SF 3368

as introduced - 86th Legislature (2009 - 2010) Posted on 04/16/2010 11:47am

A bill for an act
relating to telecommunications; modifying switched access services regulation;
amending Minnesota Statutes 2008, sections 237.12, by adding a subdivision;
237.16, subdivision 9; repealing Minnesota Statutes 2008, section 237.12,
subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 237.12, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Switched access services. new text end

new text begin (a) For the purposes of this subdivision, "access
restructure support" means revenues approved by the commission for collection by a local
exchange carrier that are equal to the amount by which the loss of revenue resulting from
the lower rate for intrastate switched access service required under paragraph (b) reduces
the local exchange carrier's total revenues below its cost to deliver basic local service.
new text end

new text begin (b) The commission shall not review or set rates for switched access service except
as provided by this subdivision. Within 30 days of the effective date of this subdivision
each local exchange carrier must reduce and thereafter maintain its intrastate switched
access rate elements at a level no higher than the then-current interstate switched access
rate for corresponding elements.
new text end

new text begin (c) A local exchange carrier may petition the commission to receive access
restructure support. The petition must contain information demonstrating that the
reduction in intrastate switched access revenues required under paragraph (b) prevents the
local exchange carrier from recovering its cost of providing basic local service without
additional financial support. The commission may accept, reject, or modify the amount of
access restructure support requested in the petition.
new text end

new text begin (d) The commission may provide access restructure support to a local exchange
carrier by:
new text end

new text begin (1) approving a rebalancing of the carrier's local exchange residential and local
exchange business rates;
new text end

new text begin (2) making payments to a local exchange carrier from the universal service fund
established under section 237.16, subdivision 9; or
new text end

new text begin (3) any combination of the mechanisms in clauses (1) and (2).
new text end

new text begin (e) The commission may at any time reexamine, upon its own initiative or upon
request by a local exchange carrier, a previous order to provide or deny access restructure
support.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2008, section 237.16, subdivision 9, is amended to read:

Subd. 9.

Universal service fund.

new text begin (a) new text end The commission shall establish and require
contributions to a universal service fund, to be supported by all providers of telephone
services, whether or not they are telephone companies under section 237.01, including, but
not limited to, local telephone companies, independent telephone companies, cooperative
telephone companies, municipal telephone companies, telecommunications carriers,
radio common carriers, personal communication service providers, and cellular carriers.
Services that should be considered for inclusion as universal include, at a minimum,
single-party service including access, usage and touch-tone capability; line quality capable
of carrying facsimile and data transmissions; equal access; emergency services number
capability; statewide telecommunications relay service for the hearing-impaired; and
blocking of long-distance toll services. The fund must be administered and distributed
in accordance with rules adopted by the commission and designed to preserve the
availability of universal service throughout the state. Any state universal service fund
must be coordinated with any federal universal service fund and be consistent with section
254(b)(1) to (5) of the federal Telecommunications Act of 1996, Public Law 104-104. The
department shall make recommendations to the legislature by January 1, 1996, regarding a
plan for contributions to and expenditures from the universal service fund. In particular,
the department shall address the following issues:

(1) what additional services should be included in the basic set of essential telephone
services which the state should encourage in its mandate to ensure universal service;

(2) whether and how expenditures from the fund should be used to ensure citizens
access to local government and other public access programming; and

(3) whether expenditures from the fund should be used to encourage construction
of infrastructure for, and access to, advanced services, especially in high-cost areas of
the state, and, if the commission determines the fund should be used for this purpose, a
plan to accomplish these goals.

new text begin (b) Revenues from the fund may be used to pay access restructure support approved
by the commission under section 237.12, subdivision 3a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 237.12, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end