Bill Text: MI HB5033 | 2021-2022 | 101st Legislature | Introduced

Michigan House Bill 5033 (Prior Session Legislation)

Introduced

Bill Title: State financing and management: funds; eligibility for connecting Michigan communities grant program; expand. Creates appropriation act.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Introduced - Dead) 2021-06-17 - Bill Electronically Reproduced 06/16/2021 [HB5033 Detail]

Download: Michigan-2021-HB5033-Introduced.html

HOUSE BILL NO. 5033

June 16, 2021, Introduced by Reps. Haadsma, Coleman, Sabo, Aiyash, Sowerby, Scott, Puri, Weiss, Anthony, Morse, Brabec, Young, Hood, Cavanagh and Whitsett and referred to the Committee on Communications and Technology.

A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2021; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

the people of the state of michigan enact:

part 1

line-item appropriations

Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year

ending September 30, 2021, from the following funds:

APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	385,695,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	385,695,000
Federal revenues:
Total federal revenues		400,000,000
Special revenue funds:
Total local revenues		0
Total private revenues		0
Total other state restricted revenues		0
State general fund/general purpose	$	(14,305,000)
Sec. 102. DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	400,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	400,000,000
Federal revenues:
Total federal revenues		400,000,000
Special revenue funds:
Total local revenues		0
Total private revenues		0
Total other state restricted revenues		0

State general fund/general purpose	$	0
(2) ONE-TIME APPROPRIATIONS
Statewide broadband	$	400,000,000
GROSS APPROPRIATION	$	400,000,000
Appropriated from:
Federal revenues:
Coronavirus state fiscal recovery fund		400,000,000
State general fund/general purpose	$	0
Sec. 103. DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	(14,305,000)
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	(14,305,000)
Federal revenues:
Total federal revenues		0
Special revenue funds:
Total local revenues		0
Total private revenues		0
Total other state restricted revenues		0
State general fund/general purpose	$	(14,305,000)
(2) ONE-TIME APPROPRIATIONS
Statewide broadband	$	(14,305,000)
GROSS APPROPRIATION	$	(14,305,000)
Appropriated from:
State general fund/general purpose	$	(14,305,000)

part 2

provisions concerning appropriations

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2021 is $0.00 and total state spending from state sources to be paid to local units of government is $0.00.

Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1, are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

DEPARTMENT OF labor and economic opportunity

Sec. 301. (1) As used in this section:

(a) "Applicant" means an internet service provider, governmental entity, educational institution, federally recognized tribe, or public-private partnership that submits an application for a grant after collaborating with the community in the unserved area.

(b) "Broadband service" means a retail service, not including a satellite service, capable of delivering high-speed internet access at speeds of at least 100 megabits per second downstream and 10 megabits per second upstream. Broadband service does not include mobile phone service.

(i) Currently provides broadband service of at least 100

megabits per second download and 10 megabits per second upload in the specific geographic area of the proposed project of the applicant.

(ii) Is able to provide broadband service of at least 100 megabits per second download and 10 megabits per second upload in a specific geographic area of the proposed project of the applicant to a customer that requests that service not later than 30 days after the customer requests installation of that service and without an extraordinary commitment of resources or construction charges or fees exceeding an ordinary service activation fee. The 30-day time period is extended to 60 days if permits are needed before the broadband service is activated.

(d) "Internet service provider" means any of the following:

(i) An entity holding a license under the Michigan telecommunications act, 1991 PA 179, MCL 484.2101 to 484.2603.

(ii) An entity holding a franchise under the uniform video services local franchise act, 2006 PA 480, MCL 484.3301 to 484.3315.

(iii) An entity currently providing broadband service in this state.

(iv) A political subdivision of this state.

(e) "MDLEO" means the department of labor and economic opportunity.

(f) "Person" includes an individual, community organization, cooperative association, corporation, federally recognized Indian tribe, limited liability company, nonprofit corporation, partnership, or political subdivision of this state.

(g) "Trade secrets" means trade secret as that term is defined in section 2 of the uniform trade secrets act, 1998 PA 448, MCL

445.1902.

(h) "Unserved area" means any of the following:

(i) A census block lacking access to broadband service from at least 3 internet service providers.

(ii) An area lacking access to broadband service from at least 3 internet service providers according to the most accurate and granular data on the broadband map created by the Federal Communications Commission.

(iii) An area delineated by the MDLEO by the process established in subsection (16).

(iv) An area without broadband service at a speed of at least 100 Mbps downstream and 10 Mbps upstream.

(2) From the funds appropriated in part 1 for statewide broadband, the MDLEO shall maintain a statewide broadband grant program called the connecting Michigan communities broadband grant program within 60 days of enactment. Money for the program must be provided by appropriation of state or federal funding as provided by law and managed by the MDLEO.

(3) The MDLEO shall only use money from the grant program to award grants to applicants for projects that exclusively extend broadband service into unserved areas in this state and for the MDLEO's costs to administer the program.

(4) The MDLEO may award grant money to a governmental entity or educational institution or an affiliate or a public/private partnership, to own, purchase, construct, operate, or maintain a communications network, or to provide service to any residential or commercial premises.

(5) The MDLEO shall not, as a condition of an award of grant money, impose an open network architecture requirement, rate

regulation, or other term or condition of service that differs from the applicant's terms or conditions of service in its other service areas.

(6) The MDLEO shall not award more than $15,000,000.00 to any 1 project or to any 1 applicant. The MDLEO shall award initial grant money within 270 days after the money is made available under this program.

(7) An award of funds must be issued by a competitive grant process. The grant process must be technology neutral, and result in awards to applicants proposing projects based on objective and efficient procedures. The criteria for determining the award of funds must include the following:

(a) The applicant's experience and financial wherewithal.

(b) The readiness to build, operate, and maintain the project.

(d) The scalability of the network.

(e) The applicant's ability to leverage broadband for community and economic development.

(f) The applicant's ability to provide discounted broadband service throughout the unserved area to low-income households.

(8) Priority must be given to projects that demonstrate collaboration to achieve community investment and economic development goals of the area impacted, and that are able to demonstrate that they have the managerial, financial, and technical ability to build, operate, and manage a broadband network.

(9) Within 30 days after receiving an appropriation or federal funding to implement this section, the MDLEO shall establish and publish on the MDLEO's website the criteria for competitively scoring applications. Within 60 days after the MDLEO publishes the

criteria, applicants shall submit their applications for funding of their proposed project.

(10) An applicant for a grant under this section shall provide the following information on the application:

(a) The location of the project in the unserved area described by either the specific street addresses to be served or a shapefile as that term is defined in 47 USC 641.

(b) The kind and amount of broadband infrastructure to be purchased for the project.

(d) The number of households that will have access to broadband service as a result of the project, or whose internet access service will be upgraded to broadband service as a result of the project.

(e) The significant community institutions that will benefit from the proposed project.

(f) Evidence of community support for the project with a narrative on the impact that the investment will have on community and economic development efforts in the area.

(g) The total cost of the project and a detailed budget and schedule for the project.

(h) All sources of funding or in-kind contributions for the project in addition to any grant award.

(i) The applicant's experience and financial wherewithal.

(j) The program outline of the digital literacy program that will be provided in the area to be served by the broadband services.

(11) The applicant's trade secrets, financial information, and

proprietary information submitted under this section as part of an application are exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(12) After scoring and considering all grant applications, the MDLEO shall make grant award recommendations. The MDLEO shall give priority in making grant award recommendations to applications that demonstrate 1 or more of the following:

(a) Collaboration to achieve community investment and economic development goals of an impacted area.

(b) The applicant has the managerial, financial, and technical ability to build, operate, and manage a broadband network.

(d) The project will serve a larger unserved area or a greater number of locations within an unserved area than other proposed applications.

(e) The ability of the applicant to commit to providing at least 50% of the cost to deploy the project set forth in the application.

(f) The capability to deliver future-proof speeds up to and exceeding 1 gigabit per second downstream and upstream with no limitations on data utilization.

(13) Within 30 days after the award recommendations have been made, the MDLEO shall publish on its website the grant applications, redacted according to section 14 of the freedom of information act, 1976 PA 442, MCL 15.244, the proposed geographic broadband service area, and the proposed broadband service speeds for each application that receives an award recommendation.

(14) Before granting an award to an applicant, the MDLEO shall

establish a period of at least 60 days after the date the award recommendations are published on the MDLEO website, during which time the MDLEO shall accept comments or objections concerning each application. The MDLEO shall consider all comments or objections received, and investigate them as needed, in deciding whether an applicant is eligible for a grant. If an objection submitted by a provider contains information that requires an investigation and the objection is found to be inaccurate, the provider shall reimburse the MDLEO for the cost of verifying the information.

(15) The MDLEO shall not award a grant to an applicant if verifiable information is made available that shows any of the following:

(a) The proposed project includes an area where at least 3 providers have deployed broadband service.

(b) The MDLEO receives a sworn statement from an officer of an internet service provider that the proposed project includes an area where construction of a network to provide broadband service is underway, and the construction is scheduled to be completed within 1 year after the date of the application.

(c) The MDLEO receives a sworn statement from an officer of an internet service provider that the proposed project includes either of the following:

(i) A specific geographical area where an internet service provider has been selected to receive, provisionally or otherwise, funding by the Federal Communications Commission or the United States Department of Agriculture specifically for the expansion of broadband services. This subparagraph does not apply to an area once either of the following has occurred:

(A) The internet service provider does not complete the

requirements for obtaining the funding described in this subparagraph.

(B) The time period for the internet service provider to receive the funding described in this subparagraph has expired.

(ii) An area where the construction of a network to provide broadband service is to be completed no later than 2 years after the date of an application.

(16) As part of an application under this section, an applicant may request that the MDLEO specifically delineate an area within a census block as being an unserved area. To tentatively establish an unserved area within a census block, an applicant must attest to both of the following:

(a) The delineated area within the census block is unserved and does not have access to broadband service.

(b) The delineated area is not within a census block that has been selected to receive, provisionally or otherwise, funding to support the expansion of broadband networks from the Federal Communications Commission or the United States Department of Agriculture.

(17) If a delineated area within a census block is tentatively determined by the MDLEO to be an unserved area, the recommended grant award for the application is still subject to a challenge by internet service providers under subsections (14) and (15).

(18) At the time a grant is awarded to an applicant, the MDLEO shall immediately provide notice on its website of each application receiving a grant, including the name of the entity, the amount of money being received, the broadband speed, and the unserved area for which the applicant is receiving the grant.

(19) The MDLEO shall require an applicant awarded a grant to

submit a semiannual report from the time the applicant receives the grant to 3 years after completion of the project. The semiannual reports must be made available on the MDLEO's website with any proprietary information redacted. The reports must be in a format specified by the MDLEO and give an accounting by the applicant of the use of the money received and the progress toward fulfilling the objectives for which the money was granted, including all of the following:

(a) The number and location of residences and businesses that will have access to the broadband service.

(b) The speed of broadband service.

(d) The broadband service adoption rates.

(20) A person that files a false statement under this section is ineligible to receive a grant under this section the next time grants are issued after filing that false statement.

(21) If an applicant is found to be noncompliant with the grant commitments after 3 years, the applicant will forfeit grant funding in an amount proportional to the number of residences and businesses in the award area that remain unserved.

REPEALER

Sec. 401. Section 841 of article 5 of 2020 PA 166 is repealed.