1.1                          A bill for an act 
  1.2             relating to telecommunications; regulating 
  1.3             telecommunication services purchasing cooperatives; 
  1.4             amending Minnesota Statutes 2000, section 308A.210, 
  1.5             subdivisions 1, 2, 5, and 8. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 308A.210, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [PURPOSE; TERRITORY.] A telecommunication 
  1.10  services purchasing cooperative may be formed under this chapter 
  1.11  for the sole purpose of purchasing advanced telecommunications 
  1.12  services by aggregating demand and negotiating reduced rates for 
  1.13  its members.  Voice service may be included in a purchase 
  1.14  agreement authorized by this section only if advanced 
  1.15  telecommunication services are also purchased under the 
  1.16  agreement.  Any such telecommunication services shall be 
  1.17  provided and directly billed by a telephone company or a 
  1.18  telecommunication carrier nongovernmental entity authorized to 
  1.19  do so under state or federal law.  A purchasing cooperative must 
  1.20  declare in its articles of incorporation a contiguous area 
  1.21  comprising less than the entire state in which it may operate. 
  1.22     Sec. 2.  Minnesota Statutes 2000, section 308A.210, 
  1.23  subdivision 2, is amended to read: 
  1.24     Subd. 2.  [LOCAL GOVERNMENT UNITS.] In addition to others 
  1.25  that may form a cooperative, a political subdivision of the 
  2.1   state, including a service cooperative created under section 
  2.2   123A.21, may act to organize a telecommunication services 
  2.3   purchasing cooperative within its jurisdiction for the benefit 
  2.4   of its residents.  State agencies may be members of 
  2.5   telecommunication services purchasing cooperatives. 
  2.6      Sec. 3.  Minnesota Statutes 2000, section 308A.210, 
  2.7   subdivision 5, is amended to read: 
  2.8      Subd. 5.  [RESIDENTIAL MEMBERSHIP REQUIREMENT.] In order to 
  2.9   ensure that residential customers experience the benefits of 
  2.10  cooperative purchasing, at least 50 percent of the total number 
  2.11  of entities or individuals who are members of the purchasing 
  2.12  cooperative must be seeking to purchase residential 
  2.13  telecommunication services through the cooperative.  If the 
  2.14  telecommunication services purchasing cooperative fails to 
  2.15  comply with this subdivision, it shall notify the department of 
  2.16  public service and shall have one year from the date of 
  2.17  noncompliance to come into compliance.  If it does not come into 
  2.18  compliance, the telecommunication services purchasing 
  2.19  cooperative shall be dissolved and its assets distributed to its 
  2.20  members.  A purchasing cooperative may purchase different types 
  2.21  or levels of service for differentiated classes of members. 
  2.22     Sec. 4.  Minnesota Statutes 2000, section 308A.210, 
  2.23  subdivision 8, is amended to read: 
  2.24     Subd. 8.  [ADVANCED TELECOMMUNICATION SERVICE; DEFINED.] 
  2.25  "Advanced telecommunications service" includes high-speed data, 
  2.26  Internet, video services, and any service that would be 
  2.27  classified as a flexibly priced service within the meaning of 
  2.28  section 237.761, subdivision 4, or non-price-regulated service 
  2.29  within the meaning of section 237.761, subdivision 4, provided 
  2.30  that a service may be an advanced telephone service whether or 
  2.31  not the telephone company has adopted an alternative rate plan 
  2.32  within the meaning of section 237.76.