1.1                          A bill for an act 
  1.2             relating to telecommunications; deregulating 
  1.3             independent telephone companies; amending Minnesota 
  1.4             Statutes 2002, section 237.01, subdivision 3; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 237. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 237.01, 
  1.9   subdivision 3, is amended to read: 
  1.10     Subd. 3.  [INDEPENDENT TELEPHONE COMPANY.] "Independent 
  1.11  telephone company" means a telephone company organized and 
  1.12  operating under chapter 301 or 302A or authorized to do business 
  1.13  in Minnesota under chapter 303 as of January 1, 1983, and 
  1.14  providing local exchange service to fewer than 30,000 50,000 
  1.15  subscribers within the state. 
  1.16     Sec. 2.  [237.414] [EXPANDED CALLING AREAS; TRANSPORT 
  1.17  FACILITIES; TERMINATIONS.] 
  1.18     Subdivision 1.  [EXPANDED CALLING AREAS.] An independent 
  1.19  telephone company may expand the area to which it can provide 
  1.20  calling to its customers upon filing with the commission any 
  1.21  agreements between the independent telephone company and other 
  1.22  telephone companies and telecommunications carriers entered into 
  1.23  under subdivision 3.  Calling to these expanded areas must be 
  1.24  optional to customers.  The independent telephone company may 
  1.25  determine the quantity of expanded calling to provide, the 
  1.26  prices for such calling, and whether to offer calling alone or 
  2.1   in combination with one or more other telephone or unregulated 
  2.2   services.  Customers must be notified of local service options, 
  2.3   including options that do not include expanded calling, as 
  2.4   required under section 237.66.  The independent telephone 
  2.5   company is not required to offer unlimited flat-rate calling to 
  2.6   these expanded calling areas.  The independent telephone company 
  2.7   shall file tariffs setting forth the expanded calling area along 
  2.8   with the applicable prices and quantities of calling.  This 
  2.9   section does not apply to extended area service or to calling 
  2.10  areas previously or hereafter established by order of the 
  2.11  commission.  This section does not limit the existing rights and 
  2.12  obligations of telephone companies and telecommunications 
  2.13  carriers to provide local calling or expanded calling.  
  2.14     Subd. 2.  [OBTAINING TRANSPORT FACILITIES.] An independent 
  2.15  telephone company may construct, purchase, lease, or rent 
  2.16  transport facilities to provide the expanded calling.  An 
  2.17  independent telephone company may petition the commission to 
  2.18  resolve issues regarding prices, terms, and conditions for use 
  2.19  of any transport facilities that are subject to the jurisdiction 
  2.20  of the commission if the independent telephone company is unable 
  2.21  to reach agreement with other telephone companies or 
  2.22  telecommunications carriers. 
  2.23     Subd. 3.  [RESOLVING MULTIPLE LOCAL SERVICE PROVIDER 
  2.24  ISSUES.] (a) An independent telephone company providing an 
  2.25  expanded calling area under this section may enter into an 
  2.26  agreement to terminate calls with telephone companies and 
  2.27  telecommunications carriers providing local service within the 
  2.28  expanded calling area.  The rates paid by the independent 
  2.29  telephone company to terminate expanded calling into such areas 
  2.30  must be the intrastate access charges of the telephone company 
  2.31  or telecommunications carrier providing local service in the 
  2.32  expanded calling area or such other rates as the companies may 
  2.33  mutually agree.  
  2.34     (b) If two telephone companies provide expanded calling 
  2.35  between their respective areas, the telephone companies may also 
  2.36  enter into "bill and keep" arrangements for exchange of the 
  3.1   expanded calling traffic.  
  3.2      (c) The independent telephone company shall file with the 
  3.3   commission any agreements for termination of calling by 
  3.4   telephone companies and telecommunications carriers providing 
  3.5   local service within the expanded calling area.  
  3.6      Subd. 4.  [AMENDING OR TERMINATING EXPANDED CALLING 
  3.7   SERVICE.] Except for calling areas that result from a prior or 
  3.8   subsequent order of the commission, an independent telephone 
  3.9   company may amend or terminate the expanded calling service upon 
  3.10  30 days' written notice to customers, the commission, and other 
  3.11  telephone companies and telecommunications carriers providing 
  3.12  local service in the expanded area.  
  3.13     Sec. 3.  [237.43] [ANNUAL UNIVERSAL SERVICE FUNDING 
  3.14  CERTIFICATION.] 
  3.15     In determining whether to provide the annual certification 
  3.16  of any eligible telecommunications carrier for continued receipt 
  3.17  of federal universal service funding, the commission shall apply 
  3.18  the same standards and criteria to all eligible 
  3.19  telecommunications carriers.