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.  [237.41] [LOCAL RATES.] 
  1.17     The rates, prices, tariffs, or charges for local services 
  1.18  provided to end-user customers by an independent telephone 
  1.19  company or by a telecommunications carrier offering local 
  1.20  service are subject to only the provisions of sections 237.07, 
  1.21  subdivision 1; 237.66; and 237.663, and are not subject to any 
  1.22  rules imposing rate or price restrictions or obligations beyond 
  1.23  those provisions or to other order or investigation of local 
  1.24  rates under section 237.081. 
  1.25     Sec. 3.  [237.414] [EXPANDED LOCAL CALLING AREAS; TRANSPORT 
  1.26  FACILITIES; LOCAL TERMINATIONS.] 
  2.1      Subdivision 1.  [EXPANDED LOCAL CALLING AREAS.] An 
  2.2   independent telephone company may expand the area to which its 
  2.3   customers can make local calls by written notice to the 
  2.4   commission.  Calling to these expanded areas must be local 
  2.5   calling and be optional to customers.  The independent telephone 
  2.6   company may determine the quantity of expanded local calling to 
  2.7   provide, the prices for such calling, and whether to offer 
  2.8   calling alone or in combination with one or more other telephone 
  2.9   or unregulated services.  The independent telephone company is 
  2.10  not required to offer unlimited flat-rate calling to these 
  2.11  expanded local calling areas. 
  2.12     Subd. 2.  [OBTAINING TRANSPORT FACILITIES.] An independent 
  2.13  telephone company may construct, purchase, lease, or rent 
  2.14  transport facilities to provide the expanded local calling.  An 
  2.15  independent telephone company may petition the commission to 
  2.16  resolve issues regarding prices, terms, and conditions for use 
  2.17  of any transport facilities that are subject to the jurisdiction 
  2.18  of the commission if the independent telephone company is unable 
  2.19  to reach agreement with other telephone companies or 
  2.20  telecommunications carriers. 
  2.21     Subd. 3.  [RESOLVING MULTIPLE LOCAL SERVICE PROVIDER 
  2.22  ISSUES.] (a) An independent telephone company providing an 
  2.23  expanded local calling area under this section may enter into an 
  2.24  agreement to terminate expanded local calling with telephone 
  2.25  companies and telecommunications carriers providing local 
  2.26  service within the expanded local calling area.  Unless 
  2.27  otherwise mutually agreed, the rates paid by the independent 
  2.28  telephone company to terminate expanded local calling into such 
  2.29  areas must be the rates for termination of local traffic under 
  2.30  any commission-approved interconnection agreement between the 
  2.31  telephone company or telecommunications carrier serving the 
  2.32  expanded area and a wireless carrier or other telecommunications 
  2.33  carrier providing local service in that area.  
  2.34     (b) If two telephone companies provide expanded local 
  2.35  calling between their respective areas, the telephone companies 
  2.36  may also enter into "bill and keep" arrangements for exchange of 
  3.1   the local traffic.  
  3.2      (c) If there is no commission-approved agreement to 
  3.3   terminate traffic, the rates for termination of local traffic 
  3.4   must be the intrastate access charges of the telephone company 
  3.5   or telecommunications carrier providing local service in the 
  3.6   expanded area or other rates as the companies may mutually agree.
  3.7      Subd. 4.  [AMENDING OR TERMINATING EXPANDED LOCAL SERVICE.] 
  3.8   An independent telephone company may amend or terminate the 
  3.9   expanded local calling service upon written notice to 
  3.10  customers.  Additional optional services and service 
  3.11  combinations may be offered at any time. 
  3.12     Sec. 4.  [237.418] [DEPOSITS; CUSTOMER CREDIT.] 
  3.13     An independent telephone company may use generally 
  3.14  available credit-rating reports and information to determine 
  3.15  whether to require a deposit or other form of assurance of 
  3.16  payment and the amount of any deposit or other assurance of 
  3.17  payment. 
  3.18     An independent telephone company may require a deposit or 
  3.19  other assurance of payment subject only to compliance with all 
  3.20  legal requirements and obligations applicable to other providers 
  3.21  of comparable retail services. 
  3.22     Sec. 5.  [237.425] [EXEMPTION FROM RULES.] 
  3.23     An independent telephone company is not subject to any of 
  3.24  the following rules:  Minnesota Rules, parts 7810.0400; 
  3.25  7810.0700; 7810.0800; 7810.0900; 7810.1200; 7810.1300; 
  3.26  7810.1500; 7810.1600; 7810.1700; 7810.1900; 7810.2000; 
  3.27  7810.2100; 7810.2200; 7810.2300; 7810.2400; 7810.2500; 
  3.28  7810.2600; 7810.2700; 7810.2800; 7810.3000; 7810.3100; 
  3.29  7810.3200; 7810.3300; 7810.3400; 7810.3500; 7810.3600; 
  3.30  7810.3700; 7810.3800; 7810.3900; 7810.4000; 7810.4200; 
  3.31  7810.4300; 7810.4400; 7810.4500; 7810.4600; 7810.4700; 
  3.32  7810.4800; 7810.5100; 7810.5500; 7810.5600; 7810.5700; 
  3.33  7810.6100; 7810.6200; 7810.6300; 7810.6400; 7810.6500; 
  3.34  7810.6600; 7810.6700; 7810.6800; 7810.8100; 7810.8200; 
  3.35  7810.8300; 7810.8400; 7810.8500; 7810.8600; 7810.8605; 
  3.36  7810.8610; 7810.8615; 7810.8620; 7810.8625; 7810.8630; 
  4.1   7810.8635; 7810.8640; 7810.8645; 7810.8650; 7810.8655; 
  4.2   7810.8660; 7810.8665; 7810.8670; 7810.8675; 7810.8680; 
  4.3   7810.8685; 7810.8690; 7810.8700; 7810.8705; 7810.8710; 
  4.4   7810.8715; 7810.8720; 7810.8725; 7810.8730; 7810.8735; 
  4.5   7810.8740; 7810.8745; 7810.8750; 7810.8755; 7810.8760; 
  4.6   7810.8800; 7810.8805; 7810.8810; 7810.8815; 7810.8900; 
  4.7   7810.8905; 7810.8910; 7810.8915; 7810.8920; 7810.8925; 
  4.8   7810.8930; 7810.8935; 7810.8940; 7813.0100; 7813.0200; 
  4.9   7813.0300; 7813.0400; 7813.0500; 7813.0600; 7813.0700; 
  4.10  7813.0800; 7813.0900; 7813.1000; 7813.1100; 7817.0100; 
  4.11  7817.0200; 7817.0300; 7817.0400; 7817.0500; 7817.0600; 
  4.12  7817.0700; 7817.0800; 7817.0900; 7817.1000; 7829.0100; 
  4.13  7829.0200; 7829.0300; 7829.0400; 7829.0500; 7829.0600; 
  4.14  7829.0700; 7829.0800; 7829.0900; 7829.1000; 7829.1100; 
  4.15  7829.1200; 7829.1300; 7829.1400; 7829.1500; 7829.1600; 
  4.16  7829.1700; 7829.1800; 7829.1900; 7829.2000; 7829.2100; 
  4.17  7829.2200; 7829.2300; 7829.2400; 7829.2500; 7829.2600; 
  4.18  7829.2700; 7829.2800; 7829.2900; 7829.3000; 7829.3100; 
  4.19  7829.3200; 7831.0100; 7831.0200; 7831.0300; 7831.0400; 
  4.20  7831.0500; 7831.0600; 7831.0700; and 7831.0800. 
  4.21     Sec. 6.  [237.43] [ANNUAL UNIVERSAL SERVICE FUNDING 
  4.22  CERTIFICATION.] 
  4.23     In determining whether to provide the annual certification 
  4.24  of any eligible telecommunications carrier for continued receipt 
  4.25  of federal universal service funding, the commission shall apply 
  4.26  only criteria adopted by the Federal Communications Commission.