Senate Study Bill 3119 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON ECONOMIC GROWTH BILL BY CHAIRPERSON SODDERS) 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 an appropriation. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5380XC (9) 85 rn/nh

S.F. _____ 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. 22 NEW SUBSECTION . 001. “Broadband infrastructure” means the 23 physical infrastructure used for the transmission of data via 24 broadband and which is integral to the provision of broadband 25 service, to be specified by the office by rule. 26 NEW SUBSECTION . 0001. “Communications service provider” 27 means a service provider that provides broadband service. 28 Sec. 4. Section 8B.1, subsection 1, Code 2014, is amended 29 to read as follows: 30 1. “Information technology” means computing and electronics 31 applications used to process and distribute information in 32 digital and other forms and includes information technology 33 devices, information technology services, infrastructure 34 services, broadband and broadband infrastructure, and 35 -1- LSB 5380XC (9) 85 rn/nh 1/ 23

S.F. _____ value-added services. 1 Sec. 5. Section 8B.1, Code 2014, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 8A. “Unserved or underserved communications 4 service area” means a designated area of the state within which 5 communications service providers do not offer or facilitate 6 broadband service at adequate or sufficient download and upload 7 speeds, as determined by the office by rule. 8 Sec. 6. Section 8B.3, subsection 1, Code 2014, is amended 9 to read as follows: 10 1. The office is created for the purpose of leading, 11 directing, managing, coordinating, and providing accountability 12 for the information technology resources of state government 13 and for coordinating statewide broadband availability and 14 access . 15 Sec. 7. Section 8B.4, Code 2014, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 14A. Streamline, consolidate, and 18 coordinate the access to and availability of broadband and 19 broadband infrastructure throughout the state, including but 20 not limited to the facilitation of public-private partnerships, 21 ensuring that all state agencies’ broadband and broadband 22 infrastructure policies and procedures are aligned, promoting 23 accountability regarding broadband and broadband infrastructure 24 availability and access, integrating broadband with cyber 25 security standards and rules, resolving issues which arise 26 with regard to implementation efforts, and coordinating 27 the statewide broadband coordinating council and broadband 28 information clearinghouse established in sections 8B.25 and 29 8B.26. 30 Sec. 8. Section 8B.9, Code 2014, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 5. An annual report regarding the status of 33 broadband expansion and coordination. 34 Sec. 9. NEW SECTION . 8B.25 Statewide broadband coordinating 35 -2- LSB 5380XC (9) 85 rn/nh 2/ 23

S.F. _____ council —— duties. 1 1. A statewide broadband coordinating council is 2 established to assist the chief information officer in 3 coordinating statewide broadband availability and access. The 4 council shall consist of the following members: 5 a. The chief information officer. 6 b. A representative from a school district that is 7 participating in a one-to-one mobile computing device program. 8 c. A representative of a municipality. 9 d. A representative of a county. 10 e. A member of the statewide interoperability board other 11 than the chief information officer. 12 f. A cable communications service provider. 13 g. A communications service provider other than a cable 14 communications service provider. 15 h. A representative from a nonprofit organization engaged in 16 economic development at the local level. 17 i. A member of the Iowa association of business and 18 industry. 19 j. A member of the technology association of Iowa. 20 k. A member representing the Iowa communications network. 21 l. The director of the department of homeland security and 22 emergency management. 23 m. A representative from a public utility. 24 2. The chief information officer shall serve as chairperson 25 of the council. Members other than the chief information 26 officer and the directors of the economic development 27 authority and the department of homeland security and emergency 28 management shall be appointed by the chief information officer. 29 Staff assistance shall be provided by the office. Members 30 of the council shall be reimbursed for actual and necessary 31 expenses incurred while engaged in their official duties and 32 shall receive per diem compensation at the level authorized 33 under section 7E.6, subsection 1, paragraph “a” . The membership 34 of the council shall comply with sections 69.16 and 69.16A. 35 -3- LSB 5380XC (9) 85 rn/nh 3/ 23

S.F. _____ 3. The council shall serve in an advisory capacity to the 1 chief information officer in fulfilling the responsibilities 2 described in section 8B.4, subsection 14A. 3 Sec. 10. NEW SECTION . 8B.26 Broadband information 4 clearinghouse. 5 A broadband information clearinghouse is established 6 to assemble, analyze, and make available best practices 7 information relating to current broadband and broadband 8 infrastructure-related strategies, tactics, and initiatives 9 that have a proven demonstrable and measurable, or potentially 10 promising, impact on broadband access, adoption, and use. 11 The clearinghouse shall be developed and maintained by the 12 chief information officer, in coordination with the statewide 13 broadband coordinating council, with functions which shall 14 include but not be limited to the following: 15 1. Integrating information regarding initiatives undertaken 16 at the federal level into the clearinghouse, including but not 17 limited to the establishment of the public safety broadband 18 network, cataloguing the status and impact of broadband-related 19 projects funded by the federal American Recovery and 20 Reinvestment Act, and the impact of universal service fund 21 changes implemented by the federal communications commission. 22 2. Coordinating with and incorporating existing state 23 resources and services relating to broadband and broadband 24 infrastructure and utilizing the assistance of broadband 25 stakeholders in the state including but not limited to the 26 science, technology, engineering, and mathematics advisory 27 council broadband committee, the Iowa communications network, 28 and the connect Iowa program. 29 3. Identifying options regarding the creation of standing 30 resources for stakeholders such as a fiberoptic database or a 31 fiberoptic network conduit installation coordination effort for 32 state-funded construction projects. 33 4. Developing a public internet site containing 34 clearinghouse resources and information and information on 35 -4- LSB 5380XC (9) 85 rn/nh 4/ 23

S.F. _____ rates established by the Iowa telecommunications and technology 1 commission for wholesale access to the Iowa communications 2 network and proposed adjustments to those rates, and promoting 3 the existence of the clearinghouse and availability of the 4 internet site. 5 Sec. 11. 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. 12. Section 8D.3, subsection 2, paragraph b, Code 2014, 35 -5- LSB 5380XC (9) 85 rn/nh 5/ 23

S.F. _____ 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. 13. 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. 14. Section 80.28, subsection 2, Code 2014, is amended 21 to read as follows: 22 2. The board shall consist of fifteen sixteen 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 -6- LSB 5380XC (9) 85 rn/nh 6/ 23

S.F. _____ 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 (5) One at-large member. 16 DIVISION III 17 IOWA COMMUNICATIONS NETWORK 18 COMMUNICATIONS SERVICE PROVIDER ACCESS 19 Sec. 15. NEW SECTION . 8D.21 Definitions. 20 For the purposes of this subchapter, “broadband” , “broadband 21 infrastructure” , “communications service provider” , and “unserved 22 or underserved communications service area” mean the same as 23 defined in section 8B.1. 24 Sec. 16. NEW SECTION . 8D.22 Communications service provider 25 access. 26 1. Wholesale access to network —— authority of 27 commission. Notwithstanding any contrary provisions of this 28 chapter related to access to the network, the commission may 29 enter into a contract to provide access to the network on a 30 wholesale basis to a communications service provider who is not 31 otherwise an authorized user as provided in this section. The 32 commission may establish by rule the manner in which a contract 33 entered into pursuant to this section shall be undertaken. 34 Contracts shall be coordinated with the office of the chief 35 -7- LSB 5380XC (9) 85 rn/nh 7/ 23

S.F. _____ information officer. 1 2. Access requirements —— limitations. Access to the 2 network pursuant to any contract entered into by the commission 3 pursuant to this section shall be subject to retention of 4 sufficient capacity for existing and future authorized user 5 demands. Access shall be provided solely for wholesale 6 transactions to communications service providers who are 7 engaged in providing broadband capacity at retail to citizens 8 and businesses in this state to facilitate the installation 9 and deployment of broadband infrastructure in unserved 10 or underserved communications service areas of the state. 11 Requirements and limitations regarding communications service 12 provider access pursuant to this subchapter shall be determined 13 by the commission by rule. 14 3. Rate determination —— rate adjustments —— hearings. 15 a. Rates applicable to wholesale access by communications 16 service providers pursuant to this section shall be determined 17 by the commission by rule, in consultation with the chief 18 information officer. The rates shall take into account and 19 reflect the following considerations: 20 (1) Establishment of a wholesale rate structure with 21 multiple pricing points determined based on the grouping 22 of similar installation characteristics to be identified 23 by the commission by rule, including but not limited to 24 size and demographic characteristics of the unserved or 25 underserved communications service area, availability of other 26 communications service providers, the type of communications 27 service installation proposed, and the communications service 28 modality being utilized. 29 (2) Incorporation of any and all costs attributable to 30 facilitating wholesale access. 31 b. Rates established pursuant to this section shall 32 be posted on the network’s internet site, and also on the 33 broadband information clearinghouse internet site developed 34 pursuant to section 8B.26. 35 -8- LSB 5380XC (9) 85 rn/nh 8/ 23

S.F. _____ c. Proposed rate adjustments shall be posted on the 1 network’s internet site and on the broadband information 2 clearinghouse internet site developed pursuant to section 3 8B.26, and shall be subject to the following public hearing, 4 decision-making, and appeals process: 5 (1) Three public hearings on the proposed rate adjustment 6 shall be held at different locations within the unserved 7 or underserved communications service area impacted by the 8 proposed adjustment. The hearings shall be conducted thirty 9 days following the rate adjustment announcement, sixty days 10 following the announcement, and ninety days following the 11 announcement. 12 (2) Following the third public hearing, the commission 13 shall convene to discuss the status of the proposed rate 14 adjustment, and shall render and post a decision regarding the 15 proposed adjustment within fifteen days following the date of 16 the commission’s meeting. 17 (3) Any party wishing to appeal the commission’s decision 18 may file such an appeal with the executive council within 19 thirty days following the posting of the commission’s decision. 20 (4) Rate changes shall become effective within thirty days 21 following approval by the commission in the event an appeal is 22 not filed, and immediately after the executive council renders 23 a decision in favor of the adjustment in the event an appeal is 24 filed. 25 DIVISION IV 26 FINANCIAL INCENTIVES 27 Sec. 17. NEW SECTION . 16.66 Broadband revolving loan 28 program. 29 1. The authority shall establish and administer a broadband 30 revolving loan program to provide low-interest loans to 31 broadband and telecommunications businesses to expand broadband 32 access in the state. For the purposes of this section, 33 “broadband” means the same as defined in section 8B.1. 34 2. In awarding loans to businesses to invest in expanding 35 -9- LSB 5380XC (9) 85 rn/nh 9/ 23

S.F. _____ broadband access, the authority may consider the following: 1 a. The business’s relationship to the community. 2 b. The location of the community in which the business 3 operates and the need for broadband access in the community. 4 c. The overall geographic diversity of the applicants for 5 loans, including urban and rural diversity. 6 d. Any other information the authority deems relevant. 7 3. The authority may accept, reject, or defer a business’s 8 application for a loan under this section. 9 4. In awarding loans, the authority shall ensure that 10 businesses that seek to expand broadband access to communities 11 that are unserved or underserved by broadband technology shall 12 receive loans prior to awarding loans to businesses that seek 13 to expand broadband access to communities that have adequate 14 service. 15 5. A loan awarded under the program to any single business 16 shall not exceed two hundred fifty thousand dollars. 17 6. The authority shall enter into an agreement with a 18 business selected to receive a loan pursuant to this section 19 for purposes of ensuring the program is administered pursuant 20 to the requirements of this section. The agreement shall set 21 the loan period and interest rate of the loan. 22 7. a. The authority may seek immediate repayment or 23 recapture of the loan awarded pursuant to this section as 24 provided in paragraph “b” . 25 b. If, after receiving a loan from the authority pursuant to 26 this section, the business fails to use the awarded moneys for 27 the purposes described in subsection 1, all or a portion of the 28 loan received is subject to immediate repayment or recapture. 29 c. All repayments, recaptures, and interest on loans 30 awarded under the program shall be remitted to the authority 31 to be deposited in the broadband revolving loan program fund 32 established in section 16.67. 33 8. The authority shall have the power to bond as necessary 34 to carry out the purposes of the broadband revolving loan 35 -10- LSB 5380XC (9) 85 rn/nh 10/ 23

S.F. _____ program. The bonds shall be issued in the same manner as, and 1 under the same conditions and restrictions of, section 16.26. 2 Sec. 18. NEW SECTION . 16.67 Broadband revolving loan 3 program fund. 4 1. A broadband revolving loan program fund is created within 5 the authority consisting of moneys appropriated by the general 6 assembly and any other moneys available to and obtained or 7 accepted by the authority for placement in the fund. 8 2. Payments of interest, repayments of moneys loaned 9 pursuant to section 16.66, and recaptures of loans under 10 section 16.66, shall be deposited in the fund. 11 3. The fund shall be used to provide low-interest loans 12 under the broadband revolving loan program established in 13 section 16.66. 14 4. Moneys in the fund are not subject to section 8.33. 15 Notwithstanding section 12C.7, subsection 2, interest or 16 earnings on moneys in the fund shall be credited to the fund. 17 DIVISION V 18 INCOME TAX INCENTIVES 19 Sec. 19. NEW SECTION . 422.11C Broadband infrastructure tax 20 credit. 21 1. For purposes of this section, “broadband infrastructure” , 22 “communications service provider” , and “unserved or underserved 23 communications service area” mean the same as defined in section 24 8B.1. 25 2. The taxes imposed under this division, less the credits 26 allowed under section 422.12, shall be reduced by a broadband 27 infrastructure tax credit equal to three percent of the 28 amount expended by a communications service provider for a 29 new installation of broadband infrastructure commenced on or 30 after July 1, 2014, not to exceed a maximum of seven hundred 31 fifty thousand dollars per installation. A taxpayer claiming a 32 credit under this section shall certify prior to commencement 33 of the installation that the broadband infrastructure 34 installation will take place within an area meeting the 35 -11- LSB 5380XC (9) 85 rn/nh 11/ 23

S.F. _____ definition of an unserved or underserved communications service 1 area. Any credit in excess of the tax liability for the tax 2 year shall not be refunded, but may be credited to the tax 3 liability for the following ten tax years or until depleted, 4 whichever is earlier. 5 3. An individual may claim the tax credit allowed a 6 partnership, limited liability company, S corporation, estate, 7 or trust electing to have the income taxed directly to the 8 individual. The amount claimed by the individual shall be 9 based upon the pro rata share of the individual’s earnings of a 10 partnership, limited liability company, S corporation, estate, 11 or trust. 12 4. The director of revenue may adopt rules pursuant to 13 chapter 17A for the interpretation and proper administration of 14 the credit provided in this section. 15 Sec. 20. Section 422.33, Code 2014, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 31. The taxes imposed under this division 18 shall be reduced by a broadband infrastructure tax credit 19 allowed under section 422.11C. 20 DIVISION VI 21 PROPERTY TAX INCENTIVES 22 Sec. 21. Section 427.1, Code 2014, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 40. Broadband infrastructure. Broadband 25 infrastructure to the extent provided in this subsection. For 26 the purposes of this subsection, “broadband infrastructure” and 27 “unserved or underserved communications service area” mean the 28 same as defined in section 8B.1. 29 a. This exemption shall apply to the new installation 30 of broadband infrastructure completed on or after July 1, 31 2014, to and including December 31, 2018, in an unserved 32 or underserved communications service area, and shall be 33 available for the twenty-year period following the date the new 34 installation was completed. A person claiming an exemption 35 -12- LSB 5380XC (9) 85 rn/nh 12/ 23

S.F. _____ under this subsection shall certify that the installation was 1 completed within an area meeting the definition of unserved or 2 underserved communications service area prior to installation 3 of the broadband infrastructure. 4 b. If the broadband infrastructure is assessed with other 5 property as a unit by the department of revenue pursuant to 6 sections 428.24 to 428.29 or chapter 433, this exemption shall 7 be limited to the value added by the broadband infrastructure 8 determined as of the assessment date and the exemption shall 9 be applied prior to any other exemption applicable to the unit 10 value. 11 c. The director of revenue may adopt rules pursuant to 12 chapter 17A for the interpretation and proper administration of 13 the exemption provided in this subsection. 14 DIVISION VII 15 SCHOOL INFORMATION TECHNOLOGY INFRASTRUCTURE 16 Sec. 22. Section 423F.3, subsection 6, Code 2014, is amended 17 to read as follows: 18 6. a. For purposes of this chapter , “school infrastructure” 19 means those activities authorized in section 423E.1, subsection 20 3, Code 2007 . 21 b. Additionally, “school infrastructure” includes the 22 payment or retirement of outstanding bonds previously 23 issued for school infrastructure purposes as defined in this 24 subsection , and the payment or retirement of bonds issued under 25 sections 423E.5 and 423F.4 . 26 c. Additionally, “school infrastructure” includes the 27 acquisition or installation of information technology 28 infrastructure. “Information technology infrastructure” means 29 the basic, underlying physical framework or system necessary 30 to deliver technology connectivity to a school district and to 31 network school buildings within a school district. 32 c. d. A school district that uses secure an advanced vision 33 for education fund moneys for school infrastructure shall 34 comply with the state building code in the absence of a local 35 -13- LSB 5380XC (9) 85 rn/nh 13/ 23

S.F. _____ building code. 1 DIVISION VIII 2 STEM INTERNSHIPS 3 Sec. 23. Section 15.411, subsection 3, Code 2014, is amended 4 to read as follows: 5 3. a. The authority shall establish and administer an 6 innovative businesses internship program with two components 7 for Iowa students. For purposes of this subsection , “Iowa 8 student” means a student of an Iowa community college, private 9 college, or institution of higher learning under the control 10 of the state board of regents, or a student who graduated from 11 high school in Iowa but now attends an institution of higher 12 learning outside the state of Iowa. 13 b. The purpose of the first component of the program is 14 to link Iowa students to small and medium sized Iowa firms 15 through internship opportunities. An Iowa employer may receive 16 financial assistance in an amount of one dollar for every 17 two dollars paid by the employer to an intern. The amount 18 of financial assistance shall not exceed three thousand one 19 hundred dollars for any single internship, or nine thousand 20 three hundred dollars for any single employer. In order to be 21 eligible to receive financial assistance under this subsection 22 paragraph , the employer must have five hundred or fewer 23 employees and must be an innovative business. The authority 24 shall encourage youth who reside in economically distressed 25 areas, youth adjudicated to have committed a delinquent act, 26 and youth transitioning out of foster care to participate in 27 the first component of the internship program. 28 c. (1) The purpose of the second component of the program 29 is to assist in placing Iowa students studying in the fields 30 of science, technology, engineering, and mathematics into 31 internships that lead to permanent positions with Iowa 32 employers. The authority shall collaborate with eligible 33 employers, including but not limited to innovative businesses, 34 to ensure that the interns hired are studying in such fields. 35 -14- LSB 5380XC (9) 85 rn/nh 14/ 23

S.F. _____ An Iowa employer may receive financial assistance in an amount 1 of one dollar for every dollar paid by the employer to an 2 intern attending an Iowa community college, private college, or 3 institution of higher learning under the control of the state 4 board of regents, and one dollar for every two dollars paid by 5 the employer to an intern attending an institution of higher 6 learning outside the state. The amount of financial assistance 7 shall not exceed five thousand dollars per internship. The 8 authority may adopt rules to administer this component. 9 (2) The requirement to administer this component of the 10 internship program is contingent upon the provision of funding 11 for such purposes by the general assembly. 12 Sec. 24. SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS 13 INTERNSHIPS —— APPROPRIATION. There is appropriated from the 14 general fund of the state to the Iowa economic development 15 authority for the fiscal year beginning July 1, 2014, and 16 ending June 30, 2015, the following amount, or so much thereof 17 as is necessary, for the purposes designated: 18 For the funding of internships for students studying in the 19 fields of science, technology, engineering, and mathematics 20 with eligible Iowa employers as provided in section 15.411, as 21 amended in this Act: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 23 No more than 3 percent of the funds appropriated pursuant to 24 this section may be used by the authority for costs associated 25 with administration of the program as amended in this Act. 26 Notwithstanding section 8.33, moneys appropriated in this 27 section which remain unencumbered or unobligated at the end of 28 the fiscal year shall not revert but shall remain available for 29 expenditure for the purposes designated in subsequent fiscal 30 years. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill provides for the expansion of the availability 35 -15- LSB 5380XC (9) 85 rn/nh 15/ 23

S.F. _____ of broadband access across the state, and includes income tax 1 credits for broadband infrastructure installations. The bill 2 is titled the “Statewide Broadband Expansion Act”. 3 DIVISION I —— LEGISLATIVE INTENT. The bill provides that 4 the general assembly finds that the availability of broadband 5 access, and the infrastructure necessary to facilitate that 6 access, varies to a significant extent from one area of the 7 state to another, and that increasing access to broadband 8 throughout the state is vital so that every citizen, business 9 entity or organization, and community in this state can be 10 afforded the opportunity to fully integrate with and utilize 11 modern technology for educational, economic development and job 12 training, health care, and other purposes. 13 DIVISION II —— STATEWIDE BROADBAND COORDINATION. The bill 14 modifies provisions in Code chapter 8B, establishing the office 15 of the chief information officer. The bill adds several 16 definitions to the Code chapter for use in the Code chapter 17 and in related provisions. The bill defines “broadband” to 18 mean a high-speed, high-capacity electronic transmission 19 medium that can carry data signals from multiple independent 20 network sources by establishing different bandwidth channels. 21 The bill defines “broadband infrastructure” to mean the 22 physical infrastructure used for the transmission of data 23 via broadband and integral to the provision of broadband 24 service, to be specified by the office by rule. The bill 25 defines “communications service provider” to mean a service 26 provider that provides broadband service. Additionally, the 27 bill adds “broadband and broadband infrastructure” to an 28 existing definition of “information technology” within the Code 29 chapter. Further, the bill defines “unserved or underserved 30 communications service area” to mean a designated area of the 31 state within which communications service providers do not 32 offer or facilitate broadband service at adequate or sufficient 33 download and upload speeds, as determined by the office by 34 rule. 35 -16- LSB 5380XC (9) 85 rn/nh 16/ 23

S.F. _____ The bill adds additional powers and duties for the chief 1 information officer relating to broadband and broadband 2 infrastructure. The bill provides that the chief information 3 officer shall streamline, consolidate, and coordinate 4 the access to and availability of broadband and broadband 5 infrastructure throughout the state, including but not limited 6 to the facilitation of public-private partnerships, ensuring 7 that all state agencies’ broadband and broadband infrastructure 8 policies and procedures are aligned, promoting accountability 9 regarding broadband and broadband infrastructure availability 10 and access, integrating broadband with cyber security 11 standards and rules, resolving issues which arise with regard 12 to implementation efforts, and coordinating the statewide 13 broadband coordinating council and broadband information 14 clearinghouse established in the bill. The bill also directs 15 the chief information officer to submit an annual report 16 regarding the status of broadband expansion and coordination. 17 Additionally, the bill establishes a statewide broadband 18 coordinating council to assist the chief information officer 19 in an advisory capacity in coordinating statewide broadband 20 availability and access. The council shall consist of 21 the chief information officer, a representative from a 22 school district which is participating in a one-to-one 23 mobile computing device program, a representative of a 24 municipality, a representative of a county, a member of 25 the statewide interoperability board other than the chief 26 information officer, a cable communications service provider, 27 a communications service provider other than a cable 28 communications service provider, a representative from a 29 nonprofit organization engaged in economic development at the 30 local level, a member of the Iowa association of business and 31 industry, a member of the technology association of Iowa, 32 a member representing the Iowa communications network, the 33 director of the department of homeland security and emergency 34 management, and a representative from a public utility. The 35 -17- LSB 5380XC (9) 85 rn/nh 17/ 23

S.F. _____ bill designates the chief information officer to serve as 1 chairperson of the commission. 2 Further, the bill establishes a broadband information 3 clearinghouse to assemble, analyze, and make available best 4 practices information relating to current broadband and 5 broadband infrastructure-related strategies, tactics, and 6 initiatives that have a proven demonstrable and measurable, or 7 potentially promising, impact on broadband access, adoption, 8 and use. The bill provides that the clearinghouse shall be 9 developed and maintained by the chief information officer, 10 in coordination with the statewide broadband coordinating 11 council, with several functions. Specified functions include 12 integrating information regarding initiatives undertaken 13 at the federal level into the clearinghouse, coordinating 14 with and incorporating existing state resources and services 15 relating to broadband and broadband infrastructure, utilizing 16 state broadband stakeholders including but not limited to the 17 science, technology, engineering, and mathematics advisory 18 council broadband committee, the Iowa communications network, 19 and the connect Iowa program, identifying options regarding 20 the creation of standing resources for stakeholders such 21 as a fiberoptic database or a fiberoptic network conduit 22 installation coordination effort for state-funded construction 23 projects, and developing a public internet site containing 24 clearinghouse resources and information and Iowa communications 25 network wholesale access rates and proposed rate adjustments, 26 and promoting the existence of the clearinghouse and 27 availability of the internet site. 28 The bill also adds the chief information officer to the 29 information technology and telecommunications commission which 30 oversees the operation of the Iowa communications network and 31 to the statewide interoperable communications system board 32 established in Code section 80.28. 33 DIVISION III —— IOWA COMMUNICATIONS NETWORK COMMUNICATIONS 34 SERVICE PROVIDER ACCESS. The bill authorizes the commission 35 -18- LSB 5380XC (9) 85 rn/nh 18/ 23

S.F. _____ to enter into a contract to provide access to the network 1 on a wholesale basis to a communications service provider 2 who is not otherwise an authorized user of the network. The 3 commission shall establish by rule the manner in which such 4 a contract is entered into, and such contracts are required 5 to be coordinated with the office of the chief information 6 officer. The bill provides that access to the network shall 7 be subject to retention of sufficient capacity for existing 8 and future authorized user demands, and provided solely for 9 wholesale transactions to communications service providers 10 who are engaged in providing broadband capacity at retail to 11 citizens and businesses in Iowa to facilitate the installation 12 and deployment of broadband infrastructure in unserved or 13 underserved communications service areas. The bill specifies 14 that requirements and limitations regarding communications 15 service provider access shall be determined by the commission 16 by rule. 17 The bill provides that rates applicable to wholesale access 18 shall be determined by the commission by rule, in consultation 19 with the chief information officer. The rates are required to 20 take into account and reflect a rate structure with multiple 21 pricing points determined based on the grouping of similar 22 installation characteristics to be identified by the commission 23 by rule, and to incorporate any and all costs attributable to 24 facilitating wholesale access. The bill provides that the 25 rates and proposed rate adjustments shall be posted on the 26 network’s internet site, in addition to being posted on the 27 broadband information clearinghouse internet site. In the 28 event of a proposed rate adjustment, the bill requires three 29 public hearings to be held at different locations within the 30 unserved or underserved communications service area impacted 31 by the proposed adjustment, to be conducted 30 days following 32 the rate adjustment announcement, 60 days following the 33 announcement, and 90 days following the announcement. The 34 bill provides that following the third public hearing, the 35 -19- LSB 5380XC (9) 85 rn/nh 19/ 23

S.F. _____ commission shall convene to discuss the status of the proposed 1 rate adjustment, and shall render and post a decision regarding 2 the proposed adjustment within 15 days following the date of 3 the commission’s meeting. The bill provides that any party 4 wishing to appeal the commission’s decision may file such an 5 appeal with the executive council within 30 days following the 6 posting of the commission’s decision, and that rate changes 7 shall become effective within 30 days following approval by the 8 commission in the event an appeal is not filed, and immediately 9 after the executive council renders a decision in favor of the 10 adjustment in the event an appeal is filed. 11 DIVISION IV —— FINANCIAL INCENTIVES. Division IV of the bill 12 requires the Iowa finance authority to establish and administer 13 a broadband revolving loan program to provide low-interest 14 loans to broadband and telecommunications businesses to expand 15 broadband access in the state. 16 When determining whether to award a loan to a business, 17 the authority may consider factors specified in the bill and 18 other information the authority deems relevant. When awarding 19 loans, the authority must ensure that businesses seeking to 20 expand broadband access in communities that are unserved or 21 underserved by broadband technology shall receive loans prior 22 to awarding loans to businesses seeking to expand broadband 23 access into communities that have adequate service. 24 The bill provides that a loan awarded under the program to 25 any single business may not exceed $250,000. 26 The bill requires the authority to enter into an agreement 27 with businesses selected to receive loans under the program 28 to ensure compliance with the program’s requirements. The 29 agreement must also set the loan period and the interest rate 30 of the loan. 31 The bill authorizes the authority to seek immediate 32 repayment or recapture of a loan awarded pursuant to the 33 program if the business fails to use the loan moneys to expand 34 broadband access in the state. All payments, repayments, or 35 -20- LSB 5380XC (9) 85 rn/nh 20/ 23