HF 551 (LSB 2898YH (3) 91)

HOUSE FILE 551

BY  THOMSON

A BILL FOR

An Act relating to the advertised and delivered speeds of broadband services provided by communication service providers, and providing civil penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  554I.1  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Broadband services” means a high-speed, high-capacity electronic transmission medium, including fixed wireless and mobile wireless mediums, that can carry data signals from independent network sources by establishing different bandwidth channels and that is commonly used to deliver internet services to the public.
   2.  “Communications service provider” means a service provider that provides broadband services to persons residing in this state.
   3.  “Customer” means a person residing in this state who receives broadband services from a communications service provider.
    Sec. 2.  NEW SECTION.  554I.2  Communications service providers —— reports.
   Within thirty days after the end of each quarter, each communications service provider shall provide each customer with a report that includes all of the following:
   1.  The maximum download speed and maximum upload speed of broadband services that the communications service provider advertised as being available in the customer’s geographic area during the quarter.
   2.  For each hour in the quarter, the maximum download speed and maximum upload speed of broadband services that the communications service provider contracted to provide to the customer.
   3.  For each hour in the quarter, the maximum download speed and maximum upload speed of broadband services that the communications service provider actually provided to the customer.
   4.  For each hour in the quarter, the difference between the maximum download speed of broadband services that the communications service provider contracted to provide to the customer and the maximum download speed of broadband services that the communications service provider actually provided to the customer.
   5.  For each hour in the quarter, the difference between the maximum upload speed of broadband services that the communications service provider contracted to provide to the customer and the maximum upload speed of broadband services that the communications service provider actually provided to the customer.
    Sec. 3.  NEW SECTION.  554I.3  Communications service providers —— refunds.
   1.  a.  A communications service provider shall provide a refund credit on a prorated basis to a customer for each hour in the quarter that the maximum download speed of broadband services that the communications service provider actually provided to the customer is less than the maximum download speed of broadband services that the communications service contracted to provide to the customer.
   b.  A communications service provider shall provide a refund credit on a prorated basis to a customer for each hour in the quarter that the maximum upload speed of broadband services that the communications service provider actually provided to the customer is less than the maximum upload speed of broadband services that the communications service provider contracted to provide to the customer.
   2.  In addition to the refund credits described in subsection 1, a communications service provider shall provide a refund credit on a prorated basis to a customer for each day in the quarter that the maximum download speed or maximum upload speed of broadband services that the communications service provider actually provided to the customer is less than the maximum download speed or maximum upload speed of broadband services that the communications service provider contracted to provide to the customer.
    Sec. 4.  NEW SECTION.  554I.4  Communications service providers —— enforcement —— penalties.
   1.  A customer or the attorney general may seek judicial enforcement of the requirements of this chapter in a civil action brought against a communications service provider. If the customer or the attorney general is the prevailing party in the civil action, the court shall assess a civil penalty against the communications service provider in an amount equal to two times the sum of the refund credits owed to the customer under section 554I.3, subsection 1, plus the refund credits owed to the customer under section 554I.3, subsection 2.
   2.  Revenue from the civil penalties assessed in subsection 1 shall be remitted annually to the treasurer of state for deposit in the general fund of the state. For the fiscal year beginning July 1, 2025, and for each succeeding fiscal year, the moneys deposited in the general fund of the state pursuant to this paragraph are appropriated as follows:
   a.  The first ten million dollars are appropriated to the economic development authority for all of the following purposes:
   (1)  For salaries, support, miscellaneous purposes, programs, marketing, and the maintenance of an administration division, a business development division, a community development division, a small business development division, and other divisions the authority may organize.
   (2)  For business development operations and programs, international trade, export assistance, workforce recruitment, and the partner state program.
   (3)  For transfer to a fund created pursuant to section 15.313 for purposes of financing strategic infrastructure projects.
   (4)  For community economic development programs, tourism operations, community assistance, plans for Iowa green corps and summer youth programs, the main street and rural main street programs, the school-to-career program, the community development block grant, and housing and shelter-related programs.
   b.  Total moneys in excess of the moneys appropriated under paragraph “a” are appropriated to the office of the state public defender of the department of inspections, appeals, and licensing for payments on behalf of eligible adults and juveniles from the indigent defense fund, in accordance with section 815.11.
   3.  Notwithstanding section 8.33, moneys appropriated in subsection 2 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.
    Sec. 5.  NEW SECTION.  554I.5  Communications service providers —— audits.
   Each communications service provider shall engage the services of an independent contractor, at the communications service provider’s sole expense and subject to the approval of the attorney general, to audit the communications service provider’s compliance with this section and to verify the maximum download speed and maximum upload speed of the broadband services provided by the communications service provider.
    Sec. 6.  NEW SECTION.  554I.6  Rules.
   The attorney general shall adopt rules pursuant to chapter 17A to administer this chapter.
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 the advertised and delivered speeds of broadband services provided by communication service providers.
   The bill requires a communications service provider (provider) to provide each customer with a report at the end of each quarter. “Communications service provider” is defined in the bill. The report shall include the maximum download and upload speeds of broadband services (broadband) advertised by the provider and, for each hour in the quarter, the maximum download and upload speeds of broadband that the provider contracted to provide; the actual maximum download and upload speeds of broadband provided to the customer; and the difference between the maximum download and upload speeds of broadband that the provider contracted to provide to the customer and the maximum download and upload speeds actually provided. “Broadband services” and “customer” are defined in the bill.
   The bill requires a provider to provide a refund credit on a prorated basis to a customer for each hour in the quarter that the maximum download or upload speed of broadband actually provided to the customer is less than the maximum download or upload speed of broadband the provider contracted to provide.
   The bill grants the attorney general authority to seek judicial enforcement of the bill. A court may assess a civil penalty against a provider in an amount equal to two times the sum of the refund credits to be provided to a customer. Revenue from the civil penalties shall be remitted to the treasurer for deposit in the general fund, to be appropriated as detailed in the bill. 
   The bill requires a provider to hire an independent contractor to audit the provider’s compliance with the bill and to verify the maximum download and upload speeds of the broadband provided by the provider.
   The attorney general shall adopt rules to administer the bill.