Bill Text: IA HF641 | 2015-2016 | 86th General Assembly | Amended
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 HF 576) (Formerly HSB 104)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2015-04-29 - Fiscal note. SCS. [HF641 Detail]
Download: Iowa-2015-HF641-Amended.html
House File 641 - Reprinted HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 576) (SUCCESSOR TO HSB 104) (As Amended and Passed by the House April 21, 2015) 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: HF 641 (4) 86 ad/sc/md 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 under 3 32 the authority of the office. The fund shall consist of moneys 3 33 available to and obtained or accepted by the office from the 3 34 federal government or private sources. Moneys in the fund are 3 35 appropriated to the office to be used for the grant program. 4 1 b. The office shall use moneys in the fund to provide grants 4 2 to communication service providers pursuant to this section. 4 3 The office shall use moneys in the fund to leverage available 4 4 federal moneys. 4 5 c. Notwithstanding section 8.33, moneys in the fund 4 6 that remain unencumbered or unobligated at the close of the 4 7 fiscal year shall not revert but shall remain available for 4 8 expenditure for the purposes designated until the close of the 4 9 succeeding fiscal year. 4 10 3. Communication service providers may apply to the office 4 11 for a grant pursuant to this section for the installation of 4 12 broadband infrastructure that facilitates broadband service 4 13 at or above twenty=five megabits per second of download speed 4 14 and three megabits per second of upload speed in targeted 4 15 service areas. The office shall include representatives from 4 16 schools, communities, agriculture, industry, and other areas 4 17 as appropriate to review and recommend grant awards. The 4 18 office shall conduct an open application review process and 4 19 include a public internet site for applications, results, and 4 20 performance. 4 21 4. a. The office shall award grants on a competitive basis 4 22 after considering the following: 4 23 (1) The relative need for broadband infrastructure in the 4 24 area and the existing broadband service speeds. 4 25 (2) The percentage of the homes, farms, schools, and 4 26 businesses in the targeted service area that will be provided 4 27 access to broadband service. 4 28 (3) The geographic diversity of the project areas of all the 4 29 applicants. 4 30 (4) The economic impact of the project to the area. 4 31 (5) The applicant's total proposed budget for the project, 4 32 including the amount or percentage of local match, if any. 4 33 (6) 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 purposes of this section: 5 13 a. "Fiberoptic network conduit" means a pipe, vault, 5 14 or duct used to enclose fiberoptic cable facilities buried 5 15 alongside a roadway or surface mounted on a bridge, overpass, 5 16 or other facility where placement below ground is impossible 5 17 or impractical. "Fiberoptic network conduit" does not include 5 18 electronics or cable. 5 19 b. "Public funding" does not include a tax exemption 5 20 authorized under section 427.1, subsection 40. 5 21 c. "Where such conduit does not exist" means that private 5 22 or publicly owned fiberoptic cable is not currently within a 5 23 linear range of five hundred feet or less in any one direction. 5 24 2. The office shall lead and coordinate a program to provide 5 25 for the installation of fiberoptic network conduit where such 5 26 conduit does not exist. The chief information officer shall 5 27 consult and coordinate with applicable agencies and entities 5 28 as determined appropriate to ensure that the opportunity is 5 29 provided to lay or install fiberoptic network conduit wherever 5 30 a state=funded construction project involves trenching, boring, 5 31 a bridge, a roadway, or opening of the ground, or alongside any 5 32 state=owned infrastructure. 5 33 3. Contingent upon the provision of funding for such 5 34 purposes by the general assembly, the office may contract 5 35 with a nongovernmental third party to manage, lease, install, 6 1 or otherwise provide fiberoptic network conduit access for 6 2 projects described in this section. This section does not 6 3 require coordination with or approval from the office pursuant 6 4 to this program or installation of fiberoptic conduit as 6 5 required by this section for construction projects not using 6 6 public funding. 6 7 Sec. 11. NEW SECTION. 8B.26 Broadband permitting process 6 8 ==== expeditious response. 6 9 Notwithstanding any other provision to the contrary, a 6 10 political subdivision vested with permitting authority shall 6 11 approve, approve with modification, or disapprove nonwireless, 6 12 broadband=related permits within sixty business days following 6 13 the submission of the necessary application requirements. In 6 14 the event that no action is taken during the sixty=day period, 6 15 the application shall be deemed approved. 6 16 Sec. 12. Section 8D.3, subsection 2, paragraph a, Code 2015, 6 17 is amended to read as follows: 6 18 a. The commission is composed of five voting members 6 19 appointed by the governor and subject to confirmation by the 6 20 senate.MembersVoting members of the commission shall not 6 21 serve in any manner or be employed by an authorized user of the 6 22 network or by an entity seeking to do or doing business with 6 23 the network. 6 24 (1) The governor shall appoint a voting member as the 6 25 chairperson of the commission from the five voting members 6 26appointed by the governor, subject to confirmation by the 6 27 senate. 6 28 (2)MembersVoting members of the commission shall serve 6 29 six=year staggered terms as designated by the governor and 6 30 appointments to the commission are subject to the requirements 6 31 of sections 69.16, 69.16A, and 69.19. Vacancies shall be 6 32 filled by the governor for the duration of the unexpired term. 6 33 (3) The salary of the voting members of the commission shall 6 34 be twelve thousand dollars per year, except that the salary 6 35 of the chairperson shall be seventeen thousand dollars per 7 1 year.MembersVoting members of the commission shall also be 7 2 reimbursed for all actual and necessary expenses incurred in 7 3 the performance of duties as members. The benefits and salary 7 4 paid to the voting members of the commission shall be adjusted 7 5 annually equal to the average of the annual pay adjustments, 7 6 expense reimbursements, and related benefits provided under 7 7 collective bargaining agreements negotiated pursuant to chapter 7 8 20. 7 9 Sec. 13. Section 8D.3, subsection 2, paragraph b, Code 2015, 7 10 is amended to read as follows: 7 11 b.In addition to the members appointed by the governor, 7 12 theThe auditor of state or the auditor's designee and the 7 13 chief information officer appointed pursuant to section 8B.2 7 14 or the chief information officer's designee shall serve asa7 15 nonvoting, ex officiomembermembers of the commission. 7 16 Sec. 14. Section 8D.4, Code 2015, is amended to read as 7 17 follows: 7 18 8D.4 Executive director appointed. 7 19 The commission, in consultation with the director of 7 20 the department of administrative services and the chief 7 21 information officer,shall appoint an executive director of 7 22 the commission, subject to confirmation by the senate. Such 7 23 individual shall not serve as a member of the commission. 7 24 The executive director shall serve at the pleasure of the 7 25 commission. The executive director shall be selected primarily 7 26 for administrative ability and knowledge in the field, without 7 27 regard to political affiliation. The governor shall establish 7 28 the salary of the executive director within range nine as 7 29 established by the general assembly. The salary and support of 7 30 the executive director shall be paid from funds deposited in 7 31 the Iowa communications network fund. 7 32 Sec. 15. Section 80.28, subsection 2, Code 2015, is amended 7 33 to read as follows: 7 34 2. The board shall consist offifteenseventeen voting 7 35 members, as follows: 8 1 a. The following members representing state agencies: 8 2 (1) One member representing the department of public 8 3 safety. 8 4 (2) One member representing the state department of 8 5 transportation. 8 6 (3) One member representing the department of homeland 8 7 security and emergency management. 8 8 (4) One member representing the department of corrections. 8 9 (5) One member representing the department of natural 8 10 resources. 8 11 (6) One member representing the Iowa department of public 8 12 health. 8 13 (7) One member representing the office of the chief 8 14 information officer created in section 8B.2. 8 15 b. The governor shall solicit and consider recommendations 8 16 from professional or volunteer organizations in appointing the 8 17 following members: 8 18 (1) Two members who are representatives from municipal 8 19 police departments. 8 20 (2) Two members who are representatives of sheriff's 8 21 offices. 8 22 (3) Two members who are representatives from fire 8 23 departments. One of the members shall be a volunteer fire 8 24 fighter and the other member shall be a paid fire fighter. 8 25 (4) Two members who are law communication center managers 8 26 employed by state or local government agencies. 8 27 (05) One member who is an emergency medical care provider 8 28 as defined in section 147A.1. 8 29 (5) One at=large member. 8 30 DIVISION III 8 31 PROPERTY TAX INCENTIVES AND ASSESSMENT 8 32 Sec. 16. Section 421.1A, subsection 3, Code 2015, is amended 8 33 to read as follows: 8 34 3. At the election of a property owner or aggrieved taxpayer 8 35 or an appellant described in section 441.42, the property 9 1 assessment appeal board shall review any final decision, 9 2 finding, ruling, determination, or order of a local board of 9 3 review relating to protests of an assessment, valuation, or 9 4 application of an equalization order, or any final decision 9 5 of the county board of supervisors relating to denial of an 9 6 application for a property tax exemption pursuant to section 9 7 427.1, subsection 40. 9 8 Sec. 17. Section 421.1A, subsection 4, Code 2015, is amended 9 9 by adding the following new paragraph: 9 10 NEW PARAGRAPH. 0b. Affirm or reverse a final decision 9 11 of a county board of supervisors relating to denial of an 9 12 application for a property tax exemption under section 427.1, 9 13 subsection 40. 9 14 Sec. 18. Section 427.1, Code 2015, is amended by adding the 9 15 following new subsection: 9 16 NEW SUBSECTION. 40. Broadband infrastructure. 9 17 a. The owner of broadband infrastructure shall be entitled 9 18 to an exemption from taxation to the extent provided in this 9 19 subsection. For the purposes of this subsection, "broadband 9 20 infrastructure" and "targeted service area" mean the same as 9 21 defined in section 8B.1. 9 22 b. The exemption shall apply to the installation of 9 23 broadband infrastructure that facilitates broadband service 9 24 at or above twenty=five megabits per second of download speed 9 25 and three megabits per second of upload speed commenced and 9 26 completed on or after July 1, 2015, in a targeted service area, 9 27 and used to deliver internet services to the public. A person 9 28 claiming an exemption under this subsection shall certify to 9 29 the local assessor prior to commencement of the installation 9 30 that the broadband installation will take place within a 9 31 targeted service area and shall specify the number of homes, 9 32 farms, schools, and businesses in the targeted service area 9 33 that will be offered broadband service. 9 34 c. The tax exemption shall be a one hundred percent 9 35 exemption from taxation for a period of ten years in an 10 1 amount equal to the actual value added by installation of the 10 2 broadband infrastructure. 10 3 d. For companies assessed by the department of revenue 10 4 pursuant to chapter 433, the exemption shall be limited to 10 5 an amount equal to the actual value added by installation of 10 6 the broadband infrastructure as of the assessment date as 10 7 determined by the department and the exemption shall be applied 10 8 prior to any other exemption applicable to the unit value, as 10 9 determined under that chapter. 10 10 e. (1) An application for an exemption shall be filed by 10 11 the owner of the property with the county board of supervisors 10 12 of each county in which the property is located by February 10 13 1 of the year in which the broadband infrastructure is first 10 14 assessed for taxation, or the following two assessment years, 10 15 and in each case the exemption is allowed for ten years. 10 16 (2) In lieu of subparagraph (1), and notwithstanding any 10 17 provision in this subsection to the contrary, an owner may at 10 18 any time before completion of the project submit a proposal to 10 19 the board of supervisors requesting that the board allow the 10 20 owner to file an application for exemption by February 1 of 10 21 any other assessment year following completion of the project, 10 22 which year shall be selected by the board. If the board, by 10 23 resolution, approves the proposal, the exemption is allowed for 10 24 ten years. 10 25 f. (1) The application shall be made on forms prescribed by 10 26 the director of revenue. The application shall contain but not 10 27 be limited to the following information: 10 28 (a) The nature of the broadband infrastructure 10 29 installation. 10 30 (b) The percentage of the homes, farms, schools, and 10 31 businesses in the targeted service area that will be provided 10 32 access to broadband service. 10 33 (c) The actual cost of installing the broadband 10 34 infrastructure under the project, if available. The 10 35 application shall contain supporting documents demonstrating 11 1 the actual cost. 11 2 (d) Certification from the office of the chief information 11 3 officer pursuant to section 8B.10 that the installation is 11 4 being performed or was completed in a targeted service area. 11 5 Certification from the office of the chief information officer 11 6 that broadband infrastructure installed in a targeted service 11 7 area facilitates broadband service at or above twenty=five 11 8 megabits per second of download speed and three megabits per 11 9 second of upload speed. 11 10 (e) Certification of the date of commencement and actual or 11 11 estimated date of completion. 11 12 (f) A copy of any nonwireless broadband=related permit 11 13 issued by a political subdivision. 11 14 (g) If applying pursuant to paragraph "e", subparagraph (2), 11 15 the actual cost already incurred for installation of broadband 11 16 infrastructure, if any, the estimated costs for project 11 17 completion, and the estimated date of project completion. The 11 18 application shall contain supporting documents demonstrating 11 19 the actual cost. 11 20 (2) The board of supervisors shall forward all approved 11 21 applications and any necessary information regarding the 11 22 applications to the appropriate local assessor or to the 11 23 department of revenue, as applicable, by March 1 annually. 11 24 After the tax exemption is granted, the local assessor 11 25 shall continue to grant the tax exemption for ten years, and 11 26 applications for exemption for succeeding years shall not be 11 27 required. 11 28 (3) An applicant for a property tax exemption under this 11 29 subsection may appeal the decision of the board of supervisors 11 30 regarding denial of the application to the property assessment 11 31 appeal board. 11 32 g. (1) If a company whose property in the county is not 11 33 assessed by the department of revenue is approved to receive a 11 34 property tax exemption pursuant to this subsection, the actual 11 35 value added by installation of the broadband infrastructure 12 1 shall be determined by the local assessor who shall certify the 12 2 amount of exemption determined to the county auditor at the 12 3 time of transmitting the assessment rolls. 12 4 (2) Notwithstanding any other provision of law to the 12 5 contrary, if a company in which all or a portion of the 12 6 company's property in the county is assessed by the department 12 7 pursuant to chapter 433 and the company's property in the 12 8 county is approved to receive a property tax exemption 12 9 pursuant to this subsection, the department shall assess 12 10 all the company's property in the county used for operating 12 11 telegraph and telephone lines, broadband, or cable systems for 12 12 each assessment year the company receives the exemption, for 12 13 purposes of determining the actual value added by installation 12 14 of the broadband infrastructure. 12 15 (3) (a) If assessing property pursuant to subparagraph (2), 12 16 the department shall certify the assessment value and exemption 12 17 amounts for all property used for the operation of providing 12 18 cable and broadband services and generally not assessed by 12 19 the department to the local assessor for inclusion on the 12 20 assessment rolls as provided in section 433.8, subsection 2. 12 21 (b) A company whose property is assessed by the department 12 22 pursuant to subparagraph (2) shall follow the appeal procedures 12 23 in chapter 429 for appealing any part of the assessment on 12 24 all the company's property, including the company's property 12 25 that would have been valued by the local assessor but for 12 26 subparagraph (2). For appeal proceedings for assessed values 12 27 submitted pursuant to subparagraph division (a), the department 12 28 shall notify the taxpayer of the right to appeal pursuant to 12 29 chapter 429. 12 30 h. The director of revenue may adopt rules pursuant to 12 31 chapter 17A for the interpretation and proper administration of 12 32 the exemption provided in this subsection. 12 33 Sec. 19. Section 433.8, Code 2015, is amended to read as 12 34 follows: 12 35 433.8 Assessment in each county ==== how certified. 13 1 1. The director of revenue shall, for the purpose of 13 2 determining what amount shall be assessed to each company 13 3 in each county of the state into which the line of the said 13 4 company extends, certify to the several county auditors of the 13 5 respective counties into, over, or through which said line 13 6 extends the number of miles of line in the county for that 13 7 company, the actual value per mile of line for that company, 13 8 and the exemption value per mile of line for that company for 13 9 exemptions received pursuant to section 427.1, subsection 40, 13 10 section 433.4, or any other exemptions. In no case, however, 13 11 shall the taxable value of the property be reduced below zero. 13 12 2. If assessing all of the property of a company pursuant to 13 13 section 427.1, subsection 40, paragraph "g", subparagraph (2), 13 14 the director shall also certify such amounts to the assessor 13 15 for inclusion on the assessment rolls. 13 16 Sec. 20. RULES. The office of the chief information 13 17 officer shall adopt rules pursuant to chapter 17A to certify 13 18 that the installation of broadband infrastructure meets the 13 19 requirements under section 427.1, subsection 40, as enacted in 13 20 this division of this Act, for purposes of receiving a property 13 21 tax exemption. 13 22 Sec. 21. IMPLEMENTATION. Section 25B.7 shall not apply to 13 23 this division of this Act. 13 24 Sec. 22. APPLICABILITY. This division of this Act applies 13 25 to assessment years beginning on or after January 1, 2016. 13 26 DIVISION IV 13 27 INFORMATION TECHNOLOGY INFRASTRUCTURE FOR EDUCATION 13 28 Sec. 23. Section 423F.3, subsection 6, Code 2015, is amended 13 29 by adding the following new paragraph: 13 30 NEW PARAGRAPH. 0c. Additionally, "school infrastructure" 13 31 includes the acquisition or installation of information 13 32 technology infrastructure. For purposes of this paragraph, 13 33 "information technology infrastructure" means the basic, 13 34 underlying physical framework or system necessary to deliver 13 35 technology connectivity to a school district and to network 14 1 school buildings within a school district. HF 641 (4) 86 ad/sc/md
