HF 2472 (LSB 5359HZ (2) 85)

HOUSE FILE 2472

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 2329)
(SUCCESSOR TO HSB 515)

A BILL FOR

An Act relating to and providing for the facilitation of broadband access in unserved or underserved areas of the state, including income and property tax incentives for broadband infrastructure installation, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

LEGISLATIVE INTENT
    Section 1.  SHORT TITLE.  This Act shall be known and may be cited as the “Connect Every Iowan Act”.
    Sec. 2.  LEGISLATIVE INTENT.  The general assembly finds and declares that increasing the extent and availability of broadband infrastructure throughout the state facilitates the provision of internet access to citizens, businesses, and communities at speeds that promote economic development, employment, enhanced access to goods and services, increased educational and training opportunities, faster access to government services and health care, and improved overall information and community access.

DIVISION II

STATEWIDE BROADBAND COORDINATION 
    Sec. 3.  Section 8B.1, Code 2014, is amended by adding the following new subsections:
   NEW SUBSECTION.  01.  “Broadband” means a high-speed, high-capacity electronic transmission medium that can carry data signals from multiple independent network sources by establishing different bandwidth channels and that is commonly used to deliver internet services to the public.
   NEW SUBSECTION.  001.  “Broadband infrastructure” means the physical infrastructure used for the transmission of data via broadband, including but not limited to any equipment, systems, switches, routers, wire, cable, satellite, conduits, servers, software, technology, base transceiver station sites, or other means of transmission or communication. “Broadband infrastructure” does not include land, buildings, structures, improvements, or equipment not directly used in the transmission of data.
   NEW SUBSECTION.  0001.  “Communications service provider” means a service provider that provides broadband service.
   NEW SUBSECTION.  00001.  “Crop operation” means the same as defined in section 717A.1.
    Sec. 4.  Section 8B.1, subsection 1, Code 2014, is amended to read as follows:
   1.  “Information technology” means computing and electronics applications used to process and distribute information in digital and other forms and includes information technology devices, information technology services, infrastructure services, broadband and broadband infrastructure, and value-added services.
    Sec. 5.  Section 8B.1, Code 2014, is amended by adding the following new subsections:
   NEW SUBSECTION.  7A.  “Targeted underserved service area” means a United States census bureau census block located in this state, including any crop operation located within the census block, within which no communications service provider offers or facilitates broadband service at or above twenty-five megabits per second of download speed and three megabits per second of upload speed.
   NEW SUBSECTION.  7B.  “Targeted unserved service area” means a United States census bureau census block located in this state, including any crop operation located within the census block, within which no communications service provider offers or facilitates broadband service at or above four megabits per second of download speed and one megabit per second of upload speed.
    Sec. 6.  Section 8B.3, subsection 1, Code 2014, is amended to read as follows:
   1.  The office is created for the purpose of leading, directing, managing, coordinating, and providing accountability for the information technology resources of state government and for coordinating statewide broadband availability and access. 
    Sec. 7.  Section 8B.4, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  14A.  Streamline, consolidate, and coordinate the access to and availability of broadband and broadband infrastructure throughout the state, including but not limited to the facilitation of public-private partnerships, ensuring that all state agencies’ broadband and broadband infrastructure policies and procedures are aligned, promoting accountability regarding broadband and broadband infrastructure availability and access, integrating broadband with cyber security standards and rules, resolving issues which arise with regard to implementation efforts, collecting data and developing metrics or standards against which the data may be measured and evaluated regarding broadband infrastructure installation and deployment, and identifying options regarding the creation of standing resources for stakeholders such as a fiberoptic database or a fiberoptic network conduit installation coordination effort for state-funded construction projects.
    Sec. 8.  Section 8B.9, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  An annual report regarding the status of broadband expansion and coordination.
    Sec. 9.  NEW SECTION.  8B.10  Targeted unserved and underserved service areas —— determination —— criteria —— subdivision.
   1.  The determination of whether a communications service provider offers or facilitates broadband service meeting the download or upload speeds specified in the definitions of targeted underserved service area and targeted unserved service area in section 8B.1 shall be determined or ascertained by reference to broadband availability maps or data sources that are widely accepted for accuracy and available for public review and comment and that are identified by the office by rule.
   2.  The office shall establish procedures to allow challenges to claims that an area meets the definition of a targeted unserved service area or targeted underserved service area.
   3.  Service areas that have more than one communications service provider shall be subdivided based on incumbent local telephone exchange areas that have been established by the utilities board of the utilities division of the department of commerce pursuant to section 476.29.
    Sec. 10.  NEW SECTION.  8B.25  Broadband permitting process —— expeditious response.

   Notwithstanding any other provision to the contrary, a political subdivision vested with permitting authority shall approve, approve with modification, or disapprove nonwireless broadband-related permits within sixty business days following the submission of a permit application and fee. In the event that no action is taken during the sixty-day period, the application shall be deemed approved.
    Sec. 11.  Section 8D.3, subsection 2, paragraph a, Code 2014, is amended to read as follows:
   a.  The commission is composed of the chief information officer appointed pursuant to section 8B.2 or the chief information officer’s designee and five other members who shall be appointed by the governor and subject to confirmation by the senate. Members Appointed members of the commission shall not serve in any manner or be employed by an authorized user of the network or by an entity seeking to do or doing business with the network.
   (1)  The governor shall appoint a member as the chairperson of the commission from the five members appointed by the governor, subject to confirmation by the senate.
   (2)  Members Appointed members of the commission shall serve six-year staggered terms as designated by the governor and appointments to the commission are subject to the requirements of sections 69.16, 69.16A, and 69.19. Vacancies shall be filled by the governor for the duration of the unexpired term.
   (3)  The salary of the appointed members of the commission shall be twelve thousand dollars per year, except that the salary of the chairperson shall be seventeen thousand dollars per year. Members Appointed members of the commission shall also be reimbursed for all actual and necessary expenses incurred in the performance of duties as members. The benefits and salary paid to the appointed members of the commission shall be adjusted annually equal to the average of the annual pay adjustments, expense reimbursements, and related benefits provided under collective bargaining agreements negotiated pursuant to chapter 20.
    Sec. 12.  Section 8D.3, subsection 2, paragraph b, Code 2014, is amended to read as follows:
   b.  In addition to the members appointed by the governor, the The auditor of state or the auditor’s designee shall serve as a nonvoting, ex officio member of the commission.
    Sec. 13.  Section 8D.4, Code 2014, is amended to read as follows:
   8D.4  Executive director appointed.

   The commission, in consultation with the director of the department of administrative services and the chief information officer, shall appoint an executive director of the commission, subject to confirmation by the senate. Such individual shall not serve as a member of the commission. The executive director shall serve at the pleasure of the commission. The executive director shall be selected primarily for administrative ability and knowledge in the field, without regard to political affiliation. The governor shall establish the salary of the executive director within range nine as established by the general assembly. The salary and support of the executive director shall be paid from funds deposited in the Iowa communications network fund.
    Sec. 14.  Section 80.28, subsection 2, Code 2014, is amended to read as follows:
   2.  The board shall consist of fifteen seventeen voting members, as follows:
   a.  The following members representing state agencies:
   (1)  One member representing the department of public safety.
   (2)  One member representing the state department of transportation.
   (3)  One member representing the department of homeland security and emergency management.
   (4)  One member representing the department of corrections.
   (5)  One member representing the department of natural resources.
   (6)  One member representing the Iowa department of public health.
   (7)  One member representing the office of the chief information officer.
   b.  The governor shall solicit and consider recommendations from professional or volunteer organizations in appointing the following members:
   (1)  Two members who are representatives from municipal police departments.
   (2)  Two members who are representatives of sheriff’s offices.
   (3)  Two members who are representatives from fire departments. One of the members shall be a volunteer fire fighter and the other member shall be a paid fire fighter.
   (4)  Two members who are law communication center managers employed by state or local government agencies.
   (05)  One member who is an emergency medical care provider as defined in section 147A.1.
   (5)  One at-large member.

DIVISION III

INCOME TAX INCENTIVES
    Sec. 15.  Section 422.7, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  57.  a.  If adjusted gross income includes a depreciation deduction under section 167 of the Internal Revenue Code for broadband infrastructure placed in service on or after July 1, 2014, in a targeted unserved service area or a targeted underserved service area, the taxpayer may elect to claim an accelerated depreciation deduction on such broadband infrastructure in computing net income for state tax purposes. If the taxpayer does elect to claim an accelerated depreciation deduction, the following adjustments shall be made:
   (1)  Add the total amount of depreciation taken for federal tax purposes on the broadband infrastructure for the tax year using the modified accelerated cost recovery system depreciation method applicable under section 168 of the Internal Revenue Code.
   (2)  Subtract an amount equal to the product of the amount of depreciation taken for federal tax purposes on the broadband infrastructure for the tax year using the modified accelerated cost recovery system depreciation method applicable under section 168 of the Internal Revenue Code multiplied by two, not to exceed the adjusted basis of the broadband infrastructure for state tax purposes.
   (3)  Any other adjustments to basis or gains or losses to reflect the adjustments made in subparagraphs (1) and (2) pursuant to rules adopted by the director.
   b.  An election made under this subsection is irrevocable and applies to the broadband infrastructure for which the election is made for the tax year of the election and for each succeeding tax year.
   c.  For purposes of this subsection, “broadband infrastructure”, “targeted unserved service area”, and “targeted underserved service area” mean the same as defined in section 8B.1.
    Sec. 16.  NEW SECTION.  422.11C  Broadband infrastructure tax credit.
   1.  For purposes of this section, “broadband infrastructure”, “communications service provider”, “targeted unserved service area”, and “targeted underserved service area” mean the same as defined in section 8B.1.
   2.  The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by a broadband infrastructure tax credit. The credit shall be equal to seven percent of the amount expended by a communications service provider for a new installation of broadband infrastructure completed on or after July 1, 2014, in a targeted unserved service area, and three and one-half percent of the amount expended by a communications service provider for a new installation of broadband infrastructure completed on or after July 1, 2014, in a targeted underserved service area. The amount of a reduction pursuant to this section shall not exceed a maximum of five hundred thousand dollars per United States census bureau census block, or three million dollars per installation. A taxpayer claiming a credit under this section shall certify prior to commencement of the installation that the broadband infrastructure installation will take place within targeted unserved service areas or targeted underserved service areas. Any credit in excess of the tax liability for the tax year shall not be refunded, but may be credited to the tax liability for the following ten tax years or until depleted, whichever is earlier. 
   3.  An individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of a partnership, limited liability company, S corporation, estate, or trust.
   4.  The director of revenue may adopt rules pursuant to chapter 17A for the interpretation and proper administration of the credit provided in this section.
    Sec. 17.  Section 422.33, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  31.  The taxes imposed under this division shall be reduced by a broadband infrastructure tax credit allowed under section 422.11C.
    Sec. 18.  Section 422.35, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  26.  a.  If taxable income includes a depreciation deduction under section 167 of the Internal Revenue Code for broadband infrastructure placed in service on or after July 1, 2014, in a targeted unserved service area or a targeted underserved service area, the taxpayer may elect to claim an accelerated depreciation deduction on such broadband infrastructure in computing net income for state tax purposes. If the taxpayer does elect to claim an accelerated depreciation deduction, the following adjustments shall be made:
   (1)  Add the total amount of depreciation taken for federal tax purposes on the broadband infrastructure for the tax year using the modified accelerated cost recovery system depreciation method applicable under section 168 of the Internal Revenue Code.
   (2)  Subtract an amount equal to the product of the amount of depreciation taken for federal tax purposes on the broadband infrastructure for the tax year using the modified accelerated cost recovery system depreciation method applicable under section 168 of the Internal Revenue Code multiplied by two, not to exceed the adjusted basis of the broadband infrastructure for state tax purposes.
   (3)  Any other adjustments to basis or gains or losses to reflect the adjustments made in subparagraphs (1) and (2) pursuant to rules adopted by the director.
   b.  An election made under this subsection is irrevocable and applies to the broadband infrastructure for which the election is made for the tax year of the election and for each succeeding tax year.
   c.  For purposes of this subsection, “broadband infrastructure”, “targeted unserved service area”, and “targeted underserved service area” mean the same as defined in section 8B.1.
    Sec. 19.  RETROACTIVE APPLICABILITY.  This division of this Act applies retroactively to January 1, 2014, for tax years beginning on or after that date.

DIVISION IV

PROPERTY TAX INCENTIVES AND ASSESSMENT
    Sec. 20.  Section 427.1, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  40.  Broadband infrastructure.
   a.  Broadband infrastructure shall be entitled to an exemption from taxation to the extent provided in this section based upon the actual value added by broadband infrastructure that is newly installed and completed. For the purposes of this subsection, “broadband infrastructure”, “targeted unserved service area”, and “targeted underserved service area” mean the same as defined in section 8B.1. 
   b.  The exemption shall apply to the new installation of broadband infrastructure completed on or after July 1, 2014, in a targeted unserved service area or a targeted underserved service area. A person claiming an exemption under this subsection shall certify prior to commencement of the installation that the broadband installation will take place within a targeted unserved service area or a targeted underserved service area.
   c.  If the broadband infrastructure is assessed with other property as a unit by the department of revenue pursuant to sections 428.24 through 428.29 or chapter 433, this exemption shall be limited to the value added by the broadband infrastructure as determined as of the assessment date and the exemption shall be applied prior to any other exemption applicable to the unit value.
   d.  The tax exemption shall be a one hundred percent exemption from taxation on the actual value added by the improvements for a period of ten years.
   e.  (1)  A person may submit a proposal to the governing body of the city or county within which a broadband infrastructure installation project is proposed to receive prior approval for eligibility for a tax exemption for the project pursuant to this section. The governing body shall, by resolution, give its prior approval if the project is in conformance with the requirements of this subsection. Such prior approval shall not entitle the owner to exemption from taxation until the improvements have been completed and found to be qualified real estate. However, if the proposal is not approved, the person may submit an amended proposal for the governing body to approve or reject.
   (2)  The application for an exemption shall be filed by the owner of the property with the governing body of the city or county in which the property is located by February 1 of the assessment year for which the exemption is first claimed, but not later than the year in which the value added pursuant to the project is first assessed for taxation, or the following two assessment years, in which case the exemption is allowed for the total number of years in the exemption schedule. However, upon the request of the owner at any time, the governing body of the city or county may provide by resolution that the owner may file an application by February 1 of any other assessment year selected by the governing body in which case the exemption is allowed for the number of years remaining in the exemption schedule selected. The application shall contain but not be limited to the following information:
   (a)  The nature of the improvement.
   (b)  The estimated cost of the improvement.
   (c)  The estimated or actual date of project completion.
   (d)  Certification that the installation was completed in a targeted unserved service area or a targeted underserved service area.
   (3)  The governing body of the city or county shall forward for review all approved applications to the appropriate local assessor by March 1 annually. The assessor shall proceed to determine the actual value of the newly installed broadband infrastructure and shall certify the valuation determined to the county auditor at the time of transmitting the assessment rolls. After the tax exemption is granted, the local assessor shall continue to grant the tax exemption for the remainder of the time period in the exemption schedule, and applications for exemption for succeeding years shall not be required.
   f.  The director of revenue may adopt rules pursuant to chapter 17A for the interpretation and proper administration of the exemption provided in this subsection.
    Sec. 21.  Section 433.4, subsection 1, Code 2014, is amended to read as follows:
   1.  a.  The director of revenue shall on or before October 31 each year, proceed to find the actual value of the property of these companies in this state that is used by the companies in the transaction of telegraph and telephone business, taking into consideration the information obtained from the statements required, and any further information the director can obtain, using the same as a means for determining the actual value of the property of these companies within this state. The director shall also take into consideration the valuation of all property of these companies, including franchises and the use of the property in connection with lines outside the state, and making these deductions as may be necessary on account of extra value of property outside the state as compared with the value of property in the state, in order that the actual value of the property of the company within this state may be ascertained. The assessment shall include all property of every kind and character whatsoever, real, personal, or mixed, used by the companies in the transaction of telegraph and telephone business. The property so included in the assessment shall not be taxed in any other manner than as provided in this chapter.
   b.  (1)  A telephone and telegraph company that has property situated in a majority of the counties in the state and that has a total actual value for the assessment years beginning January 1, 2013, and January 1, 2014, of seven hundred eighty million dollars shall, in lieu of other valuation methodologies, be valued as a unit according to the cost of acquiring or constructing at current prices a property that is the functional equivalent of an existing property less an allowance for depreciation for a period of ten consecutive assessment years beginning January 1, 2015.
   (2)  The actual value of the property of a company determined under this paragraph “b” shall not be construed to be the actual value that would, but for this paragraph “b”, be determined by the director under this chapter and shall not be construed to reflect the market value of the property of a telephone and telegraph company that is valued under this paragraph “b”.

DIVISION V

UNIFORM CELL SITING
    Sec. 22.  NEW SECTION.  8C.1  Short title.

   This chapter shall be known and may be cited as the “Iowa Cell Siting Act”.
    Sec. 23.  NEW SECTION.  8C.2  Legislative intent.

   The general assembly finds and declares that it is the policy of this state to facilitate the provision of broadband and other advanced wireless communication services across the entirety of the state; and that it is further the policy to promote access to broadband and advanced wireless communication services for all residents, students, government agencies, and businesses to ensure the availability of world-class educational opportunities, economic development, and public safety services throughout the state.
    Sec. 24.  NEW SECTION.  8C.3  Definitions.

   For the purposes of this chapter, unless the context otherwise requires:

   1.  “Accessory equipment” means any equipment serving or being used in conjunction with a wireless facility or wireless support structure, including but not limited to power supplies, generators, batteries, cables, equipment, buildings, cabinets, storage sheds, shelters, and similar structures.
   2.  “Antenna” means communications equipment that transmits and receives electromagnetic radio signals used in the provision of all types of wireless communications services.
   3.  “Applicant” means any person engaged in the business of providing wireless communications services or the wireless communications infrastructure required for wireless communications services who submits an application.
   4.  “Application” means a request submitted by an applicant to an authority to construct a new wireless support structure, for the substantial modification of a wireless support structure, or for collocation of wireless facilities on an existing structure.
   5.  “Authority” means a state, county, or municipal governing body, board, agency, office, or commission authorized by law to make legislative, quasi-judicial, or administrative decisions relative to the construction, installation, modification, or siting of wireless facilities or wireless support structures. “Authority” does not include state courts having jurisdiction over land use, planning, or zoning decisions made by an authority or the utilities division of the department of commerce.
   6.  “Base station” means a station at a specific site authorized to communicate with mobile stations, generally consisting of radio transceivers, antennas, coaxial cables, power supplies, and other associated electronics.
   7.  “Building permit” means a permit issued by an authority prior to the collocation of wireless facilities on an existing structure, the substantial modification of a wireless support structure, or the commencement of construction of any new wireless support structure, solely to ensure that the work to be performed by the applicant satisfies the applicable building code.
   8.  “Collocation” means the placement or installation of wireless facilities on existing structures, without the need to construct a new wireless support structure. “Collocation” includes the placement, replacement, or modification of wireless facilities within a previously approved equipment compound.
   9.  “Electric utility” means an owner or operator of an electric transmission or distribution facility subject to the safety jurisdiction of the utilities board of the utilities division of the department of commerce.
   10.  “Equipment compound” means an area surrounding or near the base of a wireless support structure within which is located wireless facilities.
   11.  “Existing structure” means a structure that exists at the time a request for permission to place wireless facilities on a structure is filed with an authority, including any structure that is capable of supporting the attachment of wireless facilities in compliance with applicable building codes, including but not limited to towers, buildings, and water towers, but not including utility poles.
   12.  “Substantial modification” means the mounting of a proposed wireless facility on a wireless support structure which results in one or more of the following:
   a.  Increasing the existing vertical height of the structure by more than ten percent, or the height of one additional antenna array with separation from the nearest existing antenna not to exceed twenty feet, whichever is greater.
   b.  Adding an appurtenance to the body of a wireless support structure that protrudes horizontally from the edge of the wireless support structure more than twenty feet, or more than the width of the wireless support structure at the level of the appurtenance, whichever is greater, except where necessary to shelter the antenna from inclement weather or to connect the antenna to the wireless support structure via cable.
   c.  Increasing the square footage of the existing equipment compound by more than two thousand five hundred square feet.
   13.  “Utility pole” means a structure owned or operated by a public utility or municipality that is designed specifically for and used to carry lines, cables, or wires for telephony, cable television, or electricity, or to provide lighting. For the purposes of this section, “public utility” includes an electric utility.
   14.  “Water tower” means a water storage tank, or a standpipe or an elevated tank situated on a support structure, originally constructed for use as a reservoir or facility to store or deliver water.
   15.  “Wireless facility” means the set of equipment and network components, exclusive of the underlying wireless support structure, including but not limited to antennas, accessory equipment, transmitters, receivers, base stations, power supplies, cabling, and associated equipment, necessary to provide wireless communications services. 
   16.  “Wireless support structure” means a structure designed to support wireless facilities, including but not limited to monopoles, towers, or other freestanding facilities. “Wireless support structure” does not include utility poles.
    Sec. 25.  NEW SECTION.  8C.4  Uniform rules and limitations —— all applications.

   In order to ensure uniformity across this state with respect to the consideration of every application, and notwithstanding any other provision to the contrary, an authority shall not do any of the following:

   1.  Require an applicant to submit information about, or evaluate an applicant’s business decisions with respect to, the applicant’s designed service, customer demand for service, or quality of the applicant’s service to or from a particular area or site.
   2.  Evaluate an application based on the availability of other potential locations for the placement of wireless support structures or wireless facilities, including without limitation the option to collocate instead of constructing a new wireless support structure, or for substantial modification of a wireless support structure.
   3.  Dictate the type of wireless facilities, infrastructure, or technology to be used by the applicant or require an applicant to construct a distributed antenna system in lieu of construction of a new wireless support structure, substantial modification of a wireless support structure, or collocation.
   4.  Require the removal of existing wireless support structures or wireless facilities, wherever located, as a condition to approval of an application.
   5.  Impose environmental testing, sampling, or monitoring requirements, or other compliance measures for radio frequency emissions on wireless facilities that are categorically excluded under the federal communication commission’s rules for radio frequency emissions pursuant to 47 C.F.R. §1.1307(b)(1).
   6.  Establish or enforce regulations or procedures for radio frequency signal strength or the adequacy of service quality.
   7.  Reject an application, in whole or in part, based on perceived or alleged environmental effects of radio frequency emissions, as provided in 47 U.S.C. §332(c)(7)(B)(iv).
   8.  Prohibit the placement of emergency power systems that comply with federal and state environmental requirements.
   9.  Charge an application fee, consulting fee, or other fee associated with the submission, review, processing, or approval of an application that is not required for similar types of commercial development within the authority’s jurisdiction. Fees imposed by an authority or by a third-party entity providing review or technical consultation to the authority shall be based on actual, direct, and reasonable administrative costs incurred for the review, processing, and approval of an application. In no case shall total charges and fees exceed five hundred dollars for a collocation application or three thousand dollars for an application for a new wireless support structure or for a substantial modification of a wireless support structure. An authority or any third-party entity shall not include within its charges any travel expenses incurred in the review of an application, and an applicant shall not be required to pay or reimburse an authority for consultant or other third-party fees based on a contingency or result-based arrangement.
   10.  Impose surety requirements, including bonds, escrow deposits, letters of credit, or any other type of financial surety, to ensure that abandoned or unused facilities can be removed unless the authority imposes similar requirements on other applicants for other types of commercial development or land uses. If surety requirements are imposed, the requirements must be competitively neutral, nondiscriminatory, reasonable in amount, and commensurate with the historical record for local facilities and structures that are abandoned.
   11.  Condition the approval of an application on the applicant’s agreement to provide space on or near the wireless support structure for authority or local governmental services at less than the market rate for such space or to provide other services via the structure or facilities at less than the market rate for such services.
   12.  Limit the duration of the approval of an application.
   13.  Discriminate on the basis of the ownership, including ownership by the authority, of any property, structure, or tower when promulgating rules or procedures for siting wireless facilities or for evaluating applications.
    Sec. 26.  NEW SECTION.  8C.5  Uniform rules —— new wireless support structure applications.
   1.  An authority may exercise zoning, land use, planning, and permitting authority within the authority’s territorial boundaries with regard to the siting of a new wireless support structure, subject to the provisions of this chapter and federal law. 
   2.  An applicant that proposes to construct a new wireless support structure within the jurisdiction of an authority that has adopted planning and zoning regulations shall submit the necessary copies and attachments of the application to the appropriate authority and comply with applicable local ordinances concerning land use and the appropriate permitting processes.
   3.  All records, including but not limited to documents and electronic data, in the possession or custody of authority personnel shall be subject to applicable open records provisions of chapter 22.
   4.  An authority, within ninety calendar days of receiving an application to construct a new wireless support structure, unless another date is specified in a written agreement between the authority and the applicant, shall comply with the following provisions:
   a.  Review the application for conformity with applicable local zoning regulations, building permit requirements, and consistency with this chapter. An application is deemed to be complete unless the authority notifies the applicant in writing, within thirty calendar days of submission of the application, of the specific deficiencies in the application which, if cured, would make the application complete. Upon receipt of a timely written notice that an application is deficient, an applicant may take thirty calendar days from receiving such notice to cure the specific deficiencies. If the applicant cures the deficiencies within thirty calendar days, the application shall be reviewed and processed within ninety calendar days from the initial date the application was received. If the applicant requires a period of time beyond thirty calendar days to cure the specific deficiencies, the deadline for review and processing of the application shall be extended by the same period of time.
   b.  Make its final decision to approve or disapprove the application.
   c.  Advise the applicant in writing of its final decision.
   5.  If the authority fails to act on an application to construct a new wireless support structure within the review period specified under subsection 4, the application shall be deemed approved.
   6.  A party aggrieved by the final action of an authority, either by its affirmative disapproval of an application under the provisions of this section or by its inaction, may bring an action for review in any court of competent jurisdiction.
    Sec. 27.  NEW SECTION.  8C.6  Uniform rules —— substantial modification of wireless support structure applications. 
   1.  An authority may exercise zoning, land use, planning, and permitting authority within the authority’s territorial boundaries with regard to an application for substantial modification of a wireless support structure, subject to the provisions of this chapter and federal law.
   2.  An applicant that proposes a substantial modification of a wireless support structure within the jurisdiction of an authority that has adopted planning and zoning regulations shall submit the necessary copies and attachments of the application to the appropriate authority and comply with applicable local ordinances concerning land use and the appropriate permitting processes.
   3.  All records, including but not limited to documents and electronic data, in the possession or custody of authority personnel shall be subject to applicable open records provisions of chapter 22.
   4.  An authority, within forty-five calendar days of receiving an application for a substantial modification of a wireless support structure, unless another date is specified in a written agreement between the authority and the applicant, shall comply with the following provisions:
   a.  Review the application for conformity with applicable local zoning regulations, building permit requirements, and consistency with this chapter. An application is deemed to be complete unless the authority notifies the applicant in writing, within fifteen calendar days of submission of the application, of the specific deficiencies in the application which, if cured, would make the application complete. Upon receipt of a timely written notice that an application is deficient, an applicant may take fifteen calendar days from receiving such notice to cure the specific deficiencies. If the applicant cures the deficiencies within fifteen calendar days, the application shall be reviewed and processed within forty-five calendar days from the initial date the application was received. If the applicant requires a period of time beyond fifteen calendar days to cure the specific deficiencies, the deadline for review and processing of the application shall be extended by the same period of time.
   b.  Make its final decision to approve or disapprove the application.
   c.  Advise the applicant in writing of its final decision.
   5.  If the authority fails to act on an application for a substantial modification within the review period specified under subsection 4, the application for a substantial modification shall be deemed approved.
   6.  A party aggrieved by the final action of an authority, either by its affirmative disapproval of an application under the provisions of this section or by its inaction, may bring an action for review in any court of competent jurisdiction.
    Sec. 28.  NEW SECTION.  8C.7  Uniform rules —— collocation applications.
   1.  A collocation application shall be reviewed for conformance with applicable building permit requirements but shall not otherwise be subject to zoning or land use requirements, including design or placement requirements, or public hearing review, notwithstanding any other provision to the contrary.
   2.  An authority, within forty-five calendar days of receiving a collocation application, unless another date is specified in a written agreement between the authority and the applicant, shall comply with the following provisions:
   a.  Review the collocation application for conformity with applicable building permit requirements and consistency with this chapter. A collocation application is deemed to be complete unless the authority notifies the applicant in writing, within fifteen calendar days of submission of the collocation application, of the specific deficiencies in the collocation application which, if cured, would make the collocation application complete. Upon receipt of a timely written notice that a collocation application is deficient, an applicant may take fifteen calendar days from receiving such notice to cure the specific deficiencies. If the applicant cures the deficiencies within fifteen calendar days, the collocation application shall be reviewed and processed within forty-five calendar days from the initial date the collocation application was received. If the applicant requires a period of time beyond fifteen calendar days to cure the specific deficiencies, the deadline for review and processing of the application shall be extended by the same period of time.
   b.  Make its final decision to approve or disapprove the collocation application.
   c.  Advise the applicant in writing of its final decision.
   3.  If the authority fails to act on a collocation application within the review period specified in subsection 2, the collocation application shall be deemed approved.
   4.  Notwithstanding any provision to the contrary, an authority shall not mandate, require, or regulate the installation, location, or use of a wireless facility on a utility pole.
   5.  A party aggrieved by the final action of an authority, either by its affirmative disapproval of an application under the provisions of this section or by its inaction, may bring an action for review in any court of competent jurisdiction.
    Sec. 29.  NEW SECTION.  8C.8  Airport airspace safety.

   Nothing in this chapter shall be interpreted to prohibit an airport, aviation authority, or municipality from acting pursuant to the provisions of chapter 329.
    Sec. 30.  NEW SECTION.  8C.9  Prohibition on moratoria.

   An authority shall not institute a moratorium on the permitting, construction, or issuance of approval of new wireless support structures unless the moratorium is instituted for ninety days or less and the action or actions establishing the moratorium state reasonable ground and good cause for the moratorium. An authority shall not institute more than two such moratoria in a five-year period.
    Sec. 31.  NEW SECTION.  8C.10  Severability.

   If any provision of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to that end the provisions of this chapter are declared to be severable.

DIVISION VI

STEM INTERNSHIPS
    Sec. 32.  Section 15.411, subsection 3, Code 2014, is amended to read as follows:
   3.  a.  The authority shall establish and administer an innovative businesses internship program with two components for Iowa students. For purposes of this subsection, “Iowa student” means a student of an Iowa community college, private college, or institution of higher learning under the control of the state board of regents, or a student who graduated from high school in Iowa but now attends an institution of higher learning outside the state of Iowa.
   b.  The purpose of the first component of the program is to link Iowa students to small and medium sized Iowa firms through internship opportunities. An Iowa employer may receive financial assistance in an amount of one dollar for every two dollars paid by the employer to an intern. The amount of financial assistance shall not exceed three thousand one hundred dollars for any single internship, or nine thousand three hundred dollars for any single employer. In order to be eligible to receive financial assistance under this subsection paragraph, the employer must have five hundred or fewer employees and must be an innovative business. The authority shall encourage youth who reside in economically distressed areas, youth adjudicated to have committed a delinquent act, and youth transitioning out of foster care to participate in the first component of the internship program.
   c.  (1)  The purpose of the second component of the program is to assist in placing Iowa students studying in the fields of science, technology, engineering, and mathematics into internships that lead to permanent positions with Iowa employers. The authority shall collaborate with eligible employers, including but not limited to innovative businesses, to ensure that the interns hired are studying in such fields. An Iowa employer may receive financial assistance in an amount of one dollar for every dollar paid by the employer to an intern. The amount of financial assistance shall not exceed five thousand dollars per internship. The authority may adopt rules to administer this component.
   (2)  The requirement to administer this component of the internship program is contingent upon the provision of funding for such purposes by the general assembly.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to and provides for the facilitation of broadband access in targeted unserved or underserved service areas of the state. The bill is titled the “Connect Every Iowan Act”.
   DIVISION I —— LEGISLATIVE INTENT. The bill provides that the general assembly finds and declares that increasing the extent and availability of broadband infrastructure throughout the state facilitates the provision of internet access to citizens, businesses, and communities at speeds that promote economic development, employment, enhanced access to goods and services, increased educational and training opportunities, faster access to government services and health care, and improved overall information and community access for citizens.
   DIVISION II —— STATEWIDE BROADBAND COORDINATION. The bill modifies provisions in Code chapter 8B, relating to the office of the chief information officer. The bill adds several definitions to the Code chapter for use in the Code chapter and in other related provisions. The bill defines “broadband” to mean a high-speed, high-capacity electronic transmission medium that can carry data signals from multiple independent network sources by establishing different bandwidth channels and that is commonly used to deliver internet services to the public. The bill defines “broadband infrastructure” to mean the physical infrastructure used for the transmission of data via broadband, including but not limited to any equipment, systems, switches, routers, wire, cable, satellite, conduits, servers, software, technology, base transceiver station sites, or other means of transmission or communication. The bill defines “communications service provider” to mean a service provider that provides broadband service. The bill defines “targeted underserved service area” to mean a United States census bureau census block located in Iowa, including any crop operation located within the census block, within which no communications service provider offers or facilitates broadband service at or above 25 megabits per second of download speed and 3 megabits per second of upload speed. The bill defines “targeted unserved service area” to mean a United States census bureau census block located in Iowa, including any crop operation located within the census block, within which no communications service provider offers or facilitates broadband service at or above 4 megabits per second of download speed and 1 megabit per second of upload speed. The bill defines “crop operation” by referencing a definition contained in Code section 717A.1 as meaning a commercial enterprise where a crop is maintained on the property of the commercial enterprise. Additionally, the bill adds broadband and broadband infrastructure to an existing definition of “information technology”.
   The bill adds to the powers and duties of the chief information officer streamlining, consolidating, and coordinating access to and availability of broadband and broadband infrastructure throughout Iowa. This responsibility includes but is not limited to facilitating public-private partnerships, ensuring that state agencies’ broadband and broadband infrastructure policies and procedures are aligned, promoting accountability, integrating broadband with cyber security standards and rules, resolving issues, collecting data and developing metrics or standards, and identifying options regarding the creation of standing broadband-related resources for stakeholders.
   The bill provides that the determination of whether a provider’s download and upload speeds are being met for purposes of the definitions of “targeted unserved service area” and “targeted underserved service area” shall be by reference to broadband availability maps or data sources identified by the office by rule. The bill directs the office to establish procedures to handle challenges to claims that the threshold download or upload speeds are being met, and provides that service areas with more than one communications service provider shall be subdivided.
   Additionally, the bill specifies expeditious response requirements regarding the approval, modification, or disapproval of nonwireless broadband-related permits. The bill provides that, notwithstanding any other provision to the contrary, a political subdivision vested with permitting authority shall approve, approve with modification, or disapprove nonwireless broadband-related permits within 60 business days following the submission of a permit application and fee. In the event that no action is taken during the 60-day period, the application shall be deemed approved.
   The bill also requires the chief information officer to prepare an annual report regarding the status of broadband expansion and coordination, and adds the chief information officer to the Iowa technology and telecommunications commission which oversees the operation of the Iowa communications network and to the statewide interoperable communications system board established in Code section 80.28. Further, the bill adds an additional member to the board who is an emergency medical care provider, and deletes a provision that required the commission to consult with the director of the department of administrative services and the chief information officer when appointing the commission’s executive director.
   DIVISION III —— INCOME TAX INCENTIVES. The bill provides two income tax incentives for the installation of broadband infrastructure. The first incentive authorizes a taxpayer to elect to claim an accelerated depreciation deduction on broadband infrastructure placed in service on or after July 1, 2014, in a targeted unserved service area or a targeted underserved service area with regard to both individual and corporate taxation. The second incentive permits an individual and corporate income tax credit equal to 7 percent of the amount expended by a communications service provider for a new installation of broadband infrastructure completed on or after July 1, 2014, in a targeted unserved service area, and 3.5 percent of the amount expended in an underserved service area, with credit not to exceed a maximum of $500,000 per census block or $3 million per installation.
   DIVISION IV —— PROPERTY TAX INCENTIVES AND ASSESSMENT.  The bill provides a property tax exemption for broadband infrastructure newly installed within a targeted unserved or underserved service area on or after July 1, 2014. The exemption shall be a 100 percent exemption from taxation on the actual value added by the broadband infrastructure improvements for a period of 10 years. The bill specifies procedures relating to applying for and receiving prior approval for eligibility for the tax exemption from the governing body of the city or county within which the broadband infrastructure installation is proposed, and granting of the tax exemption.
   The bill additionally provides that a telephone and telegraph company with property in a majority of Iowa counties and a total actual value for the assessment years beginning January 1, 2013, and January 1, 2014, of $780 million shall be valued as a unit according to the cost of acquiring or constructing at current prices a property that is the functional equivalent of an existing property less an allowance for depreciation for a period of 10 consecutive assessment years beginning January 1, 2015, in lieu of other valuation methodologies.
   DIVISION V —— UNIFORM CELL SITING. The bill contains a uniform cell siting division consisting of three primary components.
   The first component provides a number of definitions pertaining to the siting of wireless support structures and the mounting of wireless facilities upon such structures. An “authority” is defined to mean a state, county, or municipal governing body, board, agency, office, or commission authorized by law to make legislative, quasi-judicial, or administrative decisions relative to the construction, installation, modification, or siting of wireless facilities or wireless support structures. A “wireless support structure” is defined as a structure designed to support wireless facilities, including but not limited to monopoles, towers, or other freestanding facilities, but not including utility poles. A “substantial modification” means the mounting of a proposed wireless facility on a wireless support structure which results in a specified increase in vertical height of the structure, or which results in a specified horizontal protrusion from the structure, or which increases the square footage of the existing compound more than a specified amount. A “collocation” means the placement or installation of wireless facilities on existing structures without the need to construct a new wireless support structure.
   The second component provides a series of uniform rules or limitations applicable to all applications, in order to ensure uniformity across the state with respect to the consideration of applications. The rules and limitations include but are not limited to prohibiting requiring information about an applicant’s business decisions, evaluating an application based on the availability of other potential locations, dictating the type of wireless facilities, infrastructure, or technology to be used by an applicant, requiring the removal of existing wireless support structures or facilities as a condition of approval, imposing environmental testing, sampling, or monitoring requirements excluded under federal law, establishing or enforcing requlations or procedures for signal strength or service quality, charging fees not required for similar types of commercial development and which do not exceed specified levels, imposing surety requirements unless the authority imposes similar requirements on other applicants for other types of commercial development or land uses, condition approval of an application on the provision of space on or near the wireless support structure for authority or local government services at less than market rates, limiting the duration of the application’s approval, and discriminating on the basis of ownership when promulgating rules or procedures for siting wireless facilities or evaluating applications.
   The third component establishes timeframes within which an authority must act upon an application to construct a new wireless support structure, a substantial modification of a wireless support structure, or a collocation. Additionally, the bill provides that the wireless cell siting provisions shall not be interpreted to prohibit an airport, aviation authority, or municipality from acting pursuant to the provisions of Code chapter 329 dealing with airport zoning, and an authority shall not institute a moratorium on the permitting, construction or issuance of approval of new wireless support structures of over 90 days and the action or actions establishing the moratorium must state reasonable grounds and good cause. Further, the bill provides that an authority is limited to no more than two moratoria in a five-year period.
   DIVISION VI —— STEM INTERNSHIPS. The bill establishes a new component to an existing internship program within the economic development authority to assist in placing Iowa students studying in the fields of science, technology, engineering, and mathematics (STEM) into internships that lead to permanent positions with Iowa employers. The bill directs the authority to collaborate with eligible employers to ensure that the interns hired are studying in the specified fields, and provides that an Iowa employer may receive financial assistance in the amount of $1 for every dollar paid by the employer to an intern, limited to an amount not exceeding $5,000 for any single internship. The bill states that the requirement to establish the internships is contingent upon the provision of funding for such purposes by the general assembly.