1.1                          A bill for an act 
  1.2             relating to economic development; creating the 
  1.3             broadband infrastructure grant program; authorizing 
  1.4             the issuance of state bonds; appropriating money; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 116J. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [116J.039] [BROADBAND INFRASTRUCTURE GRANT 
  1.9   PROGRAM.] 
  1.10     Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] The 
  1.11  commissioner of the Department of Employment and Economic 
  1.12  Development shall make grants to cities to provide up to 80 
  1.13  percent of the capital costs of public infrastructure necessary 
  1.14  for an eligible broadband development project.  The city 
  1.15  receiving a grant must provide for the remainder of the costs of 
  1.16  the project, either in cash, in kind, or from the private 
  1.17  sector.  In-kind contributions may include the value of the 
  1.18  site, site preparation, and site improvements. 
  1.19     For purposes of this section, "city" means a statutory or 
  1.20  home rule charter city located outside the metropolitan area, as 
  1.21  defined in section 473.121, subdivision 2. 
  1.22     "Public infrastructure" means publicly owned physical 
  1.23  infrastructure necessary to support broadband development 
  1.24  projects, including, but not limited to, fiber optic cable, 
  1.25  coaxial cable, copper wire, conduit, wireless, and transmission 
  1.26  equipment. 
  2.1      The purpose of the grants is to keep or enhance jobs in the 
  2.2   area by making businesses more competitive through the 
  2.3   utilization of broadband services. 
  2.4      Subd. 2.  [ELIGIBLE PROJECTS.] Funds must be provided as 
  2.5   grants to cities to support the construction of broadband 
  2.6   service infrastructure.  The infrastructure must be capable of 
  2.7   transmitting video, voice and data at speeds of at least 256 
  2.8   kilobits per second.  The infrastructure must be used in 
  2.9   partnership with a private service provider. 
  2.10     Subd. 3.  [APPLICATION.] The commissioner must develop 
  2.11  forms and procedures for soliciting and reviewing applications 
  2.12  for grants under this section.  At a minimum, a city must 
  2.13  include in its application a resolution of the city council 
  2.14  certifying that the required local match is available.  The 
  2.15  commissioner must evaluate complete applications for eligible 
  2.16  projects using the following criteria: 
  2.17     (1) the project must be an eligible project as defined 
  2.18  under subdivision 2; 
  2.19     (2) the applicant must have conducted a market analysis to 
  2.20  identify the demand for broadband services; 
  2.21     (3) the applicant must provide evidence that the service is 
  2.22  not currently available in their community; 
  2.23     (4) the applicant must have provided written notice of the 
  2.24  application to incumbent service providers in broadband service 
  2.25  areas adjacent to the proposed new service area with evidence of 
  2.26  the notification included in the application; 
  2.27     (5) the applicant must have demonstrated community efforts 
  2.28  to increase broadband utilization by the business, health care, 
  2.29  educational, and governmental sectors of the applicant 
  2.30  community; 
  2.31     (6) the applicant must have conducted a feasibility study 
  2.32  to demonstrate that the broadband services are economically 
  2.33  viable and self supporting; and 
  2.34     (7) the project will create or maintain full-time jobs. 
  2.35     The determination of whether to make a grant for a site is 
  2.36  within the discretion of the commissioner, subject to this 
  3.1   section.  The commissioner's decisions and application of the 
  3.2   priorities are not subject to judicial review, except for abuse 
  3.3   of discretion. 
  3.4      Subd. 4.  [MAXIMUM GRANT AMOUNT.] A city may receive no 
  3.5   more than a total of $200,000 in grants made under this section 
  3.6   in two consecutive years for one or more projects. 
  3.7      Subd. 5.  [CANCELLATION OF GRANT; RETURN OF GRANT 
  3.8   MONEY.] If after three years from the date of the grant, the 
  3.9   commissioner determines that a project has not proceeded in a 
  3.10  timely manner and is unlikely to be completed, the commissioner 
  3.11  must cancel the grant and require the grantee to return all 
  3.12  grant money awarded for that project. 
  3.13     Subd. 6.  [APPROPRIATION.] Grant money returned to the 
  3.14  commissioner is appropriated to the commissioner to make 
  3.15  additional grants under this section. 
  3.16     Subd. 7.  [PRIORITY.] The commissioner must give a higher 
  3.17  priority to projects that have a local contribution of greater 
  3.18  than 20 percent of the cost of a project. 
  3.19     Sec. 2.  [APPROPRIATION.] 
  3.20     $2,000,000 is appropriated from the bond proceeds fund to 
  3.21  the commissioner of employment and economic development for 
  3.22  purposes of section 1. 
  3.23     Sec. 3.  [BOND SALE.] 
  3.24     To provide the money appropriated in this act from the bond 
  3.25  proceeds fund, the commissioner of finance shall sell and issue 
  3.26  bonds of the state in an amount up to $2,000,000 in the manner, 
  3.27  upon the terms, and with the effect prescribed in Minnesota 
  3.28  Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
  3.29  Constitution, article XI, sections 4 to 7. 
  3.30     Sec. 4.  [EFFECTIVE DATE.] 
  3.31     This act is effective the day following final enactment.