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 certain broadband infrastructure tax exemptions, and including effective date and retroactive applicability provisions

This bill relates to broadband service, including matters under the purview of the office of the chief information officer, the empower rural Iowa broadband grant fund, and certain broadband infrastructure tax exemptions. The bill amends the definitions of “facilitate”, “targeted service area”, and “underserved area” for purposes of Code chapter 8B.11(5), which is also amended under the bill, as described in more detail below. Currently, “targeted service area” is defined to mean a United States census bureau census block located in this state, including any crop operation located within the census block, within which no communications service provider offers or facilitates broadband service at or above the download and upload speeds identified by the federal communications commission pursuant to section 706 of the federal Telecommunications Act of 1996, as amended. To this definition, the bill adds as an alternative any geographic area, as determined by the office of the chief information officer by rule, that is materially underserved by broadband service such that the download and upload speeds identified by the federal communications commission pursuant to section 706 of the federal Telecommunications Act of 1996, as amended, of the broadband service in the geographic area are not meaningfully available. The bill grants to the office the power to determine what constitutes a geographic area being “materially underserved” and broadband service being “meaningfully available”. The bill modifies the definition of “underserved area” to remove language related to broadband service being offered in a targeted service area. As a result, an underserved area now means any portion of a targeted service area within which no communications service provider facilitates broadband service meeting the download and upload speeds specified in the definition of targeted service area. Currently, the office is to determine whether a communications service provider offers or facilitates broadband service at the proper download and upload speed by reference to broadband availability maps or data sources that are widely accepted for accuracy and available for public review and comment and that are identified by the office by rule. The bill changes this provision in several ways. First, the bill deletes reference to a communications service provider offering broadband service. Second, the bill removes the requirement that the maps or data sources be widely accepted for accuracy and available for public review and comment. Third, the bill requires that the office’s determinations exclude mobile wireless or satellite data, capabilities, and delivery mediums. The bill changes the name of the connecting Iowa farms, schools, and communities broadband grant fund to the empower rural Iowa broadband grant fund. The bill also modifies how moneys in the empower rural Iowa broadband grant fund may be used. The bill permits the office to use moneys in the fund for purposes of administering and operating the grant program. In addition, the bill establishes that moneys in the fund that have been awarded to a communications service provider but not paid shall not revert but shall remain available to the office for purposes of administering the award. This provision is retroactively applicable to July 1, 2015.11(3) allows the office, by rule, to increase the minimum download and upload speeds for grant eligibility under the fund. The bill deletes this provision, which prevents the office from increasing the minimum download and upload speeds for grant eligibility. The bill adds to the factors the office is to consider when determining whether to award grants from the fund.11(5). The office is currently prohibited from awarding a grant from the fund that exceeds percent of the communications service provider’s project cost. The bill amends this provision to allow for an award of up to percent of the communications service provider’s project cost for projects that will result in the installation of broadband infrastructure that will facilitate broadband service providing a minimum download speed of 100 megabits per second and a minimum upload speed of megabits per second. The bill allows for an award of up to percent of the communications service provider’s project cost for projects that will result in the installation of broadband infrastructure that will facilitate broadband service providing a minimum download speed less than 100 megabits per second but greater than or equal to the download speed specified in the definition of targeted service area, and a minimum upload speed less than megabits per second but greater than or equal to the upload speed specified in the definition of targeted service area.1(40)(b) to remove reference to the broadband service being offered, inserting that the broadband service need only be facilitated.10.10. The bill makes conforming changes related to the change in name of the fund from the connecting Iowa farms, schools, and communities broadband grant fund to the empower rural Iowa broadband grant fund. The bill takes effect upon enactment.