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.] (a) In addition 
  1.19  to any existing authority applicable to telephone companies, an 
  1.20  independent telephone company may expand the area to which it 
  1.21  can provide calling to its customers upon filing with the 
  1.22  commission any agreements between the independent telephone 
  1.23  company and other telephone companies and telecommunications 
  1.24  carriers entered into under subdivision 3.  Calling to these 
  1.25  expanded areas must be optional to customers and must be in 
  1.26  addition to the customers' existing local service and any 
  2.1   extended area service.  Subject to sections 237.06 and 237.09, 
  2.2   the independent telephone company may determine the quantity of 
  2.3   expanded calling to provide, the prices for that calling, and 
  2.4   whether to offer calling alone or in combination with one or 
  2.5   more other telephone or unregulated services. 
  2.6      (b) Prices for expanded calling service or for bundles of 
  2.7   services that include expanded calling must exceed the variable 
  2.8   cost of the expanded calling service or bundles of services, 
  2.9   determined on an aggregate basis.  An independent telephone 
  2.10  company is not required to file cost information before 
  2.11  implementing its prices and is not required to file cost 
  2.12  information except on request of the department, Office of the 
  2.13  Attorney General, or commission.  Customers must be notified of 
  2.14  local service options and prices, including options that do not 
  2.15  include expanded calling, as required under section 237.66.  The 
  2.16  independent telephone company shall clearly identify the 
  2.17  distinction between the expanded calling area and the basic 
  2.18  local calling area to customers.  The independent telephone 
  2.19  company is not required to offer unlimited flat-rate calling to 
  2.20  these expanded calling areas.  The independent telephone company 
  2.21  shall file tariffs setting forth the expanded calling area along 
  2.22  with the applicable prices and quantities of calling. 
  2.23     (c) A rate increase or a substantial change in terms and 
  2.24  conditions of the expanded calling service may be effective 30 
  2.25  days after filing with the commission and 30 days after 
  2.26  providing written notice to affected customers.  Rate decreases 
  2.27  may be effective immediately upon filing.  Minor changes to 
  2.28  terms and conditions may be effective immediately upon filing 
  2.29  and upon notice to the customers.  This section does not apply 
  2.30  to extended area service or to calling areas previously or 
  2.31  hereafter established by order of the commission.  This section 
  2.32  does not limit the existing rights and obligations of telephone 
  2.33  companies and telecommunications carriers to provide local 
  2.34  calling, including the obligation to offer unlimited flat rate 
  2.35  calling in the basic local calling area, or expanded calling. 
  2.36     Subd. 2.  [OBTAINING TRANSPORT, SWITCHING FACILITIES.] An 
  3.1   independent telephone company may construct, purchase, lease, or 
  3.2   rent transport and switching facilities between its existing 
  3.3   local area and the expanded calling area that are needed to 
  3.4   provide the expanded calling.  If the independent telephone 
  3.5   company is unable to reach agreement with other telephone 
  3.6   companies or telecommunications carriers, the company or carrier 
  3.7   may petition the commission under section 237.12 to resolve 
  3.8   issues regarding prices, terms, and conditions for use of any 
  3.9   transport facilities that are subject to the jurisdiction of the 
  3.10  commission. 
  3.11     Subd. 3.  [TERMINATION OF EXPANDED CALLING TRAFFIC.] (a) An 
  3.12  independent telephone company providing an expanded calling area 
  3.13  under this section may enter into an agreement to terminate 
  3.14  calls with telephone companies and telecommunications carriers 
  3.15  providing service within the expanded calling area.  
  3.16  Compensation to the telephone company or telecommunications 
  3.17  carrier to terminate expanded calling into such areas must be 
  3.18  the intrastate access charges of the telephone company or 
  3.19  telecommunications carrier terminating the call or other rates 
  3.20  agreed upon by the companies. 
  3.21     (b) Two telephone companies that provide expanded calling 
  3.22  between their respective areas may also enter into "bill and 
  3.23  keep" arrangements for exchange of the expanded calling traffic. 
  3.24     (c) The independent telephone company shall file with the 
  3.25  commission any agreements for termination of calling by 
  3.26  telephone companies and telecommunications carriers providing 
  3.27  service within the expanded calling area. 
  3.28     Subd. 4.  [AMENDING OR TERMINATING EXPANDED CALLING 
  3.29  SERVICE.] Except for calling areas that result from a prior or 
  3.30  subsequent order of the commission, an independent telephone 
  3.31  company may amend or terminate the expanded calling service upon 
  3.32  30 days' written notice to customers, the commission, and other 
  3.33  telephone companies and telecommunications carriers providing 
  3.34  local service in the expanded area.  The notice to customers of 
  3.35  an amendment to the expanded calling area or termination of an 
  3.36  expanded calling area must be sent separately from other 
  4.1   mailings and clearly explain how the expanded calling area is 
  4.2   being changed.  The notice to customers of an amendment must 
  4.3   also clearly identify that calls to areas outside of the 
  4.4   expanded calling area will be long distance calls billed at the 
  4.5   applicable rate of the customer's long distance carrier.  The 
  4.6   notice to customers of a termination must clearly identify that 
  4.7   calls to the terminated expanded calling area will become long 
  4.8   distance calls billed at the applicable rate of the customer's 
  4.9   long distance carrier. 
  4.10     Sec. 3.  [237.43] [ANNUAL UNIVERSAL SERVICE FUNDING 
  4.11  CERTIFICATION.] 
  4.12     In determining whether to provide the annual certification 
  4.13  of any eligible telecommunications carrier for continued receipt 
  4.14  of federal universal service funding, the commission shall apply 
  4.15  the same standards and criteria to all eligible 
  4.16  telecommunications carriers.