1.1                          A bill for an act 
  1.2             relating to telecommunications; authorizing creation 
  1.3             of telecommunication services purchasing cooperatives; 
  1.4             proposing coding for new law in Minnesota Statutes, 
  1.5             chapters 237; and 308A. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [237.066] [TELECOMMUNICATION SERVICES 
  1.8   PURCHASING COOPERATIVE.] 
  1.9      Subdivision 1.  [DEFINED.] For purposes of this section, a 
  1.10  "telecommunication services purchasing cooperative" means a 
  1.11  cooperative organized under section 308A.210 for the purposes of 
  1.12  aggregating demand and negotiating reduced rates for advanced 
  1.13  services on behalf of its members.  
  1.14     Subd. 2.  [REDUCED RATES.] A telephone company or 
  1.15  telecommunications carrier may provide members of a 
  1.16  telecommunication services purchasing cooperative within its 
  1.17  service area services at reduced wholesale rates negotiated 
  1.18  under section 237.071 by the telephone company or 
  1.19  telecommunications carrier and the telecommunication services 
  1.20  purchasing cooperative.  No member of a telecommunications 
  1.21  purchasing cooperative receiving telecommunication services at 
  1.22  reduced rates may resell or sublease the discounted services.  
  1.23  Any telecommunications services provided hereunder shall be 
  1.24  provided in accordance with Public Law Number 104-104 and with 
  1.25  regulations of the Federal Communications Commission promulgated 
  2.1   thereunder. 
  2.2      Subd. 3.  [SUBJECT TO OTHER CHARGES.] Members of a 
  2.3   telecommunication services purchasing cooperative receiving 
  2.4   telecommunication services at rates negotiated by the 
  2.5   telecommunication services purchasing cooperative shall be 
  2.6   subject to the same access charges, surcharges, taxes, and other 
  2.7   fees assessed upon customers of a telephone company. 
  2.8      Sec. 2.  [308A.210] [TELECOMMUNICATION SERVICES PURCHASING 
  2.9   COOPERATIVES.] 
  2.10     Subdivision 1.  [PURPOSE; TERRITORY.] A telecommunication 
  2.11  services purchasing cooperative may be formed under this chapter 
  2.12  for the sole purpose of aggregating demand and negotiating 
  2.13  reduced rates for advanced services for its members.  A 
  2.14  purchasing cooperative must declare in its articles of 
  2.15  incorporation a contiguous area comprising less than the entire 
  2.16  state in which it may operate. 
  2.17     Subd. 2.  [LOCAL GOVERNMENT UNITS.] In addition to others 
  2.18  that may form a cooperative, a political subdivision of the 
  2.19  state, including a service cooperative created under section 
  2.20  123.582, may act to organize a telecommunication services 
  2.21  purchasing cooperative within its jurisdiction for the benefit 
  2.22  of its residents. 
  2.23     Subd. 3.  [POWERS.] A purchasing cooperative has all of the 
  2.24  powers described in section 308A.201, except that a purchasing 
  2.25  cooperative does not have the power of eminent domain.  A 
  2.26  purchasing cooperative that aggregates demand and negotiates 
  2.27  reduced rates for its members is not a telephone or electric 
  2.28  cooperative as those terms are used in this chapter and chapters 
  2.29  216B and 237. 
  2.30     Subd. 4.  [GOVERNING BOARD.] A board of directors of five 
  2.31  to seven members shall govern a telecommunication services 
  2.32  purchasing cooperative.  The directors must be elected according 
  2.33  to the requirements of section 308A.311, except that: 
  2.34     (1) all of the directors must be members of the purchasing 
  2.35  cooperative; 
  2.36     (2) a director may not be a provider of services to the 
  3.1   cooperative or an employee of the provider; 
  3.2      (3) a director may not be a member of a governing body of a 
  3.3   political subdivision; and 
  3.4      (4) a majority of the directors must be seeking to purchase 
  3.5   some residential telecommunication services through the 
  3.6   cooperative. 
  3.7      Subd. 5.  [RESIDENTIAL MEMBERSHIP REQUIREMENT.] In order to 
  3.8   ensure that residential customers experience the benefits of 
  3.9   cooperative purchasing, at least 50 percent of the total number 
  3.10  of entities or individuals who are members of the purchasing 
  3.11  cooperative must be seeking to purchase residential 
  3.12  telecommunication services through the cooperative.  If the 
  3.13  telecommunication services purchasing cooperative fails to 
  3.14  comply with this subdivision, it shall notify the department of 
  3.15  public service and shall have one year from the date of 
  3.16  noncompliance to come into compliance.  If it does not come into 
  3.17  compliance, the telecommunication services purchasing 
  3.18  cooperative shall be dissolved and its assets distributed to its 
  3.19  members. 
  3.20     Subd. 6.  [FILINGS WITH DEPARTMENT OF PUBLIC SERVICE.] A 
  3.21  purchasing cooperative must immediately file a copy of its 
  3.22  contracts with telecommunication services providers with the 
  3.23  department of public service.  A purchasing cooperative must 
  3.24  file its annual financial statements with the department. 
  3.25     Subd. 7.  [OPEN MEMBERSHIP.] Any person within the 
  3.26  geographic operating area declared in a cooperative's articles 
  3.27  of incorporation or any person within the exchange boundary or 
  3.28  service area of a telephone company or telecommunication carrier 
  3.29  that in whole or in part is included in the geographic operating 
  3.30  area declared in the cooperative's articles of incorporation may 
  3.31  become a member of the telecommunication services purchasing 
  3.32  cooperative. 
  3.33     Subd. 8.  [ADVANCED TELECOMMUNICATION SERVICES; 
  3.34  DEFINED.] "Advanced telecommunications service" includes any 
  3.35  service that would be classified as a flexibly priced service 
  3.36  within the meaning of section 237.761, subdivision 4, or 
  4.1   nonprice regulated service within the meaning of section 
  4.2   237.761, subdivision 4, provided that a service may be an 
  4.3   advanced telephone service whether or not the telephone company 
  4.4   has adopted an alternative rate plan within the meaning of 
  4.5   section 237.76.