SF 625 (LSB 1824SV (2) 88)

SENATE FILE 625

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SSB 1193)

A BILL FOR

An Act creating an empower rural Iowa Act to provide incentives for broadband access.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  TITLE OF ACT.  This Act shall be known and may be cited as the “Empower Rural Iowa Act”.
    Sec. 2.  Section 8B.1, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  “Facilitate” means a communication service provider’s ability to provide broadband service at or above the download and upload speeds specified in the definition of targeted service area in this section to a home, farm, school, or business within a commercially reasonable time and at a commercially reasonable price upon request by a consumer.
    Sec. 3.  Section 8B.1, subsection 12, Code 2019, is amended to read as follows:
   12.  “Targeted service area” means a United States census bureau census block located in this state, including any crop operation located within the census block, within which no communications service provider offers or facilitates broadband service at or above twenty-five megabits per second of download speed and three megabits per second of upload speed as of July 1, 2015 the download and upload speed benchmarks identified by the federal communications commission in its most recent broadband report issued pursuant to section 706 of the Federal Telecommunications Act of 1996, as amended.
    Sec. 4.  Section 8B.10, subsection 1, Code 2019, is amended to read as follows:
   1.  The determination of whether a communications service provider offers or facilitates broadband service meeting the download or upload speeds specified in the definition of targeted service area in section 8B.1 shall be determined or ascertained by reference to broadband availability maps or data sources that are widely accepted for accuracy and available for public review and comment and that are identified by the office by rule.  The office shall periodically make renewed determinations of whether a communications service provider offers or facilitates broadband service at or above the download and upload speeds specified in the definition of targeted service area in section 8B.1, which shall include making such determinations prior to each round of grant applications solicited by the office pursuant to section 8B.11.
    Sec. 5.  Section 8B.11, subsection 1, Code 2019, is amended to read as follows:
   1.  The office shall administer a broadband grant program designed to award reduce or eliminate unserved and underserved areas in the state, leveraging federal funds and public and private partnerships where possible, by awarding grants to communications service providers that reduce or eliminate targeted service areas by installing broadband infrastructure that facilitates broadband service in targeted service areas at or above the download and upload speeds specified in the definition of targeted service area in section 8B.1, in accordance with this section.
    Sec. 6.  Section 8B.11, subsection 2, paragraph c, Code 2019, is amended to read as follows:
   c.  Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year three years following the last day of the fiscal year in which the funds were originally appropriated.
    Sec. 7.  Section 8B.11, subsection 3, Code 2019, is amended to read as follows:
   3.  Communications service providers may apply to the office for a grant pursuant to this section for the installation of broadband infrastructure that facilitates broadband service at or above twenty-five megabits per second of download speed and three megabits per second of upload speed in targeted service areas at or above the download and upload speeds specified in the definition of targeted service area in section 8B.1.  The office may, by rule, increase the minimum download and upload speeds for grant eligibility pursuant to this section. The office shall include representatives from schools, communities, agriculture, industry, and other areas as appropriate to review and recommend grant awards. The office shall conduct an open application review process and include that includes the opportunity for the public to submit factual information as part of a validation process to address claims that a targeted service area is currently served with broadband service at or above the download and upload speeds specified in the definition of targeted service area in section 8B.1. Upon completion of the validation process, the office may modify a proposed targeted service area to account for information received during the validation process. The office shall make available a public internet site for identifying all publicly available information contained in the applications, the members of the review committee, a summary of the review committee’s recommended results, and any results of performance testing conducted after the project is completed.
    Sec. 8.  Section 8B.11, subsection 4, Code 2019, is amended to read as follows:
   4.  a.  The office shall award grants on a competitive basis after considering the following:
   (1)  The relative need for broadband infrastructure in the area and the existing broadband service speeds, including whether the project serves a rural area or areas.
   (2)  The amount or percentage of local or federal matching funds, if any, any funding obligations shared between public and private entities, and any support provided from federal programs.
   (3)  The specific product attributes resulting from the proposed project, including technologies, capabilities, and broadband service speeds that are more advanced. The office shall give preference to projects that facilitate broadband service at or above one hundred megabits per second of download speed and one hundred megabits per second of upload speed.
   (2)  (4)  The percentage of the homes, farms, schools, and businesses in the targeted service area that will be provided access to broadband service.
   (3)  (5)  The geographic diversity of the project areas of all the applicants.
   (4)  (6)  The direct and quantifiable economic impact of the project to the area.
   (5)  The applicant’s total proposed budget for the project, including the amount or percentage of local match, if any.
   (6)  (7)  Other factors the office deems relevant.
   b.  In considering the factors listed in paragraph “a” for awarding grants pursuant to this section, the office shall afford the greatest weight to the factors described in paragraph “a”, subparagraphs (1) through (3).
   b.  c.  Except as otherwise provided in this section, the office shall not evaluate applications based on the office’s knowledge of the applicant except for the information provided in obtained by the office during the application process or validation process.
    Sec. 9.  Section 8B.11, subsections 7 and 8, Code 2019, are amended to read as follows:
   7.  The office shall not award a grant pursuant to this section on or after July 1, 2020 2025.
   8.  The office shall may adopt rules pursuant to chapter 17A interpreting this chapter or necessary for administering this chapter, including but not limited to rules relating to the broadband grant program process, management, and measurements as deemed necessary by the office.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill modifies provisions applicable to the broadband grant program administered by the office of the chief information officer (OCIO) under Code chapter 8B.
   The bill provides that it may be known and cited as the “Empower Rural Iowa Act”.
   Current law requires the OCIO to administer a broadband grant program to award grants to communications service providers that reduce or eliminate targeted service areas, as defined, by installing broadband infrastructure that facilitates broadband service at or above 25 megabits per second of download speed and 3 megabits per second of upload speed as of July 1, 2015. The bill removes references to the specified download and upload speeds and date throughout Code chapter 8B and instead references the download and upload speed benchmarks identified by the federal communications commission in its most recent broadband report issued pursuant to federal law. The bill also provides a new definition for “facilitate” in Code section 8B.1, as described in the bill.
   Current law provides that the determination of whether a communications service provider facilitates broadband service meeting the requisite download or upload speeds shall be ascertained by reference to certain broadband availability maps or data sources identified by the OCIO by rule. The bill requires the OCIO to periodically make renewed determinations of whether such a provider facilitates broadband service at or above the requisite speeds, including making such determinations prior to each round of grant applications.
   The bill provides that the broadband grant program shall be designed to reduce or eliminate unserved and underserved areas in Iowa, leveraging federal funds and public and private partnerships where possible, by awarding grants to communications service providers to install broadband infrastructure that facilitates broadband service in targeted service areas at or above the requisite download and upload speeds. 
   Current law allows unencumbered or unobligated moneys remaining in the broadband grant fund at the close of the fiscal year to remain available for use until the close of the succeeding fiscal year. The bill instead provides that such moneys shall remain available until three years following the last day of the fiscal year in which the funds were originally appropriated. 
   The bill allows the OCIO to increase the minimum download and upload speeds for broadband grant eligibility by rule.
   The bill requires the OCIO to conduct a validation process for public comment on grant applications, as described in the bill. The bill requires the OCIO to identify certain information relating to broadband grants on a public internet site.
   Current law provides certain factors for the OCIO to consider in awarding grants on a competitive basis. The bill modifies such factors for the OCIO to consider in awarding grants and provides that the OCIO shall afford the greatest weight to certain factors, as described in the bill.
   Current law requires the OCIO to evaluate applications for broadband grants only pursuant to the information provided in an application. The bill allows the OCIO to consider any information obtained during the application process or validation process.
   The bill extends the OCIO broadband grant program from July 1, 2020, to July 1, 2025. 
   Current law requires the OCIO to adopt rules related to the broadband grant program. The bill instead provides the OCIO with discretion to adopt rules deemed necessary to interpret or administer Code chapter 8B, including but not limited to rules relating to the broadband grant program.