Minnesota Session Laws - 1997, Regular Session

                            CHAPTER 208-S.F.No. 555 
                  An act relating to telecommunications; authorizing 
                  creation of telecommunication services purchasing 
                  cooperatives; amending Minnesota Statutes 1996, 
                  section 237.065; proposing coding for new law in 
                  Minnesota Statutes, chapter 308A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 237.065, is 
        amended to read: 
           237.065 [RATES FOR SPECIAL SERVICE TO SCHOOLS AND 
        TELECOMMUNICATION SERVICES PURCHASING COOPERATIVES.] 
           Subdivision 1.  [BASIC SERVICES.] Each telephone company, 
        including a company that has developed an incentive plan under 
        section 237.625, that provides local telephone service in a 
        service area that includes a school that has classes within the 
        range from kindergarten to 12th grade shall provide, upon 
        request, additional service to the school that is sufficient to 
        ensure access to basic telephone service from each classroom and 
        other areas within the school, as determined by the school 
        board.  Each company shall set a flat rate for this additional 
        service that is less than the company's flat rate for an access 
        line for a business and the same as or greater than the 
        company's flat rate for an access line for a residence in the 
        same local telephone service exchange.  When a company's flat 
        rates for businesses and residences are the same, the company 
        shall use the residential rate for service to schools under this 
        section.  The rate required under this section is available only 
        for a school that installs additional service that includes 
        access to basic telephone service from each classroom and other 
        areas within the school, as determined by the school board. 
           Subd. 2.  [BASIC AND ADVANCED TELECOMMUNICATION SERVICES.] 
        (a) Notwithstanding the provisions of sections 237.09, 237.14, 
        237.60, subdivision 3, and 237.74, each telephone company and 
        telecommunications carrier that provides local telephone service 
        in a service area that includes a school that has classes within 
        the range from kindergarten to grade 12 or that includes, a 
        public library, or a telecommunication services purchasing 
        cooperative may provide, upon request, basic and advanced 
        telecommunication services at reduced or no cost to that 
        school or, library, or may provide, upon request, advanced 
        telecommunication services at reduced wholesale rates to the 
        members of a telecommunication services purchasing cooperative.  
        For purposes of this section, a "telecommunication services 
        purchasing cooperative" means a cooperative organized under 
        section 308A.210.  A school or library receiving 
        telecommunications services at reduced or no cost may not resell 
        or sublease the discounted services.  No members of a 
        telecommunication services purchasing cooperative may resell or 
        sublease the discounted services.  A purchasing cooperative is 
        not required to negotiate or provide a uniform rate for its 
        members.  Telecommunications services shall be provided in 
        accordance with Public Law Number 104-104, and the regulations 
        of the Federal Communications Commission adopted under the act.  
           (b) An agent that provides telecommunications services to a 
        school or library may request the favorable rate on behalf of 
        and for the exclusive benefit of the school or library.  The 
        school or library must authorize the agent to make the request 
        of the local telephone company or telecommunications carrier.  
        The telephone company or telecommunications carrier is not 
        required to offer the same price discount to the agent that it 
        would offer to the school district or library.  An agent that 
        receives a price discount for telecommunications services on 
        behalf of a school or library may only resell or sublease the 
        discounted services to that school or library. 
           (c) For the purposes of this subdivision, "school" includes 
        a public school as defined in section 120.05, nonpublic, and 
        church or religious organization schools that provide 
        instruction in compliance with sections 120.101 to 120.102. 
           Sec. 2.  [308A.210] [TELECOMMUNICATION SERVICES PURCHASING 
        COOPERATIVES.] 
           Subdivision 1.  [PURPOSE; TERRITORY.] A telecommunication 
        services purchasing cooperative may be formed under this chapter 
        for the sole purpose of purchasing advanced telecommunications 
        services by aggregating demand and negotiating reduced rates for 
        its members.  Any such telecommunication services shall be 
        provided and directly billed by a telephone company or a 
        telecommunication carrier.  A purchasing cooperative must 
        declare in its articles of incorporation a contiguous area 
        comprising less than the entire state in which it may operate. 
           Subd. 2.  [LOCAL GOVERNMENT UNITS.] In addition to others 
        that may form a cooperative, a political subdivision of the 
        state, including a service cooperative created under section 
        123.582, may act to organize a telecommunication services 
        purchasing cooperative within its jurisdiction for the benefit 
        of its residents. 
           Subd. 3.  [POWERS.] A purchasing cooperative has all of the 
        powers described in section 308A.201, except that a purchasing 
        cooperative does not have the power of eminent domain.  A 
        purchasing cooperative is not a telephone or electric 
        cooperative as those terms are used in this chapter and chapters 
        216B and 237. 
           Subd. 4.  [GOVERNING BOARD.] A board of directors of five 
        to seven members shall govern a telecommunication services 
        purchasing cooperative.  The directors must be elected according 
        to the requirements of section 308A.311, except that: 
           (1) all of the directors must be members of the purchasing 
        cooperative; 
           (2) a director may not be a provider of services to the 
        cooperative or an employee of the provider; 
           (3) a director may not be a member of a governing body of a 
        political subdivision; and 
           (4) a majority of the directors must be seeking to purchase 
        some residential telecommunication services through the 
        cooperative. 
           Subd. 5.  [RESIDENTIAL MEMBERSHIP REQUIREMENT.] In order to 
        ensure that residential customers experience the benefits of 
        cooperative purchasing, at least 50 percent of the total number 
        of entities or individuals who are members of the purchasing 
        cooperative must be seeking to purchase residential 
        telecommunication services through the cooperative.  If the 
        telecommunication services purchasing cooperative fails to 
        comply with this subdivision, it shall notify the department of 
        public service and shall have one year from the date of 
        noncompliance to come into compliance.  If it does not come into 
        compliance, the telecommunication services purchasing 
        cooperative shall be dissolved and its assets distributed to its 
        members. 
           Subd. 6.  [FILINGS WITH DEPARTMENT OF PUBLIC SERVICE.] A 
        purchasing cooperative must immediately file a copy of its 
        contracts with telecommunication services providers with the 
        department of public service.  A purchasing cooperative must 
        file its annual financial statements with the department. 
           Subd. 7.  [OPEN MEMBERSHIP.] Any person within the 
        geographic operating area declared in a cooperative's articles 
        of incorporation or any person within the exchange boundary or 
        service area of a telephone company or telecommunication carrier 
        that in whole or in part is included in the geographic operating 
        area declared in the cooperative's articles of incorporation may 
        become a member of the telecommunication services purchasing 
        cooperative. 
           Subd. 8.  [ADVANCED TELECOMMUNICATION SERVICES; 
        DEFINED.] "Advanced telecommunications service" includes any 
        service that would be classified as a flexibly priced service 
        within the meaning of section 237.761, subdivision 4, or 
        nonprice regulated service within the meaning of section 
        237.761, subdivision 4, provided that a service may be an 
        advanced telephone service whether or not the telephone company 
        has adopted an alternative rate plan within the meaning of 
        section 237.76. 
           Presented to the governor May 20, 1997 
           Became law without the governor's signature May 22, 1997