HF1552

Purpose

• To modify the state’s broadband funding rules for the lower population density grant program, specifically by changing how much of a project’s cost can be covered with grants (the matching funding requirements).

Main provisions

• Amends Minnesota Statutes 2024 section 116J.3952, subdivision 2.
• Grants awarded under this section may fund up to 75% to 90% of the total cost of a project.
• Grants must otherwise adhere to Minnesota Statutes 2024 section 116J.395 subdivisions 1 to 6 and subdivision 7 paragraph b.

What the bill seeks to accomplish

• Increases the portion of project costs that can be funded by grants for broadband projects in areas with lower population density.
• Maintains the overall framework of the lower population density broadband grant program by keeping alignment with the broader 116J.395 provisions.

Significant changes to existing law

• The grant matching percentage under the lower population density broadband program is increased to allow coverage of up to 75% to 90% of total project costs, rather than a lower cap.
• Retains the requirement that these grants follow the existing statutory framework (116J.395 subdivisions 1-6 and subdivision 7 paragraph b).

Potential implications

• More broadband projects in sparsely populated areas may receive state support due to the higher allowable grant share.
• Agencies must still comply with the broader program rules and sections referenced (116J.395).

Notes on terminology

• Key terms from the bill include: broadband, lower population density grant program, grants, total cost, matching requirements, Minnesota Statutes 2024 section 116J.3952 subdivision 2, subdivisions 1 to 6, subdivision 7 paragraph b.

Relevant Terms - broadband - lower population density grant program - grants - total cost - matching requirements - Minnesota Statutes 2024 section 116J.3952 subdivision 2 - 116J.395 subdivisions 1 to 6 - subdivision 7 paragraph b - project cost - state funding