1.1                          A bill for an act 
  1.2             relating to state telecommunications infrastructure 
  1.3             development; providing for open competition for state 
  1.4             telecommunications services; prohibiting state 
  1.5             competition with the private sector; making other 
  1.6             conforming changes; amending Minnesota Statutes 1998, 
  1.7             sections 16B.415; 16B.46; and 16B.465; Laws 1995, 
  1.8             First Special Session chapter 3, article 12, section 
  1.9             10. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 16B.415, is 
  1.12  amended to read: 
  1.13     16B.415 [OPERATION OF INFORMATION SYSTEMS.] 
  1.14     The commissioner, through a division of technology 
  1.15  management, is responsible for ongoing operations of state 
  1.16  agency information technology activities.  These include records 
  1.17  management, activities relating to the Government Data Practices 
  1.18  Act, operation of administering the state information 
  1.19  infrastructure, and activities necessary to make state 
  1.20  information systems year 2000 compliant.  
  1.21     Sec. 2.  Minnesota Statutes 1998, section 16B.46, is 
  1.22  amended to read: 
  1.23     16B.46 [TELECOMMUNICATION; POWERS.] 
  1.24     The commissioner shall supervise and control the leasing of 
  1.25  all state telecommunication facilities services including any 
  1.26  transmission, emission, or reception of signs, signals, writing, 
  1.27  images, and sounds or intelligence of any nature by wire, radio, 
  2.1   optical, or other electromagnetic systems.  Nothing in this 
  2.2   section modifies, amends, or abridges any powers and duties 
  2.3   presently vested in or imposed upon the commissioner of 
  2.4   transportation or the commissioner of public safety relating to 
  2.5   telecommunications facilities or the commissioner of 
  2.6   transportation relating only to radio air navigation facilities 
  2.7   or other air navigation facilities.  
  2.8      Sec. 3.  Minnesota Statutes 1998, section 16B.465, is 
  2.9   amended to read: 
  2.10     16B.465 [STATE INFORMATION INFRASTRUCTURE.] 
  2.11     Subdivision 1.  [PURPOSE.] (a) The legislature finds that 
  2.12  the government provision of telecommunication services in 
  2.13  competition with the private sector is counterproductive and 
  2.14  contrary to state policy.  It is the policy of the state of 
  2.15  Minnesota not to purchase, own, or lease any equipment or 
  2.16  facilities that can be used in providing telecommunication 
  2.17  network services that can be provided by the private sector.  It 
  2.18  is the policy of the state of Minnesota to lease all 
  2.19  telecommunication services from the private sector to the extent 
  2.20  practicable.  The state of Minnesota and its departments and 
  2.21  agencies are urged to seek ways to encourage the growth of the 
  2.22  private sector in the area of telecommunications and not pursue 
  2.23  policies that restrict market opportunities for the private 
  2.24  sector.  The state may provide only those telecommunication 
  2.25  services that are not available through the private sector. 
  2.26     (b) This section does not preclude the state from 
  2.27  purchasing, owning, or leasing customer premises equipment.  
  2.28  Customer premises equipment consists of terminal and associated 
  2.29  equipment and inside wire located at an end user's premises and 
  2.30  connected with communication channels at the point established 
  2.31  in a building or a complex to separate customer equipment from 
  2.32  the network. 
  2.33     Subdivision 1 Subd. 1a.  [CREATION.] The state information 
  2.34  infrastructure provides shall arrange for the provision of 
  2.35  leased voice, data, video, and other telecommunications 
  2.36  transmission services to state agencies; educational 
  3.1   institutions, including public schools as defined in section 
  3.2   120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or 
  3.3   religious organization schools that provide instruction in 
  3.4   compliance with sections 120A.22, 120A.24, and 124A.41, and 
  3.5   private colleges; public corporations; and state political 
  3.6   subdivisions.  It is not a telephone company for purposes of 
  3.7   chapter 237.  The state shall not purchase, own, or lease any 
  3.8   telecommunication network facilities or equipment unless the 
  3.9   state has sought bids or proposals and has determined that the 
  3.10  private sector cannot provide the services that the state 
  3.11  intends to provide using the facilities or equipment.  It shall 
  3.12  not resell or sublease any services or facilities to nonpublic 
  3.13  entities except it may serve private schools and colleges.  The 
  3.14  commissioner has the responsibility for planning, development, 
  3.15  and operations of the state information infrastructure in order 
  3.16  to provide cost-effective leased telecommunications transmission 
  3.17  services to state information infrastructure users.  For 
  3.18  purposes of this section, "state information infrastructure" 
  3.19  means the network facilities and telecommunications services 
  3.20  provided through contracts administered by the commissioner. 
  3.21     Subd. 3.  [DUTIES.] (a) The commissioner, after 
  3.22  consultation with the office of technology, shall: 
  3.23     (1) provide negotiate, enter into, and administer contracts 
  3.24  for voice, data, video, and other leased telecommunications 
  3.25  transmission services to the state and to political subdivisions 
  3.26  through an account in the intertechnologies revolving fund; 
  3.27     (2) manage vendor relationships, network function, and 
  3.28  capacity planning in order to be responsive to the needs of the 
  3.29  state information infrastructure users; 
  3.30     (3) set rates and fees for services; 
  3.31     (4) approve contracts for leased services relating to the 
  3.32  system; 
  3.33     (5) in consultation with the office of technology, develop 
  3.34  the system a plan, including plans for the phasing of its 
  3.35  implementation and maintenance of the initial system out the 
  3.36  provision of telecommunications services and network operations, 
  4.1   except as provided in paragraph (b), and for the annual program 
  4.2   and fiscal plans for the leased system; and 
  4.3      (6) in consultation with the office of technology, and the 
  4.4   department of children, families, and learning in regard to 
  4.5   schools, assist state agencies, political subdivisions of the 
  4.6   state, and higher education institutions, including private 
  4.7   colleges and public and private schools, to identify their 
  4.8   telecommunication needs, and develop a plan plans for 
  4.9   interconnection of the provision of leased telecommunications 
  4.10  services and equipment to ensure the integration of these needs 
  4.11  into an interoperable statewide network with private colleges 
  4.12  and public and private schools in the state.  
  4.13     (b) The commissioner may purchase, own, or lease 
  4.14  telecommunication network facilities or equipment if the 
  4.15  commissioner has sought bids or proposals and has determined 
  4.16  that the private sector cannot provide services that the state 
  4.17  intends to provide using the facilities or equipment. 
  4.18     (c) The commissioner, in consultation with the office of 
  4.19  technology and the department of children, families, and 
  4.20  learning in regard to schools, when requested, may assist state 
  4.21  agencies, political subdivisions of the state, and higher 
  4.22  education institutions, including private colleges and public 
  4.23  and private schools, in identifying, purchasing, or leasing 
  4.24  their customer premises equipment. 
  4.25     (d) The commissioner shall, by June 30, 2000, develop and 
  4.26  implement a plan for phasing out ownership of telecommunications 
  4.27  network equipment currently owned by the state of Minnesota. 
  4.28     Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
  4.29  require the participation secure bids or proposals for services 
  4.30  from private sector vendors to serve the needs of state 
  4.31  agencies, the state board of education, and the board of 
  4.32  trustees of the Minnesota state colleges and universities, 
  4.33  and may request the participation of the board of regents of the 
  4.34  University of Minnesota, in the planning and implementation of 
  4.35  the network to provide interconnective technologies.  
  4.36  Alternatively, those entities may seek bids or proposals for 
  5.1   services directly from private sector vendors without the 
  5.2   participation of the commissioner.  
  5.3      Subd. 4a.  [RATES.] The commissioner shall establish 
  5.4   reimbursement rates in cooperation with the commissioner of 
  5.5   finance to be billed to participating agencies and educational 
  5.6   institutions sufficient to cover the operating, maintenance, and 
  5.7   administrative costs of the system leased services. 
  5.8      (b) A direct appropriation made to an educational 
  5.9   institution for usage costs associated with the state 
  5.10  information infrastructure must only be used by the educational 
  5.11  institution for payment of usage costs of the network as billed 
  5.12  by the commissioner of administration.  
  5.13     Subd. 6.  [APPROPRIATION.] Money appropriated for the state 
  5.14  information infrastructure and fees for leased 
  5.15  telecommunications services must be deposited in an account in 
  5.16  the intertechnologies fund.  Money in the account is 
  5.17  appropriated annually to the commissioner to operate 
  5.18  telecommunications services carry out the purposes of this 
  5.19  section. 
  5.20     Subd. 7.  [EXEMPTION.] The system is exempt from the 
  5.21  five-year limitation on contracts set by sections 16C.05, 
  5.22  subdivision 2, paragraph (a), clause (5), 16C.08, subdivision 3, 
  5.23  clause (7), and 16C.09, clause (6).  Section 16E.03, subdivision 
  5.24  3, does not apply to this section. 
  5.25     Sec. 4.  Laws 1995, First Special Session chapter 3, 
  5.26  article 12, section 10, is amended to read: 
  5.27     Sec. 10.  [ELECTRONIC COST REDUCTION.] 
  5.28     The commissioner of education shall identify methods to 
  5.29  reduce the costs of Internet access for school districts.  The 
  5.30  commissioner shall work in conjunction with MNet the state 
  5.31  information infrastructure, the department of administration, 
  5.32  and the telecommunication industry to provide Internet access 
  5.33  and long distance phone service at a favorable group rate. 
  5.34     Sec. 5.  [EFFECTIVE DATE.] 
  5.35     This act is effective the day following final enactment.  
  5.36  This act does not affect any valid contracts executed before the 
  6.1   effective date of this act.