Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 2381

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/22/2016 08:03am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/29/2016
1st Engrossment Posted on 03/21/2016

Current Version - 1st Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19
1.20
1.21 1.22 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23
2.24
2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34
3.1
3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20
3.21
3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34
4.1
4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13
4.14 4.15
4.16 4.17 4.18 4.19 4.20
4.21
4.22 4.23 4.24 4.25 4.26 4.27 4.28
4.29
4.30 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17

A bill for an act
relating to telecommunications; modifying the border-to-border broadband grant
program; amending state broadband goals; requiring a report; appropriating
money; amending Minnesota Statutes 2014, sections 116J.391, subdivision 1;
116J.395, subdivisions 4, 5, by adding subdivisions; 237.012, subdivisions 1, 2;
Minnesota Statutes 2015 Supplement, section 116J.394.

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

Section 1.

Minnesota Statutes 2014, section 116J.391, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms
have the meanings given them.

(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
subdivision 1, paragraph (b).

(c) "Broadband conduit" means a conduit, pipe, innerduct, or microduct deleted text begin for fiber
deleted text end deleted text begin optic or other cablesdeleted text end that deleted text begin supportdeleted text end new text begin supportsnew text end broadband and wireless facilities for broadband
service.

(d) "Local unit of government" has the meaning given in section 116G.03,
subdivision 3.

(e) "Office" means the Office of Broadband Development established in section
116J.39.

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.

Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:


116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
the meanings given them.

(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
subdivision 1, paragraph (b).

(c) "Broadband infrastructure" means networks of deployed telecommunications
equipment and technologies necessary to provide high-speed Internet access and other
advanced telecommunications services for end users.

(d) "Commissioner" means the commissioner of employment and economic
development.

(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
final leg connecting the broadband service provider's network to the end-use customer's
on-premises telecommunications equipment.

(f) "Middle-mile infrastructure" means broadband infrastructure that links a
broadband service provider's core network infrastructure to last-mile infrastructure.

(g) "Political subdivision" means any county, city, town, school district, special
district or other political subdivision, or public corporation.

(h) "Underserved areas" means areas of Minnesota in which households or
businesses lack access to wire-line broadband service at speeds that meet the state
broadband goals deleted text begin of ten to 20 megabits per second download and five to ten megabits per
second upload
deleted text end new text begin contained in section 237.012, subdivision 1new text end .

(i) "Unserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband servicedeleted text begin , as defined in section 116J.39deleted text end new text begin at speeds less
than ten megabits per second download and one megabit per second upload
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. 3.

Minnesota Statutes 2014, section 116J.395, subdivision 4, is amended to read:


Subd. 4.

Application process.

new text begin (a) new text end An eligible applicant must submit an application
to the commissioner on a form prescribed by the commissioner. The commissioner shall
develop administrative procedures governing the application and grant award process.
The commissioner shall act as fiscal agent for the grant program and shall be responsible
for receiving and reviewing grant applications and awarding grants under this section.

new text begin (b) At least 30 days prior to the first day applications may be submitted each fiscal
year, the commissioner must publish the specific criteria and any quantitative weighting
scheme or scoring system the commissioner will use to evaluate or rank applications and
award grants under subdivision 6 on the department's Web site.
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. 4.

Minnesota Statutes 2014, section 116J.395, subdivision 5, is amended to read:


Subd. 5.

Application contents.

An applicant for a grant under this section shall
provide the following information on the application:

(1) the location of the project;

(2) the kind and amount of broadband infrastructure to be purchased for the project;

(3) evidence regarding the unserved or underserved nature of the community in
which the project is to be located;

(4) the number of households passed that will have access to broadband service as a
result of the project, or whose broadband service will be upgraded as a result of the project;

(5) significant community institutions that will benefit from the proposed project;

(6) evidence of community support for the project;

(7) the total cost of the project;

(8) sources of funding or in-kind contributions for the project that will supplement
any grant award; deleted text begin and
deleted text end

(9) new text begin the names of each vendor that provided information to the applicant regarding the
scope, cost, or technical aspects of the project; each vendor's experience in constructing
broadband projects; and the ways, if any, in which the proposed project was altered based
on vendor comments; and
new text end

new text begin (10) new text end any additional information requested by the commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Incumbent right of first refusal. new text end

new text begin (a) An applicant shall submit a copy of
its application to all incumbent broadband service providers operating in the geographic
area in which the proposed project is to be located at the same time the application is
submitted to the commissioner.
new text end

new text begin (b) An applicant shall withdraw its application if it receives notice in writing from an
incumbent broadband service provider of the service provider's intention and commitment
to begin construction, within 12 months of the date on which grant awards are to be
made under this section, and to complete construction within 24 months of that date, of a
project to extend or upgrade broadband service to speeds equal to or greater than the state
broadband speed goal contained in section 237.012, subdivision 1, throughout the area in
which the proposed project that is the subject of the application is to be located.
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. 6.

Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Application evaluation report. new text end

new text begin By June 30 of each year, the office
shall place on the Department of Employment and Economic Development's Web
site and provide to the chairs and ranking minority members of the senate and house
of representatives committees with primary jurisdiction over broadband a list of all
applications for grants under this section received during the previous year and, for each
application:
new text end

new text begin (1) the results of any quantitative weighting scheme or scoring system the
commissioner used to award grants or rank the applications;
new text end

new text begin (2) the grant amount requested; and
new text end

new text begin (3) the grant amount awarded, if any.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
The initial report submission required under this section is due June 30, 2016.
new text end

Sec. 7.

Minnesota Statutes 2014, section 237.012, subdivision 1, is amended to read:


Subdivision 1.

Universal access and high-speed goal.

It is a state goal that as soon
as possible, but no later than deleted text begin 2015deleted text end new text begin 2022new text end , all state residents and businesses have access to
high-speed broadband new text begin service new text end that provides minimum download speeds of deleted text begin ten to 20deleted text end new text begin 25new text end
megabits per second and minimum upload speeds of deleted text begin five to tendeleted text end new text begin threenew text end megabits per second.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2014, section 237.012, subdivision 2, is amended to read:


Subd. 2.

State broadband leadership position.

It is a goal of the state that by
deleted text begin 2015deleted text end new text begin 2022new text end and thereafter, the state be in:

(1) the top five states of the United States for broadband speed universally accessible
to residents and businesses;

(2) the top five states for broadband access; and

(3) the top 15 when compared to countries globally for broadband penetration.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9. new text begin APPROPRIATION.
new text end

new text begin (a) $35,000,000 in fiscal year 2017 is appropriated from the general fund to
the commissioner of employment and economic development for deposit in the
border-to-border broadband fund account established in Minnesota Statutes, section
116J.396, for the purposes described in that section.
new text end

new text begin (b) $500,000 of this appropriation must be awarded by the commissioner to projects
that propose to expand the availability and adoption of broadband service to areas that
contain a significant proportion of low-income households. For the purposes of this
paragraph, "low-income households" means households whose household income is less
than or equal to 200 percent of the most recent calculation of the United States federal
poverty guidelines published by the federal Department of Health and Human Services,
adjusted for family size.
new text end

new text begin (c) Of the broadband grant awards made by the commissioner with this
appropriation, the commissioner must award 60 percent of the funds to applicants in
unserved areas and 40 percent to applicants in underserved areas, as the terms are defined
in Minnesota Statutes, section 116J.394. If grant awards are insufficient to fully expend
funds available in either unserved or undeserved areas, the commissioner may expend
unused funds on grants to applicants in areas in which grant awards were fully expended.
new text end