Bill Text: IA HF576 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to and providing for the coordination and facilitation of broadband access in targeted areas of the state, including property tax incentives for broadband infrastructure installation, a broadband grant program and fund, and including applicability provisions. (Formerly HSB 104) (See Cmte. Bill HF 641)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2015-04-21 - Withdrawn. H.J. 892. [HF576 Detail]
Download: Iowa-2015-HF576-Introduced.html
House File 576 - Introduced HOUSE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 104) A BILL FOR 1 An Act relating to and providing for the coordination and 2 facilitation of broadband access in targeted areas of the 3 state, including property tax incentives for broadband 4 infrastructure installation, a broadband grant program and 5 fund, and including applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1592HV (4) 86 ad/sc PAG LIN 1 1 DIVISION I 1 2 LEGISLATIVE INTENT 1 3 Section 1. SHORT TITLE. This Act shall be known and may be 1 4 cited as the "Connecting Iowa Farms, Schools, and Communities 1 5 Act". 1 6 Sec. 2. LEGISLATIVE INTENT. The general assembly finds 1 7 and declares that increasing the extent and availability of 1 8 broadband infrastructure throughout the state facilitates the 1 9 provision of internet access to citizens, farms, businesses, 1 10 and communities at speeds that promote economic development, 1 11 employment, enhanced access to goods and services, increased 1 12 educational and training opportunities, faster access to 1 13 government services and health care, and improved overall 1 14 information and community access. 1 15 DIVISION II 1 16 STATEWIDE BROADBAND COORDINATION 1 17 Sec. 3. Section 8B.1, Code 2015, is amended by adding the 1 18 following new subsections: 1 19 NEW SUBSECTION. 01. "Broadband" means a high=speed, 1 20 high=capacity electronic transmission medium, including fixed 1 21 wireless and mobile wireless mediums, that can carry data 1 22 signals from independent network sources by establishing 1 23 different bandwidth channels and that is commonly used to 1 24 deliver internet services to the public. 1 25 NEW SUBSECTION. 001. "Broadband infrastructure" means 1 26 the physical infrastructure used for the transmission of data 1 27 that provides broadband services. "Broadband infrastructure" 1 28 does not include land, buildings, structures, improvements, or 1 29 equipment not directly used in the transmission of data via 1 30 broadband. 1 31 NEW SUBSECTION. 0001. "Communications service provider" 1 32 means a service provider that provides broadband service. 1 33 NEW SUBSECTION. 00001. "Crop operation" means the same as 1 34 defined in section 717A.1. 1 35 NEW SUBSECTION. 7A. "Targeted service area" means a United 2 1 States census bureau census block located in this state, 2 2 including any crop operation located within the census block, 2 3 within which no communications service provider offers or 2 4 facilitates broadband service at or above twenty=five megabits 2 5 per second of download speed and three megabits per second of 2 6 upload speed. 2 7 Sec. 4. Section 8B.1, subsection 1, Code 2015, is amended 2 8 to read as follows: 2 9 1. "Information technology" means computing and electronics 2 10 applications used to process and distribute information in 2 11 digital and other forms and includes information technology 2 12 devices, information technology services, infrastructure 2 13 services, broadband and broadband infrastructure, and 2 14 value=added services. 2 15 Sec. 5. Section 8B.3, subsection 1, Code 2015, is amended 2 16 to read as follows: 2 17 1. The office is created for the purpose of leading, 2 18 directing, managing, coordinating, and providing accountability 2 19 for the information technology resources of state government 2 20 and for coordinating statewide broadband availability and 2 21 access. 2 22 Sec. 6. Section 8B.4, Code 2015, is amended by adding the 2 23 following new subsections: 2 24 NEW SUBSECTION. 14A. Streamline, consolidate, and 2 25 coordinate the access to and availability of broadband and 2 26 broadband infrastructure throughout the state, including but 2 27 not limited to the facilitation of public=private partnerships, 2 28 ensuring that all state agencies' broadband and broadband 2 29 infrastructure policies and procedures are aligned, resolving 2 30 issues which arise with regard to implementation efforts, 2 31 and collecting data and developing metrics or standards 2 32 against which the data may be measured and evaluated regarding 2 33 broadband infrastructure installation and deployment. 2 34 NEW SUBSECTION. 14B. Administer the broadband grant 2 35 program pursuant to section 8B.11. 3 1 NEW SUBSECTION. 14C. Coordinate the fiberoptic network 3 2 conduit installation program established in section 8B.25. 3 3 Sec. 7. Section 8B.9, Code 2015, is amended by adding the 3 4 following new subsection: 3 5 NEW SUBSECTION. 5. An annual report regarding the status 3 6 of broadband expansion and coordination, the connecting 3 7 Iowa farms, schools, and communities broadband grant program 3 8 established under section 8B.11, and the adequacy of the speed 3 9 set in the definition of targeted service area in section 8B.1. 3 10 Sec. 8. NEW SECTION. 8B.10 Targeted service areas ==== 3 11 determination ==== criteria. 3 12 1. The determination of whether a communications service 3 13 provider offers or facilitates broadband service meeting the 3 14 download or upload speeds specified in the definition of 3 15 targeted service area in section 8B.1 shall be determined or 3 16 ascertained by reference to broadband availability maps or data 3 17 sources that are widely accepted for accuracy and available for 3 18 public review and comment and that are identified by the office 3 19 by rule. 3 20 2. The office shall establish procedures to allow 3 21 challenges to the office's finding on whether an area meets the 3 22 definition of targeted service area. 3 23 Sec. 9. NEW SECTION. 8B.11 Connecting Iowa farms, schools, 3 24 and communities ==== broadband grants ==== fund. 3 25 1. The office shall administer a broadband grant program 3 26 to award grants to communication service providers that reduce 3 27 or eliminate targeted service areas by installing broadband 3 28 infrastructure in targeted service areas in accordance with 3 29 this section. 3 30 2. a. A connecting Iowa farms, schools, and communities 3 31 broadband grant fund is established in the state treasury 3 32 under the authority of the office. The fund shall consist of 3 33 moneys appropriated to the fund or appropriated to the office 3 34 for purposes of the grant program, moneys available to and 3 35 obtained or accepted by the office from the federal government 4 1 or private sources, or other funds available to the office 4 2 for purposes of the grant program. Moneys in the fund are 4 3 appropriated to the office to be used for the grant program. 4 4 b. The office shall use moneys in the fund to provide grants 4 5 to communication service providers pursuant to this section. 4 6 The office shall use moneys in the fund to leverage available 4 7 federal moneys. 4 8 c. Notwithstanding section 8.33, moneys in the fund 4 9 that remain unencumbered or unobligated at the close of the 4 10 fiscal year shall not revert but shall remain available for 4 11 expenditure for the purposes designated until the close of the 4 12 succeeding fiscal year. 4 13 3. Communication service providers may apply to the office 4 14 for a grant pursuant to this section for the installation of 4 15 broadband infrastructure that facilitates broadband service 4 16 at or above twenty=five megabits per second of download speed 4 17 and three megabits per second of upload speed in targeted 4 18 service areas. The office shall include representatives from 4 19 schools, communities, agriculture, industry, and other areas 4 20 as appropriate to review and recommend grant awards. The 4 21 office shall conduct an open application review process and 4 22 include a public internet site for applications, results, and 4 23 performance. 4 24 4. a. The office shall award grants on a competitive basis 4 25 after considering the following: 4 26 (1) The relative need for broadband infrastructure in the 4 27 area and the existing broadband service speeds. 4 28 (2) The geographic diversity of the project areas of all the 4 29 applicants. 4 30 (3) The economic impact of the project to the area. 4 31 (4) The applicant's total proposed budget for the project, 4 32 including the amount or percentage of local match, if any. 4 33 (5) Other factors the office deems relevant. 4 34 b. Except as otherwise provided in this section, the office 4 35 shall not evaluate applications based on the office's knowledge 5 1 of the applicant except for the information provided in the 5 2 application. 5 3 5. The office shall not award a grant pursuant to this 5 4 section that exceeds ten percent of the communication service 5 5 provider's project cost. 5 6 6. The office shall adopt rules pursuant to chapter 17A, 5 7 including but not limited to the broadband grant program 5 8 process, management, and measurements as deemed necessary by 5 9 the office. 5 10 Sec. 10. NEW SECTION. 8B.25 Fiberoptic network conduit 5 11 installation program. 5 12 1. For the purposes of this section, "fiberoptic network 5 13 conduit" means a pipe or duct used to enclose fiberoptic cable 5 14 facilities buried alongside a roadway or surface mounted on 5 15 a bridge, overpass, or other facility where placement below 5 16 ground is impossible or impractical. 5 17 2. The office shall lead and coordinate a program to 5 18 provide for the installation of fiberoptic network conduit 5 19 where such conduit does not exist. The chief information 5 20 officer shall consult and coordinate with the department of 5 21 administrative services, the department of transportation, the 5 22 Iowa communications network, and other agencies and entities 5 23 as determined appropriate to ensure that the opportunity is 5 24 provided to lay or install fiberoptic network conduit wherever 5 25 a state=funded construction project involves trenching, boring, 5 26 a bridge, a roadway, or opening of the ground, or alongside any 5 27 state=owned infrastructure. 5 28 3. Contingent upon the provision of funding for such 5 29 purposes by the general assembly, the office may contract with 5 30 a third party to manage, lease, install, or otherwise provide 5 31 fiberoptic network conduit access for projects described in 5 32 this section. This section shall not prohibit the office from 5 33 purchasing or installing fiberoptic cable within any fiberoptic 5 34 network conduit installed pursuant to the program. 5 35 Sec. 11. NEW SECTION. 8B.26 Broadband permitting process 6 1 ==== expeditious response. 6 2 Notwithstanding any other provision to the contrary, a 6 3 political subdivision vested with permitting authority shall 6 4 approve, approve with modification, or disapprove nonwireless, 6 5 broadband=related permits within sixty business days following 6 6 the submission of a permit application and fee. In the event 6 7 that no action is taken during the sixty=day period, the 6 8 application shall be deemed approved. 6 9 Sec. 12. Section 8D.3, subsection 2, paragraph a, Code 2015, 6 10 is amended to read as follows: 6 11 a. The commission is composed of five voting members 6 12 appointed by the governor and subject to confirmation by the 6 13 senate.MembersVoting members of the commission shall not 6 14 serve in any manner or be employed by an authorized user of the 6 15 network or by an entity seeking to do or doing business with 6 16 the network. 6 17 (1) The governor shall appoint a voting member as the 6 18 chairperson of the commission from the five voting members 6 19appointed by the governor, subject to confirmation by the 6 20 senate. 6 21 (2)MembersVoting members of the commission shall serve 6 22 six=year staggered terms as designated by the governor and 6 23 appointments to the commission are subject to the requirements 6 24 of sections 69.16, 69.16A, and 69.19. Vacancies shall be 6 25 filled by the governor for the duration of the unexpired term. 6 26 (3) The salary of the voting members of the commission shall 6 27 be twelve thousand dollars per year, except that the salary 6 28 of the chairperson shall be seventeen thousand dollars per 6 29 year.MembersVoting members of the commission shall also be 6 30 reimbursed for all actual and necessary expenses incurred in 6 31 the performance of duties as members. The benefits and salary 6 32 paid to the voting members of the commission shall be adjusted 6 33 annually equal to the average of the annual pay adjustments, 6 34 expense reimbursements, and related benefits provided under 6 35 collective bargaining agreements negotiated pursuant to chapter 7 1 20. 7 2 Sec. 13. Section 8D.3, subsection 2, paragraph b, Code 2015, 7 3 is amended to read as follows: 7 4 b.In addition to the members appointed by the governor, 7 5 theThe auditor of state or the auditor's designee and the 7 6 chief information officer appointed pursuant to section 8B.2 7 7 or the chief information officer's designee shall serve asa7 8 nonvoting, ex officiomembermembers of the commission. 7 9 Sec. 14. Section 8D.4, Code 2015, is amended to read as 7 10 follows: 7 11 8D.4 Executive director appointed. 7 12 The commission, in consultation with the director of 7 13 the department of administrative services and the chief 7 14 information officer,shall appoint an executive director of 7 15 the commission, subject to confirmation by the senate. Such 7 16 individual shall not serve as a member of the commission. 7 17 The executive director shall serve at the pleasure of the 7 18 commission. The executive director shall be selected primarily 7 19 for administrative ability and knowledge in the field, without 7 20 regard to political affiliation. The governor shall establish 7 21 the salary of the executive director within range nine as 7 22 established by the general assembly. The salary and support of 7 23 the executive director shall be paid from funds deposited in 7 24 the Iowa communications network fund. 7 25 Sec. 15. Section 80.28, subsection 2, Code 2015, is amended 7 26 to read as follows: 7 27 2. The board shall consist offifteenseventeen voting 7 28 members, as follows: 7 29 a. The following members representing state agencies: 7 30 (1) One member representing the department of public 7 31 safety. 7 32 (2) One member representing the state department of 7 33 transportation. 7 34 (3) One member representing the department of homeland 7 35 security and emergency management. 8 1 (4) One member representing the department of corrections. 8 2 (5) One member representing the department of natural 8 3 resources. 8 4 (6) One member representing the Iowa department of public 8 5 health. 8 6 (7) One member representing the office of the chief 8 7 information officer created in section 8B.2. 8 8 b. The governor shall solicit and consider recommendations 8 9 from professional or volunteer organizations in appointing the 8 10 following members: 8 11 (1) Two members who are representatives from municipal 8 12 police departments. 8 13 (2) Two members who are representatives of sheriff's 8 14 offices. 8 15 (3) Two members who are representatives from fire 8 16 departments. One of the members shall be a volunteer fire 8 17 fighter and the other member shall be a paid fire fighter. 8 18 (4) Two members who are law communication center managers 8 19 employed by state or local government agencies. 8 20 (05) One member who is an emergency medical care provider 8 21 as defined in section 147A.1. 8 22 (5) One at=large member. 8 23 DIVISION III 8 24 PROPERTY TAX INCENTIVES AND ASSESSMENT 8 25 Sec. 16. Section 421.1A, subsection 3, Code 2015, is amended 8 26 to read as follows: 8 27 3. At the election of a property owner or aggrieved taxpayer 8 28 or an appellant described in section 441.42, the property 8 29 assessment appeal board shall review any final decision, 8 30 finding, ruling, determination, or order of a local board of 8 31 review relating to protests of an assessment, valuation, or 8 32 application of an equalization order, or any final decision 8 33 of the county board of supervisors relating to denial of an 8 34 application for a property tax exemption pursuant to section 8 35 427.1, subsection 40. 9 1 Sec. 17. Section 421.1A, subsection 4, Code 2015, is amended 9 2 by adding the following new paragraph: 9 3 NEW PARAGRAPH. 0b. Affirm or reverse a final decision 9 4 of a county board of supervisors relating to denial of an 9 5 application for a property tax exemption under section 427.1, 9 6 subsection 40. 9 7 Sec. 18. Section 427.1, Code 2015, is amended by adding the 9 8 following new subsection: 9 9 NEW SUBSECTION. 40. Broadband infrastructure. 9 10 a. The owner of broadband infrastructure shall be entitled 9 11 to an exemption from taxation to the extent provided in this 9 12 subsection. For the purposes of this subsection, "broadband 9 13 infrastructure" and "targeted service area" mean the same as 9 14 defined in section 8B.1. 9 15 b. The exemption shall apply to the installation of 9 16 broadband infrastructure that facilitates broadband service 9 17 at or above twenty=five megabits per second of download speed 9 18 and three megabits per second of upload speed commenced and 9 19 completed on or after July 1, 2014, in a targeted service area, 9 20 and used to deliver internet services to the public. A person 9 21 claiming an exemption under this subsection shall certify to 9 22 the local assessor prior to commencement of the installation 9 23 that the broadband installation will take place within a 9 24 targeted service area. 9 25 c. The tax exemption shall be a one hundred percent 9 26 exemption from taxation for a period of ten years in an 9 27 amount equal to the actual value added by installation of the 9 28 broadband infrastructure. 9 29 d. For companies assessed by the department of revenue 9 30 pursuant to chapter 433, the exemption shall be limited to 9 31 an amount equal to the actual value added by installation of 9 32 the broadband infrastructure as of the assessment date as 9 33 determined by the department and the exemption shall be applied 9 34 prior to any other exemption applicable to the unit value, as 9 35 determined under that chapter. 10 1 e. (1) An application for an exemption shall be filed by 10 2 the owner of the property with the county board of supervisors 10 3 of each county in which the property is located by February 10 4 1 of the year in which the broadband infrastructure is first 10 5 assessed for taxation, or the following two assessment years, 10 6 and in each case the exemption is allowed for ten years. 10 7 (2) In lieu of subparagraph (1), and notwithstanding any 10 8 provision in this subsection to the contrary, an owner may at 10 9 any time before completion of the project submit a proposal to 10 10 the board of supervisors requesting that the board allow the 10 11 owner to file an application for exemption by February 1 of 10 12 any other assessment year following completion of the project, 10 13 which year shall be selected by the board. If the board, by 10 14 resolution, approves the proposal, the exemption is allowed for 10 15 ten years. 10 16 f. (1) The application shall be made on forms prescribed by 10 17 the director of revenue. The application shall contain but not 10 18 be limited to the following information: 10 19 (a) The nature of the broadband infrastructure 10 20 installation. 10 21 (b) The actual cost of installing the broadband 10 22 infrastructure under the project, if available. The 10 23 application shall contain supporting documents demonstrating 10 24 the actual cost. 10 25 (c) Certification from the office of the chief information 10 26 officer pursuant to section 8B.10 that the installation is 10 27 being performed or was completed in a targeted service area. 10 28 Certification from the office of the chief information officer 10 29 that broadband infrastructure installed in a targeted service 10 30 area facilitates broadband service at or above twenty=five 10 31 megabits per second of download speed and three megabits per 10 32 second of upload speed. 10 33 (d) Certification of the date of commencement and actual or 10 34 estimated date of completion. 10 35 (e) A copy of any nonwireless broadband=related permit 11 1 issued by a political subdivision. 11 2 (f) If applying pursuant to paragraph "e", subparagraph (2), 11 3 the actual cost already incurred for installation of broadband 11 4 infrastructure, if any, the estimated costs for project 11 5 completion, and the estimated date of project completion. The 11 6 application shall contain supporting documents demonstrating 11 7 the actual cost. 11 8 (2) The board of supervisors shall forward all approved 11 9 applications and any necessary information regarding the 11 10 applications to the appropriate local assessor or to the 11 11 department of revenue, as applicable, by March 1 annually. 11 12 After the tax exemption is granted, the local assessor 11 13 shall continue to grant the tax exemption for ten years, and 11 14 applications for exemption for succeeding years shall not be 11 15 required. 11 16 (3) An applicant for a property tax exemption under this 11 17 subsection may appeal the decision of the board of supervisors 11 18 regarding denial of the application to the property assessment 11 19 appeal board. 11 20 g. (1) If a company whose property in the county is not 11 21 assessed by the department of revenue is approved to receive a 11 22 property tax exemption pursuant to this subsection, the actual 11 23 value added by installation of the broadband infrastructure 11 24 shall be determined by the local assessor who shall certify the 11 25 amount of exemption determined to the county auditor at the 11 26 time of transmitting the assessment rolls. 11 27 (2) Notwithstanding any other provision of law to the 11 28 contrary, if a company in which all or a portion of the 11 29 company's property in the county is assessed by the department 11 30 pursuant to chapter 433 and the company's property in the 11 31 county is approved to receive a property tax exemption 11 32 pursuant to this subsection, the department shall assess 11 33 all the company's property in the county used for operating 11 34 telegraph and telephone lines, broadband, or cable systems for 11 35 each assessment year the company receives the exemption, for 12 1 purposes of determining the actual value added by installation 12 2 of the broadband infrastructure. 12 3 (3) (a) If assessing property pursuant to subparagraph (2), 12 4 the department shall certify the assessment value and exemption 12 5 amounts for all property used for the operation of providing 12 6 cable and broadband services and generally not assessed by 12 7 the department to the local assessor for inclusion on the 12 8 assessment rolls as provided in section 433.8, subsection 2. 12 9 (b) A company whose property is assessed by the department 12 10 pursuant to subparagraph (2) shall follow the appeal procedures 12 11 in chapter 429 for appealing any part of the assessment on 12 12 all the company's property, including the company's property 12 13 that would have been valued by the local assessor but for 12 14 subparagraph (2). For appeal proceedings for assessed values 12 15 submitted pursuant to subparagraph division (a), the department 12 16 shall notify the taxpayer of the right to appeal pursuant to 12 17 chapter 429. 12 18 h. The director of revenue may adopt rules pursuant to 12 19 chapter 17A for the interpretation and proper administration of 12 20 the exemption provided in this subsection. 12 21 Sec. 19. Section 433.8, Code 2015, is amended to read as 12 22 follows: 12 23 433.8 Assessment in each county ==== how certified. 12 24 1. The director of revenue shall, for the purpose of 12 25 determining what amount shall be assessed to each company 12 26 in each county of the state into which the line of the said 12 27 company extends, certify to the several county auditors of the 12 28 respective counties into, over, or through which said line 12 29 extends the number of miles of line in the county for that 12 30 company, the actual value per mile of line for that company, 12 31 and the exemption value per mile of line for that company for 12 32 exemptions received pursuant to section 427.1, subsection 40, 12 33 section 433.4, or any other exemptions. In no case, however, 12 34 shall the taxable value of the property be reduced below zero. 12 35 2. If assessing all of the property of a company pursuant to 13 1 section 427.1, subsection 40, paragraph "g", subparagraph (2), 13 2 the director shall also certify such amounts to the assessor 13 3 for inclusion on the assessment rolls. 13 4 Sec. 20. RULES. The office of the chief information 13 5 officer shall adopt rules pursuant to chapter 17A to certify 13 6 that the installation of broadband infrastructure meets the 13 7 requirements under section 427.1, subsection 40, as enacted in 13 8 this division of this Act, for purposes of receiving a property 13 9 tax exemption. 13 10 Sec. 21. IMPLEMENTATION. Section 25B.7 shall not apply to 13 11 this division of this Act. 13 12 Sec. 22. IMPLEMENTATION. Notwithstanding section 427.1, 13 13 subsection 40, paragraph "b", as enacted in this division 13 14 of this Act, owners of broadband infrastructure seeking an 13 15 exemption for the installation of broadband infrastructure 13 16 commenced between July 1, 2014, and the effective date of this 13 17 division of this Act, shall certify to the local assessor that 13 18 the broadband infrastructure installation took place within 13 19 a targeted service area prior to applying for an exemption 13 20 pursuant to this division of this Act. 13 21 Sec. 23. APPLICABILITY. 13 22 1. This division of this Act applies to assessment years 13 23 beginning on or after January 1, 2016. 13 24 2. Notwithstanding section 427.1, subsection 40, paragraph 13 25 "e", subparagraph (1), as enacted in this division of this 13 26 Act, in the case of projects commenced and completed between 13 27 July 1, 2014, and December 31, 2014, an owner seeking an 13 28 exemption shall first file an application for an exemption with 13 29 the county board of supervisors of each county in which the 13 30 property is located by February 1, 2016, or the following two 13 31 assessment years, and in each case the exemption is allowed for 13 32 ten years. 13 33 DIVISION IV 13 34 INFORMATION TECHNOLOGY INFRASTRUCTURE FOR EDUCATION 13 35 Sec. 24. Section 423F.3, subsection 6, Code 2015, is amended 14 1 by adding the following new paragraph: 14 2 NEW PARAGRAPH. 0c. Additionally, "school infrastructure" 14 3 includes the acquisition or installation of information 14 4 technology infrastructure. For purposes of this paragraph, 14 5 "information technology infrastructure" means the basic, 14 6 underlying physical framework or system necessary to deliver 14 7 technology connectivity to a school district and to network 14 8 school buildings within a school district. 14 9 EXPLANATION 14 10 The inclusion of this explanation does not constitute agreement with 14 11 the explanation's substance by the members of the general assembly. 14 12 This bill relates to and provides for the coordination and 14 13 facilitation of broadband access in targeted service areas of 14 14 the state. The bill is titled the "Connecting Iowa Farms, 14 15 Schools, and Communities Act". 14 16 DIVISION I ==== LEGISLATIVE INTENT. The division provides 14 17 that the general assembly finds and declares that increasing 14 18 the extent and availability of broadband infrastructure 14 19 throughout the state facilitates the provision of internet 14 20 access to citizens, businesses, farms, and communities at 14 21 speeds that promote economic development, employment, enhanced 14 22 access to goods and services, increased educational and 14 23 training opportunities, faster access to government services 14 24 and health care, and improved overall information and community 14 25 access. 14 26 DIVISION II ==== STATEWIDE BROADBAND COORDINATION. The 14 27 division modifies provisions in Code chapter 8B, relating to 14 28 the office of the chief information officer. The division adds 14 29 several definitions to the Code chapter for use in the Code 14 30 chapter and in other related provisions. The division defines 14 31 "broadband" to mean a high=speed, high=capacity electronic 14 32 transmission medium, including fixed wireless and mobile 14 33 wireless mediums, that can carry data signals from independent 14 34 network sources by establishing different bandwidth channels 14 35 and that is commonly used to deliver internet services to the 15 1 public. The division defines "broadband infrastructure" to 15 2 mean the physical infrastructure used for the transmission 15 3 of data that provides broadband services. The division 15 4 defines "communications service provider" to mean a service 15 5 provider that provides broadband service. The division defines 15 6 "targeted service area" to mean a United States census bureau 15 7 census block located in Iowa, including any crop operation 15 8 located within the census block, within which no communications 15 9 service provider offers or facilitates broadband service 15 10 at or above 25 megabits per second of download speed and 3 15 11 megabits per second of upload speed. The division defines 15 12 "crop operation" by referencing a definition contained in Code 15 13 section 717A.1 as meaning a commercial enterprise where a crop 15 14 is maintained on the property of the commercial enterprise. 15 15 Additionally, the division adds broadband and broadband 15 16 infrastructure to an existing definition of "information 15 17 technology". 15 18 The division adds to the powers and duties of the chief 15 19 information officer streamlining, consolidating, and 15 20 coordinating access to and availability of broadband and 15 21 broadband infrastructure throughout Iowa. 15 22 The division provides that the determination of whether 15 23 a provider's download and upload speeds are being met for 15 24 purposes of the definition of "targeted service area" shall be 15 25 by reference to broadband availability maps or data sources 15 26 identified by the office by rule. The division directs the 15 27 office to establish procedures to allow challenges to the 15 28 office's finding on whether an area meets the definition of 15 29 "targeted service area". 15 30 The division establishes a connecting Iowa farms, schools, 15 31 and communities grant program and fund. The division requires 15 32 the office of the chief information officer to administer 15 33 a broadband grant program to award grants to communication 15 34 service providers that reduce or eliminate targeted service 15 35 areas by installing broadband infrastructure in targeted 16 1 service areas. The division establishes a fund, consisting 16 2 of moneys appropriated to it or appropriated to the office 16 3 or otherwise available to the office for purposes of the 16 4 grant program. The moneys in the fund are appropriated 16 5 to the office of the chief information officer. The bill 16 6 provides that communication service providers may apply to 16 7 the office for a grant. The division requires the office to 16 8 include representatives from schools, communities, agriculture, 16 9 industry, and other areas as appropriate to review and 16 10 recommend grant awards. The division also requires the 16 11 office to conduct an open application review process and 16 12 include a public internet site for applications, results, 16 13 and performance. The division sets criteria for the office 16 14 to consider when awarding grants. The division limits grant 16 15 amounts to a maximum of 10 percent of the communication service 16 16 provider's project cost. 16 17 The division also adds to the powers and duties of the chief 16 18 information officer the responsibility for coordinating a new 16 19 fiberoptic network conduit installation program to facilitate 16 20 incorporation of fiberoptic network conduit installations, as 16 21 defined by the bill, into state=funded construction projects 16 22 or by state=owned infrastructure. The division provides that, 16 23 subject to funding from the general assembly, the office 16 24 may contract with a third party to manage, lease, install, 16 25 or otherwise provide fiberoptic network conduit access, and 16 26 the program shall not prohibit the office from purchasing or 16 27 installing fiberoptic cable within fiberoptic network conduit 16 28 installed pursuant to the program. 16 29 Additionally, the division specifies expeditious response 16 30 requirements regarding the approval, modification, or 16 31 disapproval of nonwireless broadband=related permits. The 16 32 division provides that, notwithstanding any other provision to 16 33 the contrary, a political subdivision vested with permitting 16 34 authority shall approve, approve with modification, or 16 35 disapprove nonwireless broadband=related permits within 60 17 1 business days following the submission of a permit application 17 2 and fee. In the event that no action is taken during the 60=day 17 3 period, the application shall be deemed approved. 17 4 The division also requires the chief information officer 17 5 to prepare an annual report regarding the status of broadband 17 6 expansion and coordination, the broadband grant program, and 17 7 the adequacy of the speed set in the definition of targeted 17 8 service area. The division adds the chief information officer 17 9 to the Iowa telecommunications and technology commission 17 10 which oversees the operation of the Iowa communications 17 11 network and to the statewide interoperable communications 17 12 system board established in Code section 80.28. The division 17 13 makes corresponding changes. Further, the division adds an 17 14 additional member to the board who is an emergency medical 17 15 care provider, and eliminates a provision that required the 17 16 commission to consult with the director of the department of 17 17 administrative services and the chief information officer when 17 18 appointing the commission's executive director. 17 19 DIVISION III ==== PROPERTY TAX INCENTIVES AND ASSESSMENT. The 17 20 division provides a property tax exemption for installation of 17 21 broadband infrastructure that facilitates broadband service at 17 22 or above 25 megabits per second of download speed and three 17 23 megabits per second of upload speed within a targeted service 17 24 area, which installation is commenced and completed on or 17 25 after July 1, 2014, and which is used to deliver internet 17 26 services to the public. The exemption shall be a 100 percent 17 27 exemption from taxation for a period of 10 years based on 17 28 the actual value added by the installation of the broadband 17 29 infrastructure. The division specifies procedures relating 17 30 to applying for the tax exemption with the county board of 17 31 supervisors within which the broadband infrastructure is 17 32 located, granting the tax exemption, and assessing the property 17 33 of companies receiving the exemption. 17 34 The division applies to assessment years beginning on or 17 35 after January 1, 2016. The division provides that property 18 1 owners seeking an exemption for installation of broadband 18 2 infrastructure commenced between July 1, 2014, and the 18 3 effective date of the division of the bill must certify to 18 4 the local assessor that the installation of the broadband 18 5 infrastructure took place within a targeted service area prior 18 6 to applying for an exemption. All other property owners 18 7 must certify to the local assessor prior to commencement of 18 8 the installation. The division also provides that property 18 9 owners seeking an exemption for the installation of broadband 18 10 infrastructure commenced and completed between July 1, 2014, 18 11 and December 31, 2014, shall first file an application for an 18 12 exemption with the county board of supervisors by February 1, 18 13 2016, or the following two assessment years. An exemption 18 14 filed pursuant to this provision of the division is allowed for 18 15 10 years. 18 16 Code section 25B.7 provides that for a property tax credit 18 17 or exemption enacted on or after January 1, 1997, if a state 18 18 appropriation made to fund the credit or exemption is not 18 19 sufficient to fully fund the credit or exemption, the political 18 20 subdivision shall be required to extend to the taxpayer only 18 21 that portion of the credit or exemption estimated by the 18 22 department of revenue to be funded by the state appropriation. 18 23 The division provides that Code section 25B.7 does not apply to 18 24 the property tax exemption created under this division. 18 25 DIVISION IV == INFORMATION TECHNOLOGY INFRASTRUCTURE FOR 18 26 EDUCATION. The division provides that school infrastructure 18 27 for purposes of statewide school infrastructure funding 18 28 includes the acquisition or installation of information 18 29 technology infrastructure, as defined in the division. LSB 1592HV (4) 86 ad/sc
