Senate File 2324 - Introduced SENATE FILE 2324 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO SSB 3119) A BILL FOR An Act providing for the expansion of the availability of 1 broadband access across the state, and including income 2 tax credits and property tax exemptions for broadband 3 infrastructure installations and making appropriations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5380SV (5) 85 rn/nh

S.F. 2324 DIVISION I 1 LEGISLATIVE INTENT 2 Section 1. SHORT TITLE. This Act shall be known and may be 3 cited as the “Statewide Broadband Expansion Act”. 4 Sec. 2. LEGISLATIVE INTENT. The general assembly finds that 5 the availability of broadband access, and the infrastructure 6 necessary to facilitate that access, varies to a significant 7 extent from one area of the state to another, and that 8 increasing access to broadband throughout the state is vital 9 so that every citizen, business entity or organization, 10 and community in this state can be afforded the opportunity 11 to fully integrate with and utilize modern technology for 12 educational, economic development and job training, health 13 care, and other purposes. 14 DIVISION II 15 STATEWIDE BROADBAND COORDINATION 16 Sec. 3. Section 8B.1, Code 2014, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 01. “Broadband” means a high-speed, 19 high-capacity electronic transmission medium that can carry 20 data signals from multiple independent network sources by 21 establishing different bandwidth channels and that is commonly 22 used to deliver internet services to the public. 23 NEW SUBSECTION . 001. “Broadband infrastructure” means 24 the physical infrastructure used for the transmission of data 25 via broadband, including but not limited to any equipment, 26 systems, switches, routers, wire, cable, satellite, conduits, 27 servers, software, technology, base transceiver station 28 sites, or other means of transmission or communication. 29 “Broadband infrastructure” does not include land, buildings, 30 structures, improvements, or equipment not directly used in the 31 transmission of data. 32 NEW SUBSECTION . 0001. “Communications service provider” 33 means a service provider that provides broadband service. 34 Sec. 4. Section 8B.1, subsection 1, Code 2014, is amended 35 -1- LSB 5380SV (5) 85 rn/nh 1/ 25

S.F. 2324 to read as follows: 1 1. “Information technology” means computing and electronics 2 applications used to process and distribute information in 3 digital and other forms and includes information technology 4 devices, information technology services, infrastructure 5 services, broadband and broadband infrastructure, and 6 value-added services. 7 Sec. 5. Section 8B.1, Code 2014, is amended by adding the 8 following new subsections: 9 NEW SUBSECTION . 7A. “Targeted underserved service area” 10 means a United States census bureau census block located in 11 this state within which communications service providers do 12 not offer or facilitate broadband service at or above thirty 13 megabits per second of download speed or three megabits per 14 second of upload speed. This definition may be adjusted by the 15 office by rule pursuant to section 8B.10. 16 NEW SUBSECTION . 7B. “Targeted unserved service area” means 17 a United States census bureau census block located in this 18 state within which communications service providers do not 19 offer or facilitate broadband service at or above four megabits 20 per second of download speed or one megabit per second of 21 upload speed. This definition may be adjusted by the office by 22 rule pursuant to section 8B.10. 23 Sec. 6. Section 8B.3, subsection 1, Code 2014, is amended 24 to read as follows: 25 1. The office is created for the purpose of leading, 26 directing, managing, coordinating, and providing accountability 27 for the information technology resources of state government 28 and for coordinating statewide broadband availability and 29 access . 30 Sec. 7. Section 8B.4, Code 2014, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 14A. Streamline, consolidate, and 33 coordinate the access to and availability of broadband and 34 broadband infrastructure throughout the state, including but 35 -2- LSB 5380SV (5) 85 rn/nh 2/ 25

S.F. 2324 not limited to the facilitation of public-private partnerships, 1 ensuring that all state agencies’ broadband and broadband 2 infrastructure policies and procedures are aligned, promoting 3 accountability regarding broadband and broadband infrastructure 4 availability and access, integrating broadband with cyber 5 security standards and rules, resolving issues which arise 6 with regard to implementation efforts, collecting data and 7 developing metrics or standards against which the data may 8 be measured and evaluated regarding broadband infrastructure 9 installation and deployment, and identifying options regarding 10 the creation of standing resources for stakeholders such 11 as a fiberoptic database or a fiberoptic network conduit 12 installation coordination effort for state-funded construction 13 projects. 14 Sec. 8. Section 8B.9, Code 2014, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 5. An annual report regarding the status of 17 broadband expansion and coordination. 18 Sec. 9. NEW SECTION . 8B.10 Targeted unserved and 19 underserved service areas —— determination —— criteria —— 20 subdivision. 21 1. The office may periodically adjust the definitions of 22 targeted unserved service area and targeted underserved service 23 area contained in section 8B.1 by rule. The determination 24 of whether a communications service provider offers or 25 facilitates broadband service meeting the download or upload 26 speeds specified in such definitions shall be determined or 27 ascertained by reference to broadband availability maps or data 28 sources that are widely accepted for accuracy and available for 29 public review and comment and that are identified by the office 30 by rule. 31 2. The office shall establish procedures to allow 32 challenges to claims that an area meets the definition of a 33 targeted unserved service area or targeted underserved service 34 area. 35 -3- LSB 5380SV (5) 85 rn/nh 3/ 25

S.F. 2324 3. Service areas that have more than one communications 1 service provider shall be subdivided based on incumbent local 2 telephone exchange areas that have been established by the 3 utilities board of the utilities division of the department of 4 commerce pursuant to section 476.29. 5 Sec. 10. Section 8D.3, subsection 2, paragraph a, Code 2014, 6 is amended to read as follows: 7 a. The commission is composed of the chief information 8 officer appointed pursuant to section 8B.2 or the chief 9 information officer’s designee and five other members who shall 10 be appointed by the governor and subject to confirmation by the 11 senate. Members Appointed members of the commission shall not 12 serve in any manner or be employed by an authorized user of the 13 network or by an entity seeking to do or doing business with 14 the network. 15 (1) The governor shall appoint a member as the chairperson 16 of the commission from the five members appointed by the 17 governor, subject to confirmation by the senate. 18 (2) Members Appointed members of the commission shall serve 19 six-year staggered terms as designated by the governor and 20 appointments to the commission are subject to the requirements 21 of sections 69.16 , 69.16A , and 69.19 . Vacancies shall be 22 filled by the governor for the duration of the unexpired term. 23 (3) The salary of the appointed members of the commission 24 shall be twelve thousand dollars per year, except that the 25 salary of the chairperson shall be seventeen thousand dollars 26 per year. Members Appointed members of the commission shall 27 also be reimbursed for all actual and necessary expenses 28 incurred in the performance of duties as members. The benefits 29 and salary paid to the appointed members of the commission 30 shall be adjusted annually equal to the average of the annual 31 pay adjustments, expense reimbursements, and related benefits 32 provided under collective bargaining agreements negotiated 33 pursuant to chapter 20 . 34 Sec. 11. Section 8D.3, subsection 2, paragraph b, Code 2014, 35 -4- LSB 5380SV (5) 85 rn/nh 4/ 25

S.F. 2324 is amended to read as follows: 1 b. In addition to the members appointed by the governor, the 2 The auditor of state or the auditor’s designee shall serve as a 3 nonvoting, ex officio member of the commission. 4 Sec. 12. Section 8D.4, Code 2014, is amended to read as 5 follows: 6 8D.4 Executive director appointed. 7 The commission, in consultation with the director of 8 the department of administrative services and the chief 9 information officer , shall appoint an executive director of 10 the commission, subject to confirmation by the senate. Such 11 individual shall not serve as a member of the commission. 12 The executive director shall serve at the pleasure of the 13 commission. The executive director shall be selected primarily 14 for administrative ability and knowledge in the field, without 15 regard to political affiliation. The governor shall establish 16 the salary of the executive director within range nine as 17 established by the general assembly. The salary and support of 18 the executive director shall be paid from funds deposited in 19 the Iowa communications network fund. 20 Sec. 13. Section 80.28, subsection 2, Code 2014, is amended 21 to read as follows: 22 2. The board shall consist of fifteen seventeen voting 23 members, as follows: 24 a. The following members representing state agencies: 25 (1) One member representing the department of public 26 safety. 27 (2) One member representing the state department of 28 transportation. 29 (3) One member representing the department of homeland 30 security and emergency management. 31 (4) One member representing the department of corrections. 32 (5) One member representing the department of natural 33 resources. 34 (6) One member representing the Iowa department of public 35 -5- LSB 5380SV (5) 85 rn/nh 5/ 25

S.F. 2324 health. 1 (7) One member representing the office of the chief 2 information officer. 3 b. The governor shall solicit and consider recommendations 4 from professional or volunteer organizations in appointing the 5 following members: 6 (1) Two members who are representatives from municipal 7 police departments. 8 (2) Two members who are representatives of sheriff’s 9 offices. 10 (3) Two members who are representatives from fire 11 departments. One of the members shall be a volunteer fire 12 fighter and the other member shall be a paid fire fighter. 13 (4) Two members who are law communication center managers 14 employed by state or local government agencies. 15 (05) One member who is an emergency medical care provider 16 as defined in section 147A.1. 17 (5) One at-large member. 18 Sec. 14. BROADBAND COORDINATION AND ANALYSIS —— 19 APPROPRIATION. There is appropriated from the general fund of 20 the state to the office of chief information officer for the 21 fiscal year beginning July 1, 2014, and ending June 30, 2015, 22 the following amount, or so much thereof as is necessary, for 23 the purposes designated: 24 For data collection and analysis regarding the availability, 25 implementation, and affordability of broadband access across 26 state government and the private sector as provided in section 27 8B.4, subsection 14A, as enacted in this Act: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 29 Notwithstanding section 8.33, moneys appropriated in this 30 section which remain unencumbered or unobligated at the end of 31 the fiscal year shall not revert but shall remain available for 32 expenditure for the purposes designated in subsequent fiscal 33 years. 34 DIVISION III 35 -6- LSB 5380SV (5) 85 rn/nh 6/ 25

S.F. 2324 IOWA COMMUNICATIONS NETWORK 1 COMMUNICATIONS SERVICE PROVIDER ACCESS 2 Sec. 15. NEW SECTION . 8D.21 Definitions. 3 For the purposes of this subchapter, “broadband” , “broadband 4 infrastructure” , “communications service provider” , “targeted 5 unserved service area” , and “targeted underserved service area” 6 mean the same as defined in section 8B.1. 7 Sec. 16. NEW SECTION . 8D.22 Communications service provider 8 access. 9 1. Wholesale access to network —— authority of 10 commission. Notwithstanding any contrary provisions of this 11 chapter related to access to the network, the commission may 12 enter into a contract to provide access to network facilities 13 owned by the state on a wholesale basis to a communications 14 service provider who is not otherwise an authorized user as 15 provided in this section. Such access shall not be available 16 to network facilities leased by the state without the consent 17 of the lessor. The commission may establish by rule the manner 18 in which a contract entered into pursuant to this section shall 19 be undertaken. Contracts shall be coordinated with the office 20 of the chief information officer. 21 2. Access requirements —— limitations. 22 a. Access to network facilities pursuant to any contract 23 entered into by the commission pursuant to this section shall 24 be subject to retention of sufficient capacity for existing 25 and future authorized user demands. Access shall be provided 26 solely for wholesale transactions to communications service 27 providers to facilitate the installation and deployment of 28 broadband infrastructure in targeted unserved service areas of 29 the state. 30 b. Prior to entering into a contract pursuant to this 31 section, and for an interval of thirty business days, a 32 communications service provider seeking wholesale access to 33 network facilities shall comply with the following: 34 (1) Allow any private wholesale communications service 35 -7- LSB 5380SV (5) 85 rn/nh 7/ 25

S.F. 2324 provider that has fiberoptic cable facilities that are close 1 in proximity to a targeted unserved service area to which 2 the contract would apply to make those facilities available 3 at the same or a lower rate than that offered by the network 4 determined pursuant to subsection 3. 5 (2) Allow any communications service provider who, as 6 of July 1, 2014, offered broadband service at retail within 7 or close in proximity to the targeted unserved service area 8 to submit documentation to the commission verifying that 9 the communications service provider has committed to make 10 broadband infrastructure available to all customers in 11 the targeted unserved service area on or before January 1, 12 2016. In the event the commission accepts the documentation 13 submitted, the commission shall not enter into a contract with 14 a communications service provider seeking wholesale access to 15 network facilities pursuant to this section. 16 c. A communications service provider seeking wholesale 17 access to network facilities pursuant to this subchapter 18 shall certify to the commission that the provider will offer 19 broadband service to all customers in the targeted unserved 20 service area. 21 d. Additional requirements and limitations regarding 22 communications service provider access pursuant to this 23 subchapter shall be determined by the commission by rule. 24 3. Rate determination —— rate adjustments —— hearings. 25 a. Rates applicable to wholesale access by communications 26 service providers pursuant to this section shall be determined 27 by the commission by rule, in consultation with the chief 28 information officer. The rates shall take into account and 29 reflect the following considerations: 30 (1) Establishment of a wholesale rate structure with 31 multiple pricing points determined based on the grouping of 32 similar installation characteristics to be identified by the 33 commission by rule, including but not limited to size and 34 demographic characteristics of the targeted unserved service 35 -8- LSB 5380SV (5) 85 rn/nh 8/ 25

S.F. 2324 area, availability of other communications service providers, 1 the type of communications service installation proposed, and 2 the communications service modality being utilized. 3 (2) Incorporation of any and all fully allocated costs 4 attributable to facilitating wholesale access. 5 b. Rates established pursuant to this section shall be 6 posted on the network’s internet site. 7 c. Proposed rate adjustments shall be posted on the 8 network’s internet site, and shall be subject to the following 9 public hearing, decision-making, and appeals process: 10 (1) Three public hearings on the proposed rate adjustment 11 shall be held within each targeted unserved service area 12 impacted by the proposed adjustment. The hearings shall 13 be conducted thirty days following the rate adjustment 14 announcement, sixty days following the announcement, and ninety 15 days following the announcement. 16 (2) Following the third public hearing, the commission 17 shall convene to discuss the status of the proposed rate 18 adjustment, and shall render and post a decision regarding the 19 proposed adjustment within fifteen days following the date of 20 the commission’s meeting. 21 (3) Any party wishing to appeal the commission’s decision 22 may file such an appeal with the executive council within 23 thirty days following the posting of the commission’s decision. 24 (4) Rate changes shall become effective within thirty days 25 following approval by the commission in the event an appeal is 26 not filed, and immediately after the executive council renders 27 a decision in favor of the adjustment in the event an appeal is 28 filed. 29 4. In addition to providing wholesale access to 30 communications service providers for the purpose of 31 facilitating the installation and deployment of broadband 32 infrastructure, the commission shall evaluate whether wholesale 33 access should also be provided to communications service 34 providers and other businesses and entities to facilitate 35 -9- LSB 5380SV (5) 85 rn/nh 9/ 25

S.F. 2324 disaster recovery back-up. 1 DIVISION IV 2 FINANCIAL INCENTIVES 3 Sec. 17. NEW SECTION . 16.66 Broadband revolving loan 4 program. 5 1. The authority shall establish and administer a broadband 6 revolving loan program to provide low-interest loans to 7 broadband and telecommunications businesses to expand broadband 8 access in targeted unserved service areas and targeted 9 underserved service areas of the state. For the purposes of 10 this section, “broadband” , “targeted unserved service area” , and 11 “targeted underserved service area” mean the same as defined in 12 section 8B.1. 13 2. In awarding loans to businesses to invest in expanding 14 broadband access, the authority may consider the following: 15 a. The business’s relationship to the community and its 16 commitment to offer service to all customers in a targeted 17 unserved service area or targeted underserved service area. 18 b. The location of the community in which the business 19 operates and the need for broadband access in the community. 20 c. The overall geographic diversity of the applicants for 21 loans, including urban and rural diversity. 22 d. Any other information the authority deems relevant. 23 3. The authority may accept, reject, or defer a business’s 24 application for a loan under this section. 25 4. In awarding loans, the authority shall give preference 26 to businesses that seek to expand broadband access to targeted 27 unserved service areas prior to awarding loans to businesses 28 that seek to expand broadband access to targeted underserved 29 services areas. 30 5. A loan awarded under the program to any single business 31 shall not exceed two hundred fifty thousand dollars per United 32 States census bureau census block, or two million dollars 33 overall. 34 6. The authority shall enter into an agreement with a 35 -10- LSB 5380SV (5) 85 rn/nh 10/ 25

S.F. 2324 business selected to receive a loan pursuant to this section 1 for purposes of ensuring the program is administered pursuant 2 to the requirements of this section. The agreement shall set 3 the loan period and interest rate of the loan. 4 7. a. The authority may seek immediate repayment or 5 recapture of the loan awarded pursuant to this section as 6 provided in paragraph “b” . 7 b. If, after receiving a loan from the authority pursuant to 8 this section, the business fails to use the awarded moneys for 9 the purposes described in subsection 1, all or a portion of the 10 loan received is subject to immediate repayment or recapture. 11 c. All repayments, recaptures, and interest on loans 12 awarded under the program shall be remitted to the authority 13 to be deposited in the broadband revolving loan program fund 14 established in section 16.67. 15 8. The authority shall have the power to bond as necessary 16 to carry out the purposes of the broadband revolving loan 17 program. The bonds shall be issued in the same manner as, and 18 under the same conditions and restrictions of, section 16.26. 19 Sec. 18. NEW SECTION . 16.67 Broadband revolving loan 20 program fund. 21 1. A broadband revolving loan program fund is created within 22 the authority consisting of moneys appropriated by the general 23 assembly and any other moneys available to and obtained or 24 accepted by the authority for placement in the fund. 25 2. Payments of interest, repayments of moneys loaned 26 pursuant to section 16.66, and recaptures of loans under 27 section 16.66, shall be deposited in the fund. 28 3. The fund shall be used to provide low-interest loans 29 under the broadband revolving loan program established in 30 section 16.66. 31 4. Moneys in the fund are not subject to section 8.33. 32 Notwithstanding section 12C.7, subsection 2, interest or 33 earnings on moneys in the fund shall be credited to the fund. 34 DIVISION V 35 -11- LSB 5380SV (5) 85 rn/nh 11/ 25

S.F. 2324 INCOME TAX INCENTIVES 1 Sec. 19. NEW SECTION . 422.11C Broadband infrastructure tax 2 credit. 3 1. For purposes of this section, “broadband infrastructure” , 4 “communications service provider” , “targeted unserved service 5 area” , and “targeted underserved service area” mean the same as 6 defined in section 8B.1. 7 2. The taxes imposed under this division, less the credits 8 allowed under section 422.12, shall be reduced by a broadband 9 infrastructure tax credit equal to three percent of the 10 amount expended by a communications service provider for a new 11 installation of broadband infrastructure completed on or after 12 July 1, 2014, with such reduction not to exceed a maximum of 13 two hundred fifty thousand dollars per United States census 14 bureau census block or three million dollars per installation. 15 A taxpayer claiming a credit under this section shall certify 16 prior to commencement of the installation that the broadband 17 infrastructure installation will take place within a targeted 18 unserved service area or a targeted underserved service area. 19 Any credit in excess of the tax liability for the tax year 20 shall not be refunded, but may be credited to the tax liability 21 for the following ten tax years or until depleted, whichever 22 is earlier. 23 3. An individual may claim the tax credit allowed a 24 partnership, limited liability company, S corporation, estate, 25 or trust electing to have the income taxed directly to the 26 individual. The amount claimed by the individual shall be 27 based upon the pro rata share of the individual’s earnings of a 28 partnership, limited liability company, S corporation, estate, 29 or trust. 30 4. The director of revenue may adopt rules pursuant to 31 chapter 17A for the interpretation and proper administration of 32 the credit provided in this section. 33 Sec. 20. Section 422.33, Code 2014, is amended by adding the 34 following new subsection: 35 -12- LSB 5380SV (5) 85 rn/nh 12/ 25

S.F. 2324 NEW SUBSECTION . 31. The taxes imposed under this division 1 shall be reduced by a broadband infrastructure tax credit 2 allowed under section 422.11C. 3 DIVISION VI 4 PROPERTY TAX INCENTIVES 5 Sec. 21. Section 427.1, Code 2014, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 40. Broadband infrastructure. 8 a. Broadband infrastructure shall be entitled to an 9 exemption from taxation to the extent provided in this section 10 based upon the actual value added by broadband infrastructure 11 that is newly installed and completed. For the purposes of 12 this subsection, “broadband infrastructure” , “targeted unserved 13 service area” , and “targeted underserved service area” mean the 14 same as defined in section 8B.1. 15 b. The exemption shall apply to the new installation 16 of broadband infrastructure completed on or after July 1, 17 2014, in a targeted unserved service area or a targeted 18 underserved service area. A person claiming an exemption 19 under this subsection shall certify prior to commencement of 20 the installation that the broadband installation will take 21 place within a targeted unserved service area or a targeted 22 underserved service area. 23 c. If the broadband infrastructure is assessed with other 24 property as a unit by the department of revenue pursuant 25 to sections 428.24 through 428.29 or chapter 433, this 26 exemption shall be limited to the value added by the broadband 27 infrastructure as determined as of the assessment date and 28 the exemption shall be applied prior to any other exemption 29 applicable to the unit value. 30 d. The tax exemption shall be a one hundred percent 31 exemption from taxation on the actual value added by the 32 improvements for a period of ten years. 33 e. (1) A person may submit a proposal to the governing body 34 of the city or county within which a broadband infrastructure 35 -13- LSB 5380SV (5) 85 rn/nh 13/ 25

S.F. 2324 installation project is proposed to receive prior approval for 1 eligibility for a tax exemption for the project pursuant to 2 this section. The governing body shall, by resolution, give 3 its prior approval if the project is in conformance with the 4 requirements of this subsection. Such prior approval shall 5 not entitle the owner to exemption from taxation until the 6 improvements have been completed and found to be qualified 7 real estate. However, if the proposal is not approved, the 8 person may submit an amended proposal for the governing body to 9 approve or reject. 10 (2) The application for an exemption shall be filed by the 11 owner of the property with the governing body of the city or 12 county in which the property is located by February 1 of the 13 assessment year for which the exemption is first claimed, but 14 not later than the year in which the value added pursuant to 15 the project is first assessed for taxation, or the following 16 two assessment years, in which case the exemption is allowed 17 for the total number of years in the exemption schedule. 18 However, upon the request of the owner at any time, the 19 governing body of the city or county may provide by resolution 20 that the owner may file an application by February 1 of any 21 other assessment year selected by the governing body in which 22 case the exemption is allowed for the number of years remaining 23 in the exemption schedule selected. The application shall 24 contain but not be limited to the following information: 25 (a) The nature of the improvement. 26 (b) The estimated cost of the improvement. 27 (c) The estimated or actual date of project completion. 28 (d) Certification that the installation was completed in 29 a targeted unserved service area or a targeted underserved 30 service area. 31 (3) The governing body of the city or county shall forward 32 for review all approved applications to the appropriate local 33 assessor by March 1 annually. The assessor shall proceed to 34 determine the actual value of the newly installed broadband 35 -14- LSB 5380SV (5) 85 rn/nh 14/ 25

S.F. 2324 infrastructure and shall certify the valuation determined to 1 the county auditor at the time of transmitting the assessment 2 rolls. After the tax exemption is granted, the local assessor 3 shall continue to grant the tax exemption for the remainder of 4 the time period in the exemption schedule, and applications for 5 exemption for succeeding years shall not be required. 6 f. The director of revenue may adopt rules pursuant to 7 chapter 17A for the interpretation and proper administration of 8 the exemption provided in this subsection. 9 DIVISION VII 10 SCHOOL INFORMATION TECHNOLOGY INFRASTRUCTURE 11 Sec. 22. Section 423F.3, subsection 6, Code 2014, is amended 12 to read as follows: 13 6. a. For purposes of this chapter , “school infrastructure” 14 means those activities authorized in section 423E.1, subsection 15 3, Code 2007 . 16 b. Additionally, “school infrastructure” includes the 17 payment or retirement of outstanding bonds previously 18 issued for school infrastructure purposes as defined in this 19 subsection , and the payment or retirement of bonds issued under 20 sections 423E.5 and 423F.4 . 21 c. Additionally, “school infrastructure” includes the 22 acquisition or installation of information technology 23 infrastructure. “Information technology infrastructure” means 24 the basic, underlying physical framework or system necessary 25 to deliver technology connectivity to a school district and to 26 network school buildings within a school district. 27 c. d. A school district that uses secure an advanced vision 28 for education fund moneys for school infrastructure shall 29 comply with the state building code in the absence of a local 30 building code. 31 DIVISION VIII 32 STEM INTERNSHIPS AND DIGITAL SKILLS WORKFORCE TRAINING 33 Sec. 23. Section 15.411, subsection 3, Code 2014, is amended 34 to read as follows: 35 -15- LSB 5380SV (5) 85 rn/nh 15/ 25

S.F. 2324 3. a. The authority shall establish and administer an 1 innovative businesses internship program with two components 2 for Iowa students. For purposes of this subsection , “Iowa 3 student” means a student of an Iowa community college, private 4 college, or institution of higher learning under the control 5 of the state board of regents, or a student who graduated from 6 high school in Iowa but now attends an institution of higher 7 learning outside the state of Iowa. 8 b. The purpose of the first component of the program is 9 to link Iowa students to small and medium sized Iowa firms 10 through internship opportunities. An Iowa employer may receive 11 financial assistance in an amount of one dollar for every 12 two dollars paid by the employer to an intern. The amount 13 of financial assistance shall not exceed three thousand one 14 hundred dollars for any single internship, or nine thousand 15 three hundred dollars for any single employer. In order to be 16 eligible to receive financial assistance under this subsection 17 paragraph , the employer must have five hundred or fewer 18 employees and must be an innovative business. The authority 19 shall encourage youth who reside in economically distressed 20 areas, youth adjudicated to have committed a delinquent act, 21 and youth transitioning out of foster care to participate in 22 the first component of the internship program. 23 c. (1) The purpose of the second component of the program 24 is to assist in placing Iowa students studying in the fields 25 of science, technology, engineering, and mathematics into 26 internships that lead to permanent positions with Iowa 27 employers. The authority shall collaborate with eligible 28 employers, including but not limited to innovative businesses, 29 to ensure that the interns hired are studying in such fields. 30 An Iowa employer may receive financial assistance in an amount 31 of one dollar for every dollar paid by the employer to an 32 intern attending an Iowa community college, private college, or 33 institution of higher learning under the control of the state 34 board of regents, and one dollar for every two dollars paid by 35 -16- LSB 5380SV (5) 85 rn/nh 16/ 25

S.F. 2324 the employer to an intern attending an institution of higher 1 learning outside the state. The amount of financial assistance 2 shall not exceed five thousand dollars per internship. The 3 authority may adopt rules to administer this component. 4 (2) The requirement to administer this component of the 5 internship program is contingent upon the provision of funding 6 for such purposes by the general assembly. 7 Sec. 24. SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS 8 INTERNSHIPS —— APPROPRIATION. There is appropriated from the 9 general fund of the state to the Iowa economic development 10 authority for the fiscal year beginning July 1, 2014, and 11 ending June 30, 2015, the following amount, or so much thereof 12 as is necessary, for the purposes designated: 13 For the funding of internships for students studying in the 14 fields of science, technology, engineering, and mathematics 15 with eligible Iowa employers as provided in section 15.411, as 16 amended in this Act: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 18 No more than 3 percent of the funds appropriated pursuant to 19 this section may be used by the authority for costs associated 20 with administration of the program as amended in this Act. 21 Notwithstanding section 8.33, moneys appropriated in this 22 section which remain unencumbered or unobligated at the end of 23 the fiscal year shall not revert but shall remain available for 24 expenditure for the purposes designated in subsequent fiscal 25 years. 26 Sec. 25. DIGITAL LITERACY AND WORKFORCE TRAINING PILOT 27 PROGRAM —— APPROPRIATION. 28 1. The department of education shall develop and issue 29 a request for proposals regarding selection of a digital 30 skills training provider to develop a digital literacy and 31 workforce training pilot program. The program shall provide 32 digital skills training, including training for teleworking and 33 coworking employment opportunities. The distribution and use 34 of any funds appropriated to administer the pilot program shall 35 -17- LSB 5380SV (5) 85 rn/nh 17/ 25

S.F. 2324 be determined by the department in coordination with the chief 1 information officer appointed pursuant to section 8B.2. 2 2. There is appropriated from the general fund of the 3 state to the department of education for the fiscal year 4 beginning July 1, 2014, and ending June 30, 2015, the following 5 amount, or so much thereof as is necessary, for the purposes 6 designated: 7 For implementation of the digital literacy and workforce 8 training pilot program to be developed pursuant to subsection 9 1: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,400,000 11 Notwithstanding section 8.33, moneys appropriated in this 12 section which remain unencumbered or unobligated at the end of 13 the fiscal year shall not revert but shall remain available for 14 expenditure for the purposes designated in subsequent fiscal 15 years. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill relates to the availability of broadband access 20 across the state and provides incentives to facilitate the 21 installation of broadband infrastructure. The bill is titled 22 the “Statewide Broadband Expansion Act”. 23 DIVISION I —— LEGISLATIVE INTENT. The bill provides that 24 the general assembly finds that the availability of broadband 25 access, and the infrastructure necessary to facilitate that 26 access, varies to a significant extent from one area of the 27 state to another, and that increasing access to broadband 28 throughout the state is vital so that every citizen, business 29 entity or organization, and community in this state can be 30 afforded the opportunity to fully integrate with and utilize 31 modern technology for educational, economic development and job 32 training, health care, and other purposes. 33 DIVISION II —— STATEWIDE BROADBAND COORDINATION. The bill 34 modifies provisions in Code chapter 8B, establishing the office 35 -18- LSB 5380SV (5) 85 rn/nh 18/ 25

S.F. 2324 of the chief information officer. The bill adds several 1 definitions to the Code chapter for use in the Code chapter 2 and in related provisions. The bill defines “broadband” to 3 mean a high-speed, high-capacity electronic transmission medium 4 that can carry data signals from multiple independent network 5 sources by establishing different bandwidth channels and that 6 is commonly used to deliver internet services to the public. 7 The bill defines “broadband infrastructure” to mean the 8 physical infrastructure used for the transmission of data via 9 broadband, including but not limited to any equipment, systems, 10 switches, routers, wire, cable, satellite, conduits, servers, 11 software, technology, base transceiver station sites, or other 12 means of transmission or communication, but not including 13 land, buildings, structures, improvements, or equipment not 14 directly used in the transmission of data. The bill defines 15 “communications service provider” to mean a service provider 16 that provides broadband service. Additionally, the bill 17 defines “targeted underserved service area” to mean a United 18 States census bureau census block located in Iowa within which 19 communications service providers do not offer or facilitate 20 broadband service at or above 30 megabits per second of 21 download speed or three megabits per second of upload speed. 22 Similarly, “targeted unserved service area” means a United 23 States census bureau census block located in Iowa within which 24 communications service providers do not offer or facilitate 25 broadband service at or above four megabits per second of 26 download speed or one megabit per second of upload speed. With 27 respect to both definitions, the bill provides that they may 28 be adjusted by the office by rule, and that the determination 29 of whether the download and upload speeds are being met shall 30 be by reference to broadband availability maps identified by 31 the office by rule. The bill directs the office to establish 32 procedures to handle challenges to claims that the threshold 33 download or upload speeds are being met, and provides that 34 service areas with more than one communications service 35 -19- LSB 5380SV (5) 85 rn/nh 19/ 25