 Scope: This section shall apply to all telecommunications companies providing basic local exchange service, intra-LATA interexchange service, inter-LATA interexchange service, and any other telecommunications services to subscribers in this state, except that this section shall not apply to providers not regulated by the Commission as provided in Neb. Rev. Stat. Section 86-808 (Cum. Supp. 1998).

004.03 Authorized Change in a Subscriber’s Carrier: Except when a subscriber initiates or changes telecommunications service by contacting his or her local exchange carrier to change telecommunications service not directly provided by that local exchange carrier, no telecommunications company shall submit or execute a change in a subscriber(s provider of basic local exchange service, intra-LATA interexchange service, or inter-LATA interexchange service without:

004.03A Written change authorization from the subscriber;

004.03B Toll-free electronic authorization placed from the telephone number which is the subject of the change order; or

004.03C Oral authorization obtained by an independent third party.

004.03D A separate and distinct authorization shall be required to submit or execute a change of service for services provided to subscribers in this state.

004.04 Written Confirmation of a Subscriber Change: Within thirty (30) days after a subscriber changes his or her authorized provider of telecommunication services, the new authorized service provider shall provide to the subscriber written notice of such change. The written confirmation shall:

004.04A Describe clearly and simply the nature of the subscription change;

004.04B Not be a part of, or attached to, any other document;

004.04C Not contain any promotion, offer, or inducement; and,

004.04D Be mailed to the subscriber(s billing address.

004.05 Charges Paid by a Subscriber to an Unauthorized Carrier: If a subscriber has determined that his or her telecommunication service has been changed without the subscriber(s authorization as provided for in this section, and the subscriber has paid charges to an unauthorized carrier, the subscriber shall give notice to either the subscriber(s) authorized carrier or to the unauthorized carrier.

004.05A Upon receiving notification from the subscriber that the subscriber has paid charges to an allegedly unauthorized carrier, the properly authorized carrier shall, within thirty (30) days, request from the unauthorized carrier proof of verification of the authorization of the subscriber(s intent to change carriers.

004.05A1 Within ten days after receiving a request, the allegedly unauthorized carrier shall forward to the authorized carrier either:

004.05A1a Proof of verification of the subscriber(s authorization to change carriers; or

004.05A1b (1) An amount equal to all charges paid by the subscriber to the unauthorized carrier; (2) an amount equal to any charge required to return the subscriber to his or her properly authorized company, if applicable; and, (3) copies of any telephone bills issued from the unauthorized company to the subscriber.

004.05A2 If an authorized carrier incurs any billing and collection expenses in collecting charges from the unauthorized carrier, the unauthorized carrier shall reimburse the authorized company for reasonable expenses.

004.05B When a subscriber notifies the unauthorized carrier, rather than the authorized carrier, of an unauthorized change, the unauthorized carrier shall immediately notify the authorized carrier. The authorized carrier shall then take the steps provided for in this section.

004.05C When a subscriber notifies a local exchange carrier rather than the authorized carrier of an unauthorized change, the local exchange carrier shall immediately notify the subscriber that it must notify the authorized carrier. The local exchange carrier must provide the subscriber with the name of his or her authorized carrier when the local exchange carrier bills or has billed the subscriber for the authorized carrier. The authorized carrier shall then take the steps provided for in this section.

004.06 Remittance of Charges Paid to an Unauthorized Carrier: Upon receipt of charges paid by a subscriber from a carrier that was not authorized by the subscriber, the authorized carrier shall provide a refund or credit to the subscriber of all charges paid in excess of the charges that would have been due to the authorized subscriber absent the unauthorized change of carrier.

004.06A If an authorized carrier has not received from the unauthorized carrier an amount equal to the charges paid by the subscriber to the unauthorized carrier, the authorized carrier is not required to provide any refund or credit.

004.06B Within sixty (60) days after an authorized carrier receives notification of an unauthorized change, the authorized carrier shall notify the subscriber if it has failed to collect any charges from the unauthorized carrier. The authorized carrier shall also, at the time of this notification, inform the subscriber of his or her right to pursue a claim against the unauthorized carrier for a refund of all charges paid to the unauthorized carrier and to file an appropriate complaint with the Commission.

004.06C If an authorized carrier fails to receive proof of verification of a subscriber(s authorization to change carriers pursuant to Rule 004.05A1 within ten (10) days after sending such a request to an allegedly unauthorized carrier, or if the authorized carrier fails to collect any charges paid by a subscriber within sixty (60) days after an authorized carrier receives notification of an unauthorized change, the authorized carrier shall notify the Commission of such failure. Such notice shall include:

004.06C1 The name of the subscriber and the name of the alleged unauthorized carrier;

004.06C2 The date that the authorized carrier received notification of the unauthorized change;

004.06C3 The amount of the total charges paid by the subscriber to the unauthorized carrier; and

004.06C4 A description of the actions taken by the authorized carrier to collect the charges paid by the subscriber to the unauthorized carrier including contacts made by the authorized carrier and a copy of any correspondence or communication received from the unauthorized carrier.

004.06D Upon notice to the Commission as provided in this section, the Commission shall initiate a complaint as specified in Section 004.08.

004.07 Reinstatement of Subscriber in a Premium Program: The authorized carrier shall reinstate the subscriber in any premium program in which that subscriber was enrolled prior to the unauthorized change if the subscriber(s participation in the premium program was terminated because of the unauthorized change. For purposes of this section, a premium program shall mean any bonuses paid to a subscriber as rewards for each dollar spent on telecommunications services and may include cash benefits, refunds, or other awarded benefits such as frequent flier miles and other travel bonuses.

004.07A If reinstatement in the premium program is not possible, the authorized carrier shall so inform the subscriber of the inability of the authorized carrier to reinstate the subscriber and of the reason that reinstatement is not possible.

004.07B If the subscriber has paid charges to the unauthorized carrier, the properly authorized carrier shall also provide or restore to the subscriber any premiums to which the subscriber would have been entitled had the unauthorized change not occurred.

004.07C The authorized carrier shall comply with the requirements of this section regardless of whether the authorized carrier is able to recover from the unauthorized carrier any charges paid by the subscriber.

004.08 Enforcement: This section shall be enforced through a complaint process known as the Subscriber Slamming Complaint. In administrating a complaint, the Commission shall be governed by the procedures for a Departmental Complaint and those rules of notice, publication, service, answer and hearing as provided in Title 291, Chapter 1, Rules of Commission Procedure, except as herein described:

004.08A A complaint with the Commission shall be filed by the subscriber(s authorized carrier section where the authorized carrier has given notice to the Commission pursuant to section 004.06D.

004.08B A complaint may be filed in accordance with this section by:

004.08B1 An authorized carrier who has notice of an unauthorized change;

004.08B2 A subscriber who had his or her telecommunications services carrier changed without his or her authorization; or

004.08B3 The Commission, on its own motion.

004.08C Within twenty (20) days of receipt of an answer to a complaint filed pursuant to this section, the Commission shall hold a hearing. After such hearing, the Commission may impose an administrative penalty.

004.08C1 An administrative penalty shall not exceed two thousand dollars ($2,000). Each violation associated with a specific access line within the state shall be considered a separate and distinct violation.

004.08C2 The amount of an administrative penalty shall be based on:

004.08C2a The nature, circumstances, extent, and gravity of a prohibited act;

004.08C2b The history of previous violations;

004.08C2c The amount necessary to deter further violations; and

004.08C2d Any efforts to correct the violation or violations.

004.08C3 Any administrative penalty may be appealed and the appeal shall be in accordance with Neb. Rev. Stat. Sections 75-136 to 75-139.

004.08C4 Any administrative penalty shall be transmitted to the State Treasurer for credit to the permanent school fund.

004.09 Records: All telecommunication carriers subject to this section shall maintain all relevant records regarding any change in a subscriber(s telecommunications carrier for a period not less than two (2) years. The Commission shall at all times have access to all records kept by carriers pursuant to this section.

004.10 Subscriber Complaint System: The Executive Director of the Commission shall administer a subscriber complaint system to record, monitor and report on all complaints received regarding the unauthorized change of a subscribers( telecommunications carrier. An annual reporting shall be incorporated into the Commission(s annual report.

004.11 Performance Standards: The Executive Director shall provide the Commission, at least once a month at a regularly scheduled meeting of the Commission, with a separate report detailing all of the complaints received by the Commission regarding the unauthorized change of a subscriber’s telecommunications carrier. The report shall include a listing of the complainant, name of the subscriber, subscriber(s authorized telecommunications carrier, alleged unauthorized carrier, date of the unauthorized change, duration, if known, of the unauthorized change, and any resolution of the complaint, if applicable.

004.11A The Director of Communications shall report to the Commission, at a regularly scheduled meeting of the Commission, any carrier who has failed to meet minimum performance standards for the prior three (3) month period beginning with the period ending August 31, 1999.

004.11B Minimum performance standards shall mean, for the purposes of this section, that the number of complaints against the carrier shall not exceed three (3) verified complaints per three (3) month period for every ten thousand (10,000) accounts held by the carrier within the state.

004.11C The Commission may, upon its own motion, initiate a complaint against any carrier that fails to meet the minimum performance standards. Such complaint shall be filed only upon those verified instances of an unauthorized change of carrier that has not been previously and separately prosecuted as a complaint pursuant to this section.

004.12 Unauthorized Charges: No telecommunications carrier shall initiate or bill additional telecommunications services to a subscriber for services not required by Commission regulation, state statute, or federal law or regulation for which the subscriber did not explicitly request or authorize.

004.12A If a charge is assessed on a per-use basis for a telecommunications service not required by rule, regulation or law and for which the subscriber did not request or authorize, and the subscriber notifies the providing carrier that the subscriber did not utilize the service or that the subscriber did not authorize the utilization of the service, the providing carrier shall refund the charge or apply the charge as a credit to the next billing period.

004.12B If a providing carrier receives a notification by a subscriber that he or she has been billed for a service not required by rule, regulation or law nor authorized or requested by the subscriber, the carrier shall inform the subscriber of the ability to block services from future use by the subscriber and shall block the services from future use by the subscriber if the subscriber so requests.

004.12B1 If a subscriber requests that the carrier not block the service or later requests that the block on the service be removed, the subscriber shall be responsible for similar charges for similar services caused by the future utilization of such a service.

004.12B2 A telecommunications carrier shall not charge a recurring fee for blocking for a service as provided in this section.

005 ENHANCED WIRELESS 911 SERVICES : Moved to Title 291, Chapter 15

006 NEBRASKA INTERNET ENHANCEMENT FUND PROGRAM :

006.01 Statutory Authority: This section is adopted pursuant to 2001 Laws Neb. 827.

006.02 Definitions: As used in this section, unless the context otherwise requires, the following definitions apply:

006.02A Advanced telecommunications capability shall mean highspeed, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology.

006.02B Commission shall mean the Nebraska Public Service Commission.

006.02C Eligible service provider shall mean an entity certificated, permitted or otherwise legally authorized to provide telecommunications, video, internet or other related services.

006.02D Fund shall mean the Nebraska Internet Enhancement Fund created pursuant to 2001 Laws Neb. 827.

006.03 Purpose of the Fund: The Fund shall be used to provide financial assistance to install and deliver broadband or other advanced telecommunications infrastructure and service throughout the State.

006.04 Contents of the Fund: The Fund shall consist of money appropriated by the Legislature and gifts, grants, or bequests from any source, including federal, state, public, and private sources.

006.05 Grants from the Fund: Any county or municipality in the state may apply for financial assistance from the Fund. An applicant may obtain a service provider for broadband or other advanced telecommunications services in an exchange or other area defined by the county or municipality where such services are to be delivered at rates of service agreed upon between the service provider and county or municipality.

006.06 Priorities for Grants: Highest priority shall be given to applications based on high-cost factors, including population scarcity and location remoteness. Other factors, including financial need, may be considered by the Commission as deemed necessary.

006.07 Application Requirements: The Commission may develop application forms and may require use of such forms for any application. The application shall state the projected cost, identify the service provider, describe the process for selection of the service provider, list terms and considerations of any agreement between the applicant and the service provider, and include other information as required by the Commission.

006.08 Eligibility: A service provider must be an eligible service provider.

006.09 Matching Funds Requirement: An applicant must provide matching funds of at least twenty-five percent of the total projected cost. Such funds may be public or private matching funds or in-kind services. The value of in-kind services shall be calculated at the standard or market rate.

006.10 Public Records: Project proposals are public records.

006.11 Audits: The Commission may, at its own expense, require an audit of any project funded by an award from the Fund. The Commission shall have access to the financial records for funded projects of all grantees for a period of five fiscal years after the conclusion of the project period. For purposes of this section, a fiscal year is July 1 through June 30.

006.12 Termination of a Project: Prior to completion, a project may be terminated by a grant recipient or the Commission. Such termination requires written notice to all other parties to the project. All unexpended and unencumbered funds must be returned on the date of the receipt of the termination notice.

006.12A Termination by Applicant: An authorized representative of an applicant, as designated by the grant recipient in the initial application or as amended in writing, may terminate a grant at any time. Such termination request must be in writing and will become effective when received by the Executive Director of the Commission.

006.12B Termination by Commission: A grant may be terminated by the Commission when the Commission determines that the grant activities are outside the approved application, conditions of the grant are not met, there is fraud or fiscal mismanagement, or there is lack of adequate funding. In the event the Commission proposes to terminate grant funding, it shall provide the authorized applicant representative of the grant recipient written notice of the reasons for such action and an opportunity for hearing. Any such hearing shall be conducted by the Commission pursuant to Rules of Commission Procedure. All requests for hearing must be filed with the Commission within 30 days of the authorized applicant representative=s receipt of the proposal to terminate. If no such request for a hearing is filed, the Commission may take final action to terminate the grant at the next regularly scheduled Commission meeting without further proceedings before the Commission.

006.13 Grant Award Notification: Distributions from the Fund shall be made upon order of the Commission. The complete terms of a grant shall be contained in a written contract signed by authorized representatives or the grant recipient, including evidence of approval by the applicant=s governing board.

006.14 Failure of Terms and Conditions: If grantees fail to meet any terms and conditions of the grant award notification or any requirements of this rule, the grantees may be required to reimburse the Nebraska Internet Enhancement Fund for any and all funds disbursed to the project and forfeit any additional funds not yet disbursed.

006.15 Nebraska Internet Enhancement Fund Advisory Board: The Commission may appoint an advisory board to assist the Commission in carrying out the purposes of the Nebraska Internet Enhancement Fund Program.

006.15A The advisory board shall be composed of seven individuals appointed by the Commission, including:

006.15A1 Two representatives of local government, either county or municipal;

006.15A2 One person employed in the field of economic development;

006.15A3 Two representatives of local exchange carriers;

006.15A4 One Internet service provider; and

006.15A5 One Commissioner or his or her designee.

006.15B The advisory board shall have the following responsibilities:

006.15B1 Assist in setting guidelines for grants;

006.15B2 Review grant applications and recommend amount of funding for each grant application;

006.15B3 Prioritize distributions of grants; and

006.15B4 Recommend regulatory or legislative changes to the Commission regarding the administration and distribution Fund.

007 DARK FIBER LEASING :

007.01 Statutory Authority: This section is adopted pursuant to 2001 Laws Neb. 827.

007.02 Definitions: As used in this section, unless the context otherwise requires, the following definitions apply:

007.02A Applicant means a party filing an application.

007.02B Commission means the Nebraska Public Service Commission.

007.02C Cost of infrastructure overbuilding means the cost of each leased optic fiber, including the cost, on a pro rata basis, associated with the agency or political subdivision(s installation of such fiber.

007.02D Dark fiber means any unused fiber optic cable through which no light is transmitted or any installed fiber optic cable not carrying a signal.

007.03 Lease: Any agency or political subdivision of the state may lease its dark fiber if:

007.03A The lessee is a certificated telecommunications common carrier or a permitted telecommunications contract carrier pursuant to Nebraska Revised Statutes section 75-604 or an Internet service provider; and

007.03B The lease price and profit distribution is approved by the Commission as provided by Commission rules and regulations.

007.04 Application Process: Before entering into a lease, an agency or political subdivision must:

007.04A File an application with the Commission pursuant to the Nebraska Administrative Code, Title 291, Chapter 1, Rules of Commission Procedure, Section 005.02.

007.04A1 In addition to requirements of the Nebraska Administrative Code, Title 291, Chapter 1, Rules of Commission Procedure, Section 005.02, an application shall include:

007.04A1a A request for a competitive price comparison to determine market rate, and

007.04A1b A request for determination of the cost of infrastructure overbuilding.

007.04A2 At the discretion of the applicant, the applicant may propose a lease price and a profit distribution in the application.

007.04A3 Notice of the filing of all applications pursuant to this section shall be given by publication pursuant to Nebraska Administrative Code, Title 291, Chapter 1, Rules of Commission Procedure.

007.05 Protest, Intervention: Any protest or formal intervention to an application shall be made pursuant to Nebraska Administrative Code, Title 291, Chapter 1, Rules of Commission Procedure.

007.06 Competitive Price Comparison and Cost of Infrastructure Over-building Determination: The Commission shall hold a public hearing (a) to conduct a competitive price comparison to determine the market rate for leasing dark fiber and (b) to determine the cost of infrastructure overbuilding.

007.06A The market rate is the price associated with similar unbundled network elements that may be available from the incumbent local exchange carrier or the price of any other private entity leasing dark fiber optic facilities serving the same or similar territory where the leased equipment is located.

007.06B When conducting a competitive price comparison, the Commission in its discretion shall use rate schedules, interconnection agreements, or other documents within its regulatory oversight and shall gather other market rate information as deemed necessary.

007.06C The agency or political subdivision that owns the fiber shall provide the Commission with documentation of its cost of infrastructure overbuilding.

007.07 Order: The Commission shall enter an order setting the market rate and cost of infrastructure overbuilding to be applied to the lease for which the application was made, and, if the application proposed a lease price and a profit distribution, the Commission shall approve or deny the lease price and profit distribution.

007.07A Proposed Lease Price and Profit Distribution in Application Disapproved; Amended Lease Price and Profit Distribution: If the application included a proposed lease price and profit distribution, and the Commission did not approve the lease price and profit distribution, or, if the applicant elected not to propose a lease price and profit distribution in its application, the following process shall apply:

007.07A1 The applicant shall file a revised lease price and profit distribution that comports with the Commission’s order setting the market rate and cost of infrastructure overbuilding. The applicant shall serve notice of such filing upon all protestants and intervenors.

007.07A2 The Commission shall approve or deny the lease price and profit distribution by entering an order.

007.08 Modified Procedure for Subsequent Leases by an Applicant: A party, having obtained approval of a lease price and profit distribution, may seek to apply the same lease price and profit distribution to subsequent leases in the same or similar territory within two years of the original order establishing lease price and profit distribution. The application and notification shall conform to the process set forth at Title 291, Chapter 5, Section 007.04 and shall include a sworn affidavit verifying that the applicant(s cost of infrastructure overbuilding has not changed since the original proceeding. Protest or intervention shall not be permitted. The Commission shall conduct a competitive price comparison to determine the market rate and shall determine the cost of infrastructure overbuilding within 30 days from the publication of notice of the application. The Commission shall conduct a competitive price comparison and determine the cost of infrastructure overbuilding either (1) by use of sworn affidavits from the applicant and from Commission staff or (2) by holding a public hearing.

07.09 Lease Requirements: The following shall be required in order for the Commission to approve a lease of dark fiber:

007.09A Fiber Maintenance: A lease shall require that the agency or political subdivision be solely responsible for the maintenance of its dark fiber and that the lessee be responsible, on a pro rata basis, for any such maintenance costs.

007.09B Disposition of Profits: Fifty percent of the profit earned by the agency or political subdivision under the lease shall be remitted to the Nebraska Internet Enhancement Fund.

007.09B1 Profit earned by the agency or political subdivision is the lease price less the cost of infrastructure overbuilding.

007.09B2 The agency or political subdivision may remit profits using forms or methods which may be developed by the Commission.

007.09B3 Each payment by the lessee under any dark fiber lease approved by the Commission shall be comprised of both cost of infrastructure overbuilding and profit. The ratio of cost of infrastructure overbuilding to profit shall be the same for each payment. Profits must be remitted within 60 days of receipt of payment pursuant to a lease.

007.10 Approval of Interconnection Agreements: Any interconnection agreement subject to subsection (2) of section 75-109 must be approved by the Commission.

007.11 Dark Fiber Activation: The lessee shall make every reasonable effort to activate the maximum number of the leased fiber as is possible, within one year of entering into the lease, unless good cause is shown.

007.11A The lessee shall report to the Commission its efforts to activate dark fiber within one year of the Commission=s approval of a lease price and profit distribution.

008 WIRELESS REGISTRATION :

008.01 Statutory Authority: This section is adopted pursuant to 2001 Laws Neb. 1211.

008.02 Definitions: As used in this section, unless the context otherwise requires:

008.02A Commission: The Nebraska Public Service Commission.

008.02B Person: Any individual, firm, organization, corporation, company, association, partnership, joint stock association, body politic, common carrier, society, legal representative, trustee, receiver, assignee, guardian, executor, or administrator.

008.02C Telecommunications: The transmission, between or among points specified by the subscriber, or information of the subscriber=s choosing, without a change in the form or content of the information as sent or received.

008.02D Telecommunications Service: The offering of telecommunications for a fee.

008.02E Wireless Carrier: Any person offering mobile radio service, radio paging service, or wireless telecommunications service for a fee in Nebraska intrastate commerce.

008.03 Registration:

008.03A Registration Required: A wireless carrier providing telecommunications service in Nebraska shall file a registration with the Commission. A wireless carrier which provided such telecommunications service prior to January 1, 2003, and which continues to provide such telecommunications service on and after January 1, 2003, shall register with the Commission prior to April 1, 2003. Any wireless carrier which begins to provide telecommunications service in Nebraska on or after January 1, 2003, shall register with the Commission prior to providing such telecommunications service.

008.03B Registration Form: The registration shall be on a form prescribed by the Commission, incorporated herein at the end of the chapter and labeled as Attachment #1. Each wireless carrier is required to remit an initial application fee of fifty dollars ($50.00) with the registration form.

008.03C Information Required: At a minimum, each wireless carrier must provide the following information:

008.03C1 The name, address, telephone number, and email address of a contact person whom the Commission may contact concerning questions or requirements of the Nebraska Telecommunications Universal Service Fund Act and related surcharges, if applicable;

008.03C2 The name, address, telephone number, and email address of a contact person whom the Commission may contact concerning questions or requirements of the Telecommunications Relay System Act and related surcharges, if applicable;

008.03C3 The name, address, telephone number, and email address of a contact person whom the Commission may contact concerning questions or requirements of the Neb. Rev. Stat. sections 86-2201 to 86-2214 and related surcharges, if applicable; and

008.03C4 The name, address, telephone number, and email address of a contact person whom the Commission may contact concerning consumer complaints and inquiries;

008.04 Changes in Information Contained in Registration: The registrant shall notify the Commission of any changes in the information contained in its registration within sixty (60) days from such change. No additional filing fee will be required for changes in information pursuant to this section.

008.05 Enforcement:

008.05A Investigation: The Commission may conduct an investigation upon written complaint that Neb. Rev. Stat. section 86-125 (2002 Cum. Sup.) or section 008 of these rules or regulations have been, or are being violated. Any such investigation shall be conducted in accordance with the Rules of Commission Procedure provided in Nebraska Administrative Code, Title 291, Chapter 1.

008.05B Administrative Penalty: The Commission, in accordance with Neb. Rev. Stat. section 75-156(2) and upon notice and hearing, may administratively fine any wireless carrier which violates these rules and regulations or Neb. Rev. Stat. section 86-125 (2002 Cum. Sup.).

009 ELIGIBLE TELECOMMUNICATIONS CARRIER :

009.01 An eligible telecommunications carrier that receives federal universal service support shall use that support only for the provision, maintenance, and upgrading of facilities and services for which the support is intended.

009.02 Requirements for Commission designation of eligible telecommunications carriers:

009.02A In order to be designated an eligible telecommunications carrier, any common carrier in its application must:

009.02A1 Demonstrate that such designation is consistent with the public interest, convenience, and necessity, and, in the case of an area served by a rural telephone company, demonstrate that public interest will be met by an additional designation;

009.02A2 Demonstrate that it will offer the services that are supported by federal universal service support mechanisms and section 254(c) of the Act, either using its own facilities or a combination of its own facilities and resale of another carrier's services (including the services offered by another eligible telecommunications carrier);

009.02A3 Demonstrate that it will advertise the availability of such services and the charges therefore using media of general distribution;

009.02A4 Demonstrate that it is capable of providing and will continuously provide the services designated for support as defined in 47 C.F.R. Section 54.101;

009.02A5 Commit to provide service throughout its proposed designated service area to all customers making a reasonable request for service. Each applicant shall certify that it will:

009.02A5a Provide service on a timely basis to requesting customers within the applicant’s service area where the applicant’s network already passes the potential customer’s premises; and

009.02A5b Provide service within a reasonable period of time, if the potential customer is within the applicant’s licensed service area but outside its existing network coverage, if service can be provided at reasonable cost by (a) modifying or replacing the requesting customer’s equipment; (b) deploying a roof-mounted antenna or other equipment; (c) adjusting the nearest cell tower; (d) adjusting network or customer facilities; (e) reselling services from another carrier’s facilities to provide service; or (f) employing, leasing or constructing an additional cell site, cell extender, repeater, or other similar equipment;

009.02A6 A carrier seeking high cost support shall submit a five-year plan that describes with specificity proposed improvements or upgrades to the applicant’s network on a wire center-by-wire center basis throughout its proposed designated service area. Each applicant shall demonstrate how signal quality, coverage or capacity will improve due to the receipt of high-cost support; the projected start date and completion date for each improvement and the estimated amount of investment for each project that is funded by high-cost support; the specific geographic areas where the improvements will be made; and the estimated population that will be served as a result of the improvements. If an applicant believes that service improvements in a particular wire center are not needed, it must explain its basis for this determination and demonstrate how funding will otherwise be used to further the provision of supported services in that area;

009.02A7 A carrier seeking high cost support shall demonstrate its ability to remain functional in emergency situations, including a demonstration that it has a reasonable amount of back-up power to ensure functionality without an external power source, is able to reroute traffic around damaged facilities, and is capable of managing traffic spikes resulting from emergency situations;

009.02A8 A carrier seeking high cost support shall demonstrate that it will satisfy applicable consumer protection and service quality standards;

009.02A9 A carrier seeking high cost support shall demonstrate that it offers a local usage plan comparable to the one offered by the incumbent LEC in the service areas for which it seeks designation; and

009.02A10 A carrier seeking high cost support shall certify that the applicant acknowledges that the Federal Communications Commission may require it to provide equal access to long distance carriers in the event that no other eligible telecommunications carrier is providing equal access within the service area.

009.02B Public Interest Standard: In addition to the information described above, in the case of an applicant seeking designation in an area served by a rural telephone company, the Commission will consider the benefits of increased consumer choice, and the unique advantages and disadvantages of the applicant’s service offering.

009.02C Study Area Level: In instances where an eligible telecommunications carrier applicant seeks designation below the study area level of a rural telephone company, the Commission shall also conduct a creamskimming analysis.

009.03 Any common carrier that has been designated by this Commission as an eligible telecommunications carrier must submit the information required by paragraph 009.02A6 and 009.02A7 of this section no later than October 1, 2006.

009.04 Annual Reporting Requirements for Designated Eligible Telecommunications Carriers:

009.04A A common carrier designated as an eligible telecommunications carrier for high cost support shall provide:

009.04A1 A progress report on its five-year service quality improvement plan, including maps detailing its progress towards meeting its plan targets, an explanation of how much universal service support was received and how it was used to improve signal quality, coverage, or capacity, and an explanation regarding any network improvement targets that have not been fulfilled. The information shall be submitted at the wire center level;

009.04A2 Detailed information on any outage as the term is defined by these rules, of at least 30 minutes in duration for each service area in which an eligible telecommunications carrier is designated for any facilities it owns, operates, leases, or otherwise utilizes that potentially affect (a) at least ten percent of the end users served in a designated service area; or (b) a 911 special facility, as defined in 47 C.F.R. § 4.5(e). Specifically, the eligible telecommunications carrier’s annual report must include information detailing: (a) the date and time of onset of the outage; (b) a brief description of the outage and its resolution; (c) the particular services affected; (d) the geographic areas affected by the outage; (e) steps taken to prevent a similar situation in the future; and (f) the number of customers affected;

009.04A3 The number of requests for service from potential customers within the eligible telecommunications carrier’s service areas that were unfulfilled during the past year. The carrier shall also detail how it attempted to provide service to those potential customers;

009.04A4 The number of complaints per 1,000 handsets or lines;

009.04A5 A certification that it is complying with applicable service quality standards and consumer protection rules;

009.04A6 A certification that the carrier is able to function in emergency situations as set forth in § 54.201(a)(2) and any applicable Commission rules;

009.04A7 A certification that the carrier is offering a local usage plan comparable to that offered by the incumbent LEC in the relevant service areas; and

009.04A8 A certification that the carrier acknowledges that the Federal Communications Commission may require it to provide equal access to long distance carriers in the event that no other eligible telecommunications carrier is providing equal access within the service area.

009.04B Filing Deadlines: In order for a common carrier designated as an eligible telecommunications carrier to continue to receive support for the following calendar year, or retain its eligible telecommunications carrier designation, it must make an election by April 30, 2006 or during the first year it receives an eligible telecommunications carrier designation, to submit the annual reporting information in this section either on April 30 or October 1 of each year. An eligible telecommunications carrier electing to file on April 30 shall submit its reporting information on April 30, 2006 and thereafter annually by April 30 of each year. An eligible telecommunications carrier electing to file its report with the Commission on October 1 shall submit its reporting information on October 1, 2006 and thereafter annually by October 1 of each year. Commission approval is required if a carrier requests to change its reporting deadline.

010 NEBRASKA TELECOMMUNICATIONS RELAY SYSTEM :

010.01 Purpose: Provide a statewide telecommunications relay system and a statewide voucher program for the provision of specialized telecommunications equipment for qualified deaf, hard of hearing, or speech-impaired persons in Nebraska which enables them to communicate twenty-four (24) hours per day, seven (7) days per week, including holidays, with other persons who use conventional telephone systems.

010.02 Statutory Authority: This section is adopted pursuant to the Telecommunications Relay System Act.

010.03 Scope: Any person using NTRS shall not be charged for access to such system other than charges billed for in-state and out-of-state long-distance telephone service. NTRS shall at a minimum provide state-wide in-state calls with charges for long-distance calls billed to the person making the call in a manner which the Commission determines will recover the cost of long-distance calls to the system; out-of-state calls with charges billed to the person making the call; and emergency calls.

010.04 Commission Authority: Procedures involving the administration of NTRS shall be governed by the Nebraska Telecommunications Relay System Rules and the Rules of Commission Procedure unless otherwise prescribed by order of the Commission. The Commission may enter into contracts with other agencies or private organizations to operate NTRS and NSTEP.

010.04A Administrative Fines: The Commission may administratively fine pursuant to Neb. Rev. Stat. Section 75-156 any person who violates the Act.

010.05 Forms: The Commission will specify, by order, the manner in which information shall be filed with the Commission. Upon a showing of good cause, the Program Administrator may accept information filed in a manner other than prescribed in a Commission order.

010.06 Telecommunications Relay Surcharge: Each telephone company and provider of wireless service in Nebraska shall collect from each of the telephone subscribers with a surcharge not to exceed twenty (20) cents per month on each telephone number or functional equivalent in Nebraska, including wireless service.

010.06A Exemption: The surcharge authorized by this section shall not apply to prepaid wireless telecommunications services as defined in the Prepaid Wireless Surcharge Act.

010.06B Relay Surcharge Shown on Subscriber Bills: The surcharge shall appear as a separate line-item charge on the subscriber’s billing statement and shall be labeled as “Telecomm Relay Surcharge” or “Relay Surcharge”.

010.06C Annual Surcharge Rate Determination:

010.06C1 Public Hearing: Before April 1 of each year the Commission shall hold a public hearing to determine the amount of surcharge necessary to carry out the provisions of the Act.

010.06C2 Rate: After such hearing as required in Section 010.06B1, the Commission shall set the surcharge at the level necessary to fund the statewide NTRS and NSTEP for the following year plus a reasonable reserve.

010.06C3 Effective Dates: The surcharge set pursuant to 010.06B1 and 010.06B2 shall become effective for the next fiscal year beginning July 1.

010.06C4 Limitation: The surcharge rate shall not exceed twenty cents (0.20) per month on each telephone number or functional equivalent in Nebraska, including wireless service. Except for wireless service, the surcharge shall only be collected on the first one hundred (100) telephone numbers or functional equivalent per subscriber. The companies shall add the surcharge to each subscriber’s local telephone bill.

010.06C5 Emergency Rate Setting: In an emergency the Commission may adjust the amount of the surcharge after a public hearing for such purpose.

010.06D Nebraska Telecommunications Relay System Fund: The fund shall consist of the surcharges credited to the fund, any monies appropriated by the Legislature, any federal funds received for telecommunications relay systems, and any other funds designated for credit to the fund.

010.07 Remittance:

010.07A Remittance Worksheets: Remittance worksheets shall be received by the Department no later than thirty (30) days after the end of the remittance period. In the event the thirtieth (30th) day falls on a weekend or holiday, the remittance form shall be due on the next business day.

010.07B Filing Options:

010.07B1 Monthly: Telephone companies and providers of wireless service shall remit the TRS surcharge on a monthly basis to the TRS Fund except as provided in sections 010.07B2 and 010.07B3.

010.07B2 Quarterly: A telephone company or provider of wireless service whose monthly remittance amount is less than twenty-five dollars ($25) may elect to remit on a quarterly basis.

010.07B3 Annually: A telephone company or provider of wireless service whose monthly remittance amount is less than twenty-five dollars ($25) may elect to remit on an annual basis. The period for annual remittances shall run July 1 through June 30, with the surcharge remittance due on July 30 annually.

010.07B4 Filing Election: A telephone company or provider of wireless service whose monthly remittance amount is less than twenty-five dollars ($25) must notify the Commission in writing of its election to remit quarterly or annually prior to the remittance period.

010.07C Remittance to the Fund: Except as provided in Rule 010.07C1, all remittances shall be transferred electronically to the Nebraska State Treasurer. Remittances shall be received by the Nebraska State Treasurer no later than thirty (30) days after the end of the remittance period in which they were collected pursuant to the period prescribed or elected pursuant to section 010.07B, as applicable. In the event the thirtieth (30th) day falls on a weekend or holiday, the electronic remittance shall be due on the next business day.

010.07C1 Department Initiated Remittances: A telephone company or provider of wireless service may elect to have the Department initiate the electronic transfer of such company’s remittance to the Fund.

010.07C2 Authorization and Banking Information: A telephone company or provider of wireless service electing to have the Department initiate the electronic transfer of remittance to the Fund shall provide the necessary authorization and banking information required by the Program Administrator.

010.07C3 Initiation of Transfer: The receipt of a telephone company or provider of wireless services’ remittance worksheet will result in the Department’s initiation of the electronic transfer of the telephone company’s or provider of wireless services’ remittance to the Fund if the appropriate indication is made on said remittance worksheet. Said electronic transfer will be done in accordance with authorization granted to the Department by the company or provider of wireless services.

010.07D Remittance by Commission: The Commission shall remit the proceeds from the surcharge to the State Treasurer for credit to the Fund.

010.07E Audits: The Commission may require an audit of any telephone company collecting the surcharge pursuant to the Act.

010.08 Adequacy of Service:

010.08A The vendor shall ensure that, except during network failure, at least ninety percent (90%) of all calls are answered by the relay center within ten (10) seconds from the time the call enters the TRS system during all times of the day and at least ninety-five percent (95%) of all calls are answered within ten (10) seconds for the month by any method which results in the caller’s call immediately being placed, not put in a queue or on hold.

010.09 Directory Requirements: Telephone companies shall provide printed information in telephone directories at no charge regarding relay services.

010.09A Required Information: The information listed in telephone directories shall contain information on the following:

010.09A1 Connecting to the relay, including a reference to 711 dialing;

010.09A2 Access numbers, including but not limited to TTY, Voice, ASCII, Fast ASCII, Speech to Speech, Spanish and Customer Service;

010.09A3 A reference to the NSTEP program including contact numbers for the PSC and the Nebraska Commission for the Deaf and Hard of Hearing and application information.

010.10 Notification: Telephone companies shall inform their subscribers of the availability of relay services through a bill insert or other prominent bill message on an annual basis.

010.11 Nebraska Specialized Telecommunications Equipment Program (NSTEP):

010.11A Eligibility: To qualify for NSTEP applicants must meet ALL of the following eligibility requirements:

010.11A1 Applicant is deaf, hard of hearing, speech-impaired, or dual-disabled and as a result of such impairment is unable to use a conventional telephone effectively.

010.11A2 Applicant is at least three (3) years of age or older and able to demonstrate the requisite skill to operate STE.

010.11A3 Applicant currently has telephone service or has applied for telephone service in the state of Nebraska at their primary place of residence.

010.11A4 Applicant is a resident of the state of Nebraska.

010.11A5 Applicant has not applied for NSTEP within the past five (5) years.

010.11A6 At the time of application, no other resident of applicant’s household has STE in his or her possession.

010.11A7 Applicant has obtained a professional certification of the qualifying disability or disabilities as prescribed by the Commission.

010.11B Equipment Selection: Except as provided in Section 010.11C, applicants may only choose one piece of STE and/or one telephone signaling device per household. A list of eligible equipment categories may be obtained from the Commission upon request.

010.11C Dual-Disabled Applicants: Dual-Disabled applicants desiring specialized equipment with further adaptive equipment for dually-disabled individuals shall complete a supplemental application form including certification from a qualified profession of applicant’s dual-disability status and need for further adaptive equipment. Supplemental applications shall be available from the Commission upon request.

010.11D Voucher Procedure:

010.11D1 Once the Program Administrator receives a completed application form and verifies that all eligibility requirements have been met, the Program Administrator will issue a NSTEP voucher.

010.11D2 Applicant, or in the case of a minor, applicant’s parent or guardian, shall sign the NSTEP voucher on line marked “Applicant’s Verification.”

010.11D3 Applicant shall deliver the signed voucher to the vendor from whom the applicant is purchasing the STE.

010.11E Reapplying: Reapplication for NSTEP is allowed only when one of the following requirements is satisfied.

010.11E1 Applicant has not received any STE in the five years previous to the date on the current application.

010.11E2 Applicant’s medical condition has changed to such an extent that different equipment is required. Special approval is required to reapply under this section from the Nebraska Commission for the Deaf and Hard of Hearing.

010.11E3 The Commission or Program Administrator may waive the requirements of section 010.11E1 upon a showing of need by the applicant or upon request from the Nebraska Commission for the Deaf and Hard of Hearing.

010.11F Vendors:

010.11F1 Participating Vendors: Only vendors recognized by the Commission as “Participating Vendors” will be eligible for reimbursement under NSTEP.

010.11F2 Application Process: Any Vendor desiring to be recognized as a Participating Vendor in NSTEP shall submit the following: a completed application form; a return and exchange policy statement; a price list; and a statement that the vendor has read and agrees to adhere to the Commission’s Rules and Regulations governing NSTEP. Participating Vendor application forms shall be available from the Commission upon request.

010.11F3 Approved Equipment List: The Commission shall maintain an approved equipment list that will be made available upon request. Vendor invoices submitted for payment of equipment not on the approved equipment list will not qualify for reimbursement.

010.11F4 Payment Authorization: Except as provided in Section 010.11F8, payment for equipment submitted under NSTEP shall be subject to the maximum allowable expense per applicant as determined by the Commission. Any costs incurred by the applicant in excess of the maximum allowable expense per applicant are the responsibility of the applicant. Setup costs shall not be included in the calculation of the maximum allowable expense per applicant.

010.11F5 Product Knowledge: Vendors shall maintain reasonable knowledge of all products being offered that qualify for reimbursement under NSTEP.

010.11F6 Vendor Payment: To receive payment under NSTEP, vendors shall submit voucher forms received from applicants along with an itemized invoice of applicant’s purchase(s) to the Commission.

010.11F7 Setup Costs: If the applicant requests setup services from the vendor, the vendor may request reimbursement for the actual setup costs from NSTEP. The vendor may submit the actual costs of setup to the Commission on the same invoice as the equipment sale.

010.11F8 Special Authorization: If the applicant is determined to be dually-disabled, the maximum allowable expense per applicant pursuant to Section 010.11F4 does not apply.

010.11G Applicant Responsibilities:

010.11G1 Maintenance: Any costs for general and regular servicing or maintenance of equipment purchased under NSTEP is the responsibility of the applicant.

010.11G2 Repairs: Any costs for repair of equipment purchased under NSTEP, regardless of whether said equipment is under warranty, is the responsibility of the applicant.

010.11G3 Warranties, Extended Warranties: Any costs associated with warranty provisions for repairs of any equipment purchased under NSTEP is the responsibility of the applicant. Any costs associated with purchasing warranties and/or extended warranties on equipment purchased under NSTEP are the responsibility of the applicant.

010.11G4 Structural Modifications: Any costs associated with structural modifications of existing structures necessary for NSTEP equipment operation is the responsibility of the applicant.

010.12 Telecommunications Relay System Advisory Committee: The Commission shall solicit advice on the administration of NTRS from the Telecommunications Relay System Advisory Committee. Such Committee shall be formed pursuant to the Act.

011 RESERVED FOR FUTURE USE

012 RESERVED FOR FUTURE USE

013 TELECOMMUNICATION LINES, WIRES, OR CABLES CROSSING RAILROAD RIGHT-OF-WAYS :

013.01 Definitions: For purposes of this section, the definitions in Section 001.01 shall apply except that as used in this section and unless the context otherwise requires:

013.01A Railroad carrier has the same meaning as in Neb. Rev. Stat. Section 75-402.

013.01B Railroad has the same meaning as in Neb. Rev. Stat. Section 75-402.

013.01C Telecommunications carrier means a telecommunications common carrier or a telecommunications contract carrier.

013.02 Crossing Agreements; Failure To Reach Agreement; Petition for Hearing: Any telecommunications carrier that intends to place a line, wire, or cable across a railroad right-of-way shall request permission for such placement from the railroad carrier.

013.02A Applications for Crossing: The request shall be in the form of a completed crossing application, and shall include engineering specifications.

013.02B Binding Agreement: Upon receipt of such application, the railroad carrier and the telecommunications carrier may enter into a binding wire-crossing agreement including terms pursuant to Section 013.04.

013.02C Petition for Hearing: If the railroad carrier and the telecommunications carrier are unable to negotiate a binding wire-crossing agreement within sixty (60) days after receipt of the completed crossing application pursuant to subsection 013.02A by the railroad carrier, either party may submit a petition to the commission for a hearing on the disputed terms and conditions of the wire-crossing agreement.

013.02D Petition Requirements: A party that files a petition for hearing under Section 003.02C shall include all relevant documentation concerning the disputed terms and conditions and the position of the petitioning party with respect to those issues.

013.02E Notice of Petition: A party that submits a petition for hearing under Section 013.02C shall serve a copy of the petition and any other documentation on the other party or parties not later than the day on which the Commission receives the petition for hearing.

013.02F Opportunity to Respond: The non-petitioning party under Section 013.02C shall respond to the petition and provide any relevant documentation concerning the unresolved issues and the position of the non-petitioning party with respect to those issues within twenty (20) days after service of the petition.

013.02G Action by the Commission:

013.02G1 Hearing: Unless otherwise agreed to by all parties, the Commission shall, after providing proper notice, hold and complete a hearing on the disputed wire-crossing agreement within sixty (60) days after receipt of a petition for hearing.

013.02H Commission Consideration: In rendering its decision, the Commission shall consider whether the terms and conditions at issue are unreasonable or against the public interest, taking into account safety, engineering, and access requirements of established rail industry standards, including but not limited to those prescribed and outlined in the following:

013.02H1 The Commission may require the parties to provide such information as may be necessary for the Commission to reach a decision on the unresolved issues.

013.02I Commission Order: The Commission shall have thirty (30) days from the date of hearing to issue an order resolving each issue set forth in the petition and the response with written findings and opinions.

013.03 Submission of Agreement to the Commission: Upon issuance of an order by the Commission on the petition submitted pursuant to Section

013.02C, the parties will have fifteen (15) days in which to file a conforming wire crossing agreement with the Commission. The Commission shall have fifteen (15) days from the date of filing the conforming agreement to approve or reject the agreement or the agreement will be deemed approved.

013.03A Non-conforming Agreement: The Commission may reject a wire crossing agreement submitted by the parties pursuant to Section 013.03 if it finds that the wire crossing agreement does not conform to the order issued by the Commission. If the Commission enters such a finding, the parties shall revise the agreement to comply with the Commission’s order and shall file the revised agreement with the Commission within ten (10) days. If the Commission does not approve or reject the revised agreement within fifteen (15) days after the date of filing, the agreement shall be deemed approved.

013.04 Wire Crossing Agreement Terms:

013.04A Standard Crossing Fee: Except as provided in Section 013.04D, or as otherwise agreed to by all parties, if a telecommunications carrier places a line, wire, or cable across a railroad right-of-way pursuant to Section 013, it shall pay the railroad carrier, owner, manager, agent, or representative of the railroad carrier a one-time standard crossing fee of one thousand two hundred fifty dollars ($1,250.00) for each applicable crossing.

013.04A1 One-Time Fee: The one-time crossing fee, with or without special circumstances as provided in Section 013.04D, shall be for the life of the line, wire, or cable placed across the railroad right-of-way.

013.04B Flagging Expenses: In addition to the standard crossing fee as provided in Section 013.04A, the telecommunications carrier shall reimburse the railroad carrier for any actual flagging expenses associated with the placement of the line, wire, or cable.

013.04C Other Fees Prohibited: The standard crossing fee as provided in Section 013.04A shall be in lieu of any license fee or any other fees or charges to reimburse the railroad carrier for any direct expense incurred as a result of the placement of the line, wire, or cable. Fees prohibited include, but are not limited to, application fees and processing fees.

013.04D Special Circumstances: If a railroad carrier or telecommunications carrier believes a special circumstance exists for the placement of a line, wire, or cable across a railroad right-of-way, the railroad carrier or telecommunications carrier may petition the Commission for additional requirements or modification of the standard crossing fee in its initial petition to the Commission pursuant to Section 013.02C. The Commission shall determine if a special circumstance exists that necessitates additional requirements for such placement or a modification of the standard crossing fee.

013.04E Indemnification Clauses:

013.04E1 Any provision, clause, covenant, or agreement contained within the wire-crossing agreement, collateral to the agreement, or affecting such agreeent between a rail-road carrier and a telecommunicaions carrier that purports to indemnify, defend, or hold harmless the railroad carrier from any liability for loss or damage resulting from the negligence or willful and wanton misconduct of the railroad carrier, its agents, employees, or independent contractors who are directly responsible to the railroad carrier are prohibited.

013.04E2 Any provision, clause, covenant, or agreement contained within the wire-crossing agreement, collateral to the agreement, or affecting such agreeent between a rail-road carrier and a telecommunications carrier that purports to indemnify, defend, or hold harmless the telecommunications carrier from any liability for loss or damage resulting from the negligence or willful and wanton misconduct of the telecommunications carrier, its agents, employees, or independent contractors who are directly responsible to the telecommunications carrier are prohibited.

013.04E3 Nothing in this section shall affect a provision, clause, covenant, or agreement in which the telecommunications carrier indemnifies, defends, or holds harmless a railroad carrier against liability for loss or damage to the extent that the loss or damage results from the negligence or willful and wanton misconduct of the telecommunications carrier or its agents, employees, or independent contractors who are directly responsible to the telecommunications carrier.

013.05 Appeals: A party seeking to obtain reversal, modification, or vacation of an order entered by the Commission pursuant to this Section may appeal such order in accordance with the state’s Administrative Procedure Act.

History

• Effective 2013-09-02

Chapter 6 Private Water Companies Rules and Regulations

Neb. Admin. Code tit. 291, ch. 6 Private Water Companies Rules and Regulations {#sec-291-nac-6 omnilex-key=us-ne-regs-official--title-291--291 NAC 6}

001 GENERAL :

001.01 Definitions: As used in this chapter unless the context otherwise requires.

001.01A Private Water Company: A privately owned entity organized for the purpose of furnishing water for domestic use, sewer services or both to the public, cities, villages, special districts, or other political subdivisions but shall not include (a) any entity that furnishes water for domestic use or sewer services to a mobile home park; (b) bottled water suppliers; or, (c) any group of property owners who cooperatively own a water well for the sole purpose of providing water for domestic use to their property if each owner has an equal vote in determining the rates charged for the water.

001.01B Commission: The Nebraska Public Service Commission.

001.01C Customer: Any person, firm, partnership, corporation, municipality, cooperative, organization, governmental agency or any other entity provided with water or sewer service by a private water company.

001.01D Proprietary Information: Any information that is intended solely for the use of persons authorized by a company and not for general disclosure.

001.01E Tariff: The schedule of rates, charges, classifications, and rules and regulations which are filed with the Commission by the private water company.

002 PRIVATE WATER COMPANY :

002.01 On or before July 1 of each year, each private water company shall file a schedule of its rates and charges with the Commission and shall certify to the Commission the number of customers it serves.

002.02 The Commission and its agents shall be entitled access to all books, records, and other information of a private water company which may be necessary for the Commission to determine whether it may exercise regulatory authority.

002.03 The Commission shall maintain safeguards for the protection of proprietary information, included but not limited to, protective orders and limited distribution of the proprietary information.

002.04 Initial Rate Review: Within ninety (90) days after July 1, 1994, a petition may be filed with the Commission requesting a review of the established rates and charges. The petition shall be signed by at least twenty-five percent (25%) of the private water company's customers.

002.05 Application for New Rates or Charges or Changes in Existing Rates or Charges for Water or Sewer Service: A private water company which proposes to change any of its rates or charges shall provide sixty (60) days notice to its customers and the Commission of the proposed rates or charges.

002.05A Prior to the effective date of the proposed rates or charges, a petition may be filed with the Commission requesting a review of the proposed rates and charges. The petition shall be signed by at least twenty-five percent (25%) of the private water company's customers.

002.06 Application Process:

002.06A An application to increase rates shall include the information set forth below:

002.06A1 Testimony and exhibits of all witnesses to be called in the direct case. Amendments to filed testimony and exhibits may be made only with the permission of the Commission.

002.06A2 Balance sheet and income statement or, in lieu thereof, a statement of the assets and revenues which constitute the jurisdictional rate base and net earnings statement for the test year and any adjustments thereto.

002.06A3 If available, the latest certified audit report.

002.06A4 If available, the latest annual report to stockholders.

002.06B Notice to the Commission shall be made in writing under the signature of an officer of the private water company and shall include the present and proposed rates, the effective date of the rate increase, a list of customers as of the first day of the month in which the notice is given, and a statement that all subscribers have been notified. Notice to all affected customers shall be in the following form:

002.06B1 Form for Notice of Proposed Rate Change: See Exhibit "A", Page 8.

002.06C The effective date of any rate increase proposed by a private water company shall not fall on a Saturday, Sunday, legal holiday or the day immediately following any of the above. Private water companies will be notified by the Commission by telephone as soon as petitions are filed, with a confirmation by letter, and shall likewise be notified by the effective date if fewer than twenty-five percent (25%)of the customers have submitted petitions.

002.07 Hearing Procedure:

002.07A Upon receipt of a petition, the Commission shall set a time, place, and date for a public hearing to consider the established rates and charges.

002.07B The hearing shall be held within ninety (90) days after the filing of the petition.

002.07C Notice of a hearing shall be served on customers by the Commission at least fifteen (15) days prior to the day of the hearing. This notice shall also be published by the Commission at least once a week for two successive weeks in a newspaper of general circulation in each service area affected by, or to be affected by, the proposed rates or charges with the last date of publication at least ten (10) days prior to the hearing.

002.07D At least ten (10) days prior to the hearing, the Commission shall make available for inspection, during regular office hours, all files and information gathered by it and its employees and agents relating to the matter to be heard.

002.07E Any person may appear at the hearing and present testimony, evidence, exhibits, or other information and may do so in person or by counsel, or both, pursuant to the Rules of Commission Procedure.

002.08 Rate Setting Procedure:

002.08A Following the conclusion of any hearing held pursuant to Sections 002.04 or 002.05, the Commission shall grant or deny the application considered at the hearing and, if other rates or charges are to be adopted, shall decide on any modifications to the rates or charges that the Commission considers necessary based on the evidence adduced at the hearing.

002.08B The Commission shall issue a written order outlining its findings and reasoning for its decision. The Commission's order may be appealed according to Neb. Rev. Stat. 75-137.

002.08C If a hearing is held pursuant to a petition filed under Section 002.05, the proposed rates or charges are to become effective before a decision is made by the Commission, and the Commission ultimately denies the application, then the proposed rates or charges shall be denied retroactively and any amounts collected under the proposed rates or charges shall be refunded by the private water company. If the hearing is held pursuant to a petition filed under Section 002.04, and if the decision of the Commission modifies the established rates or charges, then the established rates or charges shall be modified as of the date of the decision and shall not be retroactive.

002.08D No rate or charge determined by the Commission may yield more than a fair return on the fair value of property used and useful in rendering service to the public.

002.08E The Commission shall not include in the basis for establishment of the rate or charge any amounts spent by the private water company for advertising or other public relations expense.

002.08F Application or tariff filing for rate increases must be based on data submitted for a recently concluded test year or for a test year consisting of at least six (6) months actual experience and not more than six (6) months estimated data, to be subject to correction or verification during the course of the proceeding considering the proposed rate increase.

002.08G Adjustments will be made to test year data to reflect change in costs occurring during the test year. These changes may include costs adjusted for known and measurable changes occurring within a reasonable time subsequent to the test year, and all known decreases, as well as increases.

002.08H Adjustments will also be made to eliminate the effects of abnormal or unrepresentative conditions reflected in test year data.

002.08I Adjustments for changes in test year costs will not be made unless either the changes are subject to definite computation or reasonable estimation, or in exceptional circumstances, a cost adjustment is dictated by overriding considerations of public policy and should be allowed despite difficulties in estimations. In the case of adjustments falling within the latter category, the Commission may require periodic reporting or impose other protective conditions. In no case will an adjustment be made on the general predictions of future in creased costs.

002.08J The increase is the minimum required to assure continued, adequate, and safe service or to provide for necessary expansion to meet future requirements.

002.08K Where rate increases are sought to cover future costs associated with safety, expansion of service, improvement of service, or environmental or ecological protection, the increases will not be permitted except in instances where the costs qualify as test year adjustments within the scope of Sections 002.08F through 002.08I.

002.08L The rate increase will achieve a fair rate of return or the revenue needed to attract capital at reasonable costs, to maintain the integrity of the private water company's investment, and not to impair its credit; such rate of return must also meet all the requirements of the Constitution, statutes of the state of Nebraska, and all decisions of the Nebraska Supreme Court with reference to such matters.

002.08M In determining an appropriate rate of return, the Commission will consider the capital structure at or near the time the applicant's increased rates will become effective. Costs of various components of capital structure -- interest on bonds, dividends on preferred stock, return on common stock -- will be computed as of that date. Adjustments generally will be made in the capital structure and in the costs of various types of capital in a number of situations as, for example, where adjustments are required to reflect new financings which are known to be imminent.

002.08N The rate of return or operating ratio allowed by the Commission will not reflect expectations of future inflation, but only cost justified expense increases.

002.08O The rate increase takes into account expected and obtainable productivity gains, to the extent that such gains can be measured and verified.

003 VIOLATIONS AND PENALTIES :

003.01 Any private water company that violates any provision of the Water Service Regulation Act or any rule, regulation, or official order of the Commission shall be subject to a civil penalty of not less than fifty dollars ($50) nor more than one thousand dollars ($1,000) for each act of violation and for each day of violation to be recovered as follows:

003.01A Whenever it appears that a private water company has violated, is violating, or is threatening to violate, any provision of the Water Service Regulation Act or any rule, regulation, or official order of the Commission, the Commission may institute a civil suit in the District Court of Lancaster County for:

003.01A1 Injunctive relief to restrain the private water company from continuing the violation or threat of violation.

003.01A2 The assessment and recovery of a civil penalty as provided for in Section 003.01 of these rules.

003.01A3 Both injunctive relief and civil penalty.

003.01B On application for injunctive relief and a finding that a private water company is violating or threatening to violate any provisions of the act or any rule, regulation, or official order of the Commission, the Commission shall request that the District Court grant injunctive relief as the facts may warrant.

003.01C At the request of the Commission, the county attorney shall institute and pursue a suit in the name of the state of Nebraska for injunctive relief or to recover the civil penalty, or both, as authorized in Section 003.01.

History

• Effective 1994-07-06

Chapter 7 Transmission Lines Rules and Regulations

Neb. Admin. Code tit. 291, ch. 7 Transmission Lines Rules and Regulations {#sec-291-nac-7 omnilex-key=us-ne-regs-official--title-291--291 NAC 7}

001 GENERAL .

001.01 POWER LINES TO COMPLY WITH NATIONAL ELECTRICAL SAFETY CODE. For the purposes of implementing Chapter 75, Article 7, of the Reissue Revised Statutes of Nebraska, 1943, Transmission Lines Rules and Regulations, the 2023 edition of the National Electrical Safety Code as modified by the Commission (and incorporated herein by reference and available for viewing at the Nebraska Public Service Commission, 300 The Atrium, 1200 "N" Street, Lincoln, Nebraska 68508) shall be the official rules of the Commission for the construction, operation, and maintenance of overhead and underground electric transmission lines, except when such rules and regulations conflict with the laws of Nebraska or the special rules and regulations of the Commission.

001.02 NEW EDITIONS OF THE NATIONAL ELECTRICAL SAFETY CODE. Upon receipt of a new edition of the National Electrical Safety Code, the Commission will hold a hearing to consider modifications to the Code before adopting it as the official rules of the Commission.

001.03 RELIEF FROM CODE REQUIREMENTS. Applications for relief from the National Electrical Safety Code requirements, as adopted, will be considered by the Commission.

002 TRANSMISSION LINES CARRYING A VOLTAGE IN EXCESS OF 700 VOLTS .

002.01 AUTHORITY TO CONSTRUCT. No person or company shall construct, or cause to be constructed, any line for the transmission of electric current in excess of fifteen thousand (15,000) volts, if the proposed line is within one-quarter (.25) mile of any existing electrical or communication line of any person or corporation, or signal line of any railroad, without filing an application with the Commission and having same granted, unless allowed under Section 002.06C of this chapter. If the proposed line is within five hundred feet (500') of an electrical or communication line of any person or corporation, or signal line of any railroad, and the voltage exceeds seven hundred (700) volts, application to construct the same shall also be made to the Commission, except that no application shall be required for any line not exceeding fifteen thousand (15,000)volts which does not exceed six hundred sixty feet (660') in length, and which is more than seventy-five feet (75') from any existing electrical or communication line of any person or corporation, or signal line of any railroad. The provisions of this section shall not apply to any line or lines within the limits of any incorporated city or village. Application shall be made to increase the voltage of an existing line if the proposed conversion meets the criteria stated for new construction as provided in this section. An application is necessary for any construction, alteration or modification to any over-head wire or cable, the height of which is greater than five feet (5') above the elevation of any airport, landing field or landing strip, which has been approved and licensed by the Department of Aeronautics, for each five hundred feet (500') of the distance that such construction is, or will be, situated from the nearest boundary of such airport.

002.02 APPLICATION. One copy of the route map, designated as Exhibit A, and one copy of the engineering specifications, designated as Exhibit B, shall be attached to the application. The applicant shall file with the Commission two additional copies of Exhibits A and B along with the originals of all waivers obtained.

002.02(A) EXHIBIT A, ROUTE MAP. Exhibit A shall be drawn on a scale of not less than one inch (1") to the mile and show the counties, townships, ranges, and sections through which the proposed transmission lines are to be constructed, together with all cities and villages, if any, within one-quarter (.25) mile of the proposed transmission line. All existing electrical and communication lines or railroad signal lines within the respective distances described in Subsection 002.01 and their owners or operators shall be shown and designated by a clear and definite legend. The owner or operator shall be indicated by a number placed in a circle adjacent to the respective line, and the post office addresses of these utilities shall be included in the legend. All airports, landing fields, and landing strips, approved and licensed by the Department of Aeronautics at the time of application, shall be shown and the name of each owner or operator with the post office address included in the legend if the construction height is greater than five (5') feet above the elevation of such airports, landing fields, or landing strips for each five hundred feet (500') of the distance that such construction is, or will be situated, from the nearest boundary of such airports, landing fields, or landing strips. Exhibit A shall have an identification number or other identification insignia and shall also show the name and address of applicant and give such additional data as the application may require. It must show the length, phase, number of wires and voltage of each piece of line proposed to be constructed, which shall be drawn accurately to scale. The route map shall extend at least one-quarter (.25) mile beyond all proposed construction.

002.02(B) EXHIBIT B, ENGINEERING SPECIFICATIONS; OVERHEAD CONSTRUCTION. Exhibit B shall contain the following information:

002.02(B)(i). Applicant's file number or specific designation.

002.02(B)(ii). Identification number from Exhibit A.

002.02(B)(iii). Name and address of the Applicant.

002.02(B)(iv). A general description of the line applied for, including length, number of phases, number of wires (phase, ground and/or shield), voltage, location (county), system connection, grounding information, and a description of any double or underbuilt circuits.

002.02(B)(v) POLES. Kind of material, pole height, treatment, strength, and number of structures per mile.

002.02(B)(vi) ANCHORS AND GUYS. Size, type and strength.

002.02(B)(vii) CROSS ARMS. Material, size and strength.

002.02(B)(viii) PINS AND BRACKETS. Type, size strength.

002.02(B)(ix) CONDUCTORS. Size, material, breaking strength, arrangement, spacing and span lengths (both average and maximum).

002.02(B)(x) INSULATORS. Type, nominal voltage, dry flashover, material and number of units per string.

002.02(B)(xi) SPECIAL CONSTRUCTION. A description of any special types of construction used.

002.02(B)(xii). A general description of all lines to be removed.

002.02(B)(xiii). Conformity with state laws, the National Electrical Safety Code, and the rules and regulations of this Commission.

002.02(B)(xiv). Date, engineer and address.

002.02(C) EXHIBIT B, ENGINEERING SPECIFICATIONS; UNDERGROUND CONSTRUCTION. Exhibit B shall contain the following information:

002.02(C)(i). Applicant's file number or specific designation.

002.02(C)(ii). Identification number from Exhibit A.

002.02(C)(iii). Name and address of the Applicant.

002.02(C)(iv). A general description of the line applied for, including length, number of phases, voltage, county and grounding information.

002.02(C)(v) CONDUCTORS. Size, material and type.

002.02(C)(vi) CONDUCTOR INSULATION. Thickness, type, material and voltage rating.

002.02(C)(vii) CABLE TERMINATIONS. Size, type and voltage rating.

002.02(C)(viii) MISCELLANEOUS. Cable depth, riser pole cable protection, fault protection and description of any special type of construction used.

002.02(C)(ix). A general description of all lines to be re-moved.

002.02(C)(x). Conformity with state laws, the National Electrical Safety Code, and the rules and regulations of this Commission.

002.02(C)(xi). Date, engineer and address.

002.03 FILING FEE. Each application for authority to construct, operate and maintain an electric transmission line shall be accompanied by the applicable filing fee according to the schedule found in Chapter 1, Rules of Commission Procedure. Applications may be submitted for more than one line; however, the proper fee shall be assessed on a per line basis.

002.04 SUPPLEMENTAL APPLICATION. If the line has not been built in its entirety in accordance with the Commission's authorization, a supplemental application should be made to the Commission covering any and all changes in routing of the line, voltage, and design. Any roadside changes should also be included in the supplemental application since Commission authorizations are limited to a particular side of the road or section line. A filing fee per the schedule found in Chapter 1, Rules of Commission Procedure, is required for all supplemental applications.

002.05 DELAYED APPLICATION. A line extension carrying over seven hundred (700) volts, not to exceed one-half (.50) mile in length, may be built from an existing transmission line prior to obtaining approval of said extension by the Commission, if all owners or operators of electrical, communication, or railroad signal lines located within the appropriate distance and the Department of Aeronautics, if required, consent to such construction. Within thirty (30) days following the construction of such extension, an application shall be made for construction of such extension and shall be referred to as a delayed application. All provisions of law relating to transmission line applications, notices, hearings and orders shall apply to such delayed application. Neither the fact that the line extension has been built, nor the consent thereto given by owners or operators of other lines shall affect, in any way, the conclusion or authority of the Commission, or the rights of anyone to protest against the application. If it is finally determined that the application should be denied, the owner or operator shall remove the line extension. When filing a delayed application, the applicant shall include a completion notice and proper filing fee with the application.

002.06 NOTICE AND HEARING.

002.06(A) HEARING NOT REQUIRED. Where agreements with the owners or operators of electrical, communication, or railroad signal lines existing within the respective distances described in Sub-section 002.01 from the proposed construction, are filed with the Commission and the Commission finds that the application, Exhibit A, and Exhibit B attached thereto, conforms with the laws of Nebraska, and the regulations of the Commission, the application may be granted without a Commission hearing. Such consenting agreement shall be in writing, shall show the name and address of the utility involved, the name and address of the individual signing it, the date of its execution, and shall be filed by the applicant with the Commission.

002.06(B) HEARING REQUIRED. If a filed application does not meet the requirements of Subsection 002.06A, the Commission will notify, by mail, certified or registered, all owners or operators of existing lines named by applicant in Exhibit A and such other persons as the Commission shall designate to appear at a public hearing at a time and place to be fixed by the Commission for hearing such application. An appropriate order will be entered.

002.06(C) APPLICATION NOT REQUIRED (60 DAY NOTICE). Proposed construction, operation and maintenance of an electrical trans-mission line may be undertaken without application to the Commission pursuant to Section §75-720 R.R.S., 1943, if the company:

002.06(C)(i). Gives notice of the proposed construction by certified mail to the Commission and all persons or corporations which own or operate electrical, communication, or railroad signal lines located within the respective distances described in Subsection 002.01; and,

002.06(C)(ii). The notice provides the information required in Exhibits A and B outlined in Subsections 002.02A, 002.02B, and 002.02C, the physical configuration, length of parallel of and proposed separation from the lines of the noticed parties.

002.06(C)(ii)(1). Such construction, operation and maintenance shall not begin until sixty (60) days from the date notice was received by all parties identified in Subsection 002.06C1, unless signed agreements waiving rights to object are received. Copies of these agreements shall be filed with the Commission. If any airport, landing field or landing strip, which has been approved and licensed by the Department of Aeronautics, is within the distance described in Subsection 002.01 from the proposed construction, this method of filing may not be used.

002.07 COMPLETION NOTICE. Any person, corporation, association, or company who, or which, has been authorized by the Commission to construct, operate and maintain an electric transmission line having a voltage of over seven hundred (700) volts shall file a completion notice with the Commission as soon as the proposed line is constructed and ready to be energized. A completion notice shall be in the form listed on the following page.

002.07(A) DELAY IN CONSTRUCTION. If an electric transmission line construction authorized by order of the Commission has not been entirely completed within twenty-four (24) months from the date of the order, and if the time for construction has not been extended by order of the Commission, the authorization for the portion of line not completed shall be cancelled forthwith. An application for an extension of time will be considered by the Commission upon a request from applicant showing good cause for such extension.

History

• Effective 2023-05-17

Chapter 8 Grain Warehouse and Grain Dealer Rules and Regulations

Neb. Admin. Code tit. 291, ch. 8 Grain Warehouse and Grain Dealer Rules and Regulations {#sec-291-nac-8 omnilex-key=us-ne-regs-official--title-291--291 NAC 8}

001 GENERAL

001.01 DEFINITIONS AS USED IN CHAPTER 8 UNLESS THE CONTEXT OTHERWISE REQUIRES.

001.01(A) APPROVED GRAIN MOISTURE MEASURING DEVICE. A device included on the list of Approved Grain Moisture Measuring Devices or if a new device, has a current National Type Evaluation Program Certificate at the time of purchase.

001.01(B) COMMISSION. The Nebraska Public Service Commission.

001.01(C) DELIVERY. The voluntary transfer of possession from one person to another.

001.01(D) DEPOSITOR, STORER AND/OR OWNER. Owner means any person who has grain stored with a Warehouse Operator. However, unless said person complies with these regulations, said person shall not have the protection or benefit of the public grain warehouse security. Owner does not include mortgagee or pledgee.

001.01(E) DIRECT DELIVERY. All grain that is bought, sold or transported in the name of the licensee other than grain that is received at the licensed warehouse facilities.

001.01(F) DIRECT DELIVERY OBLIGATION. The obligation of a Warehouse Operator/dealer to transfer title to warehouse owned grain to a producer via an in-store transfer upon the direct delivery. A direct delivery obligation is treated as a dealer obligation until such time as it is satisfied by an in-store transfer.

001.01(G) END INTAKE AIR PROBE. Any instrument which is used by any person for the collection of grain samples, for testing of grain offered for sale, processing, or storage by use of vacuum to collect the sample, excluding transfer of the taken sample.

001.01(H) GRAIN. The term shall mean wheat, corn, oats, soybeans, barley, rye, flax, or sorghum which has not been processed or packaged for the purpose of distribution as seed, including, but not limited to, edible beans, whole corn plant pellets, alfalfa pellets, millet, sunflower seed, safflower seed, and any other bulk pelleted agricultural storable commodity.

001.01(H)(i): Grain includes all commodities described in Section 001.01H whether grown and marketed as fungible commodities or within segregated marketing channels, including, but not limited to, certified organic commodities.

001.01(I) GRAIN DEALER. Any person, other than a feeder or custom feeder of livestock or poultry or a grain warehouse licensed under the Grain Warehouse Act or located in Nebraska and licensed under the United States Warehouse Act that does not buy, sell, or transport grain other than grain that is received at its licensed warehouse facilities, who (a) buys grain from the producer within this state for purposes of selling such grain, or (b) acts as an employee or agent of a buyer or seller for purposes of collective bargaining in the marketing of grain.

001.01(J) GRAIN (GRAIN BANK). Grain which has been deposited with a licensee to be held for the account of the owner, to be returned to the owner, at a later date upon request, processed in some form in amounts to be determined by the owner, usually in the form of processed feed and not intended for storage or sale to the licensee.

001.01(K) GRAIN (PROCESSED). Any grain in which the whole kernel has been physically altered by a process such as rolling, cracking, grinding, or extruding. This definition shall not include grain which has only been cleaned, graded, separated, and/or bagged.

001.01(L) GRAIN IN STORAGE. Any grain which has been received at any public grain warehouse and to which title has not been transferred to the Warehouse Operator by signed contract or priced scale ticket.

001.01(M) HAND TRIER. A probe which does not use air flow as a means of obtaining a sample from a load of grain.

001.01(N) IN-STORE TRANSFER. A method by which a Warehouse Operator transfers title to warehouse owned grain to any person in satisfaction of a Direct Delivery Obligation between the Warehouse Operator/dealer and producer, and the grain remains in the warehouse.

001.01(O) MECHANICAL PROBE. A probe which uses air flow as a means of obtaining a sample from a load of grain.

001.01(P) NEBRASKA STATE BOARD OF PUBLIC ACCOUNTANCY. The licensing and regulatory board for certified public accountants and public accountants.

001.01(Q) PERSON. The term includes, but is not limited to, a corporation, partnership, cooperative, association, limited liability company, or two or more persons having a joint or common interest.

001.01(R) POST-DIRECT DELIVERY STORAGE POSITION. A storage position acquired through an In-Store Transfer in satisfaction of a Direct Delivery Obligation.

001.01(S) PUBLIC GRAIN WAREHOUSE AND/OR WAREHOUSE. Any grain elevator building or receptacle in which grain is held for longer than 10days and will include, but not be limited to, all buildings, elevators and warehouses, consisting of one or more warehouse sections within the confines of a city, township, county, or state, that are considered a single delivery point, with the capability to receive, load out, weigh, and store grain.

001.01(T) RECEIVED. Any grain that is physically deposited into a licensed public grain warehouse.

001.01(U) SCALE TICKET. A load slip or other evidence, other than a receipt, given to a depositor by a Warehouse Operator licensed under the Grain Warehouse Act, upon the grain being received at a public grain warehouse.

001.01(V) SCALE TICKET, PRICED. A scale ticket, including the original and all copies, which is marked as sold or priced or for which the agreed sale price is indicated on the original and all copies of the scale ticket. The original scale ticket must be issued to the party making Delivery in accordance with Neb. Rev. Stat. Section 88-535).

001.01(W) STANDARD METER. A moisture meter used by a Commission representative for comparative tests to determine accuracy of another meter.

001.01(X) WAREHOUSE OPERATOR. Any person who:

001.01(X)(i). Receives grain for storage or stores or offers to store grain for legal consideration for another person in a warehouse where delivered; or,

001.01(X)(ii). Receives grain for shipment to other points for storage, consignment, or resale either in or out of this state.

001.02 CONSTRUCTION. The following rules will be used in construing Chapter 8, unless the context otherwise requires:

001.02(A). Reference to any person, depositor, storer, owner, holder, or Warehouse Operator will be deemed to include a personal representative, executor, administrator, heirs or other person having lawful authority to act on their behalf.

001.02(B). The singular number will be construed to also mean plural.

001.03 FORMS. The use of all forms prescribed by the Commission relative to this chapter is mandatory and they will be obtained and used by the Warehouse Operator at his or her own expense. Forms for applications, bonds, stock insurance verification, and irrevocable letters of credit will be available from the Commission without charge and can be found at the end of this chapter.

002 PUBLIC GRAIN WAREHOUSES.

002.01 LICENSING REQUIREMENT. No Person shall operate a Warehouse or act as a Warehouse Operator without a license issued pursuant to the Grain Warehouse Act and these regulations. Warehouses, except Warehouses licensed under the United States Warehouse Act, shall be licensed and regulated by the Commission.

002.02 ELIGIBILITY REQUIREMENTS.

002.02(A) ELIGIBLE WAREHOUSES. The following warehouses are eligible for a Public Grain Warehouse License, upon compliance with the statutory provisions of the Grain Warehouse Act and Rules and Regulations of the Commission:

002.02(A)(i). Warehouses which are under the control of the applicant and are permanently equipped for receiving, weighing, storing, conditioning, handling, and loading out grain. A section which is under control of an applicant, but is not by itself eligible for license, may, at the Commission's discretion, be licensed in conjunction with an eligible Warehouse.

002.02(A)(ii). At the Commission's discretion, a hearing may be set to determine eligibility for license. Upon review by the Commission of all documents submitted, licenses may be issued for such Warehouses where the evidence establishes the same to be necessary for the welfare of and service to the public.

002.02(B) INELIGIBLE WAREHOUSES. Any Warehouse of any type, at any location, which is not under the control of the licensed Warehouse Operator will not be licensed. This provision is intended to preclude any agreement or arrangements whereby a Warehouse Operator places, keeps, or stores Grain in a Warehouse not licensed pursuant to these regulations.

002.02(C) SAFETY REQUIREMENTS. All eligible warehouses must meet the following minimum requirements:

002.02(C)(i). Tanks to be licensed must meet the following minimum requirements:

No. of Bins Depth of Eaves Requirements

1 thru 9 20 to 29.9 feet Permanent ladder on

high inclusive each tank or permanent

ladder on one 1 tank

with catwalk to others

Cluster of 20 to 29.9 feet Permanent ladder on one

10 or more high inclusive 1 tank with a catwalk

to others

1 thru 3 30 to 50 feet Permanent ladder on

high inclusive each tank or permanent

ladder on one 1 tank

with catwalk to others

Cluster of 30 to 50 feet Permanent ladder on one

4 or more high inclusive 1 tank with catwalk to

others

1 or more 50 feet or Permanent ladder with a

higher safety cage attached with catwalk to others or a manlift

002.02(C)(ii). Ladders and catwalks must be constructed with necessary handrails when required; and,

002.02(C)(iii). Ladders, catwalks and manlifts must be in a safe state of repair at all times.

002.03 LICENSE APPLICATION REQUIREMENTS.

002.03(A) FORM OF APPLICATION. All applications for a warehouse license will be submitted on a form prescribed by the Commission.

002.03(B) BACKGROUND CHECK. All applications for a grain warehouse license shall include the primary party. Such primary party shall be subject to fingerprinting and a check of his or her criminal history record information maintained by the Federal Bureau of Investigation through the Nebraska State Patrol: (1) If the applicant is not an individual, the chief executive officer, president, or general manager; or (2) if the applicant is an individual, the individual. If a primary party has been subject to a check of his or her criminal history record information pursuant to another law, the Commission may waive such requirement. A primary party shall furnish to the Nebraska State Patrol a full set of fingerprints to enable a criminal background investigation to be conducted. The primary party (1) may be fingerprinted at a Nebraska State Patrol office, or (2) may request a fingerprint card from the Commission. If a primary party is fingerprinted at a county sheriff’s office or a local police department, the primary party shall send the completed fingerprint card to the Nebraska State Patrol, c/o/ Criminal Records & Identification, P.O. Box 94907, Lincoln, Nebraska, 68509-4907. The primary party shall request that the Nebraska State Patrol submit the fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The primary party shall pay the actual cost, if any, of the fingerprinting and check of his or her criminal history record information. The primary party shall authorize release of the national criminal history record check to the commission. The criminal history record information check shall be completed within ninety days after the date the application for a license is received in the commission’s office, and if not, the application shall be returned to the applicant. The Commission shall deny a warehouse license to any applicant whose primary party has been convicted of a felony financial crime.

002.03(C) FEES. All applications for license will include a fee as set by Nebraska statute. The license fee of the applicant shall be computed on the basis of the separate capacities of each warehouse. Any applicant who makes a first-time application for license will pay the prescribed fee, which will not be refundable should the applicant withdraw the application or be unable to meet all licensing requirements within one year from the date of application.

002.03(D) SEPARATE AND CONSOLIDATED LICENSES. Separate applications must be filed and separate licenses will be required for each warehouse, except:

002.03(D)(i). When a Warehouse Operator operates one or more Warehouses in the same city, village, siding, zoned area, or legally described location in conjunction with each other, where only one set of books is kept for the Warehouses, and Scale Tickets, warehouse receipts, and checks of but one series are issued for Grain received or stored therein, only one license will be required for the operation of all the Warehouses.

002.03(D)(ii). When a Warehouse Operator operates two or more warehouses in different cities, villages, sidings or legally described locations, in conjunction with each other, and if only one set of books is kept for the Warehouses, only one license may be required for the operation of the Warehouses at the discretion of the Commission. In such cases, the license fee and security will be computed on the basis of the separate capacities of each Warehouse.

002.03(E) TERMS OF LICENSE. All warehouse licenses issued or renewed will expire no more than12 calendar months after the effective date. The expiration date will be either March 31, June 30, September 30, or December 31.

002.03(F) APPLICATION DEADLINE. If an application for license has not been completed within 180 days, the Commission may enter an order of pending dismissal setting a deadline for action to be taken by the applicant. If applicant fails to complete the application after such deadline, the Commission may dismiss the application and close the docket.

002.04 FINANCIAL REQUIREMENTS. Each license applicant and warehouse licensee shall file the financial statement prepared in accordance with accounting principles generally accepted as prescribed by section 88-528. If an applicant for a license is a wholly owned subsidiary of a parent company and such a financial statement is not prepared for the subsidiary, the parent company shall submit its audited fiscal year-end financial statement and shall execute an unconditional guarantee agreement as prescribed by the Commission. In determining whether an application should be granted, or a warehouse license renewed or remain in effect, the applicant or licensee shall meet the following requirements:

002.04(A) NET WORTH. An applicant or licensee shall demonstrate and maintain an allowable net worth of $.25 per bushel for each bushel of licensed capacity. A minimum allowable net worth of $10,000 will be required to obtain or maintain a license. An applicant or licensee whose allowable net worth exceeds $10,000, but fails to meet the net worth requirement of $.25 per bushel of licensed capacity, shall file deficiency security with the Commission in an amount equal to the deficiency. No license shall be issued, nor allowed to remain in force, for any Warehouse Operator who possesses an allowable net worth of less than $10,000.

002.04(B) WORKING CAPITAL. Current liabilities to allowable current assets shall show a working capital ratio of not less than 1 to 1. Applicants whose statements fail to meet this requirement before a license is granted, or licensees whose financial condition fails to meet this requirement, shall provide additional data sufficient to satisfy the Commission that additional operating capital can be obtained to meet the requirement.

002.04(C). For purposes of the financial review conducted by the Commission to determine whether an applicant or licensee meets financial requirements, the following shall apply unless waived by the Commission. In addition to those listed in this section, assets may be disallowed, in whole or in part, based upon the individual circumstances of the licensee or applicant:

002.04(C)(i) PHYSICAL ASSETS.

002.04(C)(i)(a). Depreciable assets not covered by insurance are disallowed.

002.04(C)(i)(b). Personal assets, including but not limited to residences, household items, recreational items, restricted retirement accounts and vehicles, are disallowed, net of debt on each asset.

002.04(C)(i)(c). Other assets that are not itemized are disallowed.

002.04(C)(i)(d). Appraised valuations of assets not substantiated by a satisfactory appraisal are disallowed. An applicant or licensee may submit a valuation of assets by competent appraisal to the Commission for inclusion in computing net worth. If a valuation of assets is submitted and satisfies Commission requirements, no more than seventy percent of appraised value over the book value of the assets may be used in determining compliance with net worth requirements. Acceptance of an appraisal is subject to the following:

002.04(C)(i)(d)(1). The appraisal must be prepared by an independent certified appraiser.

002.04(C)(i)(d)(2). The appraisal must be prepared on market, income, and cost approaches.

002.04(C)(i)(d)(3). A one-to-one working capital ratio must be maintained.

002.04(C)(i)(d)(4). Any value claimed over the insured value will be disallowed.

002.04(C)(i)(d)(5). Appraisals will only be allowed for 3 years following the date of the appraisal.

002.04(C)(ii) RECEIVABLES.

002.04(C)(ii)(a). Accounts or notes receivables due from related parties, affiliates, or employees are disallowed.

002.04(C)(ii)(b). Accounts receivables due after one year are disallowed.

002.04(C)(ii)(c). Accounts or notes receivable under litigation are disallowed.

002.04(C)(ii)(d). Unsecured notes receivables are disallowed.

002.04(C)(ii)(e). Other receivables that are not itemized are disallowed.

002.04(C)(iii) OTHER.

002.04(C)(iii)(a). Prepaid expenses that are not itemized are disallowed.

002.04(C)(iii)(b). Prepaid taxes are disallowed.

002.04(C)(iii)(c). Prepaid loan fees are disallowed.

002.04(C)(iii)(d). Returned checks are disallowed.

002.04(C)(iii)(e). Organization costs are disallowed.

002.04(C)(iii)(f). Stock subscriptions are disallowed.

002.04(C)(iii)(g). Intangible assets including but not limited to goodwill are disallowed.

002.04(C)(iii)(h). Refundable and deferred income taxes are disallowed.

002.04(C)(iii)(i). Stock insurance deductible is disallowed.

002.04(C)(iii)(j). Value of Limited Liability Companies are disallowed.

002.04(D) FILING. Each warehouse licensee shall comply with the statutory filing within 90 days after its fiscal year closes, provided that the Commission may grant, upon request and reasonable cause shown, one filing extension of30 days whereupon the financial report shall be filed with the Commission not later than120 calendar days after a Warehouse Operator's fiscal close.

002.04(E) CURRENT FINANCIAL REPORTS. Upon complaint filed with the Commission, and after hearing, the Commission may require a warehouse licensee to file current financial reports showing that the warehouse licensee is maintaining the requirements set forth in Section 002.04 and the subsections thereunder.

002.04(F) ADDITIONAL FINANCIAL REQUIREMENTS. In addition to the fiscal year-end financial statement required by section 88-528 and to detect noncompliance with financial requirements established by the Commission pursuant to section 88-530, the Commission shall, for good cause shown as determined by considering the criteria set forth below, require (1) a verified report of the total grain inventory or (2) an audited financial statement. A verified report of grain inventory or audited financial statement shall be prepared in accordance with generally accepted accounting principles by a Person or firm which holds a permit granted by the Nebraska State Board of Public Accountancy.

002.04(F)(i). Verified inventory criteria, any one of which may be deemed by the Commission to be sufficient to require a verified inventory:

A) Repeat or consecutive Grain shortage within company owned.

B) Repeat or consecutive losses that do not leave the licensee below Commission required net worth and working capital.

C) Oversold Grain position.

D) Examination indicating inaccurate grain inventory being used in financial statement.

E) Failure to maintain an accurate Daily Position Record.

F) Insufficient funds check found on examination.

G) Grain quality not meeting requirement.

H) Failure to respond to an exception report issued for shortage or lack of adequate handling or moisture shrink.

002.04(F)(ii). Audit criteria, any one of which may be deemed by the Commission to be sufficient to require an audit:

A) Repeat or consecutive Grain shortage not within company owned.

B) Repeat or consecutive losses that leave the licensee below Commission net worth or working capital requirements.

C) Oversold Grain position and collateral warehouse receipt(s) was outstanding.

D) Repeat failure to maintain an accurate Daily Position Record.

E) Repeat insufficient fund checks found on examinations.

F) Not paying for Grain on demand or as required by contract terms.

G) Withdrawing capital, paying dividends or making a loan that leaves the licensee below the Commission net worth or working capital requirements.

H) Working capital deficiency and issuance of collateral warehouse receipts for unpaid Grain.

I) Repeat or consecutive oversold grain position.

002.05 SECURITY REQUIREMENTS.

002.05(A) AMOUNT. Pursuant to the statutory requirements, each licensee shall provide a bond, irrevocable letter of credit, certificate of deposit, United States bonds or treasury notes, or other debt obligations of the United States, or combination thereof, in the amount determined by the Commission according to the following requirements:

002.05(A)(i) SECURITY CALCULATIONS. The security amount shall be calculated by multiplying the separate capacity of each Warehouse by $.25 per bushel, except that Warehouse sections exceeding 5,000 bushels in capacity, without permanent turning or aerating capabilities, will be calculated at $.40 per bushel. The security amount shall be rounded to the next highest $100 increment.

002.05(A)(ii) MINIMUM AND MAXIMUM REQUIREMENTS PER LICENSED ENTITY. The security requirements shall not be less than $25,000 or greater than $1,000,000, except as outlined in Subsection 002.05A3.

002.05(A)(iii) ADDITIONAL SECURITY REQUIRED. Security may be required, in addition to the amount determined in Subsections 002.05A1 and 002.05A2, if one or more of the following conditions occur:

A) For an applicant who has filed a reviewed fiscal year-end financial statement pursuant to section 88-528, the Commission shall require additional security in an amount of $.025 per bushel but not less than $25,000 or more than $1,000,000.

B) The Commission finds, after administrative review, that the financial statement of an applicant or licensee is inadequate for the Warehouse Operator's particular operation, therefore requiring the filing of deficiency security.

C) A situation arises in which the Commission finds, after hearing, that conditions exist at a Warehouse which warrant that additional security be filed.

D) If the Warehouse Operator forwards receipted grain to other licensed locations for storage, additional security must be furnished in the same manner and on the same basis as if the Warehouse Operator increased the storage capacity, up to the $500,000 maximum security requirement.

002.05(B) PERSONS ENTITLED TO SECURITY. The security shall be payable to the Nebraska Public Service Commission for the benefit of all Owners and qualified sellers of stored grain.

002.05(C) SINGLE SECURITY FILING PER ENTITY. When an entity has more than one license, only one security filing shall be required to cover the aggregate amount of security required for all of the entity's licenses. The minimum aggregate total will be $25,000 for each license and the maximum total will not exceed $1,000,000 for the combined licenses.

002.05(D) TYPES OF SECURITY.

002.05(D)(i) PUBLIC GRAIN WAREHOUSE BOND. A bond shall be issued by a company authorized to conduct business in Nebraska, on a form prescribed by the Commission. Changes to a bond must be made on a form prescribed by the Commission.

002.05(D)(ii) CERTIFICATE OF DEPOSIT. A Warehouse Operator may deliver certificates of deposit to the Commission in an amount equal to the security required. The certificates of deposit will be:

A) Issued by a financial institution which is insured by the Federal Deposit Insurance Corporation (“FDIC”) or the National Credit Union Administration (“NCUA”);

B) In amounts not to exceed the amount for which the accounts may be insured at the issuing institution; and,

C) Payable to the Nebraska Public Service Commission with interest to be paid to the beneficiary designated by the buyer of the certificate.

D) Upon the deposit of a qualified certificate of deposit with the Commission, the certificate of deposit will be transferred to a financial institution for safe keeping. Any certificate of deposit furnished in lieu of a bond shall not be considered as part of the assets of the Warehouse and will have the same legal significance as a bond.

002.05(D)(iii) IRREVOCABLE LETTER OF CREDIT. A Warehouse Operator may deliver an irrevocable letter of credit to the Commission in an amount equal to or greater than the security required. Such irrevocable letter of credit will be:

A) Issued by a financial institution which is insured by the FDIC, NCUA, or issued by farm credit institutions chartered by the Farm Credit Administration;

B) Issued for a period at least 180 days longer than the expiration date of the underlying license;

C) Provide for payment to the Commission up to the security liability of the Warehouse Operator; and;

D) On a form prescribed by the Commission.. Changes to an irrevocable letter of credit must also be made on a form prescribed by the Commission.

002.05(D)(iv) OTHER TYPES OF SECURITY ALLOWED. In accordance with Neb. Rev. Stat. Section 88-530 the Commission may accept as security a public debt obligation of the United States which is unconditionally guaranteed as to both principal and interest by the United States and pledged to the Commission in the amount as prescribed by the Commission.

002.05(E) COMBINATION OF SECURITY TYPES. If two or more allowable security types are filed with the Commission to satisfy the security requirement, claims against the security will be paid using a pro rata share of each security filing, up to the limit of liability of each filing.

002.05(F) RELEASE OR REDUCTION OF SECURITY.

002.05(F)(i) RELEASE. No security shall be released until 180 days have elapsed from the cancellation, revocation, or expiration of the license, unless one of the following occurs:

A) The Warehouse Operator files another type or types of security as a replacement; or,

B) The Warehouse Operator transfers all storage obligations to another licensed Warehouse Operator.

002.05(F)(ii) REDUCTION. The Commission may, at its discretion, reduce a security filing; provided that the security filing shall not be reduced below the requirements stated in Subsection 002.05A.

002.06 STOCK INSURANCE REQUIREMENTS.

002.06(A) NECESSITY OF INSURANCE. No license will be issued before satisfactory proof of insurance coverage has been filed with the Commission. Failure to maintain insurance will be grounds for revocation of a license after due notice and hearing.

002.06(B) PROOF OF INSURANCE. Proof of insurance coverage shall be filed on a form prescribed by the Commission.

002.06(C) MINIMUM INSURANCE COVERAGE. The Warehouse Operator must maintain a policy or policies of combustion, fire, lightning, and tornado insurance in an amount sufficient to cover the total loss upon all grain in the licensed warehouse, as valued by the formula set forth in Subsection 002.08H2. Without in any way limiting the Warehouse Operator's liability under this section, the Warehouse Operator may carry a standard form of insurance policy approved for grain Warehouse Operators, with a total deductible not to exceed its financial wherewithal. The Warehouse Operator’s financial wherewithal shall be determined by the Commission’s review of the Warehouse Operator’s financial statements in accordance with Section 002.04. If the Warehouse Operator’s financial statements fail to meet Commission requirements, the Commission may require the Warehouse Operator to (1) correct the financial deficiency or (2) obtain a different, Commission approved, insurance policy.

002.07 RECORDS AND FILING REQUIREMENTS. Each Warehouse Operator shall maintain at a place of business accurate, complete, and current records of all Grain handled by the Warehouse. The required records shall include, but are not limited to, the following:

002.07(A) SCALE TICKETS. Scale tickets must contain the following information and be filed numerically:

002.07(A)(i). Be prenumbered.

002.07(A)(ii). Name of the Warehouse.

002.07(A)(iii). Name of the Owner or consignee of the Grain.

002.07(A)(iv). Issue date.

002.07(A)(v). Gross, tare and net weight, and whether driver is on or off truck.

002.07(A)(vi). Commodity.

002.07(A)(vii). Signature or initials of the Warehouse Operator or duly authorized agent.

002.07(B) PRICED SCALE TICKETS. Priced Scale Tickets must contain the information required for a Scale Ticket. In addition, the Grain represented by Priced Scale Tickets must be paid for by the licensee within 30days of Delivery or the licensee must obtain a duly executed contract within the 30day period.

002.07(C) SETTLEMENT SHEETS. The settlement sheets shall contain the following information and be filed systematically:

002.07(C)(i). Name of the Warehouse.

002.07(C)(ii). Name of the owner or consignee of the grain.

002.07(C)(iii). Scale Ticket dates and numbers.

002.07(C)(iv). Commodity.

002.07(C)(v). Net weight or net bushels.

002.0(C)(vi). Discount factors, if used to adjust the value of the Grain.

002.07(C)(vii). Agreed price, if price was not shown on the Scale Ticket.

002.07(C)(viii). Date and description of the disposition, if settled, and/or reference transfer, if posted to another settlement sheet.

002.07(D) WAREHOUSE RECEIPTS.

002.07(D)(i). The Warehouse Operator's copy of each receipt issued must be filed numerically and maintained at the Warehouse Operator's place of business.

002.07(D)(ii). Each redeemed original warehouse receipt must be attached to the Warehouse Operator's copy of the receipt, to be cancelled by the Commission as outlined in Subsection 002.08E.

002.07(E) ELECTRONIC WAREHOUSE RECEIPTS. Receipts are maintained on electronic media provided by a third party under agreement with the Commission. The Commission may enter into provider agreements under which electronic receipts may be issued, registered, transferred and cancelled.

002.07(F) CHECKS. Checks shall contain the following information and be filed in numerical order, by month:

002.07(F)(i). Name of Warehouse.

002.07(F)(ii). Be prenumbered.

002.07(F)(iii). Name of Owner.

002.07(F)(iv). Issue date.

002.07(G) CONTRACTS. Contracts shall contain the following information and be filed in numerical order:

002.07(G)(i). Be prenumbered.

002.07(G)(ii). Name of the Warehouse.

002.07(G)(iii). Name of the Owner.

002.07(G)(iv). Commodity and quantity.

002.07(G)(v). Title to the Grain has passed from the Owner to the Warehouse Operator.

002.07(G)(vi). Be signed and dated by all parties.

002.07(H) IN-STORE TRANSFER NOTICE. An In-Store Transfer operates to transfer warehouse-owned grain physically stored in the Warehouse by a warehouse licensee, to a Person in satisfaction of a Direct Delivery Obligation and the Grain remains in the Warehouse. To be considered a valid I n-Store Transfer Notice, proper documentation must be issued pursuant to Neb. Rev. Stat.Section 88-543(1)(b). An In-Store Transfer Notice shall contain the following information and be filed in numerical order:

002.07(H)(i). Be Pre-numbered.

002.07(H)(ii). Name of the Warehouse.

002.07(H)(iii). Name of the producer.

002.07(H)(iv). Commodity and quantity.

002.07(H)(v). Be signed and dated by the Warehouse Operator.

002.07(H)(vi). A statement that title to the Grain stored in the Warehouse passes from the warehouse licensee to the Person with the Direct Delivery Obligation upon execution of the In-Store Transfer Notice in satisfaction of the Delivery Obligation.

002.0(7)(I) DAILY POSITION RECORD. The Daily Position Record shall contain the following information and be in a format approved by the Commission:

002.07(I)(i). Total quantity of each kind and class of Grain Received and loaded out.

002.07(I)(ii). Quantity of each kind and class of Grain remaining in the Warehouse as of the close of each business day.

002.07(I)(iii). Total amount of Grain in terminal storage.

002.07(I)(iv). Quantity of Grain for which negotiable receipts have been issued.

002.07(I)(v). Quantity of Grain in open storage.

002.07(I)(vi). Quantity of Grain in any Grain Bank accounts the Warehouse Operator maintains.

002.07(I)(vii). Quantity of Grain to which the Warehouse Operator has title and for which payment has not been made, including, but not limited to, Grain on deferred or delayed payment and deferred price contracts.

002.07(I)(viii). Quantity of Grain for which payment has been made.

002.07(I)(ix). Total quantity of Warehouse owned Grain (total of Subsections 002.07I7 and 002.07I8).

002.07(I)(x). Allow for documenting at least one other type of storage situation which may be required.

002.07(I)(xi). Be posted each business day.

002.07(I)(xii). Reason(s) for any adjustment entry.

002.07(I)(xiii) FILING. If the Daily Position Record is computerized no physical copy of the Daily Position Record is required to be maintained, as long as a electronic copy is (a) generated at the close of each business day by a process which accurately reproduces or forms a durable medium for so reproducing the original, (b) is preserved for 5 years, and; (c) is accessible at any time for inspection. If the Daily Position Record is not computerized, a hard copy printout of the record, as of the close of each business day, must be generated and retained in the Warehouse Operator's place of business.

002.07(I)(xiv) CORRUPTION OF THE DAILY POSITION RECORD. No Warehouse may record Grain in the Warehouse Daily Position Record as physically received or physically loaded out that has not been physically deposited in or removed from the Warehouse.

002.07(J) RECORD OF KIND AND CLASS OF GRAIN IN EACH BIN. A current record must be maintained which shows the kind and class of Grain in each bin.

002.07(K) SHIPPING LEDGERS. All Grain loaded out of a Warehouse by rail or barge without origin weights must be posted to a shipping ledger. All other Grain loaded out of a Warehouse must be weighed on an approved scale and posted to a Scale Ticket or sales invoice. The Commission may waive this requirement based upon the individual circumstances. Ledger information must include, but is not limited to, the following:

002.07(K)(i). Rail car or barge identification numbers;

002.07(K)(ii). The destination, if known;

002.07(K)(iii). The billed weight of the Grain; and,

002.07(K)(iv). The actual settlement weight of the Grain.

002.07(L) INSURANCE REPORTS. A copy of the Warehouse Operator's stock insurance report, for reporting policies, must be maintained at the Warehouse Operator's place of business. All reports must be filed with the insurance carrier no later than the 15th day of the month following the month covered by the report.

002.07(M) NOTICE TO DEPOSITORS, STORERS AND/OR OWNERS. The Warehouse Operator must retain one copy of each notice sent to comply with Subsection 002.12B.

002.07(N) RETENTION. The Warehouse Operator shall, unless otherwise authorized by the Commission, retain the required records for not less than 5 years.

002.07(O). A Post-Direct Delivery Storage Position may not be created at any time the warehouse licensee does not have sufficient warehouse owned grain.

002.08 GRAIN WAREHOUSE RECEIPT REQUIREMENTS.

002.08(A) FORMS.

002.08(A)(i) PURCHASES. Warehouse receipts are furnished by the Commission in quadruplicate in lots of 50. The purchase price of all warehouse receipts will be established by the Commission, in conformity with the applicable statutes.

002.08(A)(ii) REFUND FOR UNUSED RECEIPTS. The Commission shall refund the purchase price of any unused lot of 50 warehouse receipts, after return to the Commission by the purchaser, or a successor in business, guardian, administrator, or other lawfully authorized representative. This provision will not apply to receipts that have been specially printed for a Warehouse Operator or to receipts which contain outdated language or information.

002.08(B) ISSUANCE.

002.08(B)(i) TIME. Upon demand every Warehouse Operator shall issue a receipt to the Owner of grain delivered to a Warehouse for storage.

002.08(B)(ii) PRESERVED IDENTITY OF GRAIN. If the Owner and Warehouse Operator agree that the identical Grain stored will be delivered and not be commingled with Grain of the same kind and grade, the Warehouse Operator shall write on the face of the receipt the following: "Identity Preserved".

002.08(B)(iii) PARTIAL LOAD OUT OR SALE OF GRAIN ON RECEIPT.

A) NON-NEGOTIABLE RECEIPTS. If demand is made for a portion of the Grain represented by a non-negotiable receipt, the amount shall be entered on the face of the receipt.

B) NEGOTIABLE RECEIPTS. If demand is made for a portion of Grain represented by a negotiable receipt, the receipt shall be cancelled, as outlined in Subsection 002.08E.

002.08(C) TIME AND MANNER OF DELIVERY. On the same day as issuance of a receipt, the Warehouse Operator will deliver the original and fourth copy of the receipt to the Owner or other specified person. Receipts will be delivered either by mail or personal delivery.

002.08(D) REGISTRATION.

002.08(D)(i) PROCEDURE FOR REGISTRATION OF RECEIPTS. A Warehouse Operator shall register a receipt by mailing or delivering, on the same day that the receipt is issued, the third copy to the Commission for registration. Any holder of an original receipt may request the Commission to register the receipt. When an error has been made, changes or corrections will be allowed as prescribed by the Grain Warehouse Director.

002.08(D)(ii) PROCEDURE FOR REGISTRATION OF COLLATERAL WAREHOUSE RECEIPTS. A Warehouse Operator shall register the third copy of a collateral warehouse receipt as prescribed in Subsection 002.08D1. In addition, the Commission may require the registration of the original collateral warehouse receipt or a certified copy of the original receipt if it becomes aware of problems or irregularities in the issuance or endorsement of the receipt.

002.08(D)(iii) ENDORSEMENT. When the Commission receives an original receipt issued on the form prescribed by the Commission, it shall register the receipt by stamping and endorsing thereon the following:

NEBRASKA PUBLIC SERVICE COMMISSION

REGISTERED

---

(Month) (Day) (Year)

By

---

Grain Warehouse Director

002.08(D)(iv) DISPOSITION OF RECEIPT. The Commission, after registering the original receipt, shall deliver the original copy to the Warehouse Operator or, upon request, to the Person designated to be the holder of the receipt. The Commission shall retain the third copy.

002.08(E) CANCELLATION OF REGISTERED RECEIPTS.

002.08(E)(i) NEGOTIABLE RECEIPTS. Upon endorsement and surrender of the original receipt by the holder of a negotiable receipt, the Warehouse Operator shall indicate on the face of the receipt, the date and description of the disposition of the Grain. The Warehouse Operator shall retain possession of the receipt and the registration of the receipt shall be cancelled by the Commission by stamping and endorsing thereon during the next warehouse examination.

002.08(E)(ii) NON-NEGOTIABLE RECEIPTS. The procedure for cancelling non-negotiable receipts is the same as outlined in Subsection 002.08E1, except that the original receipt does not require endorsement by the receipt holder.

002.08(E)(iii) COLLATERAL RECEIPTS. Upon release of a collateral receipt by the lending institution, the lender shall endorse the back of the receipt with an authorized signature and release date before mailing or delivering the receipt to the Warehouse Operator. The Warehouse Operator shall retain possession of the receipt for cancellation during the next grain warehouse examination, as stated in Subsection 002.08(E)(i).

002.08(F) LOST OR DESTROYED RECEIPTS.

002.08(F)(i) NEGOTIABLE RECEIPTS. If a registered negotiable receipt is lost or destroyed prior to cancellation, the holder thereof shall submit an application to the Commission, on a form prescribed by the Commission, together with a corporate or personal surety bond. This procedure will be followed whether the receipt holder chooses to take Delivery of the Grain, sell the Grain, or have a duplicate receipt issued. If the holder of the receipt is the Warehouse Operator, a surety bond is not required.

002.08(F)(ii) NON-NEGOTIABLE RECEIPTS. If a registered non-negotiable receipt is lost or destroyed prior to cancellation, the Commission may, at its discretion, require the same provisions as for a negotiable receipt. However, in the case of a non-negotiable receipt, the Commission may accept a verified statement from the Warehouse Operator, signed by the party to whom the receipt was issued, showing settlement in full, and no security would be required to indemnify the Warehouse Operator. If the Warehouse Operator chooses this method, he or she should be aware that if a dispute arises in which there is reasonable doubt, the Warehouse Operator would not be protected against the possibility that the missing document would, in the hands of an innocent purchaser for value, be held negotiable.

002.08(F)(iii) PRIOR TO REGISTRATION OR DELIVERY. If all copies of a negotiable or non-negotiable receipt are lost or destroyed prior to registration or Delivery, the Commission may accept a signed statement from the Warehouse Operator describing the cause of the receipt's loss or destruction.

002.08(G) DUPLICATE REGISTERED RECEIPTS.

002.08(G)(i) APPLICATION. The application for a duplicate registered receipt must be verified and contain the following information:

A) The date and place of issuance of the lost or destroyed receipt.

B) The name and address of the Person to whom it was issued.

C) The commodity, amount, and grade.

D) The value of the commodity on the date of the application.

E) The receipt number.

F) The date of registration.

002.08(G)(ii) BOND. The applicant shall submit with the application a bond of indemnity, with corporate or personal surety, duly executed in the form prescribed by the Commission. The bond will be conditioned to indemnify the Warehouse Operator or any holder or other Person entitled to the Grain, against any loss, liability, or expense which may be sustained by reason of such Delivery. The amount of the bond will be determined by the Commission.

002.08(G)(iii) PROCEDURE FOR ISSUANCE. A copy of the application and a letter of authority shall be forwarded to the Warehouse Operator if the Commission approves the application. The bond and original application will remain on file with the Commission. The Warehouse Operator shall attach the documents received from the Commission to the Warehouse Operator's copy of the lost registered receipt in the warehouse receipt book on file. The Warehouse Operator shall issue a new receipt and stamp or write on the face the following:

"This receipt is issued as a duplicate, replacing receipt number (number of lost receipt), as approved by the Nebraska Public Service Commission on (date)."

002.08(H) REDEMPTION OF RECEIPT WHEN GRAIN IS DESTROYED.

002.08(H)(i) NOTIFICATION OF DESTRUCTION. In the event that all or part of the Grain contained in a Warehouse, for which receipts are outstanding, is destroyed by any means whatsoever, the Warehouse Operator shall notify the Commission of such destruction.

002.08(H)(ii) SETTLEMENT.

A) The Warehouse Operator may redeem the receipts upon Delivery of Grain, upon payment for the Grain represented by the receipt, or upon any other basis as may be agreed upon by the Warehouse Operator and the holder of the receipt.

B) If no settlement is reached, the Warehouse Operator shall redeem the receipts by application of the following formula: The prevailing price at the nearest terminal market on the date the grain was destroyed, less the freight cost on the date of destruction for transporting a like kind and quantity of Grain from the Warehouse to the closest terminal market, less load out costs, and less all Warehouse storage charges accrued but unpaid on the date of destruction.

C) The receipt holders shall, upon due notice, accept the offered settlement and surrender the receipts.

002.08(H)(iii) EXISTING RIGHTS OR LIABILITIES. The Commis­sion does not intend that this section will in any way alter the legal rights or liabilities of either the Warehouse Operator or the holder of a warehouse receipt. Thus, it is contemplated that the Commission shall direct payment only upon a finding that the Warehouse Operator is liable for the loss.

002.09 POSTING REQUIREMENTS.

002.09(A) LICENSE. Each Warehouse Operator shall, at all times, post in a conspicuous place in the Warehouse Operator's place of business, the license issued by the Commission.

002.09(B) SECURITY FILING AND STORAGE RATES. Each licensed Warehouse Operator shall, at all times, post in a conspicuous place in the Warehouse Operator's place of business, a notice furnished by the Commission stating the amount of security filed with the Commission and approved storage, receiving, and load out charges for each type of grain stored or handled.

002.09(C) UNSAFE ENTRY. A warning sign will be posted on all bins which may have been fumigated and/or are unsafe for inspection purposes. The sign may be removed when the bin is safe to enter.

002.10 DUTY TO RECEIVE GRAIN. Every Warehouse Operator shall receive, so far as the capacity and policy of the Warehouse will permit, all Grain tendered for storage.

002.11 PAYMENT REQUIREMENT. Payment to the Owner for Grain purchased by a Warehouse Operator shall be made upon demand, except as provided by written contract between the parties.

002.12 STORAGE RATE REQUIREMENTS.

002.12(A) RATES AND CHARGES.

002.12(A)(i) STORAGE RATE: Each warehouse licensee shall file with the Commission a schedule of the licensee's storage rates and charges current as of the date of filing. A Warehouse Operator shall post the filed schedule of rates and charges on signage issued by the Commission in a conspicuous place at the licensee's Warehouse location. Such rates and charges shall be full compensation for receiving, handling, storing, delivering, and insuring grain.

002.12(A)(ii) STORAGE RATE CHANGES. A warehouse licensee may increase or decrease such rates and charges by (a) filing notice with the Commission and also sending such notice to all grain owners of record not less than 30 days prior to such change of rates and charges and (b) posting notice on signage issued by the Commission in a conspicuous place at the warehouse licensee's Warehouse. The new rates and charges shall be charged on all Grain in storage at the time of, and all Grain received for storage after, the effective date of the change of rates and charges.

002.12(A)(iii) NON-DISCRIMINATION. No discrimination shall be made between different customers by any state-licensed grain warehouse either in facilities, rates, charges, or handling of any Grain, except that members of a cooperative may be given preference in storage facilities in Warehouses of the cooperative. The rates charged to any governmental agency shall be exempt from Commission regulation.

002.12(B) NOTIFICATION TO DEPOSITORS, STORERS AND/OR OWNERS. At least once each calendar year, and not later than one year from the date of receipt of the previous written notice, each Warehouse Operator shall send written notice to each Owner of Grain in the Warehouse, at the Person's last-known address, specifying the type and amount of Grain in storage, the location at which the Grain is being stored, and the current rate of storage.

002.13 STORAGE CONTRACT TERMINATION REQUIREMENTS.

002.13(A) TERMINATION BY WAREHOUSE OPERATOR. At the election of the Warehouse Operator, storage in the Warehouse may be terminated upon application to the Commission and good cause shown.

002.13(A)(i) APPLICATION. The Warehouse Operator shall submit, not less than30 days prior to the termination date, a verified application, on a form prescribed by the Commission, stating the name and address of the applicant, name and address of the Owner of the Grain, commodity, amount, grade, value of the commodity on the date of the application, warehouse receipt number(s) (if receipted), and a statement of the reason why the Warehouse Operator wants to terminate the contract(s).

002.13(A)(ii) NOTICES. Not less than 15days prior to the termination date, the Warehouse Operator shall:

A) Post a notice of termination in a conspicuous place in the Warehouse Operator's place of business listing each storage contract and showing the name of the last-known Owner of such storage contract, and specifying the date of termination;

B) Transmit one copy of the notice by first-class mail to each Person named in the notice, at the last-known address;

C) File one copy of the notice with the Grain Warehouse Director; and,

D) Furnish a copy of the notice to any Person requesting one.

002.13(A)(iii) LETTER OF AUTHORITY. Upon approval by the Commission of the Warehouse Operator's application for termination, the Commission shall enter an order and forward a copy to the applicant. The order will constitute authority to terminate the contract.

002.13(A)(iv) SETTLEMENT BY WAREHOUSE OPERATOR. Upon termination of any storage contract by a Warehouse Operator, the Warehouse Operator may:

A) Deliver the grain to the Owner;

B) Sell the Grain in the open market on the business day following the day of termination; or,

C) Purchase the grain at the price determined by the formula set forth in Subsection 002.08H2. The price will be determined as of the close of business on the business day following the day of termination.

002.13(A)(v). The Warehouse Operator shall deduct from, and retain out of the proceeds of the sale or purchase, all lawful accrued charges and necessary expenses incurred in making and completing the sale, and pay the balance of the proceeds to the Owner upon surrender of the warehouse receipts, if applicable.

002.13(B) TERMINATION BY DEPOSITOR, STORER AND/OR OWNER. The Owner of Grain in a licensed warehouse may terminate, at any time, the storage contract on any or all Grain, by:

002.13(B)(i). Presenting a demand for Delivery or request to sell the Grain, along with any endorsed warehouse receipts covering the Grain;

002.13(B)(ii). Paying all lawful charges due the Warehouse Operator for the storage of the Grain; and,

002.13(B)(iii). Furnishing transportation for loading out the grain provided that if the Owner does not notify the Warehouse Operator of an intention to furnish transportation, the Warehouse Operator shall procure the transportation as the agent of the Owner, as promptly as may be done in the exercise of ordinary diligence. The storage charges shall not cease until load out is completed.

002.14 CHANGES IN STORAGE CAPACITY. No Warehouse Operator shall increase or decrease the licensed capacity without first meeting the eligibility requirements of Subsection 002.02(A) and obtaining Commission approval. The Commission shall charge a fee as established pursuant to Rules of Commission Procedure for the change in licensed capacity. An increase in capacity will require an increased storage fee as outlined in the Commission's fee schedule, except that a new Warehouse added to an existing license will require a fee as outlined in Subsection 002.03B. The fee shall be non-refundable if the application is withdrawn via request to the Director of Grain.

002.15 WAREHOUSE TRANSFER OR CHANGE IN FORM OF BUSINESS.

002.15(A) TRANSFER OF A WAREHOUSE. The transferor shall notify the Commission prior to transferring a warehouse licensed pursuant to Section 002. The transferee shall submit an application to the Commission as set forth in Subsections 002.03 or 002.14, as applicable. The Commission shall not issue a license to the transferee unless the transferee has filed with the Commission a Successor's Agreement, whereby the transferee assumes all storage obligations of the transferor.

002.15(B) CHANGE IN FORM OF BUSINESS. A change from a sole proprietorship, partnership, limited liability company, or corporation to any other form of organization will require compliance with Subsection 002.15A.

002.16 TRANSFERS OF STORED GRAIN. No grain may be transferred from one Warehouse to a Warehouse at a different location, except as provided in this section. The Owner of Grain, unless otherwise agreed, may recover grain at the same location where it was deposited.

002.16(A) WAREHOUSE OPERATOR WHO OPERATES TWO OR MORE WAREHOUSES AT DIFFERENT LOCATIONS UNDER ONE LICENSE. When a Warehouse Operator operates two or more warehouses at different locations under one license, the Warehouse Operator may transfer Grain received at one location to a different location operated under the same license.

002.16(B) UNRECEIPTED GRAIN. When a Warehouse Operator has grain stored in facilities for which no receipt has been issued, the Warehouse Operator may transfer the Grain to a licensed Warehouse at a different location for storage.

002.16(C) TRANSFER OF UNRECEIPTED GRAIN BY JOINT MARKETING OR SHIPPING AGREEMENT. A Warehouse Operator may include in total stocks of Grain on its daily position record quantities of Grain by commodity and class, represented by non-negotiable warehouse receipts issued to the Warehouse Operator by other licensed Warehouse Operators provided that:

002.16(C)(i). The participating Warehouse Operator maintain a copy of the agreement and current and complete accounts of all transactions involved;

002.16(C)(ii). The non-negotiable warehouse receipts issued as a part of such transaction shall contain the declaration: "Held in trust for Owner(s) of (name of original receiving Warehouse Operator)"; and,

002.16(C)(iii). The Warehouse Operator storing the grain represented by the non-negotiable receipts shall not forward receipted Grain for storage under Subsection 002.16D.

002.16(D) EMERGENCY FORWARD SHIPMENT OF WAREHOUSE RECEIPTED GRAIN FOR STORAGE. Upon determination by the Commission that an emergency storage situation exists, a Warehouse Operator who has Grain stored in licensed facilities for which warehouse receipts have been issued, may transfer the Grain to a licensed warehouse for storage, subject to the following provisions:

002.16(D)(i). The Warehouse Operator shall apply to the Commission, on a form prescribed by the Commission, for approval to forward receipted grain for storage.

002.16(D)(ii). The Warehouse Operator shall demonstrate and maintain net worth in accordance with Subsection 002.04 for each bushel of receipted Grain forwarded for storage, as determined by the Commission.

002.16(D)(iii). The Warehouse Operator shall post additional security, in amounts required for the licensing of additional Warehouse space, as prescribed in Subsection 002.05.

002.16(D)(iv). Each Warehouse Operator authorized by the Commission to forward receipted Grain for storage shall obtain a non-negotiable warehouse receipt to cover Grain in storage at the receiving Warehouse. Each non-negotiable receipt issued under this section shall contain the declaration, "Held in trust for the Owner(s) of (name of original receiving warehouse)."

002.16(D)(v). Prior to the approval of an application to forward Warehouse receipted Grain for storage, the receiving Warehouse Operator must agree to store all Grain in licensed space.

002.16(D)(vi). Each Warehouse Operator which has received and is storing warehouse receipted Grain for another Warehouse Operator shall be prohibited from forwarding receipted Grain for storage.

002.16(D)(vii). Any Warehouse Operator who has transferred receipted Grain for storage shall regain sufficient quantities and quality of Grain in its licensed facilities to cover all warehouse receipted obligations no later than120 days after an emergency storage situation has ended, as determined by the Commission.

002.17 WAREHOUSE EXAMINATIONS.

002.17(A) EXAMINATION FREQUENCY REQUIREMENT. All licensed warehouses will be examined by the Commission, or its representa­tives, at least once every12 months. Upon demand made by an agent of the Commission, the Warehouse Operator will make available all books and records of the Warehouse Operator relating directly to the operation of the Warehouse.

002.17(B) REQUESTED EXAMINATIONS. When examinations are requested of the Commission, the Commission may charge a fee as established pursuant to Rules of Commission Procedure.

002.17(C) ADDITIONAL EXAMINATIONS. If the Commission determines that additional examinations are necessary after a regular examination is completed at a Warehouse, the Commission may charge such Warehouse for the cost of the additional examinations according to the Commission’s fee schedule. Warehouses shall only be charged if such examinations are for reasons of irregularities from the previous examination or if financial conditions warrant additional examinations.

002.18 WAREHOUSE SURVEILLANCE; CLOSURE OF A WAREHOUSE.

002.18(A) SURVEILLANCE. If any examination reveals a deficiency in quantity, quality, or both, of the Grain stored in a Warehouse, the Commission shall have the authority to place an agent of the Commission at the Warehouse so as to supervise all operations conducted at said Warehouse which would involve stored Grain, until the deficiency is corrected. The Commission shall have authority to take possession of the Warehouse and supervise the operations to see that no Grain moves in or out except at the discretion and/or direction of the Commission. The Commission shall have complete authority to inspect books, records, accounts, papers, and proceedings and, through its agent, monitor and supervise access to and control of the Warehouse Operator's records for the protection and preservation of the Owner accounts. The Commission may monitor the records until any litigation, which it has initiated for the benefit of any Owner of Grain, is completed.

002.18(B) CLOSURE OF WAREHOUSE; REVOCATION OF LICENSE. The Commission may close a Warehouse because of one or more of the following circumstances:

002.18(B)(i). If the Commission determines that a shortage of Grain exists or that the quality of Grain in storage is insufficient to meet the obligations at a Warehouse;

002.18(B)(ii). If a license expires and is not renewed;

002.18(B)(iii). If a license is surrendered to, cancelled or revoked by the Commission for violation of any statute or the Commission's Rules and Regulations; or,

002.18(B)(iv). If a Warehouse is operated without a license.

002.18(C). The Commission may take one or more of the following actions in determining whether to close a Warehouse or revoke a license:

002.18(C)(i). Conduct an examination.

002.18(C)(ii). Issue an order requiring the licensee to show cause why the license should not be revoked upon filing of a verified complaint by the Grain Warehouse Director.

002.18(C)(iii). Issue a temporary suspension.

002.18(C)(iv). Take possession of the Warehouse.

002.18(C)(v). Take title to all Grain stored in the Warehouse in trust, for all valid Owners and qualified sellers of stored Grain.

002.18(C)(vi). Conduct surveillance.

002.18(C)(vii). Hold a hearing on the complaint and any order to show cause which may have been served on the licensee, followed by a Commission order.

002.18(C)(viii). Upon revocation of a warehouse license, take custody of the Warehouse Operator's records for the protection and preservation of the Owner accounts, and retain custody of these records until the matter has been completely litigated. Requests to review the records must be approved by the Commission.

002.18(C)(ix). Make redelivery of the grain on a pro rata basis to all valid Owners, or,

A) Sell the grain using a broker hired by the Commission, through a bidding procedure, auction, or any other means which in the Commission's judgment would be best for the Owners of Grain in the Warehouse and qualified check holders.

B) Award a contract to the highest bidder or bidders, with the Commission reserving the right to reject any or all bids. The Commission may reserve the right to reject all bids submitted pursuant to an offering and reoffer the Grain for sale until it is satisfied that it has been tendered an adequate price.

C) Deposit money from the sale of Grain in an interest-bearing trust account for the benefit of the valid Owners and qualified check holders.

002.18(C)(x). Supervise the load out and Delivery of Grain. The Commission, after reviewing and giving consideration to all conditions and circumstances, shall determine how the costs will be borne in each individual case. All liquidation expenses shall be paid from the Warehouse Surveillance Cash Fund or the grain sale proceeds.

002.18(C)(xi). Publish notice to potential claimants in newspapers published in the area served by the licensee.

002.18(C)(xii). Review the records to determine apparently valid claims of Owners and qualified sellers of stored grain.

002.18(C)(xiii). Hold a public hearing for potential claimants to provide evidence of their claims.

002.18(C)(xiv). Enter a final order with notice to all claimants of record. After the final order, an appeal may be made to the Court of Appeals.

002.18(C)(xv). If required, request that all or part of the security be forfeited to the Commission.

002.18(C)(xvi). Distribute grain sale and/or security proceeds.

002.18(C)(xvii). Assess the assets of the Warehouse Operator a surveillance fee as established pursuant to Rules of Commission Procedure for actual expenses incurred by the Commission.

002.18(C)(xviii). Request the redelivery of, or cash payment for, any Grain transferred to any Person within 10 days prior to the closing. Any Grain which has been Received at the Warehouse and forwarded to another location for storage or sale, on which settlement has not been made, shall be subject to the same procedure, with the exception that the10 day provision would not apply. The receiving location is entitled to legitimate storage and handling charges.

002.18(D). Upon the Commission’s closure of a Warehouse and taking title to grain pursuant to Section 002.18, Grain seized pursuant to Section 002.18, including Grain owned by the warehouse licensee, is subject to a first priority lien in favor of valid Owners of Grain who are holders of evidence of ownership of Grain. The lien created under this section shall be preferred to any lien or security interest in favor of any creditor of the warehouse licensee regardless of the time when the creditor’s lien or security interest attached to the Grain. Notice of the first priority lien referred to herein need not be filed in order to perfect the lien. All the Grain in the warehouse, whether stored or not, first shall be applied at all times to the satisfaction of all valid Owners of Grain who hold evidence of ownership of Grain.

002.18(D)(i). In the event no distribution is made to valid Owners of Grain who are holders of evidence of ownership of Grain and the Commission transfers title to the Grain back to the Warehouse or to another Person, then the first priority lien created shall terminate. Such termination shall not affect any other rights, including rights of ownership in Grain stored at the Warehouse, of valid Owners of Grain who are holders of evidence of ownership of grain. Nothing shall prevent the Commission from subsequently closing the Warehouse and taking other action permitted under law.

002.18(D)(ii). Prior to or within 10 days after any creditor of the warehouse licensee commences a judicial proceeding to reduce to judgment, foreclose, or otherwise enforce any claim on a creditor’s lien or security interest attached to Grain contained in the Warehouse, the creditor shall serve written notice on the Executive Director of the Commission.

002.18(D)(iii). If the Commission closes the Warehouse and takes title to the Grain, such action shall operate as a stay of the commencement or continuation, including the issuance or employment of process, of any judicial, administrative, or other action or proceeding to take title to the Grain that was or could have been commenced before such action by the Commission.

002.19 CIVIL PENALTY. Any Person who violates the Grain Warehouse Act may be assessed a civil penalty, in accordance with the Grain Department Complaint and Administrative Fining Policy, for one or more, but is not limited to the following violations:

A) Failure to timely file renewal application.

B) Failure to timely complete application process.

C) Failure to timely file financial statement.

D) Failure to timely file security replacement or extension.

E) Failure to timely file replacement stock insurance.

F) Failure to maintain accurate, complete or current records.

G) Failure to make payment on demand.

H) Failure to charge posted storage and handling rates.

I) Failure to notify the Commission or the public of changes in storage capacity or rates.

J) Failure to maintain Commission financial requirements.

K) Repeat or consecutive grain shortage.

L) Insufficient funds check found on examination.

M) Grain quality not meeting requirement.

N) Failure to timely respond to exception report.

O) Repeat oversold position.

003 GRAIN DEALERS.

003.01 LICENSING REQUIREMENTS. All Grain Dealers doing business in Nebraska are required to procure and maintain a license from the Commission.

003.02 LICENSE APPLICATION REQUIREMENTS.

003.02(A) FORM. All applications for a grain dealer license shall be submitted on the form prescribed by the Commission.

003.02(B) DETERMINING VOLUME OF BUSINESS FOR NEW APPLICANT. A new applicant may obtain a license on the basis of an estimate of the volume of business the applicant expects to do during the term of the license for which the application is made. When a first-year applicant obtains a license on the basis of an estimate of its purchases for the year, and the licensee, in fact, buys an amount of grain equal to or more than the initial estimate, the licensee shall revise the estimate and immediately furnish sufficient additional security to cover the additional projected purchases.

003.02(C) BACKGROUND CHECK. All applications for a grain dealer license shall include the primary party. Such primary party shall be subject to fingerprinting and a check of his or her criminal history record information maintained by the Federal Bureau of Investigation through the Nebraska State Patrol: (1) If the applicant is not an individual, the chief executive officer, president, or general manager; or (2) if the applicant is an individual, the individual. If a primary party has been subject to a check of his or her criminal history record information pursuant to another law, the Commission may waive such requirement. A primary party shall furnish to the Nebraska State Patrol a full set of fingerprints to enable a criminal background investigation to be conducted. The primary party (1) may be fingerprinted at a Nebraska State Patrol office, or (2) may request a fingerprint card from the Commission. If a primary party is fingerprinted at a county sheriff’s office or a local police department, the primary party shall send the completed fingerprint card to the Nebraska State Patrol, c/o/ Criminal Records & Identification, P.O. Box 94907, Lincoln, Nebraska, 68509-4907. The primary party shall request that the Nebraska State Patrol submit the fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The primary party shall pay the actual cost, if any, of the fingerprinting and check of his or her criminal history record information. The primary party shall authorize release of the national criminal history record check to the Commission. The criminal history record information check shall be completed within 90days after the date the application for a license is received in the Commission’s office, and if not, the application shall be returned to the applicant. The Commission shall deny a dealer license to any applicant whose primary party has been convicted of a felony financial crime.

003.02(D) APPLICATION FEES. All applications for license will include a fee as set by Neb. Rev. Stat. Section 75-903. Any application fees paid will be non-refundable should the applicant withdraw the application or be unable to meet all licensing requirements within one year from the date of application.

003.02(E) TERM OF LICENSE. A grain dealer license shall expire at midnight on the following March 31, June 30, September 30, or December 31.

003.02(F) APPLICATION DEADLINE. If an application for license has not been completed within 180 days, the Commission may enter an order of pending dismissal setting a deadline for action to be taken by the applicant. If applicant fails to complete the application after such deadline, the Commission may dismiss the application and close the docket.

003.03 FINANCIAL REQUIREMENTS. Each Grain Dealer or applicant shall submit a reviewed or audited fiscal year-end financial statement prepared by an independent certified public accounting firm. If licensing as an individual, the financial statement shall be prepared in accordance with Other Comprehensive Basis of Accountancy for a personal financial statement, using historical cost and accrual basis of accounting. If licensing as a partnership, corporation, or limited liability company, the financial statement must be prepared in accordance with generally accepted accounting principles. If an applicant for a grain dealer license is a wholly owned subsidiary of a parent company and such a financial statement is not prepared for the subsidiary, the parent company shall submit its reviewed or audited fiscal year-end financial statement and shall execute an unconditional guarantee agreement as prescribed by the commission. The financial statement shall include, but is not limited to, the following:

003.03(A). Statement of income (Profit and Loss)

003.03(B). Balance sheet

003.03(C). Statement of cash flows

003.03(D). Statement of proprietor's capital or retained earnings.

003.03(E). The volume and dollar value of Grain Dealer purchases the licensee made in Nebraska during the fiscal year. If the volume and dollar value of the grain purchases is not reported, the Grain Dealer shall file the maximum grain dealer security as required by the Grain Dealer Act.

003.03(F). This section applies to all licensees who hold both a warehouse and dealer license. The volume and dollar value of transactions in which Direct Delivery Grain is exchanged for a Post-Direct Delivery Storage Position and the Post-Direct Delivery Storage Position is not created by an In-Store Transfer on the same date as the Delivery of the Direct Delivery Grain.

003.03(F)(i). The value shall be calculated as set forth in Section 003.04A1.

003.03(F)(ii). The statement shall specifically show:

003.03(F)(ii)(a). The total volume and dollar value of the Direct Delivery Grain exchanged for a Post-Direct Delivery Storage Position,

003.03(F)(ii)(b). The total volume and dollar value of the Direct Delivery Grain exchanged for a Post-Direct Delivery Storage Position created by an In-Store Transfer on the same date as the Delivery of the Direct Delivery Grain, and;

003.03(F)(ii)(c). The net volume and dollar value of the Direct Delivery Grain exchanged for a Post-Direct Delivery Storage Position that will be used for calculation of the grain dealer security as set forth in Section 3.04.

003.03(G). The accounting firm’s certification, assurances, opinions, and comments and the notes with respect to the financial statement.

003.03(H) NET WORTH. Each Grain Dealer or applicant shall demonstrate and maintain a minimum allowable net worth of $250,000 to obtain and maintain a license.

003.03(I) WORKING CAPITAL. Each Grain Dealer or applicant shall demonstrate and maintain a working capital ratio (current liabilities to allowable current assets) of not less than 1 to 1. Applicants or licensees who fail to meet this requirement shall provide additional data sufficient to satisfy the Commission that additional operating capital can be obtained to meet the requirement.

003.03(J). For purposes of determining whether an applicant or Grain Dealer meets financial requirements, the following shall apply unless waived by the Commission. In addition to those listed in this section, items may be disallowed, in whole or in part, depending upon the individual circumstances of the Grain Dealer or applicant:

003.03(J)(i) PHYSICAL ASSETS.

003.03(J)(i)(a). Personal assets, including but not limited to residences, household items, recreational items, restricted retirement accounts and vehicles, are disallowed, net of debt on each asset.

003.03(J)(i)(b). Other assets that are not itemized are disallowed.

003.03(J)(i)(c). Appraised valuations of assets not substantiated by a satisfactory appraisal are disallowed. An applicant or licensee may submit a valuation of assets by competent appraisal to the Commission for inclusion in computing net worth. If a valuation of assets is submitted and satisfies Commission requirements, no more than seventy percent of appraised value over book value of the assets may be used in determining compliance with net worth requirements. Acceptance of an appraisal is subject to the following:

003.03(J)(i)(c)(1). The appraisal must be prepared by an independent certified appraiser.

003.03(J)(i)(c)(2). The appraisal must be prepared on market, income, and cost approaches.

003.03(J)(i)(c)(3). A one-to-one working capital ratio must be maintained.

003.03(J)(i)(c)(4). Appraisals will only be allowed for 3 years following the date of the appraisal.

003.03(J)(ii) RECEIVABLES.

003.03(J)(ii)(a). Accounts or notes receivables due from related parties, affiliates, or employees are disallowed.

003.03(J)(ii)(b). Accounts receivables due after 1 year are disallowed.

003.03(J)(ii)(c). Accounts or notes receivable under litigation are disallowed.

003.03(J)(ii)(d). Unsecured notes receivables are disallowed.

003.03(J)(ii)(e). Other receivables that are not itemized are disallowed.

003.03(J)(iii) OTHER.

003.03(J)(iii)(a). Prepaid expenses that are not itemized are disallowed.

003.03(J)(iii)(b). Prepaid taxes are disallowed.

003.03(J)(iii)(c). Prepaid loan fees are disallowed.

003.03(J)(iii)(d). Returned checks are disallowed.

003.03(J)(iii)(e). Organization costs are disallowed.

003.03(J)(iii)(f). Stock subscriptions are disallowed.

003.03(J)(iii)(g). Intangible assets including but not limited to goodwill are disallowed.

003.03(J)(iii)(h). Refundable and deferred income taxes are disallowed.

003.03(J)(iii)(i). LLC investments are disallowed.

003.03(K) FILING. Each Grain Dealer shall file a financial statement within 90 calendar days following the close of the licensee's fiscal year, except that, the Commission may grant, upon request and reasonable cause shown, one filing extension of 30 calendar days.

003.04 GRAIN DEALER SECURITY REQUIREMENTS. A grain dealer applicant shall file security which may be a bond issued by a corporate surety company and payable to the Commission, an irrevocable letter of credit, or a certificate of deposit, subject to approval of the Commission for the benefit of any producer doing business with the Grain Dealer who files a valid claim arising from a sale to the Grain Dealer. The security shall be furnished on the condition that the licensee will pay for any grain purchased upon demand, not later than15 days after taking possession of the grain purchased. The liability of the surety shall cover purchases made by the Grain Dealer during the time the bond is in force.

003.04(A) AMOUNT. The security shall be in the amount of the greater of $35,000 or 10% of grain purchases and exchanges by the applicant, in the preceding license year or as reported in the fiscal year-end financial statement, not to exceed $1,000,000 . For purposes of calculating the security, grain purchases and exchanges do not include in-store purchases by a Warehouse, or Grain that passes title at the time of Delivery.

003.04(A)(i). Amounts used in the calculation of the security shall include the net volume and dollar value of the Direct Delivery grain exchanged for a Post-Direct Delivery Storage Position valued on the date Delivery is made.

003.04(A)(ii). Amounts used in the calculation of the security shall not include any transactions in which Direct Delivery grain is exchanged for a Post-Direct Delivery Storage Position and the Post-Direct Delivery Storage Position is created by an In-Store Transfer on the same date as the Delivery of the Direct Delivery grain.

003.04(B) TYPES OF SECURITY.

003.04(B)(i) SURETY BOND. The surety bond shall be issued by a company authorized to conduct business in Nebraska, on a form prescribed by the Commission. Changes to a bond must be on a form prescribed by the Commission.

003.04(B)(ii) CERTIFICATE OF DEPOSIT. A Grain Dealer may deliver certificates of deposit to the Commission in an amount equal to the security required. Upon the deposit of a qualified certificate of deposit with the Commission, the certificate of deposit will be transferred to a financial institution for safe keeping. Any certificate of deposit furnished in lieu of a surety bond shall not be part of the assets of the Grain Dealer and will have the same legal significance as a surety bond. Each certificate of deposit shall be:

A) Issued by a financial institution which is insured by the FDIC or NCUA;

B) In an amount not to exceed the amount for which the account may be insured at the issuing institution; and,

C) Payable to the Nebraska Public Service Commission with interest to be paid to the beneficiary.

003.04(B)(iii) IRREVOCABLE LETTER OF CREDIT. A Grain Dealer may deliver an irrevocable letter of credit or letters of credit to the Commission in an amount equal to or greater than the security required. Each irrevocable letter of credit shall be:

A) Issued by a financial institution which is insured by the FDIC, NCUA, or issued by farm credit institutions chartered by the Farm Credit Administration;

B) Issued for a period at least 90 days longer than the expiration date of the underlying license;

C) Payable to the Nebraska Public Service Commission up to the security liability of the Grain Dealer; and,

D) Issued on a form prescribed by the Commission, incorporated herein at the end of the chapter and labeled as Attachment 17.

003.04(C) COMBINATION OF SECURITY TYPES. If two or more allowable security types are filed with the Commission to satisfy the security requirement, claims against the security will be paid using a pro rata share of each security filing, up to the limit of liability of each filing.

003.04(D) RELEASE OR REDUCTION OF SECURITY.

003.04(D)(i) RELEASE. No security shall be released until 90 days have elapsed from the cancellation, revocation, or expiration of the license, unless the Grain Dealer files another type or types of security as replacement.

003.04(D)(ii) REDUCTION. The Commission may, at its discretion, reduce a security filing as long as the security filing is not reduced below the requirements stated in Subsection 003.04A.

003.04(E). The grain dealer security shall provide security for Direct Delivery grain until any Post-Direct Delivery Storage Position is created for a period not to exceed 15 days after the date of the last shipment of the contract.

003.04(F). No seller shall have recourse to the Grain Dealer’s security unless the seller:

003.04(F)(i). Demands payment from the Grain Dealer within 15 days after the date of the last shipment of any contract;

003.04(F)(ii). Negotiates any negotiable instrument issued as payment for grain by the Grain Dealer within 15 days after its issuance; and

003.04(F)(iii). Notifies the Commission within 15 days after any apparent loss to be covered under the terms of the Grain Dealer’s security.

003.05 RECORDS REQUIREMENTS. Each Grain Dealer shall maintain, at its place of business, accounts of each transaction conducted under its license. The records shall be subject to inspection by the Commission and must include, but are not limited to, the following:

003.05(A) RECEIPTS. Each Grain Dealer, prior to taking possession of grain from a seller, shall issue a writing, in the form of a receipt, contract, bill of lading or other written communication(s) to the seller, or its agent, that includes, but is not necessarily limited to, the following:

003.05(A)(i). The date the Grain Dealer or its agent took possession of the seller's grain.

003.05(A)(ii). The name and address of the buyer.

003.05(A)(iii). The name of the seller.

003.05(A)(iv). The name of the agent of the buyer.

003.05(A)(v). The kind of grain delivered to the buyer.

003.05(A)(vi). The approximate quantity of grain delivered to the buyer.

003.05(A)(vii). The following warning shall be printed on the receipt in eight-point type or larger:

WARNING TO SELLER: You will have no recourse to the grain dealer's security posted with the Nebraska Public Service Commission (“NPSC”) unless you are a Nebraska producer and you: (1) demand payment from the Grain Dealer within 15days after the date of the last shipment of any contract; (2) negotiate any negotiable instrument issued as payment for your grain by the Grain Dealer within 15days after its issuance; and,(3) notify the NPSC, PO Box 94927, Lincoln, NE 68509-4927, within 15 days after an apparent loss. The grain dealer’s security shall provide security for Direct Delivery Grain until a Post-Direct Delivery Storage Position is created for a period not to exceed 15days after date of the last shipment of Grain. Direct Delivery of Grain may affect the eligibility of the Grain for participation in federal price support programs.

Nebraska Law defines a producer as the owner, tenant, or operator of land in this state who has an interest in and receives all or part of the proceeds from the sale of Grain produced on that land.

003.05(A)(viii). All receipts, contracts, bills of lading or other written communications shall be pre-numbered and copies shall be maintained in numeric order.

003.05(B). Checks issued as payment for Grain.

003.05(C). Contracts issued for Grain purchases in Nebraska.

003.05(D) RETENTION. Each Grain Dealer shall, unless otherwise authorized by the Commission, maintain the required records for not less than (5 years.

003.06 STORAGE PROHIBITED. No Grain Dealer may store Grain for any Person unless licensed under the Grain Warehouse Act or US Warehouse Act.

003.07 COMPLAINT PROCEEDINGS. In the event of a notification of an apparent loss under Neb. Rev. Stat. Section 75-905 or if the Grain Warehouse Director or other Commission personnel have reasonable cause to believe that a Grain Dealer has violated the statutes or rules of the Commission, the Director or other Commission personnel will:

003.07(A). File a complaint before the Commission against the Grain Dealer setting forth the alleged violation.

003.07(B). Obtain a hearing date on the complaint.

003.07(C). Notify the Grain Dealer and its security provider of the complaint and hearing date on the complaint.

003.08 SUSPENSION OR REVOCATION OF LICENSE.

003.08(A) SUSPENSION. If the Commission determines that the public good requires it, it may, upon the filing of a complaint and without hearing, temporarily suspend a grain dealer license pending the determination of the complaint.

003.08(B) REVOCATION. The Commission will hold a hearing on any complaint filed against a Grain Dealer by Commission personnel according to the Rules of Commission Procedure. If the Commission finds that the allegations of the complaint are true, it may revoke the defendant's grain dealer license. Further notice and hearing may be ordered to determine whether there are claims against the defendant's security. If any valid claim is determined to exist, the Commission may require the security to be forfeited in whole or in part to satisfy the claims. If the security is insufficient to pay all of the valid claims, the Commission may distribute the security pro rata among the valid claimants.

003.09 CIVIL PENALTY. Any Person who violates the Grain Dealer Act may be assessed a civil penalty by the Commission for one or more, but is not limited to the following violations:

A) Failure to timely file renewal application.

B) Failure to timely complete application process.

C) Failure to timely file financial statement.

D) Failure to timely file security replacement or extension.

E) Failure to maintain accurate, complete or current records.

F) Failure to make payment on demand.

G) Failure to maintain Commission financial requirements.

H) Failure to issue grain dealer receipt to seller.

004 GRAIN MOISTURE MEASURING DEVICES.

004.01 TESTING AND INSPECTION.

004.01(A) SCOPE OF TESTING. The Grain Warehouse Department shall annually test and inspect all approved grain moisture and test weight measuring devices in Nebraska used to ascertain the moisture content of Grain in connection with, or in any manner relating to, the storage, purchase or sale of Grain. The Commission's inspection of grain moisture measuring devices shall be for determining the device’s accuracy in determining moisture content and test weight of grain and is not intended to determine accuracy of the device’s temperature or other measurements.

004.01(B) FEES. The fees charged to cover the cost of testing and inspecting grain moisture and test weight measuring devices shall be established pursuant to Rules of Commission Procedure.

004.01(C) APPROVED GRAIN MOISTURE MEASURING DEVICES. The warehouse department will maintain a list of approved grain moisture and test weight measuring devices. Devices on the approved list must be inspected by the Commission and pass the Commission’s inspection each calendar year. If a device is not inspected each calendar year or it fails to pass an inspection and cannot be repaired, the device will be removed from the list of approved grain moisture and test weight measuring devices. For new grain moisture and test weight measuring devices purchased after 2001 to be included on the list of approved grain moisture and test weight measuring devices, the device must have a current National Type Evaluation Program Certificate at the time of purchase.

004.01(D) PROCEDURE. All grain moisture measuring devices will be tested against a Standard Meter which will be furnished by the Commission. All grain moisture measuring devices will be inspected to determine whether they are in proper operational condition and supplied with the proper accessories. The inspection results shall be documented on a form prescribed by the Commission, with a copy of the inspection report delivered to the owner or user of the grain moisture measuring device.

004.01(E) GROUNDS FOR REJECTING TESTED GRAIN MOISTURE MEASURING DEVICES. Devices may be rejected for any of the following reasons:

004.01(E)(i). The moisture device tested is found to be out of tolerance with the Standard Meter used by the inspector by more than one-half of 1% on grain up to and including 20%moisture content or eight-tenths of 1% on grain over 20%up to and including22%;

004.01(E)(ii). The owner or user of the device does not have available the latest charts for the type of device being used;

004.01(E)(iii). The owner or user of the device does not have available the proper scale, or scales, and the thermometers for use with the type of device being used; or,

004.01(E)(iv). The grain moisture measuring device is not free from excessive dirt or cracked glass, or is not kept in good operational condition at all times.

004.01(F) COMMISSION APPROVAL OR REJECTION. The Commission inspector shall affix a decal to each grain moisture and test weight measuring device which has been inspected to indicate approval or rejection by the Commission.

004.01(G). Procedure for Testing Test Weight Measuring Devices: All test weight measuring devices shall be tested by the inspector against grain samples of known weight.

004.01(H) GROUNDS FOR REJECTING TESTED TEST WEIGHT MEASURING DEVICES. Devices may be rejected if the test weight measuring device is found to be out of tolerance with the sample used by the inspector by more than eight tenths of a pound per bushel for corn and oats, one-half a pound per bushel for all wheat and seven tenths of a pound per bushel for soybeans, barley, sunflower and sorghum.

004.02 REJECTED GRAIN MOISTURE AND TEST WEIGHT MEASURING DEVICES.

004.02(A) MARKING REJECTED GRAIN MOISTURE MEASURING DEVICES. Whenever a grain moisture and test weight measuring device is rejected, for one or more of the grounds specified in Subsections 004.01E and 004.0G, the inspector shall mark the device with a tag or other appropriate seal or mark which will indicate that the device is defective or not properly maintained for use.

004.02(B) REMOVAL OF REJECTION MARK. No tag, seal, or mark, indicating that a grain moisture and test weight measuring device has been rejected, will be removed from the device until after the device has been repaired, placed in proper operational condition, supplied with the proper accessories, reinspected, and approved by the Commission.

004.02(C) USE OF GRAIN MOISTURE AND TEST WEIGHT MEASURING DEVICE WHILE MARKED. A grain moisture measuring device, while marked, sealed, or tagged, as provided in Subsection 004.02A, may not be used to ascertain the moisture content or test weight of grain in connection with, or in any manner relating to, the storage, purchase or sale of grain, except under the following conditions:

004.02(C)(i). The owner or user of the device shall keep a record, open to inspection, of every sample of grain tested by the tagged device, showing that the adjustment was made on all such Grain tested.

004.02(C)(ii). The device will be repaired to comply with Subsections 004.01E and 004.04G within30 days, and the Commission thereupon notified. If, upon reinspection, the device again is rejected under the provisions of Subsections 004.01E and 004.04G, it will be sealed and will not be used until repaired and reinspected.

004.03 PLACEMENT AND VISUAL OPERATION OF GRAIN MOISTURE MEASURING DEVICE. Every device in Nebraska used to ascertain the moisture content or test weight of Grain in connection with, or in any manner relating to, the storage, purchase or sale of Grain, will be used in a location where the test being made may be observed by the producer or owner of the Grain being tested and the detailed procedure for running moisture tests will be displayed in a conspicuous place close to the moisture device.

005 GRAIN PROBES.

005.01 SCOPE. Every Mechanical Probe in Nebraska, used to collect a sample from a load of Grain to determine foreign material content, must be one which has been tested and inspected by the Commission and is listed on the Commission's approved list of Mechanical Probes.

005.02 PROCEDURES. Every person shall notify the Commission at once upon the purchase of a Mechanical Probe or upon the modification of any Mechanical Probe, now in its possession, to be used in collecting a sample from a load of grain to determine foreign material content, in order that the Commission may check and inspect the probe to determine approval or disapproval. Any Mechanical Probe for use in collecting a sample from a load of Grain to determine foreign material content, which does not appear on either the Commission's approved or disapproved list of Mechanical Probes, will be reported to the Commission at once.

005.03 INSPECTIONS AND APPROVAL. The Commission shall place an appropriate seal or tag on all Mechanical Probes being used under Subsection 005.01 to indicate the probe is approved or disapproved by the Commission. The Commission may inspect or re-inspect any Mechanical Probe being used for the purpose of verification.

005.04 HAND TRIER. The Hand Trier is an approved probe.

005.05 END INTAKE AIR PROBES. The use of End Intake Air Probes, which use a vacuum to collect a sample to determine foreign material content from a load of grain, is prohibited.

005.06 APPROVED OR DISAPPROVED MECHANICAL PROBES. The Commission shall maintain a separate current and complete listing of all manufacturers' approved and disapproved probes.

History

• Effective 2025-10-01

Chapter 9 Natural Gas and Pipeline Rules and Regulations

Neb. Admin. Code tit. 291, ch. 9 Natural Gas and Pipeline Rules and Regulations {#sec-291-nac-9 omnilex-key=us-ne-regs-official--title-291--291 NAC 9}

001 GENERAL.

001.01 DEFINITIONS. As used in this chapter, unless the context otherwise requires, the following definitions shall be used.

001.01(A) AFFILIATE. A person or entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with a jurisdictional utility or competitive natural gas provider. A voting interest of 10 percent (10%) or more creates a rebuttable presumption of control.

001.01(A)(i) SHARED RESOURCES AFFILIATE. A person or entity whose primary purpose is to share employees, departments or other physical assets used by the jurisdictional utility.

001.01(A)(ii) AFFILIATE TRANSACTION. The purchase, sale, trade or lease of a good, service, or tangible or intangible asset from the regulated utility to an affiliate, regulated or unregulated other than a shared resources affiliate, or from an affiliate other than a shared resources affiliate to the regulated utility.

001.01(B) AGGREGATOR. A person who combines retail end users into a group and arranges for the acquisition of competitive natural gas services without taking title to those services.

001.01(C) AGRICULTURAL RATEPAYER. A ratepayer whose usage of natural gas does not qualify the ratepayer as a high-volume ratepayer and (a) whose principal use of natural gas is for agricultural crop or livestock production, irrigation pumping, crop drying, or animal feed or food production or (b) whose service is provided on an interruptible basis.

001.01(D) BASE YEAR. Actual investments, expenses, and revenue of a jurisdictional utility for a recently completed 12-month period.

001.01(E) COMMISSION. The Nebraska Public Service Commission.

001.01(F) COMPETITIVE NATURAL GAS PROVIDER OR “CNGP”. A person who takes title to natural gas and sells it for consumption by a retail end-user in the state of Nebraska, and for purposes of this section also means an aggregator as defined in Nebraska Administrative Code, Title 291, Chapter 9, Rule 001.01(B), CNGP includes an affiliate of a Nebraska natural gas public utility. CNGP does not include the following.

001.01(F)(i). A jurisdictional utility, as defined in Nebraska Administrative Code, Title 291, Chapter 9, Rule 001.01(G);

001.01(F)(ii). A city-owned or operated natural gas utility or metropolitan utilities district in areas in which it provides natural gas service through pipes it owns; or

001.01(F)(iii). A natural gas public utility that is not subject to the State Natural Gas Regulation Act as provided in Neb. Rev. Stat. § 66-1803 in areas in which it is providing natural gas service in accordance with Neb. Rev. Stat. § 66-1803.

001.01(G) CONSUMER CHOICE PROGRAM. A program offered by a jurisdictional utility that allows ratepayers, other than high-volume ratepayers, to purchase their gas supplies from a person other than the local gas utility.

001.01(H) FACILITY. New and existing pipelines, rights-of-way, and any equipment, facility, or building used in the transportation of liquid or gas or in the treatment of gas during the course of transportation.

001.01(I) GENERAL RATE FILING. Any filing which requests changes in overall revenue requirements for a jurisdictional utility but does not include other Commission approved riders.

001.01(J) HIGH-VOLUME RATEPAYER. A ratepayer whose natural gas requirements equal or exceed five hundred therms per day as determined by average daily consumption.

001.01(K) JURISDICTIONAL UTILITY. A natural gas public utility subject to the jurisdiction of the Commission. Jurisdictional utility shall not mean a natural gas public utility not subject to the jurisdiction of the Commission pursuant to Neb. Rev. Stat. § 66-1803.

001.01(L) MAJOR OIL PIPELINE. For purposes of Section 023, a major oil pipeline shall mean a pipeline which is larger than six inches (6") in inside diameter and which is constructed in Nebraska for the transportation of petroleum, or petroleum components, products, or wastes, including crude oil or any fraction of crude oil, within, through, or across Nebraska, but does not include infield and gathering lines or major oil pipelines otherwise exempt under the Major Oil Pipeline Siting Act.

001.01(M) METROPOLITAN UTILITIES DISTRICT. A district constituted by an area as defined in Neb. Rev. Stat. § 14-2101.

001.01(N) NATURAL GAS PUBLIC UTILITY. Any corporation, company, individual, or association of persons or their trustees, lessees, or receivers that owns, controls, operates, or manages, except for private use, any equipment, plant, or machinery, or any part thereof, for the conveyance of natural gas through pipelines in or through any part of this state. Natural gas public utility does not mean a natural gas utility owned or operated by a city or a metropolitan utilities district. Natural gas public utility does not include any activity of an otherwise jurisdictional corporation, company, individual, or association of persons or their trustees, lessees, or receivers as to the marketing or sale of compressed natural gas for end use as motor vehicle fuel. Natural gas public utility does not include any gas gathering system or interstate pipeline.

001.01(O) PARTIES. As defined in Nebraska Administrative Code, Title 291, Chapter 1, Rule 001.21.

001.01(P) PERSON. As defined in Nebraska Administrative Code, Title 291, Chapter 1, Rule 001.22.

001.01(Q) PIPELINE. For purposes of Section 023, pipeline shall mean a pipe used to transport, transmit, convey, or store liquid or gas for hire in Nebraska intrastate commerce other than a major oil pipeline, a gathering pipeline, distribution pipeline, or service line.

001.01(R) PIPELINE CARRIER. For purposes of Section 023, pipeline carrier shall mean a person that engages in owning, operating, or managing a major oil pipeline.

001.01(S) PRUDENT. Prudent shall mean that in making a decision a natural gas public utility has acted as any reasonable utility management would have acted in good faith, based upon the facts known or which should have been known at the time the decision was made.

001.01(T) RETAIL END USER. Any person or entity, including any manufacturer or producer of any product, purchasing natural gas for its own consumption, and not for resale or consumption by any other person or entity, without restriction based upon volume of gas consumed.

001.01(U) SAFETY DATA SHEET. Safety data sheet means written or printed material concerning a hazardous chemical that is prepared in accordance with paragraph 29 C.F.R. § 1910.1200(g).

001.01(V) SEASONAL DISCONNECTION CHARGE. A charge applied by a jurisdictional utility to a ratepayer who disconnects and re-connects service at the same premises within a twelve-month period requiring the ratepayer to pay in whole or in part charges for the months he or she was disconnected.

001.01(W) SUPPLIER. A CNGP that participates in a consumer choice program.

001.01(X) TEST YEAR. Either a consecutive twelve-month period commencing on the proposed effective date of the rate increase or a base year adjusted for known and measurable changes.

001.01(Y) UTILITY. A jurisdictional utility as defined in Sec. 001.01K.

002 MINIMUM SAFETY STANDARDS FOR PIPELINES.

002.01 MINIMUM SAFETY STANDARDS. Unless otherwise specified by the Commission, pipeline carriers shall use the applicable provisions of the procedures established by the United States Department of Transportation as codified at 49 CFR 192. These incorporated materials are available for inspection at the offices of the State Fire Marshal or the Nebraska Secretary of State, Division of Rules and Regulations.

002.02 SCOPE. These provisions shall apply to all intrastate pipeline carriers operating within the state.

002.03 FACILITIES, INSPECTION AND REPAIRS. All Facilities shall be cleaned when necessary and inspected at such intervals as the Commission shall determine. Any Facilities known to be defective so as to endanger life or property shall be promptly repaired, permanently disconnected or isolated until repairs can be made.

002.04 WAIVING OF RULES. The rules may be modified or waived by the Commission wherever shown to be impractical or where the advantage of uniformity with existing construction is greater than construction in compliance with the rules providing that the existing construction is equivalently safe to the existing rules.

002.05 WAIVER OF TEMPORARY INSTALLATIONS. These rules may be waived by the Commission in cases of temporary installations for a reasonable length of time provided that such construction is under competent supervision and has been made reasonably safe.

003 DISPUTES BETWEEN UTILITIES AND METROPOLITAN UTILITIES DISTRICTS.

003.01 COMMISSION JURISDICTION. No Utility or Metropolitan Utilities District proposing to extend or enlarge its natural gas service area or extend or enlarge its natural gas mains or natural gas services shall undertake or pursue such extension or enlargement until the proposal has been submitted to the Commission for its determination that the proposed extension or enlargement is in the public interest. Any enlargement or extension by a Metropolitan Utilities District within the boundaries of a city of the metropolitan class involving the exercise of the power of eminent domain pursuant to Neb. Rev. Stat. § 14-2116(2) shall, by reason of such exercise, be conclusively determined to be in the public interest.

003.02 FILING AND CONTENTS OF PROPOSAL. Any proposal for extension or enlargement shall be filed with the Commission, and the Commission shall promptly make such application public in such manner as the Commission deems appropriate. Proposals for multiple extensions or enlargements may be filed in a single document at the discretion of the filing entity.

003.02(A). The proposal shall contain sufficient information so as to provide reasonable notice to any interested party of the location and nature of the proposed extension or enlargement. Such information shall contain, but not necessarily be limited to

003.02(A)(i). A description of the location of the extension or enlargement including any cross streets and a statement as to whether the proposed extensions are entirely or partially within a particular zoning jurisdiction;

003.02(A)(ii). The municipality and subdivision or development, if any, proposed to be served by the proposed extension or enlargement;

003.02(A)(iii). The plat and/or map for the proposed service area depicting the location of known mains of all natural gas utility service within a one-quarter (1/4) mile radius of the area to be served;

003.02(A)(iv). A description of the nature of the extension or enlargement including size and length of the main; and

003.02(A)(v). The anticipated date the filing entity intends to undertake or pursue such extension or enlargement.

003.02(B). The proposal shall be served on any Utility or Metropolitan Utilities District with natural gas infrastructure in the area of the proposed extension or enlargement.

003.02(C). The Commission shall make such proposals public by posting them on the Commission website. Such proposals shall be deemed to have been made public three (3) days after the date of filing.

003.03 PROTESTS. If no Person has filed with the Commission a protest alleging that the proposed extension or enlargement is not in the public interest within fifteen (15) business days after the date upon which the application was made public, the enlargement or extension shall be conclusively presumed to be in the public interest and the filing entity may proceed with the extension or enlargement without further Commission action. If a protest is filed, the filing entity shall have five (5) business days from that date to file a response describing how the proposed extension or enlargement satisfies the criteria set forth in Rule 003. Such response shall be filed on all Parties to the proceeding.

003.04 SUBPOENA AND OTHER POWERS. The Commission staff may administer oaths, compel the attendance of witnesses, examine any of the books, papers, documents and records of any Utility or Metropolitan Utilities District involved in a proceeding pursuant to this section. The Commission may have such examination made by any person that the Commission may employ for that purpose. Such person may also compel the production of such books, papers, documents or records or examine under oath or otherwise any officer, director, agent, or employee of any such party to the proceeding.

003.05 HEARING. Upon the filing of a protest seeking a determination pursuant to this section, the Commission shall set a hearing date not later than ninety (90) days from the date of application except for good cause shown. In no event shall a hearing be set later than six (6) months from the date of application.

003.05(A). A hearing commenced pursuant to this section shall be held in the county where such extension or enlargement of the natural gas service area is proposed.

003.05(B). Ratepayers of the Utility or Metropolitan Utilities District shall have the right to appear and present testimony before the Commission and shall have such testimony considered by the Commission in arriving at its determination.

003.06 FEES. The filing entity may be charged a hearing fee if a hearing is held pursuant to this section.

003.07 PROCEDURE. Except as herein provided, all proceedings will be governed by the Rules of Commission Procedure as codified by state law and Nebraska Administrative Code, Title 291, Chapter 1.

003.08 DETERMINING CONSIDERATIONS. In determining whether a proposed expansion or enlargement is in the public interest, the Commission shall consider:

003.08(A). The economic feasibility of the extension or enlargement;

003.08(B). The impact the enlargement will have on the existing and future natural gas ratepayers of the Metropolitan Utilities District or the Utility;

003.08(C). Whether the extension or enlargement contributes to the orderly development of natural gas utility infrastructure;

003.08(D). Whether the extension or enlargement will result in duplicative or redundant natural gas utility infrastructure; and,

003.08(E). Whether the extension or enlargement is applied in a non-discriminatory manner.

003.08(F). Any books, records, vouchers, papers, contracts, designs, or other data not made available to the parties shall not be considered by the Commission in making its determination of whether an extension or enlargement of a service area is in the public interest.

003.09 REBUTTABLE PRESUMPTIONS. In determining whether an extension or enlargement of a natural gas service area, natural gas mains, or natural gas services is in the public interest, the following rebuttable presumptions shall govern:

003.09(A). Any enlargement or extension by a Metropolitan Utilities District within a city of the metropolitan class or its extraterritorial zoning jurisdiction is in the public interest;

003.09(B). Any enlargement or extension by a Utility within a city of the primary, first, or second class or village in which it serves natural gas on a franchise basis or its extraterritorial zoning jurisdiction is in the public interest; and,

003.09(C). Any enlargement or extension by a Metropolitan Utilities District within its statutory boundary or within a city of the first or second class or village in which it serves natural gas on a franchise basis or its extraterritorial zoning jurisdiction is in the public interest.

003.10 COMMISSION ORDERS. Except for good cause shown, the Commission shall enter an order within thirty (30) days after completion of the hearing or after submission of affidavits in non-hearing proceedings.

003.11 APPEALS. Any party to a proceeding may appeal to the Court of Appeals to reverse, vacate or modify the order of the Commission.

003.12 ENFORCEMENT. The Commission is empowered to enforce its order as provided for by law.

003.13 SCOPE. The provisions of Rule 003 apply only in those geographic areas in Nebraska in which a Utility or Metropolitan Utilities District each maintain natural gas Facilities and compete with each other for natural gas service customers.

004 GENERAL RATE FILINGS.

004.01 APPLICATION.

004.01(A). The Utility filing an application for a general rate increase shall file with the Commission an electronic copy and three (3) paper copies. The electronic application shall be in PDF format, and also include a copy of all text documents in Microsoft Word and all spreadsheets in Microsoft Excel. Some portions of the application may be filed exclusively in electronic format. The determination on exclusive electronic filing shall be made in consultation between the Parties and the Commission. The date of electronic filing shall be the official filing date with the Commission. Paper copies of the application may be filed up to five (5) business days following electronic filing. Paper applications must be filed with the Executive Director at the Nebraska Public Service Commission, 1200 “N” Street, Suite 300, Lincoln, Nebraska 68508. Electronic applications and filings shall be submitted either via email to psc.naturalgas@nebraska.gov or other electronic media.

004.01(B). The application shall include the information and be organized as set forth below in Sections 004.02 through and including Section 004.08. The application shall also be verified by a statement under oath by an officer of the Utility.

004.01(C). The Utility shall provide in electronic format all workpapers used to prepare the analysis and data submitted in support of application and any source documents referenced in the application, prefiled direct testimony, or exhibits, including but not limited to, contracts, internal reports, summaries of billing, FERC account data, any models utilized or relied on in the application, and any documents detailing calculations in support of the application. Any documents submitted electronically shall be provided in hard copy at the request of the Commission. Applicant is not required to provide in its filing documents cited in curriculum vitae.

004.01(D). to § 66-1840, each applicant or other participant in the proceeding will be billed costs and expenses reasonably attributable to certification and dispute resolution, including Commission time, billed on an hourly basis, spent reviewing, analyzing and considering the application.

004.02 SECTION I - GENERAL INFORMATION. Section I shall include:

004.02(A). The reasons and explanations for the proposed rate change;

004.02(B). A description of the Base Year and Test Year;

004.02(C). A description of the proposed revenue increase; number and classifications of affected rate payers; average increase per rate payer; volumes per classification; the existing and proposed rates by classification;

004.02(D). A financial summary showing aggregate amounts for rate base, operating expenses, and rate of return for the Base Year and Test Year, and an itemized list of all adjustments made from Base Year to Test Year;

004.02(E). A financial summary showing operating revenues calculated using natural gas rates in effect and natural gas rates as proposed;

004.02(F). Diagram and description of corporate structure, Affiliates, and Shared Resource Affiliates;

004.02(G). Financial statements for the most recent fiscal year;

004.02(H). The most recent annual report to stockholders, if any;

004.02(I). A list of witnesses and subjects on which they are to provide testimony ; and

004.02(J). A redlined version of the current tariff showing the proposed changes.

004.03 SECTION II - RATE BASE SCHEDULES. Section II shall include:

004.03(A). Rate-base schedules showing beginning and ending balances for the Base Year and Test Year with an itemized list of all adjustments to the Base Year with explanation and corresponding calculations. The schedules shall include,

004.03(A)(i). Utility plant and accumulated depreciation and amortization showing the balances by functional account totals;

004.03(A)(ii). Working capital, showing the manner in which it is calculated; and

004.03(A)(iii). Any other rate- base components clearly notated.

004.03(B). Allocated rate-base components showing the manner in which the components are calculated; and

004.03(C). Construction work in progress including a description of the nature and location of the project; budgeted cost; actual expenditures to date; expected completion date and any revenue to be generated from the project.

004.04 SECTION III – OPERATING EXPENSE SCHEDULES. Section III shall include:

004.04(A). Operating expense schedules for the Base Year and Test Year with an itemized list of all adjustments to the Base Year with explanation and corresponding calculations;

004.04(B). A copy of the depreciation study that was used to determine the depreciation rates used;

004.04(C). Legislative advocacy expenses sought in the application, whether made directly or indirectly, including but not limited to, legislative advocacy expenses included in professional or trade association dues;

004.04(D). Funds expended in support of or in opposition to political candidates and sought in the application;

004.04(E). Funds expended in promotion of or in opposition to political or religious causes and sought in the application;

004.04(F). Funds expended in support of or membership in social, recreational, fraternal, or religious clubs or organizations;

004.04(G). Schedules detailing all Affiliate Transactions; and

004.04(H). Cost allocation manual including description of any changes made since the cost allocation was last approved.

004.05 SECTION IV – RATE OF RETURN AND COST OF CAPITAL SCHEDULES. Section IV shall include:

004.05(A). The Utility’s actual and proposed capital structure;

004.05(B). A summary report of the proposed overall rate of return that includes the weighted cost of capital analysis;

004.05(C). A listing of all debt, preferred stock, and common equity amounts, ratios, and percentage cost rates for the Base Year and Test Year; and

004.05(D). A listing of all debt, preferred stock, and common equity amounts at the beginning and end of the Base Year and Test Year.

004.06 SECTION V – OPERATING REVENUE SCHEDULES. Section V shall include:

004.06(A). Schedules showing operating revenues by major revenue category, including other operating revenues and uncollectible operating revenues, with an itemized list of all adjustments to the Base Year with explanation and corresponding calculations;

004.06(B). Number and classification of customers, volume of sales, and operating revenue by customer classes for the Base Year on an unadjusted basis; and

004.06(C). Number and classification of customers, volume of sales, and operating revenue by customer classes for the Test Year on a normalized basis.

004.06(C)(i). Using current rates.

004.06(C)(ii). Using proposed rates.

004.06(D). The gross conversion factor calculation to show the necessary gross revenue increase to realize $1.00 of net revenue increase, primarily due to tax effects.

004.07 SECTION VI – COST-OF-SERVICE STUDY. Section VI shall include:

004.07(A). A fully-allocated cost-of-service study including both allocations of jurisdictional and non-jurisdictional activity and allocations between classes of ratepayers to demonstrate compliance with Section 66-1825(10).

004.07(B). The Utility shall, beginning on the date the application is filed, provide the Commission and its designees and Formal Intervenors reasonable and convenient access to an electronic copy of the cost-of-service study model to be used by the Utility in the rate case.

004.08 SECTION VII – PREFILED DIRECT TESTIMONY AND EXHIBITS. Prefiled direct testimony and exhibits to be offered at the hearing with all portions in which the Utility desires confidential treatment clearly marked pursuant to Nebraska Administrative Code, Title 291, Chapter 9, Rule 006. Prefiled testimony or exhibits shall not be modified once filed except for typographical errors or mistakes, or where all parties to the proceeding agree to the change or where the Commission permits for good cause shown.

004.09 ALTERNATE COST OF SERVICE STUDY MODELS. Any Party intending to offer evidence based upon a cost-of-service study model other than the model utilized by the Utility, shall provide all Parties.

004.10 USE OF DISCOVERY IN GENERAL RATE FILING PROCEEDINGS. The Commission may apply the Discovery Rules of the Nebraska Supreme Court in General Rate Filings before the Commission. Unless the Commission otherwise orders, the time period for answering data requests in General Rate Filings is up to ten (10) days. For good cause shown, the time period may be extended by the Commission. All Parties to a General Rate Filings may object to requests that are not permissible under the rules and regulations of the Nebraska Supreme Court regarding use of depositions and discovery. A responding Party shall respond with objections to any data requests within five (5) days. For good cause shown, the time period may be extended by the Commission.

004.11 NOTICE OF ASSESSMENT. Upon the filing of a General Rate Filing, the Commission shall give the jurisdictional utility notice by electronic and United States mail of the applicable assessment for expenses reasonably attributable to such General Rate Filing proceeding, including both direct and indirect expenses incurred pursuant to Neb. Rev. Stat. § 66-1840.

004.12 FILING OF INTERVENOR DOCUMENTS. Parties filing testimony and exhibits in response to an application for a General Rate Filing shall file with the Commission an electronic copy and three (3) paper copies. The electronic copies shall be in PDF format, and also include a copy of all text documents in Microsoft Word and all spreadsheets in Microsoft Excel. Some portions of the documents may be filed exclusively in electronic format. The determination on exclusive electronic filing shall be made in consultation between the Parties and the Commission. The date of electronic filing shall be the official filing date with the Commission. Paper copies may be filed up to five (5) business days following electronic filing. Paper copies must be filed with the Executive Director at the Nebraska Public Service Commission, 1200 “N” Street, Suite 300, Lincoln, Nebraska 68508. Electronic filings shall be submitted either via email to psc.naturalgas@nebraska.gov or other electronic media.

004.12(A). Parties shall provide in electronic format all workpapers used to prepare the analysis and data submitted in response to the application and any source documents referenced in the prefiled direct testimony, or exhibits including but not limited to contracts, internal reports, any models utilized or relied on, and any other documents detailing calculations in support of the filing. Any documents submitted electronically shall be provided in hard copy at the request of the Commission. Parties are not required to provide documents cited in curriculum vitae. Prefiled testimony and exhibits shall not be modified once filed except for typographical errors or mistakes, where all parties agree to the change, or where the Commission permits for good cause shown.

004.13 EXEMPTION FROM RULES. A Utility, whose current rates were approved through and following negotiations and agreement with affected cities and who seeks negotiation of a general rate application with affected cities pursuant to Neb. Rev. Stat. § 66-1838, shall be exempt from the requirements of Sections 004.01C and 004.04H. Should negotiations fail to result in an agreement upon new rates, the Utility shall file with the Commission the information required in Sections 004.01C and 004.04H within ten (10) days after the date of the expiration of the negotiation period or after the date upon which the Utility and the cities file a written agreement that the negotiations have failed, whichever is earlier.

005 RATE PRINCIPLES.

005.01 RULE PROVISIONS. The provisions of Rule 005 apply only to General Rate Filings governed by § 66-1838. No provision included in Rule 005 shall be construed as prohibiting the Commission from approving a settlement agreement that the Commission finds to be just and reasonable and in the public interest.

005.02 COST OF SERVICE. Except as provided for in any section of the State Natural Gas Regulation Act or these rules dealing with fuel expenses, rates are to be based upon a Utility’s cost of rendering service to the public during a Test Year.

005.03 COMPONENTS OF COST-OF-SERVICE. The two components of cost-of-service are allowable expenses and return on invested capital.

005.04 ALLOWABLE EXPENSES. Only those expenses which are Prudent may be included in allowable expenses. Expenses incurred by a Utility or a Shared Resource Affiliate shall be presumed to be Prudent unless the contrary is shown.

005.05 RETURN ON RATE BASE. The return on rate base is the rate of return multiplied by rate base.

005.05(A) RATE OF RETURN. The Commission must allow each Utility a reasonable opportunity to earn a reasonable rate of return, which is expressed as a percentage of invested capital, and must fix the rate of return in accordance with Neb. Rev. Stat. §§ 66-1825(3) and (5) including:

005.05(A)(i). The rate of return in one rate case shall not be precedential in future rate cases.

005.05(A)(ii). In each case, the Commission must consider the Utility's cost of capital, which is the weighted average of the cost of the various classes of capital used by the Utility.

005.05(A)(ii)(a) DEBT CAPITAL. The cost of debt capital is the actual cost of debt.

005.05(A)(ii)(b) EQUITY CAPITAL. The cost of equity capital must be based upon a fair return on its value. For companies with ownership expressed in terms of shares of stock, equity capital commonly consists of the following classes of stock:

005.05(A)(ii)(b)(i) COMMON STOCK CAPITAL. The cost of common stock capital must be based upon a fair return on its value.

005.05(A)(ii)(b)(ii) PREFERRED STOCK CAPITAL. The cost of preferred stock capital is its annual dividend requirement, if any, plus an adjustment for premiums, discounts, and cost of issuance.

005.06 RATE BASE. The rate of return is applied to the rate base. Rate base shall mean:

005.06(A). The original cost of utility property, including utility plant, property, and equipment, used and useful in rendering service to the public. Original cost shall be the actual money value, including any consideration paid other than money, of the property at the time it shall have been dedicated to public use, whether by the Utility as the present owner or by a previous owner; less

005.06(B). Related accumulated depreciation and amortization, computed on a straight-line basis unless otherwise ordered by the Commission; less

005.06(C). Ratepayer deposits and advances, contributions in aid of construction, and other sources of cost-free capital; less

005.06(D). Accumulated reserve for deferred and unamortized income tax liabilities, adjusted to reflect any accumulated deferred income tax assets related to plant included in section 005.06A above; plus

005.06(E). Unamortized investment tax credit to the extent allowed by the Internal Revenue Code; plus

005.06(F). Contingency and/or property insurance reserves; plus

005.06(G). Working capital, including, but not limited to:

005.06(G)(i). Prudent inventories of materials and supplies held specifically for purposes of permitting efficient operation of the Utility in providing normal utility service;

005.06(G)(ii). A Prudent allowance for cash working capital, or investor supplied funds to enable the Utility to pay current operating expenses between the time when the expenses of rendering utility service are paid and the time when revenues for that service are collected from ratepayers, including any study and/or calculations used; and

005.06(G)(iii). Prudent prepayments for operating expenses not included within the calculation of cash working capital.

005.06(H). Payments to affiliated interests shall not be allowed as a capital cost except as provided in Rule 005.07.

005.06(I). Acquisition adjustments comprised of the difference between the purchase price of an acquired operating unit or system and the depreciated original cost of the acquired property, shall be considered on a case-by-case basis.

005.06(J) COMPLETION AND DEDICATION OF PROPERTY. The rate base shall ordinarily consist only of those items which are used and useful in providing service to the public. This may include items completed and dedicated to commercial service for which construction will be commenced and completed within one year or less from the end of the Test Year. The Commission may also determine that property which has not been completed and dedicated to commercial service may be used and useful and included in the rate base. In determining whether construction work in progress should be included in the rate base, the Commission may consider whether projects under construction are Prudent. To aid the Commission in determining the prudency of any construction work in progress sought by the Utility to be included in rate base, the Utility shall provide the following in its application:

005.06(J)(i). Information for each project sought including: project description; location; purpose; date construction began; expected completion date; actual costs incurred as of the end of the test year; and total expected cost of the project at completion;

005.06(J)(ii). Discussion of each project including showing why the project is necessary to the provision of safe and reliable gas service;

005.06(J)(iii). How project costs are being financed, debt or internally generated capital; and

005.06(J)(iv). Information as to why it is necessary the project be included in rates before it is complete and in service;

005.06(K) SELF-INSURANCE RESERVE ACCOUNTS. Self-insurance plans may be included in the rate base at the discretion of the Commission.

005.06(L) REQUIREMENTS FOR POST TEST YEAR ADJUSTMENTS. Post Test Year adjustments are permitted for known and measurable rate base adjustments to the Test Year where the Utility accounts for any related impacts on all aspects of the Utility’s operations. Related impacts are those that reasonably follow as a consequence of the post Test Year adjustment being proposed, including a related impact of another post Test Year adjustment.

005.07 PAYMENTS TO AFFILIATES. The Utility has the burden to demonstrate that any cost paid to an Affiliate for any goods or services are Prudent. The Utility has the burden to demonstrate all of the following before any amount paid to an Affiliate, other than a Shared Resource Affiliates, either, as a capital cost or an expense, is included in rates except as provided in Neb. Rev. Stat. § 66-1825(8):

005.07(A). Each payment is Prudently incurred for each item or class of items at the time incurred; and

005.07(B). The costs charged by an Affiliate reasonably approximate the market value of the service provided.

006 CONFIDENTIAL INFORMATION.

006.01 CONFIDENTIAL INFORMATION FILED WITH APPLICATIONS. The Party filing documents must indicate any information which is claimed to be confidential. In the event other Parties are admitted to the proceeding, the Party seeking confidential treatment shall file a motion for a protective order. The motion shall include a clear statement of the specific grounds and legal authority for the claim of confidentiality. The motion for protective order must be decided within ten (10) calendar days from the date the motion is filed. Parties opposing the motion may file an objection to the motion within five (5) calendar days.

006.01(A). If an applicant contends any portion of the application, prefiled testimony, or exhibits are confidential, it must file an electronic copy and three (3) hard copies of the application, prefiled testimony and exhibits redacting the asserted confidential information marked “PUBLIC”, The applicant must also file an electronic version and three (3) hard copies under seal on yellow paper marked “CONFIDENTIAL”, Some portions of the public and/or confidential application may be filed exclusively in electronic format. The determination on exclusive electronic filing shall be made in consultation between the Parties and the Commission. The date of electronic filing shall be the official filing date with the Commission. Paper copies of the application may be filed up to five (5) business days following electronic filing. Electronic filings shall be submitted either via email to psc.naturalgas@nebraska.gov or other electronic media.

006.02 OTHER CONFIDENTIAL FILINGS. Any Utility seeking to prevent disclosure of information filed with the Commission must file such information electronically clearly marked “CONFIDENTIAL” and in hard copy on yellow paper marked “CONFIDENTIAL.” Electronic filings shall be submitted either via email to psc.naturalgas@nebraska.gov or other electronic media. Disclosure of confidential information will be governed by Neb. Rev. Stat. § 66-1829.

007 RATE AREA MAPS. Each Utility shall keep a map on file with the Commission of its rate area(s). The map must show the boundaries of each rate area and intervening and adjacent rural territories served within each rate area. Upon a change to any rate area(s), a revised map of the rate area, reflecting all changes in boundaries, must be filed with the Commission. Such changes will become effective upon filing the revised map with the Commission.

008 TARIFF FILINGS.

008.01 APPLICABILITY. This section applies to all Utilities.

008.02 EFFECTIVE TARIFF. No Utility shall directly or indirectly offer a service, collect any rate or charge, give a compensation or discount to a ratepayer, or impose any classification practice, or regulation different from that which is prescribed in its effective tariff filed with the Commission. The tariff may include mathematical formulas that express the pricing terms for service.

008.03 TARIFF FILINGS. Every Utility must publish and file with the Commission copies of a tariff showing all schedules of rates and terms and conditions of jurisdictional service to ratepayers, and must furnish the Commission copies of all terms and conditions of service and contracts between Utilities pertaining to any and all jurisdictional services to be rendered by such Utilities. The provisions of such tariff must be definite and so worded as to minimize the ambiguity or the possibility of misinterpretation.

008.03(A) AUTHORITY. If a tariff sheet is issued under specific authority or decision of the Commission, each sheet so affected must show the appropriate citation.

008.04 FILING OF TARIFFS. All tariff filings must be submitted electronically in a Commission approved format via email to psc.naturalgas@nebraska.gov. A cover page of the tariff must contain the name of the Utility and the location of its principal office. Each rate schedule must clearly state the rate area and city wherein such rate schedule is applicable. Tariff sheets are to be numbered consecutively per schedule. Each sheet must show an effective date, a revision number, section number, sheet number, name of the Utility, name of the tariff, and title of the section in a consistent manner. The Commission shall acknowledge receipt of the tariff upon filing.

008.05 COMPOSITION OF TARIFFS. The tariff must contain sections and subsections setting forth:

008.05(A). A table of contents;

008.05(B). A list of the cities in which service is provided;

008.05(C). A map showing the areas in which service is provided;

008.05(D). A brief description of the Utility’s operations;

008.05(E). The rate schedules; and

008.05(F). The terms of service, including any service agreement forms.

008.06 REVISIONS TO TARIFFS. When a change is proposed to a tariff, the Utility shall file new tariff sheet(s) incorporating the changes and also tariff sheet(s) in legislative or redline format.

008.07 AVAILABILITY OF TARIFFS. Each Utility shall make available to the public a copy of its tariff currently on file with the Commission. Such tariff shall be available on the Utility’s website and at each of its business offices or designated sales offices within Nebraska which provide in-person service to ratepayers. A Utility’s employees shall assist persons seeking information on its tariffs and shall make a copy of the tariff available for review if requested and provide copies of any portion of its tariff upon request.

008.08 REJECTION OF FILINGS. The Commission may reject any filing under this rule if the Utility fails to comply with the provisions as set forth in this rule.

009 SERVICE TO HIGH VOLUME, AGRICULTURAL AND INTERRUPTIBLE RATEPAYERS.

009.01 WRITTEN NOTICE OF ANY CHANGES. For purposes of Neb. Rev. Stat. § 66-1810, a written notice of any change shall be sent to the Commission and affected agricultural and interruptible ratepayers and published in a legal newspaper prior to the effective date of the change.

010 CERTIFICATION OF JURISDICTIONAL UTILITIES.

010.01 CERTIFICATION OF PUBLIC CONVENIENCE. Except as otherwise provided herein, no Utility shall transact business in Nebraska until it has obtained a certificate from the Commission that public convenience will be promoted by the transaction of the business and permitting the applicants to transact the business of a Utility in the state. By operation of Neb. Rev. Stat. § 66-1853(3), all Utilities transacting business in this state as of May 31, 2003 were issued a certificate of public convenience based upon its natural gas service as of that date.

010.01(A). Every Utility shall be required to furnish reasonably adequate and sufficient service and Facilities for the use of any and all products or services rendered, furnished, supplied, or produced by such Utility.

010.02 FILING REQUIREMENTS AND APPLICATION PROCESS. Applications for a certificate of public convenience must contain all of the following information and must include prefiled testimony in support of the application showing:

010.02(A). The legal name under which the applicant will operate, a description of the business structure of the applicant, evidence of authority to do business in Nebraska, certificates of registration by the Nebraska Secretary of State for all trade names under which the applicant will operate, and the applicant’s state of incorporation. The applicant will also provide any other names under which it does business outside the state of Nebraska.

010.02(B). The names, business addresses and business telephone numbers of the principal officers of the applicant, or its representatives, who can be contacted regarding its operations in Nebraska and telephone number(s) at which the applicant can be contacted.

010.02(C). Identification of Affiliates, partnerships, political subdivisions, or other joint ventures, including those Affiliates, partnerships, political subdivisions or other joint ventures that are certified under this section. In addition to a listing of the names, addresses, and business purpose of Affiliates, partnerships, or other joint ventures required herein, the applicant(s) must also provide a listing of the names and addresses of all the applicant’s Affiliates, partnerships, political subdivisions, or other joint ventures engaged in the provision of competitive natural gas services in any other state.

010.02(D). A listing of all legal actions and formal complaints pertaining to the provision of natural gas services filed against the applicant or its Affiliates at a public utility regulatory body other than the Commission that were filed or pending in the five (5) years prior to the date of the request for certificate, including identification of the title and number of applicable proceedings and a copy of the final orders in such proceedings or the citation to the website where the text of the orders can be found.

010.02(E). Identification of the states and jurisdictions in which the applicant or an Affiliate, partnership, or other joint venture has had a license or certificate to supply competitive natural gas services suspended, revoked, or denied, or where the applicant, partnership, or other joint venture has voluntarily withdrawn from providing service due to financial or operational reasons. Applicant must include identification of the title, caption, and docket number of any applicable proceedings and either (i) a copy of any final orders and court appeals in such proceedings or (ii) the citation to the website where the text of the orders can be found.

010.02(F). A demonstration that the applicant is ready, willing and able to provide service under the State Natural Gas Regulation Act and other applicable laws of the state of Nebraska, and not in violations thereof, and that the public convenience in Nebraska will be promoted by the transaction of the business by allowing the applicants to transact the business of a Utility in the state. The applicant will further demonstrate that it possesses the operational and financial capability to furnish reasonably adequate and sufficient service and Facilities for the use of any and all products or services rendered, furnished, supplied, or produced by such Utility. The applicant must submit a roster of officers and directors, a description of the professional backgrounds of the applicant’s principal managerial and technical personnel, an operational flow chart, and a description of the applicant’s Facilities and the services it intends to render. A request for confidential treatment for information contained within the application may be filed with the Commission, pursuant to Nebraska Administrative Code, Title 291, Chapter 9, Rule 006.

010.02(G). The applicant shall file an electronic copy and three (3) paper copies of the application with the Commission. Electronic applications shall be submitted either via email to psc.naturalgas@nebraska.gov or other electronic media. The date of electronic filing shall be the official filing date with the Commission. Paper copies of the application may be filed up to five (5) business days following electronic filing. Paper Applications must be filed with the Director of the Nebraska Public Service Commission, 1200 “N” Street, Suite 300, Lincoln, Nebraska 68508.

010.02(H). An applicant must notify the Commission during the pendency of the certification request of any material change in the representations and commitments required by this subsection within fourteen (14) days of such change. Any new legal actions or formal complaints are considered material changes in the request. Once certified, Utilities must notify the Commission of any material change in the representations and commitments required for certification within fourteen (14) days of such change.

010.03 ASSESSMENT FOR UTILITIES. Pursuant to Neb. Rev. Stat. § 66-1840, the applicant shall be billed the costs and expenses reasonably attributable to the certification process and any dispute resolution associated with the application pursuant to Rule 010.03. Such costs shall include Commission time spent reviewing, analyzing, and considering the application and costs of the Public Advocate attributable to the application process.

011 CERTIFICATION OF COMPETITIVE NATURAL GAS PROVIDERS AND AGGREGATORS.

011.01 GENERAL REQUIREMENT TO OBTAIN CERTIFICATE. A person must not provide competitive natural gas services to a Nebraska Retail End-User, including a High-Volume Ratepayer, without a certificate approved by the Commission pursuant to Neb. Rev. Stat. § 66-1849. A certified CNGP shall not be required to obtain a separate certificate as an Aggregator in order to perform services as an Aggregator.

011.02 FILING REQUIREMENTS AND APPLICATION PROCESS. Applications for a certificate to provide competitive natural gas services must contain all of the following information:

011.02(A). The legal name under which the applicant will operate, a description of the business structure of the applicant, evidence of authority to do business in Nebraska, certificates of registration by the Nebraska Secretary of State for all trade names under which the applicant will operate, and the applicant’s state of incorporation.

011.02(B). The names, business addresses and business telephone numbers of the principal officers of the applicant who can be contacted regarding its operations in Nebraska and telephone number(s) at which the CNGP can be contacted 24 hours a day.

011.02(C). A listing of each state in which the applicant currently conducts business or has applied for certification or a permit to provide competitive natural gas service. For pending applications of authority include the date each pending application was filed and the disposition of all applications.

011.02(D). Identification of Affiliates that are certified under this section and a listing of the names and addresses of all the applicant’s Affiliates engaged in the provision of competitive natural gas services in any other state, and a list of states in which any other Affiliate operates.

011.02(E). A listing of all legal actions and formal complaints pertaining to the provision of competitive natural gas services filed against the applicant or its Affiliates at a public utility regulatory body other than the Commission that were pending in the twelve (12) months prior to the date of the request for certificate, including identification of the title and number of applicable proceedings and a copy of the final orders in such proceedings or the citation to the website where the text of the orders can be found.

011.02(F). Identification of the states and jurisdictions in which the applicant or an Affiliate has had a license or certificate to supply competitive natural gas services suspended, revoked, or denied, or where the applicant has voluntarily withdrawn from providing service due to financial or operational reasons. Applicant must include identification of the title and number of any applicable proceedings and a copy of any final orders in such proceedings or the citation to the Website where the text of the orders can be found.

011.02(G). A demonstration that the applicant has the operational capability to obtain and deliver the services it proposes to offer. As a demonstration of the applicant’s operational capability, the applicant must submit a roster of officers and directors, a description of the professional backgrounds of the applicant’s principal managerial and technical personnel, an operational flow chart, and a description of the applicant’s Facilities and the services it intends to render.

011.02(H). A demonstration that the applicant has the financial capability to obtain and deliver the services it proposes to offer. The applicant shall submit certified financial statements including, but not limited to, a balance sheet, statement of income, statement of cash flow, and, if applicable, a statement of shareholders’ equity and the applicant’s debt structure, including bond rating. If certified financial statements are not available, applicant shall provide such information as the Commission requires to satisfy this provision. At a minimum, financial statements shall adhere to generally accepted accounting principles (GAAP). For purposes of determining evidence of adequate financing, the following minimum criteria shall be met:

011.02(H)(i). A minimum positive capitalization of $200,000. Capitalization shall include all components of equity and total long and short-term debt and can include, but is not limited to, all classes of capital stock, additional paid-in capital, treasury stock, retained earnings, accumulated deficit, preferred stock, long and short-term debt.

011.02(H)(ii) POSITIVE WORKING CAPITAL. For purposes of determining working capital, working capital shall be defined as the excess of an entity’s current assets over its current liabilities.

011.02(I) CONFIDENTIAL TREATMENT. A request for confidential treatment for information contained within the application may be filed with the Commission, pursuant to Nebraska Administrative Code, Title 291, Chapter 9, Rule 006.

011.02(J). The applicant shall file an electronic copy and three (3) paper copies of the application with the Commission. Electronic applications shall be submitted either via email to psc.naturalgas@nebraska.gov or other electronic media. The date of electronic filing shall be the official filing date with the Commission. Paper copies of the application may be filed up to five (5) business days following electronic filing. Paper applications must be filed with the Executive Director at the Nebraska Public Service Commission, 1200 “N” Street, Suite 300, Lincoln, Nebraska 68508. An application fee must be included with the application to cover the administrative costs of accepting and processing a filing. In addition, each applicant will be billed costs and expenses reasonably attributable to certification and dispute resolution to applicants and participants to the proceeding, including Commission time, billed on an hourly basis, spent reviewing, analyzing and considering the application.

011.02(K). An applicant must notify the Commission during the pendency of the certification request of any material change in the representations and commitments required by this subsection within fourteen (14) days of such change. Any new legal actions or formal complaints are considered material changes in the request. Once certificated, CNGPs must notify the Commission of any material change in the representations and commitments required for certification within fourteen (14) days of such change.

011.03 ASSESSMENT FOR CNGPS AND AGGREGATORS. Pursuant to Neb. Rev. Stat. § 66-1849(3), the Commission shall allocate the costs and expenses reasonably attributable to certification and dispute resolution as authorized in this section to persons identified as parties to such proceeding who are engaged in or who seek to engage in providing natural gas services or other persons identified as participants in such proceeding. The funds received for the costs and expenses of certification and dispute resolution shall be remitted to the State Treasurer for credit to the Public Service Commission Regulation Fund.

011.04 CONDITIONS OF CERTIFICATION. Failure to comply with the following conditions of certification may result in revocation of the certificate.

011.04(A) UNAUTHORIZED CHARGES. A CNGP must not charge or attempt to collect any charges from Retail End Users for any competitive natural gas services or equipment used in providing competitive natural gas services not contracted for or otherwise agreed to by the Retail End Users.

011.04(B) NOTIFICATION OF EMERGENCIES. Upon receipt of information from a Retail End User of the existence of an emergency situation with respect to delivery service, a CNGP must immediately contact the appropriate Natural Gas Public Utility whose Facilities may be involved. The CNGP must also provide the Retail End User with the emergency telephone number of the Natural Gas Public Utility.

011.04(C) BOND REQUIREMENT. The Commission may require the applicant to file a bond or other demonstration of its financial capability to satisfy claims and expenses that can reasonably be anticipated to occur as part of operations under its certificate, including the failure to honor contractual commitments. The adequacy of the bond or demonstration shall be determined by the Commission and reviewed by the Commission from time to time. In determining the adequacy of the bond or demonstration, the Commission shall consider the extent of the services to be offered, the size of the provider, and the size of the load to be served, with the objective of ensuring that the Commission’s financial requirements do not create unreasonable barriers to market entry.

011.04(D) ANNUAL CNGP REPORT REQUIREMENT. No later than September 1st of every year, each CNGP shall file with the Commission a report stating the total annual dekatherms delivered to customers of a Utility within each Utility rate area in the preceding year beginning July 1 and ending June 30, the total number of customers of a Utility served, and the total revenues associated with the sale of natural gas to all jurisdictional customers within each Utility rate area in such year.

011.04(D)(i). All reports required under this section shall be under oath and shall be identified with the name of the CNGP as it appears in the most recent Commission order granting the CNGP certification.

011.04(D)(ii). All reports made to the Commission by a CNGP and the contents thereof shall be open to public inspection, unless otherwise ordered by the Commission.

011.04(D)(iii). When any report is erroneous or defective or appears to the Commission to be erroneous or defective, the Commission may notify the CNGP to amend that report within thirty (30) days, and before or after the termination of the period the Commission may examine the officers, agents, or employees, and books, records, accounts, vouchers, plant, equipment and property of the CNGPs, and correct items in the report the Commission finds defective or erroneous.

011.04(E) RESTRICTIONS. The Commission may, pursuant to Neb. Rev. Stat. § 66-1849, establish reasonable conditions or restrictions on a certificate of a CNGP at the time of issuance.

011.04(F) REPRESENTATIONS. No representation or warranty made by an applicant shall be false or misleading in any material respect when made or when deemed made.

012 COMPLAINT HANDLING PROCEDURES. Customers complaints about natural gas service or billing issues should first be made to the Utility. The Utility must allow complaints to be accepted and processed in a simple manner and form. Every complaint shall be promptly investigated in a fair manner and the results reported to the complainant. If the report of the investigation is made orally, the Utility must provide the complainant, upon request, a report in writing. If a Utility fails to resolve a complaint to the satisfaction of the complainant, the Utility must, upon request, inform the complainant of the availability of the Commission to review the Utility’s investigation, including the Commission’s address and telephone number.

012.01 SUSPENSION OR TERMINATION OF SERVICE. A Utility must refrain from suspending or terminating service for non-payment during the pendency of a complaint before the Utility or the Commission, unless otherwise provided by the Commission; provided however, that as a condition of continued service during the pendency of such dispute, a customer must pay the undisputed portions of any bill for service.

012.02 COMPLAINTS OF HIGH-VOLUME RATEPAYERS. Subject to Neb. Rev. Stat. § 66-1810, the Commission will take informal complaints and inquiries from High-Volume Ratepayers, and the Utility shall address the complaint and report the resolution to the Commission.

013 RESIDENTIAL DISCONNECTION OF SERVICE.

013.01 NOTICE OF DISCONNECTION. A notice of disconnection of service sent by a Utility shall be served pursuant to Neb. Rev. Stat. § 70-1606, and shall contain all the information required in Neb. Rev. Stat. § 70-1606. Each Utility shall have a third-party notice procedure for the notification of a designated third party of any proposed disconnection of service, in accordance with Neb. Rev. Stat. § 70-1607.

013.02 CONFERENCE BETWEEN UTILITY AND CUSTOMER. Each Utility shall have a procedure to hear and decide any dispute related to a proposed disconnection of service or any other matter affecting the service to a residential customer. A conference will be scheduled and held within fourteen (14) days of the residential customer’s request and before the Utility may disconnect service. The employee of the Utility, based on the evidence presented at the conference, may affirm, reverse, or modify any prior decision of the Utility. The residential customer may appeal an adverse decision to a management officer designated by the Utility, with whom a hearing shall be held, or may file a complaint directly with the Commission.

013.03 PAYMENT PLANS FOR DELINQUENT BILLS. If a residential customer asserts inability to pay or extenuating circumstances, the residential customer and the Utility shall attempt to agree upon reasonable installment payment arrangements for the payment of any account balance and for payment of current charges for utility service. If the residential customer believes that the installment payment arrangements offered by the Utility are unreasonable, the residential customer may file a complaint with the Commission, challenging such utility-offered installment payment arrangement terms. A residential customer may make an informal complaint by contacting the Commission or may make a formal complaint by completing a form provided by the Commission.

013.04 DISCONNECTION OF SERVICE. No Utility shall disconnect natural gas service to a residential customer on a weekend, legal holiday, or at any time when the Utility's business offices are not open to the public.

013.05 RESIDENTIAL WINTER DISCONNECTION. In addition to the notice provisions before disconnection of service to a residential customer in Neb. Rev. Stat. § 70-1605, no Utility may disconnect residential customer service from November 1 to March 31 without adding to the time for payment of a bill an additional thirty (30) days before disconnecting that service, and it shall notify the residential customer before the normal disconnection date that the residential customer has such additional thirty (30) days until disconnection.

013.05(A) TEMPORARY BAN ON DISCONNECTIONS. The Commission shall have the authority to order a temporary ban on any or all disconnections for Utilities during periods of extremely severe weather or when circumstances exist such that disconnection could create a situation dangerous to the life or health of customers or to property.

013.05(B). If a residential customer has been certified as eligible for low-income home energy assistance, has communicated such eligibility to the Utility, and has provided acceptable documentation of such eligibility to the Utility within a reasonable time, then no disconnection may take place from November 1 through March 31;

013.05(C). To have service restored during the cold weather period between November 1 and March 31, the following shall apply:

013.05(C)(i). A residential customer must pay 25% of the outstanding account balance in addition to the bill for the most recent billing period for which service was provided. The residential customer shall also enter a payment plan for the current outstanding balance and future consumption consisting of a minimum of three (3) monthly installments or longer as agreed between the residential customer and the Utility.

013.05(C)(ii). If a residential customer defaults on the payment plan, the Utility may disconnect service after providing the requisite notice.

013.05(C)(iii). Nothing in Section 013.05(C) shall preclude a residential customer from paying an arrearage in full or agreeing to an alternate payment schedule.

013.05(C)(iv). Nothing in Section 013.05(C) shall preclude a Utility from collecting the applicable reconnection fee in its tariff or requiring a deposit.

013.06 IMMEDIATE AND SERIOUS HEALTH HAZARD. Consistent with Neb. Rev. Stat. § 70-1606(1)(g), a Utility shall postpone the disconnection of natural gas service to a residential customer for a minimum of thirty (30) days from the date of receiving a duly licensed physician's, physician assistant’s, or advanced practice registered nurse’s certification that an existing illness or handicap of the residential customer or resident within such customer’s household would suffer an immediate and serious health hazard by the disconnection of service to that household. Such health certificate shall be provided to the utility within five (5) days of receiving notice of disconnection of service, excluding holidays and weekends. Only one postponement of disconnection shall be allowed under this provision for each incidence of nonpayment of any past-due account.

014 INFORMATION ON ENERGY ASSISTANCE PROGRAMS. Utilities shall compile and make available to customers a list of the names, addresses, and phone numbers of known payment assistance programs, including information regarding any bilingual services offered, that are applicable to each service area within the Utility’s areas of operation. The list should include, but is not limited to, local, state, federal, and other energy assistance programs and public/private charitable organizations offering or known to offer energy payment assistance. Such programs and organizations must give prior consent to their inclusion on the list.

014.01 AVAILABILITY. The Utility shall inform any customer who asserts inability to pay his or her utility bill of the availability of this list and give a copy of this list to any customer who asks for such assistance. The Utility shall also provide the Commission with this list.

015 ASSESSMENTS AND RELATED REPORTING REQUIREMENTS.

015.01 NOTICE OF ASSESSMENT. Upon the filing of any application, including rate filings, or complaint for which the Commission deems it necessary to investigate a Utility or make appraisals of the property of a Utility, the Commission shall give the Utility notice by United States mail of the assessment for expenses reasonably attributable to such investigation or appraisal, including both direct and indirect expenses incurred pursuant to Neb. Reb. Stat. § 66-1840.

015.02 ANNUAL FILINGS. Each Utility, on or before April 30 each year, must file with the Commission:

015.02(A) ANNUAL REPORT. An annual report to shareholders or equivalent, for the previous year upon issuance of such annual report. The Utility shall notify the Commission prior to April 1, if the report will not be available by April 30 and indicate when the report will be filed. Any Utility that fails, neglects or refuses to file with the Commission its annual report shall be subject to a civil penalty of not more than five hundred dollars.

015.02(B) NET REVENUES. A statement of the difference between the Utility's gross operating jurisdictional revenue, less gas cost derived from intrastate natural gas public utility business as reflected in the annual report filed pursuant to Rule 015.01(A), together with an explanation of this computation and any supporting documentation of the computation.

015.02(C) METERS SERVED. A statement of the number of meters served by each Utility, as of the end of the previous calendar year, together with verified documentation to support the statement.

015.03 RECORDS OF NON-UTILITY SERVICE. Each Utility must maintain the following records of non-utility service:

015.03(A) SEPARATE RECORDS. A Utility receiving revenues for providing non-utility service shall maintain and provide to the Commission, upon request, separate records for the non-utility service. The records shall include but not be limited to, documents depicting accounts payable and vouchers; purchase orders; time sheets or other time coding information; journal entries; source and supporting documents for all Affiliate transactions; a description of the method(s) used to allocate revenues, expenses, and investments between utility service operations and non-utility service operations, including supporting detail.

015.03(B) METHOD OF INSPECTION. The records for non-utility service shall be made available to the Commission at the principal place of business of the Utility or electronically after consultation between the Commission and the Utility.

016 MUNICIPAL RATE NEGOTIATIONS REVOLVING LOAN FUND.

016.01 APPLICATION FOR LOAN. Only one loan shall be made for each General Rate Filing by a Utility, as set forth in Neb. Rev. Stat. § 66-1839. No loan monies shall be distributed until the Commission has certified a rate case for negotiation pursuant to Neb. Rev. Stat. § 66-1838(6). Applications will only be accepted from cities which have adopted a resolution evidencing the intent to negotiate with the Utility. Applications shall be submitted on a form approved by the Commission.

016.02 JOINT APPLICATION FOR LOAN. Municipalities may jointly apply for loan funds.

016.03 MULTIPLE APPLICANTS. If more than one loan application is filed on a General Rate Filing, all applicants for funds will be notified of the identity and contact information of other applicants and will be given a limited number of days to coordinate and determine whether to make a joint application.

016.04 APPLICATION SCORING. If all applicants do not reach a mutual agreement, the Commission will evaluate applications based upon a budget statement identifying all costs for which loan funds will be used and a proposed timeline for progression of negotiations. Applications will be scored on the following scale:

016.04(A). Total points possible: 25

016.04(A)(i). Budget Statement: 15 points total.

016.04A(i)(a). Thoroughness: 10 points

016.04(A)(i)(b). Reasonableness: 5 points

016.04(A)(ii). Timeline: 10 points total.

016.04(A)(ii)(a). Thoroughness: 5 points

016.04(A)(ii)(a). Reasonableness: 5 points

016.05 FUND-USE MONITORING AND QUARTERLY ACCOUNTING OF FUND USE.

016.05(A). Once a loan has been approved under the Municipal Rate Negotiations Revolving Loan Fund, the following requirements must be followed by the city(s) and the Utility:

016.05(A)(i). The loan proceeds may only be used for the costs and expenses incurred to analyze the General Rate Filing and negotiate a settlement that establishes new area-wide rates;

016.05(A)(ii). The costs and expenses may include the cost of rate consultants, attorneys, other advisors, and other necessary costs related to the negotiation process and preparation of a settlement agreement;

016.05(A)(iii) Every thirty (30) days following the Commission certification of the negotiation, the borrowing city(s) must provide a report to the Commission, in a format to be specified by the Commission, which details the funds expended and the uses of such funds;

016.05(A)(iv). Within thirty (30) days after a settlement agreement is filed with the Commission, the borrowing city(s) must provide a final report to the Commission which details the funds expended and uses of such funds;

016.05(A)(v). If the borrowing city(s) and the Utility fail to reach a settlement, the borrowing city(s) must file with the Commission, within thirty (30) days of notification to the Commission that such settlement could not be reached, a final report which details the funds expended and the uses of such funds;

016.05(A)(vi). A city which receives a loan from the fund shall be responsible to provide for the opportunity for all other cities engaged in the same negotiations with the same Utility to participate in the negotiations. Such city shall not exclude any other city from the information or benefits accruing from the use of loan funds;

016.05(A)(vii). Upon the conclusion of negotiations, regardless of the result, the loan approved by the Commission after audit shall be repaid by the Utility to the Commission within thirty (30) days after the date upon which it is billed by the Commission. The Utility shall recover the amount paid on the loan by a special surcharge on customers who are or will be affected by the rate increase request. These customers may be billed on their monthly statements for a period not to exceed twelve (12) months, and the surcharge may be shown as a separate item on the statements as a charge for rate negotiation expenses.

016.05(B) COMMISSION AUDIT. The Commission will audit each request for payment from the Municipal Rate Negotiations Revolving Loan Fund. In such audit, the Commission shall allow only such fees incurred for professional work reasonably necessary to analyze a Utility’s General Rate Filing or in the effort to negotiate new area-wide rates for the Utility, and such out-of-pocket expenses as are reasonably incurred in the conduct of such activities. Activities that are not subject to financing through a loan include, but are not limited to, activities related to obtaining a loan and disbursements related thereto; activities occurring prior to the Utility’s General Rate Filing; and activities occurring prior to formal retention of an individual or firm to participate in the negotiation process. The service provider’s invoices must detail, at a minimum, a daily description of the work performed by each individual involved in the negotiation process, the hourly rate of such person, and must provide documentation of all expenses included with such invoice.

016.06 SIGNATURE OF VERIFICATION OF LOAN. Any applicant municipality must sign, under oath, a verification in a format to be specified by the Commission, that it will comply with the provisions of the State Natural Gas Regulation Act and applicable rules and regulations. The affidavit shall be submitted on a form approved by the Commission.

016.07 TRAVEL, LODGING AND MEAL EXPENSES. Any travel, lodging or meal expenses reimbursed or paid by the proceeds from a loan from the Municipal Rate Negotiations Revolving Loan Fund must conform to the Nebraska State Accounting Manual published by the Nebraska Department of Administrative Services.

017 BILLING.

017.01 BILLING BASIS. Bills for service may be based on meter readings or estimated usage only as permitted by Rule 017.03. The Utility may render bills monthly or on some other regular schedule in accordance with tariffs on file with the Commission.

017.02 CUSTOMER CATEGORY. If a customer is eligible to receive service under more than one rate schedule, the Utility, upon notice of this fact, must advise the customer of applicable, prospective alternatives.

017.03 METER READINGS. A Utility may schedule readings of all meters used for determining charges for customers in accordance with its meter reading policies and practices, and shall make all reasonable efforts to read the meters on corresponding dates of each meter reading period established by the Utility. The Utility may permit the customer to supply the meter reading in a form prescribed by the Utility. A Utility representative must attempt to read a meter at least once every two (2) months, and any billing between actual readings or when the Utility is unable to read a meter after a reasonable effort has been made will be calculated in accordance with Rule 017.04. A Utility representative must also read the meter at the commencement or termination of service unless such termination or commencement of service occurs at the same address as another termination or commencement of service within seven (7) days. Under such circumstances, the Utility may estimate the meter reading based upon dates of service for the departing and the new customer, and thereafter pro rate the monthly bill for service provided between the two (2) customers. Access to meters by the Utility must be granted by a customer.

017.04 ESTIMATED BILLING. When access to a meter cannot be gained, or when the customer fails to supply a meter reading form in time for the billing operation, an estimated bill may be rendered. Estimated bills must be based upon prior usage, adjusted for weather conditions, number of days in the applicable billing cycle, and other known and reasonable factors.

017.05 INFORMATION ON BILLS. The bill sent to the customer must include only information related to the customer’s account and bill inserts. The bill may include appropriate charges for non-regulated services, such as appliance repair. Bills provided to customers for natural gas service must include the following information:

017.05(A). The meter reading and the date the meter was read;

017.05(B). The number and kinds of units metered;

017.05(C). Identification of the applicable rates;

017.05(D). The amount of the bill;

017.05(E). The late fee;

017.05(F). If an estimated bill, clear and conspicuous language identifying the bill as an estimated bill;

017.05(G). Tax, tax adjustment, state regulatory assessment, gas supply cost adjustment, and any other Commission approved adjustments, separately itemized, if applicable;

017.05(H). A statement that customer information is available upon request and where it can be obtained.

017.05(I). A conspicuous notice to customers that should the Utility fail to satisfactorily resolve a service or billing dispute that they may refer the matter to the Nebraska Public Service Commission, including current address and telephone number.

017.06 CUSTOMER PAYMENT RECORDS. A Utility must retain a record showing the data contained on each monthly bill in accordance with its normal record retention policy and practices.

017.07 METER TESTING.

017.07(A) BY CUSTOMER REQUEST. Any customer may request the Utility to test the customer natural gas meter. The Utility must conduct the test as soon as reasonably possible after receipt of the request. If a particular meter is tested at the request of the same customer more than once in a two (2)-year period, the Utility may require a customer to pay a reasonable meter test fee for the cost of testing the meter. The meter test fee must be refunded if the meter is found to have an error of two-percent (2%) or more. A customer or a representative of the customer may be present when the meter test is conducted. The Utility must supply a report giving the name of the customer requesting the test; the date of the request; the location of the meter; the type, make, size and number of the meter; the date tested; and the results of the test to the customer.

017.07(B) TESTING FOR ACCURACY. Each Utility must establish a method or plan for verifying the accuracy of meter readings when such readings indicate unusually high or low natural gas usage in comparison to the customer’s past or projected natural gas usage.

017.08 CREDIT AND DEPOSIT POLICIES.

017.08(A) NONDISCRIMINATORY CREDIT POLICY REQUIRED. Each Utility shall fairly, and without discrimination, administer a credit policy which is easily understandable, and which extends natural gas service to as many Nebraskans as possible. The credit policy must be based upon the credit risk of the individual as evidenced by the individual’s past experiences with residential gas purchases without regard to the collective credit reputation of the area in which the individual lives.

017.08(B). For purposes of this rule, the following definitions apply:

017.08(B)(i) SATISFACTORY CREDIT. Within the last year of service, the customer has not had service disconnected for nonpayment of a bill with the Utility, has received no more than two (2) disconnection notices, and does not have an outstanding undisputed debt with the Utility. A Utility may allow a customer with unsatisfactory credit to re-establish satisfactory credit pursuant to Rule 017.08(C). The Utility may not require a new or existing customer to establish or re-establish credit for more than twelve (12) consecutive months, but may allow less than twelve (12) months for good cause shown.

017.08(B)(ii) UNKNOWN CREDIT. If the applicant has no known energy purchase experience, the Utility may require that the applicant establish satisfactory credit pursuant to Rule 017.08(C).

017.08(C) ESTABLISHMENT OR RE-ESTABLISHMENT OF SATISFACTORY CREDIT FOR RESIDENTIAL SERVICE. To establish or re-establish satisfactory credit for residential service, a Utility may require an applicant for service or a customer to comply with the following:

017.08(C)(i). Make a deposit of not more than one-sixth (1/6) of the estimated annual bill or increase an existing deposit to that level; or

017.08(C)(ii). Provide a guarantor who has satisfactory credit.

017.08(C)(iii). If a customer is unable to pay the full amount of a deposit, the Utility may accept payment of the deposit in installments at the discretion of the Utility.

017.09 BILLING ADJUSTMENTS. For all billing adjustments resulting in a charge to the customer, a Utility must offer a reasonable amount of time for payment.

017.09(A) ADJUSTMENTS TO BILLS FOR FAST METER ERROR. Whenever any meter tested by a Utility is found to have an error of two percent (2%) fast or more, it must refund or credit to the customer the overcharge. The refund for a fast meter will result in a credit for the entire time period that the meter was malfunctioning, not to exceed five (5) years.

017.09(B) ADJUSTMENTS TO BILLS FOR SLOW METER ERROR. Whenever any meter tested by the Utility is found to have an error of two percent (2%) slow or more, it may charge for the natural gas consumed but not included in the bill(s) previously rendered. The charge for a slow meter must be based on the corrected meter reading for a period equal to 50% of the time elapsed since the most recent test, but not to exceed twelve (12) months. If the period of the malfunctioning meter exceeds twelve (12) months and can be fixed with reasonable certainty, any uncollected charges may be included in the Utility’s next General Rate Filing, or in a gas cost adjustment filing where uncollectible gas costs are permitted by the Commission as a bad debt expense. Such recovery shall be subject to a rebuttable presumption that said expense was Prudently incurred in the provision of natural gas service.

017.09(C) ADJUSTMENTS TO BILLS FOR METERS FAILING TO REGISTER. The Utility may estimate bills for customer natural gas usage when a meter is found not to register or to register intermittently. Bills estimated under this section may not be estimated for a period exceeding six (6) months and must be based upon prior usage, adjusted for weather conditions, number of days in the applicable billing cycle, and other known and reasonable factors.

017.09(D) ADJUSTMENTS TO BILLS FOR OTHER METER AND BILLING ERRORS. If a customer has been overcharged or undercharged as a result of an error, including but not limited to, incorrect reading of the meter, incorrect application of a utility tariff, incorrect connection of the meter, application of an incorrect multiplier or constant or other similar reason, the overcharge must be credited or refunded to the customer or the undercharge may be billed to the customer. Any refund or credit shall cover the entire period that the account was overcharged, not to exceed five (5) years. Any charge billed shall not be for service exceeding twelve (12) months. If the period for the underbilling described herein exceeds twelve (12) months and can be fixed with reasonable certainty, any uncollected charges may be included in the Utility’s next General Rate Filing, or in a gas cost adjustment filing where uncollectible gas costs are permitted by the Commission to be recovered as a bad debt expense. Such recovery shall be subject to a rebuttable presumption that said expense was Prudently incurred in the provision of natural gas service.

018 CONSUMER CHOICE PROGRAMS.

018.01 ADMINISTERING UTILITY: Is any utility offering a consumer choice program.

018.02 CODE OF CONDUCT. An Administering Utility shall in its tariff approved by the Commission, adopt a code of conduct for Administering Utilities, and one for Suppliers and Aggregators participating in the Consumer Choice Programs.

018.03 ADMINISTERING UTILITY CODE OF CONDUCT. Any code of conduct adopted by an Administering Utility shall at a minimum include the following principles:

018.03(A). Maintain separate accounting records for revenues and costs.

018.03(B). Not give preferential treatment or advantage, either overtly or covertly, to any Supplier participating in a choice gas program.

018.03(C). Make any information disclosed by an Administering Utility available in a reasonable time and manner to all participating Suppliers. This provision does not include disclosure of confidential customer information.

018.03(D). Ensure that any rule, regulation and/or tariff provision applied by the Administering Utility in the choice gas program be done in a non-discriminatory, equal manner.

018.03(E). Shall not by word or action misrepresent the cost, quality, or reliability of a particular Supplier or Aggregator or represent that the regulated gas service would/could be adversely affected by a customer selection of a particular Supplier or Aggregator.

018.03(F). Shall not misrepresent or misquote the commodity price of any Supplier or Aggregator.

018.03(G). Shall not market or advertise the Administering Utility’s services in a misleading or deceptive manner;

018.03(H). Shall not engage in any activities in the Consumer Choice Program detrimental to the customer including, but not limited to, activities such as slamming or cramming;

018.03(I). Shall not unduly discriminate against similarly situated customers.

018.03(J). In the event the Administering Utility also has an Affiliate that acts as a participant Supplier in a choice program, the Utility shall.

018.03(J)(i). Keep separate accounting records for the activities of the choice gas program and Affiliate Supplier;

018.031(J)(ii). Keep separate and distinct all marketing, advertising and other promotional activities.

018.04 SUPPLIER/AGGREGATOR CODE OF CONDUCT. Any tariff filed by the Administering Utility shall include a code of conduct for participating Suppliers or Aggregators. The Supplier/Aggregator code of conduct shall require at a minimum that all participating Suppliers and Aggregators:

018.04(A). Not misrepresent through word or action the quality or reliability of other Suppliers or Aggregators.

018.04(B). Not misrepresent or misquote the commodity price of any Supplier or Aggregator.

018.04(C). Not market or advertise its services in a misleading or deceptive manner.

018.04(D). Not engage in any activities detrimental to the customer including, but not limited to, activities such as slamming or cramming.

018.04(E). Not unduly discriminate against similarly situated customers.

018.05 SUPPLIER/AGGREGATOR ANNUAL REPORT. A Supplier or Aggregator participating in a Consumer Choice Program shall submit a report to the Commission pursuant to this section on an annual basis. The report shall be filed with the Commission no later than thirty (30) days following the close of the consumer choice Supplier selection period. The report shall include the following information:

018.05(A). The number of customers served by the Supplier separated into residential and commercial classes;

018.05(B). The highest and lowest fixed rate per therm price in each rate area of the Administering Utility selected by a customer during the selection period; and

018.05(C). The rate assigned to customers eligible to make a selection who did not make a selection during the selection period for each rate area of the Administering Utility served by the Supplier.

018.06 ADMINISTERING UTILITY ANNUAL REPORT. The Administering Utility shall submit a report to the Commission pursuant to this section on an annual basis. The report shall be filed with the Commission no later than thirty (30) days following the close of the consumer choice supplier selection period. The report shall include the following information:

018.06(A). A list of all Suppliers and Aggregators that participated in the choice gas program.

018.06(B). For each participating Supplier or Aggregator the number of customers that selected that Supplier or Aggregator, separated into residential and commercial classes.

018.07 EXAMINATION AND AUDIT REQUIREMENTS. Consistent with Neb. Rev. Stat. § 66-1818, the Commission may require an examination and audit of any Administering Utility.

019 AFFILIATES.

019.01 SCOPE. The following rules apply to Affiliates that sell natural gas purchased from a producer or other seller. A division of a Utility that operates as a functional unit within the Utility shall also be treated as an Affiliate for purposes of the Natural Gas and Pipeline Rules and Regulations. This section does not apply to Affiliates conducting non-regulated private enterprise business activity or Shared Resources Affiliates.

019.02 AFFILIATE RULES. All Affiliates must comply with the following:

019.02(A). Either employ separate personnel and not share any personnel with the Utility or allocate shared employee time between the Utility and the Affiliate.

019.02(B). Not create a conflict of interest between the employee incentive programs of the Affiliate and the Utility.

019.02(C). Own or lease its own office space that is reasonably separate from the Utility. Such office space may only be acquired from the Utility at market-based rates.

019.02D. If the Affiliate seeks to provide service over the system of the Utility with which it is affiliated, the Utility must have adopted a code of conduct approved by the Commission pursuant to these rules.

019.02(E). Purchase its own ancillary services related to the delivery of natural gas including, but not limited to, natural gas commodity, pipeline transportation, and pipeline storage. Such assets may only be acquired from the Utility at market-based rates. An Affiliate must not secure transportation, storage, or commodity from the Utility on a prearranged, non-posted basis except as otherwise provided in a nondiscriminatory fashion.

019.02(F). Receive no unduly preferential treatment through a tariff provision or otherwise from the Utility.

019.02(G). Receive no jurisdictional services from the Utility except those that are available per the Utility’s tariff.

019.02(H). Be responsible for its own bad debt and the collection of such debts.

019.02(I). Not represent itself, either expressly or implicitly, as the Utility.

019.02(J). Keep separate records from that of the Utility.

020 EMERGENCY CURTAILMENT PLANS. A Utility’s tariff shall identify the manner of curtailing or limiting natural gas consumption in the event of an emergency.

021 SEASONAL DISCONNECTIONS.

021.01 SEASONAL DISCONNECTION CHARGES PROHIBITED. Seasonal Disconnection Charges shall not be permitted. A Utility may charge reconnection fees equal to those charged to any other customer receiving service.

022 PUBLIC ADVOCATE.

022.01 LOCATION OF COMMISSION. For purposes of Neb. Rev. Stat. § 66-1832, the location of the Commission means Lincoln, Nebraska.

023 MAJOR OIL PIPELINES.

023.01 SCOPE. This section applies only to major oil pipelines. Nothing in Section 023 is intended to regulate safety as to the design, installation, inspection, emergency plans and procedures, testing, construction, extension, operation, replacement, and maintenance of major oil pipelines and pipeline facilities.

023.02 MAJOR OIL PIPELINE APPLICATION. A pipeline carrier proposing to construct a major oil pipeline to be placed in operation in Nebraska and who has submitted a route for an oil pipeline within, through, or across Nebraska but the route is not approved by the Governor pursuant to section 57-1503, shall file an application with the Commission and receive approval prior to beginning construction of the major oil pipeline within Nebraska. A pipeline carrier proposing a substantive change to the route of a major oil pipeline and who has submitted a route for an oil pipeline within, through, or across Nebraska but the route is not approved by the Governor pursuant to section 57-1503, shall file an application for the proposed change with the Commission and receive approval prior to beginning construction relating to the proposed change.

023.02(A) CONTENT OF APPLICATION. The application shall be accompanied by written agreement to pay expenses assessed pursuant to subsection 023.12 and written testimony and exhibits in support of the application. The application shall include:

023.02(A)(i). The name and address of the pipeline carrier;

023.02(A)(ii). A description of the nature and proposed route of the major oil pipeline including a map of the proposed route and evidence of consideration of alternative routes;

023.02(A)(iii). A statement of the reasons for the selection of the proposed route of the major oil pipeline;

023.02(A)(iv). A list of the governing bodies of the counties and municipalities through which the proposed route of the major oil pipeline would be located;

023.02(A)(v). A description of the product or material to be transported through the major oil pipeline including identification of the product or material; and for informational purposes only hazard(s) identification; composition/information on ingredients; first-aid measures; fire-fighting measures; accidental release measures; handling and storage; exposure controls/personal protection; physical and chemical properties; stability and reactivity; toxicological information; ecological information; disposal considerations; transport information; regulatory information. The requirement can be satisfied through the filing of a representative Safety Data Sheet;

023.02(A)(vi). The person who will own the major oil pipeline;

023.02(A)(vii). The person who will manage the major oil pipeline;

023.02(A)(viii). A plan to comply with the Oil Pipeline Reclamation Act; and

023.02(A)(ix). A list of planned methods to minimize or mitigate the potential impacts of the major oil pipeline to land areas and connected natural resources other than with respect to oil spills.

023.02(A)(x). For informational purposes only, a description of the method for state agencies and emergency response personnel to obtain current Safety Data Sheet(s) for the product(s) or material(s) being transported through the pipeline in the event of an incident.

023.02(A)(xi). An applicant must notify the Commission during the pendency of the application of any material change in the representations and commitments required by this subsection within fourteen (14) days of such change.

023.02(B) FILING AND NOTICE. Applications must be filed with the Executive Director at the Nebraska Public Service Commission. Pipeline carriers shall file an original paper copy of the application in addition to an electronic copy and five (5) paper copies.

023.02(B)(i). Pipeline carriers shall also file a copy of the application with the following agencies:

023.02(B)(i)(a). Department of Environmental Quality

023.02(B)(i)(b). Department of Natural Resources

023.02(B)(i)(c). Department of Revenue

023.02(B)(i)(d). Department of Roads

023.02(B)(i)(e). Game and Parks Commission

023.02(B)(i)(f). Nebraska Oil and Gas Conservation Commission

023.02(B)(i)(g). Nebraska State Historical Society

023.02(B)(i)(h). State Fire Marshal, and

023.02(B)(i)(i). Board of Educational Lands and Funds

023.02(B)(ii) NOTICE OF APPLICATION. The applicant shall publish notice of the application in at least one newspaper of general circulation in each county in which the major oil pipeline is to be constructed and forward a copy of such notice to the Commission. The applicant shall serve notice of the application upon the governing bodies of the counties and municipalities specified pursuant to subdivision through which the proposed route of the major oil pipeline would be located. The Commission may provide additional notice to natural resource districts in the area of the proposed pipeline. The Commission may publish a copy of the application on its website.

023.02(C) PUBLIC REVIEW. Any documents or records relating to a major oil pipeline filed with the Commission shall be made available to the public consistent with the Nebraska public records laws, Neb. Rev. Stat. § 84-712 through 84-712.09 and any applicable federal law.

023.03 PROCEDURES AFTER RECEIPT OF AN APPLICATION. After receipt of an application, the Commission shall:

023.03(A). Schedule a planning conference to establish a procedural schedule for the application;

023.03(B). Within sixty (60) days of the date of the filing of the application, schedule a public hearing;

023.03(C). Notify the pipeline carrier of the time, place, and purpose of the public hearing;

023.03(D). Publish a notice of the time, place, and purpose of the public hearing in at least one newspaper of general circulation in each county in which the major oil pipeline is to be constructed; and

023.03(E). Serve notice of the public hearing upon the governing bodies of the counties and municipalities through which the proposed route of the major oil pipeline would be located as specified in subsection 023.02(B)(ii).

023.04 PUBLIC MEETINGS. The Commission may hold additional public meetings for the purpose of receiving input from the public at locations as close as practicable to the proposed route of the major oil pipeline. The Commission shall make the public input part of the record.

023.05 AGENCY REPORTS. Within thirty (30) days of the filing of the application, the agencies referenced in subsection 023.02(B)(i) shall file with the Commission a list of potential issues and an estimated budget for the completion of a report addressing those issues. If requested by the Commission, the agencies referenced in subsection 023.02(B)(i) shall file a report with the Commission, prior to the hearing on the application, regarding information within the respective agencies' area of expertise relating to the impact of the major oil pipeline on any area within the respective agencies' jurisdiction, including in such report opinions regarding the advisability of approving, denying, or modifying the location of the proposed route of the major oil pipeline.

023.05(A) The report shall be filed with the Commission at least ten (10) days prior to the hearing or as required by the Hearing Officer.

023.05(B) The agencies may submit a request for reimbursement of reasonable and necessary expenses incurred for any consultants hired pursuant to subsection 023.12.

023.06 PETITIONS FOR INTERVENTION, PROTESTS AND HEARING ON THE APPLICATION. The filing of petitions for intervention and protests and the conduct of the hearing shall be governed by the Rules of Commission Procedure.

023.06(A) HEARING.

023.06(A)(i). Although not a party to the application, the Commission staff may provide evidence during the hearing to ensure a complete record, including but not limited to testimony and/or reports of professionals or experts hired pursuant to Neb. Rev. Stat. sec. 57-1412.

023.07 BURDEN OF PROOF. An application under the Major Oil Pipeline Siting Act shall be approved if the proposed route of the major oil pipeline is determined by the Nebraska Public Service Commission to be in the public interest. The pipeline carrier shall have the burden to establish that the proposed route of the major oil pipeline would serve the public interest. In determining whether the pipeline carrier has met its burden, the Commission shall not evaluate safety considerations, including the risk or impact of spills or leaks from the major oil pipeline, but the Commission shall evaluate:

023.07(A). Whether the pipeline carrier has demonstrated compliance with all applicable state statutes, rules, and regulations and local ordinances;

023.07(B). Evidence of the impact due to intrusion upon natural resources and not due to safety of the proposed route of the major oil pipeline to the natural resources of Nebraska, including evidence regarding the irreversible and irretrievable commitments of land areas and connected natural resources and the depletion of beneficial uses of the natural resources. Such evidence may include but not be limited to the following:

0023.07(B)(i). an environmental impact study;

0023.07(B)(ii). a comprehensive soil permeability study;

0023.07(B)(iii). a distance-to-groundwater survey;

0023.07(B)(iv). evidence regarding the impact of the pipeline on wildlife; and

0023.07(B)(v). evidence regarding the impact of the pipeline on plants located within and surrounding the proposed route.

023.07(C). Evidence of methods to minimize or mitigate the potential impacts of the major oil pipeline to natural resources;

023.07(D). Evidence regarding the economic and social impacts of the major oil pipeline. Such evidence may include but not be limited to estimates regarding tax paid by the carrier to local and state government along the route of the proposed pipeline and information regarding impact on employment in Nebraska;

023.07(E). Whether any other utility corridor exists that could feasibly and beneficially be used for the route of the major oil pipeline;

023.07(F). The impact of the major oil pipeline on the orderly development of the area around the proposed route of the major oil pipeline;

023.07(G). The reports of the agencies filed pursuant to sub-section 023.05; and

023.07(H). The views of the governing bodies of the counties and municipalities in the area around the proposed route of the major oil pipeline.

023.08 COMMISSION ORDER.

023.08(A) TIME TO ENTER ORDER. Within seven (7) months after the receipt of the application, the Commission shall enter an order approving the application or denying the application.

023.08(A)(i). The Commission may, for just cause, extend the time for the entry of an order. The extension shall not exceed twelve (12) months after the receipt of the application unless all parties agree to a longer extension, except that no extension shall extend more than eight (8) months after the issuance of a presidential permit authorizing the construction of the major oil pipeline.

023.08(A)(ii). For purposes of determining the counting months, one (1) month shall equal thirty (30) days.

023.08(B) CONTENT OF ORDER. The Commission shall include in the order the findings of the Commission regarding the application and the reasons for approving or denying the application. The order approving the application shall state that the application is in the public interest and shall authorize the pipeline carrier to act under Neb. Rev. Stat. Sec. 57-1101.

023.09 AMENDMENT OF APPLICATION AFTER DENIAL. If the Commission denies the application, the pipeline carrier may amend the denied application in accordance with the findings of the Commission and submit the amended application within sixty (60) days after the issuance of the order denying the application. Within sixty (60) days after the receipt of the amended application, the Commission shall enter an order approving or denying the amended application after making new findings under subsection 023.07.

023.10 APPEAL. Any party aggrieved by a final order of the Commission regarding an application under the Major Oil Pipeline Siting Act, including, but not limited to, a decision relating to the public interest, may appeal. The appeal shall be in accordance with the Administrative Procedure Act.

023.11 STATUS REPORTS. If the Commission approves the application, the pipeline carrier shall file a status report with the Commission regarding the construction of the major oil pipeline every six (6) months until the completion of the major oil pipeline within Nebraska. The pipeline carrier shall notify the Commission of the completion of the major oil pipeline within Nebraska within thirty (30) days after such completion.

023.12 ASSESSMENT OF EXPENSES. The Commission shall assess the expenses reasonably attributable to investigation and hearing regarding an application filed under subsection 023.02, including expenses billed by agencies filing reports as required in subsection 023.05 and both direct and indirect expenses incurred by the Commission or its staff or consultants, to the applicant as agreed under subsection 023.02.

023.12(A) BILLING OF EXPENSES. The Commission shall ascertain the expenses of any such investigation and hearing and by order assess such expenses against the applicant and shall render a bill therefor, by United States mail, to the applicant, either at the time the order under subsection 023.08 is issued or from time to time during such application process.

023.12(A)(i). Such bill shall constitute notice of such assessment and demand of payment thereof. Upon a bill rendered to such applicant, within fifteen (15) days after the mailing thereof, such applicant shall pay to the Commission the amount of the assessment for which it is billed.

023.12(A)(ii). The Commission shall remit the payment to the State Treasurer for credit to the Public Service Commission Pipeline Regulation Fund or shall direct the State Treasurer to credit any reimbursement of expenses billed by agencies pursuant to Section 023.05 to the appropriate fund of the appropriate agency.

023.12(A)(iii). The Commission may render bills in one fiscal year for costs incurred within a previous fiscal year.

023.12(B) FAILURE TO PAY ASSESSMENT. If any applicant against which an assessment has been made pursuant to this section, within fifteen (15) days after the notice of such assessment, (a) neglects or refuses to pay the same or (b) fails to file objections to the assessment with the Commission as provided in subsection 023.12(C), the Commission shall transmit to the State Treasurer a certified copy of the notice of assessment, together with notice of neglect or refusal to pay the assessment, and on the same day the Commission shall mail by registered mail to the applicant against which the assessment has been made a copy of the notice which it has transmitted to the State Treasurer. If any such applicant fails to pay such assessment to the State Treasurer within ten (10) days after receipt of such notice and certified copy of such assessment, the assessment shall bear interest at the rate of fifteen percent (15%) per annum from and after the date on which the copy of the notice was mailed by registered mail to such applicant.

023.12(C) OBJECTION TO ASSESSMENT. Within fifteen (15) days after the date of the mailing of any notice of assessment under subsection 023.12(A), the applicant against which such assessment has been made may file with the Commission objections setting out in detail the grounds upon which the applicant regards such assessment to be excessive, erroneous, unlawful, or invalid. The Commission shall determine if the assessment or any part of the assessment is excessive, erroneous, unlawful, or invalid and shall render an order upholding, invalidating, or amending the assessment. An amended assessment shall have in all respects the same force and effect as though it were an original assessment.

023.12(C)(i) PAYMENT OF ASSESSMENT IF OBJECTION OVERRULED. If any assessment against which objections have been filed is not paid within ten (10) days after service of an order finding that such objections have been over-ruled and disallowed by the Commission, the Commission shall give notice of such delinquency to the State Treasurer and to the applicant in the manner provided for in subsection 023.12(B). The State Treasurer shall then collect the amount of such assessment. If an amended assessment is not paid within ten (10) days after service of the order of the Commission, the Commission shall notify the State Treasurer and the applicant as in the case of delinquency in the payment of an original assessment. The State Treasurer shall then collect the amount of such assessment as provided in the case of an original assessment.

023.12(C)(ii) APPEAL OF ORDER OVERRULING OBJECTION TO ASSESSMENT. Any party aggrieved by a final order of the Commission regarding an assessment under the Major Oil Pipeline Siting Act may appeal. The appeal shall be in accordance with the Administrative Procedure Act.

History

• Effective 2025-06-23

Chapter 10 Nebraska Universal Service Fund Rules and Regulations

Neb. Admin. Code tit. 291, ch. 10 Nebraska Universal Service Fund Rules and Regulations {#sec-291-nac-10 omnilex-key=us-ne-regs-official--title-291--291 NAC 10}

001 GENERAL :

001.01 Definitions: As used in this chapter, unless the context otherwise requires, the following definitions shall apply:

001.01A Access Charge Pass-Through: Changes in charges for interexchange services that correspond to changes in charges for access services ordered by the Commission pursuant to Neb. Rev. Stat. Section 86-140.

001.01B Access Service: The offering of access to exchange services or facilities for the purpose of the origination or termination of interexchange services.

001.01C Assessable Revenue: Revenues defined by Commission Rule to be subject to the Nebraska Universal Service Fund surcharge. The Commission may, on an interim basis, designate services to be subject to the NUSF surcharge by order until such time as a rulemaking can be completed.

001.01D Basic Local Exchange Service: The origination, termination, and transmission of two-way switched voice telecommunications or its functional equivalent within a local exchange area, excluding extended area service(s).

001.01E Benchmark Price: The target price for a telecommunications service as determined by Commission order.

001.01F Calendar Year: The period from January 1 of one year to December 31 of the same year.

001.01G Commission: The Nebraska Public Service Commission.

001.01H Connection Charges: Charges assessed for commencing services including any charges that a telecommunications company automatically assesses to provide the user with telecommunications services.

001.01I Department: The Department established within the Commission for the administration of the Nebraska Universal Service Fund.

001.01J Director: The Director of the Department established within the Commission for the administration of the Nebraska Universal Service Fund.

001.01K Eligible Telecommunications Carrier: An eligible telecommunications carrier is a carrier designated by the Commission pursuant to 47 U.S.C. § 214(e) to receive monetary support from the Federal Universal Service Fund.

001.01L Extended Area Service: A telecommunications service which groups two or more local exchange areas for the origination, termination, and transmission of two-way switched voice telecommunications or its functional equivalent without an interexchange toll charge or an optional enhanced area calling plan that has been found acceptable by the Commission.

001.01M Federal Act: The federal Communications Act of 1934, as amended, including the federal Telecommunications Act of 1996, Public Law 104-104.

001.01N Fiscal Year: The period from July 1 of one year to June 30 of the following year.

001.01O Interconnected Voice Over the Internet Protocol Service: A service that (1) enables real-time, two-way voice communications; {2) requires a broadband connection from the user's location; (3) requires IP-compatible User premises equipment; and (4) permits users to receive calls which originate on the public switched telephone network and to terminate calls to the public switched telephone network.

001.01P Interexchange Service: Telecommunications service between points in different local exchange areas.

001.01Q Local Exchange Area: A geographical area established by a telecommunications company for the administration of telecommunications services for purposes of the NUSF, generally encompassing a city, town, or village and its environs approved by the Commission.

001.01R Nebraska Eligible Telecommunications Carrier (NETC): A telecommunications company specifically designated by Commission order to receive support from the Nebraska Universal Service Fund consistent with the Federal Act and Nebraska statutes.

001.01S Nebraska Universal Service Fund (NUSF): The Nebraska Telecommunications Universal Service Fund as described in Neb. Rev. Stat. Sections 86-316 through 86-329 and administered in accordance with the Commission rules and regulations and Commission orders.

001.01T NUSF Surcharge: The NUSF surcharge set annually by Commission order pursuant to Neb. Rev. Stat. Section 86-328.

001.01U Service Area: A geographic area designated by the Commission in which an NETC shall provide service.

001.01V Support Area: A geographic area within a service area designated by the Commission in which an NETC receives a specific level of NUSF support.

001.01W Supported Service: A group of telecommunications services, excluding interexchange service and extended area service, designated by Commission Rule for which an NETC providing such service may receive support from the NUSF. The Commission may, on an interim basis, in accordance with Commission rules and regulations, designate a supported telecommunications service by order until such time as a rulemaking can be completed.

001.01X Telecommunications: The transmission, between or among points specified by the user, of information of the user's choosing without change in the form or content of the information as sent and received.

001.01Y Telecommunications Company: Any natural person, firm, partnership, limited liability company, corporation, or association providing telecommunications for hire in Nebraska without regard to whether such entity holds a certificate or permit from the Commission.

001.01Z Telecommunications Service: The offering of telecommunications for a fee.

001.01AA User: Any person, firm, partnership, corporation, limited liability company, municipality, cooperative, organization, governmental agency or any other entity provided with telecommunications or telecommunications service by a telecommunications company.

001.01BB Wireless Carrier: Any natural person, firm, partnership, limited liability company, corporation or association providing mobile radio service, radio paging service, or wireless telecommunications service for a fee in Nebraska intrastate commerce.

001.02. Procedures involving the administration of the NUSF shall be governed by the Nebraska Universal Service Fund Rules and the Rules of Commission Procedure unless otherwise prescribed by order of the Commission.

001.03. The Commission will specify, by order, the manner in which information shall be filed with the Department. Upon a showing of good cause, the Director may accept information filed in a manner other than prescribed in a Commission order.

002 COLLECTION OF THE NUSF SURCHARGE :

002.01 Assessable Revenue: The NUSF surcharge shall be assessed on all end-user telecommunications provided in Nebraska intrastate commerce. Telecommunications companies shall collect and remit the NUSF surcharge.

002.01A. The NUSF surcharge shall be assessed on telecommunications in accordance with Commission rules and regulations and Commission orders.

002.01B. Specific Categories of Telecommunications Service subject to the NUSF Surcharge:

002.01B1 Local Exchange Service:

002.01B1a. Charges for monthly service, local calling, extended area service or its functional equivalent, connection charges, vertical features and other local exchange service.

002.01B1b. Charges for local private line and special access service.

002.01B1c. Other local exchange service revenues not explicitly excluded in Rule 002.01D.

002.01B2 Commercial Mobile Services and Wireless Telecommunications Services:

002.01B2a. Monthly service and activation charges.

002.01B2b. Message charges including roaming, but excluding toll charges.

002.01B2c. All other commercial mobile service revenues not explicitly excluded in Rule 002.01D.

002.01B2d. Prepaid wireless activation charges and sales (including sales to customers and non-carrier distributors) reported at face value of cards.

002.01B3 Interexchanqe Services:

002.01B3a. Prepaid calling card (including card sales to customers and non-carrier distributors) reported at face value of cards.

002.01B3b. Operator and toll calls with alternative billing arrangements (credit card, collect, call-back, etc).

002.01B3c. Ordinary interexchange (direct dialed MTS, customer toll-free 800/888 service, "10-10'' calls, associated monthly account maintenance, etc).

002.01B3d. Interexchange private line services.

002.01B3e. All other interexchange services not explicitly excluded in Rule 002.01D.

002.01B4 Interconnected Voice Over the Internet Protocol Services:

002.01B4a. Charges for monthly service and activation. Charges for vertical features if charged separately or bundled.

002.01B5 Radio Paging Services:

002.01B5a. Monthly service and activation charges.

002.01B5b. Message charges including roaming.

002.01B5c. All other radio paging service not explicitly excluded in Rule 002.01D.

002.01C Hotels, Motels and Other Entities:

002.01C1. The NUSF surcharge shall be assessed on charges made to hotels, motels and other entities for telecommunications services that may be re-billed by the user to another party.

002.01D Other Services:

002.01D1 Interstate Telecommunications, Charges and Surcharges: The NUSF surcharge shall not apply on the interstate portion of telecommunications. When the intrastate portion of telecommunications cannot be determined or if such determination would result in an undue administrative burden, a telecommunications company may request that the Commission approve an allocation factor to determine the intrastate portion of the service or the Commission may adopt a relevant Federal Communications Commission safe harbor provision.

002.01D1a Joint Use Services: In cases where a charge is made for both intrastate and interstate telecommunications service, and the interstate telecommunications service is not charged separately or cannot be readily determined, the NUSF surcharge shall apply to the total charge, except as provided in Rule 002.01D1b.

002.01D1b Allocation Factor: When the intrastate portion of a joint use service charge cannot be determined or if such determination would result in an undue administrative burden, a telecommunications company may request that the Commission approve an allocation factor to determine the intrastate portion of the service or may adopt any relevant Federal Communications Commission safe harbor provisions.

002.01D2 Federal Charges and Surcharges: The NUSF surcharge shall not be assessed on Federal Subscriber Line Charges (SLC), Primary Interexchange Carrier Charges (PICC), Number Portability Surcharges, and similar federal charges and surcharges.

002.01D3 Pay Telephone Coin Revenue: The NUSF surcharge shall not be assessed on coin services provided from pay telephones.

002.01D4 Intermediate Services: The NUSF surcharge shall not be assessed on intermediate telecommunications services, such as access service, that are provided by one telecommunications company to another as long as the company receiving such service collects the NUSF surcharge from the retail services that it provides to its users through the use of the intermediate service.

002.01D5 Taxes and Surcharges: The NUSF surcharge shall not be assessed on local, state, or federal taxes, 911 surcharges, telecommunication relay service surcharges, or similar taxes or surcharges.

002.02 NUSF Surcharge Shown on User Bills: The NUSF surcharge shall be explicitly shown on user bills as "NE Universal Service".

002.02A De Minimis Waiver: The Commission may grant a waiver from the requirement of section 002.02 to a telecommunications company upon application for good cause when the amounts to be collected from the user are de minimis as such term is defined by the Commission in an Order.

002.03 Uncollectible Amounts: Telecommunications companies shall be allowed to deduct uncollectible amounts from revenues that are subject to assessment of the NUSF surcharge.

002.03A Non-Payment of the NUSF Surcharge: Non-payment of the NUSF surcharge shall be considered non-payment for the service rendered by the telecommunications company and shall be subject to appropriate remedies, including disconnection of service.

002.04 Exemptions:

002.04A Nebraska Telephone Assistance Program Recipients: Qualifying users that are enrolled in the Nebraska Telephone Assistance Program (NTAP) are exempt from assessment of the NUSF surcharge. This exemption is limited to the single local exchange service line receiving NTAP support and the services provided thereon.

002.04B. All companies providing telecommunications service in Nebraska, as defined by 001.01Z, shall file an annual affidavit with the Department attesting to the compliance with all Rules and Regulations and Commission Orders for the Nebraska Telephone Assistance Program.

003 REMITTANCE :

003.01 Filing Options:

003.01A Monthly: Telecommunications companies shall remit the NUSF surcharge on a monthly basis to the NOSF except as provided in Rule 003.01B.

003.01B Quarterly: A telecommunications company whose assessable revenue is less than $20,000 for a given calendar year may remit on a quarterly basis to the NUSF. A company who elects to file on a quarterly basis pursuant to this rule shall notify the Commission in writing prior to switching from a monthly remittance filing basis to a quarterly remittance filing basis.

003.02 Remittance Worksheets: Remittance worksheets shall be received by the Department no later than the 15th day following the end of a remittance period. In the event the 15th day falls on a weekend or a holiday, the remittance worksheet is due on the next business day.

003.03 Remittances to the NUSF: Except as provided in Rule 003.03A, all remittances shall be transferred electronically to the Nebraska State Treasurer. Remittances shall be received by the Nebraska State Treasurer no later that the 15th day following the end of remittance period. In the event the 15th day falls on a weekend or a holiday, the electronic remittance is due on the next business day.

003.03A Department Initiated Remittances: A telecommunications company may elect to have the Department initiate the electronic transfer of such company's remittance to the NUSF.

003.03A1 Authorization and Banking Information: A telecommunications company electing to have the Department initiate the electronic transfer of remittance to the NUSF shall provide the necessary authorization and banking information required by the Director.

003.03A2 Initiation of Transfer: The receipt of a telecommunications company's remittance worksheet will result in the Department's initiation of the electronic transfer of the telecommunications company's remittance to the NUSF if the appropriate indication is made on said remittance worksheet. Said electronic transfer will be done in accordance with authorization granted to the Department by the company.

003.04 True-Up: A telecommunications company shall revise or adjust any remittance information previously reported to the NUSF for purposes of reporting accurate remittance information, except as provided in Rules 003.04A and 003.04B.

003.04A Director Approval: If a telecommunications company's revision or adjustment produces a variance of more than ten percent (10%) from originally reported remittance revenues, said company shall obtain the written approval of the Director before the revision or adjustment is filed.

003.05 Audit Requirements: A company reporting remittance information is subject to an audit consistent with procedures set forth by the Commission. The term "audit" as used in this section and the requirements necessary to fulfill this section shall be further defined by Commission Order. The audit shall include all information used in determining its assessable revenue and a written report of the results of such audit shall be provided to the Department before the end of the calendar year following the audit period.

003.05A First Tier: A telecommunications company whose assessable revenue is greater than one million dollars ($1,000,000) in a given calendar year shall have an audit performed on an annual basis.

003.05B Second Tier: A company whose assessable revenue is less than one million dollars ($1,000,000) in a given calendar year shall be subject to a remittance audit once every three years. The audit period may include any of the three years in the three year audit cycle.

003.05B1 Audit Waivers: A company whose assessable revenue is less than one hundred thousand dollars ($100,000) may be granted an audit waiver. To be eligible for a waiver, companies shall meet the criteria included in the remittance audit policies. The granting of such waiver is at the sole discretion of the Commission.

003.06 Confidential Treatment: All remittance information provided by companies will be treated as confidential and proprietary by the Department.

003.07 Notice Requirement: A company shall not be required to file remittance information or remit payments when the telecommunications company has no users in the State of Nebraska and no assessable revenue as defined by Rule 001.01C. A company shall notify the Commission in writing prior to the cessation of filing remittances and remittance information.

004 PAYMENTS :

004.01 Nebraska Eligible Telecommunications Carrier:

004.01A Designation of Eligibility: Only a telecommunications company explicitly designated as an NETC by the Commission for the expressly stated purpose of receiving funding from the NUSF by Commission order shall be eligible to receive NUSF funding.

004.02 Payments From the High-Cost Program:

004.02A Provision of Services:

004.02A1 NUSF Funding: An NETC shall only receive NUSF high-cost program funding for the actual provision of supported services as described in Rule 004.02D.

004.02A2 Provision to All Users: An NETC shall provide supported services for which it receives NUSF high-cost program support to all requesting users within a service area.

004.02A3 Reasonably Comparable Rates: An NETC shall charge reasonably comparable rates for supported services as determined by Commission Order.

004.02A4 Benchmark Rates: An NETC shall charge not less than the benchmark rate as determined by Commission Order for basic local exchange service including residential and business services to qualify for high-cost support. The business service benchmark shall be the same as the residential service benchmark.

004.02B Commission Orders: An NETC shall be in compliance with all Commission Orders relative to the NUSF in order to be eligible to receive NUSF funding.

004.02C Additional Criteria: The Commission may impose, on an interim basis, such requirements as it deems reasonably necessary to carry out the goals of the NUSF until such time as a rulemaking can be completed.

004.02D Supported Services:

004.02D1 Basic Local Exchange Service: Basic local exchange service, for purposes of receiving NUSF high-cost program support, consists of:

004.02D1a. Single party service or the functional equivalent within a support area for which an NETC is receiving support, including a block of calling time within a Commission approved local exchange area, for which there are no per-minute or additional charges, that has been approved by Commission order. This does not include extended area service(s).

004.02D1b. Dual tone multi-frequency signaling or the functional equivalent;

004.02D1c. A standard "white page" or alpha directory listing at the customer's option;

004.02D1d. Access to directory assistance services;

004.02D1e. Equal access to interexchange services;

004.02D1f. Access to emergency 911 or Enhanced 911 services;

004.02D1g. Access to operator services;

004.02D1h. Toll blocking for qualifying low-income users.

004.02D2 Other Services: The Commission may, on an interim basis, designate an additional supported telecommunications service by order until such time as a rulemaking can be completed.

004.02E Required Information: A telecommunications company shall submit information as reasonably required by the Director for the purpose of calculating NUSF high-cost program support. Such information shall be due within 60 days from the date of such request or the date determined by the Director, whichever is later.

004.02F Use of NUSF Funding: NUSF funding shall be used by telecommunications companies solely for the provision, maintenance and upgrading of facilities and services for which support is intended.

004.02F1. Demonstration of Use of NUSF High-Cost Support Required: A telecommunications company that receives NUSF high-cost program support from the high-cost program shall be required to file by June 1 of each year information detailing prior year historical investments and information estimating one year prospective investments by Nebraska wire center or county.

004.02F2. A telecommunications company that receives funding from the NUSF high-cost program shall file other information regarding the use of high-cost program support as required by order of the Commission.

004.02F3. A non-rural telecommunications company that receives funding from the federal high-cost program shall file no later than September 1 each year a description of its rates charged in urban and rural areas so that the Commission may assess and certify to the Federal Communications Commission the comparability of Nebraska rates to rates nationwide.

004.02G Eligibility of Support for the High-Cost Program: High-cost support will be authorized for one facilities-based NETC in a given support area.

004.02G1. A company may petition the Commission to replace the eligible telecommunications company receiving NUSF high-cost program support. The petitioner shall provide the following:

004.02G1a. The cost to provide the supported services;

004.02G1b. An estimate of the amount of NUSF high-cost program support needed in the area;

004.02G1c. Benefits to consumers;

004.02G1d. The supported services provided in unserved areas;

004.02G1e. A demonstration that the quality of service provided would equal the existing service or be better than service provided;

004.02G1f. A statement that the petitioner will adopt existing interconnection agreements for the support area; and,

004.02G1g. Specific demonstration and documentation of the ability of the petitioner to offer service to everyone on its own network.

004.02G2. If a competitive telecommunications carrier replaces the incumbent telecommunications carrier as provided in section 004.02Gl any carrier of last resort obligations shall be transferred to the competitive telecommunications carrier and the incumbent carrier not receiving high-cost support shall no longer have carrier of last resort obligations.

004.02H. Rule 004.02G does not apply to competitive NETCs serving users through the leasing of facilities such as unbundled network elements and authorized to receive NUSF high-cost program support by Commission Order.

004.02I. After notice and an opportunity for hearing has been provided, the Director may withhold or reduce NUSF high-cost support distributions to a carrier found to be in violation of a rule, regulation or Commission order.

004.02J Audit Requirements: Companies receiving NOSF high-cost program support shall comply with any audit requirements set forth by the Commission.

004.03 Telehealth Program:

004.03A Usage: All lines that receive NUSF support shall be used solely for the provision of healthcare.

004.03B Eligible Services and Equipment: Eligible services and equipment shall be determined by Commission Order.

004.03C Federal Funding: Hospitals shall first avail themselves of federal funding and other state and federal resources as a precondition of receiving NUSF support. NUSF support shall be considered supplemental and secondary to the receipt of federal funding.

004.03D Annual Funding Maximum: NUSF support for the Telehealth Program per calendar year shall be determined by Commission Order and is contingent upon funds being available.

004.03E Approved Telehealth Support: Support is determined by the Commission approved Telehealth Plan which specifically sets forth a list of hospitals, connection charges and other approved charges eligible for support.

004.03E1 Telehealth Plan Adjustments: Any requests to adjust the Telehealth Plan are to be filed in writing with the Director.

004.03E1a Review of Requests: The Director will review any requests for adjustments to the Telehealth Plan and will make a recommendation to the Commission at a public meeting of the Commission. The Commission will determine whether to approve or deny the recommendation of the Director.

004.03E1b Motion for Reconsideration: A motion for reconsideration may be filed with the Commission within 10 days from the date of Commission action.

004.03F Calculation of Support: All appropriate forms, containing accurate information, and invoice copies shall be provided to the Commission for funding to be calculated and released.

004.03F1 Support Schedule: Support will be based on a support schedule issued by the Commission and shall not exceed the amount approved in the Commission approved Telehealth Plan.

004.03F1a Reasonable Portions: NUSF support will be contingent on the rural hospitals being responsible for paying a portion of their costs for connectivity. The Commission will determine the hospital's portion of connectivity costs by Order.

004.03F2 Payment of Support: Support for the Telehealth Program will be disbursed to the Nebraska Eligible Telecommunications Carrier (NETC) providing the service to the hospital.

004.03F3 Changes to Service: The hospital and/or hospital network shall notify the Commission when any service is changed or terminated, so that support amounts can be modified accordingly.

004.03G Proxy Statement: If the submission of reimbursement requests are being made by a non-rural hub hospital on behalf of its endpoint rural hospital; a statement from each of the hospitals shall be provided to the Commission documenting their agreement to that arrangement.

004.03H Disconnection and Late Fees: A NETC providing telehealth services shall not disconnect or assess late fees on hospital accounts.

004.03I Audit Requirements: funding shall comply with any the Commission. Companies receiving telehealth audit requirements set forth by the Commission.

004.04 Nebraska Telephone Assistance Program (NTAP):

004.04A Eligibility and Support: Telecommunications companies receiving a designation to be an ETC for the purpose of receiving federal universal service support shall also be required to participate in the NTAP and shall be eligible to receive NTAP support.

004.04B. A telecommunications company offering Lifeline service shall comply with section 006 and Commission Orders relating to NTAP for continued eligibility for support.

004.05 Wireless Program:

004.05A Eligibility and Support: Eligibility for the wireless program shall be determined by Commission Order.

004.05B. A telecommunications company that receives NUSF support from the wireless program shall be required to file by June 1 of each year information detailing prior year historical investments, information estimating one year prospective investments by Nebraska wire center or county.

004.05C. A wireless telecommunications company that receives federal high-cost support shall file information to demonstrate the use of high-cost funding as required by Commission Order.

004.05D. A wireless telecommunications company that receives NUSF funding shall not be subject to the same obligations of an NETC receiving high-cost support. Obligations of a wireless carrier receiving NUSF funding may be determined by the Commission on a case-by-case basis and shall be designated by the Commission in an Order.

004.06 Payment Procedures: NUSF payments to an NETC will be made on a monthly basis and will be processed prior to the last state business day of the month.

004.07 Audit Requirements: A telecommunications company that receives NUSF funding shall have an independent third party perform, and attest to the validity of, an audit pursuant to the requirements in this Rule.

004.07A Provided Information: All information provided pursuant to Rule 004.02E shall be audited.

004.07B Annual Audit: A telecommunications company that receives NUSF funding shall perform an audit pursuant to this section on an annual basis, except as provided in Rule 004.07C. The results of each annual audit shall be provided to the Department before the end of the next calendar year following the audit period.

004.07C Tri-Annual Audit: A telecommunications company that receives NUSF funding, and does not conduct an annual third party audit in the ordinary course of its business, may elect to perform an independent third party audit pursuant to this Rule once per three-year period. The results of each tri-annual audit shall be provided to the Department by the end of each year that is evenly divided by three.

004.08 Payment Calculation:

004.08A Funding Mechanism: The calculation of NUSF funding shall be determined by a funding mechanism set forth in a Commission Order.

004.08B Annual Determination of Funding: On an annual basis, the Director shall recommend to the Commission the amount of funding available to be disbursed through the high-cost program, the NTAP program, wireless program and the Telehealth Program.

004.08C Adjustments: The Director may make adjustments to funding amounts disbursed to eligible telecommunications companies based on earnings information, investment information, amounts constituting inputs to the benchmark, census information, user count information and other information relevant to the Commission's distribution mechanism when consistent with Commission decisions. The Director may also make adjustments to correct clerical and administrative errors in the disbursement of funding.

004.08C1. An NETC affected by a rule 004.0BC adjustment may file a Request for Review with the Commission within thirty (30) days of the adjustment if the NETC disputes the adjustment or calculation made by the Director.

005 ACCESS PASS-THROUGH :

005.01 Required Pass-Through: A telecommunications company that receives a reduction in charges for access services ordered by the Commission pursuant to Neb. Rev. Stat. Section 86-140 shall pass on said reductions fully to its users. This reduction shall be passed through to users in a fair and reasonable manner.

005.02 Companies Required to Demonstrate Pass-Through: The Commission, at its discretion, may require a telecommunications company to demonstrate that reductions in access charges have been passed through pursuant to Rule 005.01.

005.03 Demonstration of Pass-Through: A telecommunications company that is required to demonstrate compliance with Rule 005.01 pursuant to Rule 005.02 shall demonstrate such compliance in accordance with a consistent set of data in a manner acceptable to the Commission.

005.03A Submission of Information: Information to demonstrate compliance with Rule 005.01 shall be submitted within 60 days of receiving notice from the Commission or by the date specified by the Commission, whichever is later.

006 NEBRASKA TELEPHONE ASSISTANCE PROGRAM (NTAP) :

006.01 General:

006.01A NTAP Number: NTAP Number shall mean the numeral assigned to an NTAP applicant filed by the Department.

006.01B NTAP Number Requirement: A telecommunications company shall only provide Lifeline and Linkup discounts to those users that have an assigned NTAP Number.

006.01C Monthly Reporting: A telecommunications company offering discounts shall report to the Department on a monthly basis information regarding Lifeline discount recipients in the manner set forth by the Department.

006.01D Audit Requirements: Any company receiving NTAP support shall comply with any audit requirements set forth by the Commission.

006.02 Lifeline Service Program:

006.02A Defined: Lifeline service shall mean the offering of a recurring service defined by Commission Order, at a reduced rate to qualifying users.

006.02B Reduction in Rates: Telecommunications companies that offer Lifeline service shall offer such service at the reduced rates specified by Order of the Commission.

006.02B1. Companies that offer Lifeline service shall apply any appropriate credits for a qualifying user in accordance with the eligibility date as provided by the Department.

006.02B2. Companies that offer Lifeline service shall apply any appropriate credits or removal of credits onto the user's account within sixty (60) days of receiving notice from the Department.

006.02B3. Qualifying users may receive the Lifeline credit on only the primary residential line per household.

006.02C Requirement to Offer Service: In cases where a qualifying user has a past due balance, a telecommunications company shall provide Lifeline services to that user as long as said user is making monthly payments towards any past due amounts.

006.02D Limitation/Blocking Service: Telecommunications companies that offer Lifeline service shall offer such service(s), if service is available, to all qualifying users at the time such persons subscribe to Lifeline service.

006.02D1. Companies that offer limitation/blocking service shall not charge Lifeline users for receiving said service if reasonable reimbursement is available as defined by Commission Order.

006.02E Service Deposits: Telecommunications companies that offer Lifeline service shall not collect a service deposit to initiate Lifeline service, if the qualifying user voluntarily elects toll blocking from the company, if available.

006.02E1. If toll blocking is unavailable, the telecommunications company may collect a service deposit.

006.02E2. If a qualifying user has a past due amount, the telecommunications company may not collect a service deposit if the user is making reasonable monthly payments towards any past due amounts.

006.02F Disconnection:

006.02F1. Telecommunications companies that offer Lifeline service shall not disconnect a qualifying user for non-payment of charges not directly a part of the Lifeline service if limitation/blocking services are available, unless granted a written waiver by the Commission for a specific user.

006.02F1a. Upon reasonable notice, a telecommunications company may block a qualifying user's access to toll services and other services not directly a part of the Lifeline service, for non-payment.

006.02F2. Telecommunications companies that offer Lifeline service shall not disconnect a qualifying user for non-payment until 60 days after all Lifeline and Link-Up credits due for a particular billing period have been fully applied to any billed amounts for which the qualifying user has not made full and complete payment.

006.02F3. In cases where a qualifying user has been disconnected for more than six (6) months, a telecommunications company shall obtain verification of continued eligibility from the Department before reapplying the Lifeline service to the qualifying user's account.

006.02F3A. A qualifying user shall be considered disconnected if said user is not receiving Lifeline service from any company that offers Lifeline service.

006.03 Link-Up Program:

006.03A Defined: Link-Up service shall mean a reduction in the telecommunications company's customary charge for commencing Lifeline service for a single connection at a user's principal place of residence.

006.03B Reduction: The Link-Up reduction shall be either half of the amount of connection charges or thirty dollars ($30), whichever is less.

006.03C Deferred Payment Schedule: A telecommunications company that offers Link-Up service shall offer a deferred schedule of payment for connection charges, for which the user does not pay interest. Charges of up to two hundred dollars ($200) may be deferred for a period not to exceed one year.

006.03D. Qualifying users may receive the Link-Up credit on only the primary residential line per household.

006.03E Subsequent Benefits: Telecommunications companies that offer Link-Up service shall allow a user to receive the benefit of the Link-Up program for a second or subsequent time only for a principal place of residence with an address different from the residence at which the Link-Up assistance was previously provided.

006.04 Qualifications:

006.04A Programs: To qualify for the Lifeline and/or Link-Up programs, a user shall be eligible to receive aid from at least one of the following:

(1) Medicaid;

(2) Food Stamps;

(3) Supplemental Security Income (SSI);

(4) Federal Public Housing Assistance;

(5) Low Income Home Energy Assistance Program (LIHEAP); or

(6) Children's Health Insurance Programs (SAM, MAC, E-MAC, and Kids Connection), as the financially responsible adult.

006.04A1. The Commission may, on an interim basis, designate additional low-income eligibility criteria by order until such time as a rulemaking can be completed.

006.04B User Name: The user that receives aid from a program listed in Rule 006.04A shall have his or her name on the account with the telecommunications company in order to qualify to receive support from the Lifeline and/or Link-Up programs, unless granted a waiver by the Commission for a specific user.

006.05 Requirements to Offer:

006.05A. All NETCs designated by the Commission for the purposes of receiving support from the NUSF shall be required to offer Lifeline and Link-Up services to qualifying users.

006.05B. The Commission may, at its discretion require, upon notice and hearing, a telecommunications company to provide Lifeline and Link-Up services to qualifying users.

006.06 Reporting Requirements:

006.06A. In cases where the Department requests information regarding a qualifying user's account, the company providing service shall provide all information requested by the Department.

006.06A1. The Department shall treat all user account information provided by the company as confidential to the extent required or authorized by state or federal law.

006.06B. Any telecommunications company shall comply with all reporting requirements of the Commission.

006.06B1. Telecommunications companies shall comply with reporting requirements in the manner prescribed by the Department.

006.07 Directory: Telecommunications companies that offer NTAP and telephone directory services shall provide printed information describing such programs in telephone directories.

006.07A Required Information: The information listed in telephone directories shall contain information on the following:

(1) Voluntary toll blocking; and

(2) Availability of reduced deposits.

006.07B Directory Index: If the telephone directory provided by a telecommunications company that offers Lifeline and/or Link-Up services contains an index, a reference to the information regarding such services shall be listed in the index.

006.08 Advertising: Telecommunications companies that offer NTAP services shall advertise the availability of such services through a bill insert or prominent bill message on an annual basis.

006.09 Notification: Telecommunications companies that offer Lifeline service shall inform all qualifying users at the time said persons subscribe to Lifeline service that credits due may not appear on their initial bills and that service will only be disconnected in accordance with Rule 006.02F.

007 ADMINISTRATIVE PENALTIES :

007.01 Violation of Rules: A company not in compliance with Neb. Rev. Stat. Sections 86-316 to 86-329 or the rules and regulations adopted and promulgated thereunder may be subject to civil penalties as provided in Title 291, Chapter 1, Section 027 of the Rules of Commission Procedure.

007.02 Refusal to Pay an Administrative Fine: A company that refuses or fails to pay an administrative fine within sixty (60) days from the date the fine is imposed shall be subject to Rule 007.04.

007.03 Repeat Violations: A telecommunications company that repeatedly violates the NUSF Rules shall be subject to Rule 007.04.

007.04 Show Cause Order: A telecommunications company that is in violation of Rule 007.02 or 007.03 shall be subject to a Show Cause Order filed pursuant to the Rules of Commission Procedure and the following penalties may be imposed on such company:

007.04A Certificated or Permitted Telecommunications Company: A telecommunications company that holds a Certificate of Public Convenience and Necessity of a permit granted by the Commission may have such certificate or permit revoked

007.04B Non-Certificated or Permitted Telecommunications Company: A telecommunications company that does not hold a Certificate of Public Convenience and Necessity or a permit from the Commission may be ordered to cease and desist from providing telecommunications services in Nebraska intrastate commerce.

007.05 Fine Limits: No administrative fine may exceed the limits set forth in the Neb. Rev. Stat. Section 75-156.

007.06 Notice: Whenever the Commission seeks to impose an administrative penalty pursuant to Rule 007 due to a violation, the Director or the Commission shall notify such company in writing sent by certified United States mail, return receipt requested, (a) setting forth the date, facts, and nature of each act or omission upon which each charge of a violation is based, (b) specifically identifying the particular statute, certificate, permit, or order violated, {c) that a hearing will be held and the time, date, and place of the hearing, (d) that in addition to the civil penalty provided in Rule 007, that the Commission may enforce additional penalties and relief as provided by law, and (e) that upon failure to pay any civil penalty determined by the Commission, the penalty may be collected by civil action in the District Court of Lancaster County, Nebraska.

007.06A Waiver of Hearing: Any company that receives notice of a violation of Rule 007 pursuant to Rule 007.06 may waive its right to a hearing and comply with any civil penalties described in said notice. The hearing will be canceled only upon receipt of a written request from the affected company and receipt of any administrative penalties that are due.

History

• Effective 2012-05-01

Chapter 11 Automatic Dialing-Announcing Devices Rules and Regulations

Neb. Admin. Code tit. 291, ch. 11 Automatic Dialing-Announcing Devices Rules and Regulations {#sec-291-nac-11 omnilex-key=us-ne-regs-official--title-291--291 NAC 11}

001 SCOPE :

001.01 General: These rules and regulations govern the use of automatic dialing-announcing devices as set forth in the Automatic Dialing-Announcing Devices Act.

001.02 Definitions: As set forth in this chapter, unless the context otherwise requires:

001.02A Automatic Dialing-Announcing Device: A device which selects and dials telephone numbers and automatically plays a recorded message.

001.02B Commission: The Nebraska Public Service Commission.

001.02C Emergency Purposes: Any situation affecting the health and safety of a consumer.

001.02D Established Business Relationship: A prior or existing relationship formed by a voluntary two-way communication between a person and a residential or business telephone subscriber, with or without an exchange of consideration, on the basis of an inquiry, application, purchase, or transaction by the subscriber regarding products or services offered by the person, which relationship has not been previously terminated by either party.

001.02E Person.: Any individual, firm, organization, corporation, company, association, partnership, joint stock association, body politic, common carrier, society, legal representative, trustee, receiver, assignee, guardian, executor or administrator.

001.02F Telephone Solicitation: A telephone call or message using an automatic dialing-announcing device for the purpose of encouraging the purchase or rental of, or investment in, property, goods , or services, which call or message is transmitted to any person. The term shall not include a call or message:

001.02F1. Made to any person with the person's prior express invitation or permission;

001.02F2. Made to any person with whom the caller has an established business relationship;

001.02F3. Made by a tax-exempt nonprofit organization;

001.02F4. Not made for commercial purposes;

001.02F5. Made for a commercial purpose but which does not include the transmission of unsolicited advertisement; or,

001.02F6. Placed by a live operator and a prerecorded message is not utilized.

001.02G Unsolicited Advertisement: Any material advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person without that person's express invitation or permission.

002 PERMITS AND REGISTRATIONS :

002.01 Permit or Registration Required: No person shall operate or connect any automatic dialing-announcing device for the purpose of making telephone solicitations or unsolicited advertisements on any telephone line unless the person has a current permit from the Commission for the device. Any person using an automatic dialing-announcing device other than for telephone solicitations or unsolicited advertisements shall register the device with the Commission. A separate permit or registration is required for each device connected or operated.

002.02 Application Forms:

002.02A Permit Applications: An applicant seeking a permit shall file a written application with the Commission and remit a fee of five hundred dollars ($500) for each device. The application shall be on a form prescribed by the Commission.

002.02B Registration Applications: An applicant seeking a registration shall file a written application with the Commission, no filing fee is required for a registration. The application shall be on a form prescribed by the Commission.

002.02C Review of Applications: Upon review of an application, the Commission shall determine if a permit or registration is required.

002.03 Demonstration and Inspection: Prior to issuing any permit or registration, the Commission may require the applicant to submit its automatic dialing-announcing device to a demonstration and inspection.

002.04 Permits and Registrations Not Transferrable: Permits or registrations are not transferable and a new permit or registration is required for a change in the person operating or connecting the automatic dialing-announcing device.

002.05 Filing with Telephone Company: Upon issuance of a permit or registration, and prior to operating or connecting the device to any telephone line, the permit holder or registrant shall notify the serving telephone company of the telephone line on which the device is proposed to be connected or operated. The telephone line shall be considered a business line.

002.06 Release of Telephone Line: All automatic dialing-announcing devices delivering a recorded message to a person shall release the telephone line of the person called within five (5) seconds of the time notification is transmitted to the device that the person called has hung up, or as soon thereafter as the serving telephone company's central office equipment permits, to allow the telephone line of the person called to be used to make or receive other calls.

002.07 Disconnection: Use of an automatic dialing-announcing device shall not impair the telephone service of others.

002.07A Automatic: The serving telephone company may suspend or disconnect, without prior notice, the telephone service of the permit holder or registrant if the use of the automatic dialing-announcing device causes the prevention, obstruction or delay of telephone service to others.

002.07B Notification: The serving telephone company shall immediately notify the permit holder or registrant in writing of such disconnection and the reason for the disconnection.

002.07C Reestablishment: Service may be reestablished with the consent of the serving telephone company or by order of the Commission after notice and hearing.

002.08 Changes in Information Contained in Application: The permit holder or registrant shall notify the Commission of any changes in the information contained in its application within five (5) days. This section shall not apply to script changes which shall be made pursuant to sections 003.03C and 004.04C.

002.09 Renewal of Permit or Registration; Duration of Permit or Registration: If a permit or registration is granted, the permit or registration shall remain in force for two (2) years from the date of issuance, and each application for the renewal of a permit or registration shall be treated as a new application. Applications for renewal of permits or registrations should be filed thirty (30) days prior to the expiration date to allow for review and consideration by the Commission. No device may be operated after the expiration date unless a renewed permit or registration has been issued by the Commission.

002.10 Sequential Dialing Prohibited: A person shall not connect or operate an automatic dialing-announcing device in such a manner as to allow it to dial telephone numbers sequentially which means in any manner other than a random manner. A detectable, predictable pattern which can be used to accurately project the device's number dialing shall satisfy a finding that sequential number dialing is taking place in violation of this section.

003 AUTOMATIC DIALING-ANNOUNCING DEVICES USED FOR TELEPHONE SOLICITATIONS AND UNSOLICITED ADVERTISEMENTS :

003.01 Hours: A person may only make a telephone solicitation or unsolicited advertisement using an automatic dialing-announcing device to a residential telephone line between the hours of 8:00 a.m. and 9:00 p.m., Monday through Saturday, and between the hours of 1:00 p.m. and 9:00 p.m., Sunday and legal holidays. All times indicated are local times of the party called.

003.02 Time Limit: No message transmitted by any automatic dialing-announcing device used for telephone solicitations or unsolicited advertisements shall exceed two (2) minutes in length.

003.03 Message Requirements: A person using an automatic dialing-announcing device for the purpose of making telephone solicitations or unsolicited advertisements shall deliver a message which:

003.03A. Within the first twenty-five (25) seconds of the call clearly states the identity of the person making the call.

003.03B. During or after the message, clearly states the telephone number, other than that of the device which made the call, or address of the person. Address shall include street address, website address, or email address.

003.04 Filing of Script: A person using an automatic dialing-announcing device for telephone solicitations or unsolicited advertisements or contracting with a third party to connect or operate an automatic-dialing announcing device for the purpose of making telephone solicitations or unsolicited advertisements shall file with the Commission the message to be used and any subsequent change to the within five (5) days of beginning to transmit the new message. In the event the five (5) day period for filing scripts falls on a weekend or holiday, the script shall be due the next business day.

003.04A. Script filings shall include the permit number of the automatic dialing-announcing device transmitting the script, the date the script first began to be transmitted, and an electronic audio file that indicates the run time of the message.

003.05 Do-Not-Call Lists: A person shall not make a telephone solicitation or unsolicited advertisement to a residential or business telephone line unless the caller has instituted procedures for maintaining a list of telephone subscribers who do not wish to receive telephone solicitations or unsolicited advertisements made by, or on behalf of, the caller. A caller shall at no time make telephone solicitations or unadvertised solicitations to subscribers on such list. Such procedures shall meet the following minimum standards:

003.05A. A written policy, available upon demand, for maintaining a do-not-call list must be established.

003.05B. Personnel engaged in any aspect of telephone solicitation or unsolicited advertisement must be informed of the existence of and trained in the use of the do-not-call list.

003.05C. If a person making a telephone solicitation or unsolicited advertisement, or on whose behalf a solicitation or advertisement is made, receives a request from a residential or business telephone subscriber not to receive calls from that person, the person shall record the request and place the subscriber's name and telephone number on the do-not-call list and the time the request is made. If the requests are recorded or maintained by someone other than the person on whose behalf the telephone solicitation or unsolicited advertisement is made, the person on whose behalf the solicitation or advertisement is made shall be liable for any failure to honor the do-not-call request. In order to protect a telephone subscriber's privacy, a person making telephone solicitations or unsolicited advertisements shall obtain a telephone subscriber's prior express consent to share the telephone subscriber's request not to be called with, or to forward such request to, someone other than the person on whose behalf a telephone solicitation or unsolicited advertisement is made or an affiliated entity.

003.05D. In the absence of a specific request by a telephone subscriber to the contrary, a residential or business telephone subscriber's do-not-call request shall apply to the particular person making the call or on whose behalf a call is made and shall hot apply to affiliated entities unless the telephone subscriber reasonably would expect them to be included given the identification of the caller and the product being advertised.

003.05E. A person making telephone solicitations or unsolicited advertisements shall maintain a do-not-call list for the purpose of any future telephone solicitations or unsolicited advertisements.

003.06 Emergency Numbers; Restrictions: A person shall not initiate a telephone solicitation or unsolicited advertisement, other than a call made for emergency purposes, using an automatic dialing-announcing device to:

003.06A. An emergency telephone line, including 911 or any emergency or business line of a hospital, physician or medical service office, health care facility, poison control center, fire protection agency, or law enforcement agency;

003.06B. The telephone line of any guest room of a hospital, health care facility, nursing home, or similar facility;

003.06C. Any telephone number assigned to a paging service, a cellular telephone service, a specialized mobile radio service, any other radio common carrier service, or any service for which the person is charged for the call; or,

003.06D. A residential or business telephone line unless the telephone solicitation or unsolicited advertisement is otherwise permitted by Neb. Rev. Stat. Sections 86-236 to 86-257.

003.07 Inspection: The permit holder shall inspect the automatic dialing-announcing device at least once a month to ensure proper operation and compliance with these rules, and shall maintain a record of such inspections for at least two (2) years. All automatic dialing-announcing devices used for telephone solicitations or unsolicited advertisements may be inspected by the Commission during the hours of operation specified in the application.

003.08 Facsimile Telephone Solicitation; Prohibited Use: A person shall not use a telephone facsimile machine, computer, or other device to send an unsolicited advertisement to a telephone facsimile machine.

003.09 Joint and Several Liability: A person contracting with a third party to connect or operate an automatic dialing-announcing device for the purpose of making telephone solicitations on any telephone line shall be jointly and severally liable with the third party for connecting and operating the automatic dialing-announcing device in violation of the Automatic Dialing-Announcing Devices Act or the rules and regulations adopted and promulgated under the act.

004 AUTOMATIC DIALING-ANNOUNCING DEVICES USED FOR OTHER THAN TELEPHONE SOLICITATIONS OR UNSOLICITED ADVERSTISEMENTS :

004.01 Registration: Any person using an automatic dialing-announcing device other than for telephone solicitations or unsolicited advertisements shall register the device with the Commission pursuant to the application process, without a fee, and shall include with the application a detailed explanation of the use planned and the message to be used.

004.02 Hours: A person may only make a telephone call for other than solicitation purposes using an automatic dialing-announcing device between the hours of 8:00 a.m. and 9:00 p.m., Monday through Saturday, and between the hours of 1:00 p.m. and 9:00 p.m., Sunday and legal holidays. All times indicated are local times of the party called.

004.03 Time Limit: No message transmitted by any automatic dialing-announcing device used for other than solicitation purposes shall exceed two (2) minutes in length. For messages allowing for called party inputs, including but not limited to polls or surveys, time for called party responses shall not be included in the calculation of the length of the message.

004.04 Message Requirements: A person using an automatic dialing-announcing device other than for telephone solicitations or unsolicited advertisements shall deliver a message which:

004.04A. Within the first twenty-five (25) seconds of the call clearly state the identity of the person paying for the message being transmitted;

004.04B. During or after the message, clearly states the telephone number, other than that of the device which made the call, or address of the person operating the device. Address shall include street address, website address, or email address.

004.05 Exceptions to Registration: Section 004 does not apply to:

004.05A. A message from any elementary, secondary, or postsecondary educational institution to any of its students, parents, or employees;

004.05B. A message to a person with whom the person placing the call or the person on whose behalf the message is being transmitted has an established business or personal relationship;

004.05C. A message from an employer advising any of its employees of work schedules; or

004.05D. A message from a political subdivision as defined in Neb. Rev. Stat. § 13-903.

004.06 Filing of Script: A person using an automatic dialing-announcing device other than for telephone solicitations or unsolicited advertisements or contracting with a third party to connect or operate an automatic dialing-announcing device for other than telephone solicitations shall file with the Commission the message to be used within twenty-four (24) hours of beginning to transmit the message. In the event the twenty-four (24) hour period for filing scripts falls on a weekend or holiday, the script shall be due the next business day.

004.06A. Script filings shall include the registration number of the automatic dialing-announcing device transmitting the script, the date the script first began to be transmitted, and an electronic audio file that indicates the run time of the message.

004.07 Joint and Several Liability: A person contracting with a third party to connect or operate an automatic dialing-announcing device for other than telephone solicitations shall be jointly and severally liable with the third party for connecting and operating the automatic dialing announcing device in violation of the Automatic Dialing-Announcing Devices Act or the rules and regulations adopted and promulgated under the act.

005 ENFORCEMENT :

005.01 Complaint: The Commission may conduct investigations upon written complaint and supporting affidavit that an applicable law, rule or regulation has been, or is being, violated .

005.01A Cease and Desist Order: The Commission may enter a Cease and Desist Order on an ex parte basis against the party named in the complaint.

005.01B Duration of Order: The order shall have a duration of no more than twenty (20) days, and a hearing upon the complaint shall be held no later than twenty (20) days after the order is entered.

005.02 Revocation or Suspension of Permit or Registration: Failure to comply with an applicable law, rule , or regulation shall constitute grounds for revocation or suspension of a permit or registration.

005.03 Administrative Fines: The Commission may administratively fine pursuant to Neb. Rev. Stat. Section 75-156 any person who violates the Automatic Dialing- Announcing Devices Act or the rules and regulations adopted and promulgated thereunder.

005.04 Other Penalties: In addition to any other penalties available at law, any person who violates such sections shall be guilty of a Class IV misdemeanor.

006 APPEALS :

006.01 Commission Decision; Appeal: A party seeking to obtain reversal, modification, or vacation of an order entered by the Commission pursuant to this Section may appeal such order in accordance with the state's Administrative Procedure Act.

History

• Effective 2018-02-27

Chapter 12 Manufactured Housing Rules and Regulations

Neb. Admin. Code tit. 291, ch. 12 Manufactured Housing Rules and Regulations {#sec-291-nac-12 omnilex-key=us-ne-regs-official--title-291--291 NAC 12}

001 SCOPE, STATE CODE, AND DEFINITIONS :

001.01 Scope and Application: All rules, regulations, and orders of the Nebraska Department of Health and Human Services Regulation and Licensure or its predecessor agency adopted prior to May 1, 1998, in connection with the powers, duties, and functions transferred to the Nebraska Public Service Commission under the Nebraska Uniform Standards for Manufactured Homes Act, shall continue to be effective until revised, amended, repealed, or nullified pursuant to law. In regard to any manufactured home displaying the United States Manufactured Home Seal, also referred to as United States Department of Housing and Urban Development (HUD) seal, no suit, action, or other proceeding, judicial or administrative, lawfully commenced prior to May 1, 1998, or which could have been commenced prior to that date, by or against such department or agency, or the director or employee thereof in such director or employee’s official capacity or in relation to the discharge of his or her official duties, shall abate by reason of the transfer of duties and functions from the Nebraska Department of Health and Human Services to the Nebraska Public Service Commission.

001.02 State Code for Manufactured Homes: There are hereby adopted the standards and regulations governing the body and frame design and construction and all plumbing, heating, and electrical systems of the United States Department of Housing and Urban Development (HUD) Manufactured Home Standards and Regulations Program, Title 24 CFR, Parts 3280, 3282 and 3283. All rules, regulations, guidelines and directives set forth in HUD Manufactured Home Standards Part 3280, Title 24 CFR, HUD Manufactured Home Regulations Part 3282, Title 24 CFR, and HUD Manufactured Home Consumer Manual Requirements Part 3283, Title 24 CFR shall be incorporated by reference and made a part of these rules and regulations with the same force and effect as if set forth fully herein.

001.03 Definitions: The following definitions shall apply to these standards. Where these definitions differ from those in the Standard adopted in Section 001.02, these shall be controlling.

001.03A Commission: The Nebraska Public Service Commission.

001.03B Department: The Nebraska Public Service Commission, Housing and Recreational Vehicle Department.

011.03C Person: Any individual, partnership, company, corporation, or association engaged in manufacturing, selling, offering to sell, or leasing manufactured homes.

002 SEALS :

002.01 Application for Seals: Any person, with a manufactured home manufacturing facility in the State of Nebraska, desiring to acquire a seal must meet the requirements of the code adopted in Section 001.02 and plan and quality assurance approval pursuant to either Section 003 or as allowed by HUD. The application form shall be requested from the Department and completed by the manufacturer. The completed form shall be accompanied by the required fee(s) in check form made payable to the Department of HUD and mailed to the Commission. In addition, fees shall be submitted to the Department by check, payable to the Nebraska Public Service Commission, in an amount equal to the number of seals requested multiplied by the seal fee set forth in Section 005.01.

003 PLAN AND QUALITY ASSURANCE REVIEW :

003.01 Application for Plan and Quality Assurance Review: All submissions to the Department for review shall be considered to be certified by the manufacturer that the building plans meet the requirements of these regulations.

003.02 Plan and Quality Assurance Submission Requirements: The manufacturer shall prepare and submit plans and quality assurance material, in triplicate, and at a minimum in accordance with the United States Department of Housing and Urban Development Manufactured Home Regulations, Title 24 CFR, Part 3282.203, incorporated herein by reference.

004 INSPECTIONS :

004.01 Inspections of Manufactured Homes: Only employees of the Department are to conduct inspections to assure compliance with the code for manufactured homes in the State of Nebraska. Such inspections are to be performed at reasonable times, without advance notice, at any factory, warehouse, or other establishment or place in which manufactured homes are manufactured, stored, offered for sale, or held for lease or sale.

004.02 Inspection of Records: Only employees of the Department are to inspect to assure compliance with the code, at reasonable times and within reasonable limits and in a reasonable manner, any such factory, warehouse, or other establishment or place, and to inspect such books, papers, records, and documents. Each such inspection shall be commenced and completed with reasonable promptness.

004.03 Inspection of Consumer Complaints: Such inspections are to be performed by the Department in accordance with regulations adopted in Section 001.02. Employees of the Department may inspect homes in the possession of consumers in the State of Nebraska at either the request of the homeowner, occupant, dealer or manufacturer. Such inspections are to be performed at a time agreeable with the homeowner or occupant. The Department shall notify the manufacturer and dealer of such inspection prior to the appointment.

004.04 Inspection of Alternate Construction (AC) Homes Manufactured in Nebraska Built to Title 24 CFR Part 3282.14:

004.04A Homes sited in Nebraska shall be site-inspected by the Department. Non-compliances shall be corrected by the manufacturer, or an entity acceptable to the manufacturer. A reinspection shall be made by the Department.

004.04B Homes sited outside of Nebraska shall be site-inspected by the Department or by a person duly designated by the Department. Non-compliances found shall be corrected by the manufacturer, or an entity acceptable to the manufacturer. A reinspection shall be made by the Department or by a person duly designated by the Department.

005 FEES :

005.01 Fees for Seals: A fee as established by the Commission on at least an annual basis after notice and hearing shall be charged for each seal issued by the Department. A seal shall be affixed to each transportable section of each manufactured home.

006 DEPARTMENT NOTIFICATIONS :

006.01 Inspection Reports: The Department will make a written inspecttion report for observed violations of the regulations during departmental inspections allowed in Section 004. A copy of all reports will be provided to the manufacturer.

006.01A Factory Inspection Reports and Red-Tags: The report shall reference the section of the regulation violated by the manufacturer and, if necessary, the manufacturer’s method of correction to bring the home(s) into compliance with the code if such corrections were made while the departmental representative was at the manufacturing facility. If the manufacturer is unable to complete repair(s) of the violations noted on the factory inspection report while the departmental representative is at the manufacturing facility, the departmental representative shall “Red-Tag” the home(s) for re-inspection and “Red-Tag” removal during the next scheduled factory inspection.

006.01B Record and Consumer Complaint Inspection Reports: Such reports will state any violation of these regulations and will be provided to the manufacturer for manufacturer’s response in accordance with the requirements adopted in Section 001.02.

007 PROCEDURES FOR CORRECTIVE ACTION :

007.01 Manufacturers Opportunity for Informal Presentation: If the Department determines that a manufactured home has a violation or contains a failure to conform which does constitute an imminent safety hazard or serious defect, it shall immediately notify the manufacturer of such finding and the Department shall afford such manufacturer an opportunity to present his or her views and evidence in support thereof to establish that there is no failure to conform. If, after such presentation by the manufacturer, the Department determines that such manufactured home does not comply with applicable departmental standards or contains a failure to conform which constitutes an imminent safety hazard or serious defect, the Department shall direct the manufacturer to furnish the notification specified in Section 007.01A.

007.01A Manufacturers Notification and Correction: Every manufacturer shall furnish notification of any failure to conform in any manufactured home produced by such manufacturer which he or she determines, in good faith, violates a standard adopted by the Commission which constitutes an imminent safety hazard or serious defect in a single home or non-compliance determined to be in a class of homes to the purchaser of such manufactured home, within a reasonable time after such manufacturer has discovered the failure to conform. The notification required shall be accomplished by: (a) Certified mail to the first purchaser, not including any dealer or distributor of such manufacturer, of the manufactured home containing the failure to conform and to any subsequent purchaser to whom any warranty of such manufactured home has been transferred; (b) Certified mail

to any other person who is a registered owner of such manufactured home and whose name and address has been ascertained pursuant to procedures established under Section 007.01B; (c) Certified mail or other more expeditious means to the dealer or dealers of such manufacturer to whom such manufactured home was delivered. The notification required shall contain a clear description of such failure to conform, an evaluation of the risk to manufactured home occupants’ safety reasonably related to such defect, and a statement of the measure(s) needed to repair the failure to conform. The notification shall also inorm the owner whether the failure to conform is a construction or safety failure to conform which the manufacturer will have corrected at no cost to the owner of the manufactured home, or a failure to conform which must be corrected at the expense of the owner.

If a manufacturer is required to furnish notification of a failure to conform in accordance with this Section, the manufacturer is also required to bring the manufactured home into compliance with the code adopted in Section 001.02 and correct the failure to conform or have the failure to conform corrected within a reasonable period of time at no expense to the owner if the failure to conform presents an unreasonable risk of injury or death to occupants of the affected manufactured home and the failure to conform is related to an error by the manufacturer in design or assembly of the manufactured home.

The Department may direct the manufacturer to make such corrections after providing an opportunity for oral and written presentation of views by interested persons. Nothing in this section shall limit the rights of the purchaser or any other person under any contract or other applicable law.

The manufacturer shall submit a remedy plan for repairing such failure to conform to the Department for its approval, or the manufacturer shall notify the Department of the corrective action it has taken and request departmental approval. Whenever a manufacturer is required to correct a failure to conform, the Department shall approve, with or without modification, after consultation with the manufacturer of the manufactured home involved, the manufacturer’s remedy plan including the date when, and the method by which, the notification and remedy required pursuant to this section shall be effectuated. Such date shall be the earliest practicable one, but shall not be more than sixty (60) days after the date of discovery or determination of the failure to conform, unless the Commission grants an extension of such period for good cause shown. The manufacturer shall implement any remedy plan approved by the Commission.

When a failure to conform in a manufactured home cannot be adequately repaired within the sixty days from the date of discovery or determination of the failure to conform, the Commission may require that the manufactured home be replaced with a new or equivalent manufactured home without charge or that the purchase price be refunded in full, less a reasonable allowance for depreciation based on actual use if the manufactured home has been in the possession of the owner for more than one year. Every manufacturer of manufactured homes shall furnish to the Department a true or representative copy of all notices, bulletins, and other communications sent to the dealers of the manufacturer or to purchasers of manufactured homes of the manufacturer regarding any failure to conform in any manufactured home produced by the manufacturer. The Commission shall disclose to the public so much of the information contained in such notices or other information obtained pursuant to the code as it deems will assist in carrying out the purposes of the code, but it shall not disclose any information which contains or relates to a trade secret, or which, if disclosed, would put the manufacturer at a substantial competitive disadvantage, unless it determines that it is necessary to carry out the purposes of the code.

007.01B Manufacturer’s Records: Every manufacturer of manufactured homes shall maintain a record of the name and address of the first purchaser of each manufactured home for purposes other than resale and, to the maximum extent feasible and reasonable, shall maintain procedure for ascertaining the name and address of any subsequent purchaser thereof and shall maintain a record of names and addresses so ascertained. Such records shall be kept for each manufactured home produced by a manufacturer.

008 RULES OF PRACTICE IN ADMINISTRATIVE HEARINGS :

008.01 Consideration: Evidence in a hearing involving a refusal to issue a seal will ordinarily be received in the following order: (1) Applicant; (2) Department. Evidence in a hearing involving a suspension or revocation of a seal will ordinarily be received in the following order: (1) Department; (2) Holder thereof.

008.02 Denials and Revocations of Seals: Whenever the Department refuses to issue, suspends, or revokes a seal for a manufactured home, it shall send to the applicant or holder thereof, by either registered or certified mail, a notice setting forth the particular reasons for the determination. Such notice shall state that the refusal of issuance, suspension, or revocation shall become final ten (10) days after the receipt of the notice, unless the applicant or holder thereof, within such ten-day period, provides written notice to the Commission of a request for a formal hearing. The Commission shall then schedule a formal hearing to be held before the Commission within thirty (30) days of the receipt of the request.

008.03 Disposition: Parties to a refusal of issuance, suspension, or revocation hearing shall be noticed of the decision and order of the Commission by registered or certified mail.

008.04 Notice of Hearing: The notice of any such formal hearing shall state the name of the person, organization, corporation, or other legal entity which shall appear as applicant or holder of a seal; shall state the time, date, and place of the hearing; shall state the reason(s) for the proposed refusal of issuance, suspension, or revocation; and shall be served on the applicant or holder at least ten (10) calendar days prior to the date set for hearing, by either registered or certified mail.

008.05 Official Record: The Commission shall prepare an official record in all refusal of issuance, suspension, or revocation hearings, including testimony and exhibits.

009 RULE REVISION :

009.01 Ad Hoc Committee: The Commission shall utilize an ad hoc committee to review any proposed revisions to these rules. All ad hoc committee members shall be selected by the Commission and meet in person, via video conference, or through any combination of the aforementioned methods as determined to be convenient to the Commission and the ad hoc committee members. The membership shall consist of, when possible, no more than one person from each of the following groups: manufactured home manufacturer, manufactured home retailer, manufactured home park owner or operator, professional engineer or architect, or city building official. Committee members are ineligible for expense reimbursement.

009.02 Ad Hoc Committee Meeting Notification: Committee members and the general public shall be notified of the date, time and place of the meeting and proposed agenda as required by the Nebraska Open Meetings Act, §84-1411(1). The Department shall also reasonably notify industry representatives of any meeting of the Ad Hoc Committee prior to such meeting with a copy of the proposed agenda.

History

• Effective 2008-02-06

Chapter 13 Modular Housing Unit Construction Rules and Regulations

Neb. Admin. Code tit. 291, ch. 13 Modular Housing Unit Construction Rules and Regulations {#sec-291-nac-13 omnilex-key=us-ne-regs-official--title-291--291 NAC 13}

001 SCOPE, DEFINITIONS, AND STATE CODES:

001.01 Scope and Application: All rules, regulations, and orders of the Department of Health and Human Services Regulation and Licensure or its predecessor agency adopted prior to May 1, 1998, in connection with the powers, duties, and functions transferred to the Nebraska Public Service Commission under the Nebraska Uniform Standards for Modular housing Units Act, shall continue to be effective until revised, amended, repealed, or nullified pursuant to law.

In regard to any modular housing unit displaying the Nebraska Modular Housing Unit Seal, no suit, action, or other proceeding, judicial or administrative, lawfully commenced prior to May 1, 1998, or which could have been commenced prior to that date, by or against such department or agency, or the director or employee thereof is such director’s or employee’s official capacity or in relation to the discharge of his or her official duties, shall abate by reason of the transfer of duties and functions from the Nebraska Health and Human Services Department to the Nebraska Public Service Commission.

Any amendment(s) to any section(s) of these administrative rules and regulations which deals with construction standards shall apply only to those modular housing units manufactured on or after the effective date of the amendment(s). All modular housing units for which purchase orders have been received by the manufacturer prior to the effective date of any such amendment shall be considered to be manufactured prior to the effective date of the amendment. All modular housing units considered manufactured prior to the effective date of any amendment must meet the requirements of the section(s) as set out prior to any amendment.

Further, these Rules and Regulations shall govern the design, manufacture, and sale of modular housing units intended for sale, lease or installation in this state, or elsewhere, wherever such modular housing units are reciprocally accepted by virtue of the Nebraska seal. No agency or political subdivision of the state or a municipality shall require compliance with local codes or standards for the construction of

or the installation of structural, plumbing, heating, or electrical systems in a modular housing unit which are different from those established by the department in these administrative rules and regulations. An agency or political subdivision of this state or a municipality may prescribe reasonable and necessary requirements of the site development for modular housing units in accordance with local standards. Site development is defined for the purposes of such act as those local development requirements including, but not limited to, foundations, site utility requirements and their connections to the modular housing units, zoning and subdivision regulations, and fire control provisions.

001.02 Definitions: The following definitions shall apply to these standards. Where these definitions differ from those in the Standards adopted in Sections 001.03A, 001.03B, 001.03C and 001.03D, these shall be controlling:

001.02A Authorized Representative shall mean any person, firm or corporation, or employee thereof, designated by the Department to perform inspection services.

001.02B Commission shall mean the Nebraska Public Service Commission.

001.02C Date of manufacture shall mean the date the modular housing unit has been completed with all but minor finishing details and has left the assembly line.

001.02D Dealer shall mean any person other than a manufacturer who sells, offers to sell, distributes, or leases manufactured modular housing units primarily to persons who in good faith purchase or lease a modular housing unit for purposes other than resale.

001.02E Defect shall mean any defect in the performance, construction, components, or material of a modular housing unit that renders the modular housing unit or any part thereof not fit for the ordinary use for which it was intended.

001.02F Imminent Safety Hazard shall mean a hazard that presents an imminent and unreasonable risk of death or severe personal injury.

001.02G Initial Package shall mean the materials required for submission to the Department by a manufacturer who plans to market or manufacture modular housing units in Nebraska and is applying for seals to put on them, based on a showing that its use of proposed plans and specifications will produce modular housing units which meet the applicable standards. Each initial package shall consist of:

001.02G1 Two copies of the compliance assurance manual (subsection 003.01B);

001.02G2 Two copies of the plans and specifications for each modular housing unit model (subsections 003.04).

001.02G3 A completed application for plan approval form prescribed by the Commission;

001.02G4 Completed application for seals on a form prescribed by the Commission; and

001.02G5 A check or money order for applicable fees.

001.02H Manufacturer shall mean any person who manufactures or produces modular housing units.

001.02I Modular housing unit shall mean any dwelling whose construction consists entirely of or the major portions of its construction consist of a unit or units not fabricated on the final site for the dwelling unit, which units are movable or portable until placed on a permanent foundation and connected to utilities. Modular housing units shall be taxed as real estate. The term modular housing unit shall not include a manufactured home (mobile home).

001.02J Person shall mean any individual, partnership, company, corporation, limited liability company, or association engaged in manufacturing, selling, offering to sell, or leasing modular housing units.

001.02K Compliance Assurance Manual shall mean the manual prepared by the modular housing unit manufacturer that lists the production process, guidelines and actions necessary to assure individual unit compliance with the standard adopted by the State of Nebraska (subsection 003.01B).

001.02L Seal shall mean a device or insignia issued by the Nebraska Public Service Commission to be displayed on the exterior of the modular housing unit to evidence compliance with Departmental standards.

001.02M Typicals shall mean the drawings that detail repetitive construction techniques necessary to assure code compliance.

001.03 Standards for Modular Housing Units: Except as provided by statute, the following standards are hereby adopted as the State of Nebraska Standards governing all construction and installation of plumbing, heating, and electrical systems in modular housing units.

001.03A INTERNATIONAL RESIDENTIAL CODE - 2015 EDITION, as published by the International Code Council, Inc., 500 New Jersey Avenue NW, 6th Floor, Washington, DC 20001, and made a part hereof by reference with the following revisions and amendments. A copy of this code is available to be viewed at the Nebraska Public Service Commission office at 300 The Atrium, 1200 N Street, Lincoln, Nebraska, during normal business hours.

001.03A1 Omit Chapter 1 entirely.

001.03A2 In Chapter 3, Section R301.2, remove the last sentence.

001.03A3 In Chapter 3, Table R301.2 (1), the value for “Ground Snow Load” shall be 30 psf, “Wind Design Speed (mph)” shall be 90 mph, “Wind Design Topographic Effects” shall be “No”, “Wind Design Special wind region” shall be “No”, “Wind Design Windborne debris zone” shall be “No”, “Seismic Design Category” shall be “C”. “Winter Design Temp” shall be “-4”, “Ice Barrier Underlayment Required” shall be “Yes” and “Air Freezing Index” shall be “2500”, and “Mean Annual Temp” shall be “50”. Footnote “d”, second sentence shall read, “Wind exposure category shall be “C”.

001.03A4 In Chapter 3, Table R301.5, change the value for “Sleeping rooms” to 40.

001.03A5 In Chapter 3, omit Section R313 entirely.

001.03A6 In Chapter 9, Section R905.2.7.1, remove all words prior to and including the first comma (,) and capitalize the “a” in “an”.

001.03A7 In Chapter 9, Section R905.2.7, remove all words prior to and including the first comma (,) and capitalize the “i” in “ice”.

001.03A8 In Chapter 11, Section N1101.2, retain only the section’s first sentence and replace the remainder of the section with, “The climate zone for all of Nebraska is “5”. The climate zone for homes to be located outside of Nebraska shall be determined by the site’s authority having jurisdiction”.

001.03A9 In Chapter 24, omit exceptions 3 and 4 in Section G2406.2.

001.03A10 In Chapter 31, Section P3103.2, the last sentence shall read, “Any increase in the size of the vent shall be made inside the structure to within three (3) inches (76 mm) of the thermal envelope of the building.”

001.03A11 Omit Chapters 33, 34, 35, 36, 37, 38, 39, 40, 41, 42 and 43.

001.03A12 Adopt Appendix A, B, C and K.

001.03B INTERNATIONAL BUILDING CODE, 2015 Edition, as published by the International Code Council, Inc., 500 New Jersey Avenue NW, 6th Floor, Washington, DC 20001, made part hereof by reference with the following revisions and amendments. This code shall be used only for buildings that are not detached one- and two-family dwellings and multiple single-family dwellings (townhouses) not more than three stories high with separate means of egress. A copy of this code is available to be viewed at the Nebraska Public Service Commission office at 300 The Atrium, 1200 N Street, Lincoln, Nebraska, during normal business hours.

001.03B1 In Chapter 1, omit Sections 101.1, 101.2, 103, 104, 105, 107, 108, 109, 110, 111, 112, 113, 114, 115 and 116.

001.03C INTERNATIONAL PLUMBING CODE, 2015 Edition, as published by the International Code Council, Inc., 500 New Jersey Avenue NW, 6th Floor, Washington, DC 20001, made a part hereof by reference with the following revisions and amendments. This code shall be used only for buildings that are not detached one- and two-family dwellings and multiple single-family dwellings (townhouses) not more than three stories high with separate means of egress. A copy of this code is available to be viewed at the Nebraska Public Service Commission office at 300 The Atrium, 1200 N Street, Lincoln, Nebraska, during normal business hours.

001.03C1 In Chapter 1, omit Sections 101.1, 102, 103, 104, 105, 106, 107, 108, 109 and 110.

001.03C2 Adopt Appendix D, F and G.

001.03D NATIONAL ELECTRICAL CODE, adopted by the Nebraska State Electrical Board in 100 NAC 18 pursuant to Nebraska Revised Statutes Section 81-2104, issued and adopted by the National Fire Protection Association in Publication Number 70 is made a part hereof by reference. A copy of this code is available to be viewed at the Nebraska Public Service Commission office at 300 The Atrium, 1200 N Street, Lincoln, Nebraska, during normal business hours.

001.03E INTERNATIONAL MECHANICAL CODE, 2015 Edition, as published by the International Code Council, Inc., 500 New Jersey Avenue NW, 6th Floor, Washington, DC 20001, made a part hereof by reference with the following revisions and amendments. This code shall be used only for buildings that are not detached one- and two-family dwellings and multiple single-family dwellings (townhouses) not more than three stories high with separate means of egress. A copy of this code is available to be viewed at the Nebraska Public Service Commission office at 300 The Atrium, 1200 N Street, Lincoln, Nebraska, during normal business hours.

001.03E1 In Chapter 1 omit Sections 101.1, 102, 103, 104, 105, 106, 107, 108, 109 and 110.

001.03E2 Adopt Appendix A.

001.03F INTERNATIONAL FUEL GAS CODE, 2015 Edition, as published by the International Code Council, Inc., 500 New Jersey Avenue NW, 6th Floor, Washington, DC 20001, made a part hereof by reference with the following revisions and amendments. This code shall be used only for buildings that are not detached one- and two-family dwellings and multiple single-family dwellings (townhouses) not more than three stories high with separate means of egress. A copy of this code is available to be viewed at the Nebraska Public Service Commission office at 300 The Atrium, 1200 N Street, Lincoln, Nebraska, during normal business hours.

001.03F1 In Chapter 1 omit Sections 101.1, 102, 103, 104, 105, 106, 107, 108, 109 and 110.

001.03F2 Adopt Appendix A, B and C.

001.03G These standards shall have the same force and effect as rules and regulations of the Nebraska Public Service Commission as if set out verbatim in this section, and shall be considered the State standards in regard to modular housing units.

002 SEALS :

002.01 Acquisition of Seal: Any person desiring to acquire a seal must meet the requirements of either 002.01A or 002.01B.

002.01A: Meet the requirements of Section 003 and compliance assurance program approval pursuant to Section 004.

002.01B: Have each home inspected twice, at a minimum, by a Commission representative at the convenience of the Commission. The manufacturer shall notify the Commission in advance so the Commission is able to inspect each home in the rough-in state (prior to the home being enclosed but after the framing, wiring and plumbing have been installed) and again when the home is fully completed.

002.02 Application for Seals: Any person who has met the applicable requirements of Subsection 002.01 shall apply for seals on a form prescribed by the Commission.

002.03 Denial and Suspension of Seals: The denial and suspension of seals shall be performed as described in the NEBRASKA UNIFORM STANDARDS FOR MODULAR HOUSING UNITS ACT. The Commission or an authorized representative of the Commission may order a manufacturer or dealer to refrain from selling, offering to sell or leasing any modular housing unit determined to be in noncompliance with the state codes, even though a Nebraska seal or reciprocal state seal is affixed to the unit. The Commission or authorized representative of the Commission may affix to said non-complying unit or component thereof an insignia or device indicating such prohibition.

002.04 Lost or Damaged Seals:

002.04A When a seal becomes lost or damaged, the Commission shall be notified immediately in writing by the manufacturer or dealer. The manufacturer or dealer shall specify the state seal number lost or damaged.

002.04B All damaged seals shall be promptly returned. Damaged seals shall be replaced by the Commission with a new seal at Commission cost.

002.05 Placement of Seals:

002.05A Each seal shall be assigned and affixed to a modular housing unit before its shipment from the manufacturing plant and a record of each seal assignment shall be submitted as set forth in Subsection 002.06.

002.05B The seal shall be securely affixed to a lower corner of a window.

002.06 Records: A construction compliance certificate, prescribed by the Commission, shall be submitted to the Commission by the 10th of each month after the seal is affixed to the home. This rule applies to all Nebraska manufacturers for each unit manufactured in Nebraska and to all out of state manufacturers with housing units destined for Nebraska.

002.07 Unit Identification: Each modular housing unit shall be assigned a serial number and each major transportable section of the house shall carry this serial number. The serial number shall be readily visible. The following information shall be placed directly or by reference on one or more permanent data plates as prescribed by the Commission in the vicinity of the electrical distribution panel or in some other designated location that is readily accessible for inspection.

002.07A Manufacturer's name and address.

002.07B Serial number of the unit.

002.07C Model designation and name of manufacturer of major factory-installed appliances.

002.07D Where applicable, identification of permissible type of gas for appliances.

002.07E Name and date of standards complied with.

002.07F State seal number.

002.07G Design loads.

002.07H Special conditions or limitations of the unit.

002.07I Date of manufacture.

002.07J Electrical Ratings - instructions and warnings on voltage, phase, size, and connections of units and grounding requirements.

002.07K Insulation Values.

003 PLAN APPROVAL :

003.01 General Requirements: Applications, plans, and specifications, and other documentation shall be submitted as indicated below:

003.01A All plans and specifications of basic systems or variations thereof, including all elements relating to specific components and properly identified as relating to said components, shall be submitted in duplicate and accompanied by an application for review on a form supplied by the Commission. When required by Nebraska Revised Statutes, '81-3401to 81-3455, all plans and specifications submitted to the Commission shall be prepared only by persons who are registered as professional engineers and architects in Nebraska.

003.01B A compliance assurance manual (two copies each) shall be provided with index including but not limited to the following:

003.01B1 Standards: The manual shall identify which of the following standards are adhered to by the manufacturer as adopted by the State of Nebraska:

003.01B1a INTERNATIONAL RESIDENTIAL CODE, 2009 Edition.

003.01B1b INTERNATIONAL PLUMBING CODE, 2009 Edition.

003.01B1c INTERNATIONAL MECHANICAL CODE, 2009 Edition.

003.01B1d NATIONAL ELECTRICAL CODE, adopted by the Nebraska State Electrical Board.

003.01B1e INTERNATIONAL FUEL GAS CODE, 2009 Edition.

003.01B1f INTERNATIONAL BUILDING CODE, 2009 Edition.

003.01B2 IDENT. (Identification) Identification of plant, modular housing models produced and manufacturing plant personnel involved with principal inspection agencies and related activities.

003.01B3 EXT. INSP. (External Inspection) Agreements for principal inspection agencies and related activities.

003.01B4 A.C. ORGAN. (Assurance Compliance Organization) Company organization chart, functional characteristics of quality control groups, and resumes of key quality assurance personnel.

003.01B5 PRODUCTION Description of product flow by work stations, workload at stations, inspection, production line testing, and final (at plant) inspection.

003.01B6 MATERIALS Inspection procedure for controlling incoming material, materials in storage, specifications and approved materials list.

003.01B7 SALES Sales contract and related obligations incurred by manufacturer and dealer.

003.01B8 SHIPPING Responsibility related to transportation of manufacturer's modular units.

003.01B9 ENGINEERING Coding of drawings and calculations. Cross indexing of data.

003.01C If the manufacturer plans to produce the same design at more than one location, an additional set of the compliance assurance manual and inspection procedures for each additional location of manufacture shall be submitted to the Commission.

003.01D Plans shall be drawn to scale or properly proportioned with dimensions.

003.02 Required Construction Details: Plans and specifications for modular housing units shall indicate but not be limited to the following details:

003.02A General:

003.02A1 Details and method of installation of modular housing units or components to foundations or to each other.

003.02A2 All exterior elevations.

003.02A3 Cross sections as necessary to identify major building components to include complete structural details with justification (tests or calculations).

003.02A4 Attic access and attic ventilation.

003.02A5 Fire separation details, if required by code.

003.02A6 Sizes, locations, and types of doors and windows.

003.02B Complete heat loss, plumbing, mechanical and electrical plans or specifications indicating all pertinent elements for each model.

003.03 Validity of Approval: An approval granted by the Commission shall be valid from the date of issuance as a continuous certification, provided that the plans, specifications, and compliance assurance programs remain in compliance with the State Codes for modular housing units.

003.04 Confirm Information: Plans, specifications, and other information shall provide units which meet the state codes and shall be confirmed by calculations or tests. When designs cannot be verified by calculations, test of components must be conducted by a registered professional engineer or independent testing agency, the cost of which will be borne by the manufacturer.

003.05 Evidence of Plan Approval: Required material shall be submitted in duplicate. Plan approval shall be evidenced by a letter of approval from the Commission and the Commission stamp on each approved page. One copy of all approved documentation shall be returned to the manufacturer. Additional sets will be approved if requested.

004 COMPLIANCE ASSURANCE QUALITY CONTROL PROGRAM :

004.01 General: It shall be the manufacturer's responsibility to execute every aspect of the compliance assurance program. The manufacturer shall continue to be responsible for all corrective actions required. Each manufacturer must obtain approval of their compliance assurance program from the Commission.

004.02 Requirements of Manufacturer: The manufacturer of modular housing units shall submit the following, at a minimum, in duplicate:

004.02A Compliance assurance manual with index.

004.02B Installation procedures with appropriate inspection procedures. Utility hook-up information shall contain appropriate inspection criteria and test description.

004.02C Identification of the manufacturer's representative who will be assigned the responsibility for implementing the compliance assurance program, and define such individual's functional obligation, responsibility and authority. The Commission shall be advised of any subsequent change.

004.02D A statement identifying who is responsible directly, or by means of an agent, for timely and effective performance of service and repairs related to code compliance.

004.02E Changes to the compliance assurance manual.

004.03 Requirements of Inspection Agencies: To ensure that the final product conforms to the adopted construction standards set forth in Subsection 001.03, "Standards for Modular Housing Units", inspection agencies shall follow the following requirements:

004.03A Be totally familiar with the procedures, materials, and design specifications, as stated in the manufacturer's approved design plans and compliance assurance manual.

004.03B During the in-plant inspection, the inspector shall check for, but not be limited to, the following:

004.03B1 Floor Framing:

004.03B1a Materials: Structural, framing members - joists, beams, stringers, blocking, bridging.

004.03B1a(1) Species

004.03B1a(2) Grade

004.03B1a(3) Size(s)

004.03B1a(4) Moisture Content

004.03B1a(5) Preservative Treatment

004.03B1a(6) Condition/ Tolerances (e.g., warp, bow, splits, twist)

004.03B1b Operations:

004.03B1b(1) Measuring and Cutting

004.03B1b(2) Drilling and Notching

004.03B1b(3) Layout/Spacing

004.03B1b(4) Framing for Floor Openings (e.g., stairwells)

004.03B1c Fasteners: Nails, bolts/screws, joist hangers.

004.03B1c(1) Size

004.03B1c(2) Type/Grade

004.03B1c(3) Condition

004.03B1d Connections:

004.03B1d(1) Number (of fasteners)

004.03B1d(2) Location and Spacing

004.03B1d(3) Method (e.g., toenail, end-nail)

004.03B1d(4) Bearing of Members

004.03B1d(5) Washers (with bolts/screws)

004.03B1d(6) Workmanship

004.03B2 Floor Insulation:

004.03B2a Materials: Moisture barrier, thermal insulation.

004.03B2a(1) Size (e.g., thickness, weight)

004.03B2a(2) Type/Grade

004.03B2a(3) Condition (e.g., dry, undamaged)

004.03B2b Installation:

004.03B2b(1) Moisture Barrier

004.03B2b(2) Thermal Insulation

004.03B2b(3) Workmanship

004.03B3 Floor Sheathing:

004.03B3a Materials: Plywood, proprietary sheathing types.

004.03B3a(1) Size (e.g., thickness)

004.03B3a(2) Type/Grade

004.03B3a(3) Condition/ Tolerances

004.03B3b Fasteners:

004.03B3b(1) Nails, Staples

004.03B3b(2) Adhesives

004.03B3c Installation:

004.03B3c(1) Measuring and Cutting

004.03B3c(2) Layout

004.03B3c(3) Nails, Staples

004.03B3c(4) Adhesives

004.03B3c(5) Methods

004.03B4 Wall Framing and Setting:

004.03B4a Materials: Structural framing members - studs, plates, and lintels.

004.03B4a(1) Species

004.03B4a(2) Grade

004.03B4a(3) Size(s)

004.03B4a(4) Moisture Content

004.03B4a(5) Condition/ Tolerances (e.g., warp, bow, splits, twist)

004.03B4b Operations:

004.03B4b(1) Measuring and Cutting

004.03B4b(2) Drilling and Notching

004.03B4b(3) Layout/Spacing

004.03B4b(4) Framing for Wall Openings

004.03B4c Fasteners: Nails, bolts/screws, staples.

004.03B4c(1) Size

004.03B4c(2) Type/Grade

004.03B4c(3) Condition

004.03B4d Connections:

004.03B4d(1) Number (of fasteners)

004.03B4d(2) Location and Spacing

004.03B4d(3) Method (e.g., toenail, end-nail)

004.03B4d(4) Bearing of Members

004.03B4d(5) Plumb and Square

004.03B4d(6) Workmanship

004.03B4e Erection/Setting of Walls:

004.03B4e(1) Connections/ Fasteners

004.03B4e(2) Bearing of Members

004.03B4e(3) Workmanship

004.03B5 Wall Insulation:

004.03B5a Materials: Moisture barrier, thermal insulation.

004.03B5a(1) Size (e.g., thickness, weight)

004.03B5a(2) Type/Grade

004.03B5a(3) Condition (e.g., dry undamaged)

004.03B5b Installation:

004.03B5b(1) Moisture Barrier

004.03B5b(2) Thermal Insulation

004.03B6 Interior Wall Covering:

004.03B6a Materials: Gypsum Wallboard

004.03B6a(1) Size (thickness)

004.03B6a(2) Type/Grade

004.03B6a(3) Condition

004.03B6b Fasteners:

004.03B6b(1) Nails, screws, wallboard clips

004.03B6b(2) Adhesives

004.03B6c Installation:

004.03B6c(1) Nails, Screws

004.03B6c(2) Adhesives

004.03B6c(3) Method

004.03B7 Ceiling/Roof Framing and Setting:

004.03B7a Materials: Structural framing members - rafters, joists, roof trusses.

004.03B7a(1) Species

004.03B7a(2) Grade

004.03B7a(3) Sizes

004.03B7a(4) Moisture Content

004.03B7a(5) Condition/ Tolerances (e.g., warp, bow, splits, twist)

004.03B7b Operations:

004.03B7b(1) Measuring and Cutting

004.03B7b(2) Drilling and Notching

004.03B7b(3) Layout/Spacing

004.03B7b(4) Laps and Splices

004.03B7b(5) End Bearing

004.03B7b(6) Framing for Openings

004.03B7c Fasteners: Nails, bolts/screws, truss plates

004.03B7c(1) Size

004.03B7c(2) Type/Grade

004.03B7c(3) Condition

004.03B7d Connections:

004.03B7d(1) Number (of fasteners)

004.03B7d(2) Location and Spacing

004.03B7d(3) Method (e.g., toenail, end-nail)

004.03B7d(4) Bearing of Members

004.03B7d(5) Plumb and Square

004.03B7d(6) Workmanship

004.03B7e Erection/Setting of Ceilings/ Roof:

004.03B7e(1) Connections/ Fasteners

004.03B7e(2) Bearing of Members

004.03B7e(3) Workmanship

004.03B8 Interior Ceiling Covering:

004.03B8a Materials: Gypsum Wallboard.

004.03B8a(1) Size (thickness)

004.03B8a(2) Type/Grade

004.03B8a(3) Condition

004.03B8b Fasteners:

004.03B8b(1) Nails, Screws, Wallboard Clips

004.03B8b(2) Adhesives

004.03B8c Installation:

004.03B8c(1) Nails, Screws

004.03B8c(2) Adhesives

004.03B8c(3) Method

004.03B9 Plumbing:

004.03B9a Materials:

004.03B9a(1) Pipe - D.W.V.

004.03B9a(2) Pipe - Water Supply and Distribution

004.03B9a(3) Pipe - Gas Fuel Supply Piping

004.03B9a(4) Plumbing Fixtures/Drains (traps, trap arms)

004.03B9a(5) Valves

004.03B9a(6) Appliances and Equipment

004.03B9a(7) Miscellaneous - Air gaps, pipe coatings, compounds, solder

004.03B9b Install Drainage System:

004.03B9b(1) Piping

004.03B9c Install Venting System:

004.03B9c(1) Installation

004.03B9d Install Traps and Trap Arms:

004.03B9d(1) Installation

004.03B9e Install Joints and Connections:

004.03B9e(1) Installation

004.03B9f Install Indirect Waste Piping, Wet Vented Systems And Special Wastes:

004.03B9f(1) Installation

004.03B9g Install Plumbing Fixtures:

004.03B9g(1) Installation

004.03B9h Install Water Distribution System:

004.03B9h(1) Installation

004.03B9i Install Fuel Gas Piping:

004.03B9i(1) Installation

004.03B9j Install Water Heater and Vents:

004.03B9j(1) Installation

004.03B10 Electrical:

004.03B10a Materials:

004.03B10a(1) Service Equipment

004.03B10a(2) Distribution Panel and Load Center

004.03B10a(3) Feeder Circuits

004.03B10a(4) Branch Circuits

004.03B10a(5) Fixed Appliances, Ranges, Water Heaters

004.03B10a(6) Outlet Boxes, Switches, Junction Boxes, Fittings

004.03B10a(7) Lighting Fixtures, Lampholders and Lamps

004.03B10b Install Electrical Service:

004.03B10b(1) Identification

004.03B10b(2) Mounting Cabinet

004.03B10b(3) Service Entrance

004.03B10b(4) Grounding Continuity

004.03B10b(5) Gutter at Service

004.03B10b(6) Service Disconnect

004.03B10b(7) Workmanship

004.03B10c Install Distribution:

004.03B10c(1) Identification

004.03B10c(2) Mounting

004.03B10c(3) Over Current 111Protection

004.03B10c(4) Grounding and Bonding

004.03B10c(5) Workmanship

004.03B10d Install Feeder Circuits:

004.03B10d(1) Identification

004.03B10d(2) Drilling, Boring-Studs/Joists

004.03B10d(3) Mechanical Protection

004.03B10d(4) Mechanical Continuity

004.03B10d(5) Installation

004.03B10d(6) Workmanship

004.03B10e Install Branch Circuits:

004.03B10e(1) Identification

004.03B10e(2) Drilling, Boring-Studs/Joists

004.03B10e(3) Mechanical Protection

004.03B10e(4) Mechanical Continuity

004.03B10e(5) Installation

004.03B10e(6) Workmanship

004.03B10f Install Fixed Appliances, Ranges, Water Heaters:

004.03B10f(1) Marking

004.03B10f(2) Supply Circuits

004.03B10f(3) Location

004.03B10f(4) Grounding

004.03B10f(5) Over Current Protection

004.03B10f(6) Workmanship

004.03B10g Install Outlet, Switch and Junction Boxes and Fittings:

004.03B10g(1) Identification

004.03B10g(2) Mounting and Installation

004.03B10g(3) Size and Shape

004.03B10g(4) Covers and Canopies

004.03B10g(5) Conductors

004.03B10g(6) Accessibility

004.03B10g(7) Grounding, Bonding and Insulation from Supports

004.03B10g(8) Workmanship

004.03B10h Lighting Fixtures, Lampholders, Lamps, Rosettes, Outlet Boxes:

004.03B10h(1) Identification

004.03B10h(2) Installation

004.03B10i Testing of System:

004.03B10i(1) Continuity Test

004.03B10i(2) Functional Test of Fixtures and Appliances

004.03B11 Mechanical (HVAC) System:

004.03B11a Materials:

004.03B11a(1) Heating Equipment, Furnaces, Room Heaters

004.03B11a(2) Ventilation Systems

004.03B11a(3) Air Conditioning Equipment

004.03B11a(4) Miscellaneous Heat Producing Appliances - Ranges, Dryers

004.03B11b Install Warm Air Furnaces:

004.03B11b(1) Identification

004.03B11b(2) Installation

004.03B11b(3) Circulating Air Supply

004.03B11b(4) Conditioned Air Supply

004.03B11b(5) Combustion Air

004.03B11b(6) Workmanship

004.03B11c Vents/Chimneys:

004.03B11c(1) Identification

004.03B11c(2) Type/System

004.03B11c(3) Size/Area

004.03B11c(4) Location/Support

004.03B11c(5) Length/Pitch/ Clearance

004.03B11c(6) Termination

004.03B11c(7) Connectors

004.03B11c(8) Unused Openings

004.03B11c(9) Workmanship

004.03B11d Ducts:

004.03B11d(1) Identification

004.03B11d(2) Fastening/Support

004.03B11d(3) Location

004.03B11d(4) Plenum

004.03B11d(5) Workmanship

004.03B11e Install Floor Furnaces, Room Heaters:

004.03B11e(1) Identification/ Label/Listing

004.03B11e(2) Type/System

004.03B11e(3) Location/Access

004.03B11e(4) Combustion Air Supply

004.03B11e(5) Grilles/Registers

004.03B11e(6) Support

004.03B11e(7) Protection from Damage

004.03B11e(8) Controls-Manual/ Auto

004.03B11e(9) Electrical Connectors

004.03B11e(10) Workmanship

004.03B11f Install Ventilation System:

004.03B11f(1) Ducts

004.03B11f(2) Hoods

004.03B11f(3) Workmanship

004.03B11g Install Air Conditioning Equipment:

004.03B11g(1) Identification

004.03B11g(2) Location

004.03B11g(3) Support

004.03B11g(4) Access

004.03B11g(5) Circulating Air Supply

004.03B11g(6) Return Air Limitation

004.03B11g(7) Workmanship

004.03B11h Install Miscellaneous Heat Producing Appliances, Ranges, Dryers:

004.03B11h(1) Identification

004.03B11h(2) Location

004.03B11h(3) Clearances

004.03B11h(4) Ducts

004.03B11h(5) Workmanship

004.03B11i Testing of Mechanical Merchandise:

004.03B12 Ceiling Insulation:

004.03B12a Materials: Moisture Barrier, Thermal Insulation

004.03B12a(1) Size (e.g., thickness, weight)

004.03B12a(2) Type/Grade

004.03B12a(3) Condition (e.g., dry, undamaged)

004.03B12b Installation:

004.03B12b(1) Moisture Barrier

004.03B12b(2) Thermal Insulation

004.03B13 Miscellaneous Components (Window, Exit Door, and Stairway) Installation:

004.03B13a Materials:

004.03B13a(1) Doors and Windows

004.03B13a(2) Stairways

004.03B13b Installation:

004.03B13b(1) Door and Windows

004.03B13b(2) Stairways

004.03B14 Wall Sheathing:

004.03B14a Materials: Plywood, fiberboard, proprietary sheathing types.

004.03B14a(1) Size (e.g., thickness)

004.03B14a(2) Type/Grade

004.03B14a(3) Condition/Tolerance

004.03B14b Fasteners:

004.03B14b(1) Nails, Staples

004.03B14b(2) Adhesives

004.03B14c Installation:

004.03B14c(1) Measuring and Cutting

004.03B14c(2) Layout

004.03B14c(3) Nails, Staples

004.03B14c(4) Adhesives

004.03B15 Exterior Siding:

004.03B15a Materials:

004.03B15a(1) Exterior Wall Siding

004.03B15a(2) Weather Flashing

004.03B15a(3) Caulking Compounds/Mastics

004.03B15b Fasteners:

004.03B15b(1) Nails, Staples

004.03B15b(2) Adhesives

004.03B15c Installation:

004.03B15c(1) Flashing

004.03B15c(2) Layout

004.03B15c(3) Weather Tightness

004.03B15c(4) Nails, Staples

004.03B15c(5) Adhesives

004.03B15c(6) Caulking Application

004.03B15c(7) Corner Treatment

004.03B15c(8) Painting/Finishing

004.03B16 Roof Sheathing:

004.03B16a Materials: Plywood, proprietary sheathing types.

004.03B16a(1) Size (e.g., thickness)

004.03B16a(2) Type/Grade

004.03B16a(3) Condition/Tolerances

004.03B16b Fasteners:

004.03B16b(1) Nails, Staples, Plyclips

004.03B16b(2) Adhesives

004.03B16c Installation:

004.03B16c(1) Measuring and Cutting

004.03B16c(2) Layout

004.03B16c(3) Nails, Staples

004.03B16c(4) Adhesives

004.03B16c(5) Methods

004.03B17 Finish Roofing:

004.03B17a Materials:

004.03B17a(1) Underlayment

004.03B17a(2) Roofing

004.03B17a(3) Weather Flashing

004.03B17a(4) Nails

004.03B17b Installation:

004.03B17b(1) Underlayment

004.03B17b(2) Flashing

004.03B17b(3) Layout

004.03B17b(4) Nails

004.03B17b(5) Exposure

004.03B17b(6) Workmanship

004.03B18 Compliance Inspection and Certification:

004.03B18a Compliance Review:

004.03B18a(1) Manufacturers checklist (traveler)

004.03B18a(2) Test equipment and procedures

004.03B18a(3) Material storage

004.03B18a(4) Drawing availability

004.03B18a(5) Design Referral responses

004.03B18b Seal Review:

004.03B18b(1) Contents

004.03B18b(2) Location

004.03B18b(3) Attachment

004.03B18c Construction Compliance Certificate Review

004.03B18d Manufacturer's Data Plate:

004.03B18d(1) Contents

004.03B18d(2) Location

004.03B18d(3) Attachment

004.04 Initial and Monitoring In-Plant Inspection by Inspection Agencies:

004.04A Initial In-Plant Inspection: Once a Manufacturer's compliance assurance manual and plans have been approved, the inspection agency shall perform the initial inspection. The initial inspection shall consist of the inspection agency making a station-by-station thorough evaluation of the manufacturer's operation to assure that the manufacturer is operating in accordance with the criteria set forth in the previously approved compliance assurance manual and plans. In so doing, the inspection agency shall utilize the in-plant inspection checklist specified in Subsection 004.03.

If the manufacturer during the initial inspection is found to be producing units in accordance with the approved compliance assurance manual and plans, the inspection agency shall notify the manufacturer, in writing, with a copy being forwarded to the Nebraska Public Service Commission.

The notification letter to the manufacturer from the inspection agency shall be signed by an authorized agent of the inspection agency and shall include the following:

004.04A1 Name of inspection agency.

004.04A2 Name of inspector(s).

004.04A3 Date(s) inspection was performed.

004.04A4 Name and address of manufacturer.

004.04A5 Statement from the inspection agency stating “A thorough, complete and station-by-station inspection and evaluation of the manufacturer’s construction and inspection process was performed in conformance with its approved plans and compliance assurance manual and Nebraska’s standards for modular housing units, and the inspection agency is satisfied that the manufacturer can produce modular housing units in conformance with Nebraska standards for modular housing units on an on-going basis.”

004.04A6 Signed and dated by an authorized agent of the inspection agency.

004.04B If the initial inspection reveals deviations from the previously approved compliance assurance manual and plans, the inspection agency shall notify the manufacturer, in writing, of deviations, specifying in detail the observed deviations. A copy of this letter shall be sent to the Nebraska Public Service Commission. Upon notification from the plant that the specified deviations have been corrected, the inspection agency shall again make an initial inspection of the plant following the procedure previously outlined in this section 004.04A.

004.04C Monitoring In-Plant Inspections: Following notification to a manufacturer under Part 004.04A, the inspection agency shall undertake monitoring in-plant inspections at a frequency sufficient to inspect every home that will receive the Nebraska modular housing unit seal and to assure continuing compliance with the manufacturer's compliance assurance program. Additional factors which the inspection agency shall take into consideration in determining frequency of monitoring in-plant inspections are as follows:

004.04C1 Production Volume

004.04C2 Design Complexity of Units

004.04C3 The qualifications of the manufacturer's own in-house compliance control organization.

004.04C4 The experience record of the manufacturer.

004.04D The in-plant inspection agency shall utilize the in-plant inspection check list in Subsection 004.03 to assure that each construction feature (structural, mechanical, plumbing, and electrical) is fully evaluated.

004.05 Seal Issuance: Upon satisfactory completion of the initial in-plant inspection and notification letter issued to the manufacturer by the inspection agency, the manufacturer shall act in accordance with the provisions of Section 002.

005 FEES :

005.01 Fees for Seals: One seal is required per modular housing unit. A fee shall be charged for each seal issued by the Commission for a modular housing unit as established at least annually after public notice and hearing by the Commission.

005.02 Plant Inspection Fee: Fees shall be charged by the Commission for the inspection of manufacturing plants located outside the State of Nebraska in an amount not to exceed the actual cost of such inspection. The fees shall consist of reimbursement by the manufacturer, to the State, of the inspector's time, and (a) airfare; (b) ground transportation; (c) lodging; and (d) miscellaneous expenses, charged in accordance with the State of Nebraska's current employee travel expense reimbursement policy. In the event that the state inspector inspects more than one manufacturer's plant on the same trip, the fees which cannot be specifically identified to each plant shall be prorated among all manufacturers whose plants were inspected.

005.03 Engineering Services Fee: A person who submits an initial package (see 001.02G) to the Commission for review and approval shall be charged for Commission engineering services provided for performing the review of the initial package at an hourly rate as established annually after public notice and hearing by the Commission based upon sixty (60) hours of review time.

006 RECIPROCITY LIST :

006.01 Procedure to Determine Reciprocity: The Commission shall amend section 006.02, and add to the reciprocity list a state, upon a showing that the standards, codes and enforcement practices are at least equal to or are more stringent than those established by the Commission. Any affected person may petition the Commission pursuant to the Rules of Commission Procedure as codified by state law and Nebraska Administrative Code, Title 291, Chapter 1. A modular housing unit which bears the seal of any state which has been placed on the reciprocity list shall not be required to bear the seal issued by this state.

006.02 Reciprocity List: The Commission shall make available to all interested individuals a list of those states whose standards, codes and enforcement practices for modular housing units are at least equal to those established by the Commission and are being enforced by such other state.

006.02A List of Reciprocal States: None

007 ENFORCEMENT ACTIONS :

007.01 Denials and Suspensions: Whenever the Commission determines to refuse to issue or suspend a seal or deny plan or compliance assurance approval for a manufacturer or becomes aware of the existence of a defect or imminent safety hazard, it shall send to the manufacturer, by either registered or certified mail, a notice setting forth the particular reasons for the actions. Such notice shall state that the refusal of issuance, suspension, or denial shall become final fifteen (15) working days after the receipt of the notice, unless the manufacturer within such fifteen working day period, shall give written notice to the Commission of the desire for a formal hearing. The Commission shall then schedule a formal hearing to be held before the Commission such act of scheduling to be performed within twenty (20) working days of the receipt of the request and such hearing to be held within sixty (60) working days of the receipt of the request. No seals shall be sent by the Commission to the manufacturer during this period of time before the hearing. Resumption of transmittal of seals shall depend upon the results of the hearing.

007.02 Hearings: Any hearings held before the Commission shall be governed by the Rules of Commission Procedure as codified by state law and Nebraska Administrative Code, Title 291, Chapter 1.

008 RULE REVISIONS :

008.01 Ad Hoc Committee: The Commission shall utilize an ad hoc advisory committee of four (4) members to review any proposed revisions to these rules. All ad hoc committee members shall be selected by the Commission and meet in person, via video conference or telephone conference, or through any combination of the aforementioned methods as determined to be convenient to the Commission and the ad hoc committee members. The membership shall consist of, when possible, no more than one person from each of the following groups (modular housing unit manufacturer, modular housing unit retailer, professional engineer or architect, city building official). Committee members are ineligible for expense reimbursement.

History

• Effective 2017-03-06

Chapter 14 Recreational Vehicles Rules and Regulations

Neb. Admin. Code tit. 291, ch. 14 Recreational Vehicles Rules and Regulations {#sec-291-nac-14 omnilex-key=us-ne-regs-official--title-291--291 NAC 14}

001 SCOPE, DEFINITIONS, AND STATE CODE :

001.01 SCOPE AND APPLICATION. The Scope and Applicability of these rules and regulations is described in Nebraska Revised Statute §71-4620.01.

Exemptions for Recreational Vehicles manufactured in Nebraska for distribution outside the state are described in 71-4606.

Recreational vehicles temporarily displayed in Nebraska by Nebraska licensed dealers adhering to the following requirements are exempt from all other sections of these rules and regulations. Recreational vehicles sold in Nebraska are not eligible for this exemption:

001.01A Dealer making application must be a licensed dealer as described in Neb. Rev. Stat. §71-4603.

001.01B The recreational vehicle model will be currently approved for sale in Nebraska (see Section 004).

001.01C The recreational vehicle is allowed to be displayed in Nebraska for a maximum of thirty-six (36) hours.

001.01D Dealer applicant will complete a form as prescribed by the Commission.

001.02 DEFINITIONS. The following definitions apply to these standards. The terms and definitions in Neb. Rev. Stat. §71-4603 are hereby incorporated into this chapter. Such terms not specifically identified in statute are defined below. Where these definitions differ from those in the Standards adopted in subsection 001.03, these will control.

001.02A Alteration means the replacement, addition, modification or removal of any equipment or installations which may affect the construction, design, or plumbing, heating or electrical system or the functioning thereof in recreational vehicles subject to the State code;

001.02B Authorized Representative means any person, firm or corporation, or employee thereof, designated by the Department to perform inspection services;

001.02C Department means the Nebraska Public Service Commission, Housing and Recreational Vehicle Department;

001.02D Initial Package means the materials required for submission to the Department by a manufacturer who plans to sell recreational vehicles in Nebraska and is applying for seals to put on them, based on a showing that its use of proposed plans and specifications will produce recreational vehicles which meet or exceed the applicable standards. Each initial package will consist of:

001.02D1 Two paper copies or electronically to psc.housing-rv@nebraska.gov of the quality control manual (refer to subsection 004.02);

001.02D2 Two paper copies or electronically to psc.housing-rv@nebraska.gov of the plans and specifications for each recreational vehicle model (refer to subsections 004.03 through 004.08);

001.02D3 A completed paper application form or electronically to psc.housing-rv@nebraska.gov as prescribed by the Commission.

001.02D4 A completed paper seal request form or electronically to psc.housing-rv@nebraska.gov as prescribed by the Commission.

001.02D5 A check or money order or electronic payment for applicable fees. The initial package, as well as subsequent models and revisions, are subject to the yearly renewal process and fees.

001.02E New Model means a specific floor plan that includes specific plumbing, electric, mechanical equipment, and components installed and located in accordance with the plans submitted for approval. Re-arrangement of furniture, built in or otherwise, that has no impact on systems does not constitute a new model.

001.02F Quality Control Manual means the manual prepared by the manufacturer that lists the production process, guidelines and actions necessary to assure individual vehicle compliance with the standards adopted by the State of Nebraska (refer to subsection 004.02);

001.02G Typical Drawing means a specific drawing that is common to more than one model.

001.02H Yearly Renewal, provided the standard remains unchanged, means the annual extension of the initial package and subsequent models previously approved by the Department beyond the initial twelve (12) month period.

001.03 STANDARDS. Standards for all recreational vehicle types, except park trailers, dealing with body and frame design, and construction, and with the installation of plumbing, heating, and electrical systems in recreational vehicles approved and adopted by the National Fire Protection Association and known as the NFPA 1192 STANDARD ON RECREATIONAL VEHICLES 2021 EDITION, are hereby adopted and incorporated by reference. (It is available from N.F.P.A., 1 Batterymarch Park, PO Box 9101, Quincy, MA 02269-9101, Phone 1-800-344-3555).

Standards for park trailers dealing with body and frame design, and construction, and with the installation of plumbing, heating, electrical systems and structural elements in park model type of recreational vehicles approved and adopted by the Recreational Park Trailer Industry Association and by the American National Standards Institute and known as ANSI A 119.5 RECREATIONAL PARK TRAILERS, 2020 Edition, are hereby adopted and incorporated by reference. (It is available from the Recreational Vehicle Industry Association (RVIA), 1896 Preston White Drive, Reston, VA 20191, Phone 703-620-6003).

The Standards are also available for viewing (during normal business hours excluding weekends and holidays) at the office of the Nebraska Public Service Commission, Housing and Recreational Vehicle Department, 300 The Atrium, 1200 N Street, Lincoln, NE 68508.

002 SEALS .

002.01 APPLICATION FOR SEALS. Any person desiring to acquire a seal must meet the requirements of this section and must apply for seals on the form prescribed by the Commission. The application must be accompanied by the seal fee set forth in that form, the number of seals requested and a check or money order, payable to the Nebraska Public Service Commission. A completed form and payment may also be submitted electronically.

002.02 ACQUISITION OF SEAL. Any person, except one altering a recreational vehicle (refer to Section 003), must show compliance to the standard and acquire a seal by one of the following methods:

002.02A A dealer lot inspection which includes:

002.02A1 Requesting the dealer lot inspection on a form prescribed by the Commission and;

002.02A2 Meeting the recreational vehicle standards as shown by the dealer lot inspection.

002.02B Submission of an Initial Package (refer to subsection 001.02K) for review and approval.

002.03 ACQUISITION OF SEALS REGARDING ALTERATION. Any person altering a recreational vehicle bearing or required to bear a seal qualifies for acquisition of a seal by following the requirements set forth in subsection 003.01A.

002.04 DENIAL AND REVOCATION OF SEALS. Neb. Rev. Stat. §71-4609(2) identifies the circumstances under which the department will refuse to issue a seal.

The Department must revoke seals from any manufacturer, and not issue seals to any manufacturer, that refuses a factory inspection. Seals will not be reissued to the manufacturer or to manufacturer’s units on a dealer’s lot pursuant to subsection 002.02A, until a factory inspection is subsequently performed and the inspection determines adequate compliance to these rules and regulations.

Neb. Rev. Stat. §71-4609(3) identifies the circumstances under which the Department will suspend or revoke seals.

No dealer or distributor will sell a recreational vehicle in Nebraska if it contains a defect, a serious defect, an imminent safety hazard or does not display the state seal.

002.05 LOST OR DAMAGED SEALS.

002.05A When a seal becomes lost or damaged, the Department must be notified immediately in writing by the holder. The holder must specify the manufacturer, the serial number, and when possible, the seal number.

002.05B All damaged seals must be promptly returned for a replacement from the Department. Lost seals will be replaced by the Department with a new seal upon payment of the seal fee as adopted by the Commission.

002.06 PLACEMENT OF SEALS.

002.06A Each seal must be assigned and affixed to a specific recreational vehicle and a record of each seal assigned must be submitted as set forth in subsection 002.07.

002.06B The seal must be securely affixed near the primary entrance of the recreational vehicle, not less than six (6) inches above the floor line, before it leaves the manufacturing plant.

002.07 RECORDS. The manufacturer must submit to the Department, by the 10th of each month, a listing of the seals used on a form prescribed by the Commission.

002.08 VEHICLE IDENTIFICATION.

002.08A Each recreational vehicle sold, displayed in the state, offered for sale, or leased in this state must bear a legible identifying serial number. Each recreational vehicle must also bear identification which includes the date of manufacture.

002.08B The following information must be displayed as described:

002.08(B)(1) SERIAL NUMBERS.

002.08(B)(1)(i) For travel trailers and other towable units, serial numbers will be permanently stamped in a visible location on the front frame cross member or coupler

002.08(B)(1)(ii) For truck campers and motor homes, serial numbers must be permanently stamped on a metal plate permanently attached to the exterior surface of the unit, near the door. The serial number must be visible at all times.

002.08(B)(2) Data plates will be provided to manufacturers by the department. Manufacturers must complete data plates and affix them to the inside of a cabinet door. Manufacturers may develop and use their own data plates so long as they contain, at a minimum, the following required information:

002.08(B)(2)(i) Manufacturer’s name, Manufacturer’s address, State Seal Number, Unit Serial Number, Model Number, Manufacturer and Model Identification for the installed equipment (furnace, air conditioner(s), refrigerator, microwave, range, generator and water heater), and the following language “Recreational Vehicles bearing a State of Nebraska label are manufactured under a program of plan evaluations and representative inspection for conformation with Recreational Vehicle Standard, NFPA 1192 – [list current edition]. See owner’s manual for all service connection and operating instructions.” “NEBRASKA PUBLIC SERVICE COMMISSION, HOUSING AND RECREATIONAL VEHICLE DEPARTMENT, 300 THE ATRIUM, 1200 “N” STREET, P.O. BOX 94927, LINCOLN, NE, 68509, 402-471-0518”.

003 ALTERATIONS TO RECREATIONAL VEHICLES .

003.01 ALTERATION APPLICATION.

003.01A Any dealer or manufacturer proposing alteration to a recreational vehicle bearing a seal will apply to the Department prior to making the alteration. The Department's review and response to the applicant will identify any deviations from the Standard. Upon approval of the application, the Department will schedule an inspection of the completed alteration(s). If the recreational vehicle meets the Standard after the proposed alteration, the Department will allow the applicant to retain the seal, otherwise the applicant will surrender the seal and the recreational vehicle will be removed from the state. Such application will be in writing to the Department and consist of, at a minimum:

003.01A1 Name of dealer or manufacturer proposing the alteration,

003.01A2 Description of proposed alteration,

003.01A3 Identification of Standard section being affected by the alteration,

003.01A4 Identification of the recreational vehicle to include the name of the manufacturer, manufacturer’s address, manufacturer’s assigned serial number, and the seal number affixed to the unit, and

003.01A5 Anticipated date of proposed alteration.

003.01B The following does not constitute an alteration:

003.01B1 Repairs with approved component parts.

003.01B2 Conversion of listed fuel-burning appliances in accordance with the terms of their listing; or conversion to electric where provisions for such conversion have been made by the appliance manufacturer and said appliance is listed by a recognized testing agency.

003.01B3 Adjustment and maintenance of equipment.

003.01B4 Replacement of equipment in kind.

004 INITIAL AND SUBSEQUENT PACKAGE SUBMISSION AND APPROVAL .

004.01 APPLICABILITY. Any person desiring to acquire seals in accordance with subsection 002.02B will submit to the Department, for review and approval, the requirements set forth in this section.

004.02 QUALITY CONTROL PROCEDURE.

Each Manufacturer must submit and receive Department approval for its quality control manual.

004.02A The manufacturer or his designated representative will consent to investigations and inspections at reasonable hours by the Department for field verification of satisfactory quality control.

004.02B The manuals will outline the procedure which will direct the manufacturer to construct recreational vehicles in accordance with the approved plans specifying the following:

004.02B1 Scope and purpose.

004.02B2 Receiving inspection procedure for basic materials.

004.02B3 Material storage and stock rotation procedure.

004.02B4 Types and frequency of production process inspection.

004.02B5 Sample of inspection control form used.

004.02B6 Test equipment.

004.02B7 Control of drawings and material specifications.

004.02B8 Test procedures.

004.02B9 Record-keeping procedures.

004.02B10 Method to incorporate revisions in an orderly manner.

004.02B11 A map identifying the manufacturing plant(s) location.

004.02C Where the manufacturer proposes changes to the quality control manual, two copies of such changes will be submitted to the Department for approval.

004.03 PLAN SUBMITTAL PROCEDURE. Plans, specifications and other information will provide designs which meet the standards and will be confirmed by calculations or tests. When designs cannot be verified by calculations, testing of components must be conducted by a registered professional engineer or testing agency, the cost of which will be borne by the manufacturer.

004.04 EVIDENCE OF PLAN APPROVAL. Plan approval will be evidenced by a letter of approval from the Department and the Department stamp on each approved page. One copy of all approved documentation will be returned to the manufacturer.

004.05 GENERAL REQUIREMENTS. Applications, plans, specifications, and other documentation will be submitted in as indicated below:

004.05A All plans and specifications, including all elements relating to specific components will be properly identified, submitted, in duplicate or electronically and accompanied by an application for review on a form prescribed by the Commission.

004.05B Two copies or electronically of each quality control manual prepared by the manufacturer will be submitted;

004.05C If the manufacturer plans to produce the same design at more than one location, plan approval for each location may be obtained at the time of original filing, subject to submission for each design of the following:

004.05C1 One additional application form as prescribed by the Commission for plan approval for each location of manufacture;

004.05C2 One additional set of quality control and inspection procedures if mailed for each additional location of manufacture.

004.06 REQUIRED CONSTRUCTION DETAILS. Plan submission requirements dealing with body and frame design; construction; and with the installation of plumbing, heating, and electrical systems in recreational vehicles approved and adopted by the American National Standards Institute and by the Recreational Vehicle Industry Association and known as the AMERICAN NATIONAL STANDARD UNIFORM PLAN APPROVAL FOR RECREATIONAL VEHICLES, ANSI/RVIA UPA-1-2019, are hereby adopted and incorporated here by reference. (It is available from RVIA, 1896 Preston White Drive, Reston, VA, 20191, Phone 703-620-6003). It is also available for viewing at the office of the Nebraska Public Service Commission, Housing and Recreational Vehicle Department, 300 The Atrium, 1200 N Street, Lincoln, NE, 68508 during normal business hours excluding weekends and holidays.

004.07 TESTS. All tests or calculations to validate a design must be performed and stamped by a registered professional engineer. A copy of the stamped results of such tests must be provided to the Department for review.

004.08 VALIDITY OF APPROVAL. Plan approval is valid for twelve (12) months provided the standard remains unchanged. If the designs or the State Code do not change at the end of the twelve month period, the manufacturer may request an extension of the approved designs by letter seeking an additional twelve (12) months along with applicable fees and a completed form as prescribed by the Commission.

004.09 CONFIDENTIALITY. Any person under this Act may file a notice that such person claims information filed with or obtained by the Department is confidential, pursuant to Nebraska Revised Statutes §71-4615. Such notice should contain the exact portions of such record and the basis under §71-4615 by which it is claimed to be confidential. The Commission will make a final determination of confidentiality upon request for release by any other person.

005 DEPARTMENT INSPECTIONS .

005.01 FIELD INSPECTIONS OF ALTERATIONS. Alterations requiring departmental inspection (refer to Section 003) will be inspected by a departmental representative and determined to be in substantial compliance with the standards prior to sale or lease.

005.02 PLANT AND DEALER LOT INSPECTIONS. The Department will periodically make, or cause to be made, an independent inspection of recreational vehicles from each manufacturing facility seeking approval and certification, including reciprocal certification, in order to verify the reliability of each compliance assurance program.

006 FEES .

006.01 FEES FOR SEALS. Fees for seals will be set as described in Nebraska Revised Statute §71-4604.01 (2).

006.02 PLANT INSPECTION FEE. Fees will be charged for the inspection of manufacturing plants located outside the State of Nebraska in an amount not to exceed the actual cost of such inspection. The fees consist of reimbursement by the manufacturer, to the State, of the inspector's (a)time;(b) airfare; (c) ground transportation; (d) lodging; and (e) miscellaneous expenses, charged in accordance with the State of Nebraska's current employee travel expense reimbursement policy. In the event that the state inspector inspects more than one manufacturer's plant on the same trip, the fees which cannot be specifically identified to each plant will be prorated among all manufacturers whose plants were inspected. Inspection expenses will be paid prior to any issuance of seals.

006.03 PLAN INSPECTION FEE. Plan inspection fees will be charged as outlined in Nebraska Revised Statute §71-4604.01(3).

006.04 SINGLE UNIT INSPECTION FEE. Nebraska recreational vehicle seals will not be affixed to models not previously reviewed and approved by the Department. An inspection fee as set by Neb. Rev. Stat. 71-4604.01 (b)(4), will be assessed to the manufacturer for any inspection of a new recreational vehicle subject to these rules that does not display the seal issued by the State of Nebraska or some state on the reciprocity list. The same fee will be assessed for any new recreational vehicle subject to these rules that displays the State seal but has not had the respective model reviewed and approved.

007 RECIPROCITY LIST . The procedures for determining reciprocity and information about the Reciprocity List are outlined in Nebraska Revised Statute §71-4606.

008 RULE REVISION .

008.01 AD HOC COMMITTEE. The Commission will utilize an ad hoc committee to review any proposed revision to these rules. All ad hoc committee members will be selected by the Commission and meet in person, via video conference, by telephone conference call, or through any combination of the aforementioned methods as determined to be convenient to the Commission and the ad hoc committee members. The membership will consist of, when possible, no more than one person from each of the following groups: recreational vehicle manufacturers; recreational vehicle retailers; recreational vehicle park/campground owners or operators; professional engineer or architect or building officials. Committee members are ineligible for expense reimbursement.

History

• Effective 2021-04-25

Chapter 15 Enhanced Wireless 911 Services Rules and Regulations

Neb. Admin. Code tit. 291, ch. 15 Enhanced Wireless 911 Services Rules and Regulations {#sec-291-nac-15 omnilex-key=us-ne-regs-official--title-291--291 NAC 15}

001 GENERAL.

001.01 DEFINITIONS. As used in this chapter, unless the context otherwise requires, the following definitions apply:

001.01(A). Advisory Committee means the 911 Service System Advisory Committee.

001.01(B). Commission means the Nebraska Public Service Commission.

001.01(C). 911 service has the same meaning as Neb. Rev. Stat. § 86-1046.

001.01(D). Fund means the 911 Service System Fund.

001.01(E). Funding year means the year for which funding is awarded under Next Generation 911 (NG911) funding model from July 1 through June 30.

001.01(F). Governing body has the same meaning as Neb. Rev. Stat. § 86-1042.

001.01(G). Home service provider has the same meaning as Neb. Rev. Stat. § 86-1039.

001.01(H). Next Generation 911 has the same meaning as Neb. Rev. Stat. § 86-1044.

001.01(I). Prepaid wireless telecommunications service has the same meaning as Neb. Rev. Stat. § 86-902.

001.01(J). Primary place of use has the same meaning as Neb. Rev. Stat. § 86-1050.

001.01(K). Primary PSAP means Public Safety Answering Points receiving funding from the 911 Service System fund and are the primary 911 answering point for a county. The commission is not required to fund more than one primary PSAP per county.

001.01(L). Public safety agency has the same meaning as Neb. Rev. Stat. § 86-1051.

001.01(M). Public Safety Answering Point (PSAP) has the same meaning as Neb. Rev. Stat. § 86-1052.

001.01(N). Surcharge means the 911 Surcharge collected pursuant to 86-1060 and used for the purposes of the 911 Service System Act.

001.01(O). Secondary Communication Center means a communication center permitted to connect to the Nebraska Next Generation 911 system but does not have primary responsibility to answer 911 calls for any geographic area and meets all of the requirements of section 010.

001.01(P). Wireless carrier has the same meaning as Neb. Rev. Stat. § 86-1058.

001.01(Q). Wireless service has the same meaning as Neb. Rev. Stat. § 86-1059.

001.03 IMMUNITY. The Commission, governing bodies, and public safety agencies may provide 911 service. In contracting for and providing such service, except for failure to use reasonable care or for intentional acts, the Commission, each governing body, each public safety agency, each wireless carrier, and their employees and agents shall be immune from liability or the payment of damages in the performance of installing, maintaining, or providing 911 service.

001.04 CIVIL PENALTY. The Commission may assess a civil penalty pursuant to section 75156 for each violation of any provision of the 911 Services System Act or any rule, regulation, or order of the Commission issued under authority delegated to the Commission pursuant to the Act.

002 911 SURCHARGE.

002.01 WIRELESS CARRIERS.

002.01(A). Each wireless carrier shall collect a surcharge from all active telephone numbers or functional equivalents every month from users of wireless service and shall be collected and remitted in accordance with the Neb. Rev. Stat. § 86-1070, Commission order and section 003.

002.01(B) LIABILITY. The wireless carrier is not liable for any surcharge not paid by a customer.

002.01(C) BILLING STATEMENTS. The wireless carrier shall add the surcharge to each user’s billing statement. The surcharge shall appear as a separate line item charge on the user’s billing statement and shall be labeled as “Wireless 911 Surcharge” or a reasonable abbreviation of such phrase.

002.01(D) RESELLERS. If a wireless carrier resells its service through other entities, each reseller shall collect the surcharge from its customers and shall remit the surcharge in accordance with section 003.02.

002.01(E) EXEMPTION.

002.01(E)(i). The surcharges authorized by this section shall not apply to prepaid wireless telecommunications service as defined in section 001.01K.

002.01(E)(ii). This section does not apply to users who are receiving services through the Nebraska Lifeline program and who do not receive a regular monthly bill for wireless services.

002.02 SETTING SURCHARGE. The Commission shall hold a public hearing annually to determine the amount of revenue necessary to carry out the 911 Service System Act. After the hearing, the Commission shall set the surcharge subject to the limitations set forth in Neb. Rev. Stat. § 86-1070.

003 WIRELESS CARRIER REMITTANCE AND REPORTING.

003.01 SCOPE. Each wireless carrier shall comply with all Commission rules and regulations regarding 911 service. Wireless carriers failing to comply with this section may be administratively fined by the Commission pursuant to section Neb. Rev. Stat. § 75-156.

003.02 REMITTANCES. Each wireless carrier, except with respect to prepaid wireless telecommunications service, shall remit monthly to the Commission amounts collected pursuant to sections 002.01 and 002.02 together with any forms required by the Commission no later than sixty days (60) from the last day of the month. The Commission shall remit the funds to the State Treasurer for credit to the Fund.

003.03 QUARTERLY REPORTS. Each wireless carrier, except a wireless carrier whose users have no 911 service, shall report to the Commission on a quarterly basis for each county in a manner prescribed by the Commission.

003.03(A). Each wireless carrier shall provide the following information:

003.03(A)(i). The number of telephone numbers or functional equivalents served;

003.03(A)(ii). The number of telephone numbers or functional equivalents from which it has collected surcharge revenue; and

003.03(A)(iii). The number of wireless towers by county.

003.03(B). The Commission will make available forms to be used for the filing of quarterly reports.

003.03(C). Quarterly reports shall be filed by the 15th of the month following the close of the quarter. Any wireless carrier failing to timely file its quarterly report may be subject to administrative fines.

003.04 RECORDS. Wireless carriers shall maintain all records required by this section, records of the amounts collected pursuant to sections 002.01 and 002.02 and remittance records for a period of five (5) years after the date of remittance to the fund.

003.05 AUDITS. The Commission may require an audit of any wireless carrier’s books and records concerning the collection and remittance of any amounts collected pursuant to sections 002.01 and 002.02.

003.05(A). The costs of any audit required by the Commission shall, at the Commission’s discretion, be paid by the audited wireless carrier.

003.05(B). A wireless carrier shall not be required to pay for more than one remittance audit or more than one collection audit per year, unless the Commission orders subsequent audits for good cause.

004 911 SERVICE SYSTEM ADVISORY COMMITTEE.

004.01 PURPOSE. The 911 Service System Advisory Committee (Committee) is created to advise the Commission regarding the implementation, development, administration, coordination, evaluation, and maintenance of 911 service system.

004.02 MEMBERSHIP. The Committee shall be composed of the following individuals appointed by the Commission, including:

004.02(A). Two managers of Public Safety Answering Points, one of whom is employed by a county sheriff and one of whom is not employed by a county sheriff;

004.02(B). Two county officials or employees;

004.02(C). Two municipal officials or employees;

004.02(D). Two representatives from the telecommunications industry;

004.02(E). One representative of the Nebraska Association of County Officials (NACO);

004.02(F). One representative of the League of Nebraska Municipalities; and

004.02(G). Four representatives of public safety agencies within the state, including an emergency manager, a member of a law enforcement agency, a member of a fire department, and a member of an emergency medical service as defined in section 38-1207.

004.03 EX OFFICIO MEMBERS. The State 911 Director and the Chief Information Officer or their designees shall serve as ex officio members on the Committee.

004.04. Members of the Committee, except for the two ex officio members, shall be appointed for staggered three year terms. Each succeeding member of the Committee shall be appointed for a term of three years.

004.04(A). The following positions will expire on July 1, 2027, and every third year thereafter: both telecommunications representatives, the law enforcement public safety representative, and the representative for the League of Municipalities.

004.04(B). The following positions will expire on July 1, 2028, and every third year thereafter: the emergency management public safety representative, both county officials or employee representatives and both PSAP managers.

004.04(C). The following positions will expire on July 1, 2029, and every third year thereafter: fire department public safety representative, emergency medical service public safety representative, both municipal officials or employee representatives, and the NACO representative.

004.05 MEETINGS. The Committee shall meet as often as necessary to carry out its duties.

004.06 EXPENSES. Members of the Committee shall be reimbursed for their actual and necessary expenses as provided in Neb. Rev. Stat. §§ 81-1174 to 81-1177.

004.07 DUTIES. The Committee may make any recommendations to the commission regarding the exercise of the commission's duties administering the 911 service system pursuant to section Neb. Rev. Stat § 86-1060, including recommending the adoption and promulgation of any rules and regulations necessary to carry out the purposes of the 911 Service System Act or the introduction of any legislation.

004.08. The Commission may approve and implement any recommendations of the Committee.

005 911 SERVICE SYSTEM FUND.

005.01. The Fund shall consist of the surcharges credited to the Fund, any money appropriated by the Legislature, any federal funds received for emergency communication, and any other funds designated for credit to the Fund.

005.02 PERMITTED USES. Money in the Fund shall be used for the following purposes. The Commission, in consultation with the Committee, shall determine which costs are eligible for funding pursuant to the funding mechanism.

005.02(A). Costs of administering the 911 Service System.

005.02(B). Costs incurred, or to be incurred, by or on behalf of governing bodies or Public Safety Answering Points to provide 911 service that are determined by the commission to be eligible for funding. The commission is not required to provide funding from the 911 Service System Fund to more than one Public Safety Answering Point in any county. Each entity that receives disbursements from the fund under this subsection shall make a full accounting of the money in a manner and form prescribed by the commission.

005.02(B)(i). The portion of the costs for new equipment and services used for providing Next Generation 911 service;

005.02(B)(ii). Costs to lease another vendor’s equipment or services to provide Next Generation 911 service;

005.02(B)(iii). Costs to create or maintain any data base or data base elements used for Next Generation 911 service; and

005.02(B)(iv). Other costs of establishing Next Generation 911 service.

005.02(B)(v). Costs of upgrades, modification and personnel training used solely to process the data elements of Next Generation 911 service;

005.02(B)(vi). Maintenance costs and license fees for new equipment used for the provision of Next Generation 911 service; and

005.02(C). Costs incurred, or to be incurred, for the purchase, installation, maintenance, and operation of telecommunications equipment and telecommunications services required for the provision of Next Generation 911 service.

005.02(D). Expenses incurred by members of the Committee while performing duties required by the Act.

005.03 PROHIBITED USES. Money in the Fund shall not be used for the following purposes:

005.03(A). Costs incurred to purchase, install, or maintain street signs;

005.03(B). Any costs not directly in support of the implementation or provision of Next Generation 911 service.

006 PSAP FUNDING PROCESS.

006.01. PSAP funding is determined by the NG 911 funding model established by the Commission. The NG911 funding model may be modified by Commission order at the discretion of the Commission.

006.01(A) PREREQUISITES FOR PSAP FUNDING.

006.01(A)(ii). PSAPs must maintain funds received in a separate account or fund and provide all necessary account information to the Commission;

006.01(A)(iii). PSAPs must be connected to the Next Generation 911 System; Secondary Communication centers are not eligible for funding;

006.01(A)(iv). PSAPs must make arrangements for the maintenance of all equipment and software necessary for the provision of Next Generation 911 service;

006.01(A)(v). PSAPs must have made arrangement or retained trained personnel to ensure all GIS data necessary for the mapping of 911 calls is current and accurate;

006.01(A)(vi). PSAPs must provide all GIS data and updates to the statewide GIS repository;

006.01(A)(vii). PSAPs must certify and are responsible for complying with all applicable state and local bidding requirements for the purchase of goods or services related to the provision of 911 services;

006.01(A)(viii). PSAPs must adhere to, and certify compliance with the Training Requirements of section 009;

006.01(A)(ix). PSAPs must utilize the state’s approved data analytics provider and report requested data; and

006.01(A)(x). PSAPs must permit cybersecurity assessments and testing provided by the State 911 Department to ensure the integrity of the state’s 911 system.

006.01(B) ELIGIBLE PSAP COSTS. PSAPs may use 911 Service System funds to pay the following costs. The Commission may approve additional costs by Commission order consistent with the limitations set forth in section 005.02:

006.01(B)(i). The purchase and installation of equipment and software necessary for the provision of Next Generation 911 service;

006.01(B)(ii). Costs of upgrades to equipment and software necessary for the provision of Next Generation 911 service;

006.01(B)(iii). Maintenance costs for eligible equipment and software;

006.01(B)(iv). Costs related to GIS data necessary for the provision of Next Generation 911 service. Upon order of the Commission, a PSAP employing inhouse personnel to maintain GIS data may be permitted to utilize funds for these personnel costs;

006.01(B)(v). Training related to the provision of Next Generation 911 service;

006.01(B)(vi). Costs of translation services provided through service contracts necessary for the process of 911 calls;

006.01(B)(vii). Reasonable Personnel expenses for dispatchers who receive and process wireless enhanced 911 calls. Personnel expenses may include a dispatcher’s actual salary and fringe benefits. Fringe benefits include, but are not limited to, the costs of leave, employee insurance, pensions, and unemployment benefits. Fringe benefits also include employer contributions or expenses for social security; employee life, health, unemployment, and worker's compensation insurance; pension plan costs, provided such benefits are reasonable, required by law or permitted under established written policies.

Should a dispatcher have duties beyond the receipt and processing of 911 calls, the personnel costs of the dispatcher should be prorated based upon the time spent on other duties. 911 Service System funds may not be used for costs associated with general administrative support or any person not directly responsible for receiving and processing wireless 911 calls; and

006.01(B)(viii). Any other costs deemed eligible by Commission order.

006.01(C) INELIGIBLE PSAP COSTS. Funds may not be used for the following costs:

006.01(C)(i). Any costs not associated with the provision of 911 service;

006.01(C)(ii). The purchase, installation, or maintenance of street signs;

006.01(C)(iii). The purchase, installation, or maintenance of radio equipment outside the PSAP; and

006.01(C)(iv). Any other costs deemed ineligible by Commission order.

006.0(D). The Commission is not required to provide compensation for costs to more than one PSAP in any county.

007 PSAP FUNDING APPLICATION PROCESS.

007.01 PSAP APPLICATIONS FOR GENERAL FUNDING.

007.01(A) INITIAL APPLICATIONS FOR FUNDING. Initial applications for general funding shall be filed no later than March 31st prior to the beginning of the funding year for which funds are requested.

007.01(A)(i) CONTENTS OF THE APPLICATION. An application filed by a PSAP for general funding shall contain the following minimum information. The Commission or department may request additional information as needed:

007.01(A)(i)(a). Certification that the PSAP has met all of the prerequisites to funding outlined in section 006.01A including a description of the means by which the PSAP has satisfied each of the requirements;

007.01(A)(i)(b). Detailed contact information for the person who shall be responsible for communicating with the Commission regarding the application and funding issues. Contact information should include, name, title, mailing address, telephone number, fax number and email address;

007.01(A)(i)(c). For first time applicants, specifications of the PSAP’s current equipment and software, including the type and model or version, the number of call taker positions, software version and a statement as to whether the equipment is IP compatible and meets NENA standards. The PSAP should also include the date of installation and the date of the last upgrade or update. For renewal applications, provide any change in any of the information previously provided and the last date of software update;

007.01(A)(i)(d). Specifications regarding the PSAP’s mapping software, including the date of installation and the last upgrade;

007.01(A)(i)(e). A description of other funding sources available to the PSAP including local, state and federal funds;

007.01(A)(i)(f). A description of what specific costs for which the PSAP intends 911 Service System funds; and

007.01(A)(i)(g). For first time applicants, attach copies of all equipment, software, and GIS data maintenance contracts and any interlocal agreements regarding 911 service. For renewal applications, attach any new or renewed contracts or agreements.

007.01(B) ANNUAL UPDATES TO APPLICATIONS FOR FUNDING. Any PSAP receiving funding for the prior funding year shall submit an update to the information set forth in its previous application and, as required in section 007.01A, no later than March 31st prior to the beginning of the funding year for which funds are requested. The Commission or the department may request additional information.

007.01(C). All applications to utilize funding for equipment and software purchases and upgrades are subject to review by the Commission.

007.01(D). Any PSAP failing to timely file an initial application for funding or an update to an application for funding by the March 31st deadline may lose funding for the following funding year.

008 ANNUAL VERIFICATION REGARDING USE OF FUNDS.

008.01. PSAPs shall submit all invoices and other supporting documentation to the Commission to demonstrate that all funds for the previous funding year were used for eligible costs including an accounting by PSAPs of all funds set aside for future equipment and software purchases and upgrades.

008.01(A). Such verification shall be filed with the Commission no later than October 15th following the close of the funding year.

008.01(B). Failure to submit the required verification may result in a suspension of funding for the current funding year and/or a loss of funding for the following funding year.

008.03. If the Commission determines that any funds were not used in compliance with statute, regulation or Commission order, the PSAP must repay the funds to the Commission or the Commission may elect to adjust the following year’s allocation.

008.04. All PSAPs and wireless carriers receiving funding are subject to audit.

009 TRAINING STANDARDS.

009.01. All PSAPs and Secondary Communications centers must adhere to the training standards adopted by the Commission and attached hereto as “Attachment A” and incorporated by reference.

010 REQUIREMENTS FOR SECONDARY COMMUNICATIONS CENTERS

010.01 REQUIREMENTS.

010.01(A). In order for a secondary communication center to connect to Nebraska’s Next Generation 911 System the secondary communication center must comply with the following requirements:

010.01(A)(i). Complete an initial application and submit it to the State 911 Department. Initial applications will include;

010.01(A)(ii). Obtaining sponsorship from a PSAP who will has agreed to transfer calls to the secondary communications center and join that PSAPs region.

010.01(A)(iii). Signature and certification of compliance with applicable Public Service Commission regulations and the training standards found in section 009; and

010.01(A)(iv). Each application must receive a majority vote by the Committee recommending a PSAP be allowed to connect to the state 911 system,

010.01(B). The Secondary Communications center must have call handling equipment approved by their respective region.

010.01(C). Purchase the necessary licensing for the state data analytics software vendor.

010.01(D). Each secondary communication center must report annually on March 15th verification of continued compliance with all applicable state law, regulations and Commission orders. Such annual certification must also include certification from the sponsoring PSAP that interoperability between the secondary communication center and the PSAP has been tested as needed and determined by the sponsoring PSAP and is working appropriately and that the secondary communication’s center’s call handling equipment meets regional requirements.

010.01(E). Approval by the Commission.

010.02. Secondary Communication Centers are ineligible to receive 911 Service System Funds.

History

• Effective 2026-03-29

Chapter 16 Reverse Auction and Wireless Registry Rules and Regulations

Neb. Admin. Code tit. 291, ch. 16 Reverse Auction and Wireless Registry Rules and Regulations {#sec-291-nac-16 omnilex-key=us-ne-regs-official--title-291--291 NAC 16}

001. SCOPE, DEFINITIONS, AND STATE CODE .

001.01 SCOPE AND APPLICATION. The scope and applicability of these rules and regulations is described in Neb. Rev. Stat. §§ 75-160 and 86-330.

001.02 DEFINITIONS. The terms and definitions in Neb. Rev. Stat. §§ 86-319 through 86-322 and in Neb. Admin. Code Title 291, Chapter 10, are hereby incorporated into this chapter. Such terms not specifically identified in statute or existing rules are defined below.

001.02(A). “Reverse Auction” as used in § 86-330 means an auction process to determine redistribution of support from the fund.

001.02(B). “Support” means payments from the fund allocated by the Commission to an eligible telecommunications carrier (ETC) for such ETC’s eligible expenses associated with broadband Internet infrastructure deployment in an Unserved Area or an Underserved Area within the State of Nebraska.

001.02(C). “Unserved Area” or “Underserved Area” means any location in the State of Nebraska that does not have access, or adequate access, to broadband Internet service as defined by the Commission.

001.02(D). “Rural Based Plan” means a proposal for redirecting funding as described Nebraska Revised Statutes Section 86-330 which is made by rural residential and business users of telecommunications and broadband services in high-cost areas of an exchange.

001.03 WITHHOLDING OF NEBRASKA UNIVERSAL SERVICE FUND SUPPORT.

001.03(A). Consistent with Neb. Rev. Stat. § 86-330, after notice and hearing, the Commission may withhold Support from an eligible telecommunications carrier (ETC):

001.03(A)(i). On the basis of consumer complaints or on the Commission’s own motion, after making a finding that:

001.03(A)(i)(a). The availability, quality, or affordability of broadband or telecommunications service provided by the ETC is lacking; or

001.03(A)(i)(b). The ETC has failed to follow the criteria for successful investment of support from the fund;

001.03(A)(ii). Where an ETC has failed to comply with the requirements established by the Commission in orders pursuant to Neb. Rev. Stat. § 86-324; or

001.03(A)(iii). Where Commission-approved projects were not completed according to the Commission’s requirements.

001.03(B). If support is withheld pursuant to § 001.03(A), the Commission shall publicly announce the amount of support withheld and available for use in a reverse auction or a rural based plan. Such notice shall include a description of the geographical area in which the available funding may be used.

001.04 REVERSE AUCTIONS.

001.04(A). If pursuant to Neb. Rev. Stat. § 86-330 and the rules set forth in this Chapter, the Commission withdraws Support provided to an ETC, the Commission may use such withdrawn Support to implement and operate a Reverse Auction program, provided that such withdrawn Support is required to be utilized in the same area for which the Support was originally granted.

001.04(A)(i). If a rural based plan has been submitted to the Commission pursuant to § 001.06(B), no Reverse Auction program shall be initiated until the Commission has made a determination approving or denying the rural based plan.

001.04(A)(ii). No Reverse Auction program shall be initiated until at least ninety (90) days have passed since the announcement of available funding pursuant to § 001.03(B).

001.04(B). Areas eligible for the Reverse Auction program will be determined by the Commission and will be:

001.04(B)(i). Released to the public by the Commission in a notice published in accordance with the Commission’s Rules of Procedure which includes the specific timeframe for Reverse Auction application submittals and any other information relevant to the Reverse Auction process.

001.04(C). An applicant participating in a Reverse Auction must include the following information in any application for Support filed with the Commission:

001.04(C)(i). A description of the applicant's business structure and ownership information;

001.04(C)(ii). Evidence that the applicant is financially and technically qualified to meet the public interest obligations for each relevant area for which it seeks Support;

001.04(C)(iii). Evidence to confirm applicant’s status as an ETC or that, should it be the successful bidder for the Reverse Auction, will seek such ETC status within thirty (30) days after the close of the Reverse Auction;

001.04(C)(iv). Confirmation that the applicant plans to provide access to broadband Internet service at speeds defined by the Commission in the area or areas subject to the Reverse Auction;

001.04(C)(v). A description of the technology or technologies that will be used to provide service in the area or areas subject to Reverse Auction;

001.04(C)(vi). Any information required to establish eligibility for any bidding weights adopted by the Commission and described in an order or public notice;

001.04(C)(vii). To the extent that an applicant plans to use licensed or unlicensed spectrum to offer its voice and broadband services in the area or areas subject to Reverse Auction, a demonstration that it has the proper authorizations to use such spectrum, that use of such spectrum will not cause any interference with existing users, and that the spectrum resources will be sufficient to cover peak network usage and deliver the minimum performance requirements to serve the Fund-eligible area or areas defined in the Reverse Auction, and certify that it will retain its access to and the use of the spectrum for at least 10 years from the date of the Support authorization;

001.04(C)(viii). A description of how the required construction will be funded, including financial projections to demonstrate, if applicable, that the applicant can cover the necessary debt service payments over the life of any loan obtained to fund construction;

001.04(C)(ix). Specified operational and financial information including:

001.04(C)(ix)(1). A certification that the applicant has provided· a voice and/or broadband Internet service for at least two years or that it is affiliated with such an entity, and specifying the number of years the applicant or its affiliate has been operating, and submission of the financial statements from the prior fiscal year that are audited by a certified public accountant. If the applicant’s financial statements are not audited in the ordinary course of business, in lieu of submitting audited financial statements, the applicant must certify that it will provide financial statements from the prior fiscal year that are audited by a certified independent public accountant by a specified deadline during the review process.

001.04(C)(ix)(1)(a). If the applicant or an affiliate has provided a voice and/or broadband Internet service it must certify that it or its affiliate has filed FCC Form 477s as required during the relevant time period that such voice or broadband Internet service has been provided.

001.04(C)(ix)(1)(b). If the applicant has operated in other states, applicant is required to submit evidence that the applicant is in good standing in those states.

001.04(C)(x). If an applicant cannot meet the requirements in section 001.04(C)(ix)(1) above, in the alternative it must submit the audited financial statements from the three most recent fiscal years; and such additional information as the Commission may require.

001.04(D) APPLICATION PROCESSING.

001.04(D)(i). No application will be considered unless it has been submitted in an acceptable form during the period specified by public notice. No applications submitted or demonstrations made at any other time will be accepted or considered.

001.04(D)(ii). Any application that, as of the submission deadline, either does not identify the applicant seeking Support as specified in the public notice announcing application procedures or does not include required certifications will be denied.

001.04(D)(iii). An applicant may be afforded an opportunity to make minor modifications to amend its application or correct defects noted by the applicant, the Commission, or other parties. Minor modifications include correcting typographical errors in the application and supplying non-material information that was inadvertently omitted or was not available at the time the application was submitted.

001.04(D)(iv). Applications to which major modifications are made after the deadline for submitting applications will be denied. Major modifications include, but are not limited to, any changes in the ownership of the applicant that constitute an assignment or change of control, or the identity of the applicant, or the certifications required in the application.

001.04(D)(v). After receipt of all necessary information, a public notice will identify each winning bidder that is authorized to receive auction support.

001.04(D)(vi). Once all applications for a Reverse Auction have been accepted by the Commission as meeting the criteria established in this Chapter 16, the Commission will issue an order announcing the timing and conduct of the Reverse Auction.

001.04(E) FULL AND TIMELY PERFORMANCE. Authorization to receive auction Support is conditional upon full and timely performance of all of the requirements set forth in this section, and any additional terms and conditions upon which the Support was granted.

001.04(E)(i). Failure by a recipient of Support from a Reverse Auction to meet its service milestones will trigger reporting obligations and the withholding of Support. Failure to come into full compliance within 12 months will trigger a recovery action. If the recipient does not repay the requisite amount of Support within six months thereafter, the Commission will be entitled to seek recovery through any means available and may disqualify the recipient from the receipt of any, all or additional Support.

001.04(E)(ii). The default will be evidenced by a letter issued by the Executive Director of the Commission or his designee.

001.05 WIRELESS REGISTRY

001.05(A). The Commission will maintain a wireless registry to be used for the purpose specified in Neb. Rev. Stat. § 75-160.

001.05(B). The Commission will make available on its website or through paper filing a repository for any person or company to file information indicating a lack of appropriate coverage as defined in Neb. Rev. Stat. § 75-160. The form will include the following information:

001.05(B)(i). The name of the person filing the informal complaint

001.05(B)(ii). The name of the wireless carrier, if applicable;

001.05(B)(iii). The address or locations where service was at issue;

001.05(B)(iv). A description of the services purchased, and equipment used by the complainant; and

001.05(B)(v). The relevant date or dates for which wireless service coverage was lacking.

001.05(B)(vi). The wireless provider may challenge this information by providing evidence of adequate coverage in the relevant location(s).

001.05B(vii). The Commission may further investigate to determine the existence of or the lack of adequate coverage. In doing so, the Commission may utilize other publicly available data and crowd-sourced data to determine the reliability of the information provided for purposes of the registry.

001.06 RURAL BASED PLANS.

001.06(A). The Commission may redirect funding through a rural based plan pursuant to Neb. Rev. Stat. § 86-330.

001.06(B). A rural based plan may be presented to the Commission by application within ninety (90) days following the Commission’s announcement of funding available for redirection.

001.06(B)(i). No application for a rural based plan may be accepted after ninety (90) days following such announcement, unless an order extending this timeframe is entered by the Commission.

001.06(B)(ii). No application for a rural based plan may be accepted if a Reverse Auction program is in process.

001.06(C). An application for a rural based plan must be submitted as a partnership with an eligible telecommunications company.

001.06(C). An application for a rural based plan will be scored according to the following criteria:

001.06(C)(i). The history of the participating eligible telecommunications company in providing quality and affordable telecommunications and broadband services in rural areas;

001.06(C)(ii). The capability of the eligible telecommunications company to use the proposed technology to provide broadband services to every location in the exchange area on a reasonably comparable basis;

001.06(C)(iii). The support of local businesses, hospitals, schools, colleges, agricultural producers, and residents;

001.06(C)(iv). Other sources of funding;

001.06(C)(v). Partnerships and other cooperative arrangements with local public power providers;

001.06(C)(vi). Partnerships and other cooperative arrangements with local wireless Internet service providers; and

001.06(C)(vii). Cooperation by the incumbent local exchange carrier from which funding has been withheld.

001.06(D). If a rural based plan is approved, the Commission shall enter an order stating the amount of funding approved, the geographic area in which funding shall be used, and establishing a timeline for deployment that includes periodic milestones for ensuring timely deployment.

001.06(E). An eligible telecommunications company which is awarded funding through a rural based plan must file reports and documentation as required by the Commission in order to assess compliance with deployment milestones.

History

• Effective 2023-11-12