Senate File 461 - Introduced SENATE FILE 461 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO SF 60) A BILL FOR An Act relating to the coordination of, access to, and 1 availability of broadband via fiberoptic network 2 infrastructure throughout the state, including a broadband 3 grant program and fund, the use of tax incentives and 4 statewide school infrastructure funding, and including 5 applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1386SV (3) 86 ad/sc

S.F. 461 DIVISION I 1 STATEWIDE BROADBAND COORDINATION 2 Section 1. Section 8B.1, Code 2015, is amended by adding the 3 following new subsections: 4 NEW SUBSECTION . 01. “Broadband” means a high-speed, 5 high-capacity electronic transmission medium that can carry 6 data signals from multiple independent network sources by 7 establishing different bandwidth channels and that is commonly 8 used to deliver internet services to the public. 9 NEW SUBSECTION . 001. “Communications service provider” 10 means a service provider that provides broadband service using 11 fiberoptic network infrastructure. 12 NEW SUBSECTION . 0001. “Fiberoptic network infrastructure” 13 means the physical infrastructure used for the transmission 14 of data via broadband over fiberoptic networks, including 15 but not limited to any fiberoptic cable equipment, systems, 16 switches, routers, conduits, servers, software, technology, 17 base transceiver station sites, or other equipment used to 18 transmit broadband communications via fiberoptics. “Fiberoptic 19 network infrastructure” does not include land, buildings, 20 structures, improvements, or equipment not directly used in the 21 transmission of data via broadband over fiberoptic networks. 22 NEW SUBSECTION . 7A. “Targeted underserved service area” 23 means one or more homes or businesses that do not have 24 access to broadband service provided by fiberoptic network 25 infrastructure. 26 Sec. 2. Section 8B.1, subsection 1, Code 2015, is amended 27 to read as follows: 28 1. “Information technology” means computing and electronics 29 applications used to process and distribute information in 30 digital and other forms and includes information technology 31 devices, information technology services, infrastructure 32 services, broadband and fiberoptic network infrastructure, and 33 value-added services. 34 Sec. 3. Section 8B.3, subsection 1, Code 2015, is amended 35 -1- LSB 1386SV (3) 86 ad/sc 1/ 16

S.F. 461 to read as follows: 1 1. The office is created for the purpose of leading, 2 directing, managing, coordinating, and providing accountability 3 for the information technology resources of state government 4 and for coordinating statewide broadband availability and 5 access provided by fiberoptic network infrastructure . 6 Sec. 4. Section 8B.4, Code 2015, is amended by adding the 7 following new subsections: 8 NEW SUBSECTION . 14A. Streamline, consolidate, and 9 coordinate the access to and availability of broadband via 10 fiberoptic network infrastructure throughout the state, 11 including but not limited to developing policies and 12 recommendations for expanding the installation of fiberoptic 13 network infrastructure in targeted underserved service areas 14 of the state, facilitating public-private partnerships, 15 ensuring that all state agencies’ broadband and fiberoptic 16 network infrastructure policies and procedures are aligned, 17 promoting accountability regarding broadband and fiberoptic 18 network infrastructure availability and access, integrating 19 broadband with cyber security standards and rules, resolving 20 issues which arise with regard to implementation efforts, 21 collecting data and developing metrics or standards against 22 which the data may be measured and evaluated regarding 23 fiberoptic network infrastructure installation and deployment, 24 and identifying options regarding the creation of standing 25 resources for stakeholders, such as a fiberoptic database or a 26 fiberoptic network conduit installation coordination effort for 27 state-funded construction projects. 28 NEW SUBSECTION . 14B. Establish and administer the 29 broadband grant program pursuant to section 8B.11. 30 NEW SUBSECTION . 14C. Coordinate the fiberoptic network 31 conduit installation program established in section 8B.25. 32 Sec. 5. Section 8B.9, Code 2015, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 5. An annual report regarding the status of 35 -2- LSB 1386SV (3) 86 ad/sc 2/ 16

S.F. 461 broadband expansion and coordination via fiberoptic networks 1 and the broadband grant program established under section 2 8B.11. 3 Sec. 6. NEW SECTION . 8B.11 Broadband grant program —— fund. 4 1. The office shall administer a broadband grant program 5 to award grants to communication service providers that reduce 6 or eliminate targeted underserved service areas by providing 7 broadband services via fiberoptic network infrastructure. 8 2. a. A broadband grant fund is established in the state 9 treasury under the authority of the office. The fund shall 10 consist of moneys appropriated to the fund or appropriated to 11 the office for purposes of the grant program, moneys available 12 to and obtained or accepted by the office from the federal 13 government or private sources, or other funds available to 14 the office for purposes of the grant program. Moneys in the 15 fund are appropriated to the office to be used for the grant 16 program. 17 b. The office shall use moneys in the fund to provide grants 18 to communication service providers pursuant to this section. 19 The office shall use moneys in the fund to leverage available 20 federal moneys. 21 c. Notwithstanding section 8.33, moneys in the fund 22 that remain unencumbered or unobligated at the close of the 23 fiscal year shall not revert but shall remain available for 24 expenditure for the purposes designated until the close of the 25 succeeding fiscal year. 26 3. Communication service providers may apply to the office 27 for a grant pursuant to this section for the installation 28 of fiberoptic network infrastructure to provide broadband 29 services in targeted underserved service areas. The office 30 shall include representatives from schools, communities, 31 agriculture, industry, and other areas as appropriate to review 32 and recommend grant awards. The office shall conduct an open 33 application review process and include a public internet site 34 for applications, results, and performance. 35 -3- LSB 1386SV (3) 86 ad/sc 3/ 16

S.F. 461 4. a. The office shall award grants on a competitive basis 1 after considering the following: 2 (1) The relative need for broadband services in the area. 3 (2) The geographic diversity of the project areas of all the 4 applicants. 5 (3) The economic impact of the project to the area. 6 (4) The applicant’s total proposed budget for the project, 7 including the amount or percentage of local match, if any. 8 (5) Other factors the office deems relevant. 9 b. Except as otherwise provided in this section, the office 10 shall not evaluate applications based on the office’s knowledge 11 of the applicant except for the information provided in the 12 application. 13 5. The office shall not award a grant pursuant to this 14 section that exceeds ten percent of the communication service 15 provider’s project cost. 16 6. The office shall adopt rules pursuant to chapter 17A, 17 including but not limited to the broadband grant program 18 process, management, and measurements as deemed necessary by 19 the office. 20 Sec. 7. NEW SECTION . 8B.25 Fiberoptic network conduit 21 installation program. 22 1. For the purposes of this section, “fiberoptic network 23 conduit” means a pipe or duct used to enclose fiberoptic cable 24 facilities buried alongside a roadway or surface mounted on 25 a bridge, overpass, or other facility where placement below 26 ground is impossible or impractical. 27 2. The office shall lead and coordinate a program to 28 provide for the installation of fiberoptic network conduit 29 where such conduit does not exist. The chief information 30 officer shall consult and coordinate with the department of 31 administrative services, the department of transportation, the 32 Iowa communications network, and other agencies and entities 33 as determined appropriate to ensure that the opportunity is 34 provided to lay or install fiberoptic network conduit wherever 35 -4- LSB 1386SV (3) 86 ad/sc 4/ 16

S.F. 461 a state-funded construction project involves trenching, boring, 1 a bridge, a roadway, or opening of the ground, or alongside any 2 state-owned infrastructure. 3 3. Contingent upon the provision of funding for such 4 purposes by the general assembly, the office may contract with 5 a third party to manage, lease, install, or otherwise provide 6 fiberoptic network conduit access for projects described in 7 this section. This section shall not prohibit the office from 8 purchasing or installing fiberoptic cable within any fiberoptic 9 network conduit installed pursuant to the program. 10 Sec. 8. NEW SECTION . 8B.26 Broadband permitting process —— 11 expeditious response. 12 Notwithstanding any other provision to the contrary and in 13 compliance with applicable federal laws and regulations, a 14 political subdivision vested with permitting authority shall 15 approve, approve with modification, or disapprove nonwireless, 16 broadband-related permits within sixty business days following 17 the submission of a permit application and fee. In the event 18 that no action is taken during the sixty-day period, the 19 application shall be deemed approved. 20 Sec. 9. Section 8D.3, subsection 2, paragraph a, Code 2015, 21 is amended to read as follows: 22 a. The commission is composed of five voting members 23 appointed by the governor and subject to confirmation by the 24 senate. Members Voting members of the commission shall not 25 serve in any manner or be employed by an authorized user of the 26 network or by an entity seeking to do or doing business with 27 the network. 28 (1) The governor shall appoint a voting member as the 29 chairperson of the commission from the five voting members 30 appointed by the governor , subject to confirmation by the 31 senate. 32 (2) Members Voting members of the commission shall serve 33 six-year staggered terms as designated by the governor and 34 appointments to the commission are subject to the requirements 35 -5- LSB 1386SV (3) 86 ad/sc 5/ 16

S.F. 461 of sections 69.16 , 69.16A , and 69.19 . Vacancies shall be 1 filled by the governor for the duration of the unexpired term. 2 (3) The salary of the voting members of the commission shall 3 be twelve thousand dollars per year, except that the salary 4 of the chairperson shall be seventeen thousand dollars per 5 year. Members Voting members of the commission shall also be 6 reimbursed for all actual and necessary expenses incurred in 7 the performance of duties as members. The benefits and salary 8 paid to the voting members of the commission shall be adjusted 9 annually equal to the average of the annual pay adjustments, 10 expense reimbursements, and related benefits provided under 11 collective bargaining agreements negotiated pursuant to chapter 12 20 . 13 Sec. 10. Section 8D.3, subsection 2, paragraph b, Code 2015, 14 is amended to read as follows: 15 b. In addition to the members appointed by the governor, 16 the The auditor of state or the auditor’s designee and the 17 chief information officer appointed pursuant to section 8B.2 18 or the chief information officer’s designee shall serve as a 19 nonvoting, ex officio member members of the commission. 20 Sec. 11. Section 8D.4, Code 2015, is amended to read as 21 follows: 22 8D.4 Executive director appointed. 23 The commission, in consultation with the director of 24 the department of administrative services and the chief 25 information officer , shall appoint an executive director of 26 the commission, subject to confirmation by the senate. Such 27 individual shall not serve as a member of the commission. 28 The executive director shall serve at the pleasure of the 29 commission. The executive director shall be selected primarily 30 for administrative ability and knowledge in the field, without 31 regard to political affiliation. The governor shall establish 32 the salary of the executive director within range nine as 33 established by the general assembly. The salary and support of 34 the executive director shall be paid from funds deposited in 35 -6- LSB 1386SV (3) 86 ad/sc 6/ 16

S.F. 461 the Iowa communications network fund. 1 Sec. 12. Section 80.28, subsection 2, Code 2015, is amended 2 to read as follows: 3 2. The board shall consist of fifteen nineteen voting 4 members, as follows: 5 a. The following members representing state agencies: 6 (1) One member representing the department of public 7 safety. 8 (2) One member representing the state department of 9 transportation. 10 (3) One member representing the department of homeland 11 security and emergency management. 12 (4) One member representing the department of corrections. 13 (5) One member representing the department of natural 14 resources. 15 (6) One member representing the Iowa department of public 16 health. 17 (7) One member representing the office of the chief 18 information officer created in section 8B.2. 19 b. The governor shall solicit and consider recommendations 20 from professional or volunteer organizations in appointing the 21 following members: 22 (1) Two members who are representatives from municipal 23 police departments. 24 (2) Two members who are representatives of sheriff’s 25 offices. 26 (3) Two members who are representatives from fire 27 departments. One of the members shall be a volunteer fire 28 fighter and the other member shall be a paid fire fighter. 29 (4) Two members who are law communication center managers 30 employed by state or local government agencies. 31 (05) One member who is an emergency medical care provider 32 as defined in section 147A.1. 33 (005) One member who is a local emergency management 34 coordinator as described in section 29C.9. 35 -7- LSB 1386SV (3) 86 ad/sc 7/ 16

S.F. 461 (0005) One member representing the communication workers 1 of America in Iowa. 2 (5) One at-large member. 3 Sec. 13. RULES. The office of the chief information officer 4 shall adopt rules pursuant to chapter 17A to certify that 5 fiberoptic network infrastructure is installed in a targeted 6 underserved service area and to allow challenges to claims that 7 an area meets the definition of a targeted underserved service 8 area. 9 DIVISION II 10 PROPERTY TAX INCENTIVES AND ASSESSMENT 11 Sec. 14. Section 421.1A, subsection 3, Code 2015, is amended 12 to read as follows: 13 3. At the election of a property owner or aggrieved taxpayer 14 or an appellant described in section 441.42 , the property 15 assessment appeal board shall review any final decision, 16 finding, ruling, determination, or order of a local board of 17 review relating to protests of an assessment, valuation, or 18 application of an equalization order , or any final decision 19 of the county board of supervisors relating to denial of an 20 application for a property tax exemption pursuant to section 21 427.1, subsection 40 . 22 Sec. 15. Section 421.1A, subsection 4, Code 2015, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . 0b. Affirm or reverse a final decision 25 of a county board of supervisors relating to denial of an 26 application for a property tax exemption under section 427.1, 27 subsection 40. 28 Sec. 16. Section 427.1, Code 2015, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 40. Fiberoptic network infrastructure. 31 a. The owner of fiberoptic network infrastructure shall be 32 entitled to an exemption from taxation to the extent provided 33 in this subsection. For the purposes of this subsection, 34 “fiberoptic network infrastructure” and “targeted underserved 35 -8- LSB 1386SV (3) 86 ad/sc 8/ 16

S.F. 461 service area” mean the same as defined in section 8B.1. 1 b. The exemption shall apply to the installation of 2 fiberoptic network infrastructure commenced and completed on 3 or after July 1, 2015, in a targeted underserved service area, 4 and used to deliver internet services to the public. A person 5 claiming an exemption under this subsection shall certify to 6 the local assessor prior to commencement of the installation 7 that the fiberoptic network installation will take place within 8 a targeted underserved service area. 9 c. The tax exemption shall be a one hundred percent 10 exemption from taxation for a period of five years in an 11 amount equal to the actual value added by installation of the 12 fiberoptic network infrastructure. 13 d. For companies assessed by the department of revenue 14 pursuant to chapter 433, the exemption shall be limited to an 15 amount equal to the actual value added by installation of the 16 fiberoptic network infrastructure as of the assessment date, 17 as determined by the department, and the exemption shall be 18 applied prior to any other exemption applicable to the unit 19 value, as determined under that chapter. 20 e. (1) An application for an exemption shall be filed by 21 the owner of the property with the county board of supervisors 22 of each county in which the property is located by February 1 23 of the year in which the fiberoptic network infrastructure is 24 first assessed for taxation, or the following two assessment 25 years, and in each case the exemption is allowed for five 26 years. 27 (2) In lieu of subparagraph (1), and notwithstanding any 28 provision in this subsection to the contrary, an owner may at 29 any time before completion of the project submit a proposal to 30 the board of supervisors requesting that the board allow the 31 owner to file an application for exemption by February 1 of 32 any other assessment year following completion of the project, 33 which year shall be selected by the board. If the board, by 34 resolution, approves the proposal, the exemption is allowed for 35 -9- LSB 1386SV (3) 86 ad/sc 9/ 16

S.F. 461 five years. 1 f. (1) The application shall be made on forms prescribed by 2 the director of revenue. The application shall contain but not 3 be limited to the following information: 4 (a) The nature of the fiberoptic network infrastructure 5 installation. 6 (b) The actual cost of installing the fiberoptic network 7 infrastructure under the project, if available. The 8 application shall contain supporting documents demonstrating 9 the actual cost. 10 (c) Certification from the office of the chief information 11 officer that the installation is being performed or was 12 completed in a targeted underserved service area and 13 certification of the date of commencement and actual or 14 estimated date of completion. 15 (d) A copy of any permit related to fiberoptic network 16 infrastructure issued by a political subdivision. 17 (e) If applying pursuant to paragraph “e” , subparagraph (2), 18 the actual cost already incurred for installation of fiberoptic 19 network infrastructure, if any, the estimated costs for project 20 completion, and the estimated date of project completion. The 21 application shall contain supporting documents demonstrating 22 the actual cost. 23 (2) The board of supervisors shall forward all approved 24 applications and any necessary information regarding the 25 applications to the appropriate local assessor or to the 26 department of revenue, as applicable, by March 1 annually. 27 After the tax exemption is granted, the local assessor shall 28 continue to grant the tax exemption for five years, and 29 applications for exemption for succeeding years shall not be 30 required. 31 (3) An applicant for a property tax exemption under this 32 subsection may appeal the decision of the board of supervisors 33 regarding denial of the application to the property assessment 34 appeal board. 35 -10- LSB 1386SV (3) 86 ad/sc 10/ 16

S.F. 461 g. (1) If a company whose property in the county is not 1 assessed by the department of revenue is approved to receive 2 a property tax exemption pursuant to this subsection, the 3 actual value added by installation of the fiberoptic network 4 infrastructure shall be determined by the local assessor who 5 shall certify the amount of exemption determined to the county 6 auditor at the time of transmitting the assessment rolls. 7 (2) Notwithstanding any other provision of law to the 8 contrary, if a company in which all or a portion of the 9 company’s property in the county is assessed by the department 10 pursuant to chapter 433 and the company’s property in the 11 county is approved to receive a property tax exemption 12 pursuant to this subsection, the department shall assess 13 all the company’s property in the county used for operating 14 telegraph and telephone lines, broadband, or cable systems for 15 each assessment year the company receives the exemption, for 16 purposes of determining the actual value added by installation 17 of the fiberoptic network infrastructure. 18 (3) (a) If assessing property pursuant to subparagraph (2), 19 the department shall certify the assessment value and exemption 20 amounts for all property used for the operation of providing 21 cable and broadband services and generally not assessed by 22 the department to the local assessor for inclusion on the 23 assessment rolls as provided in section 433.8, subsection 2. 24 (b) A company whose property is assessed by the department 25 pursuant to subparagraph (2) shall follow the appeal procedures 26 in chapter 429 for appealing any part of the assessment on 27 all the company’s property, including the company’s property 28 that would have been valued by the local assessor but for 29 subparagraph (2). For appeal proceedings for assessed values 30 submitted pursuant to subparagraph division (a), the department 31 shall notify the taxpayer of the right to appeal pursuant to 32 chapter 429. 33 h. The director of revenue may adopt rules pursuant to 34 chapter 17A for the interpretation and proper administration of 35 -11- LSB 1386SV (3) 86 ad/sc 11/ 16

S.F. 461 the exemption provided in this subsection. 1 Sec. 17. Section 433.8, Code 2015, is amended to read as 2 follows: 3 433.8 Assessment in each county —— how certified. 4 1. The director of revenue shall, for the purpose of 5 determining what amount shall be assessed to each company 6 in each county of the state into which the line of the said 7 company extends, certify to the several county auditors of the 8 respective counties into, over, or through which said line 9 extends the number of miles of line in the county for that 10 company, the actual value per mile of line for that company, 11 and the exemption value per mile of line for that company for 12 exemptions received pursuant to section 427.1, subsection 40, 13 section 433.4, or any other exemptions . In no case, however, 14 shall the taxable value of the property be reduced below zero. 15 2. If assessing all of the property of a company pursuant to 16 section 427.1, subsection 40, paragraph “g” , subparagraph (2), 17 the director shall also certify such amounts to the assessor 18 for inclusion on the assessment rolls. 19 Sec. 18. IMPLEMENTATION. Section 25B.7 shall not apply to 20 this division of this Act. 21 Sec. 19. APPLICABILITY. This division of this Act applies 22 to assessment years beginning on or after January 1, 2016. 23 DIVISION III 24 INFORMATION TECHNOLOGY INFRASTRUCTURE FOR EDUCATION 25 Sec. 20. Section 423F.3, subsection 6, Code 2015, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . 0c. Additionally, “school infrastructure” 28 includes the acquisition or installation of information 29 technology infrastructure. For purposes of this paragraph, 30 “information technology infrastructure” means the basic, 31 underlying physical framework or system necessary to deliver 32 technology connectivity to a school district and to network 33 school buildings within a school district. 34 EXPLANATION 35 -12- LSB 1386SV (3) 86 ad/sc 12/ 16

S.F. 461 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill relates to the coordination of and availability of 3 broadband access via fiberoptic network infrastructure across 4 the state. 5 Division I of the bill modifies provisions in Code chapter 6 8B, the information technology chapter which creates the office 7 of the chief information officer, by adding several definitions 8 to the Code chapter. The division defines “broadband” as 9 a high-speed, high-capacity electronic transmission medium 10 that can carry data signals from multiple independent network 11 sources by establishing different bandwidth channels and that 12 is commonly used to deliver internet services to the public. 13 The division defines “fiberoptic network infrastructure” as the 14 physical infrastructure used for the transmission of data via 15 broadband over fiberoptic networks. The division also adds 16 definitions for “communications service provider” and “targeted 17 underserved service area”. The division changes the definition 18 of “information technology” to include broadband and fiberoptic 19 network infrastructure. 20 The division adds additional powers and duties for the 21 chief information officer relating to broadband and fiberoptic 22 network infrastructure. The division includes coordination 23 of statewide broadband availability and access via fiberoptic 24 network infrastructure as a mission of the office of the chief 25 information officer. The division also requires the chief 26 information officer to streamline, consolidate, and coordinate 27 access to and availability of broadband via fiberoptic network 28 infrastructure. The division directs the chief information 29 officer to submit an annual report regarding the status of 30 broadband expansion and coordination via fiberoptic networks 31 and the broadband grant program. The division also adds the 32 chief information officer as a nonvoting, ex officio member to 33 the telecommunication and technology commission, established in 34 current Code section 8D.3 and which oversees the operation of 35 -13- LSB 1386SV (3) 86 ad/sc 13/ 16

S.F. 461 the Iowa communications network, and adds the chief information 1 officer as a voting member of the statewide interoperable 2 communications system board established in current Code 3 section 80.28 under the purview of the departments of public 4 safety and transportation. The division makes corresponding 5 amendments regarding voting members of the commission and the 6 appointment of the executive director of the telecommunication 7 and technology commission. The division also adds an emergency 8 care provider, a local emergency management coordinator, and 9 a person representing the communication workers of America 10 in Iowa to the statewide interoperable communications system 11 board. 12 The division establishes a broadband grant program and fund. 13 The division requires the office of the chief information 14 officer to administer a broadband grant program to award grants 15 to communication service providers that reduce or eliminate 16 targeted underserved service areas by providing broadband 17 services via fiberoptic network infrastructure. The division 18 establishes a fund, consisting of moneys appropriated to it or 19 appropriated to the office or otherwise available to the office 20 for purposes of the grant program. The moneys in the fund are 21 appropriated to the office of the chief information officer. 22 The division provides that communication service providers may 23 apply to the office for a grant. The division requires the 24 office to include representatives from schools, communities, 25 agriculture, industry, and other areas as appropriate to 26 review and recommend grant awards. The division also requires 27 the office to conduct an open application review process and 28 include a public internet site for applications, results, 29 and performance. The division sets criteria for the office 30 to consider when awarding grants. The division limits grant 31 amounts to a maximum of 10 percent of the communication service 32 provider’s project cost. 33 The division adds the responsibility for coordinating a new 34 fiberoptic network conduit installation program to facilitate 35 -14- LSB 1386SV (3) 86 ad/sc 14/ 16

S.F. 461 incorporation of fiberoptic network conduit installations, as 1 defined by the bill, into state-funded construction projects or 2 by state-owned infrastructure to the powers and duties of the 3 chief information officer. The division provides that, subject 4 to funding from the general assembly, the office may contract 5 with a third party to manage, lease, install, or otherwise 6 provide fiberoptic network conduit access, and the program 7 shall not prohibit the office from purchasing or installing 8 fiberoptic cable within fiberoptic network conduit installed 9 pursuant to the program. 10 Additionally, the division specifies expeditious response 11 requirements regarding the approval, modification, or 12 disapproval of nonwireless broadband-related permits. The 13 division provides that, notwithstanding any other provision to 14 the contrary, a political subdivision vested with permitting 15 authority shall approve, approve with modification, or 16 disapprove nonwireless broadband-related permits within 60 17 business days following the submission of a permit application 18 and fee. If the political subdivision does not take action 19 during the 60-day period, the application shall be deemed 20 approved. 21 Division II of the bill provides a property tax exemption for 22 installation of fiberoptic network infrastructure commenced and 23 completed on or after July 1, 2015, in a targeted underserved 24 service area and used to deliver internet services to the 25 public. The exemption shall be a 100 percent exemption from 26 taxation for a period of five years based on the actual 27 value added by the installation of the fiberoptic network 28 infrastructure. The division specifies procedures relating to 29 applying for the tax exemption with the board of supervisors in 30 the county within which the fiberoptic network infrastructure 31 is located, granting the tax exemption, and assessing the 32 property of companies receiving the exemption. The division 33 applies to assessment years beginning on or after January 1, 34 2016. Code section 25B.7 provides that for a property tax 35 -15- LSB 1386SV (3) 86 ad/sc 15/ 16

S.F. 461 credit or exemption enacted on or after January 1, 1997, if a 1 state appropriation made to fund the credit or exemption is not 2 sufficient to fully fund the credit or exemption, the political 3 subdivision shall be required to extend to the taxpayer only 4 that portion of the credit or exemption estimated by the 5 department of revenue to be funded by the state appropriation. 6 The division provides that Code section 25B.7 does not apply to 7 the property tax exemption created under the division. 8 Division III of the bill adds the acquisition or 9 installation of information technology infrastructure, 10 as defined in the bill, to the definition of “school 11 infrastructure” for purposes of the statewide school 12 infrastructure funding provisions contained in Code chapter 13 423F. 14 -16- LSB 1386SV (3) 86 ad/sc 16/ 16