1.1                          A bill for an act 
  1.2             relating to telecommunications; providing catalyst 
  1.3             grants for the provision of Internet services; 
  1.4             appropriating money.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CATALYST GRANTS; APPROPRIATION.] 
  1.7      $1,500,000 is appropriated from the general fund for the 
  1.8   biennium ending June 30, 2003, to the commissioner of trade and 
  1.9   economic development for catalyst grants to local governments 
  1.10  and recognized Indian tribal governments to expand Internet 
  1.11  access in areas of rural Minnesota that are otherwise unlikely 
  1.12  to receive access through existing technology.  Catalyst grants 
  1.13  are for expenditures related to providing Internet access to 
  1.14  residences and businesses using either traditional fiber optic 
  1.15  cable or wireless technology.  Eligible expenditures include 
  1.16  equipment and construction costs, and the costs of planning, 
  1.17  engineering, or preliminary design.  The commissioner shall 
  1.18  award catalyst grants according to a competitive grant process 
  1.19  and shall create criteria for the award of grants.  These 
  1.20  criteria shall include a preference for projects that will 
  1.21  provide both business and residential Internet access, provided 
  1.22  that a project is presumed to provide business access only if it 
  1.23  will enable access of at least 512 kilobytes per second.  The 
  1.24  maximum catalyst grant for any project is $250,000 or 25 percent 
  1.25  of the project costs, whichever is less.  This is a one-time 
  2.1   appropriation and is not added to the agency's budget base.