Senate
File
2400
-
Introduced
SENATE
FILE
2400
BY
COMMITTEE
ON
APPROPRIATIONS
(SUCCESSOR
TO
SF
2262)
(SUCCESSOR
TO
SSB
3112)
(COMPANION
TO
HF
2459
BY
COMMITTEE
ON
COMMERCE)
A
BILL
FOR
An
Act
relating
to
broadband
service,
including
matters
under
1
the
purview
of
the
office
of
the
chief
information
officer,
2
the
empower
rural
Iowa
broadband
grant
fund,
and
certain
3
broadband
infrastructure
tax
exemptions,
and
including
4
effective
date
and
retroactive
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
5607SZ
(1)
88
ja/jh
S.F.
2400
Section
1.
Section
8B.1,
subsections
5,
13,
and
14,
Code
1
2020,
are
amended
to
read
as
follows:
2
5.
“Facilitate”
means
a
communication
service
provider’s
3
ability
to
provide
broadband
service
at
or
above
the
download
4
and
upload
speeds
specified
in
the
definition
of
targeted
5
service
area
in
this
section
or
section
8B.11,
subsection
6
5,
paragraph
“a”
,
if
applicable,
to
a
home,
farm,
school,
7
or
business
within
a
commercially
reasonable
time
and
at
a
8
commercially
reasonable
price
upon
request
by
a
consumer.
9
13.
“Targeted
service
area”
means
a
any
of
the
following:
10
a.
A
United
States
census
bureau
census
block
located
11
in
this
state,
including
any
crop
operation
located
within
12
the
census
block,
or
other
geographic
unit
the
office
sets
13
by
rule,
within
which
no
communications
service
provider
14
offers
or
facilitates
broadband
service
at
or
above
the
15
download
and
upload
speeds
identified
by
the
federal
16
communications
commission
pursuant
to
section
706
of
the
17
federal
Telecommunications
Act
of
1996,
as
amended.
18
b.
Any
geographic
area,
as
the
office
sets
by
rule,
that
19
is
materially
underserved
by
broadband
service
such
that
20
the
download
and
upload
speeds
identified
by
the
federal
21
communications
commission
pursuant
to
section
706
of
the
22
federal
Telecommunications
Act
of
1996,
as
amended,
of
the
23
broadband
service
in
the
geographic
area
are
not
meaningfully
24
available.
The
office’s
power
to
determine
the
geographic
25
area
by
rule
under
this
paragraph
includes
the
power
to
define
26
and
interpret
standards
as
to
whether
a
geographic
area
is
27
materially
underserved
and
broadband
service
is
meaningfully
28
available.
29
14.
“Underserved
area”
means
any
portion
of
a
targeted
30
service
area
within
which
no
communications
service
provider
31
offers
or
facilitates
broadband
service
meeting
the
download
32
and
upload
speeds
specified
in
the
definition
of
targeted
33
service
area
in
this
section
.
34
Sec.
2.
Section
8B.9,
subsection
5,
Code
2020,
is
amended
35
-1-
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to
read
as
follows:
1
5.
An
annual
report
regarding
the
status
of
broadband
2
expansion
and
coordination,
the
connecting
Iowa
farms,
schools,
3
and
communities
empower
rural
Iowa
broadband
grant
program
4
established
under
section
8B.11
,
and
the
adequacy
of
the
speed
5
set
in
the
definition
of
targeted
service
area
in
section
8B.1
.
6
Sec.
3.
Section
8B.10,
subsection
1,
Code
2020,
is
amended
7
to
read
as
follows:
8
1.
The
determination
of
whether
a
communications
service
9
provider
offers
or
facilitates
broadband
service
meeting
the
10
download
and
upload
speeds
specified
in
the
definition
of
11
targeted
service
area
in
section
8B.1
shall
be
determined
12
or
ascertained
by
reference
to
broadband
availability
maps
13
or
data
sources
that
are
widely
accepted
for
accuracy
and
14
available
for
public
review
and
comment
and
that
are
identified
15
by
the
office
by
rule.
The
office
shall
periodically
make
16
renewed
determinations
of
whether
a
communications
service
17
provider
offers
or
facilitates
broadband
service
at
or
above
18
the
download
and
upload
speeds
specified
in
the
definition
of
19
targeted
service
area
in
section
8B.1
,
which
shall,
to
the
20
extent
updated
maps
and
data
sources
are
available
at
the
time,
21
include
making
such
determinations
prior
to
each
round
of
grant
22
applications
solicited
by
the
office
pursuant
to
section
8B.11
.
23
Sec.
4.
Section
8B.10,
Code
2020,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
3.
All
findings
and
determinations
made
26
pursuant
to
this
section
shall
exclude
mobile
wireless
or
27
satellite
data,
capabilities,
and
delivery
mediums.
28
Sec.
5.
Section
8B.11,
subsection
1,
Code
2020,
is
amended
29
to
read
as
follows:
30
1.
The
office
shall
administer
a
broadband
grant
program
31
designed
to
reduce
or
eliminate
unserved
and
underserved
32
areas
in
the
state,
leveraging
federal
funds
and
public
and
33
private
partnerships
where
possible,
by
awarding
grants
to
34
communications
service
providers
that
reduce
or
eliminate
35
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targeted
service
areas
by
installing
broadband
infrastructure
1
that
facilitates
broadband
service
in
targeted
service
areas
2
at
or
above
the
download
and
upload
speeds
specified
in
the
3
definition
of
targeted
service
area
in
section
8B.1
subsection
4
5
,
in
accordance
with
this
section
.
5
Sec.
6.
Section
8B.11,
subsection
2,
paragraphs
a
and
b,
6
Code
2020,
are
amended
to
read
as
follows:
7
a.
A
connecting
Iowa
farms,
schools,
and
communities
An
8
empower
rural
Iowa
broadband
grant
fund
is
established
in
the
9
state
treasury
under
the
authority
of
the
office.
The
fund
10
shall
consist
of
moneys
available
to
and
obtained
or
accepted
11
by
the
office.
Moneys
in
the
fund
are
appropriated
to
the
12
office
to
be
used
for
the
grant
program
,
including
for
the
13
administration
and
operation
of
the
grant
program
.
14
b.
The
office
shall
use
moneys
in
the
fund
to
provide
grants
15
to
communications
service
providers
pursuant
to
this
section
.
16
The
office
may
use
moneys
in
the
fund
to
pay
the
costs
and
17
expenses
associated
with
the
administration
and
operation
of
18
the
grant
program.
The
office
shall
use
moneys
in
the
fund
to
19
leverage
available
federal
moneys
if
possible.
20
Sec.
7.
Section
8B.11,
subsection
2,
Code
2020,
is
amended
21
by
adding
the
following
new
paragraph:
22
NEW
PARAGRAPH
.
d.
Notwithstanding
paragraph
“c”
or
any
23
provision
to
the
contrary,
moneys
in
the
fund
that
have
been
24
awarded
but
not
paid
to
a
communications
service
provider
25
shall
not
revert
but
shall
remain
available
to
the
office
for
26
purposes
of
administering
the
award
in
a
manner
consistent
with
27
the
terms
and
conditions
of
any
corresponding
contract
or
grant
28
agreement
governing
the
administration
of
the
award.
29
Sec.
8.
Section
8B.11,
subsection
3,
Code
2020,
is
amended
30
to
read
as
follows:
31
3.
Communications
service
providers
may
apply
to
the
office
32
for
a
grant
pursuant
to
this
section
for
the
installation
33
of
broadband
infrastructure
that
facilitates
broadband
34
service
in
targeted
service
areas
at
or
above
the
download
35
-3-
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10
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and
upload
speeds
specified
in
the
definition
of
targeted
1
service
area
in
section
8B.1
subsection
5
.
The
office
may,
2
by
rule,
increase
the
minimum
download
and
upload
speeds
3
for
grant
eligibility
pursuant
to
this
section
.
The
office
4
shall
include
representatives
from
schools,
communities,
5
agriculture,
industry,
and
other
areas
as
appropriate
to
review
6
and
recommend
grant
awards.
The
office
shall
conduct
an
open
7
application
review
process
that
includes
the
opportunity
8
for
the
public
to
submit
factual
information
as
part
of
a
9
validation
process
to
address
claims
that
a
targeted
service
10
area
is
currently
served
with
broadband
service
at
or
above
11
the
download
and
upload
speeds
specified
in
the
definition
12
of
targeted
service
area
in
section
8B.1
subsection
5
.
Upon
13
completion
of
the
validation
process,
the
office
may
modify
14
a
proposed
targeted
service
area
to
account
for
information
15
received
during
the
validation
process.
The
office
shall
make
16
available
a
public
internet
site
identifying
all
publicly
17
available
information
contained
in
the
applications,
the
18
members
of
the
review
committee,
a
summary
of
the
review
19
committee’s
recommended
results,
and
any
results
of
performance
20
testing
conducted
after
the
project
is
completed.
21
Sec.
9.
Section
8B.11,
subsection
4,
paragraph
a,
22
unnumbered
paragraph
1,
Code
2020,
is
amended
to
read
as
23
follows:
24
The
office
shall
award
grants
on
a
competitive
basis
for
25
the
installation
of
broadband
infrastructure
that
facilitates
26
broadband
service
in
targeted
service
areas
at
or
above
the
27
download
and
upload
speeds
specified
in
the
definition
of
28
targeted
service
area
in
section
8B.1
subsection
5
,
after
29
considering
the
following:
30
Sec.
10.
Section
8B.11,
subsection
4,
paragraph
a,
31
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
32
(2)
The
applicant’s
total
proposed
budget
for
the
project,
33
including
the
all
of
the
following:
34
(a)
The
amount
or
percentage
of
local
or
federal
matching
35
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funds,
if
any,
and
any
funding
obligations
shared
between
1
public
and
private
entities
,
and
the
.
2
(b)
The
percentage
of
funding
provided
directly
from
the
3
applicant
,
including
whether
the
applicant
requested
from
the
4
office
an
amount
less
than
the
maximum
amount
the
office
could
5
award
pursuant
to
subsection
5
and,
if
so,
the
percentage
of
6
the
project
cost
that
the
applicant
is
requesting
.
7
Sec.
11.
Section
8B.11,
subsection
5,
Code
2020,
is
amended
8
to
read
as
follows:
9
5.
The
office
shall
not
award
a
grant
pursuant
to
this
10
section
that
exceeds
fifteen
any
of
the
following
amounts:
11
a.
Thirty-five
percent
of
the
communications
service
12
provider’s
project
cost,
for
projects
that
will
result
in
the
13
installation
of
broadband
infrastructure
that
will
facilitate
14
broadband
service
providing
a
minimum
download
speed
of
one
15
hundred
megabits
per
second
and
a
minimum
upload
speed
of
16
twenty
megabits
per
second.
17
b.
Fifteen
percent
of
the
communications
service
provider’s
18
project
cost
,
for
projects
that
will
result
in
the
installation
19
of
broadband
infrastructure
that
will
facilitate
broadband
20
service
providing
a
minimum
download
speed
less
than
one
21
hundred
megabits
per
second
but
greater
than
or
equal
to
the
22
download
speed
specified
in
the
definition
of
targeted
service
23
area
in
section
8B.1,
and
a
minimum
upload
speed
less
than
24
twenty
megabits
per
second
but
greater
than
or
equal
to
the
25
upload
speed
specified
in
the
definition
of
targeted
service
26
area
in
section
8B.1
.
27
Sec.
12.
Section
427.1,
subsection
40,
paragraph
b,
Code
28
2020,
is
amended
to
read
as
follows:
29
b.
The
exemption
shall
apply
to
the
installation
of
30
broadband
infrastructure
that
facilitates
broadband
service
31
at
or
above
the
download
and
upload
speeds
specified
in
the
32
definition
of
targeted
service
area
in
section
8B.1
commenced
33
and
completed
on
or
after
July
1,
2015,
and
before
July
1,
34
2025,
in
a
targeted
service
area,
and
used
to
deliver
internet
35
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services
to
the
public.
A
person
claiming
an
exemption
under
1
this
subsection
shall
certify
to
the
local
assessor
prior
to
2
commencement
of
the
installation
that
the
installation
of
3
broadband
infrastructure
will
facilitate
broadband
service
4
at
or
above
the
download
and
upload
speeds
specified
in
the
5
definition
of
targeted
service
area
in
section
8B.1
within
a
6
targeted
service
area
and
shall
specify
the
current
number
7
of
homes,
farms,
schools,
and
businesses
in
the
targeted
8
service
area
that
were
offered
to
which
broadband
service
was
9
facilitated
and
the
download
and
upload
speeds
available
prior
10
to
the
broadband
infrastructure
installation
for
which
the
11
exemption
is
claimed
and
the
number
of
homes,
farms,
schools,
12
and
businesses
in
the
targeted
service
area
that
will
be
13
offered
to
which
broadband
service
will
be
facilitated
and
the
14
download
and
upload
speeds
that
will
be
available
as
a
result
15
of
installation
of
the
broadband
infrastructure
for
which
the
16
exemption
is
claimed.
17
Sec.
13.
Section
427.1,
subsection
40,
paragraph
f,
18
subparagraph
(1),
subparagraph
division
(d),
Code
2020,
is
19
amended
to
read
as
follows:
20
(d)
Certification
from
the
office
of
the
chief
information
21
officer
pursuant
to
section
8B.10
that
the
installation
will
22
facilitate
broadband
service
at
or
above
the
download
and
23
upload
speeds
specified
in
the
definition
of
targeted
service
24
area
in
section
8B.1
in
a
targeted
service
area.
25
Sec.
14.
2019
Iowa
Acts,
chapter
136,
section
6,
subsection
26
1,
is
amended
to
read
as
follows:
27
1.
There
is
appropriated
from
the
general
fund
of
the
state
28
to
the
office
of
the
chief
information
officer
for
the
fiscal
29
year
beginning
July
1,
2019,
and
ending
June
30,
2020,
the
30
following
amount,
or
so
much
thereof
as
is
necessary,
to
be
31
used
for
the
purposes
designated:
32
For
deposit
in
the
connecting
Iowa
farms,
schools,
and
33
communities
empower
rural
Iowa
broadband
grant
fund
established
34
under
section
8B.11
for
a
broadband
grant
program;
and
for
35
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10
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2400
salaries,
support,
maintenance,
and
miscellaneous
purposes:
1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
5,000,000
2
Sec.
15.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
3
immediate
importance,
takes
effect
upon
enactment.
4
Sec.
16.
RETROACTIVE
APPLICABILITY.
The
following
applies
5
retroactively
to
July
1,
2015:
6
The
section
of
this
Act
enacting
section
8B.11,
subsection
7
2,
paragraph
“d”.
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
broadband
service,
including
matters
12
under
the
purview
of
the
office
of
the
chief
information
13
officer,
the
empower
rural
Iowa
broadband
grant
fund,
and
14
certain
broadband
infrastructure
tax
exemptions.
15
The
bill
amends
the
definitions
of
“facilitate”,
“targeted
16
service
area”,
and
“underserved
area”
for
purposes
of
Code
17
chapter
8B.
18
The
bill
amends
the
definition
of
“facilitate”
to
mean
a
19
communication
service
provider’s
ability
to
provide
broadband
20
service
at
or
above
the
download
and
upload
speeds
specified
in
21
the
definition
of
“targeted
service
area”
or
in
Code
section
22
8B.11(5),
which
is
also
amended
under
the
bill,
as
described
in
23
more
detail
below.
24
Currently,
“targeted
service
area”
is
defined
to
mean
25
a
United
States
census
bureau
census
block
located
in
26
this
state,
including
any
crop
operation
located
within
27
the
census
block,
within
which
no
communications
service
28
provider
offers
or
facilitates
broadband
service
at
or
above
29
the
download
and
upload
speeds
identified
by
the
federal
30
communications
commission
pursuant
to
section
706
of
the
31
federal
Telecommunications
Act
of
1996,
as
amended.
To
this
32
definition,
the
bill
adds
as
an
alternative
any
geographic
33
area,
as
determined
by
the
office
of
the
chief
information
34
officer
by
rule,
that
is
materially
underserved
by
broadband
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service
such
that
the
download
and
upload
speeds
identified
1
by
the
federal
communications
commission
pursuant
to
section
2
706
of
the
federal
Telecommunications
Act
of
1996,
as
3
amended,
of
the
broadband
service
in
the
geographic
area
are
4
not
meaningfully
available.
The
bill
grants
to
the
office
5
the
power
to
determine
what
constitutes
a
geographic
area
6
being
“materially
underserved”
and
broadband
service
being
7
“meaningfully
available”.
8
The
bill
modifies
the
definition
of
“underserved
area”
to
9
remove
language
related
to
broadband
service
being
offered
10
in
a
targeted
service
area.
As
a
result,
an
underserved
11
area
now
means
any
portion
of
a
targeted
service
area
within
12
which
no
communications
service
provider
facilitates
broadband
13
service
meeting
the
download
and
upload
speeds
specified
in
the
14
definition
of
targeted
service
area.
15
Currently,
the
office
is
to
determine
whether
a
16
communications
service
provider
offers
or
facilitates
broadband
17
service
at
the
proper
download
and
upload
speed
by
reference
18
to
broadband
availability
maps
or
data
sources
that
are
widely
19
accepted
for
accuracy
and
available
for
public
review
and
20
comment
and
that
are
identified
by
the
office
by
rule.
The
21
bill
changes
this
provision
in
several
ways.
First,
the
bill
22
deletes
reference
to
a
communications
service
provider
offering
23
broadband
service.
Second,
the
bill
removes
the
requirement
24
that
the
maps
or
data
sources
be
widely
accepted
for
accuracy
25
and
available
for
public
review
and
comment.
Third,
the
bill
26
requires
that
the
office’s
determinations
exclude
mobile
27
wireless
or
satellite
data,
capabilities,
and
delivery
mediums.
28
The
bill
changes
the
name
of
the
connecting
Iowa
farms,
29
schools,
and
communities
broadband
grant
fund
to
the
empower
30
rural
Iowa
broadband
grant
fund.
The
bill
also
modifies
how
31
moneys
in
the
empower
rural
Iowa
broadband
grant
fund
may
be
32
used.
The
bill
permits
the
office
to
use
moneys
in
the
fund
for
33
purposes
of
administering
and
operating
the
grant
program.
34
In
addition,
the
bill
establishes
that
moneys
in
the
fund
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that
have
been
awarded
to
a
communications
service
provider
but
1
not
paid
shall
not
revert
but
shall
remain
available
to
the
2
office
for
purposes
of
administering
the
award.
This
provision
3
is
retroactively
applicable
to
July
1,
2015.
4
Currently,
Code
section
8B.11(3)
allows
the
office,
by
rule,
5
to
increase
the
minimum
download
and
upload
speeds
for
grant
6
eligibility
under
the
fund.
The
bill
deletes
this
provision,
7
which
prevents
the
office
from
increasing
the
minimum
download
8
and
upload
speeds
for
grant
eligibility.
9
The
bill
adds
to
the
factors
the
office
is
to
consider
10
when
determining
whether
to
award
grants
from
the
fund.
When
11
considering
the
applicant’s
total
proposed
budget,
in
addition
12
to
the
factors
currently
considered,
the
office
is
now
also
13
to
consider
whether
the
applicant
requested
from
the
office
14
an
amount
less
than
the
maximum
amount
the
office
could
award
15
pursuant
to
Code
section
8B.11(5).
16
The
office
is
currently
prohibited
from
awarding
a
grant
17
from
the
fund
that
exceeds
15
percent
of
the
communications
18
service
provider’s
project
cost.
The
bill
amends
this
19
provision
to
allow
for
an
award
of
up
to
35
percent
of
20
the
communications
service
provider’s
project
cost
for
21
projects
that
will
result
in
the
installation
of
broadband
22
infrastructure
that
will
facilitate
broadband
service
providing
23
a
minimum
download
speed
of
100
megabits
per
second
and
a
24
minimum
upload
speed
of
20
megabits
per
second.
The
bill
25
allows
for
an
award
of
up
to
15
percent
of
the
communications
26
service
provider’s
project
cost
for
projects
that
will
result
27
in
the
installation
of
broadband
infrastructure
that
will
28
facilitate
broadband
service
providing
a
minimum
download
speed
29
less
than
100
megabits
per
second
but
greater
than
or
equal
30
to
the
download
speed
specified
in
the
definition
of
targeted
31
service
area,
and
a
minimum
upload
speed
less
than
20
megabits
32
per
second
but
greater
than
or
equal
to
the
upload
speed
33
specified
in
the
definition
of
targeted
service
area.
34
The
bill
amends
Code
section
427.1(40)(b)
to
remove
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reference
to
the
broadband
service
being
offered,
inserting
1
that
the
broadband
service
need
only
be
facilitated.
2
Currently,
Code
section
427.1(40)
provides
that
the
3
certification
from
the
office
that
the
installation
will
4
facilitate
broadband
service
at
or
above
the
download
and
5
upload
speeds
specified
in
the
definition
of
targeted
service
6
area
is
pursuant
to
Code
section
8B.10.
The
bill
strikes
the
7
reference
to
Code
section
8B.10.
8
The
bill
makes
conforming
changes
related
to
the
change
9
in
name
of
the
fund
from
the
connecting
Iowa
farms,
schools,
10
and
communities
broadband
grant
fund
to
the
empower
rural
Iowa
11
broadband
grant
fund.
12
The
bill
takes
effect
upon
enactment.
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