Bill Text: IA SSB1089 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to broadband service, including matters under the purview of the office of the chief information officer, the empower rural Iowa broadband grant fund, and including effective date and applicability provisions.(See SF 390.)

Spectrum: Committee Bill

Status: (Introduced) 2021-02-16 - Committee report approving bill, renumbered as SF 390. [SSB1089 Detail]

Download: Iowa-2021-SSB1089-Introduced.html
Senate Study Bill 1089 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BILL) 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 including 3 effective date and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1939XL (3) 89 jda/rn
S.F. _____ H.F. _____ Section 1. Section 8B.1, subsections 5, 13, and 14, Code 1 2021, 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 any of the following: 10 a. A United States census bureau census block located in 11 this state, including any crop operation located within the 12 census block, or other geographic unit the office sets by 13 rule, within which no communications service provider offers 14 or facilitates broadband service at or above the tier 1, tier 15 2, or tier 3 download and upload speeds identified by the 16 federal communications commission pursuant to section 706 of 17 the federal Telecommunications Act of 1996 , as amended . As 18 used in this subsection: 19 (1) “Tier 1” means a minimum download speed of less than 20 twenty-five megabits per second and a minimum upload speed of 21 less than three megabits per second. 22 (2) “Tier 2” means a minimum download speed of greater than 23 or equal to twenty-five megabits per second but less than fifty 24 megabits per second and a minimum upload speed of greater than 25 or equal to three megabits per second. 26 (3) “Tier 3” means a minimum download speed of greater than 27 or equal to fifty megabits per second but less than eighty 28 megabits per second. 29 b. Any geographic area, as the office sets by rule, that 30 is materially underserved by broadband service such that 31 the download and upload speeds identified by the federal 32 communications commission pursuant to section 706 of the 33 federal Telecommunications Act of 1996 , as amended, of the 34 broadband service in the geographic area tier 1, tier 2, 35 -1- LSB 1939XL (3) 89 jda/rn 1/ 10
S.F. _____ H.F. _____ and tier 3 download and upload speeds are not meaningfully 1 available. The office’s power to determine the geographic 2 area by rule under this paragraph includes the power to define 3 and interpret standards as to whether a geographic area is 4 materially underserved and broadband service is meaningfully 5 available. 6 14. “Underserved area” means any portion of a targeted 7 service area within which no communications service provider 8 facilitates broadband service meeting the tier 1 download and 9 upload speeds specified in the definition of targeted service 10 area in this section . 11 Sec. 2. Section 8B.10, subsection 1, Code 2021, is amended 12 to read as follows: 13 1. The determination of whether a communications service 14 provider facilitates broadband service meeting the tier 15 1, tier 2, or tier 3 download and upload speeds specified 16 in the definition of targeted service area in section 8B.1 17 shall be determined or ascertained by reference to broadband 18 availability maps or data sources that are identified by 19 the office by rule. The office shall periodically make 20 renewed determinations of whether a communications service 21 provider facilitates broadband service at or above the tier 22 1, tier 2, or tier 3 download and upload speeds specified 23 in the definition of targeted service area in section 8B.1 , 24 which shall, to the extent updated maps and data sources are 25 available at the time, include making such determinations prior 26 to each round of grant applications solicited by the office 27 pursuant to section 8B.11 . The office is not required to make 28 renewed determinations of whether a communications service 29 provider facilitates broadband service at or above the tier 30 1, tier 2, or tier 3 download and upload speeds specified in 31 the definition of targeted service area in section 8B.1 more 32 frequently than once in any calendar year. 33 Sec. 3. Section 8B.11, Code 2021, is amended to read as 34 follows: 35 -2- LSB 1939XL (3) 89 jda/rn 2/ 10
S.F. _____ H.F. _____ 8B.11 Empower rural Iowa —— broadband grants —— fund. 1 1. The office shall administer a broadband grant program 2 designed to reduce or eliminate unserved and underserved 3 areas in the state, leveraging federal funds and public and 4 private partnerships where possible, by awarding grants to 5 communications service providers that reduce or eliminate 6 targeted service areas by installing broadband infrastructure 7 that facilitates broadband service providing a minimum download 8 speed of one hundred megabits per second and a minimum upload 9 speed of one hundred megabits per second in targeted service 10 areas at or above the download and upload speeds specified in 11 subsection 5 , in accordance with this section . 12 2. a. An empower rural Iowa broadband grant fund is 13 established in the state treasury under the authority of the 14 office. The fund shall consist of moneys available to and 15 obtained or accepted by the office. Moneys in the fund are 16 appropriated to the office to be used for the grant program, 17 including for broadband mapping and the administration and 18 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 not more than one three percent of the 22 moneys in the fund at the beginning of the fiscal year to pay 23 the costs and expenses associated with the administration and 24 operation of the grant program. The office shall use moneys in 25 the fund to leverage available federal moneys if possible. 26 c. Notwithstanding section 8.33 , moneys in the fund 27 that remain unencumbered or unobligated at the close of the 28 fiscal year shall not revert but shall remain available for 29 expenditure for the purposes designated until three years 30 following the last day of the fiscal year in which the funds 31 were originally appropriated. 32 d. Notwithstanding paragraph “c” or any provision to the 33 contrary, moneys in the fund that have been awarded but not 34 paid to a communications service provider shall not revert 35 -3- LSB 1939XL (3) 89 jda/rn 3/ 10
S.F. _____ H.F. _____ but shall remain available to the office for purposes of 1 administering the award in a manner consistent with the terms 2 and conditions of any corresponding contract or grant agreement 3 governing the administration of the award. 4 3. Communications service providers may apply to the office 5 for a grant pursuant to this section for the installation of 6 broadband infrastructure that facilitates broadband service 7 providing a minimum download speed of one hundred megabits 8 per second and a minimum upload speed of one hundred megabits 9 per second in targeted service areas at or above the download 10 and upload speeds specified in subsection 5 . The office 11 shall include representatives from schools, communities, 12 agriculture, industry, and other areas as appropriate to review 13 and recommend grant awards. The office shall conduct an open 14 application review process that includes the opportunity 15 for the public to submit factual information as part of a 16 validation process to address claims that a targeted service 17 area is currently served with broadband service at or above the 18 download and upload speeds specified in subsection 5 . Upon 19 completion of the validation process, the office may modify 20 a proposed targeted service area to account for information 21 received during the validation process . The office shall make 22 available a public internet site identifying all publicly 23 available information contained in the applications , the 24 members of the review committee, a summary of the review 25 committee’s recommended results, and any results of performance 26 testing conducted after the project is completed. 27 4. a. The office shall award grants on a competitive 28 basis for the installation of broadband infrastructure that 29 facilitates broadband service as provided in subsection 3 in 30 targeted service areas at or above the download and upload 31 speeds specified in subsection 5 , after considering the 32 following: 33 (1) The relative need for broadband infrastructure in the 34 area and the existing broadband service speeds, including 35 -4- LSB 1939XL (3) 89 jda/rn 4/ 10
S.F. _____ H.F. _____ whether the project serves a rural area or areas. 1 (2) The applicant’s total proposed budget for the project, 2 including all of the following: 3 (a) The amount or percentage of local or federal matching 4 funds, if any, and any funding obligations shared between 5 public and private entities. 6 (b) The percentage of funding provided directly from the 7 applicant, including whether the applicant requested from the 8 office an amount less than the maximum amount the office could 9 award pursuant to subsection 5 and, if so, the percentage of 10 the project cost that the applicant is requesting. 11 (3) The relative download and upload speeds of proposed 12 projects for all applicants. 13 (4) The specific product attributes resulting from the 14 proposed project, including technologies that provide higher 15 qualities of service, such as service levels, latency, and 16 other service attributes as determined by the office. 17 (5) (4) The percentage of the homes, farms, schools, and 18 businesses in the targeted service area that will be provided 19 access to broadband service. 20 (6) The geographic diversity of the project areas of all the 21 applicants. 22 (7) The economic impact of the project to the area. 23 (8) (5) Other factors the office deems relevant. 24 b. In considering the factors listed in paragraph “a” 25 for awarding grants pursuant to this section , the office 26 shall afford the greatest weight to the factors described in 27 paragraph “a” , subparagraphs (1) through (3). 28 c. Except as otherwise provided in this section , the office 29 shall not evaluate applications based on the office’s knowledge 30 of the applicant except for information obtained by the office 31 during the application process or period for public comment. 32 5. The office shall not award a grant pursuant to this 33 section that exceeds thirty-five percent of the communications 34 service provider’s project cost. The total amount of the 35 -5- LSB 1939XL (3) 89 jda/rn 5/ 10
S.F. _____ H.F. _____ grants the office awards from the empower rural Iowa broadband 1 grant fund pursuant to this section shall be as follows not 2 exceed any of the following amounts : 3 a. For Seventy-five percent of a communications service 4 provider’s project costs for projects that will result in the 5 installation of broadband infrastructure that will facilitate 6 broadband service providing a minimum download speed less than 7 one hundred megabits per second but greater than or equal to 8 the download speed specified in the definition of targeted 9 service area in section 8B.1 , and a minimum upload speed less 10 than twenty megabits per second but greater than or equal 11 to the upload speed specified in the definition of targeted 12 service area in section 8B.1 , the total amount of the grants 13 the office awards shall not exceed fifty percent of the moneys 14 in the fund at the beginning of the fiscal year. However, if 15 the amount requested for projects that facilitate broadband 16 service at the speeds described in paragraph “b” for the fiscal 17 year is less than the amount reserved for projects under 18 paragraph “b” , the office may award the difference to projects 19 under this paragraph for the same fiscal year in a targeted 20 service area within which no communications service provider 21 offers or facilitates broadband service that provides download 22 and upload speeds less than or equal to the tier 1 download and 23 upload speeds specified in the definition of targeted service 24 area in section 8B.1 . 25 b. For Fifty percent of a communications service provider’s 26 project costs for projects that will result in the installation 27 of broadband infrastructure that will facilitate broadband 28 service providing a minimum download speed of one hundred 29 megabits per second and a minimum upload speed of twenty 30 megabits per second, the total amount of the grants the office 31 awards shall not exceed fifty percent of the moneys in the fund 32 at the beginning of the fiscal year. However, if the amount 33 requested for projects that facilitate broadband service at 34 the speeds described in paragraph “a” for the fiscal year is 35 -6- LSB 1939XL (3) 89 jda/rn 6/ 10
S.F. _____ H.F. _____ less than the amount reserved for projects under paragraph 1 “a” , the office may award the difference to projects under 2 this paragraph for the same fiscal year in a targeted service 3 area within which no communications service provider offers or 4 facilitates broadband service that provides download and upload 5 speeds less than or equal to the tier 2 download and upload 6 speeds specified in the definition of targeted service area in 7 section 8B.1 . 8 c. Thirty-five percent of a communications service 9 provider’s project costs for projects that will result in the 10 installation of broadband infrastructure in a targeted service 11 area within which no communications service provider offers or 12 facilitates broadband service that provides download speeds 13 less than or equal to the tier 3 download speed specified in 14 the definition of targeted service area in section 8B.1. 15 6. The office shall provide public notice regarding the 16 application process and receipt of funding. 17 7. The office shall not award a grant pursuant to this 18 section on or after July 1, 2025. 19 8. 7. The office may adopt rules pursuant to chapter 17A 20 interpreting this chapter or necessary for administering this 21 chapter , including but not limited to rules relating to the 22 broadband grant program process, management, and measurements 23 as deemed necessary by the office. 24 9. 8. The office shall adopt rules establishing procedures 25 to allow aggrieved applicants an opportunity to challenge the 26 office’s award of grants under this section . 27 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate 28 importance, takes effect upon enactment. 29 Sec. 5. APPLICABILITY. This Act applies to applications 30 for grants submitted pursuant to section 8B.11 on or after the 31 effective date of this Act. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -7- LSB 1939XL (3) 89 jda/rn 7/ 10
S.F. _____ H.F. _____ This bill relates to broadband service, including 1 facilitating the availability of broadband service in unsecured 2 and underserved areas, and administration of the empower rural 3 Iowa broadband grant fund. 4 The bill modifies the definition of “facilitate” for 5 purposes of Code chapter 8B to mean a communications service 6 provider’s ability to provide broadband service at or above 7 the download and upload speeds specified in the definition 8 of a targeted service area to a home, farm, school, or 9 business within a commercially reasonable time and at a 10 commercially reasonable price upon request. The bill modifies 11 the definition of “targeted service area” to mean either of 12 the following: a United States census bureau census block 13 located in this state, including any crop operation located 14 within the census block, or other geographic unit the office 15 of the chief information officer sets by rule, within which no 16 communications service provider offers or facilitates broadband 17 service at or above the tier 1, tier 2, or tier 3 download and 18 upload speeds enumerated in the bill; or any geographic area, 19 as the office sets by rule, that is materially underserved by 20 broadband service such that tier 1, tier 2, and tier 3 download 21 and upload speeds are not meaningfully available. The bill 22 defines “tier 1” as a minimum download speed of less than 25 23 megabits per second and a minimum upload speed of less than 24 three megabits per second. The bill defines “tier 2” as a 25 minimum download speed of greater than or equal to 25 megabits 26 per second but less than 50 megabits per second and a minimum 27 upload speed of greater than or equal to three megabits per 28 second. The bill defines “tier 3” as a minimum download speed 29 of greater than or equal to 50 megabits per second but less 30 than 80 megabits per second. The bill modifies the definition 31 of “underserved area” to mean any portion of a targeted 32 service area within which no communications service provider 33 facilitates broadband service meeting the tier 1 speeds. 34 The bill provides that the determination of whether 35 -8- LSB 1939XL (3) 89 jda/rn 8/ 10
S.F. _____ H.F. _____ a communications service provider facilitates broadband 1 service meeting the tier 1, tier 2, or tier 3 download and 2 upload speeds shall be determined by reference to broadband 3 availability maps or data sources that are identified by the 4 office by rule. The bill requires the office to periodically 5 make renewed determinations as to whether a communications 6 service provider facilitates broadband service at or above 7 those download and upload speeds. The bill establishes that 8 the office is not required to make renewed determinations more 9 frequently than once in any calendar year. 10 The bill provides that grants from the empower rural Iowa 11 broadband grant fund shall only be made to communications 12 service providers that reduce or eliminate targeted service 13 areas by installing broadband infrastructure that facilitates 14 broadband service providing a minimum download speed of 100 15 megabits per second and a minimum upload speed of 100 megabits 16 per second in targeted service areas. The bill provides that 17 the office may use not more than 3 percent of the moneys in 18 the fund at the beginning of the fiscal year to pay the costs 19 associated with the administration of the grant program. 20 The bill strikes provisions relating to the application 21 review process for applications for grants under the fund. 22 Additionally, the bill strikes provisions relating to a review 23 committee for the review and recommendation of grant awards. 24 The bill also makes certain changes to what the office is to 25 consider when reviewing an application for a grant from the 26 fund. 27 The bill provides that the amount of the grants the 28 office awards from the fund shall not exceed 75 percent 29 of a communications service provider’s project costs for 30 projects that will result in the installation of broadband 31 infrastructure in a targeted service area within which no 32 communications service provider offers or facilitates broadband 33 service that provides download and upload speeds less than or 34 equal to the tier 1 download and upload speeds; 50 percent 35 -9- LSB 1939XL (3) 89 jda/rn 9/ 10
S.F. _____ H.F. _____ of a communications service provider’s project costs for 1 projects that will result in the installation of broadband 2 infrastructure in a targeted service area within which no 3 communications service provider offers or facilitates broadband 4 service that provides download and upload speeds less than 5 or equal to the tier 2 download and upload speeds; and 35 6 percent of a communications service provider’s project costs 7 for projects that will result in the installation of broadband 8 infrastructure in a targeted service area within which no 9 communications service provider offers or facilitates broadband 10 service that provides download speeds less than or equal to the 11 tier 3 download speed. 12 The bill strikes Code section 8B.11, subsection 7, which 13 prohibits the office from awarding a grant from the fund on or 14 after July 1, 2025. 15 The bill takes effect upon enactment and applies to 16 applications for grants submitted pursuant to Code section 17 8B.11 on or after the effective date of the bill. 18 -10- LSB 1939XL (3) 89 jda/rn 10/ 10
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