Senate File 2400 - Reprinted SENATE FILE 2400 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 2262) (SUCCESSOR TO SSB 3112) (COMPANION TO HF 2459 BY COMMITTEE ON COMMERCE) (As Amended and Passed by the Senate March 10, 2020 ) 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 certain 3 broadband infrastructure tax exemptions, and including 4 effective date and retroactive applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 SF 2400 (2) 88 ja/jh/mb
S.F. 2400 Section 1. Section 8B.1, subsections 5, 13, and 14, Code 1 2020, 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 a any of the following: 10 a. A United States census bureau census block located 11 in this state, including any crop operation located within 12 the census block, or other geographic unit the office sets 13 by rule, within which no communications service provider 14 offers or facilitates broadband service at or above the 15 download and upload speeds identified by the federal 16 communications commission pursuant to section 706 of the 17 federal Telecommunications Act of 1996, as amended. 18 b. Any geographic area, as the office sets by rule, that 19 is materially underserved by broadband service such that 20 the download and upload speeds identified by the federal 21 communications commission pursuant to section 706 of the 22 federal Telecommunications Act of 1996, as amended, of the 23 broadband service in the geographic area are not meaningfully 24 available. The office’s power to determine the geographic 25 area by rule under this paragraph includes the power to define 26 and interpret standards as to whether a geographic area is 27 materially underserved and broadband service is meaningfully 28 available. 29 14. “Underserved area” means any portion of a targeted 30 service area within which no communications service provider 31 offers or facilitates broadband service meeting the download 32 and upload speeds specified in the definition of targeted 33 service area in this section . 34 Sec. 2. Section 8B.4, Code 2020, is amended by adding the 35 -1- SF 2400 (2) 88 ja/jh/mb 1/ 7
S.F. 2400 following new subsection: 1 NEW SUBSECTION . 17A. Provide technical assistance to 2 communications service providers related to grant applications 3 under section 8B.11. 4 Sec. 3. Section 8B.9, subsection 5, Code 2020, is amended 5 to read as follows: 6 5. An annual report regarding the status of broadband 7 expansion and coordination, the connecting Iowa farms, schools, 8 and communities empower rural Iowa broadband grant program 9 established under section 8B.11 , and the adequacy of the speed 10 set in the definition of targeted service area in section 8B.1 . 11 Sec. 4. Section 8B.10, subsection 1, Code 2020, is amended 12 to read as follows: 13 1. The determination of whether a communications service 14 provider offers or facilitates broadband service meeting the 15 download and upload speeds specified in the definition of 16 targeted service area in section 8B.1 shall be determined 17 or ascertained by reference to broadband availability maps 18 or data sources that are widely accepted for accuracy and 19 available for public review and comment and that are identified 20 by the office by rule. The office shall periodically make 21 renewed determinations of whether a communications service 22 provider offers or facilitates broadband service at or above 23 the download and upload speeds specified in the definition of 24 targeted service area in section 8B.1 , which shall, to the 25 extent updated maps and data sources are available at the time, 26 include making such determinations prior to each round of grant 27 applications solicited by the office pursuant to section 8B.11 . 28 Sec. 5. Section 8B.10, Code 2020, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 3. All findings and determinations made 31 pursuant to this section shall exclude mobile wireless or 32 satellite data, capabilities, and delivery mediums. 33 Sec. 6. Section 8B.11, subsection 1, Code 2020, is amended 34 to read as follows: 35 -2- SF 2400 (2) 88 ja/jh/mb 2/ 7
S.F. 2400 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 7 at or above the download and upload speeds specified in the 8 definition of targeted service area in section 8B.1 subsection 9 5 , in accordance with this section . 10 Sec. 7. Section 8B.11, subsection 2, paragraphs a and b, 11 Code 2020, are amended to read as follows: 12 a. A connecting Iowa farms, schools, and communities An 13 empower rural Iowa broadband grant fund is established in the 14 state treasury under the authority of the office. The fund 15 shall consist of moneys available to and obtained or accepted 16 by the office. Moneys in the fund are appropriated to the 17 office to be used for the grant program , including for the 18 administration and operation of the grant program . 19 b. The office shall use moneys in the fund to provide grants 20 to communications service providers pursuant to this section . 21 The office may use moneys in the fund to pay the costs and 22 expenses associated with the administration and operation of 23 the grant program. The office shall use moneys in the fund to 24 leverage available federal moneys if possible. 25 Sec. 8. Section 8B.11, subsection 2, Code 2020, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . d. Notwithstanding paragraph “c” or any 28 provision to the contrary, moneys in the fund that have been 29 awarded but not paid to a communications service provider 30 shall not revert but shall remain available to the office for 31 purposes of administering the award in a manner consistent with 32 the terms and conditions of any corresponding contract or grant 33 agreement governing the administration of the award. 34 Sec. 9. Section 8B.11, subsection 3, Code 2020, is amended 35 -3- SF 2400 (2) 88 ja/jh/mb 3/ 7
S.F. 2400 to read as follows: 1 3. Communications service providers may apply to the office 2 for a grant pursuant to this section for the installation 3 of broadband infrastructure that facilitates broadband 4 service in targeted service areas at or above the download 5 and upload speeds specified in the definition of targeted 6 service area in section 8B.1 subsection 5 . The office may, 7 by rule, increase the minimum download and upload speeds 8 for grant eligibility pursuant to this section . The office 9 shall include representatives from schools, communities, 10 agriculture, industry, and other areas as appropriate to review 11 and recommend grant awards. The office shall conduct an open 12 application review process that includes the opportunity 13 for the public to submit factual information as part of a 14 validation process to address claims that a targeted service 15 area is currently served with broadband service at or above 16 the download and upload speeds specified in the definition 17 of targeted service area in section 8B.1 subsection 5 . Upon 18 completion of the validation process, the office may modify 19 a proposed targeted service area to account for information 20 received during the validation process. The office shall make 21 available a public internet site identifying all publicly 22 available information contained in the applications, the 23 members of the review committee, a summary of the review 24 committee’s recommended results, and any results of performance 25 testing conducted after the project is completed. 26 Sec. 10. Section 8B.11, subsection 4, paragraph a, 27 unnumbered paragraph 1, Code 2020, is amended to read as 28 follows: 29 The office shall award grants on a competitive basis for 30 the installation of broadband infrastructure that facilitates 31 broadband service in targeted service areas at or above the 32 download and upload speeds specified in the definition of 33 targeted service area in section 8B.1 subsection 5 , after 34 considering the following: 35 -4- SF 2400 (2) 88 ja/jh/mb 4/ 7
S.F. 2400 Sec. 11. Section 8B.11, subsection 4, paragraph a, 1 subparagraph (2), Code 2020, is amended to read as follows: 2 (2) The applicant’s total proposed budget for the project, 3 including the all of the following: 4 (a) The amount or percentage of local or federal matching 5 funds, if any, and any funding obligations shared between 6 public and private entities , and the . 7 (b) The percentage of funding provided directly from the 8 applicant , including whether the applicant requested from the 9 office an amount less than the maximum amount the office could 10 award pursuant to subsection 5 and, if so, the percentage of 11 the project cost that the applicant is requesting . 12 Sec. 12. Section 8B.11, subsection 5, Code 2020, is amended 13 to read as follows: 14 5. The office shall not award a grant pursuant to this 15 section that exceeds fifteen any of the following amounts: 16 a. Thirty-five percent of the communications service 17 provider’s project cost, for projects that will result in the 18 installation of broadband infrastructure that will facilitate 19 broadband service providing a minimum download speed of one 20 hundred megabits per second and a minimum upload speed of 21 twenty megabits per second. 22 b. Fifteen percent of the communications service provider’s 23 project cost , for projects that will result in the installation 24 of broadband infrastructure that will facilitate broadband 25 service providing a minimum download speed less than one 26 hundred megabits per second but greater than or equal to the 27 download speed specified in the definition of targeted service 28 area in section 8B.1, and a minimum upload speed less than 29 twenty megabits per second but greater than or equal to the 30 upload speed specified in the definition of targeted service 31 area in section 8B.1 . 32 Sec. 13. Section 427.1, subsection 40, paragraph b, Code 33 2020, is amended to read as follows: 34 b. The exemption shall apply to the installation of 35 -5- SF 2400 (2) 88 ja/jh/mb 5/ 7
S.F. 2400 broadband infrastructure that facilitates broadband service 1 at or above the download and upload speeds specified in the 2 definition of targeted service area in section 8B.1 commenced 3 and completed on or after July 1, 2015, and before July 1, 4 2025, in a targeted service area, and used to deliver internet 5 services to the public. A person claiming an exemption under 6 this subsection shall certify to the local assessor prior to 7 commencement of the installation that the installation of 8 broadband infrastructure will facilitate broadband service 9 at or above the download and upload speeds specified in the 10 definition of targeted service area in section 8B.1 within a 11 targeted service area and shall specify the current number 12 of homes, farms, schools, and businesses in the targeted 13 service area that were offered to which broadband service was 14 facilitated and the download and upload speeds available prior 15 to the broadband infrastructure installation for which the 16 exemption is claimed and the number of homes, farms, schools, 17 and businesses in the targeted service area that will be 18 offered to which broadband service will be facilitated and the 19 download and upload speeds that will be available as a result 20 of installation of the broadband infrastructure for which the 21 exemption is claimed. 22 Sec. 14. Section 427.1, subsection 40, paragraph f, 23 subparagraph (1), subparagraph division (d), Code 2020, is 24 amended to read as follows: 25 (d) Certification from the office of the chief information 26 officer pursuant to section 8B.10 that the installation will 27 facilitate broadband service at or above the download and 28 upload speeds specified in the definition of targeted service 29 area in section 8B.1 in a targeted service area. 30 Sec. 15. 2019 Iowa Acts, chapter 136, section 6, subsection 31 1, is amended to read as follows: 32 1. There is appropriated from the general fund of the state 33 to the office of the chief information officer for the fiscal 34 year beginning July 1, 2019, and ending June 30, 2020, the 35 -6- SF 2400 (2) 88 ja/jh/mb 6/ 7
S.F. 2400 following amount, or so much thereof as is necessary, to be 1 used for the purposes designated: 2 For deposit in the connecting Iowa farms, schools, and 3 communities empower rural Iowa broadband grant fund established 4 under section 8B.11 for a broadband grant program; and for 5 salaries, support, maintenance, and miscellaneous purposes: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 7 Sec. 16. EFFECTIVE DATE. This Act, being deemed of 8 immediate importance, takes effect upon enactment. 9 Sec. 17. RETROACTIVE APPLICABILITY. The following applies 10 retroactively to July 1, 2015: 11 The section of this Act enacting section 8B.11, subsection 12 2, paragraph “d”. 13 -7- SF 2400 (2) 88 ja/jh/mb 7/ 7