HF 2712

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:32pm

A bill for an act
relating to capital investment; appropriating money for a public schools fiber
optic infrastructure grant program; establishing the grant program; authorizing
the sale and issuance of state bonds; proposing coding for new law in Minnesota
Statutes, chapter 126C.

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

Section 1.

new text begin [126C.75] FIBER OPTIC INFRASTRUCTURE GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of accounts. new text end

new text begin Two public school fiber optic infrastructure
accounts are created, one in the general fund and one in the bond proceeds fund. Money
in these accounts may only be used for capital costs of fiber optic infrastructure for
eligible public school projects.
new text end

new text begin Subd. 2. new text end

new text begin Program purpose. new text end

new text begin The fiber optic infrastructure grant program is
established to provide the capital investment needed to bridge the gap between the federal
Schools and Libraries Program of the Universal Service Fund, commonly known as
"E-Rate," and the total cost of fiber optic infrastructure that will better public school
buildings to support 21st century learning capacity at each district school.
new text end

new text begin Subd. 3. new text end

new text begin General eligibility; state general obligation bond funds. new text end

new text begin Article XI,
section 5, clause (a), of the Constitution requires that state general obligation bonds be
issued to finance only the acquisition or betterment of public land, buildings, and other
public improvements of a capital nature. The legislature has determined that many
fiber optic infrastructure projects will constitute betterments and capital improvements
within the meaning of the Constitution and capital expenditures under generally accepted
accounting principles, and will be financed more efficiently and economically under this
section than by direct appropriations for specific projects.
new text end

new text begin Subd. 4. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section:
new text end

new text begin (1) "School district" means an independent, common, special, or intermediate school
district or a charter school.
new text end

new text begin (2) "Fiber optic infrastructure" means the land, buildings, fiber optic connection
cable and end point hardware, including routers and switches. It does not include
computers, telephones, or cameras.
new text end

new text begin Subd. 5. new text end

new text begin Grant program established. new text end

new text begin The commissioner shall make grants to
school districts for fiber optic infrastructure projects.
new text end

new text begin Subd. 6. new text end

new text begin Eligible costs for grants. new text end

new text begin (a) "Eligible cost" for use of state general
obligation bond fund money means the acquisition of land or permanent easements;
preparation of land on which the fiber optic infrastructure will be located, including
demolition of structures and remediation of any hazardous conditions on the land; and
predesign, design, acquisition, and installation of publicly owned fiber optic infrastructure
in this state with a useful life of at least ten years that supports public school district
facility operation, administration, and instruction; the unpaid principal on debt issued by
the school district for a fiber optic infrastructure project, or the amount necessary to pay in
a lump sum all lease payments due if payment results in the school district owning the fiber
optic infrastructure. All uses under this paragraph must be for publicly owned property.
new text end

new text begin (b) "Eligible cost" for use of any other source of money will be determined by
limitations imposed on that source, but may include the costs of leases and reimbursement
of the costs of purchase and installation of fiber optic infrastructure.
new text end

new text begin Subd. 7. new text end

new text begin Application. new text end

new text begin The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a school
district must include the following information in its application:
new text end

new text begin (1) a resolution adopted by its school board certifying that the money required to be
supplied by the school district to complete the project is available and committed;
new text end

new text begin (2) a detailed and specific description of the project and an estimate, along with
necessary supporting evidence, of the total costs for the project;
new text end

new text begin (3) an assessment of the need for and benefits of the project;
new text end

new text begin (4) a timeline indicating the major milestones of the project and their anticipated
completion dates; and
new text end

new text begin (5) any additional information or material the commissioner prescribes.
new text end

new text begin Subd. 8. new text end

new text begin Criteria for grants. new text end

new text begin The commissioner must develop the criteria that will
be used to award grants if grant applications exceed available resources.
new text end

new text begin Subd. 9. new text end

new text begin Cancellation of grant. new text end

new text begin If, five years after execution of a grant agreement,
the commissioner determines that the grantee has not proceeded in a timely manner with
implementation of the project funded, the commissioner must cancel the grant and the
grantee must repay to the commissioner all grant money paid to the grantee. Section
16A.642 applies to any appropriations made to the commissioner under this section that
have not been awarded to grantees.
new text end

new text begin Subd. 10. new text end

new text begin Report. new text end

new text begin By January 15 of each year, the commissioner must submit to
the commissioner of management and budget and the chairs of the legislative committees
or divisions with jurisdiction over education policy, education finance, and capital
investment, a list of the projects that have been funded with money under this program
during the preceding calendar year, as well as a list of those priority projects for which state
bond proceeds fund appropriations will be sought during that year's legislative session.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin PUBLIC SCHOOLS; FIBER OPTIC INFRASTRUCTURE GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $80,000,000 is appropriated from the bond
proceeds fund to the commissioner of education for grants to public school districts under
Minnesota Statutes, section 126C.75.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the
bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $80,000,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end