as introduced - 87th Legislature (2011 - 2012) Posted on 01/24/2011 09:56am
A bill for an act
relating to capital investment; appropriating money for a public school's 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:
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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.
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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.
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The Minnesota
Constitution, article XI, section 5, clause (a), 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.
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For the purposes of this section:
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(1) "fiber optic infrastructure" means the land, buildings, fiber optic connection
cable and end point hardware, including routers and switches. Fiber optic infrastructure
does not include computers, telephones, or cameras; and
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(2) "school district" means an independent, common, special, or intermediate school
district or a charter school.
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The commissioner shall make grants to
school districts for fiber optic infrastructure projects.
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(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.
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(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.
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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:
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(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;
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(2) a detailed and specific description of the project and an estimate, along with
necessary supporting evidence, of the total costs for the project;
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(3) an assessment of the need for and benefits of the project;
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(4) a timeline indicating the major milestones of the project and anticipated
completion dates; and
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(5) any additional information or material the commissioner prescribes.
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The commissioner must develop the criteria that will
be used to award grants if grant applications exceed available resources.
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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.
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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.
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This section is effective the day following final enactment.
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$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.
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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.
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This section is effective the day following final enactment.
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