Bill Text: MN HF2615 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Broadband service expansion to underserved areas grant program established, and money appropriated.
Spectrum: Slight Partisan Bill (Democrat 13-5)
Status: (Introduced - Dead) 2014-03-20 - Author added Erickson, S. [HF2615 Detail]
Download: Minnesota-2013-HF2615-Engrossed.html
1.2relating to telecommunications; broadband; establishing a program to award
1.3grants for the expansion of broadband service to unserved areas; appropriating
1.4money;proposing coding for new law in Minnesota Statutes, chapter 116J.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [116J.394] DEFINITIONS.
1.7(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
1.8the meanings given them.
1.9(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
1.10subdivision 1, paragraph (b).
1.11(c) "Broadband infrastructure" means networks of deployed telecommunications
1.12equipment and technologies necessary to provide high-speed Internet access and other
1.13advanced telecommunications services for end-users.
1.14(d) "Commissioner" means the commissioner of the Department of Employment and
1.15Economic Development.
1.16(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
1.17final leg connecting the broadband service provider's network to the end-use customer's
1.18on-premises telecommunications equipment.
1.19(f) "Middle-mile infrastructure" means broadband infrastructure that links a
1.20broadband service provider's core network infrastructure to last-mile infrastructure.
1.21(g) "Political subdivision" means any county, city, town, school district, special
1.22district or other political subdivision, or public corporation.
2.1(h) "Unserved areas" means areas of Minnesota in which households or businesses
2.2lack access to broadband service at speeds that meet the state broadband goals of ten to 20
2.3megabits per second download and five to ten megabits per second upload.
2.4 Sec. 2. [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT
2.5GRANT AND LOAN PROGRAM.
2.6 Subdivision 1. Establishment. A grant and loan program is established under the
2.7commissioner of employment and economic development to award grants and loans to
2.8eligible applicants in order to promote the expansion of access to broadband service in
2.9unserved areas of the state.
2.10 Subd. 2. Eligible expenditures. Grants and loans may be awarded under this
2.11section to fund the acquisition and installation of middle-mile and last-mile infrastructure
2.12in unserved areas that support broadband service scalable to speeds of at least 100
2.13megabits per second download and 100 megabits per second upload.
2.14 Subd. 3. Eligible applicants. Eligible applicants for grants and loans awarded
2.15under this section include:
2.16(1) an incorporated business or a partnership;
2.17(2) a political subdivision;
2.18(3) an Indian tribe;
2.19(4) a Minnesota nonprofit organization organized under chapter 317A;
2.20(5) a Minnesota cooperative association organized under chapter 308A or 308B; and
2.21(6) a Minnesota limited liability corporation organized under chapter 322B for the
2.22purpose of expanding broadband access.
2.23 Subd. 4. Application process. An eligible applicant must submit an application
2.24to the commissioner on a form prescribed by the commissioner. The commissioner shall
2.25develop administrative procedures governing the application and grant and loan award
2.26process. The commissioner shall act as fiscal agent for the grant and loan program and
2.27shall be responsible for receiving and reviewing grant and loan applications and awarding
2.28grants and loans under this section.
2.29 Subd. 5. Application contents. An applicant for a grant or loan under this section
2.30shall provide the following information on the application:
2.31(1) the location of the project;
2.32(2) the kind and amount of broadband infrastructure to be purchased for the project;
2.33(3) evidence regarding the unserved nature of the community in which the project is
2.34to be located;
3.1(4) the number of end-users who will have access to broadband service as a result of
3.2the project, or whose broadband service will be upgraded as a result of the project;
3.3(5) significant community institutions that will benefit from the proposed project;
3.4(6) evidence of community support for the project;
3.5(7) the total cost of the project;
3.6(8) sources of funding or in-kind contributions for the project that will supplement
3.7any grant award; and
3.8(9) any additional information requested by the commissioner.
3.9 Subd. 6. Awarding grants and loans. (a) In evaluating applications and awarding
3.10grants and loans under this section, the commissioner shall give priority to applications that:
3.11(1) are constructed in areas identified by the director of the Office of Broadband
3.12Development as unserved;
3.13(2) offer new or substantially upgraded broadband service to important community
3.14institutions, including, but not limited to, libraries, educational institutions, public safety
3.15facilities, and healthcare facilities;
3.16(3) facilitate the use of telemedicine and electronic health records;
3.17(4) serve economically distressed areas of the state, as measured by indices of
3.18unemployment, poverty, or population loss that are significantly greater than the statewide
3.19average;
3.20(5) provide technical support and train residents, businesses, and institutions in the
3.21community served by the project to utilize broadband service;
3.22(6) include a component to actively promote the adoption of the newly available
3.23broadband services in the community;
3.24(7) provide evidence of strong support for the project from citizens, government,
3.25businesses, and institutions in the community;
3.26(8) provide access to broadband service to a greater number of unserved households
3.27and businesses; and
3.28(9) leverage greater amounts of funding for the project from other private and
3.29public sources.
3.30(b) The commissioner shall endeavor to award grants under this section to qualified
3.31applicants in all regions of the state.
3.32 Subd. 7. Limitations. (a) No grant or loan awarded under this section may fund
3.33more than 50 percent of the total cost of a project.
3.34(b) If a project is awarded both a grant and loan under this section, the combined
3.35amount of the grant and loan may not exceed 50 percent of the total cost of a project.
3.36EFFECTIVE DATE.This section is effective the day following final enactment.
4.1 Sec. 3. [116J.396] BORDER-TO-BORDER BROADBAND FUND.
4.2 Subdivision 1. Account established. The border-to-border broadband fund account
4.3is established as a separate account in the state treasury. The commissioner shall credit
4.4to the account appropriations and transfers to the account. Earnings, such as interest,
4.5dividends, and any other earnings arising from assets of the account, must be credited to
4.6the account. Funds remaining in the account at the end of a fiscal year are not canceled
4.7to the general fund, but remain in the account until expended. The commissioner shall
4.8manage the account.
4.9 Subd. 2. Expenditures. Money in the account may be used only:
4.10(1) for grant and loan awards made under section 116J.395, including reasonable
4.11expenses incurred by the Department of Employment and Economic Development to
4.12administer that section; or
4.13(2) to supplement revenues raised by bonds sold by local units of government for
4.14broadband infrastructure development.
4.15 Subd. 3. Appropriation. Money in the account is appropriated to the commissioner
4.16for the purposes of subdivision 2.
4.17EFFECTIVE DATE.This section is effective the day following final enactment.
4.18 Sec. 4. APPROPRIATION.
4.19$100,000,000 is appropriated from the general fund to the commissioner of
4.20employment and economic development to award grants and loans for the development of
4.21broadband infrastructure under Minnesota Statutes, section 116J.395, or to supplement
4.22revenues raised by bonds sold by local units of government for broadband infrastructure
4.23development. This appropriation does not cancel to the general fund but remains available
4.24until expended.
1.3grants for the expansion of broadband service to unserved areas; appropriating
1.4money;proposing coding for new law in Minnesota Statutes, chapter 116J.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [116J.394] DEFINITIONS.
1.7(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
1.8the meanings given them.
1.9(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
1.10subdivision 1, paragraph (b).
1.11(c) "Broadband infrastructure" means networks of deployed telecommunications
1.12equipment and technologies necessary to provide high-speed Internet access and other
1.13advanced telecommunications services for end-users.
1.14(d) "Commissioner" means the commissioner of the Department of Employment and
1.15Economic Development.
1.16(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
1.17final leg connecting the broadband service provider's network to the end-use customer's
1.18on-premises telecommunications equipment.
1.19(f) "Middle-mile infrastructure" means broadband infrastructure that links a
1.20broadband service provider's core network infrastructure to last-mile infrastructure.
1.21(g) "Political subdivision" means any county, city, town, school district, special
1.22district or other political subdivision, or public corporation.
2.1(h) "Unserved areas" means areas of Minnesota in which households or businesses
2.2lack access to broadband service at speeds that meet the state broadband goals of ten to 20
2.3megabits per second download and five to ten megabits per second upload.
2.4 Sec. 2. [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT
2.5GRANT AND LOAN PROGRAM.
2.6 Subdivision 1. Establishment. A grant and loan program is established under the
2.7commissioner of employment and economic development to award grants and loans to
2.8eligible applicants in order to promote the expansion of access to broadband service in
2.9unserved areas of the state.
2.10 Subd. 2. Eligible expenditures. Grants and loans may be awarded under this
2.11section to fund the acquisition and installation of middle-mile and last-mile infrastructure
2.12in unserved areas that support broadband service scalable to speeds of at least 100
2.13megabits per second download and 100 megabits per second upload.
2.14 Subd. 3. Eligible applicants. Eligible applicants for grants and loans awarded
2.15under this section include:
2.16(1) an incorporated business or a partnership;
2.17(2) a political subdivision;
2.18(3) an Indian tribe;
2.19(4) a Minnesota nonprofit organization organized under chapter 317A;
2.20(5) a Minnesota cooperative association organized under chapter 308A or 308B; and
2.21(6) a Minnesota limited liability corporation organized under chapter 322B for the
2.22purpose of expanding broadband access.
2.23 Subd. 4. Application process. An eligible applicant must submit an application
2.24to the commissioner on a form prescribed by the commissioner. The commissioner shall
2.25develop administrative procedures governing the application and grant and loan award
2.26process. The commissioner shall act as fiscal agent for the grant and loan program and
2.27shall be responsible for receiving and reviewing grant and loan applications and awarding
2.28grants and loans under this section.
2.29 Subd. 5. Application contents. An applicant for a grant or loan under this section
2.30shall provide the following information on the application:
2.31(1) the location of the project;
2.32(2) the kind and amount of broadband infrastructure to be purchased for the project;
2.33(3) evidence regarding the unserved nature of the community in which the project is
2.34to be located;
3.1(4) the number of end-users who will have access to broadband service as a result of
3.2the project, or whose broadband service will be upgraded as a result of the project;
3.3(5) significant community institutions that will benefit from the proposed project;
3.4(6) evidence of community support for the project;
3.5(7) the total cost of the project;
3.6(8) sources of funding or in-kind contributions for the project that will supplement
3.7any grant award; and
3.8(9) any additional information requested by the commissioner.
3.9 Subd. 6. Awarding grants and loans. (a) In evaluating applications and awarding
3.10grants and loans under this section, the commissioner shall give priority to applications that:
3.11(1) are constructed in areas identified by the director of the Office of Broadband
3.12Development as unserved;
3.13(2) offer new or substantially upgraded broadband service to important community
3.14institutions, including, but not limited to, libraries, educational institutions, public safety
3.15facilities, and healthcare facilities;
3.16(3) facilitate the use of telemedicine and electronic health records;
3.17(4) serve economically distressed areas of the state, as measured by indices of
3.18unemployment, poverty, or population loss that are significantly greater than the statewide
3.19average;
3.20(5) provide technical support and train residents, businesses, and institutions in the
3.21community served by the project to utilize broadband service;
3.22(6) include a component to actively promote the adoption of the newly available
3.23broadband services in the community;
3.24(7) provide evidence of strong support for the project from citizens, government,
3.25businesses, and institutions in the community;
3.26(8) provide access to broadband service to a greater number of unserved households
3.27and businesses; and
3.28(9) leverage greater amounts of funding for the project from other private and
3.29public sources.
3.30(b) The commissioner shall endeavor to award grants under this section to qualified
3.31applicants in all regions of the state.
3.32 Subd. 7. Limitations. (a) No grant or loan awarded under this section may fund
3.33more than 50 percent of the total cost of a project.
3.34(b) If a project is awarded both a grant and loan under this section, the combined
3.35amount of the grant and loan may not exceed 50 percent of the total cost of a project.
3.36EFFECTIVE DATE.This section is effective the day following final enactment.
4.1 Sec. 3. [116J.396] BORDER-TO-BORDER BROADBAND FUND.
4.2 Subdivision 1. Account established. The border-to-border broadband fund account
4.3is established as a separate account in the state treasury. The commissioner shall credit
4.4to the account appropriations and transfers to the account. Earnings, such as interest,
4.5dividends, and any other earnings arising from assets of the account, must be credited to
4.6the account. Funds remaining in the account at the end of a fiscal year are not canceled
4.7to the general fund, but remain in the account until expended. The commissioner shall
4.8manage the account.
4.9 Subd. 2. Expenditures. Money in the account may be used only:
4.10(1) for grant and loan awards made under section 116J.395, including reasonable
4.11expenses incurred by the Department of Employment and Economic Development to
4.12administer that section; or
4.13(2) to supplement revenues raised by bonds sold by local units of government for
4.14broadband infrastructure development.
4.15 Subd. 3. Appropriation. Money in the account is appropriated to the commissioner
4.16for the purposes of subdivision 2.
4.17EFFECTIVE DATE.This section is effective the day following final enactment.
4.18 Sec. 4. APPROPRIATION.
4.19$100,000,000 is appropriated from the general fund to the commissioner of
4.20employment and economic development to award grants and loans for the development of
4.21broadband infrastructure under Minnesota Statutes, section 116J.395, or to supplement
4.22revenues raised by bonds sold by local units of government for broadband infrastructure
4.23development. This appropriation does not cancel to the general fund but remains available
4.24until expended.
