1.1                          A bill for an act 
  1.2             relating to telecommunications; creating a public 
  1.3             telecommunication services fund; providing support for 
  1.4             various public telecommunication networks; providing 
  1.5             for an access fee; appropriating money; proposing 
  1.6             coding for new law in Minnesota Statutes, chapter 237. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [237.82] [PUBLIC TELECOMMUNICATION SERVICES 
  1.9   FUND.] 
  1.10     Subdivision 1.  [FUND ESTABLISHED.] A public 
  1.11  telecommunication services fund is established as an account in 
  1.12  the state treasury.  Earnings, such as interest, dividends, and 
  1.13  any other earnings arising from fund assets, must be credited to 
  1.14  the account.  
  1.15     Subd. 2.  [ACCESS FEE.] Unless specifically provided 
  1.16  otherwise in this subdivision, the terms used in this 
  1.17  subdivision have the meanings given in section 297A.61. 
  1.18     A fee equal to one percent of the gross receipts from sales 
  1.19  at retail of telecommunication services that are subject to 
  1.20  taxation under chapter 297A, is imposed. 
  1.21     The fee must be collected by the commissioner of revenue in 
  1.22  the same manner, and is subject to the same interest and 
  1.23  penalties as the tax imposed under chapter 297A, provided that 
  1.24  section 297A.94 does not apply to the revenues derived from the 
  1.25  fee. 
  1.26     The commissioner of revenue shall deposit the revenues, 
  2.1   including interest and penalties, derived from the fee imposed 
  2.2   under this subdivision in the public telecommunication services 
  2.3   fund account.  
  2.4      Subd. 3.  [LEARNING NETWORK.] Commencing in fiscal year 
  2.5   2004, the account shall fund the learning network of Minnesota 
  2.6   formerly funded through the higher education services office. 
  2.7      Subd. 4.  [TELECOMMUNICATION ACCESS REVENUE 
  2.8   PROGRAM.] Commencing in fiscal year 2003, the account shall fund 
  2.9   the telecommunication access revenue program under section 
  2.10  125B.25.  If the amount available in the fund is insufficient to 
  2.11  fund fully the program, the Minnesota education 
  2.12  telecommunications council must allocate the amount available to 
  2.13  enable districts or regional clusters to maintain current 
  2.14  connections within available funding.  
  2.15     Subd. 5.  [REGIONAL LIBRARY AID.] Commencing in fiscal year 
  2.16  2003, the account shall fund the regional library 
  2.17  telecommunication aid under section 134.47.  In fiscal year 
  2.18  2003, this amount must be $2,000,000.  
  2.19     Subd. 6.  [COORDINATED PLAN.] The Minnesota education 
  2.20  telecommunications council shall develop a specific funding plan 
  2.21  consistent with the regional distribution method recommended by 
  2.22  the permanent funding committees of the legislature that 
  2.23  integrate the funding authorized in subdivisions 3 to 5.  
  2.24     Subd. 7.  [MNLINK.] The account shall fund the shortfall, 
  2.25  if any, in fiscal year 2003 for the MnLink program formerly 
  2.26  funded through the higher education services office.  
  2.27     Subd. 8.  [TELEMEDICINE; HOSPITAL EMERGENCY 
  2.28  COMMUNICATIONS.] Commencing in fiscal year 2004, the 
  2.29  commissioner of administration shall make grants to fund a 
  2.30  hospital emergency communications network.  The commissioner 
  2.31  must ensure the interoperability of networks among hospitals 
  2.32  with the learning network.  The commissioner shall establish an 
  2.33  application procedure for grants and award grants with the 
  2.34  advice of the commissioner of health and the technology 
  2.35  enterprise board.  Grants may not exceed 80 percent of the cost 
  2.36  of the proposal.  The hospital network must be redundant to a 
  3.1   telephone network and use Internet technology.  The network must 
  3.2   be designed so that it can also be used for telemedicine and 
  3.3   education.  All entities that are eligible for federal 
  3.4   telecommunication aid or discounts must apply for the maximum 
  3.5   assistance available and must use the amounts or discounts 
  3.6   received to reduce the state aid that may be necessary.  Grants 
  3.7   may be used to upgrade existing systems.  The goal of the grant 
  3.8   program is to connect all hospitals in Minnesota to one 
  3.9   interoperable network for the sharing of information.  
  3.10     Subd. 9.  [EMERGENCY RESPONSE NETWORK.] Commencing in 
  3.11  fiscal year 2004, the commissioner, in collaboration with the 
  3.12  commissioner of public safety, shall make grants for the 
  3.13  creation and operation of an emergency response network using 
  3.14  Internet technology that enables communication among fire 
  3.15  departments, fire stations, and hospitals and to the extent 
  3.16  funds are available, other emergency response organizations.  
  3.17  The commissioner shall consult with the technology enterprise 
  3.18  board before awarding grants.  In awarding grants from the fund, 
  3.19  the commissioner and the technology enterprise board must 
  3.20  attempt to obtain cost reductions and performance improvements 
  3.21  by encouraging cooperation among education, health care, and 
  3.22  public safety recipients of state telecommunication assistance.  
  3.23  The commissioner, the Minnesota education telecommunications 
  3.24  council, and the board must give preference in the award of 
  3.25  grants or contracts to proposals that will enhance the 
  3.26  availability and affordability of broadband telecommunications 
  3.27  to residential and business customers throughout Minnesota.  
  3.28     Subd. 10.  [CONSULTATION.] The commissioner shall consult 
  3.29  with the Minnesota education telecommunications council prior to 
  3.30  making funding decisions under this section.  
  3.31     Subd. 11.  [FISCAL AGENT.] The commissioner of 
  3.32  administration is the fiscal agent for funding programs under 
  3.33  this section and is not authorized to, nor responsible for, the 
  3.34  management or operation of those programs.  
  3.35     Subd. 12.  [ADMINISTRATION COSTS.] Not more than $....... 
  3.36  each fiscal year may be expended from the account for paying the 
  4.1   expenses of the commissioner of administration in administering 
  4.2   this section. 
  4.3      Subd. 13.  [APPROPRIATION.] Money in the fund is 
  4.4   appropriated to the commissioner of administration for the 
  4.5   purposes described in this section. 
  4.6      <b>[EFFECTIVE DATE.]</b> Subdivision 2 is effective for sales of 
  4.7   telecommunication services after January 1, 2003.