1.1 	A bill for an act
1.2 	relating to communications; creating a broadband
1.3 	revolving loan fund; authorizing bonds; appropriating
1.4 	money; proposing coding for new law in Minnesota
1.5 	Statutes, chapter 446A.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [446A.086] BROADBAND REVOLVING LOAN FUND.
1.8 		Subdivision 1.Definitions. (a) The definitions in this
1.9 	subdivision apply to this section.
1.10 	(b) "Authority" means the Minnesota Public Facilities
1.11 	Authority.
1.12 	(c) "Broadband" means data telecommunication that is
1.13 	delivered at a minimum speed of 100 megabits per second for
1.14 	residential users and one gigabit per second for business and
1.15 	institutional users.
1.16 	(d) "Commissioner" means the commissioner of employment and
1.17 	economic development.
1.18 	(e) "Governmental unit" means a state agency, home rule
1.19 	charter or statutory city, county, municipal utility, or other
1.20 	governmental subdivision.
1.21 	(f) "Loan" means financial assistance provided for all or
1.22 	part of the cost of a project, including money disbursed in
1.23 	anticipation of reimbursement or repayment, loan guarantees,
1.24 	lines of credit, credit enhancements, equipment financing
1.25 	leases, bond insurance, or other forms of financial assistance.
2.1 		Subd. 2.Purpose. The purpose of the broadband revolving
2.2 	loan fund is to provide loans for local communications
2.3 	infrastructure, including any technology that can deliver
2.4 	broadband to residential and institutional customers.  The
2.5 	technology that delivers broadband includes, but is not limited
2.6 	to, fiber-optic cable, coaxial cable, copper wire, wireless
2.7 	systems, satellite systems, and electrical lines.
2.8 		Subd. 3.Establishment of fund. A broadband revolving
2.9 	loan fund is established to make loans to government units for
2.10 	the purposes described in subdivision 2.
2.11 		Subd. 4.Eligible projects. Loans may be made only for
2.12 	broadband infrastructure projects owned by a governmental unit
2.13 	and approved by the commissioner.  The provision of retail
2.14 	broadband service to residential and institutional customers
2.15 	must be provided by a private entity capable of providing retail
2.16 	broadband services, including voice, video, and data services.
2.17 	The retail broadband service provider must enter into a use
2.18 	agreement with the governmental unit that owns the
2.19 	infrastructure.
2.20 		Subd. 5.Applications. Applicants for loans must submit
2.21 	an application to the authority on forms provided by the
2.22 	authority.  The applicant must provide the following information:
2.23 	(1) the estimated cost of the project and the amount of the
2.24 	loan sought;
2.25 	(2) other possible sources of funding in addition to loans
2.26 	sought from the broadband revolving loan fund;
2.27 	(3) the proposed methods and sources of funds to be used
2.28 	for repayment of loans received;
2.29 	(4) information showing the financial status and ability of
2.30 	the borrower to repay loans;
2.31 	(5) information showing that the demand exists for
2.32 	broadband services; and 
2.33 	(6) information showing the experience of the retail
2.34 	broadband service provider.
2.35 		Subd. 6.Certification of projects. The commissioner
2.36 	shall consider the following information when evaluating
3.1 	projects for funding by the authority:
3.2 	(1) a description of the nature and purpose of the proposed
3.3 	broadband project, including an explanation of the need for the
3.4 	project and the reasons why it is in the public interest;
3.5 	(2) the estimated cost of the project and the amount of
3.6 	loans sought;
3.7 	(3) proposed sources of funding in addition to loans sought
3.8 	from the broadband revolving loan fund;
3.9 	(4) the viability of the technology that will deliver the
3.10 	broadband service; and 
3.11 	(5) the viability of the retail broadband service provider
3.12 	that will provide retail broadband services using the
3.13 	infrastructure.
3.14 		Subd. 7.Loan conditions. When making loans from the
3.15 	broadband revolving loan fund, the authority shall engage in
3.16 	prior consultation with the Department of Commerce.  Loans must:
3.17 	(1) bear interest at or below market rates;
3.18 	(2) have a repayment term not longer than 15 years;
3.19 	(3) be fully amortized no later than 15 years after project
3.20 	completion; and 
3.21 	(4) be subject to repayment of principal and interest
3.22 	beginning not later than three years after the infrastructure
3.23 	financed with a loan has been completed.
3.24 		Subd. 8.Open access. Access to the infrastructure
3.25 	financed in whole or in part by a loan under this section must
3.26 	be nonexclusive to a provider and open to all qualified
3.27 	providers.

3.28 	Sec. 2. BOND AUTHORIZATION.
 3.29 	To provide the money appropriated in this act from the bond
3.30 	proceeds fund, the commissioner of finance shall sell and issue
3.31 	bonds of the state in an amount up to $....... in the manner,
3.32 	upon the terms, and with the effect prescribed by Minnesota
3.33 	Statutes, sections 16A.631 to 16A.675, and by the Minnesota
3.34 	Constitution, article XI, sections 4 to 7.

3.35 	Sec. 3. APPROPRIATION; BROADBAND REVOLVING LOAN FUND.
 3.36 	$....... is appropriated from the bond proceeds fund to the
4.1 	public facilities authority for deposit in the broadband
4.2 	revolving loan fund created by Minnesota Statutes, section
4.3 	446A.086, for the purposes of the fund.