1.1                          A bill for an act 
  1.2             relating to telecommunications; requiring competitors 
  1.3             of small telephone companies to offer service to 
  1.4             contiguous exchange areas in certain situations; 
  1.5             amending Minnesota Statutes 1996, section 237.16, by 
  1.6             adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 237.16, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 14.  [SERVICE AREA OBLIGATIONS.] In any proceeding to 
  1.11  obtain a certificate to provide local exchange telephone service 
  1.12  in any exchange area served by a telephone company with fewer 
  1.13  than 50,000 subscribers in Minnesota, the commission shall 
  1.14  require the applicant to offer service throughout that exchange 
  1.15  area and all contiguous exchange areas of the telephone company 
  1.16  within 12 months of the date that the applicant provides service 
  1.17  to any customer in that area.  This subdivision does not apply 
  1.18  to an applicant if resold services or facilities are not 
  1.19  available from the telephone company and cannot be made 
  1.20  available at reasonable costs.  This subdivision expires the day 
  1.21  following issuance of a final order of the public utilities 
  1.22  commission specifically referencing this subdivision that finds 
  1.23  that a universal service fund mechanism is in place with 
  1.24  adequate provisions and funding to protect rural telephone 
  1.25  customers against adverse rate impacts that may result from 
  1.26  selective competition.