MN House learn smore about HF3679 telecom repairs and municipal networks

The MN House State and Local Government Finance and Policy Committee learned more about HF3679 Telecommunications; prohibited practices added, missed repair appointments credit provided, and municipal and local telecommunications service governing provisions modified. (I wrote about the bill earlier.) It is re-referred to Commerce.

The goal is to add consumer protections and remove barrier for local governments interested in providing broadband services. The bill proposers are working with industry to refine the bill.

Testifying: Daniel Lightfoot from League of MN Cities. They support the removal of barriers to make it more difficult for local governments to provide broadband. We have seen municipal broadband work well.

Testifying: Brent Christensen from MTA. They oppose the bill, which might undermine their existing businesses. Also is provides regulations on only telecom broadband providers – not cable or wireless. It is discriminatory. The State says we are a utility like roads but we are more than an object and we are in a competitive environment. We are working with the bill author on changes that might work for us.

Questions:

How many cities want to become broadband providers?
18 active municipal networks – some work with providers and some take it all on.

Are there any cities that have failed with municipal networks? I don’t know why we’d like folks to do this?
Some cities have had issues – like Monticello, but now they are successful.

Cities don’t have to do this – but for cities where there is no good access it helps them help their constituents.

Are there reporting requirements? I don’t want the government to grow.

Where did the bill come from?
From the Department of Commerce.

Building broadband is risky. I have cable and DSL and I live in Hennepin County. CenturyLink has invested in my community I don’t want three people to decide that my city should get into providing broadband. Why do we want to remove citizen engagement?
We vote for our representatives.

Do we think the city should be able to raise taxes without vote?
Nope

This is like when a city person wanted a municipal golf course. The cities that might want to do this – should have to get 65 percent vote. Businesses have been providing this service. It’s too much exposure for a city. Carver County put in a fiber ring and the partner walked away. Condemnation is a three to two vote.
This law doesn’t mean a city has to become a broadband provider.

Referred to Commerce

EVENT Feb 29: MN House hears HF3679: changes regulations to telecommunications providers and municipal networks

The MN House State and Local Government Finance and Policy committee will hear HF3679 (Kraft) Telecommunications; prohibited practices added, missed repair appointments credit provided, and municipal and local telecommunications service governing provisions modified. (I wrote about the bill earlier.)

More info on the meeting:

Thursday, February 29, 2024 , 8:30 AM

State and Local Government Finance and Policy

Chair: Rep. Ginny Klevorn
Location: Room 10
Agenda:

Pending re-referral HF 3646 (Pinto) Department of Children, Youth, and Families statutory infrastructure created; and statutes moved and copied.
HF 3679 (Kraft) Telecommunications; prohibited practices added, missed repair appointments credit provided, and municipal and local telecommunications service governing provisions modified.
Pending re-referral HF 3987 (Fischer) Transfer of duties from Department of Human Services to Department of Direct Care and Treatment implemented; general executive board duties, powers, rulemaking authority, and administrative service contracting established; and conforming changes made.
HANDOUTS: Handouts MUST BE IN PDF FORMAT and emailed to the committee administrator by 12 p.m. (noon) the business day before the hearing. If you are bringing hard copies, bring 40 copies. Note: submitted written testimony is public and will be included in the official committee record. It may be posted to the committee webpage if received by deadline.
TESTIFYING: Testimony is limited. The number of testifiers and length of time permitted is at the discretion of the chair, and is subject to change. Please plan accordingly. If you would like to testify, please email the committee administrator by 12 p.m. (noon) the business day before the hearing.
DOCUMENTS: Meeting documents may be found on the State and Local Government Finance and Policy webpage.
VIEWING: This hearing may be viewed on the House webcast schedule page. All video events are closed captioned with automatically generated captions.
*Agenda items (including bills) may be added or removed, and/or order may change.
o For further information on accommodations, please visit FAQs for Disability Access or contact the LCC Accessibility Coordinator at accessibility.coordinator@lcc.mn.gov
o If you are having accessibility or usability problems with any Minnesota Legislative website or software, please send your comments to the Accessibility & Usability Comment Form
o To request legislative services for American Sign Language (ASL), Communication Access Realtime Translation (CART) closed captioning services, or live language interpretation services for Hmong, Somali, or Spanish speakers to testify, please contact the Committee Administrator as soon as possible.

Bill introduced MN HF3679: changes regulations to telecommunications providers and municipal networks

Representative Kraft introduces HF2021, a bill related to telecommunications providers and municipal networks to the MN House Commerce Finance and Policy Committee.

Short description:  HF3679 (Kraft) Prohibited practices added, missed repair appointments credit provided, and municipal and local telecommunications service governing provisions modified.

Kraft explains that the bill is about consumer protection and choice, especially in rural Minnesota. Jon Kelly from the Department of Commerce spoke on the bill. Brent Christensen from Minnesota Telecom Alliance testifies against the bill because it impact only his customers, the landline providers.

Questions:

How did we choose $25 for missed appointments?
Determined by telecom unit at Department.

What are safeguards if no one is home?
This is a credit for a specific service – only if provider doesn’t notify customer of cancellation.

What is the customers have a dog or something like that?
We have examples of no-shows up to 8 times.

What about the 2/3 referendum … can we trust a city council to understand the topic to the detriment of the incumbent provider?
Many decisions are made at the city council level – not sure why this would be different.

Referred to Commerce Finance and Policy

Bill as introduced:

A bill for an act
relating to telecommunications; adding certain prohibited practices; providing for
a missed repair appointments credit; modifying provisions governing municipal
and local telecommunications service; amending Minnesota Statutes 2022, sections
237.121; 237.19; 429.021, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 237.

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

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More on Waseca County Broadband History Plans with BevComm

Waseca County News reports on the County Commission meeting I attended last week

After schools and businesses shifted even further online during the pandemic, Waseca County is working to help make connecting easier from border to border.

As a rural county, many Waseca County residents have trouble with the internet. To fix this, county staff worked alongside BevComm and submitted a proposal to Minnesota’s Office of Broadband Development to secure broadband for four local townships.

The Waseca County Board of Commissioners held a work session meeting on Tuesday Feb. 6 to talk to Ann Treacy about their plan for broadband development. Treacy, who joined the meeting via Zoom, is a writer for the Blandin Foundation and writes a lot about broadband in Minnesota.

“We know that the decision makers in the Office of Broadband Development read what Ann posts, and it’s important that we get this story out about what Waseca County is doing,” Steve Kraus said at the work session meeting.

More about the project…

Last year, Kraus and Waseca County worked with internet service provider BevComm and submitted a $6 million proposal to the Office of Broadband Development as part of their broadband grant program. The $6 million would support four Waseca County townships with broadband.

This is the office’s 9th grant round, with Waseca County’s proposal in the 8th round being unsuccessful. While Waseca County is facing stiff competition as many other counties in Minnesota have submitted proposals, Kraus and the county are optimistic for this round.

Willmar City Council approves broadband project in a split vote

West Central Tribune reports

After more than a year of planning and consistent approval by the Willmar City Council, two councilors attempted to delay the project after speaking with a representative from an internet provider. The Willmar City Council in a split 5-2 vote on Monday approved a compromised community outreach and education proposal with Hometown Fiber for the Connect Willmar Initiative, which will construct an open-access broadband network throughout the city.

The approval came after a more than 35-minute discussion and attempts by Councilors Rick Fagerlie and Tom Butterfield to delay the project after they were contacted by a representative from Spectrum, one of the internet providers operating in Willmar.

City staff requested that the council approve up to $85,900 for Hometown Fiber to conduct the outreach and education campaign about the network, but councilors were concerned about approving the full amount before the operations agreement between Hometown Fiber and the city was ready for approval.

Mediacom works with Lakewood Township to deploy Fiber to the Home (St Louis County)

NCTA reports

Extending broadband to rural corners of the U.S. presents a number of challenges, including rugged terrain, difficult economics, and geographic hurdles, just to name a few. Despite these difficulties, America’s broadband providers have been extending their networks to the farthest corners of the country. Many ISPs have been hard at work for years, investing their own money and resources to connect rural communities. Mediacom’s recent network expansion in Minnesota is just one example of these efforts.

In Lakewood Township, Minnesota, a town of about 2,000 people near the shores of Lake Superior, residents and the local government came together with a proposal to Mediacom to extend its nearby network to the sparsely populated corner of Saint Louis County. The ISP was eager to work with such an engaged community and, after assessing the situation, decided to go ahead with extending its network to offer fiber to the home using its own private capital, foregoing an offer from the county to chip in $400k.

A video on all you want to know about the municipal broadband debate

Light Reading recent posted a video that takes a current and deep five on municipal broadband…

In this short video documentary, Light Reading looks into the current state of municipal broadband, why and where it’s helping to close the digital divide, and why certain groups are trying to stop it.

Farmington MN is getting free WiFi in the city parks (Dakota County)

The Minneapolis Star Tribune reports

Most of Farmington’s city parks will have free Wi-Fi once Hiawatha Broadband Communications finishes building its fiber optic network infrastructure across the city, according to Mayor Joshua Hoyt.

Hiawatha Broadband began building the network in April; once it is complete, residents can choose the company as their internet provider. The company plans to bring Wi-Fi access to 20 of the city’s 29 parks by 2025.

The parks were chosen based on factors like foot traffic, size, cost, amenities and frequency of vandalism, said Peter Gilbertson, Farmington’s information technology director.

The city will use about $522,000 in American Rescue Plan Act funds to provide power, poles and security cameras in parks.

Partnering with Hiawatha Broadband “saved the city an incredible amount of money, which will be repurposed to other initiatives,” Gilbertson said.

Iron Range Resources & Rehabilitation funds broadband in Clinton Township (St Louis County)

The IRRR email newsletter reports

Broadband Infrastructure Grant: $1,312,093

Agency Investment $1,312,093 | Total Investment $5,248,373

CTC Communications – Clinton Township: $1,312,093 to expand fiber optic to connect up to 482 unserved and underserved households in Clinton Township and adjacent areas. Construction is planned for the summer of 2025.

 

Sherburne County set to expand broadband in Big Lake Township with Midco

The Sherburne Patriot reports

The Sherburne County Board last week gave its commitment to support a new broadband project.

The company Midco is planning a project that would serve 240 addresses in Big Lake Twp. Midco is applying to the Dept. of Employment and Economic Development (DEED) for a Border to Border grant to fund the project and is asking the county to be a financial partner in the project.

Assistant Administrator Dan Weber told the board that Midco is not seeking new funding from the county, but would like to re-allocate ARPA money that was not used on their last project.

“They had an Orrock project that was approved a few years ago that came in about $35,000 under budget,” said Weber.

Midco wants to use that savings for the Big Lake project.

“They would like to re-allocate $35,000 to that project. And that would only be if DEED awards the Border to Border grant,” he said. “So at his time they are only looking for a commitment letter that we would be willing to partner in that project if necessary.”

The board gave its approval. They also approved an additional $22,473.60 in ARPA spending to cover administration and ARPA audit costs.

Kandiyohi County hears from three possible broadband partners to expand coverage

West Central Tribune reports

More than 1,800 more homes and businesses could obtain access to high-speed broadband internet if three new expansion projects can collect the funding needed to make the project possible.

Mark Boeschen, the chair of the Kandiyohi County and City of Willmar Economic Development Commission Broadband Committee, attended the Nov. 21 meeting of the Kandiyohi County Board . Boeschen requested the board’s support to apply for state Border to Border broadband grant funding, as well as approval to dip into the over $6 million the county has set aside in American Rescue Plan Act funding to help pay for broadband projects.

“We are not asking for any additional funds, just to use the funds available,” Boeschen said.
The first project would cover areas in Lake Andrew, Colfax, Norway Lake, St. Johns and Dovre townships, with approximately 1,292 passes, or properties close enough to connect to the main fiber line. The project would see all of Lake Andrew, Colfax and St. Johns covered.

The estimated cost for the entire project is $16,412,703. The EDC committee is applying for a state grant for 50 percent of the cost, while service provider Federated Telephone Cooperative will contribute 25 percent of the cost. The townships as a whole will put in 10 percent while the county’s American Rescue Plan Act allocation will cover the remaining 15 percent.

The second project would complete broadband coverage of Gennessee, Fahlun and Kandiyohi townships, minus the areas already considered served by the state definition, which is access to broadband speeds of 100 megabits per second download and 20 Mbps upload.

The project would have 494 passes and cost around $4,241,573. The EDC is applying again for 50 percent of the cost from the state program. Vibrant, the service provider, will again provide 25 percent of the cost. However, the county’s American Rescue Plan Act funds will pay for 20 percent of the project, as the townships cover the remaining 5 percent.

The third project discussed at the County Board meeting would complete broadband access to Lake Lillian Township with 87 passes. It would cost around $1,456,074. The state grant ask would be for 75 percent of the cost, due to the low population of the area.

“It meets the requirement of a low-density project, so we can ask for additional funding from the state,” Boeschen said.

Vibrant would put in 13 percent, the county 10 percent with the township paying for the final 2 percent of the cost.

The application deadline for the state grant program is Dec. 7, so the EDC committee is working hard to get all the needed paperwork, including the letters of support from the County Board, completed and in ready to send off.

Minnesota is a model of community development

An international energy portal recognizes Minnesota as a model of community development…

Minnesota has long been recognized for its proactive stance on community development, implementing a variety of programs and initiatives designed to foster growth and improve the quality of life for its residents. The state’s approach is multifaceted, focusing on economic development, housing, infrastructure, and social services to create sustainable communities.

They talk about many of the benefits Minnesota supports the community, including broadband…

Infrastructure is another key area, with the state investing in transportation, broadband, and public facilities. These investments not only improve the daily lives of residents but also attract new businesses and contribute to the overall economic health of communities.

Sherburne County will be looking at broadband

Patriot News reports

The Palmer Township Board met Monday evening and a presentation from Sherburne County’s Planning and Zoning staff highlighted the lengthy agenda. …

Additional priorities in the upcoming months will include an online permitting system, as well as continued progress on the EDA’s strategic plan to include areas such as business retention and expansion, housing and broadband.

Barthel did note that Sherburne is now in the top 10 of Minnesota counties in terms of broadband coverage.

Superior WI City Council makes broadband a public utility

I know it’s not Minnesota, but we can walk to Superior from Duluth, so it’s close enough, plus it seems like a potential precedent starter, WDIO reports

Monday, the Superior City Council approved an ordinance that has made broadband internet a public utility.

This means that they can go through with the construction of their own broadband internet service for their residents to sign up for. Giving them, what the city says, affordable and efficient internet access. …

Having broadband as a public utility was the project’s final step before the could start construction. Now Mayor Paine says that construction can start in the spring.

He says, “we made broadband a utility so that we can begin constructing and actually provide high speed, reliable, and most importantly affordable internet to everybody in the city.”

Residents will be able to choose to be on the city’s internet service when it is completed.

The idea that broadband should be declared a utility is not new. In 2015, I looked at what making broadband a utility would mean to rural Minnesota. In 2021, a Self Finance survey found that 2 out of 3 people thought broadband should be a utility. Just interesting to see it happen at the municipal level.

Pipestone County to invest almost $300,000 in match for potential MN Broadband grant

The Pipestone County Star reports

Pipestone County Commissioners during their Oct. 24 meeting voted to provide $268,822 for a fiber optic internet project Woodstock Communications is planning for the rural area around Hatfield. The funds are contingent upon 75 percent of the total project cost being paid for by a grant.

Woodstock Communications already provides fiber internet access to the northeast part of the county and the cities of Edgerton, Ruthton, Holland and Woodstock. The project in the Hatfield area would provide fiber internet access from state Highway 23 down to the Hatfield area for an estimated cost of $2,150,574. Woodstock Communications General Manager Terry Nelson said an added benefit to the company would be that the project would bring it closer to Pipestone.

“For us that’s a plus,” he said. “We can eventually go in and build out some of the areas around there.”

Nelson said he plans to seek a Minnesota Border-to-Border Broadband Development Grant that could cover up to 75 percent of the cost, which would be $1,612,931. That would leave $537,644, which Nelson said is not feasible for the Ruthton-based company. He asked if the county would consider splitting that amount, which he said would make it feasible. …

The commissioners plan to take the funds from the family services fund that’s left over from when the county operated its own family services, which had $764,251.17 in it as of September.

Applications for Border-to-Border grants are due by Dec. 7 and awards are anticipated to be announced in the winter of 2024, according to the Minnesota Department of Employment and Economic Development. Nelson said that if funds are awarded for the project, construction would probably begin in 2025. Projects need to be complete by June 30, 2026.