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Senate File 2400 - ReprintedA Bill ForAn Act 1relating to broadband service, including matters under
2the purview of the office of the chief information officer,
3the empower rural Iowa broadband grant fund, and certain
4broadband infrastructure tax exemptions, and including
5effective date and retroactive applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 8B.1, subsections 5, 13, and 14, Code
22020, are amended to read as follows:
35. “Facilitate” means a communication service provider’s
4ability to provide broadband service at or above the download
5and upload speeds specified in the definition of targeted
6service area in this section or section 8B.11, subsection
75, paragraph “a”, if applicable, to a home, farm, school,
8or business within a commercially reasonable time and at a
9commercially reasonable price upon request by a consumer.
1013. “Targeted service area” means a any of the following:
11a. AUnited States census bureau census block located
12in this state, including any crop operation located within
13the census block, or other geographic unit the office sets
14by rule, within which no communications service provider
15offers or facilitates broadband service at or above the
16download and upload speeds identified by the federal
17communications commission pursuant to section 706 of the
18federal Telecommunications Act of 1996, as amended.
19b. Any geographic area, as the office sets by rule, that
20is materially underserved by broadband service such that
21the download and upload speeds identified by the federal
22communications commission pursuant to section 706 of the
23federal Telecommunications Act of 1996, as amended, of the
24broadband service in the geographic area are not meaningfully
25available. The office’s power to determine the geographic
26area by rule under this paragraph includes the power to define
27and interpret standards as to whether a geographic area is
28materially underserved and broadband service is meaningfully
29available.
3014. “Underserved area” means any portion of a targeted
31service area within which no communications service provider
32offers or facilitates broadband service meeting the download
33and upload speeds specified in the definition of targeted
34service area in this section.
35 Sec. 2. Section 8B.4, Code 2020, is amended by adding the
-1-1following new subsection:
2 NEW SUBSECTION. 17A. Provide technical assistance to
3communications service providers related to grant applications
4under section 8B.11.
5 Sec. 3. Section 8B.9, subsection 5, Code 2020, is amended
6to read as follows:
75. An annual report regarding the status of broadband
8expansion and coordination, the connecting Iowa farms, schools,
9and communities empower rural Iowa broadband grant program
10established under section 8B.11, and the adequacy of the speed
11set in the definition of targeted service area in section 8B.1.
12 Sec. 4. Section 8B.10, subsection 1, Code 2020, is amended
13to read as follows:
141. The determination of whether a communications service
15provider offers or facilitates broadband service meeting the
16download and upload speeds specified in the definition of
17targeted service area in section 8B.1 shall be determined
18or ascertained by reference to broadband availability maps
19or data sources that are widely accepted for accuracy and
20available for public review and comment and that are identified
21by the office by rule. The office shall periodically make
22renewed determinations of whether a communications service
23provider offers or facilitates broadband service at or above
24the download and upload speeds specified in the definition of
25targeted service area in section 8B.1, which shall, to the
26extent updated maps and data sources are available at the time,
27include making such determinations prior to each round of grant
28applications solicited by the office pursuant to section 8B.11.
29 Sec. 5. Section 8B.10, Code 2020, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 3. All findings and determinations made
32pursuant to this section shall exclude mobile wireless or
33satellite data, capabilities, and delivery mediums.
34 Sec. 6. Section 8B.11, subsection 1, Code 2020, is amended
35to read as follows:
-2- 11. The office shall administer a broadband grant program
2designed to reduce or eliminate unserved and underserved
3areas in the state, leveraging federal funds and public and
4private partnerships where possible, by awarding grants to
5communications service providers that reduce or eliminate
6targeted service areas by installing broadband infrastructure
7that facilitates broadband service in targeted service areas
8at or above the download and upload speeds specified in the
9definition of targeted service area in section 8B.1 subsection
105, in accordance with this section.
11 Sec. 7. Section 8B.11, subsection 2, paragraphs a and b,
12Code 2020, are amended to read as follows:
13a. A connecting Iowa farms, schools, and communities An
14empower rural Iowa broadband grant fund is established in the
15state treasury under the authority of the office. The fund
16shall consist of moneys available to and obtained or accepted
17by the office. Moneys in the fund are appropriated to the
18office to be used for the grant program, including for the
19administration and operation of the grant program.
20b. The office shall use moneys in the fund to provide grants
21to communications service providers pursuant to this section.
22The office may use moneys in the fund to pay the costs and
23expenses associated with the administration and operation of
24the grant program. The office shall use moneys in the fund to
25leverage available federal moneys if possible.
26 Sec. 8. Section 8B.11, subsection 2, Code 2020, is amended
27by adding the following new paragraph:
28 NEW PARAGRAPH. d. Notwithstanding paragraph “c” or any
29provision to the contrary, moneys in the fund that have been
30awarded but not paid to a communications service provider
31shall not revert but shall remain available to the office for
32purposes of administering the award in a manner consistent with
33the terms and conditions of any corresponding contract or grant
34agreement governing the administration of the award.
35 Sec. 9. Section 8B.11, subsection 3, Code 2020, is amended
-3-1to read as follows:
23. Communications service providers may apply to the office
3for a grant pursuant to this section for the installation
4of broadband infrastructure that facilitates broadband
5service in targeted service areas at or above the download
6and upload speeds specified in the definition of targeted
7service area in section 8B.1 subsection 5. The office may,
8by rule, increase the minimum download and upload speeds
9for grant eligibility pursuant to this section. The office
10shall include representatives from schools, communities,
11agriculture, industry, and other areas as appropriate to review
12and recommend grant awards. The office shall conduct an open
13application review process that includes the opportunity
14for the public to submit factual information as part of a
15validation process to address claims that a targeted service
16area is currently served with broadband service at or above
17the download and upload speeds specified in the definition
18of targeted service area in section 8B.1 subsection 5. Upon
19completion of the validation process, the office may modify
20a proposed targeted service area to account for information
21received during the validation process. The office shall make
22available a public internet site identifying all publicly
23available information contained in the applications, the
24members of the review committee, a summary of the review
25committee’s recommended results, and any results of performance
26testing conducted after the project is completed.
27 Sec. 10. Section 8B.11, subsection 4, paragraph a,
28unnumbered paragraph 1, Code 2020, is amended to read as
29follows:
30The office shall award grants on a competitive basis for
31the installation of broadband infrastructure that facilitates
32broadband service in targeted service areas at or above the
33download and upload speeds specified in the definition of
34targeted service area in section 8B.1 subsection 5, after
35considering the following:
-4-1 Sec. 11. Section 8B.11, subsection 4, paragraph a,
2subparagraph (2), Code 2020, is amended to read as follows:
3(2) The applicant’s total proposed budget for the project,
4including the all of the following:
5(a) Theamount or percentage of local or federal matching
6funds, if any, and any funding obligations shared between
7public and private entities, and the.
8(b) Thepercentage of funding provided directly from the
9applicant, including whether the applicant requested from the
10office an amount less than the maximum amount the office could
11award pursuant to subsection 5 and, if so, the percentage of
12the project cost that the applicant is requesting.
13 Sec. 12. Section 8B.11, subsection 5, Code 2020, is amended
14to read as follows:
155. The office shall not award a grant pursuant to this
16section that exceeds fifteen any of the following amounts:
17a. Thirty-five percent of the communications service
18provider’s project cost, for projects that will result in the
19installation of broadband infrastructure that will facilitate
20broadband service providing a minimum download speed of one
21hundred megabits per second and a minimum upload speed of
22twenty megabits per second.
23b. Fifteenpercent of the communications service provider’s
24project cost, for projects that will result in the installation
25of broadband infrastructure that will facilitate broadband
26service providing a minimum download speed less than one
27hundred megabits per second but greater than or equal to the
28download speed specified in the definition of targeted service
29area in section 8B.1, and a minimum upload speed less than
30twenty megabits per second but greater than or equal to the
31upload speed specified in the definition of targeted service
32area in section 8B.1.
33 Sec. 13. Section 427.1, subsection 40, paragraph b, Code
342020, is amended to read as follows:
35b. The exemption shall apply to the installation of
-5-1broadband infrastructure that facilitates broadband service
2at or above the download and upload speeds specified in the
3definition of targeted service area in section 8B.1 commenced
4and completed on or after July 1, 2015, and before July 1,
52025, in a targeted service area, and used to deliver internet
6services to the public. A person claiming an exemption under
7this subsection shall certify to the local assessor prior to
8commencement of the installation that the installation of
9broadband infrastructure will facilitate broadband service
10at or above the download and upload speeds specified in the
11definition of targeted service area in section 8B.1 within a
12targeted service area and shall specify the current number
13of homes, farms, schools, and businesses in the targeted
14service area that were offered to which broadband service was
15facilitated and the download and upload speeds available prior
16to the broadband infrastructure installation for which the
17exemption is claimed and the number of homes, farms, schools,
18and businesses in the targeted service area that will be
19offered to which broadband service will be facilitated and the
20download and upload speeds that will be available as a result
21of installation of the broadband infrastructure for which the
22exemption is claimed.
23 Sec. 14. Section 427.1, subsection 40, paragraph f,
24subparagraph (1), subparagraph division (d), Code 2020, is
25amended to read as follows:
26(d) Certification from the office of the chief information
27officer pursuant to section 8B.10 that the installation will
28facilitate broadband service at or above the download and
29upload speeds specified in the definition of targeted service
30area in section 8B.1 in a targeted service area.
31 Sec. 15. 2019 Iowa Acts, chapter 136, section 6, subsection
321, is amended to read as follows:
331. There is appropriated from the general fund of the state
34to the office of the chief information officer for the fiscal
35year beginning July 1, 2019, and ending June 30, 2020, the
-6-1following amount, or so much thereof as is necessary, to be
2used for the purposes designated:
3For deposit in the connecting Iowa farms, schools, and
4communities empower rural Iowa broadband grant fund established
5under section 8B.11 for a broadband grant program; and for
6salaries, support, maintenance, and miscellaneous purposes:
.................................................. $75,000,000
8 Sec. 16. EFFECTIVE DATE. This Act, being deemed of
9immediate importance, takes effect upon enactment.
10 Sec. 17. RETROACTIVE APPLICABILITY. The following applies
11retroactively to July 1, 2015:
12The section of this Act enacting section 8B.11, subsection
132, paragraph “d”.
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2the purview of the office of the chief information officer,
3the empower rural Iowa broadband grant fund, and certain
4broadband infrastructure tax exemptions, and including
5effective date and retroactive applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 8B.1, subsections 5, 13, and 14, Code
22020, are amended to read as follows:
35. “Facilitate” means a communication service provider’s
4ability to provide broadband service at or above the download
5and upload speeds specified in the definition of targeted
6service area in this section or section 8B.11, subsection
75, paragraph “a”, if applicable, to a home, farm, school,
8or business within a commercially reasonable time and at a
9commercially reasonable price upon request by a consumer.
1013. “Targeted service area” means a any of the following:
11a. AUnited States census bureau census block located
12in this state, including any crop operation located within
13the census block, or other geographic unit the office sets
14by rule, within which no communications service provider
15offers or facilitates broadband service at or above the
16download and upload speeds identified by the federal
17communications commission pursuant to section 706 of the
18federal Telecommunications Act of 1996, as amended.
19b. Any geographic area, as the office sets by rule, that
20is materially underserved by broadband service such that
21the download and upload speeds identified by the federal
22communications commission pursuant to section 706 of the
23federal Telecommunications Act of 1996, as amended, of the
24broadband service in the geographic area are not meaningfully
25available. The office’s power to determine the geographic
26area by rule under this paragraph includes the power to define
27and interpret standards as to whether a geographic area is
28materially underserved and broadband service is meaningfully
29available.
3014. “Underserved area” means any portion of a targeted
31service area within which no communications service provider
32offers or facilitates broadband service meeting the download
33and upload speeds specified in the definition of targeted
34service area in this section.
35 Sec. 2. Section 8B.4, Code 2020, is amended by adding the
-1-1following new subsection:
2 NEW SUBSECTION. 17A. Provide technical assistance to
3communications service providers related to grant applications
4under section 8B.11.
5 Sec. 3. Section 8B.9, subsection 5, Code 2020, is amended
6to read as follows:
75. An annual report regarding the status of broadband
8expansion and coordination, the connecting Iowa farms, schools,
9and communities empower rural Iowa broadband grant program
10established under section 8B.11, and the adequacy of the speed
11set in the definition of targeted service area in section 8B.1.
12 Sec. 4. Section 8B.10, subsection 1, Code 2020, is amended
13to read as follows:
141. The determination of whether a communications service
15provider offers or facilitates broadband service meeting the
16download and upload speeds specified in the definition of
17targeted service area in section 8B.1 shall be determined
18or ascertained by reference to broadband availability maps
19or data sources that are widely accepted for accuracy and
20available for public review and comment and that are identified
21by the office by rule. The office shall periodically make
22renewed determinations of whether a communications service
23provider offers or facilitates broadband service at or above
24the download and upload speeds specified in the definition of
25targeted service area in section 8B.1, which shall, to the
26extent updated maps and data sources are available at the time,
27include making such determinations prior to each round of grant
28applications solicited by the office pursuant to section 8B.11.
29 Sec. 5. Section 8B.10, Code 2020, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 3. All findings and determinations made
32pursuant to this section shall exclude mobile wireless or
33satellite data, capabilities, and delivery mediums.
34 Sec. 6. Section 8B.11, subsection 1, Code 2020, is amended
35to read as follows:
-2- 11. The office shall administer a broadband grant program
2designed to reduce or eliminate unserved and underserved
3areas in the state, leveraging federal funds and public and
4private partnerships where possible, by awarding grants to
5communications service providers that reduce or eliminate
6targeted service areas by installing broadband infrastructure
7that facilitates broadband service in targeted service areas
8at or above the download and upload speeds specified in the
9definition of targeted service area in section 8B.1 subsection
105, in accordance with this section.
11 Sec. 7. Section 8B.11, subsection 2, paragraphs a and b,
12Code 2020, are amended to read as follows:
13a. A connecting Iowa farms, schools, and communities An
14empower rural Iowa broadband grant fund is established in the
15state treasury under the authority of the office. The fund
16shall consist of moneys available to and obtained or accepted
17by the office. Moneys in the fund are appropriated to the
18office to be used for the grant program, including for the
19administration and operation of the grant program.
20b. The office shall use moneys in the fund to provide grants
21to communications service providers pursuant to this section.
22The office may use moneys in the fund to pay the costs and
23expenses associated with the administration and operation of
24the grant program. The office shall use moneys in the fund to
25leverage available federal moneys if possible.
26 Sec. 8. Section 8B.11, subsection 2, Code 2020, is amended
27by adding the following new paragraph:
28 NEW PARAGRAPH. d. Notwithstanding paragraph “c” or any
29provision to the contrary, moneys in the fund that have been
30awarded but not paid to a communications service provider
31shall not revert but shall remain available to the office for
32purposes of administering the award in a manner consistent with
33the terms and conditions of any corresponding contract or grant
34agreement governing the administration of the award.
35 Sec. 9. Section 8B.11, subsection 3, Code 2020, is amended
-3-1to read as follows:
23. Communications service providers may apply to the office
3for a grant pursuant to this section for the installation
4of broadband infrastructure that facilitates broadband
5service in targeted service areas at or above the download
6and upload speeds specified in the definition of targeted
7service area in section 8B.1 subsection 5. The office may,
8by rule, increase the minimum download and upload speeds
9for grant eligibility pursuant to this section. The office
10shall include representatives from schools, communities,
11agriculture, industry, and other areas as appropriate to review
12and recommend grant awards. The office shall conduct an open
13application review process that includes the opportunity
14for the public to submit factual information as part of a
15validation process to address claims that a targeted service
16area is currently served with broadband service at or above
17the download and upload speeds specified in the definition
18of targeted service area in section 8B.1 subsection 5. Upon
19completion of the validation process, the office may modify
20a proposed targeted service area to account for information
21received during the validation process. The office shall make
22available a public internet site identifying all publicly
23available information contained in the applications, the
24members of the review committee, a summary of the review
25committee’s recommended results, and any results of performance
26testing conducted after the project is completed.
27 Sec. 10. Section 8B.11, subsection 4, paragraph a,
28unnumbered paragraph 1, Code 2020, is amended to read as
29follows:
30The office shall award grants on a competitive basis for
31the installation of broadband infrastructure that facilitates
32broadband service in targeted service areas at or above the
33download and upload speeds specified in the definition of
34targeted service area in section 8B.1 subsection 5, after
35considering the following:
-4-1 Sec. 11. Section 8B.11, subsection 4, paragraph a,
2subparagraph (2), Code 2020, is amended to read as follows:
3(2) The applicant’s total proposed budget for the project,
4including the all of the following:
5(a) Theamount or percentage of local or federal matching
6funds, if any, and any funding obligations shared between
7public and private entities, and the.
8(b) Thepercentage of funding provided directly from the
9applicant, including whether the applicant requested from the
10office an amount less than the maximum amount the office could
11award pursuant to subsection 5 and, if so, the percentage of
12the project cost that the applicant is requesting.
13 Sec. 12. Section 8B.11, subsection 5, Code 2020, is amended
14to read as follows:
155. The office shall not award a grant pursuant to this
16section that exceeds fifteen any of the following amounts:
17a. Thirty-five percent of the communications service
18provider’s project cost, for projects that will result in the
19installation of broadband infrastructure that will facilitate
20broadband service providing a minimum download speed of one
21hundred megabits per second and a minimum upload speed of
22twenty megabits per second.
23b. Fifteenpercent of the communications service provider’s
24project cost, for projects that will result in the installation
25of broadband infrastructure that will facilitate broadband
26service providing a minimum download speed less than one
27hundred megabits per second but greater than or equal to the
28download speed specified in the definition of targeted service
29area in section 8B.1, and a minimum upload speed less than
30twenty megabits per second but greater than or equal to the
31upload speed specified in the definition of targeted service
32area in section 8B.1.
33 Sec. 13. Section 427.1, subsection 40, paragraph b, Code
342020, is amended to read as follows:
35b. The exemption shall apply to the installation of
-5-1broadband infrastructure that facilitates broadband service
2at or above the download and upload speeds specified in the
3definition of targeted service area in section 8B.1 commenced
4and completed on or after July 1, 2015, and before July 1,
52025, in a targeted service area, and used to deliver internet
6services to the public. A person claiming an exemption under
7this subsection shall certify to the local assessor prior to
8commencement of the installation that the installation of
9broadband infrastructure will facilitate broadband service
10at or above the download and upload speeds specified in the
11definition of targeted service area in section 8B.1 within a
12targeted service area and shall specify the current number
13of homes, farms, schools, and businesses in the targeted
14service area that were offered to which broadband service was
15facilitated and the download and upload speeds available prior
16to the broadband infrastructure installation for which the
17exemption is claimed and the number of homes, farms, schools,
18and businesses in the targeted service area that will be
19offered to which broadband service will be facilitated and the
20download and upload speeds that will be available as a result
21of installation of the broadband infrastructure for which the
22exemption is claimed.
23 Sec. 14. Section 427.1, subsection 40, paragraph f,
24subparagraph (1), subparagraph division (d), Code 2020, is
25amended to read as follows:
26(d) Certification from the office of the chief information
27officer pursuant to section 8B.10 that the installation will
28facilitate broadband service at or above the download and
29upload speeds specified in the definition of targeted service
30area in section 8B.1 in a targeted service area.
31 Sec. 15. 2019 Iowa Acts, chapter 136, section 6, subsection
321, is amended to read as follows:
331. There is appropriated from the general fund of the state
34to the office of the chief information officer for the fiscal
35year beginning July 1, 2019, and ending June 30, 2020, the
-6-1following amount, or so much thereof as is necessary, to be
2used for the purposes designated:
3For deposit in the connecting Iowa farms, schools, and
4communities empower rural Iowa broadband grant fund established
5under section 8B.11 for a broadband grant program; and for
6salaries, support, maintenance, and miscellaneous purposes:
.................................................. $75,000,000
8 Sec. 16. EFFECTIVE DATE. This Act, being deemed of
9immediate importance, takes effect upon enactment.
10 Sec. 17. RETROACTIVE APPLICABILITY. The following applies
11retroactively to July 1, 2015:
12The section of this Act enacting section 8B.11, subsection
132, paragraph “d”.
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