Senate File 390 S-3124 Amend Senate File 390 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 8B.1, subsections 5, 13, and 14, Code 4 2021, are amended to read as follows: 5 5. “Facilitate” means a communication service provider’s 6 ability to provide broadband service at or above the download 7 and upload speeds specified in the definition of targeted 8 service area in this section or section 8B.11, subsection 9 5 , paragraph “a” , if applicable, to a home, farm, school, 10 or business within a commercially reasonable time and at a 11 commercially reasonable price upon request by a consumer. 12 13. “Targeted service area” means any of the following: 13 a. A United States census bureau census block located in 14 this state, including any crop operation located within the 15 census block, or other geographic unit the office sets by 16 rule, within which no communications service provider offers 17 or facilitates broadband service at or above the tier 1, tier 18 2, or tier 3 download and upload speeds identified by the 19 federal communications commission pursuant to section 706 of 20 the federal Telecommunications Act of 1996 , as amended . As 21 used in this subsection: 22 (1) “Tier 1” means a maximum download speed of less than 23 twenty-five megabits per second and a maximum upload speed of 24 less than three megabits per second. 25 (2) “Tier 2” means a minimum download speed of greater than 26 or equal to twenty-five megabits per second but less than fifty 27 megabits per second. 28 (3) “Tier 3” means a minimum download speed of greater than 29 or equal to fifty megabits per second but less than eighty 30 megabits per second. 31 b. Any geographic area, as the office sets by rule, that 32 is materially underserved by broadband service such that 33 the download and upload speeds identified by the federal 34 communications commission pursuant to section 706 of the 35 -1- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 1/ 10 #1.

federal Telecommunications Act of 1996 , as amended, of the 1 broadband service in the geographic area tier 1, tier 2, 2 and tier 3 download and upload speeds are not meaningfully 3 available. The office’s power to determine the geographic 4 area by rule under this paragraph includes the power to define 5 and interpret standards as to whether a geographic area is 6 materially underserved and broadband service is meaningfully 7 available. 8 14. “Underserved area” means any portion of a targeted 9 service area within which no communications service provider 10 facilitates broadband service meeting the tier 1 download and 11 upload speeds specified in the definition of targeted service 12 area in this section . 13 Sec. 2. Section 8B.10, subsection 1, Code 2021, is amended 14 to read as follows: 15 1. The determination of whether a communications service 16 provider facilitates broadband service meeting the tier 17 1, tier 2, or tier 3 download and upload speeds specified 18 in the definition of targeted service area in section 8B.1 19 shall be determined or ascertained by reference to broadband 20 availability maps or data sources that are identified by 21 the office by rule. The office shall periodically make 22 renewed determinations of whether a communications service 23 provider facilitates broadband service at or above the tier 24 1, tier 2, or tier 3 download and upload speeds specified 25 in the definition of targeted service area in section 8B.1 , 26 which shall, to the extent updated maps and data sources are 27 available at the time, include making such determinations prior 28 to each round of grant applications solicited by the office 29 pursuant to section 8B.11 . The office is not required to make 30 renewed determinations of whether a communications service 31 provider facilitates broadband service at or above the tier 32 1, tier 2, or tier 3 download and upload speeds specified in 33 the definition of targeted service area in section 8B.1 more 34 frequently than once in any calendar year. 35 -2- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 2/ 10

Sec. 3. Section 8B.11, Code 2021, is amended to read as 1 follows: 2 8B.11 Empower rural Iowa —— broadband grants —— fund. 3 1. The office shall administer a broadband grant program 4 designed to reduce or eliminate unserved and underserved 5 areas in the state, leveraging federal funds and public and 6 private partnerships where possible, by awarding grants to 7 communications service providers that reduce or eliminate 8 targeted service areas by installing broadband infrastructure 9 that facilitates broadband service in targeted service areas at 10 or above the download and upload speeds specified in subsection 11 5 , in accordance with this section in accordance with the 12 following: 13 a. The broadband infrastructure facilitates broadband 14 service that provides a minimum download speed of one hundred 15 megabits per second and a minimum upload speed of one hundred 16 megabits per second in a targeted service area within which no 17 communications service provider offers or facilitates broadband 18 service that provides download and upload speeds less than or 19 equal to the tier 1 download and upload speeds specified in the 20 definition of targeted service area in section 8B.1 . 21 b. The broadband infrastructure facilitates broadband 22 service that provides a minimum download speed of one hundred 23 megabits per second and a minimum upload speed of one hundred 24 megabits per second in a targeted service area within which no 25 communications service provider offers or facilitates broadband 26 service that provides any of the following: 27 (1) Download speeds less than or equal to the tier 2 28 download speed specified in the definition of targeted service 29 area in section 8B.1. 30 (2) Download speeds less than or equal to the tier 3 31 download speed specified in the definition of targeted service 32 area in section 8B.1. 33 2. a. An empower rural Iowa broadband grant fund is 34 established in the state treasury under the authority of the 35 -3- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 3/ 10

office. The fund shall consist of moneys available to and 1 obtained or accepted by the office. Moneys in the fund are 2 appropriated to the office to be used for the grant program, 3 including for broadband mapping and the administration and 4 operation of the grant program , and for the fiberoptic network 5 conduit installation program established in section 8B.25 . 6 b. The office shall use moneys in the fund to provide 7 grants to communications service providers pursuant to this 8 section and to lead and coordinate the fiberoptic network 9 conduit installation program pursuant to section 8B.25 . The 10 office may use not more than one two and one-half percent of 11 the moneys in the fund at the beginning of the fiscal year to 12 pay the costs and expenses associated with the administration 13 and operation of the grant program and the fiberoptic network 14 conduit installation program . The office shall use moneys in 15 the fund to leverage available federal moneys if possible. 16 c. Notwithstanding section 8.33 , moneys in the fund 17 that remain unencumbered or unobligated at the close of the 18 fiscal year shall not revert but shall remain available for 19 expenditure for the purposes designated until three years 20 following the last day of the fiscal year in which the funds 21 were originally appropriated. 22 d. Notwithstanding paragraph “c” or any provision to the 23 contrary, moneys in the fund that have been awarded but not 24 paid to a communications service provider shall not revert 25 but shall remain available to the office for purposes of 26 administering the award in a manner consistent with the terms 27 and conditions of any corresponding contract or grant agreement 28 governing the administration of the award. 29 3. Communications service providers may apply to the office 30 for a grant pursuant to this section for the installation of 31 broadband infrastructure that facilitates broadband service 32 in targeted service areas at or above the download and upload 33 speeds specified in subsection 5 . The office shall include 34 representatives from schools, communities, agriculture, 35 -4- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 4/ 10

industry, and other areas as appropriate to review and 1 recommend grant awards. The office shall conduct an open 2 application review process that includes the opportunity 3 for the public to submit factual information as part of a 4 validation process to address claims that a targeted service 5 area is currently served with broadband service at or above the 6 download and upload speeds specified in subsection 5 . Upon 7 completion of the validation process, the office may modify 8 a proposed targeted service area to account for information 9 received during the validation process . The office shall make 10 available a public internet site identifying all publicly 11 available information contained in the applications , the 12 members of the review committee, a summary of the review 13 committee’s recommended results, and any results of performance 14 testing conducted after the project is completed. The office 15 shall devote one full-time equivalent position to evaluate 16 applications submitted under this section and provide technical 17 assistance to communications service providers in completing 18 applications for federal funds, or any other funds from any 19 public or private sources, related to improving broadband 20 infrastructure. 21 4. a. The office shall award grants on a competitive 22 basis for the installation of broadband infrastructure that 23 facilitates broadband service as provided in subsection 3 in 24 targeted service areas at or above the download and upload 25 speeds specified in subsection 5 , after considering the 26 following: 27 (1) The relative need for broadband infrastructure in the 28 area and the existing broadband service speeds, including 29 whether the project serves a rural area or areas. 30 (2) The applicant’s total proposed budget for the project, 31 including all of the following: 32 (a) The amount or percentage of local or federal matching 33 funds, if any, and any funding obligations shared between 34 public and private entities. 35 -5- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 5/ 10

(b) The percentage of funding provided directly from the 1 applicant, including whether the applicant requested from the 2 office an amount less than the maximum amount the office could 3 award pursuant to subsection 5 and, if so, the percentage of 4 the project cost that the applicant is requesting. 5 (3) The relative download and upload speeds of proposed 6 projects for all applicants. 7 (4) The specific product attributes resulting from the 8 proposed project, including technologies that provide higher 9 qualities of service, such as service levels, latency, and 10 other service attributes as determined by the office. 11 (5) The percentage of the homes, farms, schools, and 12 businesses in the targeted service area that will be provided 13 access to broadband service. 14 (6) The geographic diversity of the project areas of all the 15 applicants. 16 (7) The economic impact of the project to the area. 17 (6) The proportion of proposed projects that will result 18 in the installation of broadband infrastructure in a targeted 19 service area within which the only broadband service available 20 provides the tier 1 download and upload speeds specified in the 21 definition of targeted service area in section 8B.1. 22 (8) (7) Other factors the office deems relevant. 23 b. In considering the factors listed in paragraph “a” 24 for awarding grants pursuant to this section , the office 25 shall afford the greatest weight to the factors described in 26 paragraph “a” , subparagraphs (1) through (3) , and subparagraph 27 (6) . 28 c. Except as otherwise provided in this section , the office 29 shall not evaluate applications based on the office’s knowledge 30 of the applicant except for information obtained by the office 31 during the application process or period for public comment. 32 5. The office shall not award a grant pursuant to this 33 section that exceeds thirty-five percent of the communications 34 service provider’s project cost. The total amount of the 35 -6- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 6/ 10

grants the office awards from the empower rural Iowa broadband 1 grant fund pursuant to this section shall be as follows not 2 exceed any of the following amounts : 3 a. For Seventy-five percent of a communications service 4 provider’s project costs for projects that will result in the 5 installation of broadband infrastructure that will facilitate 6 broadband service providing a minimum download speed less than 7 one hundred megabits per second but greater than or equal to 8 the download speed specified in the definition of targeted 9 service area in section 8B.1 , and a minimum upload speed less 10 than twenty megabits per second but greater than or equal 11 to the upload speed specified in the definition of targeted 12 service area in section 8B.1 , the total amount of the grants 13 the office awards shall not exceed fifty percent of the moneys 14 in the fund at the beginning of the fiscal year. However, if 15 the amount requested for projects that facilitate broadband 16 service at the speeds described in paragraph “b” for the fiscal 17 year is less than the amount reserved for projects under 18 paragraph “b” , the office may award the difference to projects 19 under this paragraph for the same fiscal year in a targeted 20 service area within which no communications service provider 21 offers or facilitates broadband service that provides download 22 and upload speeds less than or equal to the tier 1 download and 23 upload speeds specified in the definition of targeted service 24 area in section 8B.1 . 25 b. For Fifty percent of a communications service provider’s 26 project costs for projects that will result in the installation 27 of broadband infrastructure that will facilitate broadband 28 service providing a minimum download speed of one hundred 29 megabits per second and a minimum upload speed of twenty 30 megabits per second, the total amount of the grants the office 31 awards shall not exceed fifty percent of the moneys in the fund 32 at the beginning of the fiscal year. However, if the amount 33 requested for projects that facilitate broadband service at 34 the speeds described in paragraph “a” for the fiscal year is 35 -7- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 7/ 10

less than the amount reserved for projects under paragraph 1 “a” , the office may award the difference to projects under 2 this paragraph for the same fiscal year in a targeted service 3 area within which no communications service provider offers or 4 facilitates broadband service that provides download and upload 5 speeds less than or equal to the tier 2 download and upload 6 speeds specified in the definition of targeted service area in 7 section 8B.1 . 8 c. Thirty-five percent of a communications service 9 provider’s project costs for projects that will result in the 10 installation of broadband infrastructure in a targeted service 11 area within which no communications service provider offers or 12 facilitates broadband service that provides download speeds 13 less than or equal to the tier 3 download speed specified in 14 the definition of targeted service area in section 8B.1. 15 6. Notwithstanding subsections 3 and 5, communications 16 service providers may apply to the office for a grant 17 pursuant to this section for the installation of broadband 18 infrastructure that facilitates broadband service providing a 19 minimum download speed of one hundred megabits per second and a 20 minimum upload speed of twenty megabits per second in targeted 21 service areas pursuant to this subsection. The office shall 22 make available a public internet site identifying all publicly 23 available information contained in the applications and any 24 results of performance testing conducted after the project is 25 completed. 26 a. The office shall award grants under this subsection on 27 a competitive basis after considering the factors provided in 28 subsection 4 and affording weight to the factors pursuant to 29 subsection 4, paragraph “b” . 30 b. The total amount of the grants the office shall award 31 pursuant to this subsection shall not exceed fifty percent 32 of a communications service provider’s project costs for 33 projects that will result in the installation of broadband 34 infrastructure in a targeted service area within which no 35 -8- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 8/ 10

communications service provider offers or facilitates broadband 1 service that provides download and upload speeds less than or 2 equal to the tier 1 download and upload speeds specified in the 3 definition of targeted service area in section 8B.1. 4 7. Notwithstanding subsections 5 and 6, at least twenty 5 percent of the total amount of the grants the office awards 6 from the empower rural Iowa broadband grant fund pursuant to 7 this section shall be allocated to projects that will result 8 in the installation of broadband infrastructure in difficult 9 to serve targeted service areas within which no communications 10 service provider offers or facilitates broadband service that 11 provides download and upload speeds less than or equal to the 12 tier 1 download and upload speeds specified in the definition 13 of targeted service area in section 8B.1. For purposes of this 14 subsection, a targeted service area is difficult to serve if 15 the soil conditions, topography, or other local conditions make 16 the installation of broadband infrastructure in the targeted 17 service area more time-consuming or labor-intensive compared to 18 other areas of the state. 19 6. 8. The office shall provide public notice regarding the 20 application process and receipt of funding. 21 7. The office shall not award a grant pursuant to this 22 section on or after July 1, 2025. 23 8. 9. The office may adopt rules pursuant to chapter 17A 24 interpreting this chapter or necessary for administering this 25 chapter , including but not limited to rules relating to the 26 broadband grant program process, management, and measurements 27 as deemed necessary by the office. 28 9. 10. The office shall adopt rules establishing procedures 29 to allow aggrieved applicants an opportunity to challenge the 30 office’s award of grants under this section . 31 Sec. 4. EMERGENCY RULES. The office of the chief 32 information officer may adopt emergency rules under section 33 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph 34 “b”, to implement the provisions of this Act and the rules 35 -9- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 9/ 10

shall be effective immediately upon filing unless a later 1 date is specified in the rules, unless the effective date of 2 the rules is delayed or the applicability of the rules is 3 suspended by the administrative rules review committee. Any 4 rules adopted in accordance with this section shall not take 5 effect before the rules are reviewed by the administrative 6 rules review committee. The delay authority provided to 7 the administrative rules review committee under section 8 17A.4, subsection 7, and section 17A.8, subsection 9, 9 shall be applicable to a delay imposed under this section, 10 notwithstanding a provision in those sections making them 11 inapplicable to section 17A.5, subsection 2, paragraph “b”. 12 Any rules adopted in accordance with the provisions of this 13 section shall also be published as a notice of intended action 14 as provided in section 17A.4. 15 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 16 importance, takes effect upon enactment. 17 Sec. 6. APPLICABILITY. This Act applies to applications 18 for grants submitted pursuant to section 8B.11 on or after the 19 effective date of this Act. > 20 ______________________________ CARRIE KOELKER ______________________________ JASON SCHULTZ -10- SF390.1818 (1) 89 (amending this SF 390 to CONFORM to HF 848) jda/rn 10/ 10