House File 848 - Introduced HOUSE FILE 848 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 796) (SUCCESSOR TO HSB 133) 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 including 3 effective date and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1939HZ (3) 89 jda/rn
H.F. 848 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 1939HZ (3) 89 jda/rn 1/ 13
H.F. 848 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 1939HZ (3) 89 jda/rn 2/ 13
H.F. 848 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 1939HZ (3) 89 jda/rn 3/ 13
H.F. 848 including for broadband mapping and the administration and 1 operation of the grant program , and for the fiberoptic network 2 conduit installation program established in section 8B.25 . 3 b. The office shall use moneys in the fund to provide 4 grants to communications service providers pursuant to this 5 section and to lead and coordinate the fiberoptic network 6 conduit installation program pursuant to section 8B.25 . The 7 office may use not more than one two and one-half percent of 8 the moneys in the fund at the beginning of the fiscal year to 9 pay the costs and expenses associated with the administration 10 and operation of the grant program and the fiberoptic network 11 conduit installation program . The office shall use moneys in 12 the fund to leverage available federal moneys if possible. 13 c. Notwithstanding section 8.33 , moneys in the fund 14 that remain unencumbered or unobligated at the close of the 15 fiscal year shall not revert but shall remain available for 16 expenditure for the purposes designated until three years 17 following the last day of the fiscal year in which the funds 18 were originally appropriated. 19 d. Notwithstanding paragraph “c” or any provision to the 20 contrary, moneys in the fund that have been awarded but not 21 paid to a communications service provider shall not revert 22 but shall remain available to the office for purposes of 23 administering the award in a manner consistent with the terms 24 and conditions of any corresponding contract or grant agreement 25 governing the administration of the award. 26 3. Communications service providers may apply to the office 27 for a grant pursuant to this section for the installation of 28 broadband infrastructure that facilitates broadband service 29 in targeted service areas at or above the download and upload 30 speeds specified in subsection 5 . The office shall include 31 representatives from schools, communities, agriculture, 32 industry, and other areas as appropriate to review and 33 recommend grant awards. The office shall conduct an open 34 application review process that includes the opportunity 35 -4- LSB 1939HZ (3) 89 jda/rn 4/ 13
H.F. 848 for the public to submit factual information as part of a 1 validation process to address claims that a targeted service 2 area is currently served with broadband service at or above the 3 download and upload speeds specified in subsection 5 . Upon 4 completion of the validation process, the office may modify 5 a proposed targeted service area to account for information 6 received during the validation process . The office shall make 7 available a public internet site identifying all publicly 8 available information contained in the applications , the 9 members of the review committee, a summary of the review 10 committee’s recommended results, and any results of performance 11 testing conducted after the project is completed. The office 12 shall devote one full-time equivalent position to evaluate 13 applications submitted under this section and provide technical 14 assistance to communications service providers in completing 15 applications for federal funds, or any other funds from any 16 public or private sources, related to improving broadband 17 infrastructure. 18 4. a. The office shall award grants on a competitive 19 basis for the installation of broadband infrastructure that 20 facilitates broadband service as provided in subsection 3 in 21 targeted service areas at or above the download and upload 22 speeds specified in subsection 5 , after considering the 23 following: 24 (1) The relative need for broadband infrastructure in the 25 area and the existing broadband service speeds, including 26 whether the project serves a rural area or areas. 27 (2) The applicant’s total proposed budget for the project, 28 including all of the following: 29 (a) The amount or percentage of local or federal matching 30 funds, if any, and any funding obligations shared between 31 public and private entities. 32 (b) The percentage of funding provided directly from the 33 applicant, including whether the applicant requested from the 34 office an amount less than the maximum amount the office could 35 -5- LSB 1939HZ (3) 89 jda/rn 5/ 13
H.F. 848 award pursuant to subsection 5 and, if so, the percentage of 1 the project cost that the applicant is requesting. 2 (3) The relative download and upload speeds of proposed 3 projects for all applicants. 4 (4) The specific product attributes resulting from the 5 proposed project, including technologies that provide higher 6 qualities of service, such as service levels, latency, and 7 other service attributes as determined by the office. 8 (5) The percentage of the homes, farms, schools, and 9 businesses in the targeted service area that will be provided 10 access to broadband service. 11 (6) The geographic diversity of the project areas of all the 12 applicants. 13 (7) The economic impact of the project to the area. 14 (6) The proportion of proposed projects that will result 15 in the installation of broadband infrastructure in a targeted 16 service area within which the only broadband service available 17 provides the tier 1 download and upload speeds specified in the 18 definition of targeted service area in section 8B.1. 19 (8) (7) Other factors the office deems relevant. 20 b. In considering the factors listed in paragraph “a” 21 for awarding grants pursuant to this section , the office 22 shall afford the greatest weight to the factors described in 23 paragraph “a” , subparagraphs (1) through (3) , and subparagraph 24 (6) . 25 c. Except as otherwise provided in this section , the office 26 shall not evaluate applications based on the office’s knowledge 27 of the applicant except for information obtained by the office 28 during the application process or period for public comment. 29 5. The office shall not award a grant pursuant to this 30 section that exceeds thirty-five percent of the communications 31 service provider’s project cost. The total amount of the 32 grants the office awards from the empower rural Iowa broadband 33 grant fund pursuant to this section shall be as follows not 34 exceed any of the following amounts : 35 -6- LSB 1939HZ (3) 89 jda/rn 6/ 13
H.F. 848 a. For Seventy-five percent of a communications service 1 provider’s project costs for projects that will result in the 2 installation of broadband infrastructure that will facilitate 3 broadband service providing a minimum download speed less than 4 one hundred megabits per second but greater than or equal to 5 the download speed specified in the definition of targeted 6 service area in section 8B.1 , and a minimum upload speed less 7 than twenty megabits per second but greater than or equal 8 to the upload speed specified in the definition of targeted 9 service area in section 8B.1 , the total amount of the grants 10 the office awards shall not exceed fifty percent of the moneys 11 in the fund at the beginning of the fiscal year. However, if 12 the amount requested for projects that facilitate broadband 13 service at the speeds described in paragraph “b” for the fiscal 14 year is less than the amount reserved for projects under 15 paragraph “b” , the office may award the difference to projects 16 under this paragraph for the same fiscal year in a targeted 17 service area within which no communications service provider 18 offers or facilitates broadband service that provides download 19 and upload speeds less than or equal to the tier 1 download and 20 upload speeds specified in the definition of targeted service 21 area in section 8B.1 . 22 b. For Fifty percent of a communications service provider’s 23 project costs for projects that will result in the installation 24 of broadband infrastructure that will facilitate broadband 25 service providing a minimum download speed of one hundred 26 megabits per second and a minimum upload speed of twenty 27 megabits per second, the total amount of the grants the office 28 awards shall not exceed fifty percent of the moneys in the fund 29 at the beginning of the fiscal year. However, if the amount 30 requested for projects that facilitate broadband service at 31 the speeds described in paragraph “a” for the fiscal year is 32 less than the amount reserved for projects under paragraph 33 “a” , the office may award the difference to projects under 34 this paragraph for the same fiscal year in a targeted service 35 -7- LSB 1939HZ (3) 89 jda/rn 7/ 13
H.F. 848 area within which no communications service provider offers or 1 facilitates broadband service that provides download and upload 2 speeds less than or equal to the tier 2 download and upload 3 speeds specified in the definition of targeted service area in 4 section 8B.1 . 5 c. Thirty-five percent of a communications service 6 provider’s project costs for projects that will result in the 7 installation of broadband infrastructure in a targeted service 8 area within which no communications service provider offers or 9 facilitates broadband service that provides download speeds 10 less than or equal to the tier 3 download speed specified in 11 the definition of targeted service area in section 8B.1. 12 6. Notwithstanding subsections 3 and 5, communications 13 service providers may apply to the office for a grant 14 pursuant to this section for the installation of broadband 15 infrastructure that facilitates broadband service providing a 16 minimum download speed of one hundred megabits per second and a 17 minimum upload speed of twenty megabits per second in targeted 18 service areas pursuant to this subsection. The office shall 19 make available a public internet site identifying all publicly 20 available information contained in the applications and any 21 results of performance testing conducted after the project is 22 completed. 23 a. The office shall award grants under this subsection on 24 a competitive basis after considering the factors provided in 25 subsection 4 and affording weight to the factors pursuant to 26 subsection 4, paragraph “b” . 27 b. The total amount of the grants the office shall award 28 pursuant to this subsection shall not exceed fifty percent 29 of a communications service provider’s project costs for 30 projects that will result in the installation of broadband 31 infrastructure in a targeted service area within which no 32 communications service provider offers or facilitates broadband 33 service that provides download and upload speeds less than or 34 equal to the tier 1 download and upload speeds specified in the 35 -8- LSB 1939HZ (3) 89 jda/rn 8/ 13
H.F. 848 definition of targeted service area in section 8B.1. 1 7. Notwithstanding subsections 5 and 6, at least twenty 2 percent of the total amount of the grants the office awards 3 from the empower rural Iowa broadband grant fund pursuant to 4 this section shall be allocated to projects that will result 5 in the installation of broadband infrastructure in difficult 6 to serve targeted service areas within which no communications 7 service provider offers or facilitates broadband service that 8 provides download and upload speeds less than or equal to the 9 tier 1 download and upload speeds specified in the definition 10 of targeted service area in section 8B.1. For purposes of this 11 subsection, a targeted service area is difficult to serve if 12 the soil conditions, topography, or other local conditions make 13 the installation of broadband infrastructure in the targeted 14 service area more time-consuming or labor-intensive compared to 15 other areas of the state. 16 6. 8. The office shall provide public notice regarding the 17 application process and receipt of funding. 18 7. The office shall not award a grant pursuant to this 19 section on or after July 1, 2025. 20 8. 9. The office may adopt rules pursuant to chapter 17A 21 interpreting this chapter or necessary for administering this 22 chapter , including but not limited to rules relating to the 23 broadband grant program process, management, and measurements 24 as deemed necessary by the office. 25 9. 10. The office shall adopt rules establishing procedures 26 to allow aggrieved applicants an opportunity to challenge the 27 office’s award of grants under this section . 28 Sec. 4. EMERGENCY RULES. The office of the chief 29 information officer may adopt emergency rules under section 30 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph 31 “b”, to implement the provisions of this Act and the rules 32 shall be effective immediately upon filing unless a later 33 date is specified in the rules, unless the effective date of 34 the rules is delayed or the applicability of the rules is 35 -9- LSB 1939HZ (3) 89 jda/rn 9/ 13
H.F. 848 suspended by the administrative rules review committee. Any 1 rules adopted in accordance with this section shall not take 2 effect before the rules are reviewed by the administrative 3 rules review committee. The delay authority provided to 4 the administrative rules review committee under section 5 17A.4, subsection 7, and section 17A.8, subsection 9, 6 shall be applicable to a delay imposed under this section, 7 notwithstanding a provision in those sections making them 8 inapplicable to section 17A.5, subsection 2, paragraph “b”. 9 Any rules adopted in accordance with the provisions of this 10 section shall also be published as a notice of intended action 11 as provided in section 17A.4. 12 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 13 importance, takes effect upon enactment. 14 Sec. 6. APPLICABILITY. This Act applies to applications 15 for grants submitted pursuant to section 8B.11 on or after the 16 effective date of this Act. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill relates to broadband service, including 21 facilitating the availability of broadband service in unsecured 22 and underserved areas, and administration of the empower rural 23 Iowa broadband grant fund. 24 The bill modifies the definition of “facilitate” for 25 purposes of Code chapter 8B to mean a communications service 26 provider’s ability to provide broadband service at or above 27 the download and upload speeds specified in the definition 28 of a targeted service area to a home, farm, school, or 29 business within a commercially reasonable time and at a 30 commercially reasonable price upon request. The bill modifies 31 the definition of “targeted service area” to mean either of 32 the following: a United States census bureau census block 33 located in this state, including any crop operation located 34 within the census block, or other geographic unit the office 35 -10- LSB 1939HZ (3) 89 jda/rn 10/ 13
H.F. 848 of the chief information officer sets by rule, within which no 1 communications service provider offers or facilitates broadband 2 service at or above the tier 1, tier 2, or tier 3 download and 3 upload speeds enumerated in the bill; or any geographic area, 4 as the office sets by rule, that is materially underserved by 5 broadband service such that tier 1, tier 2, and tier 3 download 6 and upload speeds are not meaningfully available. The bill 7 defines “tier 1” as a maximum download speed of less than 25 8 megabits per second and a maximum upload speed of less than 9 three megabits per second. The bill defines “tier 2” as a 10 minimum download speed of greater than or equal to 25 megabits 11 per second but less than 50 megabits per second. The bill 12 defines “tier 3” as a minimum download speed of greater than or 13 equal to 50 megabits per second but less than 80 megabits per 14 second. The bill modifies the definition of “underserved area” 15 to mean any portion of a targeted service area within which no 16 communications service provider facilitates broadband service 17 meeting the tier 1 speeds. 18 The bill provides that the determination of whether 19 a communications service provider facilitates broadband 20 service meeting the tier 1, tier 2, or tier 3 download and 21 upload speeds shall be determined by reference to broadband 22 availability maps or data sources that are identified by the 23 office by rule. The bill requires the office to periodically 24 make renewed determinations as to whether a communications 25 service provider facilitates broadband service at or above 26 those download and upload speeds. The bill establishes that 27 the office is not required to make renewed determinations more 28 frequently than once in any calendar year. 29 The bill provides that, except as described below, grants 30 from the empower rural Iowa broadband grant fund shall only 31 be made to communications service providers that reduce or 32 eliminate targeted service areas by installing broadband 33 infrastructure that facilitates broadband service providing a 34 minimum download speed of 100 megabits per second and a minimum 35 -11- LSB 1939HZ (3) 89 jda/rn 11/ 13
H.F. 848 upload speed of 100 megabits per second in targeted service 1 areas. 2 Current law requires the office to use the moneys in the 3 fund for the grant program, including broadband mapping and 4 administration. The bill requires that the office also use 5 the moneys in the fund for the fiberoptic network conduit 6 installation program established in Code section 8B.25. The 7 bill provides that the office may use not more than 2.5 percent 8 of the moneys in the fund at the beginning of the fiscal year 9 to pay the costs associated with the administration of the 10 grant program and the fiberoptic network conduit installation 11 program. The bill requires the office to devote one full-time 12 equivalent position to evaluate applications for grant awards 13 under the fund. 14 The bill strikes provisions relating to the application 15 review process for applications for grants under the fund. 16 Additionally, the bill strikes provisions relating to a review 17 committee for the review and recommendation of grant awards. 18 The bill also makes certain changes to what the office is 19 to consider when reviewing an application for a grant from 20 the fund and the weight the office is to afford to certain 21 considerations. 22 The bill provides a framework to determine the maximum 23 amount of a grant that the office may award from the fund. 24 The bill establishes that the amount of a grant awarded 25 from the fund is a percentage of the communications service 26 provider’s project costs, and the percentage is determined by 27 the broadband service that is available in the targeted service 28 area. 29 The bill also authorizes the office to award grants from 30 the fund to communications service providers that reduce or 31 eliminate targeted service areas by installing broadband 32 infrastructure that facilitates broadband service providing a 33 minimum download speed of 100 megabits per second and a minimum 34 upload speed of 20 megabits per second. The bill requires 35 -12- LSB 1939HZ (3) 89 jda/rn 12/ 13
H.F. 848 that these projects result in the installation of broadband 1 infrastructure in a targeted service area within which no 2 communications service provider offers broadband service that 3 provides download and upload speeds less than or equal to the 4 tier 1 download and upload speeds. 5 The bill requires at least 20 percent of the total amount 6 of the grants the office awards from the fund to be allocated 7 to projects that will result in the installation of broadband 8 infrastructure in difficult to serve targeted service areas 9 within which no communications service provider offers 10 broadband service that provides download and upload speeds less 11 than or equal to the tier 1 download and upload speeds. 12 The bill authorizes the office to adopt emergency rules to 13 implement the provisions of the bill. 14 The bill strikes Code section 8B.11, subsection 7, which 15 prohibits the office from awarding a grant from the fund on or 16 after July 1, 2025. 17 The bill takes effect upon enactment and applies to 18 applications for grants submitted pursuant to Code section 19 8B.11 on or after the effective date of the bill. 20 -13- LSB 1939HZ (3) 89 jda/rn 13/ 13