1.1                          A bill for an act 
  1.2             relating to telecommunications; restricting regulation 
  1.3             of the Internet, interactive computer services, 
  1.4             digital broadband services, and high-speed data and 
  1.5             Internet access services; making technical changes; 
  1.6             amending Minnesota Statutes 1998, sections 237.01, by 
  1.7             adding subdivisions; 237.02; 237.626; 238.02, 
  1.8             subdivision 8, and by adding subdivisions; and 238.08, 
  1.9             by adding a subdivision. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 237.01, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 2a.  [DIGITAL DATA TRANSMISSION SERVICE.] "Digital 
  1.14  data transmission service" means any digital, two-way 
  1.15  interactive, packet-switched transmission service that employs 
  1.16  Internet protocols or provides transmission functionality 
  1.17  capable of transmission at 64 kilobits per second or faster and 
  1.18  includes telecommunications, enhanced, or information services 
  1.19  that use digital subscriber loop technology, asynchronous 
  1.20  transfer mode, or packet, frame, cell, or similar technology for 
  1.21  transmissions.  "Digital data transmission service" does not 
  1.22  include voice-grade services, including the specific 
  1.23  price-regulated services described in section 237.761, 
  1.24  subdivision 3, and signaling system 7 services, that use the 
  1.25  public, switched telecommunications network circuit switching to 
  1.26  connect customers. 
  1.27     Sec. 2.  Minnesota Statutes 1998, section 237.01, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 3a.  [INTERACTIVE COMPUTER SERVICE.] "Interactive 
  2.3   computer service" means an information service, system, or 
  2.4   access software provider that provides or enables computer 
  2.5   access by multiple users to a computer server, including 
  2.6   specifically a service that provides access to the Internet and 
  2.7   systems operated or services offered by libraries or educational 
  2.8   institutions. 
  2.9      Sec. 3.  Minnesota Statutes 1998, section 237.01, is 
  2.10  amended by adding a subdivision to read: 
  2.11     Subd. 3b.  [INTERNET.] "Internet" means collectively the 
  2.12  myriad of computer and telecommunications facilities, including 
  2.13  equipment and operating software, that comprise the 
  2.14  interconnected worldwide network of networks that employ 
  2.15  transmission control protocol or Internet protocol, or any 
  2.16  predecessor or successor protocols or technologies, to 
  2.17  communicate information of all kinds by wire or wireless 
  2.18  transmission. 
  2.19     Sec. 4.  Minnesota Statutes 1998, section 237.02, is 
  2.20  amended to read: 
  2.21     237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
  2.22  DEFINITIONS; INTERNET.] 
  2.23     Subdivision 1.  [AUTHORITY.] The department of public 
  2.24  service and the public utilities commission, now existing under 
  2.25  the laws of this state, are hereby vested with the same 
  2.26  jurisdiction and supervisory power over telephone companies 
  2.27  doing business in this state as it now has over railroad and 
  2.28  express companies.  
  2.29     Subd. 2.  [DEFINITIONS.] The definitions set forth in 
  2.30  section 216A.02 shall apply also to this chapter. 
  2.31     Subd. 3.  [INTERNET SERVICE.] Neither the commission nor 
  2.32  the department shall regulate or attempt to regulate the 
  2.33  Internet, interactive computer services, or digital data 
  2.34  transmission services under this chapter or chapter 216A or 
  2.35  216B.  This subdivision does not affect the authority of the 
  2.36  commission to regulate any other telecommunications service 
  3.1   pursuant to this chapter or federal law.  This subdivision does 
  3.2   not affect any duty or obligation of a telephone company or a 
  3.3   telecommunications carrier imposed upon such carrier by section 
  3.4   251, paragraph (a), (b), or (c) of the Federal 
  3.5   Telecommunications Act of 1996, Minnesota Statutes, section 
  3.6   237.09, subdivision 2, or under state law with respect to 
  3.7   interconnection, colocation, resale, or network unbundling with 
  3.8   other companies or carriers.  This subdivision does not release 
  3.9   a telephone company from any of its obligations under an 
  3.10  investment plan or digital broadband service settlement approved 
  3.11  by the public utilities commission prior to May 1, 1999. 
  3.12     Subd. 4.  [RESTRAINT OF TRADE REGULATION.] In addition to 
  3.13  any other basis for the application of sections 325D.01 to 
  3.14  325D.16, services exempt from regulation by the commission or 
  3.15  department under subdivision 3 are subject to regulation under 
  3.16  sections 325D.01 to 325D.072 as if they were goods sold by a 
  3.17  retailer and under sections 325D.09 to 325D.16 as if they were 
  3.18  the sale of merchandise at retail.  
  3.19     Subd. 5.  [RIGHT-OF-WAY.] Nothing in this section limits 
  3.20  the authority of the commission or department granted under 
  3.21  sections 237.162 and 237.163 to regulate the right-of-way. 
  3.22     Sec. 5.  Minnesota Statutes 1998, section 237.626, is 
  3.23  amended to read: 
  3.24     237.626 [PROMOTION ACTIVITIES.] 
  3.25     Subdivision 1.  [GENERAL TERMS.] A telephone 
  3.26  company subject to rate of return regulation may promote the use 
  3.27  of its services by offering a waiver of part or all of a 
  3.28  recurring or a nonrecurring charge, a redemption coupon, or a 
  3.29  premium with the purchase of a service according to this 
  3.30  subdivision.  Section 237.09 does not apply to promotions under 
  3.31  this section, but the customer group to which the promotion is 
  3.32  available must be based on reasonable distinctions among 
  3.33  customers.  No single promotion may be effective for longer than 
  3.34  90 days at a time.  The service being promoted must have a price 
  3.35  that is above the incremental cost of the service, including 
  3.36  amortized cost of the promotion.  A promotion may take effect 
  4.1   the day after the notice is filed with the commission.  The 
  4.2   notice must identify customers to whom the promotion is 
  4.3   available and include cost information demonstrating that the 
  4.4   revenue from the service covers incremental cost, including cost 
  4.5   of the promotion.  A telephone company that offers a promotion 
  4.6   under this section shall file a report on the promotion with the 
  4.7   commission and the department within 90 days of the conclusion 
  4.8   of the promotion. 
  4.9      Subd. 2.  [FOR WHOM; WHEN; OBJECTION.] A telephone company 
  4.10  operating under an alternative regulation plan or otherwise not 
  4.11  subject to rate of return regulation or a telecommunications 
  4.12  carrier may promote the use of its services in any reasonable 
  4.13  manner.  A promotion may take effect the day after the notice is 
  4.14  filed with the commission.  The notice must identify to 
  4.15  customers to whom the promotion is available and the time period 
  4.16  the promotion will be available and will automatically be deemed 
  4.17  approved by the commission unless the commission on its own 
  4.18  motion, the department, or another person files a written 
  4.19  objection to the promotion within ten days. 
  4.20     Subd. 3.  [EXCEPTIONS.] Subdivisions 1 and 2 do not apply 
  4.21  to promotional offerings or packages that include services not 
  4.22  regulated under chapter 237.  Revenues from regulated services 
  4.23  may not be used to subsidize unregulated services.  
  4.24     Sec. 6.  Minnesota Statutes 1998, section 238.02, 
  4.25  subdivision 8, is amended to read: 
  4.26     Subd. 8.  [MUNICIPALITY.] "Municipality" shall mean any 
  4.27  means an organized town, statutory or home rule charter city, or 
  4.28  county with respect to the unorganized territory within its 
  4.29  boundaries. 
  4.30     Sec. 7.  Minnesota Statutes 1998, section 238.02, is 
  4.31  amended by adding a subdivision to read: 
  4.32     Subd. 21.  [INTERNET.] "Internet" means collectively the 
  4.33  myriad of computer and telecommunications facilities, including 
  4.34  equipment and operating software, that comprise the 
  4.35  interconnected worldwide network of networks that employ 
  4.36  transmission control protocol or Internet protocol, or any 
  5.1   predecessor or successor protocols or technologies, to 
  5.2   communicate information of all kinds by wire or wireless 
  5.3   transmission. 
  5.4      Sec. 8.  Minnesota Statutes 1998, section 238.02, is 
  5.5   amended by adding a subdivision to read: 
  5.6      Subd. 22.  [INTERACTIVE COMPUTER SERVICE.] "Interactive 
  5.7   computer service" means any information service, system, or 
  5.8   access software provider that provides or enables computer 
  5.9   access by multiple users to a computer server, including 
  5.10  specifically a service that provides access to the Internet and 
  5.11  systems operated or services offered by libraries or educational 
  5.12  institutions. 
  5.13     Sec. 9.  Minnesota Statutes 1998, section 238.02, is 
  5.14  amended by adding a subdivision to read: 
  5.15     Subd. 23.  [HIGH SPEED DATA SERVICES.] "High speed data 
  5.16  services" means any digital, two-way interactive, 
  5.17  packet-switched service provided over a cable system that uses 
  5.18  Internet protocols. 
  5.19     Sec. 10.  Minnesota Statutes 1998, section 238.08, is 
  5.20  amended by adding a subdivision to read: 
  5.21     Subd. 6.  [INTERNET SERVICES.] (a) Every municipality shall 
  5.22  refrain from exercising or attempting to exercise regulatory 
  5.23  authority over the Internet, interactive computer services, or 
  5.24  high speed data and Internet access services offered to 
  5.25  subscribers over a cable communications system.  This paragraph 
  5.26  does not exempt a franchisee from provisions in a franchise 
  5.27  ordinance agreed to prior to March 31, 1999, that impose express 
  5.28  requirements specifically related to Internet, interactive 
  5.29  computer services, or high speed data service.  
  5.30     (b) Notwithstanding paragraph (a), for as long as high 
  5.31  speed data and Internet access services are considered cable 
  5.32  services under federal law, a municipality may include in a 
  5.33  franchise a provision that fees charged by a cable operator to 
  5.34  its subscribers for high speed data and Internet access services 
  5.35  may be subject to franchise fees.  Upon a binding legislative, 
  5.36  administrative, or final judicial determination that high speed 
  6.1   data and Internet access services are not cable services under 
  6.2   federal law, the obligation of a cable operator to pay franchise 
  6.3   fees on those services ceases. 
  6.4      (c) Nothing in this subdivision limits the authority 
  6.5   granted to a municipality under sections 237.162 and 237.163 to 
  6.6   regulate the right-of-way. 
  6.7      Sec. 11.  [SUNSET.] 
  6.8      Sections 4 and 10 expire June 30, 2001.