Minnesota House of Representatives reports..

Vang and Noor introduced:

HF. 5152,A bill for an act relating to broadband grants; renaming the Office of Broadband Development to the Office of Broadband Development and Digital Equity; modifying the duties and reporting requirements of the office; expanding the state’s broadband goals; establishing a multifamily dwelling grant program; amending definitions for the purposes of broadband development; appropriating money; amending Minnesota Statutes 2022, sections 13.598, subdivision 13; 116J.39; 116J.391, subdivision 1; 116J.394; 116J.395, subdivisions 6, 8; 116J.397; 237.012, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 116J.

The bill was read for the first time and referred to the Committee on Agriculture Finance and Policy.

I am interested in learning more about this bill. I’ll paste the full bill as introduced below but on a high level, they want to expand Office of Broadband Development grants to include money ($50 million) for multifamily broadband development and add adoption benchmarks to broadband goals. Here’s the full bill:

A bill for an act
relating to broadband grants; renaming the Office of Broadband Development to
the Office of Broadband Development and Digital Equity; modifying the duties
and reporting requirements of the office; expanding the state’s broadband goals;
establishing a multifamily dwelling grant program; amending definitions for the
purposes of broadband development; appropriating money; amending Minnesota
Statutes 2022, sections 13.598, subdivision 13; 116J.39; 116J.391, subdivision 1;
116J.394; 116J.395, subdivisions 6, 8; 116J.397; 237.012, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 116J.

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

Section 1.

Minnesota Statutes 2022, section 13.598, subdivision 13, is amended to read:

Subd. 13.

Office of Broadband Development and Digital Equity; deployment
data.

Disclosure of deployment data provided by a broadband provider to the Office of
Broadband Development and Digital Equity is governed by section 116J.397.

Sec. 2.

Minnesota Statutes 2022, section 116J.39, is amended to read:

116J.39 OFFICE OF BROADBAND DEVELOPMENT AND DIGITAL EQUITY.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) “Broadband” or “broadband service” means any service providing advanced
telecommunications capability and Internet access with transmission speeds that, at a
minimum, meet the Federal Communications Commission definition for broadband.

(c) “Local unit of government” has the meaning given in section 116G.03, subdivision
3.

(d) “Office” means the Office of Broadband Development and Digital Equity established
in subdivision 2, paragraph (a).

Subd. 2.

Office established; purpose.

(a) An Office of Broadband Development and
Digital Equity is established within the Department of Employment and Economic
Development and shall remain in existence until the commissioner certifies that the state
has met the broadband goals established in section 237.012. The director shall be appointed
by the governor and shall serve in the unclassified service. The director must be qualified
by experience and training in broadband. The office may employ staff necessary to carry
out the office’s duties under subdivision 4.

(b) The purpose of the office is to encourage, foster, develop, and improve broadband
access and adoption and related digital inclusion activities needed for digital equity within
the state in order to:

(1) drive job creation, promote innovation, and expand markets for Minnesota businesses;

(2) serve the ongoing and growing needs of Minnesota’s education systems, health care
system, public safety system, industries and businesses, governmental operations, and
citizens; and

(3) improve accessibility for underserved communities and populations.

Subd. 3.

Organization.

The office shall consist of a director of the Office of Broadband
Development and Digital Equity, as well as any staff necessary to carry out the office’s
duties under subdivision 4.

Subd. 4.

Duties.

(a) The office shall have the power and duty to:

(1) serve as the central broadband and digital equity planning body for the state of
Minnesota;

(2) coordinate with state, regional, local, and private entities to develop, to the maximum
extent practicable, a uniform statewide broadband access and usage policy;

(3) develop, recommend, and implement a statewide plan to encourage cost-effective
broadband access, and to make recommendations for increased usage, particularly in rural
and other underserved areas;

(4) coordinate efforts, in consultation and cooperation with the commissioner of
commerce, local units of government, and private entities, to meet the state’s broadband
goals in section 237.012;

(5) develop, coordinate, and implement the state’s broadband infrastructure development
program under section 116J.391;

(6) provide consultation services to local units of government or other project sponsors
in connection with the planning, acquisition, improvement, construction, or development
of any broadband deployment project;

(7) encourage public-private partnerships to increase deployment and adoption of
broadband services and applications, including recommending funding options and possible
incentives to encourage investment in broadband expansion;

(8) monitor the broadband development efforts of other states and nations in areas such
as business, education, public safety, and health;

(9) consult with the commissioner of commerce to monitor broadband-related activities
at the federal level, including regulatory and policy changes and the potential impact on
broadband deployment and sustainability in the state;

(10) serve as an information clearinghouse for federal programs providing financial
assistance to institutions located in rural areas seeking to obtain access to high-speed
broadband service, and use this information as an outreach tool to make institutions located
in rural areas that are unserved or underserved with respect to broadband service aware of
the existence of federal assistance;

(11) provide logistical and administrative support for the Governor’s Broadband Task
Force;

(12) provide an annual report, as required by subdivision 5;

(13) coordinate an ongoing collaborative effort of stakeholders to evaluate and address
security, vulnerability, and redundancy issues in order to ensure the reliability of broadband
networks; and

(14) perform any other activities consistent with the office’s purpose.;

(15) develop, recommend, and implement a statewide digital equity plan that encourages
broadband adoption, computer access, and training related to digital skills and online safety,
focusing on the needs of people who have historically had limited digital opportunity,
including households with limited incomes, people with limited English proficiency, people
who live in multifamily dwellings, and people who are members of a racial or ethnic minority
group; and

(16) develop, coordinate, and implement programs that are necessary to meet the state’s
digital equity goals.

(b) In carrying out its duties under this subdivision, the Office of Broadband Development
and Digital Equity shall have no authority to regulate or compel action on the part of any
provider of broadband service.

Subd. 5.

Reporting.

(a) Beginning January 15, 2014, and each year thereafter, the Office
of Broadband Development and Digital Equity shall report to the legislative committees
with jurisdiction over broadband policy and finance on the office’s activities during the
previous year.

(b) The report shall contain, at a minimum:

(1) an analysis of the current availability and use of broadband, including average
broadband speeds and enrollment, within the state;

(2) information gathered from schools, libraries, hospitals, and public safety facilities
across the state, determining the actual speed and capacity of broadband currently in use
and the need, if any, for increases in speed and capacity to meet current or anticipated needs;

(3) an analysis of incumbent broadband infrastructure within the state and its ability to
spur economic development;

(4) an analysis of the degree to which new, additional, or improved broadband
infrastructure would spur economic development in the state;

(5) a summary of the office’s activities in coordinating broadband infrastructure
development under section 116J.391;

(6) suggested policies, incentives, and legislation designed to accelerate the achievement
of the goals under section 237.012, subdivisions 1 and, 2, and 3;

(7) any proposed legislative and policy initiatives; and

(8) any other information requested by the legislative committees with jurisdiction over
broadband policy and finance, or that the office deems necessary.; and

(9) a summary of the office’s activities in coordinating digital inclusion programs
including broadband adoption, computer distribution, and training related to digital skills
and online safety.

(c) The report may be submitted electronically and is subject to section 3.195, subdivision
1.

Sec. 3.

Minnesota Statutes 2022, section 116J.391, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) “Broadband” or “broadband service” has the meaning given in section 116J.39,
subdivision 1, paragraph (b).

(c) “Broadband conduit” means a conduit, pipe, innerduct, or microduct for fiber optic
or other cables that support broadband and wireless facilities for broadband service.

(d) “Local unit of government” has the meaning given in section 116G.03, subdivision
3.

(e) “Office” means the Office of Broadband Development and Digital Equity established
in section 116J.39.

Sec. 4.

Minnesota Statutes 2022, section 116J.394, is amended to read:

116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to 116J.398, the following terms have the
meanings given them.

(b) “Broadband” or “broadband service” has the meaning given in section 116J.39,
subdivision 1, paragraph (b).

(c) “Broadband infrastructure” means networks of deployed telecommunications
equipment and technologies necessary to provide high-speed Internet access and other
advanced telecommunications services for end users.

(d) “Commissioner” means the commissioner of employment and economic development.

(e) “Last-mile infrastructure” means broadband infrastructure that serves as the final leg
connecting the broadband service provider’s network to the end-use customer’s on-premises
telecommunications equipment.

(f) “Middle-mile infrastructure” means broadband infrastructure that links a broadband
service provider’s core network infrastructure to last-mile infrastructure.

(g) “Political subdivision” means any county, city, town, school district, special district
or other political subdivision, or public corporation.

(h) “Underserved areas” means areas of Minnesota in which households or businesses
lack access to wire-line broadband service at speeds of at least 100 megabits per second
download and at least 20 megabits per second upload.

(i) “Unserved areas” means areas of Minnesota in which households or businesses lack
access to wire-line broadband service, as defined in section 116J.39.

Sec. 5.

Minnesota Statutes 2022, section 116J.395, subdivision 6, is amended to read:

Subd. 6.

Awarding grants.

(a) In evaluating applications and awarding grants, the
commissioner shall give priority to applications that are constructed in areas identified by
the director of the Office of Broadband Development and Digital Equity as unserved.

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

(1) are constructed in areas identified by the director of the Office of Broadband
Development and Digital Equity as underserved;

(2) 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;

(3) facilitate the use of telehealth and electronic health records;

(4) 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;

(5) provide technical support and train residents, businesses, and institutions in the
community served by the project to utilize broadband service;

(6) include a component to actively promote the adoption of the newly available
broadband services in the community;

(7) provide evidence of strong support for the project from citizens, government,
businesses, and institutions in the community;

(8) provide access to broadband service to a greater number of unserved or underserved
households and businesses; or

(9) leverage greater amounts of funding for the project from other private and public
sources.

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

Sec. 6.

Minnesota Statutes 2022, section 116J.395, subdivision 8, is amended to read:

Subd. 8.

Application evaluation report.

By June 30 of each year, the Office of
Broadband Development and Digital Equity shall publish on the Department of Employment
and Economic Development’s website and provide to the chairs and ranking minority
members of the senate and house of representatives committees with primary jurisdiction
over broadband a list of all applications for grants under this section received during the
previous year and, for each application:

(1) the results of any quantitative weighting scheme or scoring system the commissioner
used to award grants or rank the applications;

(2) the grant amount requested; and

(3) the grant amount awarded, if any.

Sec. 7.

[116J.3953] MULTIFAMILY BROADBAND DEVELOPMENT GRANT
PROGRAM.

Subdivision 1.

Establishment.

A grant program is established under the Department of
Employment and Economic Development to award grants to provide broadband services
and digital equity in multifamily housing.

Subd. 2.

Eligible properties.

Properties eligible for receipt of funding under this section
include multifamily residential properties and manufactured home parks.

Subd. 3.

Eligible expenses.

Eligible expenditures of grants awarded under this section
include:

(1) installing Internet and Wi-Fi infrastructure;

(2) providing reduced-cost broadband services;

(3) providing technical assistance to property managers and owners of eligible properties
regarding Internet service options and the installation and management of Internet service
options for residents; and

(4) outreach efforts and digital navigation support for residents to support Internet access
and to meet other technology needs.

Subd. 4.

Program administration.

(a) The commissioner must develop application
materials for the grant program.

(b) The commissioner may only award grants for use on eligible expenses at eligible
properties.

(c) Among comparable proposals for use of grants on expenses described in subdivision
3, clauses (1) and (2), the commissioner must prioritize funding for properties that:

(1) have a substantial share of unserved households; or

(2) are in a location in which the percentage of households below the poverty line is
higher than the national average.

Sec. 8.

Minnesota Statutes 2022, section 116J.397, is amended to read:

116J.397 UPDATED BROADBAND DEPLOYMENT DATA AND MAPS.

(a) Beginning in 2016 and continuing each year thereafter, the Office of Broadband
Development and Digital Equity shall contract with one or more independent organizations
that have extensive experience working with Minnesota broadband providers to:

(1) collect broadband deployment data from Minnesota providers, verify its accuracy
through on-the-ground testing, and create state and county maps available to the public by
April 15, 2017, and each April 15 thereafter, showing the availability of broadband service
at various upload and download speeds throughout Minnesota;

(2) analyze the deployment data collected to help inform future investments in broadband
infrastructure; and

(3) conduct business and residential surveys that measure broadband adoption and use
in the state.

(b) Data provided by a broadband provider under this section is nonpublic data under
section 13.02, subdivision 9. Maps produced under this paragraph are public data under
section 13.03.

Sec. 9.

Minnesota Statutes 2022, section 237.012, is amended by adding a subdivision to
read:

Subd. 4.

State broadband adoption.

It is a state goal that by 2028 and thereafter:

(1) 95 percent of Minnesota households have a home broadband subscription and are
enrolled in an Internet service plan;

(2) 70 percent of eligible Minnesota households receive available Internet service
discounts; and

(3) 95 percent of Minnesota households have access to a personal computer or a
comparable device.

Sec. 10. APPROPRIATION; MULTIFAMILY BROADBAND DEVELOPMENT
GRANT PROGRAM.

$50,000,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of employment and economic development for the multifamily broadband development
grant program under Minnesota Statutes, section 116J.3953.