HF 1710

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to communications; creating a broadband
revolving loan fund; proposing coding for new law in
Minnesota Statutes, chapter 446A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [446A.086] BROADBAND REVOLVING LOAN FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this
subdivision apply to this section.
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new text begin (b) "Authority" means the Minnesota Public Facilities
Authority.
new text end

new text begin (c) "Broadband" means data telecommunication that is
delivered at a minimum speed of 100 megabits per second for
residential users and one gigabit per second for business and
institutional users.
new text end

new text begin (d) "Commissioner" means the commissioner of employment and
economic development.
new text end

new text begin (e) "Governmental unit" means a state agency, home rule
charter or statutory city, county, municipal utility, or other
governmental subdivision.
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new text begin (f) "Loan" means financial assistance provided for all or
part of the cost of a project, including money disbursed in
anticipation of reimbursement or repayment, loan guarantees,
lines of credit, credit enhancements, equipment financing
leases, bond insurance, or other forms of financial assistance.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The purpose of the broadband revolving
loan fund is to provide loans for local communications
infrastructure, including any technology that can deliver
broadband to residential and institutional customers. The
technology that delivers broadband includes, but is not limited
to, fiber-optic cable, coaxial cable, copper wire, wireless
systems, satellite systems, and electrical lines.
new text end

new text begin Subd. 3. new text end

new text begin Establishment of fund. new text end

new text begin A broadband revolving
loan fund is established to make loans to government units for
the purposes described in subdivision 2.
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new text begin Subd. 4. new text end

new text begin Eligible projects. new text end

new text begin Loans may be made only for
broadband infrastructure projects owned by a governmental unit
and approved by the commissioner. The provision of retail
broadband service to residential and institutional customers
must be provided by a private entity capable of providing retail
broadband services, including voice, video, and data services.
The retail broadband service provider must enter into a use
agreement with the governmental unit that owns the
infrastructure.
new text end

new text begin Subd. 5. new text end

new text begin Applications. new text end

new text begin Applicants for loans must submit
an application to the authority on forms provided by the
authority. The applicant must provide the following information:
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new text begin (1) the estimated cost of the project and the amount of the
loan sought;
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new text begin (2) other possible sources of funding in addition to loans
sought from the broadband revolving loan fund;
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new text begin (3) the proposed methods and sources of funds to be used
for repayment of loans received;
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new text begin (4) information showing the financial status and ability of
the borrower to repay loans;
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new text begin (5) information showing that the demand exists for
broadband services; and
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new text begin (6) information showing the experience of the retail
broadband service provider.
new text end

new text begin Subd. 6. new text end

new text begin Certification of projects. new text end

new text begin The commissioner
shall consider the following information when evaluating
projects for funding by the authority:
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new text begin (1) a description of the nature and purpose of the proposed
broadband project, including an explanation of the need for the
project and the reasons why it is in the public interest;
new text end

new text begin (2) the estimated cost of the project and the amount of
loans sought;
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new text begin (3) proposed sources of funding in addition to loans sought
from the broadband revolving loan fund;
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new text begin (4) the viability of the technology that will deliver the
broadband service; and
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new text begin (5) the viability of the retail broadband service provider
that will provide retail broadband services using the
infrastructure.
new text end

new text begin Subd. 7. new text end

new text begin Loan conditions. new text end

new text begin When making loans from the
broadband revolving loan fund, the authority shall engage in
prior consultation with the Department of Commerce. Loans must:
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new text begin (1) bear interest at or below market rates;
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new text begin (2) have a repayment term not longer than 15 years;
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new text begin (3) be fully amortized no later than 15 years after project
completion; and
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new text begin (4) be subject to repayment of principal and interest
beginning not later than three years after the infrastructure
financed with a loan has been completed.
new text end

new text begin Subd. 8. new text end

new text begin Open access. new text end

new text begin Access to the infrastructure
financed in whole or in part by a loan under this section must
be nonexclusive to a provider and open to all qualified
providers.
new text end