| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to broadband; renaming the Office of Broadband Development to the |
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| 3 | 3 | | 1.3 Office of Broadband Development and Digital Equity; modifying the duties and |
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| 4 | 4 | | 1.4 reporting requirements of the office; expanding the state's broadband goals; |
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| 5 | 5 | | 1.5 establishing a multifamily dwelling grant program; amending definitions for the |
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| 6 | 6 | | 1.6 purposes of broadband development; amending Minnesota Statutes 2024, sections |
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| 7 | 7 | | 1.7 13.598, subdivision 13; 116J.39; 116J.391, subdivision 1; 116J.394; 116J.395, |
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| 8 | 8 | | 1.8 subdivisions 6, 8; 116J.397; 237.012, by adding a subdivision; proposing coding |
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| 9 | 9 | | 1.9 for new law in Minnesota Statutes, chapter 116J. |
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| 10 | 10 | | 1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 11 | 11 | | 1.11 Section 1. Minnesota Statutes 2024, section 13.598, subdivision 13, is amended to read: |
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| 12 | 12 | | 1.12 Subd. 13.Office of Broadband Development and Digital Equity; deployment |
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| 13 | 13 | | 1.13data.Disclosure of deployment data provided by a broadband provider to the Office of |
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| 14 | 14 | | 1.14Broadband Development and Digital Equity is governed by section 116J.397. |
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| 15 | 15 | | 1.15 Sec. 2. Minnesota Statutes 2024, section 116J.39, is amended to read: |
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| 16 | 16 | | 1.16 116J.39 OFFICE OF BROADBAND DEVELOPMENT AND DIGITAL EQUITY. |
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| 17 | 17 | | 1.17 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have |
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| 18 | 18 | | 1.18the meanings given them. |
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| 19 | 19 | | 1.19 (b) "Broadband" or "broadband service" means any service providing advanced |
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| 20 | 20 | | 1.20telecommunications capability and Internet access with transmission speeds that, at a |
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| 21 | 21 | | 1.21minimum, meet the Federal Communications Commission definition for broadband. |
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| 22 | 22 | | 1.22 (c) "Local unit of government" has the meaning given in section 116G.03, subdivision |
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| 23 | 23 | | 1.233. |
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| 24 | 24 | | 1Sec. 2. |
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| 25 | 25 | | REVISOR RSI/LJ 25-0445803/07/25 |
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| 26 | 26 | | State of Minnesota |
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| 27 | 27 | | This Document can be made available |
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| 28 | 28 | | in alternative formats upon request |
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| 29 | 29 | | HOUSE OF REPRESENTATIVES |
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| 30 | 30 | | H. F. No. 2279 |
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| 31 | 31 | | NINETY-FOURTH SESSION |
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| 32 | 32 | | Authored by Vang03/13/2025 |
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| 33 | 33 | | The bill was read for the first time and referred to the Committee on Agriculture Finance and Policy 2.1 (d) "Office" means the Office of Broadband Development and Digital Equity established |
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| 34 | 34 | | 2.2in subdivision 2, paragraph (a). |
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| 35 | 35 | | 2.3 Subd. 2.Office established; purpose.(a) An Office of Broadband Development and |
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| 36 | 36 | | 2.4Digital Equity is established within the Department of Employment and Economic |
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| 37 | 37 | | 2.5Development and shall remain in existence until the commissioner certifies that the state |
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| 38 | 38 | | 2.6has met the broadband goals established in section 237.012. The director shall be appointed |
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| 39 | 39 | | 2.7by the governor and shall serve in the unclassified service. The director must be qualified |
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| 40 | 40 | | 2.8by experience and training in broadband. The office may employ staff necessary to carry |
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| 41 | 41 | | 2.9out the office's duties under subdivision 4. |
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| 42 | 42 | | 2.10 (b) The purpose of the office is to encourage, foster, develop, and improve broadband |
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| 43 | 43 | | 2.11access, broadband adoption, and related digital inclusion activities needed for digital equity |
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| 44 | 44 | | 2.12within the state in order to: |
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| 45 | 45 | | 2.13 (1) drive job creation, promote innovation, and expand markets for Minnesota businesses; |
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| 46 | 46 | | 2.14 (2) serve the ongoing and growing needs of Minnesota's education systems, health care |
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| 47 | 47 | | 2.15system, public safety system, industries and businesses, governmental operations, and |
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| 48 | 48 | | 2.16citizens; and |
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| 49 | 49 | | 2.17 (3) improve accessibility for underserved communities and populations. |
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| 50 | 50 | | 2.18 Subd. 3.Organization.The office shall consist of a director of the Office of Broadband |
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| 51 | 51 | | 2.19Development and Digital Equity, as well as any staff necessary to carry out the office's |
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| 52 | 52 | | 2.20duties under subdivision 4. |
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| 53 | 53 | | 2.21 Subd. 4.Duties.(a) The office shall have the power and duty to: |
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| 54 | 54 | | 2.22 (1) serve as the central broadband and digital equity planning body for the state of |
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| 55 | 55 | | 2.23Minnesota; |
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| 56 | 56 | | 2.24 (2) coordinate with state, regional, local, and private entities to develop, to the maximum |
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| 57 | 57 | | 2.25extent practicable, a uniform statewide broadband access and usage policy; |
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| 58 | 58 | | 2.26 (3) develop, recommend, and implement a statewide plan to encourage cost-effective |
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| 59 | 59 | | 2.27broadband access, and to make recommendations for increased usage, particularly in rural |
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| 60 | 60 | | 2.28and other underserved areas; |
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| 61 | 61 | | 2.29 (4) coordinate efforts, in consultation and cooperation with the commissioner of |
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| 62 | 62 | | 2.30commerce, local units of government, and private entities, to meet the state's broadband |
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| 63 | 63 | | 2.31goals in section 237.012; |
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| 64 | 64 | | 2Sec. 2. |
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| 65 | 65 | | REVISOR RSI/LJ 25-0445803/07/25 3.1 (5) develop, coordinate, and implement the state's broadband infrastructure development |
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| 66 | 66 | | 3.2program under section 116J.391; |
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| 67 | 67 | | 3.3 (6) provide consultation services to local units of government or other project sponsors |
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| 68 | 68 | | 3.4in connection with the planning, acquisition, improvement, construction, or development |
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| 69 | 69 | | 3.5of any broadband deployment project; |
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| 70 | 70 | | 3.6 (7) encourage public-private partnerships to increase deployment and adoption of |
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| 71 | 71 | | 3.7broadband services and applications, including recommending funding options and possible |
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| 72 | 72 | | 3.8incentives to encourage investment in broadband expansion; |
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| 73 | 73 | | 3.9 (8) monitor the broadband development efforts of other states and nations in areas such |
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| 74 | 74 | | 3.10as business, education, public safety, and health; |
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| 75 | 75 | | 3.11 (9) consult with the commissioner of commerce to monitor broadband-related activities |
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| 76 | 76 | | 3.12at the federal level, including regulatory and policy changes and the potential impact on |
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| 77 | 77 | | 3.13broadband deployment and sustainability in the state; |
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| 78 | 78 | | 3.14 (10) serve as an information clearinghouse for federal programs providing financial |
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| 79 | 79 | | 3.15assistance to institutions located in rural areas seeking to obtain access to high-speed |
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| 80 | 80 | | 3.16broadband service, and use this information as an outreach tool to make institutions located |
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| 81 | 81 | | 3.17in rural areas that are unserved or underserved with respect to broadband service aware of |
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| 82 | 82 | | 3.18the existence of federal assistance; |
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| 83 | 83 | | 3.19 (11) provide logistical and administrative support for the Governor's Broadband Task |
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| 84 | 84 | | 3.20Force; |
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| 85 | 85 | | 3.21 (12) provide an annual report, as required by subdivision 5; |
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| 86 | 86 | | 3.22 (13) coordinate an ongoing collaborative effort of stakeholders to evaluate and address |
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| 87 | 87 | | 3.23security, vulnerability, and redundancy issues in order to ensure the reliability of broadband |
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| 88 | 88 | | 3.24networks; and |
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| 89 | 89 | | 3.25 (14) perform any other activities consistent with the office's purpose.; |
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| 90 | 90 | | 3.26 (15) develop, recommend, and implement a statewide digital equity plan that encourages |
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| 91 | 91 | | 3.27broadband adoption, computer access, and training related to digital skills and online safety, |
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| 92 | 92 | | 3.28focusing on the needs of people who have historically had limited digital opportunity, |
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| 93 | 93 | | 3.29including households with limited incomes, people with limited English proficiency, people |
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| 94 | 94 | | 3.30who live in multifamily dwellings, and people who are members of a racial or ethnic minority |
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| 95 | 95 | | 3.31group; and |
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| 96 | 96 | | 3Sec. 2. |
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| 97 | 97 | | REVISOR RSI/LJ 25-0445803/07/25 4.1 (16) develop, coordinate, and implement programs that are necessary to meet the state's |
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| 98 | 98 | | 4.2digital equity goals. |
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| 99 | 99 | | 4.3 (b) In carrying out its duties under this subdivision, the Office of Broadband Development |
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| 100 | 100 | | 4.4and Digital Equity shall have no authority to regulate or compel action on the part of any |
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| 101 | 101 | | 4.5provider of broadband service. |
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| 102 | 102 | | 4.6 Subd. 5.Reporting.(a) Beginning January 15, 2014, and each year thereafter, the Office |
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| 103 | 103 | | 4.7of Broadband Development and Digital Equity shall report to the legislative committees |
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| 104 | 104 | | 4.8with jurisdiction over broadband policy and finance on the office's activities during the |
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| 105 | 105 | | 4.9previous year. |
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| 106 | 106 | | 4.10 (b) The report shall contain, at a minimum: |
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| 107 | 107 | | 4.11 (1) an analysis of the current availability and use of broadband, including average |
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| 108 | 108 | | 4.12broadband speeds and enrollment, within the state; |
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| 109 | 109 | | 4.13 (2) information gathered from schools, libraries, hospitals, and public safety facilities |
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| 110 | 110 | | 4.14across the state, determining the actual speed and capacity of broadband currently in use |
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| 111 | 111 | | 4.15and the need, if any, for increases in speed and capacity to meet current or anticipated needs; |
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| 112 | 112 | | 4.16 (3) an analysis of incumbent broadband infrastructure within the state and its ability to |
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| 113 | 113 | | 4.17spur economic development; |
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| 114 | 114 | | 4.18 (4) an analysis of the degree to which new, additional, or improved broadband |
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| 115 | 115 | | 4.19infrastructure would spur economic development in the state; |
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| 116 | 116 | | 4.20 (5) a summary of the office's activities in coordinating broadband infrastructure |
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| 117 | 117 | | 4.21development under section 116J.391; |
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| 118 | 118 | | 4.22 (6) suggested policies, incentives, and legislation designed to accelerate the achievement |
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| 119 | 119 | | 4.23of the goals under section 237.012, subdivisions 1 and, 2, and 3; |
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| 120 | 120 | | 4.24 (7) any proposed legislative and policy initiatives; and |
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| 121 | 121 | | 4.25 (8) any other information requested by the legislative committees with jurisdiction over |
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| 122 | 122 | | 4.26broadband policy and finance, or that the office deems necessary.; and |
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| 123 | 123 | | 4.27 (9) a summary of the office's activities to coordinate digital inclusion programs, including |
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| 124 | 124 | | 4.28broadband adoption, computer distribution, and training related to digital skills and online |
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| 125 | 125 | | 4.29safety. |
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| 126 | 126 | | 4.30 (c) The report may be submitted electronically and is subject to section 3.195, subdivision |
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| 127 | 127 | | 4.311. |
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| 128 | 128 | | 4Sec. 2. |
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| 129 | 129 | | REVISOR RSI/LJ 25-0445803/07/25 5.1 Sec. 3. Minnesota Statutes 2024, section 116J.391, subdivision 1, is amended to read: |
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| 130 | 130 | | 5.2 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have |
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| 131 | 131 | | 5.3the meanings given them. |
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| 132 | 132 | | 5.4 (b) "Broadband" or "broadband service" has the meaning given in section 116J.39, |
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| 133 | 133 | | 5.5subdivision 1, paragraph (b). |
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| 134 | 134 | | 5.6 (c) "Broadband conduit" means a conduit, pipe, innerduct, or microduct for fiber optic |
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| 135 | 135 | | 5.7or other cables that support broadband and wireless facilities for broadband service. |
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| 136 | 136 | | 5.8 (d) "Local unit of government" has the meaning given in section 116G.03, subdivision |
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| 137 | 137 | | 5.93. |
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| 138 | 138 | | 5.10 (e) "Office" means the Office of Broadband Development and Digital Equity established |
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| 139 | 139 | | 5.11in section 116J.39. |
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| 140 | 140 | | 5.12 Sec. 4. Minnesota Statutes 2024, section 116J.394, is amended to read: |
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| 141 | 141 | | 5.13 116J.394 DEFINITIONS. |
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| 142 | 142 | | 5.14 (a) For the purposes of sections 116J.394 to 116J.398, the following terms have the |
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| 143 | 143 | | 5.15meanings given them. |
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| 144 | 144 | | 5.16 (b) "Broadband" or "broadband service" has the meaning given in section 116J.39, |
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| 145 | 145 | | 5.17subdivision 1, paragraph (b). |
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| 146 | 146 | | 5.18 (c) "Broadband infrastructure" means networks of deployed telecommunications |
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| 147 | 147 | | 5.19equipment and technologies necessary to provide high-speed Internet access and other |
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| 148 | 148 | | 5.20advanced telecommunications services for end users. |
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| 149 | 149 | | 5.21 (d) "Commissioner" means the commissioner of employment and economic development. |
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| 150 | 150 | | 5.22 (e) "Last-mile infrastructure" means broadband infrastructure that serves as the final leg |
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| 151 | 151 | | 5.23connecting the broadband service provider's network to the end-use customer's on-premises |
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| 152 | 152 | | 5.24telecommunications equipment. |
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| 153 | 153 | | 5.25 (f) "Middle-mile infrastructure" means broadband infrastructure that links a broadband |
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| 154 | 154 | | 5.26service provider's core network infrastructure to last-mile infrastructure. |
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| 155 | 155 | | 5.27 (g) "Political subdivision" means any county, city, town, school district, special district |
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| 156 | 156 | | 5.28or other political subdivision, or public corporation. |
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| 157 | 157 | | 5.29 (h) "Underserved areas" means areas of Minnesota in which households or businesses |
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| 158 | 158 | | 5.30lack access to wire-line broadband service at speeds of at least 100 megabits per second |
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| 159 | 159 | | 5.31download and at least 20 megabits per second upload. |
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| 160 | 160 | | 5Sec. 4. |
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| 161 | 161 | | REVISOR RSI/LJ 25-0445803/07/25 6.1 (i) "Unserved areas" means areas of Minnesota in which households or businesses lack |
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| 162 | 162 | | 6.2access to wire-line broadband service, as defined in section 116J.39. |
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| 163 | 163 | | 6.3 Sec. 5. Minnesota Statutes 2024, section 116J.395, subdivision 6, is amended to read: |
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| 164 | 164 | | 6.4 Subd. 6.Awarding grants.(a) In evaluating applications and awarding grants, the |
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| 165 | 165 | | 6.5commissioner shall give priority to applications that are constructed in areas identified by |
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| 166 | 166 | | 6.6the director of the Office of Broadband Development and Digital Equity as unserved. |
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| 167 | 167 | | 6.7 (b) In evaluating applications and awarding grants, the commissioner may give priority |
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| 168 | 168 | | 6.8to applications that: |
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| 169 | 169 | | 6.9 (1) are constructed in areas identified by the director of the Office of Broadband |
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| 170 | 170 | | 6.10Development and Digital Equity as underserved; |
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| 171 | 171 | | 6.11 (2) offer new or substantially upgraded broadband service to important community |
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| 172 | 172 | | 6.12institutions including, but not limited to, libraries, educational institutions, public safety |
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| 173 | 173 | | 6.13facilities, and healthcare facilities; |
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| 174 | 174 | | 6.14 (3) facilitate the use of telehealth and electronic health records; |
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| 175 | 175 | | 6.15 (4) serve economically distressed areas of the state, as measured by indices of |
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| 176 | 176 | | 6.16unemployment, poverty, or population loss that are significantly greater than the statewide |
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| 177 | 177 | | 6.17average; |
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| 178 | 178 | | 6.18 (5) provide technical support and train residents, businesses, and institutions in the |
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| 179 | 179 | | 6.19community served by the project to utilize broadband service; |
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| 180 | 180 | | 6.20 (6) include a component to actively promote the adoption of the newly available |
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| 181 | 181 | | 6.21broadband services in the community; |
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| 182 | 182 | | 6.22 (7) provide evidence of strong support for the project from citizens, government, |
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| 183 | 183 | | 6.23businesses, and institutions in the community; |
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| 184 | 184 | | 6.24 (8) provide access to broadband service to a greater number of unserved or underserved |
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| 185 | 185 | | 6.25households and businesses; |
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| 186 | 186 | | 6.26 (9) leverage greater amounts of funding for the project from other private and public |
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| 187 | 187 | | 6.27sources; or |
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| 188 | 188 | | 6.28 (10) commit to implementation of workforce best practices, meaning all laborers and |
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| 189 | 189 | | 6.29mechanics performing construction, installation, remodeling, or repairs on the project sites |
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| 190 | 190 | | 6.30for which the grant is provided: |
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| 191 | 191 | | 6Sec. 5. |
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| 192 | 192 | | REVISOR RSI/LJ 25-0445803/07/25 7.1 (i) are paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the |
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| 193 | 193 | | 7.2applicant and all of its construction contractors and subcontractors agree that the payment |
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| 194 | 194 | | 7.3of prevailing wage to such laborers and mechanics is subject to the requirements and |
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| 195 | 195 | | 7.4enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and |
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| 196 | 196 | | 7.5177.45, which the commissioner of labor and industry shall have the authority to enforce; |
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| 197 | 197 | | 7.6or |
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| 198 | 198 | | 7.7 (ii) receive from the employer: |
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| 199 | 199 | | 7.8 (A) at least 40 hours of hands-on skills training annually; |
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| 200 | 200 | | 7.9 (B) employer-paid family health insurance coverage; and |
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| 201 | 201 | | 7.10 (C) employer-paid retirement benefit payments equal to no less than 15 percent of the |
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| 202 | 202 | | 7.11employee's total taxable wages. |
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| 203 | 203 | | 7.12 (c) The commissioner shall endeavor to award grants under this section to qualified |
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| 204 | 204 | | 7.13applicants in all regions of the state. |
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| 205 | 205 | | 7.14 (d) The commissioner shall endeavor to award no less than 50 percent of grant awards |
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| 206 | 206 | | 7.15from general fund appropriations for the border-to-border broadband grant program under |
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| 207 | 207 | | 7.16section 116J.396 for applicants that agree to implement the workforce best practices in this |
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| 208 | 208 | | 7.17section. The applicant's agreement to implement the workforce best practices described in |
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| 209 | 209 | | 7.18paragraph (b) must be an express condition of providing the grant in the grant agreement. |
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| 210 | 210 | | 7.19 Sec. 6. Minnesota Statutes 2024, section 116J.395, subdivision 8, is amended to read: |
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| 211 | 211 | | 7.20 Subd. 8.Application evaluation report.By June 30 of each year, the Office of |
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| 212 | 212 | | 7.21Broadband Development and Digital Equity shall publish on the Department of Employment |
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| 213 | 213 | | 7.22and Economic Development's website and provide to the chairs and ranking minority |
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| 214 | 214 | | 7.23members of the senate and house of representatives committees with primary jurisdiction |
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| 215 | 215 | | 7.24over broadband a list of all applications for grants under this section received during the |
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| 216 | 216 | | 7.25previous year and, for each application: |
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| 217 | 217 | | 7.26 (1) the results of any quantitative weighting scheme or scoring system the commissioner |
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| 218 | 218 | | 7.27used to award grants or rank the applications; |
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| 219 | 219 | | 7.28 (2) the grant amount requested; and |
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| 220 | 220 | | 7.29 (3) the grant amount awarded, if any. |
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| 221 | 221 | | 7Sec. 6. |
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| 222 | 222 | | REVISOR RSI/LJ 25-0445803/07/25 8.1 Sec. 7. [116J.3953] MULTIFAMILY BROADBAND DEVELOPMENT GRANT |
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| 223 | 223 | | 8.2PROGRAM. |
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| 224 | 224 | | 8.3 Subdivision 1.Establishment.A grant program is established under the Department of |
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| 225 | 225 | | 8.4Employment and Economic Development to award grants to provide broadband services |
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| 226 | 226 | | 8.5and digital equity in multifamily housing. |
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| 227 | 227 | | 8.6 Subd. 2.Eligible properties.Properties eligible for receipt of funding under this section |
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| 228 | 228 | | 8.7include multifamily residential properties and manufactured home parks. |
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| 229 | 229 | | 8.8 Subd. 3.Eligible expenses.Eligible expenditures of grants awarded under this section |
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| 230 | 230 | | 8.9include: |
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| 231 | 231 | | 8.10 (1) installing Internet and Wi-Fi infrastructure; |
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| 232 | 232 | | 8.11 (2) providing reduced-cost broadband services; |
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| 233 | 233 | | 8.12 (3) providing technical assistance to property managers and owners of eligible properties |
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| 234 | 234 | | 8.13regarding Internet service options and installing and managing Internet service options for |
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| 235 | 235 | | 8.14residents; and |
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| 236 | 236 | | 8.15 (4) outreach efforts and digital navigation support for residents to support Internet access |
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| 237 | 237 | | 8.16and to meet other technology needs. |
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| 238 | 238 | | 8.17 Subd. 4.Program administration.(a) The commissioner must develop application |
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| 239 | 239 | | 8.18materials for the grant program. |
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| 240 | 240 | | 8.19 (b) The commissioner may only award grants for eligible expenses at eligible properties. |
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| 241 | 241 | | 8.20 (c) Among comparable proposals to use grants on expenses described in subdivision 3, |
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| 242 | 242 | | 8.21clauses (1) and (2), the commissioner must prioritize funding for properties that: |
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| 243 | 243 | | 8.22 (1) have a substantial share of unserved households; or |
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| 244 | 244 | | 8.23 (2) are in a location where the percentage of households below the poverty line is higher |
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| 245 | 245 | | 8.24than the national average. |
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| 246 | 246 | | 8.25 Sec. 8. Minnesota Statutes 2024, section 116J.397, is amended to read: |
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| 247 | 247 | | 8.26 116J.397 UPDATED BROADBAND DEPLOYMENT DATA AND MAPS. |
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| 248 | 248 | | 8.27 (a) Beginning in 2016 and continuing each year thereafter, the Office of Broadband |
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| 249 | 249 | | 8.28Development and Digital Equity shall contract with one or more independent organizations |
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| 250 | 250 | | 8.29that have extensive experience working with Minnesota broadband providers to: |
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| 251 | 251 | | 8Sec. 8. |
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| 252 | 252 | | REVISOR RSI/LJ 25-0445803/07/25 9.1 (1) collect broadband deployment data from Minnesota providers, verify its accuracy |
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| 253 | 253 | | 9.2through on-the-ground testing, and create state and county maps available to the public by |
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| 254 | 254 | | 9.3April 15, 2017, and each April 15 thereafter, showing the availability of broadband service |
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| 255 | 255 | | 9.4at various upload and download speeds throughout Minnesota; |
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| 256 | 256 | | 9.5 (2) analyze the deployment data collected to help inform future investments in broadband |
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| 257 | 257 | | 9.6infrastructure; and |
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| 258 | 258 | | 9.7 (3) conduct business and residential surveys that measure broadband adoption and use |
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| 259 | 259 | | 9.8in the state. |
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| 260 | 260 | | 9.9 (b) Data provided by a broadband provider under this section is nonpublic data under |
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| 261 | 261 | | 9.10section 13.02, subdivision 9. Maps produced under this paragraph are public data under |
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| 262 | 262 | | 9.11section 13.03. |
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| 263 | 263 | | 9.12 Sec. 9. Minnesota Statutes 2024, section 237.012, is amended by adding a subdivision to |
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| 264 | 264 | | 9.13read: |
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| 265 | 265 | | 9.14 Subd. 4.State broadband adoption.It is a state goal that by 2028 and thereafter: |
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| 266 | 266 | | 9.15 (1) 95 percent of Minnesota households have a home broadband subscription and are |
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| 267 | 267 | | 9.16enrolled in an Internet service plan; |
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| 268 | 268 | | 9.17 (2) 70 percent of eligible Minnesota households receive available Internet service |
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| 269 | 269 | | 9.18discounts; and |
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| 270 | 270 | | 9.19 (3) 95 percent of Minnesota households have access to a personal computer or a |
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| 271 | 271 | | 9.20comparable device. |
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| 272 | 272 | | 9Sec. 9. |
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| 273 | 273 | | REVISOR RSI/LJ 25-0445803/07/25 |
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