Bill Text: MN HF208 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public school's fiber optic infrastructure grant established and funding provided, bonds issued, and money appropriated.
Sponsorship: Partisan Bill (Democrat 6)
Status: (Introduced - Dead) 2011-02-24 - Author added Hortman [HF208 Detail]
Download: Minnesota-2011-HF208-Introduced.html
1.2relating to capital investment; appropriating money for a public school's fiber
1.3optic infrastructure grant program; establishing the grant program; authorizing
1.4the sale and issuance of state bonds;proposing coding for new law in Minnesota
1.5Statutes, chapter 126C.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [126C.75] FIBER OPTIC INFRASTRUCTURE GRANT PROGRAM.
1.8 Subdivision 1. Creation of accounts. Two public school fiber optic infrastructure
1.9accounts are created, one in the general fund and one in the bond proceeds fund. Money
1.10in these accounts may only be used for capital costs of fiber optic infrastructure for
1.11eligible public school projects.
1.12 Subd. 2. Program purpose. The fiber optic infrastructure grant program is
1.13established to provide the capital investment needed to bridge the gap between the federal
1.14Schools and Libraries Program of the Universal Service Fund, commonly known as
1.15"E-Rate," and the total cost of fiber optic infrastructure that will better public school
1.16buildings to support 21st century learning capacity at each district school.
1.17 Subd. 3. General eligibility; state general obligation bond funds. The Minnesota
1.18Constitution, article XI, section 5, clause (a), requires that state general obligation bonds
1.19be issued to finance only the acquisition or betterment of public land, buildings, and
1.20other public improvements of a capital nature. The legislature has determined that many
1.21fiber optic infrastructure projects will constitute betterments and capital improvements
1.22within the meaning of the Constitution and capital expenditures under generally accepted
1.23accounting principles, and will be financed more efficiently and economically under this
1.24section than by direct appropriations for specific projects.
1.25 Subd. 4. Definitions. For the purposes of this section:
2.1(1) "fiber optic infrastructure" means the land, buildings, fiber optic connection
2.2cable and end point hardware, including routers and switches. Fiber optic infrastructure
2.3does not include computers, telephones, or cameras; and
2.4(2) "school district" means an independent, common, special, or intermediate school
2.5district or a charter school.
2.6 Subd. 5. Grant program established. The commissioner shall make grants to
2.7school districts for fiber optic infrastructure projects.
2.8 Subd. 6. Eligible costs for grants. (a) "Eligible cost," for use of state general
2.9obligation bond fund money, means the acquisition of land or permanent easements;
2.10preparation of land on which the fiber optic infrastructure will be located, including
2.11demolition of structures and remediation of any hazardous conditions on the land; and
2.12predesign, design, acquisition, and installation of publicly owned fiber optic infrastructure
2.13in this state with a useful life of at least ten years that supports public school district
2.14facility operation, administration, and instruction; the unpaid principal on debt issued by
2.15the school district for a fiber optic infrastructure project, or the amount necessary to pay in
2.16a lump sum all lease payments due if payment results in the school district owning the fiber
2.17optic infrastructure. All uses under this paragraph must be for publicly owned property.
2.18(b) Eligible cost for use of any other source of money will be determined by
2.19limitations imposed on that source, but may include the costs of leases and reimbursement
2.20of the costs of purchase and installation of fiber optic infrastructure.
2.21 Subd. 7. Application. The commissioner must develop forms and procedures for
2.22soliciting and reviewing applications for grants under this section. At a minimum, a school
2.23district must include the following information in its application:
2.24(1) a resolution adopted by its school board certifying that the money required to be
2.25supplied by the school district to complete the project is available and committed;
2.26(2) a detailed and specific description of the project and an estimate, along with
2.27necessary supporting evidence, of the total costs for the project;
2.28(3) an assessment of the need for and benefits of the project;
2.29(4) a timeline indicating the major milestones of the project and anticipated
2.30completion dates; and
2.31(5) any additional information or material the commissioner prescribes.
2.32 Subd. 8. Criteria for grants. The commissioner must develop the criteria that will
2.33be used to award grants if grant applications exceed available resources.
2.34 Subd. 9. Cancellation of grant. If, five years after execution of a grant agreement,
2.35the commissioner determines that the grantee has not proceeded in a timely manner with
2.36implementation of the project funded, the commissioner must cancel the grant and the
3.1grantee must repay to the commissioner all grant money paid to the grantee. Section
3.216A.642 applies to any appropriations made to the commissioner under this section that
3.3have not been awarded to grantees.
3.4 Subd. 10. Report. By January 15 of each year, the commissioner must submit to
3.5the commissioner of management and budget and the chairs of the legislative committees
3.6or divisions with jurisdiction over education policy, education finance, and capital
3.7investment, a list of the projects that have been funded with money under this program
3.8during the preceding calendar year, as well as a list of those priority projects for which state
3.9bond proceeds fund appropriations will be sought during that year's legislative session.
3.10EFFECTIVE DATE.This section is effective the day following final enactment.
3.11 Sec. 2. PUBLIC SCHOOLS; FIBER OPTIC INFRASTRUCTURE GRANTS.
3.12 Subdivision 1. Appropriation. $80,000,000 is appropriated from the bond
3.13proceeds fund to the commissioner of education for grants to public school districts under
3.14Minnesota Statutes, section 126C.75.
3.15 Subd. 2. Bond sale. To provide the money appropriated in this section from the
3.16bond proceeds fund, the commissioner of management and budget shall sell and issue
3.17bonds of the state in an amount up to $80,000,000 in the manner, upon the terms, and with
3.18the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
3.19Minnesota Constitution, article XI, sections 4 to 7.
3.20EFFECTIVE DATE.This section is effective the day following final enactment.
1.3optic infrastructure grant program; establishing the grant program; authorizing
1.4the sale and issuance of state bonds;proposing coding for new law in Minnesota
1.5Statutes, chapter 126C.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [126C.75] FIBER OPTIC INFRASTRUCTURE GRANT PROGRAM.
1.8 Subdivision 1. Creation of accounts. Two public school fiber optic infrastructure
1.9accounts are created, one in the general fund and one in the bond proceeds fund. Money
1.10in these accounts may only be used for capital costs of fiber optic infrastructure for
1.11eligible public school projects.
1.12 Subd. 2. Program purpose. The fiber optic infrastructure grant program is
1.13established to provide the capital investment needed to bridge the gap between the federal
1.14Schools and Libraries Program of the Universal Service Fund, commonly known as
1.15"E-Rate," and the total cost of fiber optic infrastructure that will better public school
1.16buildings to support 21st century learning capacity at each district school.
1.17 Subd. 3. General eligibility; state general obligation bond funds. The Minnesota
1.18Constitution, article XI, section 5, clause (a), requires that state general obligation bonds
1.19be issued to finance only the acquisition or betterment of public land, buildings, and
1.20other public improvements of a capital nature. The legislature has determined that many
1.21fiber optic infrastructure projects will constitute betterments and capital improvements
1.22within the meaning of the Constitution and capital expenditures under generally accepted
1.23accounting principles, and will be financed more efficiently and economically under this
1.24section than by direct appropriations for specific projects.
1.25 Subd. 4. Definitions. For the purposes of this section:
2.1(1) "fiber optic infrastructure" means the land, buildings, fiber optic connection
2.2cable and end point hardware, including routers and switches. Fiber optic infrastructure
2.3does not include computers, telephones, or cameras; and
2.4(2) "school district" means an independent, common, special, or intermediate school
2.5district or a charter school.
2.6 Subd. 5. Grant program established. The commissioner shall make grants to
2.7school districts for fiber optic infrastructure projects.
2.8 Subd. 6. Eligible costs for grants. (a) "Eligible cost," for use of state general
2.9obligation bond fund money, means the acquisition of land or permanent easements;
2.10preparation of land on which the fiber optic infrastructure will be located, including
2.11demolition of structures and remediation of any hazardous conditions on the land; and
2.12predesign, design, acquisition, and installation of publicly owned fiber optic infrastructure
2.13in this state with a useful life of at least ten years that supports public school district
2.14facility operation, administration, and instruction; the unpaid principal on debt issued by
2.15the school district for a fiber optic infrastructure project, or the amount necessary to pay in
2.16a lump sum all lease payments due if payment results in the school district owning the fiber
2.17optic infrastructure. All uses under this paragraph must be for publicly owned property.
2.18(b) Eligible cost for use of any other source of money will be determined by
2.19limitations imposed on that source, but may include the costs of leases and reimbursement
2.20of the costs of purchase and installation of fiber optic infrastructure.
2.21 Subd. 7. Application. The commissioner must develop forms and procedures for
2.22soliciting and reviewing applications for grants under this section. At a minimum, a school
2.23district must include the following information in its application:
2.24(1) a resolution adopted by its school board certifying that the money required to be
2.25supplied by the school district to complete the project is available and committed;
2.26(2) a detailed and specific description of the project and an estimate, along with
2.27necessary supporting evidence, of the total costs for the project;
2.28(3) an assessment of the need for and benefits of the project;
2.29(4) a timeline indicating the major milestones of the project and anticipated
2.30completion dates; and
2.31(5) any additional information or material the commissioner prescribes.
2.32 Subd. 8. Criteria for grants. The commissioner must develop the criteria that will
2.33be used to award grants if grant applications exceed available resources.
2.34 Subd. 9. Cancellation of grant. If, five years after execution of a grant agreement,
2.35the commissioner determines that the grantee has not proceeded in a timely manner with
2.36implementation of the project funded, the commissioner must cancel the grant and the
3.1grantee must repay to the commissioner all grant money paid to the grantee. Section
3.216A.642 applies to any appropriations made to the commissioner under this section that
3.3have not been awarded to grantees.
3.4 Subd. 10. Report. By January 15 of each year, the commissioner must submit to
3.5the commissioner of management and budget and the chairs of the legislative committees
3.6or divisions with jurisdiction over education policy, education finance, and capital
3.7investment, a list of the projects that have been funded with money under this program
3.8during the preceding calendar year, as well as a list of those priority projects for which state
3.9bond proceeds fund appropriations will be sought during that year's legislative session.
3.10EFFECTIVE DATE.This section is effective the day following final enactment.
3.11 Sec. 2. PUBLIC SCHOOLS; FIBER OPTIC INFRASTRUCTURE GRANTS.
3.12 Subdivision 1. Appropriation. $80,000,000 is appropriated from the bond
3.13proceeds fund to the commissioner of education for grants to public school districts under
3.14Minnesota Statutes, section 126C.75.
3.15 Subd. 2. Bond sale. To provide the money appropriated in this section from the
3.16bond proceeds fund, the commissioner of management and budget shall sell and issue
3.17bonds of the state in an amount up to $80,000,000 in the manner, upon the terms, and with
3.18the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
3.19Minnesota Constitution, article XI, sections 4 to 7.
3.20EFFECTIVE DATE.This section is effective the day following final enactment.
