1.1 	A bill for an act
1.2 	relating to broadband; modifying the priorities for awarding broadband grants; 
1.3 	transferring money;amending Minnesota Statutes 2016, section 116J.395, 
1.4 	subdivision 6; repealing Minnesota Statutes 2016, section 116J.395, subdivision 
1.5 	5a.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2016, section 116J.395, subdivision 6, is amended to read:
1.8 		Subd. 6.Awarding grants. (a) In evaluating applications and awarding grants, the 
1.9 	commissioner shall give equal priority to applications that are constructed in areas identified 
1.10 	by the director of the Office of Broadband Development as unserved or underserved.
1.11 	(b) In evaluating applications and awarding grants, the commissioner may give priority 
1.12 	to applications that:
1.13 	(1) ~~are constructed in areas identified by the director of the Office of Broadband~~ 
1.14 	~~Development as underserved;~~
1.15 	~~(2)~~ offer new or substantially upgraded broadband service to important community 
1.16 	institutions including, but not limited to, libraries, educational institutions, public safety 
1.17 	facilities, and healthcare facilities;
1.18 	~~(3)~~ (2) facilitate the use of telemedicine and electronic health records;
1.19 	~~(4)~~ (3) serve economically distressed areas of the state, as measured by indices of 
1.20 	unemployment, poverty, or population loss that are significantly greater than the statewide 
1.21 	average;
2.1 	~~(5)~~ (4) provide technical support and train residents, businesses, and institutions in the 
2.2 	community served by the project to utilize broadband service;
2.3 	~~(6)~~ (5) include a component to actively promote the adoption of the newly available 
2.4 	broadband services in the community;
2.5 	~~(7)~~ (6) provide evidence of strong support for the project from citizens, government, 
2.6 	businesses, and institutions in the community;
2.7 	~~(8)~~ (7) provide access to broadband service to a greater number of unserved or 
2.8 	underserved households and businesses; ~~or~~
2.9 	~~(9)~~ (8) leverage greater amounts of funding for the project from other private and public 
2.10 	sources; or
2.11 	(9) supplement but do not supplant or replace financial assistance received from the 
2.12 	Federal Communications Commission's Connect America Fund.
2.13 	(c) The commissioner shall endeavor to award grants under this section to qualified 
2.14 	applicants in all regions of the state.

2.15 	Sec. 2. TRANSFER.
 2.16 	$50,000,000 in fiscal year 2018 and $50,000,000 in fiscal year 2019 are transferred from 
2.17 	the general fund to the commissioner of employment and economic development for deposit 
2.18 	in the border-to-border broadband fund account for the purposes of Minnesota Statutes, 
2.19 	section 116J.296, subdivision 2. At least $10,000,000 each fiscal year is reserved for projects 
2.20 	that most promote local economic development.

2.21 	Sec. 3.  REPEALER.
 2.22 	Minnesota Statutes 2016, section 116J.395, subdivision 5a, is repealed.

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.