H.F. 796 Section 1. Section 8B.1, subsections 5, 13, and 14, Code 1 2021, 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 any of the following: 10 a. A United States census bureau census block located in 11 this state, including any crop operation located within the 12 census block, or other geographic unit the office sets by 13 rule, within which no communications service provider offers 14 or facilitates broadband service at or above the tier 1, tier 15 2, or tier 3 download and upload speeds identified by the 16 federal communications commission pursuant to section 706 of 17 the federal Telecommunications Act of 1996 , as amended . As 18 used in this subsection: 19 (1) “Tier 1” means a maximum download speed of less than 20 twenty-five megabits per second and a maximum upload speed of 21 less than three megabits per second. 22 (2) “Tier 2” means a minimum download speed of greater than 23 or equal to twenty-five megabits per second but less than fifty 24 megabits per second. 25 (3) “Tier 3” means a minimum download speed of greater than 26 or equal to fifty megabits per second but less than eighty 27 megabits per second. 28 b. Any geographic area, as the office sets by rule, that 29 is materially underserved by broadband service such that 30 the download and upload speeds identified by the federal 31 communications commission pursuant to section 706 of the 32 federal Telecommunications Act of 1996 , as amended, of the 33 broadband service in the geographic area tier 1, tier 2, 34 and tier 3 download and upload speeds are not meaningfully 35 -1- LSB 1939HV (2) 89 jda/rn 1/ 13

H.F. 796 available. The office’s power to determine the geographic 1 area by rule under this paragraph includes the power to define 2 and interpret standards as to whether a geographic area is 3 materially underserved and broadband service is meaningfully 4 available. 5 14. “Underserved area” means any portion of a targeted 6 service area within which no communications service provider 7 facilitates broadband service meeting the tier 1 download and 8 upload speeds specified in the definition of targeted service 9 area in this section . 10 Sec. 2. Section 8B.10, subsection 1, Code 2021, is amended 11 to read as follows: 12 1. The determination of whether a communications service 13 provider facilitates broadband service meeting the tier 14 1, tier 2, or tier 3 download and upload speeds specified 15 in the definition of targeted service area in section 8B.1 16 shall be determined or ascertained by reference to broadband 17 availability maps or data sources that are identified by 18 the office by rule. The office shall periodically make 19 renewed determinations of whether a communications service 20 provider facilitates broadband service at or above the tier 21 1, tier 2, or tier 3 download and upload speeds specified 22 in the definition of targeted service area in section 8B.1 , 23 which shall, to the extent updated maps and data sources are 24 available at the time, include making such determinations prior 25 to each round of grant applications solicited by the office 26 pursuant to section 8B.11 . The office is not required to make 27 renewed determinations of whether a communications service 28 provider facilitates broadband service at or above the tier 29 1, tier 2, or tier 3 download and upload speeds specified in 30 the definition of targeted service area in section 8B.1 more 31 frequently than once in any calendar year. 32 Sec. 3. Section 8B.11, Code 2021, is amended to read as 33 follows: 34 8B.11 Empower rural Iowa —— broadband grants —— fund. 35 -2- LSB 1939HV (2) 89 jda/rn 2/ 13

H.F. 796 1. The office shall administer a broadband grant program 1 designed to reduce or eliminate unserved and underserved 2 areas in the state, leveraging federal funds and public and 3 private partnerships where possible, by awarding grants to 4 communications service providers that reduce or eliminate 5 targeted service areas by installing broadband infrastructure 6 that facilitates broadband service in targeted service areas at 7 or above the download and upload speeds specified in subsection 8 5 , in accordance with this section in accordance with the 9 following: 10 a. The broadband infrastructure facilitates broadband 11 service that provides a minimum download speed of one hundred 12 megabits per second and a minimum upload speed of one hundred 13 megabits per second in a targeted service area within which no 14 communications service provider offers or facilitates broadband 15 service that provides download and upload speeds less than or 16 equal to the tier 1 download and upload speeds specified in the 17 definition of targeted service area in section 8B.1 . 18 b. The broadband infrastructure facilitates broadband 19 service that provides a minimum download speed of one hundred 20 megabits per second and a minimum upload speed of one hundred 21 megabits per second in a targeted service area within which no 22 communications service provider offers or facilitates broadband 23 service that provides any of the following: 24 (1) Download speeds less than or equal to the tier 2 25 download speed specified in the definition of targeted service 26 area in section 8B.1. 27 (2) Download speeds less than or equal to the tier 3 28 download speed specified in the definition of targeted service 29 area in section 8B.1. 30 2. a. An empower rural Iowa broadband grant fund is 31 established in the state treasury under the authority of the 32 office. The fund shall consist of moneys available to and 33 obtained or accepted by the office. Moneys in the fund are 34 appropriated to the office to be used for the grant program, 35 -3- LSB 1939HV (2) 89 jda/rn 3/ 13

H.F. 796 including for broadband mapping and the administration and 1 operation of the grant program. 2 b. The office shall use moneys in the fund to provide grants 3 to communications service providers pursuant to this section . 4 The office may use not more than one two and one-half percent 5 of the moneys in the fund at the beginning of the fiscal year to 6 pay the costs and expenses associated with the administration 7 and operation of the grant program. The office shall use 8 moneys in the fund to leverage available federal moneys if 9 possible. 10 c. Notwithstanding section 8.33 , moneys in the fund 11 that remain unencumbered or unobligated at the close of the 12 fiscal year shall not revert but shall remain available for 13 expenditure for the purposes designated until three years 14 following the last day of the fiscal year in which the funds 15 were originally appropriated. 16 d. Notwithstanding paragraph “c” or any provision to the 17 contrary, moneys in the fund that have been awarded but not 18 paid to a communications service provider shall not revert 19 but shall remain available to the office for purposes of 20 administering the award in a manner consistent with the terms 21 and conditions of any corresponding contract or grant agreement 22 governing the administration of the award. 23 3. Communications service providers may apply to the office 24 for a grant pursuant to this section for the installation of 25 broadband infrastructure that facilitates broadband service 26 in targeted service areas at or above the download and upload 27 speeds specified in subsection 5 . The office shall include 28 representatives from schools, communities, agriculture, 29 industry, and other areas as appropriate to review and 30 recommend grant awards. The office shall conduct an open 31 application review process that includes the opportunity 32 for the public to submit factual information as part of a 33 validation process to address claims that a targeted service 34 area is currently served with broadband service at or above the 35 -4- LSB 1939HV (2) 89 jda/rn 4/ 13

H.F. 796 download and upload speeds specified in subsection 5 . Upon 1 completion of the validation process, the office may modify 2 a proposed targeted service area to account for information 3 received during the validation process . The office shall make 4 available a public internet site identifying all publicly 5 available information contained in the applications , the 6 members of the review committee, a summary of the review 7 committee’s recommended results, and any results of performance 8 testing conducted after the project is completed. The office 9 shall devote one full-time equivalent position to evaluate 10 applications submitted under this section and provide technical 11 assistance to communications service providers in completing 12 applications for federal funds, or any other funds from any 13 public or private sources, related to improving broadband 14 infrastructure. 15 4. a. The office shall award grants on a competitive 16 basis for the installation of broadband infrastructure that 17 facilitates broadband service as provided in subsection 3 in 18 targeted service areas at or above the download and upload 19 speeds specified in subsection 5 , after considering the 20 following: 21 (1) The relative need for broadband infrastructure in the 22 area and the existing broadband service speeds, including 23 whether the project serves a rural area or areas. 24 (2) The applicant’s total proposed budget for the project, 25 including all of the following: 26 (a) The amount or percentage of local or federal matching 27 funds, if any, and any funding obligations shared between 28 public and private entities. 29 (b) The percentage of funding provided directly from the 30 applicant, including whether the applicant requested from the 31 office an amount less than the maximum amount the office could 32 award pursuant to subsection 5 and, if so, the percentage of 33 the project cost that the applicant is requesting. 34 (3) The relative download and upload speeds of proposed 35 -5- LSB 1939HV (2) 89 jda/rn 5/ 13

H.F. 796 projects for all applicants. 1 (4) The specific product attributes resulting from the 2 proposed project, including technologies that provide higher 3 qualities of service, such as service levels, latency, and 4 other service attributes as determined by the office. 5 (5) The percentage of the homes, farms, schools, and 6 businesses in the targeted service area that will be provided 7 access to broadband service. 8 (6) The geographic diversity of the project areas of all the 9 applicants. 10 (7) The economic impact of the project to the area. 11 (6) The proportion of proposed projects that will result 12 in the installation of broadband infrastructure in a targeted 13 service area within which the only broadband service available 14 provides the tier 1 download and upload speeds specified in the 15 definition of targeted service area in section 8B.1. 16 (8) (7) Other factors the office deems relevant. 17 b. In considering the factors listed in paragraph “a” 18 for awarding grants pursuant to this section , the office 19 shall afford the greatest weight to the factors described in 20 paragraph “a” , subparagraphs (1) through (3) , and subparagraph 21 (6) . 22 c. Except as otherwise provided in this section , the office 23 shall not evaluate applications based on the office’s knowledge 24 of the applicant except for information obtained by the office 25 during the application process or period for public comment. 26 5. The office shall not award a grant pursuant to this 27 section that exceeds thirty-five percent of the communications 28 service provider’s project cost. The total amount of the 29 grants the office awards from the empower rural Iowa broadband 30 grant fund pursuant to this section shall be as follows not 31 exceed any of the following amounts : 32 a. For Seventy-five percent of a communications service 33 provider’s project costs for projects that will result in the 34 installation of broadband infrastructure that will facilitate 35 -6- LSB 1939HV (2) 89 jda/rn 6/ 13

H.F. 796 broadband service providing a minimum download speed less than 1 one hundred megabits per second but greater than or equal to 2 the download speed specified in the definition of targeted 3 service area in section 8B.1 , and a minimum upload speed less 4 than twenty megabits per second but greater than or equal 5 to the upload speed specified in the definition of targeted 6 service area in section 8B.1 , the total amount of the grants 7 the office awards shall not exceed fifty percent of the moneys 8 in the fund at the beginning of the fiscal year. However, if 9 the amount requested for projects that facilitate broadband 10 service at the speeds described in paragraph “b” for the fiscal 11 year is less than the amount reserved for projects under 12 paragraph “b” , the office may award the difference to projects 13 under this paragraph for the same fiscal year in a targeted 14 service area within which no communications service provider 15 offers or facilitates broadband service that provides download 16 and upload speeds less than or equal to the tier 1 download and 17 upload speeds specified in the definition of targeted service 18 area in section 8B.1 . 19 b. For Fifty percent of a communications service provider’s 20 project costs for projects that will result in the installation 21 of broadband infrastructure that will facilitate broadband 22 service providing a minimum download speed of one hundred 23 megabits per second and a minimum upload speed of twenty 24 megabits per second, the total amount of the grants the office 25 awards shall not exceed fifty percent of the moneys in the fund 26 at the beginning of the fiscal year. However, if the amount 27 requested for projects that facilitate broadband service at 28 the speeds described in paragraph “a” for the fiscal year is 29 less than the amount reserved for projects under paragraph 30 “a” , the office may award the difference to projects under 31 this paragraph for the same fiscal year in a targeted service 32 area within which no communications service provider offers or 33 facilitates broadband service that provides download and upload 34 speeds less than or equal to the tier 2 download and upload 35 -7- LSB 1939HV (2) 89 jda/rn 7/ 13

H.F. 796 speeds specified in the definition of targeted service area in 1 section 8B.1 . 2 c. Thirty-five percent of a communications service 3 provider’s project costs for projects that will result in the 4 installation of broadband infrastructure in a targeted service 5 area within which no communications service provider offers or 6 facilitates broadband service that provides download speeds 7 less than or equal to the tier 3 download speed specified in 8 the definition of targeted service area in section 8B.1. 9 6. Notwithstanding subsections 3 and 5, communications 10 service providers may apply to the office for a grant 11 pursuant to this section for the installation of broadband 12 infrastructure that facilitates broadband service providing a 13 minimum download speed of one hundred megabits per second and a 14 minimum upload speed of twenty megabits per second in targeted 15 service areas pursuant to this subsection. The office shall 16 make available a public internet site identifying all publicly 17 available information contained in the applications and any 18 results of performance testing conducted after the project is 19 completed. 20 a. The office shall award grants under this subsection on 21 a competitive basis after considering the factors provided in 22 subsection 4 and affording weight to the factors pursuant to 23 subsection 4, paragraph “b” . 24 b. The total amount of the grants the office shall award 25 pursuant to this subsection shall not exceed fifty percent 26 of a communications service provider’s project costs for 27 projects that will result in the installation of broadband 28 infrastructure in a targeted service area within which no 29 communications service provider offers or facilitates broadband 30 service that provides download and upload speeds less than or 31 equal to the tier 1 download and upload speeds specified in the 32 definition of targeted service area in section 8B.1. 33 7. Notwithstanding subsections 5 and 6, at least twenty 34 percent of the total amount of the grants the office awards 35 -8- LSB 1939HV (2) 89 jda/rn 8/ 13

H.F. 796 from the empower rural Iowa broadband grant fund pursuant to 1 this section shall be allocated to projects that will result 2 in the installation of broadband infrastructure in difficult 3 to serve targeted service areas within which no communications 4 service provider offers or facilitates broadband service that 5 provides download and upload speeds less than or equal to the 6 tier 1 download and upload speeds specified in the definition 7 of targeted service area in section 8B.1. For purposes of this 8 subsection, a targeted service area is difficult to serve if 9 the soil conditions, topography, or other local conditions make 10 the installation of broadband infrastructure in the targeted 11 service area more time-consuming or labor-intensive compared to 12 other areas of the state. 13 6. 8. The office shall provide public notice regarding the 14 application process and receipt of funding. 15 7. The office shall not award a grant pursuant to this 16 section on or after July 1, 2025. 17 8. 9. The office may adopt rules pursuant to chapter 17A 18 interpreting this chapter or necessary for administering this 19 chapter , including but not limited to rules relating to the 20 broadband grant program process, management, and measurements 21 as deemed necessary by the office. 22 9. 10. The office shall adopt rules establishing procedures 23 to allow aggrieved applicants an opportunity to challenge the 24 office’s award of grants under this section . 25 Sec. 4. EMERGENCY RULES. 26 1. The office of the chief information officer may adopt 27 emergency rules under section 17A.4, subsection 3, and section 28 17A.5, subsection 2, paragraph “b”, to implement the provisions 29 of this Act and the rules shall be effective immediately upon 30 filing unless a later date is specified in the rules, unless 31 the effective date of the rules is delayed or the applicability 32 of the rules is suspended by the administrative rules review 33 committee. Any rules adopted in accordance with this section 34 shall not take effect before the rules are reviewed by the 35 -9- LSB 1939HV (2) 89 jda/rn 9/ 13

H.F. 796 administrative rules review committee. The delay authority 1 provided to the administrative rules review committee under 2 section 17A.4, subsection 7, and section 17A.8, subsection 9, 3 shall be applicable to a delay imposed under this section, 4 notwithstanding a provision in those sections making them 5 inapplicable to section 17A.5, subsection 2, paragraph “b”. 6 Any rules adopted in accordance with the provisions of this 7 section shall also be published as a notice of intended action 8 as provided in section 17A.4. 9 2. If during a fiscal year the office of the chief 10 information officer is adopting rules in accordance with this 11 section or as otherwise directed or authorized by state law, 12 and the rules will result in an expenditure increase beyond the 13 amount anticipated in the budget process or if the expenditure 14 was not addressed in the budget process for the fiscal year, 15 the office shall notify the members of the general assembly, 16 and the department of management concerning the rules and the 17 expenditure increase. The notification shall be provided at 18 least thirty calendar days prior to the date notice of the 19 rules is submitted to the administrative rules coordinator and 20 the administrative code editor. 21 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 22 importance, takes effect upon enactment. 23 Sec. 6. APPLICABILITY. This Act applies to applications 24 for grants submitted pursuant to section 8B.11 on or after the 25 effective date of this Act. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to broadband service, including 30 facilitating the availability of broadband service in unsecured 31 and underserved areas, and administration of the empower rural 32 Iowa broadband grant fund. 33 The bill modifies the definition of “facilitate” for 34 purposes of Code chapter 8B to mean a communications service 35 -10- LSB 1939HV (2) 89 jda/rn 10/ 13

H.F. 796 provider’s ability to provide broadband service at or above 1 the download and upload speeds specified in the definition 2 of a targeted service area to a home, farm, school, or 3 business within a commercially reasonable time and at a 4 commercially reasonable price upon request. The bill modifies 5 the definition of “targeted service area” to mean either of 6 the following: a United States census bureau census block 7 located in this state, including any crop operation located 8 within the census block, or other geographic unit the office 9 of the chief information officer sets by rule, within which no 10 communications service provider offers or facilitates broadband 11 service at or above the tier 1, tier 2, or tier 3 download and 12 upload speeds enumerated in the bill; or any geographic area, 13 as the office sets by rule, that is materially underserved by 14 broadband service such that tier 1, tier 2, and tier 3 download 15 and upload speeds are not meaningfully available. The bill 16 defines “tier 1” as a maximum download speed of less than 25 17 megabits per second and a maximum upload speed of less than 18 three megabits per second. The bill defines “tier 2” as a 19 minimum download speed of greater than or equal to 25 megabits 20 per second but less than 50 megabits per second. The bill 21 defines “tier 3” as a minimum download speed of greater than or 22 equal to 50 megabits per second but less than 80 megabits per 23 second. The bill modifies the definition of “underserved area” 24 to mean any portion of a targeted service area within which no 25 communications service provider facilitates broadband service 26 meeting the tier 1 speeds. 27 The bill provides that the determination of whether 28 a communications service provider facilitates broadband 29 service meeting the tier 1, tier 2, or tier 3 download and 30 upload speeds shall be determined by reference to broadband 31 availability maps or data sources that are identified by the 32 office by rule. The bill requires the office to periodically 33 make renewed determinations as to whether a communications 34 service provider facilitates broadband service at or above 35 -11- LSB 1939HV (2) 89 jda/rn 11/ 13

H.F. 796 those download and upload speeds. The bill establishes that 1 the office is not required to make renewed determinations more 2 frequently than once in any calendar year. 3 The bill provides that, except as described below, grants 4 from the empower rural Iowa broadband grant fund shall only 5 be made to communications service providers that reduce or 6 eliminate targeted service areas by installing broadband 7 infrastructure that facilitates broadband service providing a 8 minimum download speed of 100 megabits per second and a minimum 9 upload speed of 100 megabits per second in targeted service 10 areas. The bill provides that the office may use not more than 11 2.5 percent of the moneys in the fund at the beginning of the 12 fiscal year to pay the costs associated with the administration 13 of the grant program. The bill requires the office to devote 14 one full-time equivalent position to evaluate applications for 15 grant awards under the fund. 16 The bill strikes provisions relating to the application 17 review process for applications for grants under the fund. 18 Additionally, the bill strikes provisions relating to a review 19 committee for the review and recommendation of grant awards. 20 The bill also makes certain changes to what the office is 21 to consider when reviewing an application for a grant from 22 the fund and the weight the office is to afford to certain 23 considerations. 24 The bill provides a framework to determine the maximum 25 amount of a grant that the office may award from the fund. 26 The bill establishes that the amount of a grant awarded 27 from the fund is a percentage of the communications service 28 provider’s project costs, and the percentage is determined by 29 the broadband service that is available in the targeted service 30 area. 31 The bill also authorizes the office to award grants from 32 the fund to communications service providers that reduce or 33 eliminate targeted service areas by installing broadband 34 infrastructure that facilitates broadband service providing a 35 -12- LSB 1939HV (2) 89 jda/rn 12/ 13

H.F. 796 minimum download speed of 100 megabits per second and a minimum 1 upload speed of 20 megabits per second. The bill requires 2 that these projects result in the installation of broadband 3 infrastructure in a targeted service area within which no 4 communications service provider offers broadband service that 5 provides download and upload speeds less than or equal to the 6 tier 1 download and upload speeds. 7 The bill requires at least 20 percent of the total amount 8 of the grants the office awards from the fund to be allocated 9 to projects that will result in the installation of broadband 10 infrastructure in difficult to serve targeted service areas 11 within which no communications service provider offers 12 broadband service that provides download and upload speeds less 13 than or equal to the tier 1 download and upload speeds. 14 The bill authorizes the office to adopt emergency rules to 15 implement the provisions of the bill. 16 The bill strikes Code section 8B.11, subsection 7, which 17 prohibits the office from awarding a grant from the fund on or 18 after July 1, 2025. 19 The bill takes effect upon enactment and applies to 20 applications for grants submitted pursuant to Code section 21 8B.11 on or after the effective date of the bill. 22 -13- LSB 1939HV (2) 89 jda/rn 13/ 13