1.1                          A bill for an act 
  1.2             relating to telecommunications; expanding the 
  1.3             geographic boundaries for local calling within the 
  1.4             state; implementing a new policy for intercompany 
  1.5             compensation for the exchange of certain traffic; 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 237.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [237.85] [EXPANSION OF LOCAL CALLING AREAS.] 
  1.10     Subdivision 1.  [COMMISSION IMPLEMENTATION.] The commission 
  1.11  shall implement a plan for the expansion of local calling areas 
  1.12  within the state in accordance with this section.  
  1.13     Subd. 2.  [MODIFICATION OF CALLING AREAS.] Effective 
  1.14  January 1, 2005, all telephone companies providing local 
  1.15  exchange service and extended area service within the state must 
  1.16  modify their local calling areas and extended areas of service 
  1.17  to conform to, and be identical with, the boundaries of the 
  1.18  LATAs within the state.  Minnesota subscribers located within 
  1.19  the boundaries of a LATA that extends beyond the state's 
  1.20  boundaries must be included in the new local calling area 
  1.21  associated with the adjacent Minnesota LATA.  Immediately after 
  1.22  the modification of local calling areas required by this 
  1.23  subdivision, the exchange of traffic between carriers and the 
  1.24  amounts charged for handling that exchanged traffic must be in 
  1.25  accordance with the reciprocal compensation methodology adopted 
  1.26  and established by the commission in its Docket No. 
  2.1   P-421/CI-03-384.  
  2.2      Subd. 3.  [STATEWIDE LOCAL CALLING.] Effective January 1, 
  2.3   2006, telephone companies providing local exchange service and 
  2.4   extended area service within the state must modify their local 
  2.5   calling areas to provide statewide local calling.  Immediately 
  2.6   after the modification of local calling areas required by this 
  2.7   subdivision, the exchange of traffic between carriers and the 
  2.8   amounts charged for handling that exchanged traffic must both be 
  2.9   based on the ownership, whether leased, purchased, or owned 
  2.10  outright, of the facilities carrying that traffic and must be in 
  2.11  accordance with the reciprocal compensation methodology adopted 
  2.12  and established by the commission in its Docket No. 
  2.13  P-421/CI-03-384.  
  2.14     Subd. 4.  [COST RECOVERY MECHANISM.] To the extent that an 
  2.15  incumbent local exchange carrier seeks to recover switched 
  2.16  access revenue lost as a direct result of the expansion of local 
  2.17  calling areas under this section, it may recover that shortfall 
  2.18  in a per minute amount by implementing a separate monthly 
  2.19  tariffed retail charge to be assessed upon all its local service 
  2.20  customers that make toll calls.  The charge must not recover an 
  2.21  amount in excess of the actual demonstrable revenue shortfall 
  2.22  attributable to the expansion of local calling areas required 
  2.23  under this section.  
  2.24     Subd. 5.  [COMPLAINT PROCESS.] A separate monthly tariffed 
  2.25  retail charge assessed in accordance with subdivision 4 is 
  2.26  subject to the commission's complaint process under section 
  2.27  237.081.  Upon the filing of a formal complaint by an interested 
  2.28  party, the incumbent local exchange carrier has the burden of 
  2.29  proving that the separate monthly tariffed retail charge at 
  2.30  issue is being collected lawfully and in accordance with this 
  2.31  section.