House File 576 - Introduced HOUSE FILE 576 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 104) A BILL FOR An Act relating to and providing for the coordination and 1 facilitation of broadband access in targeted areas of the 2 state, including property tax incentives for broadband 3 infrastructure installation, a broadband grant program and 4 fund, and including applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1592HV (4) 86 ad/sc

H.F. 576 DIVISION I 1 LEGISLATIVE INTENT 2 Section 1. SHORT TITLE. This Act shall be known and may be 3 cited as the “Connecting Iowa Farms, Schools, and Communities 4 Act”. 5 Sec. 2. LEGISLATIVE INTENT. The general assembly finds 6 and declares that increasing the extent and availability of 7 broadband infrastructure throughout the state facilitates the 8 provision of internet access to citizens, farms, businesses, 9 and communities at speeds that promote economic development, 10 employment, enhanced access to goods and services, increased 11 educational and training opportunities, faster access to 12 government services and health care, and improved overall 13 information and community access. 14 DIVISION II 15 STATEWIDE BROADBAND COORDINATION 16 Sec. 3. Section 8B.1, Code 2015, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 01. “Broadband” means a high-speed, 19 high-capacity electronic transmission medium, including fixed 20 wireless and mobile wireless mediums, that can carry data 21 signals from independent network sources by establishing 22 different bandwidth channels and that is commonly used to 23 deliver internet services to the public. 24 NEW SUBSECTION . 001. “Broadband infrastructure” means 25 the physical infrastructure used for the transmission of data 26 that provides broadband services. “Broadband infrastructure” 27 does not include land, buildings, structures, improvements, or 28 equipment not directly used in the transmission of data via 29 broadband. 30 NEW SUBSECTION . 0001. “Communications service provider” 31 means a service provider that provides broadband service. 32 NEW SUBSECTION . 00001. “Crop operation” means the same as 33 defined in section 717A.1. 34 NEW SUBSECTION . 7A. “Targeted service area” means a United 35 -1- LSB 1592HV (4) 86 ad/sc 1/ 18

H.F. 576 States census bureau census block located in this state, 1 including any crop operation located within the census block, 2 within which no communications service provider offers or 3 facilitates broadband service at or above twenty-five megabits 4 per second of download speed and three megabits per second of 5 upload speed. 6 Sec. 4. Section 8B.1, subsection 1, Code 2015, is amended 7 to read as follows: 8 1. “Information technology” means computing and electronics 9 applications used to process and distribute information in 10 digital and other forms and includes information technology 11 devices, information technology services, infrastructure 12 services, broadband and broadband infrastructure, and 13 value-added services. 14 Sec. 5. Section 8B.3, subsection 1, Code 2015, is amended 15 to read as follows: 16 1. The office is created for the purpose of leading, 17 directing, managing, coordinating, and providing accountability 18 for the information technology resources of state government 19 and for coordinating statewide broadband availability and 20 access . 21 Sec. 6. Section 8B.4, Code 2015, is amended by adding the 22 following new subsections: 23 NEW SUBSECTION . 14A. Streamline, consolidate, and 24 coordinate the access to and availability of broadband and 25 broadband infrastructure throughout the state, including but 26 not limited to the facilitation of public-private partnerships, 27 ensuring that all state agencies’ broadband and broadband 28 infrastructure policies and procedures are aligned, resolving 29 issues which arise with regard to implementation efforts, 30 and collecting data and developing metrics or standards 31 against which the data may be measured and evaluated regarding 32 broadband infrastructure installation and deployment. 33 NEW SUBSECTION . 14B. Administer the broadband grant 34 program pursuant to section 8B.11. 35 -2- LSB 1592HV (4) 86 ad/sc 2/ 18

H.F. 576 NEW SUBSECTION . 14C. Coordinate the fiberoptic network 1 conduit installation program established in section 8B.25. 2 Sec. 7. Section 8B.9, Code 2015, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 5. An annual report regarding the status 5 of broadband expansion and coordination, the connecting 6 Iowa farms, schools, and communities broadband grant program 7 established under section 8B.11, and the adequacy of the speed 8 set in the definition of targeted service area in section 8B.1. 9 Sec. 8. NEW SECTION . 8B.10 Targeted service areas —— 10 determination —— criteria. 11 1. The determination of whether a communications service 12 provider offers or facilitates broadband service meeting the 13 download or upload speeds specified in the definition of 14 targeted service area in section 8B.1 shall be determined or 15 ascertained by reference to broadband availability maps or data 16 sources that are widely accepted for accuracy and available for 17 public review and comment and that are identified by the office 18 by rule. 19 2. The office shall establish procedures to allow 20 challenges to the office’s finding on whether an area meets the 21 definition of targeted service area. 22 Sec. 9. NEW SECTION . 8B.11 Connecting Iowa farms, schools, 23 and communities —— broadband grants —— fund. 24 1. The office shall administer a broadband grant program 25 to award grants to communication service providers that reduce 26 or eliminate targeted service areas by installing broadband 27 infrastructure in targeted service areas in accordance with 28 this section. 29 2. a. A connecting Iowa farms, schools, and communities 30 broadband grant fund is established in the state treasury 31 under the authority of the office. The fund shall consist of 32 moneys appropriated to the fund or appropriated to the office 33 for purposes of the grant program, moneys available to and 34 obtained or accepted by the office from the federal government 35 -3- LSB 1592HV (4) 86 ad/sc 3/ 18

H.F. 576 or private sources, or other funds available to the office 1 for purposes of the grant program. Moneys in the fund are 2 appropriated to the office to be used for the grant program. 3 b. The office shall use moneys in the fund to provide grants 4 to communication service providers pursuant to this section. 5 The office shall use moneys in the fund to leverage available 6 federal moneys. 7 c. Notwithstanding section 8.33, moneys in the fund 8 that remain unencumbered or unobligated at the close of the 9 fiscal year shall not revert but shall remain available for 10 expenditure for the purposes designated until the close of the 11 succeeding fiscal year. 12 3. Communication service providers may apply to the office 13 for a grant pursuant to this section for the installation of 14 broadband infrastructure that facilitates broadband service 15 at or above twenty-five megabits per second of download speed 16 and three megabits per second of upload speed in targeted 17 service areas. The office shall include representatives from 18 schools, communities, agriculture, industry, and other areas 19 as appropriate to review and recommend grant awards. The 20 office shall conduct an open application review process and 21 include a public internet site for applications, results, and 22 performance. 23 4. a. The office shall award grants on a competitive basis 24 after considering the following: 25 (1) The relative need for broadband infrastructure in the 26 area and the existing broadband service speeds. 27 (2) The geographic diversity of the project areas of all the 28 applicants. 29 (3) The economic impact of the project to the area. 30 (4) The applicant’s total proposed budget for the project, 31 including the amount or percentage of local match, if any. 32 (5) Other factors the office deems relevant. 33 b. Except as otherwise provided in this section, the office 34 shall not evaluate applications based on the office’s knowledge 35 -4- LSB 1592HV (4) 86 ad/sc 4/ 18

H.F. 576 of the applicant except for the information provided in the 1 application. 2 5. The office shall not award a grant pursuant to this 3 section that exceeds ten percent of the communication service 4 provider’s project cost. 5 6. The office shall adopt rules pursuant to chapter 17A, 6 including but not limited to the broadband grant program 7 process, management, and measurements as deemed necessary by 8 the office. 9 Sec. 10. NEW SECTION . 8B.25 Fiberoptic network conduit 10 installation program. 11 1. For the purposes of this section, “fiberoptic network 12 conduit” means a pipe or duct used to enclose fiberoptic cable 13 facilities buried alongside a roadway or surface mounted on 14 a bridge, overpass, or other facility where placement below 15 ground is impossible or impractical. 16 2. The office shall lead and coordinate a program to 17 provide for the installation of fiberoptic network conduit 18 where such conduit does not exist. The chief information 19 officer shall consult and coordinate with the department of 20 administrative services, the department of transportation, the 21 Iowa communications network, and other agencies and entities 22 as determined appropriate to ensure that the opportunity is 23 provided to lay or install fiberoptic network conduit wherever 24 a state-funded construction project involves trenching, boring, 25 a bridge, a roadway, or opening of the ground, or alongside any 26 state-owned infrastructure. 27 3. Contingent upon the provision of funding for such 28 purposes by the general assembly, the office may contract with 29 a third party to manage, lease, install, or otherwise provide 30 fiberoptic network conduit access for projects described in 31 this section. This section shall not prohibit the office from 32 purchasing or installing fiberoptic cable within any fiberoptic 33 network conduit installed pursuant to the program. 34 Sec. 11. NEW SECTION . 8B.26 Broadband permitting process 35 -5- LSB 1592HV (4) 86 ad/sc 5/ 18

H.F. 576 —— expeditious response. 1 Notwithstanding any other provision to the contrary, a 2 political subdivision vested with permitting authority shall 3 approve, approve with modification, or disapprove nonwireless, 4 broadband-related permits within sixty business days following 5 the submission of a permit application and fee. In the event 6 that no action is taken during the sixty-day period, the 7 application shall be deemed approved. 8 Sec. 12. Section 8D.3, subsection 2, paragraph a, Code 2015, 9 is amended to read as follows: 10 a. The commission is composed of five voting members 11 appointed by the governor and subject to confirmation by the 12 senate. Members Voting members of the commission shall not 13 serve in any manner or be employed by an authorized user of the 14 network or by an entity seeking to do or doing business with 15 the network. 16 (1) The governor shall appoint a voting member as the 17 chairperson of the commission from the five voting members 18 appointed by the governor , subject to confirmation by the 19 senate. 20 (2) Members Voting members of the commission shall serve 21 six-year staggered terms as designated by the governor and 22 appointments to the commission are subject to the requirements 23 of sections 69.16 , 69.16A , and 69.19 . Vacancies shall be 24 filled by the governor for the duration of the unexpired term. 25 (3) The salary of the voting members of the commission shall 26 be twelve thousand dollars per year, except that the salary 27 of the chairperson shall be seventeen thousand dollars per 28 year. Members Voting members of the commission shall also be 29 reimbursed for all actual and necessary expenses incurred in 30 the performance of duties as members. The benefits and salary 31 paid to the voting members of the commission shall be adjusted 32 annually equal to the average of the annual pay adjustments, 33 expense reimbursements, and related benefits provided under 34 collective bargaining agreements negotiated pursuant to chapter 35 -6- LSB 1592HV (4) 86 ad/sc 6/ 18

H.F. 576 20 . 1 Sec. 13. Section 8D.3, subsection 2, paragraph b, Code 2015, 2 is amended to read as follows: 3 b. In addition to the members appointed by the governor, 4 the The auditor of state or the auditor’s designee and the 5 chief information officer appointed pursuant to section 8B.2 6 or the chief information officer’s designee shall serve as a 7 nonvoting, ex officio member members of the commission. 8 Sec. 14. Section 8D.4, Code 2015, is amended to read as 9 follows: 10 8D.4 Executive director appointed. 11 The commission , in consultation with the director of 12 the department of administrative services and the chief 13 information officer, shall appoint an executive director of 14 the commission, subject to confirmation by the senate. Such 15 individual shall not serve as a member of the commission. 16 The executive director shall serve at the pleasure of the 17 commission. The executive director shall be selected primarily 18 for administrative ability and knowledge in the field, without 19 regard to political affiliation. The governor shall establish 20 the salary of the executive director within range nine as 21 established by the general assembly. The salary and support of 22 the executive director shall be paid from funds deposited in 23 the Iowa communications network fund. 24 Sec. 15. Section 80.28, subsection 2, Code 2015, is amended 25 to read as follows: 26 2. The board shall consist of fifteen seventeen voting 27 members, as follows: 28 a. The following members representing state agencies: 29 (1) One member representing the department of public 30 safety. 31 (2) One member representing the state department of 32 transportation. 33 (3) One member representing the department of homeland 34 security and emergency management. 35 -7- LSB 1592HV (4) 86 ad/sc 7/ 18

H.F. 576 (4) One member representing the department of corrections. 1 (5) One member representing the department of natural 2 resources. 3 (6) One member representing the Iowa department of public 4 health. 5 (7) One member representing the office of the chief 6 information officer created in section 8B.2. 7 b. The governor shall solicit and consider recommendations 8 from professional or volunteer organizations in appointing the 9 following members: 10 (1) Two members who are representatives from municipal 11 police departments. 12 (2) Two members who are representatives of sheriff’s 13 offices. 14 (3) Two members who are representatives from fire 15 departments. One of the members shall be a volunteer fire 16 fighter and the other member shall be a paid fire fighter. 17 (4) Two members who are law communication center managers 18 employed by state or local government agencies. 19 (05) One member who is an emergency medical care provider 20 as defined in section 147A.1. 21 (5) One at-large member. 22 DIVISION III 23 PROPERTY TAX INCENTIVES AND ASSESSMENT 24 Sec. 16. Section 421.1A, subsection 3, Code 2015, is amended 25 to read as follows: 26 3. At the election of a property owner or aggrieved taxpayer 27 or an appellant described in section 441.42 , the property 28 assessment appeal board shall review any final decision, 29 finding, ruling, determination, or order of a local board of 30 review relating to protests of an assessment, valuation, or 31 application of an equalization order , or any final decision 32 of the county board of supervisors relating to denial of an 33 application for a property tax exemption pursuant to section 34 427.1, subsection 40 . 35 -8- LSB 1592HV (4) 86 ad/sc 8/ 18

H.F. 576 Sec. 17. Section 421.1A, subsection 4, Code 2015, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . 0b. Affirm or reverse a final decision 3 of a county board of supervisors relating to denial of an 4 application for a property tax exemption under section 427.1, 5 subsection 40. 6 Sec. 18. Section 427.1, Code 2015, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 40. Broadband infrastructure. 9 a. The owner of broadband infrastructure shall be entitled 10 to an exemption from taxation to the extent provided in this 11 subsection. For the purposes of this subsection, “broadband 12 infrastructure” and “targeted service area” mean the same as 13 defined in section 8B.1. 14 b. The exemption shall apply to the installation of 15 broadband infrastructure that facilitates broadband service 16 at or above twenty-five megabits per second of download speed 17 and three megabits per second of upload speed commenced and 18 completed on or after July 1, 2014, in a targeted service area, 19 and used to deliver internet services to the public. A person 20 claiming an exemption under this subsection shall certify to 21 the local assessor prior to commencement of the installation 22 that the broadband installation will take place within a 23 targeted service area. 24 c. The tax exemption shall be a one hundred percent 25 exemption from taxation for a period of ten years in an 26 amount equal to the actual value added by installation of the 27 broadband infrastructure. 28 d. For companies assessed by the department of revenue 29 pursuant to chapter 433, the exemption shall be limited to 30 an amount equal to the actual value added by installation of 31 the broadband infrastructure as of the assessment date as 32 determined by the department and the exemption shall be applied 33 prior to any other exemption applicable to the unit value, as 34 determined under that chapter. 35 -9- LSB 1592HV (4) 86 ad/sc 9/ 18

H.F. 576 e. (1) An application for an exemption shall be filed by 1 the owner of the property with the county board of supervisors 2 of each county in which the property is located by February 3 1 of the year in which the broadband infrastructure is first 4 assessed for taxation, or the following two assessment years, 5 and in each case the exemption is allowed for ten years. 6 (2) In lieu of subparagraph (1), and notwithstanding any 7 provision in this subsection to the contrary, an owner may at 8 any time before completion of the project submit a proposal to 9 the board of supervisors requesting that the board allow the 10 owner to file an application for exemption by February 1 of 11 any other assessment year following completion of the project, 12 which year shall be selected by the board. If the board, by 13 resolution, approves the proposal, the exemption is allowed for 14 ten years. 15 f. (1) The application shall be made on forms prescribed by 16 the director of revenue. The application shall contain but not 17 be limited to the following information: 18 (a) The nature of the broadband infrastructure 19 installation. 20 (b) The actual cost of installing the broadband 21 infrastructure under the project, if available. The 22 application shall contain supporting documents demonstrating 23 the actual cost. 24 (c) Certification from the office of the chief information 25 officer pursuant to section 8B.10 that the installation is 26 being performed or was completed in a targeted service area. 27 Certification from the office of the chief information officer 28 that broadband infrastructure installed in a targeted service 29 area facilitates broadband service at or above twenty-five 30 megabits per second of download speed and three megabits per 31 second of upload speed. 32 (d) Certification of the date of commencement and actual or 33 estimated date of completion. 34 (e) A copy of any nonwireless broadband-related permit 35 -10- LSB 1592HV (4) 86 ad/sc 10/ 18

H.F. 576 issued by a political subdivision. 1 (f) If applying pursuant to paragraph “e” , subparagraph (2), 2 the actual cost already incurred for installation of broadband 3 infrastructure, if any, the estimated costs for project 4 completion, and the estimated date of project completion. The 5 application shall contain supporting documents demonstrating 6 the actual cost. 7 (2) The board of supervisors shall forward all approved 8 applications and any necessary information regarding the 9 applications to the appropriate local assessor or to the 10 department of revenue, as applicable, by March 1 annually. 11 After the tax exemption is granted, the local assessor 12 shall continue to grant the tax exemption for ten years, and 13 applications for exemption for succeeding years shall not be 14 required. 15 (3) An applicant for a property tax exemption under this 16 subsection may appeal the decision of the board of supervisors 17 regarding denial of the application to the property assessment 18 appeal board. 19 g. (1) If a company whose property in the county is not 20 assessed by the department of revenue is approved to receive a 21 property tax exemption pursuant to this subsection, the actual 22 value added by installation of the broadband infrastructure 23 shall be determined by the local assessor who shall certify the 24 amount of exemption determined to the county auditor at the 25 time of transmitting the assessment rolls. 26 (2) Notwithstanding any other provision of law to the 27 contrary, if a company in which all or a portion of the 28 company’s property in the county is assessed by the department 29 pursuant to chapter 433 and the company’s property in the 30 county is approved to receive a property tax exemption 31 pursuant to this subsection, the department shall assess 32 all the company’s property in the county used for operating 33 telegraph and telephone lines, broadband, or cable systems for 34 each assessment year the company receives the exemption, for 35 -11- LSB 1592HV (4) 86 ad/sc 11/ 18

H.F. 576 purposes of determining the actual value added by installation 1 of the broadband infrastructure. 2 (3) (a) If assessing property pursuant to subparagraph (2), 3 the department shall certify the assessment value and exemption 4 amounts for all property used for the operation of providing 5 cable and broadband services and generally not assessed by 6 the department to the local assessor for inclusion on the 7 assessment rolls as provided in section 433.8, subsection 2. 8 (b) A company whose property is assessed by the department 9 pursuant to subparagraph (2) shall follow the appeal procedures 10 in chapter 429 for appealing any part of the assessment on 11 all the company’s property, including the company’s property 12 that would have been valued by the local assessor but for 13 subparagraph (2). For appeal proceedings for assessed values 14 submitted pursuant to subparagraph division (a), the department 15 shall notify the taxpayer of the right to appeal pursuant to 16 chapter 429. 17 h. The director of revenue may adopt rules pursuant to 18 chapter 17A for the interpretation and proper administration of 19 the exemption provided in this subsection. 20 Sec. 19. Section 433.8, Code 2015, is amended to read as 21 follows: 22 433.8 Assessment in each county —— how certified. 23 1. The director of revenue shall, for the purpose of 24 determining what amount shall be assessed to each company 25 in each county of the state into which the line of the said 26 company extends, certify to the several county auditors of the 27 respective counties into, over, or through which said line 28 extends the number of miles of line in the county for that 29 company, the actual value per mile of line for that company, 30 and the exemption value per mile of line for that company for 31 exemptions received pursuant to section 427.1, subsection 40, 32 section 433.4, or any other exemptions . In no case, however, 33 shall the taxable value of the property be reduced below zero. 34 2. If assessing all of the property of a company pursuant to 35 -12- LSB 1592HV (4) 86 ad/sc 12/ 18

H.F. 576 section 427.1, subsection 40, paragraph “g” , subparagraph (2), 1 the director shall also certify such amounts to the assessor 2 for inclusion on the assessment rolls. 3 Sec. 20. RULES. The office of the chief information 4 officer shall adopt rules pursuant to chapter 17A to certify 5 that the installation of broadband infrastructure meets the 6 requirements under section 427.1, subsection 40, as enacted in 7 this division of this Act, for purposes of receiving a property 8 tax exemption. 9 Sec. 21. IMPLEMENTATION. Section 25B.7 shall not apply to 10 this division of this Act. 11 Sec. 22. IMPLEMENTATION. Notwithstanding section 427.1, 12 subsection 40, paragraph “b”, as enacted in this division 13 of this Act, owners of broadband infrastructure seeking an 14 exemption for the installation of broadband infrastructure 15 commenced between July 1, 2014, and the effective date of this 16 division of this Act, shall certify to the local assessor that 17 the broadband infrastructure installation took place within 18 a targeted service area prior to applying for an exemption 19 pursuant to this division of this Act. 20 Sec. 23. APPLICABILITY. 21 1. This division of this Act applies to assessment years 22 beginning on or after January 1, 2016. 23 2. Notwithstanding section 427.1, subsection 40, paragraph 24 “e”, subparagraph (1), as enacted in this division of this 25 Act, in the case of projects commenced and completed between 26 July 1, 2014, and December 31, 2014, an owner seeking an 27 exemption shall first file an application for an exemption with 28 the county board of supervisors of each county in which the 29 property is located by February 1, 2016, or the following two 30 assessment years, and in each case the exemption is allowed for 31 ten years. 32 DIVISION IV 33 INFORMATION TECHNOLOGY INFRASTRUCTURE FOR EDUCATION 34 Sec. 24. Section 423F.3, subsection 6, Code 2015, is amended 35 -13- LSB 1592HV (4) 86 ad/sc 13/ 18

H.F. 576 by adding the following new paragraph: 1 NEW PARAGRAPH . 0c. Additionally, “school infrastructure” 2 includes the acquisition or installation of information 3 technology infrastructure. For purposes of this paragraph, 4 “information technology infrastructure” means the basic, 5 underlying physical framework or system necessary to deliver 6 technology connectivity to a school district and to network 7 school buildings within a school district. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to and provides for the coordination and 12 facilitation of broadband access in targeted service areas of 13 the state. The bill is titled the “Connecting Iowa Farms, 14 Schools, and Communities Act”. 15 DIVISION I —— LEGISLATIVE INTENT. The division provides 16 that the general assembly finds and declares that increasing 17 the extent and availability of broadband infrastructure 18 throughout the state facilitates the provision of internet 19 access to citizens, businesses, farms, and communities at 20 speeds that promote economic development, employment, enhanced 21 access to goods and services, increased educational and 22 training opportunities, faster access to government services 23 and health care, and improved overall information and community 24 access. 25 DIVISION II —— STATEWIDE BROADBAND COORDINATION. The 26 division modifies provisions in Code chapter 8B, relating to 27 the office of the chief information officer. The division adds 28 several definitions to the Code chapter for use in the Code 29 chapter and in other related provisions. The division defines 30 “broadband” to mean a high-speed, high-capacity electronic 31 transmission medium, including fixed wireless and mobile 32 wireless mediums, that can carry data signals from independent 33 network sources by establishing different bandwidth channels 34 and that is commonly used to deliver internet services to the 35 -14- LSB 1592HV (4) 86 ad/sc 14/ 18

H.F. 576 public. The division defines “broadband infrastructure” to 1 mean the physical infrastructure used for the transmission 2 of data that provides broadband services. The division 3 defines “communications service provider” to mean a service 4 provider that provides broadband service. The division defines 5 “targeted service area” to mean a United States census bureau 6 census block located in Iowa, including any crop operation 7 located within the census block, within which no communications 8 service provider offers or facilitates broadband service 9 at or above 25 megabits per second of download speed and 3 10 megabits per second of upload speed. The division defines 11 “crop operation” by referencing a definition contained in Code 12 section 717A.1 as meaning a commercial enterprise where a crop 13 is maintained on the property of the commercial enterprise. 14 Additionally, the division adds broadband and broadband 15 infrastructure to an existing definition of “information 16 technology”. 17 The division adds to the powers and duties of the chief 18 information officer streamlining, consolidating, and 19 coordinating access to and availability of broadband and 20 broadband infrastructure throughout Iowa. 21 The division provides that the determination of whether 22 a provider’s download and upload speeds are being met for 23 purposes of the definition of “targeted service area” shall be 24 by reference to broadband availability maps or data sources 25 identified by the office by rule. The division directs the 26 office to establish procedures to allow challenges to the 27 office’s finding on whether an area meets the definition of 28 “targeted service area”. 29 The division establishes a connecting Iowa farms, schools, 30 and communities grant program and fund. The division requires 31 the office of the chief information officer to administer 32 a broadband grant program to award grants to communication 33 service providers that reduce or eliminate targeted service 34 areas by installing broadband infrastructure in targeted 35 -15- LSB 1592HV (4) 86 ad/sc 15/ 18

H.F. 576 service areas. The division establishes a fund, consisting 1 of moneys appropriated to it or appropriated to the office 2 or otherwise available to the office for purposes of the 3 grant program. The moneys in the fund are appropriated 4 to the office of the chief information officer. The bill 5 provides that communication service providers may apply to 6 the office for a grant. The division requires the office to 7 include representatives from schools, communities, agriculture, 8 industry, and other areas as appropriate to review and 9 recommend grant awards. The division also requires the 10 office to conduct an open application review process and 11 include a public internet site for applications, results, 12 and performance. The division sets criteria for the office 13 to consider when awarding grants. The division limits grant 14 amounts to a maximum of 10 percent of the communication service 15 provider’s project cost. 16 The division also adds to the powers and duties of the chief 17 information officer the responsibility for coordinating a new 18 fiberoptic network conduit installation program to facilitate 19 incorporation of fiberoptic network conduit installations, as 20 defined by the bill, into state-funded construction projects 21 or by state-owned infrastructure. The division provides that, 22 subject to funding from the general assembly, the office 23 may contract with a third party to manage, lease, install, 24 or otherwise provide fiberoptic network conduit access, and 25 the program shall not prohibit the office from purchasing or 26 installing fiberoptic cable within fiberoptic network conduit 27 installed pursuant to the program. 28 Additionally, the division specifies expeditious response 29 requirements regarding the approval, modification, or 30 disapproval of nonwireless broadband-related permits. The 31 division provides that, notwithstanding any other provision to 32 the contrary, a political subdivision vested with permitting 33 authority shall approve, approve with modification, or 34 disapprove nonwireless broadband-related permits within 60 35 -16- LSB 1592HV (4) 86 ad/sc 16/ 18

H.F. 576 business days following the submission of a permit application 1 and fee. In the event that no action is taken during the 60-day 2 period, the application shall be deemed approved. 3 The division also requires the chief information officer 4 to prepare an annual report regarding the status of broadband 5 expansion and coordination, the broadband grant program, and 6 the adequacy of the speed set in the definition of targeted 7 service area. The division adds the chief information officer 8 to the Iowa telecommunications and technology commission 9 which oversees the operation of the Iowa communications 10 network and to the statewide interoperable communications 11 system board established in Code section 80.28. The division 12 makes corresponding changes. Further, the division adds an 13 additional member to the board who is an emergency medical 14 care provider, and eliminates a provision that required the 15 commission to consult with the director of the department of 16 administrative services and the chief information officer when 17 appointing the commission’s executive director. 18 DIVISION III —— PROPERTY TAX INCENTIVES AND ASSESSMENT. The 19 division provides a property tax exemption for installation of 20 broadband infrastructure that facilitates broadband service at 21 or above 25 megabits per second of download speed and three 22 megabits per second of upload speed within a targeted service 23 area, which installation is commenced and completed on or 24 after July 1, 2014, and which is used to deliver internet 25 services to the public. The exemption shall be a 100 percent 26 exemption from taxation for a period of 10 years based on 27 the actual value added by the installation of the broadband 28 infrastructure. The division specifies procedures relating 29 to applying for the tax exemption with the county board of 30 supervisors within which the broadband infrastructure is 31 located, granting the tax exemption, and assessing the property 32 of companies receiving the exemption. 33 The division applies to assessment years beginning on or 34 after January 1, 2016. The division provides that property 35 -17- LSB 1592HV (4) 86 ad/sc 17/ 18

H.F. 576 owners seeking an exemption for installation of broadband 1 infrastructure commenced between July 1, 2014, and the 2 effective date of the division of the bill must certify to 3 the local assessor that the installation of the broadband 4 infrastructure took place within a targeted service area prior 5 to applying for an exemption. All other property owners 6 must certify to the local assessor prior to commencement of 7 the installation. The division also provides that property 8 owners seeking an exemption for the installation of broadband 9 infrastructure commenced and completed between July 1, 2014, 10 and December 31, 2014, shall first file an application for an 11 exemption with the county board of supervisors by February 1, 12 2016, or the following two assessment years. An exemption 13 filed pursuant to this provision of the division is allowed for 14 10 years. 15 Code section 25B.7 provides that for a property tax credit 16 or exemption enacted on or after January 1, 1997, if a state 17 appropriation made to fund the credit or exemption is not 18 sufficient to fully fund the credit or exemption, the political 19 subdivision shall be required to extend to the taxpayer only 20 that portion of the credit or exemption estimated by the 21 department of revenue to be funded by the state appropriation. 22 The division provides that Code section 25B.7 does not apply to 23 the property tax exemption created under this division. 24 DIVISION IV —— INFORMATION TECHNOLOGY INFRASTRUCTURE FOR 25 EDUCATION. The division provides that school infrastructure 26 for purposes of statewide school infrastructure funding 27 includes the acquisition or installation of information 28 technology infrastructure, as defined in the division. 29 -18- LSB 1592HV (4) 86 ad/sc 18/ 18