HF 1900

as introduced - 89th Legislature (2015 - 2016) Posted on 03/25/2015 01:59pm

A bill for an act
relating to telecommunications; authorizing broadband infrastructure
development and bonding; authorizing the state to guarantee debt of local units
of government incurred for broadband infrastructure development; amending
Minnesota Statutes 2014, section 446A.086, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapter 237.

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

Section 1.

new text begin [237.90] BROADBAND INFRASTRUCTURE DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and section 237.91,
the following terms have the meanings given them.
new text end

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

new text begin (c) "Broadband infrastructure" has the meaning given in section 116J.391,
subdivision 1, paragraph (c).
new text end

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

new text begin Subd. 2. new text end

new text begin Broadband public-private partnerships. new text end

new text begin A local unit of government
is authorized to partner or contract with other incorporated organizations, partnerships,
cooperatives, political subdivisions, or Indian tribal governments to offer, deliver, or
enhance broadband service in the territory within its jurisdiction.
new text end

new text begin Subd. 3. new text end

new text begin Local authority; broadband infrastructure bonding. new text end

new text begin (a) Each local
unit of government may by resolution authorize the issuance of bonds to provide funds
for the acquisition or betterment of its broadband infrastructure, or for refunding any
outstanding bonds issued for that purpose.
new text end

new text begin (b) The local unit of government may pledge to the payment of the bonds and
interest, its full faith, credit, and taxing powers, or the proceeds of any designated tax
levies, or the gross or net revenues or charges to be derived from any broadband service
operated by or for the local unit of government, or any combination thereof. Taxes levied
for the payment of the bonds and interest shall not reduce the amounts of other taxes
which the local unit of government is authorized by law to levy.
new text end

new text begin (c) The proceeds of the bonds may be used in part to establish a reserve as further
security for the payment of the principal and interest of the bonds when due.
new text end

new text begin (d) Bonds issued under this section may be sold at public or private sale upon the terms
and conditions the local unit of government determines. Except as otherwise provided, the
bonds shall be issued and sold in accordance with the provisions of chapter 475.
new text end

new text begin (e) No election shall be required to authorize the issuance of the bonds under this
section.
new text end

new text begin Subd. 4. new text end

new text begin General eligibility; state general obligation bond funds. new text end

new text begin 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 finds broadband infrastructure
projects constitute betterments and capital improvements within the meaning of the
Constitution and capital expenditures under generally accepted accounting principles.
new text end

Sec. 2.

Minnesota Statutes 2014, section 446A.086, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) As used in this section, the following terms have
the meanings given.

(b) "Authority" means the Minnesota Public Facilities Authority.

(c) "Commissioner" means the commissioner of management and budget.

(d) "Debt obligation" means:

(1) a general obligation bond or note issued by a county, a bond or note to which the
general obligation of a county is pledged under section 469.034, subdivision 2, or a bond
or note payable from a county lease obligation under section 641.24, to provide funds
for the construction of:

(i) jails;

(ii) correctional facilities;

(iii) law enforcement facilities;

(iv) social services and human services facilities;

(v) solid waste facilities; or

(vi) qualified housing development projects as defined in section 469.034,
subdivision 2; deleted text begin or
deleted text end

(2) a general obligation bond or note issued by a governmental unit to provide funds
for the construction, improvement, or rehabilitation of:

(i) wastewater facilities;

(ii) drinking water facilities;

(iii) storm water facilities; or

(iv) any publicly owned building or infrastructure improvement that has received
partial funding from grants awarded by the commissioner of employment and economic
development related to redevelopment, contaminated site cleanup, bioscience, small cities
development programs, and rural business infrastructure programs, for which bonds are
issued by the authority under section 446A.087 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) a bond issued by a local unit of government under section 237.90.
new text end

(e) "Governmental unit" means a county or a statutory or home rule charter city.