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 BROADBAND SERVICE.] "Digital broadband 
  1.14  service" means any digital, two-way interactive, packet-switched 
  1.15  service that employs Internet protocols and provides 
  1.16  transmission functionality capable of transmission at 64 
  1.17  kilobits per second or faster, but does not include voice-grade 
  1.18  services that utilize the public, switched telecommunications 
  1.19  network circuit switching to connect customers.  The term 
  1.20  includes telecommunications services, includes enhanced or 
  1.21  information services, and may use digital subscriber loop 
  1.22  technology, asynchronous transfer mode, or packet, frame, cell, 
  1.23  or similar technology for transmissions. 
  1.24     Sec. 2.  Minnesota Statutes 1998, section 237.01, is 
  1.25  amended by adding a subdivision to read: 
  1.26     Subd. 3a.  [INTERACTIVE COMPUTER SERVICE.] "Interactive 
  1.27  computer service" means an information service, system, or 
  2.1   access software provider that provides or enables computer 
  2.2   access by multiple users to a computer server, including 
  2.3   specifically a service that provides access to the Internet and 
  2.4   systems operated or services offered by libraries or educational 
  2.5   institutions. 
  2.6      Sec. 3.  Minnesota Statutes 1998, section 237.01, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 3b.  [INTERNET.] "Internet" means collectively the 
  2.9   myriad of computer and telecommunications facilities, including 
  2.10  equipment and operating software, that comprise the 
  2.11  interconnected worldwide network of networks that employ 
  2.12  transmission control protocol or Internet protocol, or any 
  2.13  predecessor or successor protocols or technologies, to 
  2.14  communicate information of all kinds by wire or wireless 
  2.15  transmission. 
  2.16     Sec. 4.  Minnesota Statutes 1998, section 237.02, is 
  2.17  amended to read: 
  2.18     237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
  2.19  DEFINITIONS; INTERNET.] 
  2.20     Subdivision 1.  [AUTHORITY.] The department of public 
  2.21  service and the public utilities commission, now existing under 
  2.22  the laws of this state, are hereby vested with the same 
  2.23  jurisdiction and supervisory power over telephone companies 
  2.24  doing business in this state as it now has over railroad and 
  2.25  express companies.  
  2.26     Subd. 2.  [DEFINITIONS.] The definitions set forth in 
  2.27  section 216A.02 shall apply also to this chapter. 
  2.28     Subd. 3.  [INTERNET SERVICE.] Neither the commission nor 
  2.29  the department shall regulate or attempt to regulate the 
  2.30  Internet, interactive computer services, or digital broadband 
  2.31  services under this chapter or chapter 216A or 216B.  This 
  2.32  subdivision does not affect the authority of the commission to 
  2.33  regulate any other telecommunications service pursuant to this 
  2.34  chapter or as necessary to implement federal law. 
  2.35     Sec. 5.  Minnesota Statutes 1998, section 237.626, is 
  2.36  amended to read: 
  3.1      237.626 [PROMOTION ACTIVITIES.] 
  3.2      Subdivision 1.  [GENERAL TERMS.] A telephone 
  3.3   company subject to rate of return regulation may promote the use 
  3.4   of its services by offering a waiver of part or all of a 
  3.5   recurring or a nonrecurring charge, a redemption coupon, or a 
  3.6   premium with the purchase of a service according to this 
  3.7   subdivision.  Section 237.09 does not apply to promotions under 
  3.8   this section, but the customer group to which the promotion is 
  3.9   available must be based on reasonable distinctions among 
  3.10  customers.  No single promotion may be effective for longer than 
  3.11  90 days at a time.  The service being promoted must have a price 
  3.12  that is above the incremental cost of the service, including 
  3.13  amortized cost of the promotion.  A promotion may take effect 
  3.14  the day after the notice is filed with the commission.  The 
  3.15  notice must identify customers to whom the promotion is 
  3.16  available and include cost information demonstrating that the 
  3.17  revenue from the service covers incremental cost, including cost 
  3.18  of the promotion.  A telephone company that offers a promotion 
  3.19  under this section shall file a report on the promotion with the 
  3.20  commission and the department within 90 days of the conclusion 
  3.21  of the promotion. 
  3.22     Subd. 2.  [FOR WHOM; WHEN; OBJECTION.] A telephone company 
  3.23  operating under an alternative regulation plan or otherwise not 
  3.24  subject to rate of return regulation, telecommunications 
  3.25  carrier, or competitive local exchange carrier may promote the 
  3.26  use of its services in any reasonable manner.  A promotion may 
  3.27  take effect the day after the notice is filed with the 
  3.28  commission.  The notice must identify to customers to whom the 
  3.29  promotion is available and the time period the promotion will be 
  3.30  available and will automatically be deemed approved by the 
  3.31  commission unless the commission on its own motion, the 
  3.32  department, or another person files a written objection to the 
  3.33  promotion within ten days. 
  3.34     Subd. 3.  [EXCEPTIONS.] Subdivisions 1 and 2 do not apply 
  3.35  to promotional offerings or packages that are funded by revenues 
  3.36  generated from services not regulated under chapter 237, 
  4.1   including but not limited to, customer premise equipment, high 
  4.2   speed data services, cable communication services, Internet 
  4.3   services, radio common carrier services, and video services. 
  4.4      Sec. 6.  Minnesota Statutes 1998, section 238.02, 
  4.5   subdivision 8, is amended to read: 
  4.6      Subd. 8.  [MUNICIPALITY.] "Municipality" shall mean any 
  4.7   means an organized town, statutory or home rule charter city, or 
  4.8   county with respect to the unorganized territory within its 
  4.9   boundaries. 
  4.10     Sec. 7.  Minnesota Statutes 1998, section 238.02, is 
  4.11  amended by adding a subdivision to read: 
  4.12     Subd. 21.  [INTERNET.] "Internet" means collectively the 
  4.13  myriad of computer and telecommunications facilities, including 
  4.14  equipment and operating software, that comprise the 
  4.15  interconnected worldwide network of networks that employ 
  4.16  transmission control protocol or Internet protocol, or any 
  4.17  predecessor or successor protocols or technologies, to 
  4.18  communicate information of all kinds by wire or wireless 
  4.19  transmission. 
  4.20     Sec. 8.  Minnesota Statutes 1998, section 238.02, is 
  4.21  amended by adding a subdivision to read: 
  4.22     Subd. 22.  [INTERACTIVE COMPUTER SERVICE.] "Interactive 
  4.23  computer service" means any information service, system, or 
  4.24  access software provider that provides or enables computer 
  4.25  access by multiple users to a computer server, including 
  4.26  specifically a service that provides access to the Internet and 
  4.27  systems operated or services offered by libraries or educational 
  4.28  institutions. 
  4.29     Sec. 9.  Minnesota Statutes 1998, section 238.02, is 
  4.30  amended by adding a subdivision to read: 
  4.31     Subd. 23.  [HIGH SPEED DATA AND INTERNET ACCESS 
  4.32  SERVICES.] "High speed data and Internet access services" means 
  4.33  any digital, two-way interactive, packet-switched service 
  4.34  provided over a cable system that uses Internet protocols and 
  4.35  provides broadband connectivity to the Internet. 
  4.36     Sec. 10.  Minnesota Statutes 1998, section 238.08, is 
  5.1   amended by adding a subdivision to read: 
  5.2      Subd. 6.  [INTERNET SERVICES.] (a) Every municipality shall 
  5.3   refrain from exercising or attempting to exercise regulatory 
  5.4   authority over the Internet, interactive computer services, or 
  5.5   high speed data and Internet access services offered over a 
  5.6   cable communications system. 
  5.7      (b) Notwithstanding paragraph (a), for as long as high 
  5.8   speed data and Internet access services are considered cable 
  5.9   services under federal law, a municipality may include in a 
  5.10  franchise a provision that fees charged by a cable operator to 
  5.11  its subscribers for high speed data and Internet access services 
  5.12  may be subject to franchise fees.  On determination by the 
  5.13  Federal Communications Commission or a court of competent 
  5.14  jurisdiction that high speed data and Internet access services 
  5.15  are not cable services under federal law, the obligation of a 
  5.16  cable operator to pay franchise fees on those services ceases.