HSB 133 (LSB 1939XL (3) 89)

SENATE/HOUSE FILE _____

BY  (PROPOSED GOVERNOR BILL)

A BILL FOR

An Act relating to broadband service, including matters under the purview of the office of the chief information officer, the empower rural Iowa broadband grant fund, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8B.1, subsections 5, 13, and 14, Code 2021, are amended to read as follows:
   5.  “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 or section 8B.11, subsection 5, paragraph “a”, if applicable, to a home, farm, school, or business within a commercially reasonable time and at a commercially reasonable price upon request by a consumer.
   13.  “Targeted service area” means any of the following:
   a.  A United States census bureau census block located in this state, including any crop operation located within the census block, or other geographic unit the office sets by rule, within which no communications service provider offers or facilitates broadband service at or above the tier 1, tier 2, or tier 3 download and upload speeds identified by the federal communications commission pursuant to section 706 of the federal Telecommunications Act of 1996, as amended.  As used in this subsection:
   (1)  “Tier 1” means a minimum download speed of less than twenty-five megabits per second and a minimum upload speed of less than three megabits per second.
   (2)  “Tier 2” means a minimum download speed of greater than or equal to twenty-five megabits per second but less than fifty megabits per second and a minimum upload speed of greater than or equal to three megabits per second.
   (3)  “Tier 3” means a minimum download speed of greater than or equal to fifty megabits per second but less than eighty megabits per second.
   b.  Any geographic area, as the office sets by rule, that is materially underserved by broadband service such that the download and upload speeds identified by the federal communications commission pursuant to section 706 of the federal Telecommunications Act of 1996, as amended, of the broadband service in the geographic area tier 1, tier 2, and tier 3 download and upload speeds are not meaningfully available. The office’s power to determine the geographic area by rule under this paragraph includes the power to define and interpret standards as to whether a geographic area is materially underserved and broadband service is meaningfully available.
   14.  “Underserved area” means any portion of a targeted service area within which no communications service provider facilitates broadband service meeting the tier 1 download and upload speeds specified in the definition of targeted service area in this section.
    Sec. 2.  Section 8B.10, subsection 1, Code 2021, is amended to read as follows:
   1.  The determination of whether a communications service provider facilitates broadband service meeting the tier 1, tier 2, or tier 3 download and 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 identified by the office by rule. The office shall periodically make renewed determinations of whether a communications service provider facilitates broadband service at or above the tier 1, tier 2, or tier 3 download and upload speeds specified in the definition of targeted service area in section 8B.1, which shall, to the extent updated maps and data sources are available at the time, include making such determinations prior to each round of grant applications solicited by the office pursuant to section 8B.11.  The office is not required to make renewed determinations of whether a communications service provider facilitates broadband service at or above the tier 1, tier 2, or tier 3 download and upload speeds specified in the definition of targeted service area in section 8B.1 more frequently than once in any calendar year.
    Sec. 3.  Section 8B.11, Code 2021, is amended to read as follows:
   8B.11  Empower rural Iowa —— broadband grants —— fund.
   1.  The office shall administer a broadband grant program designed to 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 providing a minimum download speed of one hundred megabits per second and a minimum upload speed of one hundred megabits per second in targeted service areas at or above the download and upload speeds specified in subsection 5, in accordance with this section.
   2.  a.  An empower rural Iowa broadband grant fund is established in the state treasury under the authority of the office. The fund shall consist of moneys available to and obtained or accepted by the office. Moneys in the fund are appropriated to the office to be used for the grant program, including for broadband mapping and the administration and operation of the grant program.
   b.  The office shall use moneys in the fund to provide grants to communications service providers pursuant to this section. The office may use not more than one three percent of the moneys in the fund at the beginning of the fiscal year to pay the costs and expenses associated with the administration and operation of the grant program. The office shall use moneys in the fund to leverage available federal moneys if possible.
   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 three years following the last day of the fiscal year in which the funds were originally appropriated.
   d.  Notwithstanding paragraph “c” or any provision to the contrary, moneys in the fund that have been awarded but not paid to a communications service provider shall not revert but shall remain available to the office for purposes of administering the award in a manner consistent with the terms and conditions of any corresponding contract or grant agreement governing the administration of the award.
   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 providing a minimum download speed of one hundred megabits per second and a minimum upload speed of one hundred megabits per second in targeted service areas at or above the download and upload speeds specified in subsection 5. 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 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 subsection 5. 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 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.
   4.  a.  The office shall award grants on a competitive basis for the installation of broadband infrastructure that facilitates broadband service as provided in subsection 3 in targeted service areas at or above the download and upload speeds specified in subsection 5, 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 applicant’s total proposed budget for the project, including all of the following:
   (a)  The amount or percentage of local or federal matching funds, if any, and any funding obligations shared between public and private entities.
   (b)  The percentage of funding provided directly from the applicant, including whether the applicant requested from the office an amount less than the maximum amount the office could award pursuant to subsection 5 and, if so, the percentage of the project cost that the applicant is requesting.
   (3)  The relative download and upload speeds of proposed projects for all applicants.
   (4)  The specific product attributes resulting from the proposed project, including technologies that provide higher qualities of service, such as service levels, latency, and other service attributes as determined by the office.
   (5)  (4)  The percentage of the homes, farms, schools, and businesses in the targeted service area that will be provided access to broadband service.
   (6)  The geographic diversity of the project areas of all the applicants.
   (7)  The economic impact of the project to the area.
   (8)  (5)  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).
   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 information obtained by the office during the application process or period for public comment.
   5.  The office shall not award a grant pursuant to this section that exceeds thirty-five percent of the communications service provider’s project cost. The total amount of the grants the office awards from the empower rural Iowa broadband grant fund pursuant to this section shall be as follows not exceed any of the following amounts:
   a.  For Seventy-five percent of a communications service provider’s project costs for projects that will result in the installation of broadband infrastructure that will facilitate broadband service providing a minimum download speed less than one hundred megabits per second but greater than or equal to the download speed specified in the definition of targeted service area in section 8B.1, and a minimum upload speed less than twenty megabits per second but greater than or equal to the upload speed specified in the definition of targeted service area in section 8B.1, the total amount of the grants the office awards shall not exceed fifty percent of the moneys in the fund at the beginning of the fiscal year. However, if the amount requested for projects that facilitate broadband service at the speeds described in paragraph “b” for the fiscal year is less than the amount reserved for projects under paragraph “b”, the office may award the difference to projects under this paragraph for the same fiscal year in a targeted service area within which no communications service provider offers or facilitates broadband service that provides download and upload speeds less than or equal to the tier 1 download and upload speeds specified in the definition of targeted service area in section 8B.1.
   b.  For Fifty percent of a communications service provider’s project costs for projects that will result in the installation of broadband infrastructure that will facilitate broadband service providing a minimum download speed of one hundred megabits per second and a minimum upload speed of twenty megabits per second, the total amount of the grants the office awards shall not exceed fifty percent of the moneys in the fund at the beginning of the fiscal year. However, if the amount requested for projects that facilitate broadband service at the speeds described in paragraph “a” for the fiscal year is less than the amount reserved for projects under paragraph “a”, the office may award the difference to projects under this paragraph for the same fiscal year in a targeted service area within which no communications service provider offers or facilitates broadband service that provides download and upload speeds less than or equal to the tier 2 download and upload speeds specified in the definition of targeted service area in section 8B.1.
   c.  Thirty-five percent of a communications service provider’s project costs for projects that will result in the installation of broadband infrastructure in a targeted service area within which no communications service provider offers or facilitates broadband service that provides download speeds less than or equal to the tier 3 download speed specified in the definition of targeted service area in section 8B.1.
   6.  The office shall provide public notice regarding the application process and receipt of funding.
   7.  The office shall not award a grant pursuant to this section on or after July 1, 2025.
   8.  7.  The office 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.
   9.  8.  The office shall adopt rules establishing procedures to allow aggrieved applicants an opportunity to challenge the office’s award of grants under this section.
    Sec. 4.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 5.  APPLICABILITY.  This Act applies to applications for grants submitted pursuant to section 8B.11 on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to broadband service, including facilitating the availability of broadband service in unsecured and underserved areas, and administration of the empower rural Iowa broadband grant fund.
   The bill modifies the definition of “facilitate” for purposes of Code chapter 8B to mean a communications service provider’s ability to provide broadband service at or above the download and upload speeds specified in the definition of a targeted service area to a home, farm, school, or business within a commercially reasonable time and at a commercially reasonable price upon request. The bill modifies the definition of “targeted service area” to mean either of the following: a United States census bureau census block located in this state, including any crop operation located within the census block, or other geographic unit the office of the chief information officer sets by rule, within which no communications service provider offers or facilitates broadband service at or above the tier 1, tier 2, or tier 3 download and upload speeds enumerated in the bill; or any geographic area, as the office sets by rule, that is materially underserved by broadband service such that tier 1, tier 2, and tier 3 download and upload speeds are not meaningfully available. The bill defines “tier 1” as a minimum download speed of less than 25 megabits per second and a minimum upload speed of less than three megabits per second. The bill defines “tier 2” as a minimum download speed of greater than or equal to 25 megabits per second but less than 50 megabits per second and a minimum upload speed of greater than or equal to three megabits per second. The bill defines “tier 3” as a minimum download speed of greater than or equal to 50 megabits per second but less than 80 megabits per second. The bill modifies the definition of “underserved area” to mean any portion of a targeted service area within which no communications service provider facilitates broadband service meeting the tier 1 speeds.
   The bill provides that the determination of whether a communications service provider facilitates broadband service meeting the tier 1, tier 2, or tier 3 download and upload speeds shall be determined by reference to broadband availability maps or data sources that are identified by the office by rule. The bill requires the office to periodically make renewed determinations as to whether a communications service provider facilitates broadband service at or above those download and upload speeds. The bill establishes that the office is not required to make renewed determinations more frequently than once in any calendar year.
   The bill provides that grants from the empower rural Iowa broadband grant fund shall only be made to communications service providers that reduce or eliminate targeted service areas by installing broadband infrastructure that facilitates broadband service providing a minimum download speed of 100 megabits per second and a minimum upload speed of 100 megabits per second in targeted service areas. The bill provides that the office may use not more than 3 percent of the moneys in the fund at the beginning of the fiscal year to pay the costs associated with the administration of the grant program. 
   The bill strikes provisions relating to the application review process for applications for grants under the fund. Additionally, the bill strikes provisions relating to a review committee for the review and recommendation of grant awards. The bill also makes certain changes to what the office is to consider when reviewing an application for a grant from the fund.
   The bill provides that the amount of the grants the office awards from the fund shall not exceed 75 percent of a communications service provider’s project costs for projects that will result in the installation of broadband infrastructure in a targeted service area within which no communications service provider offers or facilitates broadband service that provides download and upload speeds less than or equal to the tier 1 download and upload speeds; 50 percent of a communications service provider’s project costs for projects that will result in the installation of broadband infrastructure in a targeted service area within which no communications service provider offers or facilitates broadband service that provides download and upload speeds less than or equal to the tier 2 download and upload speeds; and 35 percent of a communications service provider’s project costs for projects that will result in the installation of broadband infrastructure in a targeted service area within which no communications service provider offers or facilitates broadband service that provides download speeds less than or equal to the tier 3 download speed.
   The bill strikes Code section 8B.11, subsection 7, which prohibits the office from awarding a grant from the fund on or after July 1, 2025.
   The bill takes effect upon enactment and applies to applications for grants submitted pursuant to Code section 8B.11 on or after the effective date of the bill.