1.1.................... moves to amend H.F. No. 389 as follows:
1.2Page 1, after line 25, insert:

1.4    Subdivision 1. Establishment. A broadband development account is established as
1.5a separate account in the special revenue fund in the state treasury. The commissioner of
1.6management and budget shall credit to the account credits and transfers to the account
1.7made by the commissioner of public safety of revenues collected from the surcharge
1.8imposed under section 403.11, subdivision 6. Any earnings arising from account assets
1.9must be credited to the account. Funds remaining in the account at the end of the fiscal
1.10year do not cancel to the general fund, but remain in the account. The commissioner
1.11of commerce shall manage the account.
1.12    Subd. 2. Purpose. The purpose of the account is to fund the broadband development
1.13grant program under section 237.89 to provide financial assistance to broadband providers
1.14to help achieve the state's broadband goals under section 237.012 with respect to access
1.15and speed.
1.16EFFECTIVE DATE.This section is effective the day following final enactment.

1.18    Subdivision 1. Establishment; purpose. A broadband development grant program
1.19is established in the Office of Broadband Development. The purpose of the account is to
1.20establish a grant program to provide financial assistance to broadband providers to help
1.21achieve the state's broadband goals under section 237.012, with respect to access and
1.22speed. The commissioner of commerce shall administer the program.
1.23    Subd. 2. Program requirements. The broadband development grant program
1.24must only award grants to:
1.25    (1) a provider of retail broadband services;
2.1    (2) support the capital cost of equipment and facilities used to provide broadband
2.2Internet access;
2.3    (3) extend a broadband service provider's network to an area that has no broadband
2.4access from any broadband service provider or whose service is below the level of the
2.5state broadband goals in section 237.012, subdivision 1;
2.6    (4) support a level of broadband service that meets or exceeds the minimum upload
2.7and download speeds enumerated in the state broadband goals in section 237.012,
2.8subdivision 1; and
2.9    (5) projects for which state funds are necessary in order to provide broadband
2.10service to unserved and underserved areas.
2.11For the purposes of this section:
2.12    (1) "unserved" means areas of the state without access to broadband services; and
2.13    (2) "underserved" means areas of the state in which the average broadband speed
2.14is below that of the state's broadband speed goals enumerated in section 237.102,
2.15subdivision 1.
2.16    Subd. 3. Application. An applicant must file an application for a grant under this
2.17section with the commissioner of commerce, on a form prescribed by the commissioner.
2.18The application must contain evidence that the proposed use of grant funds meets all the
2.19requirements of subdivision 3, and any other information requested by the commissioner
2.20of commerce.
2.21    Subd. 4. Limitations. No grant award may be made under this section in excess
2.22of $.......
2.23    Subd. 5. Geographic balance. The commissioner of commerce shall endeavor
2.24to equally distribute grant awards under this section to provide broadband service to
2.25unserved and underserved areas located in all parts of the state, as determined by the
2.26Office of Broadband Development.
2.27    Subd. 6. Allocation of funds. (a) If federal funding of at least $150,000 annually is
2.28not awarded to a contractor to continue efforts to collect and verify data from broadband
2.29providers, broadband users, and citizens without broadband service that is used to map
2.30the level of broadband service and service gaps in this state at a detailed geographic
2.31level, prior to awarding any competitive grant to broadband providers under this section,
2.32the commissioner of commerce must award a grant to a contractor to perform those
2.33data collection and mapping activities in an amount that is sufficient to insure that the
2.34contractor has $150,000 annually to complete those tasks.
2.35    (b) After any award made under paragraph (a), the funds remaining in the broadband
2.36development account must be allocated as follows:
3.1    (1) at least 25 percent of remaining funds in the account must be used to expand
3.2broadband service on a wireless platform to areas of Minnesota in which wireless
3.3broadband service is unavailable;
3.4    (2) during the first two years of the grant program, grants may only be awarded to
3.5establish or upgrade broadband service in unserved areas and areas in which average
3.6download speeds are below three megabits per second and average upload speeds are
3.7below 768 kilobits per second.

3.8    Sec. 5. APPROPRIATION.
3.9    $....... is annually appropriated from the broadband development account established
3.10under section 237.88 to the commissioner of commerce for the purposes of section 237.89.
3.11EFFECTIVE DATE.This section is effective the day following final enactment."
3.12Page 2, lines 25 and 26, delete "telephone" and insert "telecommunications"
3.13Page 5, line 19, delete "data" and insert "information"
3.14Page 6, line 9, before the period, insert "; SURCHARGE"
3.15Page 6, lines 12 and 16, delete "6" and insert "7"
3.16Page 7, delete subdivision 3 and insert:
3.17    "Subd. 3. Department of Revenue provisions. The audit, assessment, appeal,
3.18collection, refund, penalty, interest, enforcement, and administrative provisions of
3.19chapters 270C and 289A that are applicable to the taxes imposed by chapter 297A apply
3.20to any fee imposed under section 403.161."
3.21Page 7, after line 18, insert:
3.22    "Subd. 8. Surcharge. Beginning July 1, 2013, a surcharge of four cents per retail
3.23transaction is added to the fee imposed under this section. The surcharge must be assessed
3.24and collected in the same manner as the fee imposed under this section, but section
3.25403.162, subdivision 2, and subdivision 5, paragraph (b), do not apply to the surcharge.
3.26The commissioner must deposit receipts of the surcharge in the state treasury and credit
3.27them to the broadband development account in the special revenue fund established under
3.28section 237.88."
3.29Renumber the sections in sequence and correct the internal references
3.30Amend the title accordingly