1.1                          A bill for an act 
  1.2             relating to telecommunications; creating a public 
  1.3             telecommunication services account; providing support 
  1.4             for various public telecommunication networks; 
  1.5             appropriating money; amending Minnesota Statutes 2000, 
  1.6             section 125B.25, subdivision 9; Laws 2001, First 
  1.7             Special Session chapter 3, article 4, section 5, 
  1.8             subdivisions 2, as amended, 4, as amended; proposing 
  1.9             coding for new law in Minnesota Statutes, chapter 237; 
  1.10            repealing Minnesota Statutes 2001 Supplement, section 
  1.11            134.47, subdivision 3. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2000, section 125B.25, 
  1.14  subdivision 9, is amended to read: 
  1.15     Subd. 9.  [EXPIRATION INSUFFICIENT FUNDING.] This section 
  1.16  expires on July 1, 2002. If the amount appropriated for purposes 
  1.17  of this section is insufficient to fully fund the program, the 
  1.18  Minnesota education telecommunications council must allocate the 
  1.19  amount available to enable districts or regional clusters to 
  1.20  maintain current connections within available funding.  
  1.21     Sec. 2.  [237.82] [TELECOMMUNICATIONS ACCESS FEE.] 
  1.22     Unless specifically provided otherwise in this section, the 
  1.23  terms used in this section have the meanings given in section 
  1.24  297A.61. 
  1.25     A fee equal to one-half of one percent of the gross 
  1.26  receipts from sales at retail of telecommunication services that 
  1.27  are subject to taxation under chapter 297A, is imposed.  The fee 
  1.28  must be shown as a separate line item on a bill for the 
  2.1   telecommunications services.  The fee must be collected by the 
  2.2   commissioner of revenue in the same manner, and is subject to 
  2.3   the same interest and penalties as the tax imposed under chapter 
  2.4   297A, provided that section 297A.94 does not apply to the 
  2.5   revenues derived from the fee.  The commissioner of revenue 
  2.6   shall deposit the revenues, including interest and penalties, 
  2.7   derived from the fee imposed under this section in the state 
  2.8   treasury and credit them to the public telecommunication 
  2.9   services account. 
  2.10     The fee terminates upon the effective date of the creation 
  2.11  of a universal service fund by the public utilities commission 
  2.12  or the legislature that addresses a broad range of access and 
  2.13  affordability issues, but no later than June 30, 2005. 
  2.14     Sec. 3.  [237.83] [PUBLIC TELECOMMUNICATION SERVICES 
  2.15  ACCOUNT.] 
  2.16     Subdivision 1.  [ACCOUNT ESTABLISHED.] A public 
  2.17  telecommunication services account is established in the state 
  2.18  treasury.  Earnings, such as interest, dividends, and any other 
  2.19  earnings arising from fund assets, must be credited to the 
  2.20  account.  
  2.21     Subd. 2.  [PURPOSE.] The purpose of the account is to 
  2.22  provide money to fund the learning network of Minnesota formerly 
  2.23  funded through the higher education services office, the 
  2.24  telecommunication access revenue program under section 125B.25, 
  2.25  regional library telecommunication aid under section 134.47.  To 
  2.26  the extent money is available after fully funding those 
  2.27  programs, the account will be used to fund the hospital 
  2.28  emergency telecommunications network under section 237.84. 
  2.29     Subd. 3.  [COORDINATED PLAN.] The Minnesota education 
  2.30  telecommunications council shall develop a specific funding plan 
  2.31  that integrates the funding for education programs under 
  2.32  subdivision 2, consistent with the regional distribution method 
  2.33  recommended by the permanent funding committee in the report 
  2.34  required by the legislature.  The council shall submit the plan 
  2.35  to the education budget division chairs of the legislature by 
  2.36  January 15, 2003.  All entities receiving funding under 
  3.1   subdivision 2 that are eligible for federal telecommunication 
  3.2   aid or discounts must apply for the maximum assistance available 
  3.3   and must use the amounts or discounts received to reduce the 
  3.4   state aid that may be necessary. 
  3.5      Subd. 4.  [ADMINISTRATION.] The commissioner of 
  3.6   administration shall award grants from the account, but not 
  3.7   manage or operate the programs funded by the grants.  The 
  3.8   commissioner shall consult with the Minnesota education 
  3.9   telecommunications council before making grant decisions related 
  3.10  to education networks.  
  3.11     Subd. 5.  [COST REDUCTIONS; PERFORMANCE IMPROVEMENTS.] In 
  3.12  awarding grants, the commissioner and the technology enterprise 
  3.13  board must attempt to obtain cost reductions and performance 
  3.14  improvements by encouraging cooperation among education and 
  3.15  health care recipients of state telecommunication assistance.  
  3.16     Subd. 6.  [CONNECTION COSTS.] Connection costs funded under 
  3.17  this section may not be paid to a state agency unless the 
  3.18  regional group making the application demonstrates that: 
  3.19     (1) no other entity submitted bids to provide the 
  3.20  connection; 
  3.21     (2) the state agency had been a recipient of money under a 
  3.22  program described in subdivision 2; or 
  3.23     (3) the participation of a state agency is necessary to the 
  3.24  interoperability of a network.  
  3.25     Sec. 4.  [237.84] [HOSPITAL EMERGENCY COMMUNICATIONS 
  3.26  NETWORK.] 
  3.27     The commissioner of administration shall make grants to 
  3.28  fund a hospital emergency communications network.  The initial 
  3.29  grants may be used for hospital telecommunications equipment and 
  3.30  connection charges.  Subsequent grants are only for connection 
  3.31  costs.  Applications for the grants must be submitted by 
  3.32  regional groups of hospitals.  The commissioner must ensure the 
  3.33  interoperability of networks among hospitals with the learning 
  3.34  network.  The commissioner shall establish an application 
  3.35  procedure for grants and award grants with the advice of the 
  3.36  commissioner of health and the technology enterprise board.  
  4.1   Grants may not exceed 80 percent of the cost of the proposal.  
  4.2   The hospital network must be redundant to the telephone network 
  4.3   and use Internet technology.  The network must be designed so 
  4.4   that it can also be used for telemedicine and education.  All 
  4.5   entities that are eligible for federal telecommunication aid or 
  4.6   discounts must apply for the maximum assistance available and 
  4.7   must use the amounts or discounts received to reduce the state 
  4.8   aid that may be necessary.  Grants may be used to upgrade 
  4.9   existing systems.  The goal of the grant program is to connect 
  4.10  all hospitals in Minnesota to one interoperable network for the 
  4.11  sharing of information.  
  4.12     Sec. 5.  Laws 2001, First Special Session chapter 3, 
  4.13  article 4, section 5, subdivision 2, as amended by Laws 2002, 
  4.14  chapter 220, article 2, section 12, is amended to read: 
  4.15     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
  4.16  according to Minnesota Statutes, sections 134.32 to 134.35: 
  4.17       $8,570,000     .....     2002 
  4.18       $8,570,000     .....     2003 
  4.19     The 2002 appropriation includes $857,000 for 2001 and 
  4.20  $7,713,000 for 2002. 
  4.21     The 2003 appropriation includes $857,000 for 2002 and 
  4.22  $7,713,000 for 2003. 
  4.23     Base level funding for fiscal year 2004 is 
  4.24  $9,823,000 $8,423,000 and $9,822,000 $8,423,000 for fiscal year 
  4.25  2005. 
  4.26     Sec. 6.  Laws 2001, First Special Session chapter 3, 
  4.27  article 4, section 5, subdivision 4, as amended by Laws 2002, 
  4.28  chapter 220, article 2, section 13, is amended to read: 
  4.29     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
  4.30  aid to regional public library systems under Minnesota Statutes, 
  4.31  section 134.47: 
  4.32       $1,200,000     .....     2002 
  4.33       $1,400,000     .....     2003 
  4.34     This is a one-time appropriation.  Any balance in the first 
  4.35  year does not cancel but is available in the second year. 
  4.36     Base level funding for fiscal year 2004 is $1,400,000 and 
  5.1   $1,400,000 for fiscal year 2005.  
  5.2      Sec. 7.  [APPROPRIATIONS.] 
  5.3      $8,600,000 is appropriated from the public 
  5.4   telecommunication services account to the commissioner of 
  5.5   children, families, and learning for the fiscal year ending June 
  5.6   30, 2003, for the following purposes: 
  5.7      (1) $7,800,000 for the telecommunications access revenue 
  5.8   program under Minnesota Statutes, section 125B.25; and 
  5.9      (2) $800,000 for regional library telecommunications aid 
  5.10  under Minnesota Statutes, section 134.47, to supplement money 
  5.11  previously appropriated from the general fund. 
  5.12     Sec. 8.  [REPEALER.] 
  5.13     Minnesota Statutes 2001 Supplement, section 134.47, 
  5.14  subdivision 3, is repealed. 
  5.15     Sec. 9.  [EFFECTIVE DATE.] 
  5.16     This act is effective January 1, 2003.