HF 2504

as introduced - 90th Legislature (2017 - 2018) Posted on 03/28/2017 05:08pm

A bill for an act
relating to broadband; modifying the priorities for awarding broadband grants;
transferring money; amending Minnesota Statutes 2016, section 116J.395,
subdivision 6; repealing Minnesota Statutes 2016, section 116J.395, subdivision
5a.

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

Section 1.

Minnesota Statutes 2016, section 116J.395, subdivision 6, is amended to read:

Subd. 6.

Awarding grants.

(a) In evaluating applications and awarding grants, the
commissioner shall give new text begin equal new text end priority to applications that are constructed in areas identified
by the director of the Office of Broadband Development as unserved new text begin or underserved new text end .

(b) In evaluating applications and awarding grants, the commissioner may give priority
to applications that:

(1) deleted text begin are constructed in areas identified by the director of the Office of Broadband
Development as underserved;
deleted text end

deleted text begin (2) deleted text end offer new or substantially upgraded broadband service to important community
institutions including, but not limited to, libraries, educational institutions, public safety
facilities, and healthcare facilities;

deleted text begin (3) deleted text end new text begin (2) new text end facilitate the use of telemedicine and electronic health records;

deleted text begin (4) deleted text end new text begin (3) new text end serve economically distressed areas of the state, as measured by indices of
unemployment, poverty, or population loss that are significantly greater than the statewide
average;

deleted text begin (5) deleted text end new text begin (4) new text end provide technical support and train residents, businesses, and institutions in the
community served by the project to utilize broadband service;

deleted text begin (6) deleted text end new text begin (5) new text end include a component to actively promote the adoption of the newly available
broadband services in the community;

deleted text begin (7) deleted text end new text begin (6) new text end provide evidence of strong support for the project from citizens, government,
businesses, and institutions in the community;

deleted text begin (8) deleted text end new text begin (7) new text end provide access to broadband service to a greater number of unserved or
underserved households and businesses; deleted text begin or
deleted text end

deleted text begin (9) deleted text end new text begin (8) new text end leverage greater amounts of funding for the project from other private and public
sources new text begin ; or
new text end

new text begin (9) supplement but do not supplant or replace financial assistance received from the
Federal Communications Commission's Connect America Fund new text end .

(c) The commissioner shall endeavor to award grants under this section to qualified
applicants in all regions of the state.

Sec. 2. new text begin TRANSFER.
new text end

new text begin $50,000,000 in fiscal year 2018 and $50,000,000 in fiscal year 2019 are transferred from
the general fund to the commissioner of employment and economic development for deposit
in the border-to-border broadband fund account for the purposes of Minnesota Statutes,
section 116J.296, subdivision 2. At least $10,000,000 each fiscal year is reserved for projects
that most promote local economic development.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 116J.395, subdivision 5a, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-4291

116J.395 BORDER-TO-BORDER BROADBAND DEVELOPMENT GRANT PROGRAM.

Subd. 5a.

Challenge process.

(a) Within three days of the close of the grant application process, the office shall publish on its Web site the proposed geographic broadband service area and the proposed broadband service speeds for each application submitted.

(b) An existing broadband service provider in or proximate to the proposed project area may, within 30 days of publication of the information under paragraph (a), submit in writing to the commissioner a challenge to an application. A challenge must contain information demonstrating that:

(1) the provider currently provides or has begun construction to provide broadband service to the proposed project area at speeds equal to or greater than the state speed goal contained in section 237.012, subdivision 1; or

(2) the provider commits to complete construction of broadband infrastructure and provide broadband service in the proposed project area at speeds equal to or greater than the state speed goal contained in section 237.012, subdivision 1, no later than 18 months after the date grant awards are made under this section for the grant cycle under which the application was submitted.

(c) The commissioner must evaluate the information submitted in a provider's challenge under this section, and is prohibited from funding a project if the commissioner determines that the provider's commitment to provide broadband service that meets the requirements of paragraph (b) in the proposed project area is credible.

(d) If the commissioner denies funding to an applicant as a result of a broadband service provider's challenge made under this section, and the broadband service provider does not fulfill the provider's commitment to provide broadband service in the project area, the commissioner is prohibited from denying funding to an applicant as a result of a challenge by the same broadband service provider for the following two grant cycles, unless the commissioner determines that the broadband service provider's failure to fulfill the provider's commitment was the result of factors beyond the broadband service provider's control.