Senate Study Bill 1146 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BILL) A BILL FOR An Act relating to and providing for the facilitation of 1 broadband access in targeted areas of the state, including 2 property tax incentives for broadband infrastructure 3 installation, a broadband grant program and fund, making 4 appropriations, and including applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1592XL (12) 86 ad/sc

S.F. _____ H.F. _____ DIVISION I 1 LEGISLATIVE INTENT 2 Section 1. SHORT TITLE. This Act shall be known and may be 3 cited as the “Connecting Iowa Farms, Schools, and Communities 4 Act”. 5 Sec. 2. LEGISLATIVE INTENT. The general assembly finds 6 and declares that increasing the extent and availability of 7 broadband infrastructure throughout the state facilitates the 8 provision of internet access to citizens, farms, businesses, 9 and communities at speeds that promote economic development, 10 employment, enhanced access to goods and services, increased 11 educational and training opportunities, faster access to 12 government services and health care, and improved overall 13 information and community access. 14 DIVISION II 15 STATEWIDE BROADBAND COORDINATION 16 Sec. 3. Section 8B.1, Code 2015, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 01. “Broadband” means a high-speed, 19 high-capacity electronic transmission medium that can carry 20 data signals from multiple independent network sources by 21 establishing different bandwidth channels and that is commonly 22 used to deliver internet services to the public. 23 NEW SUBSECTION . 001. “Broadband infrastructure” means 24 the physical infrastructure used for the transmission of data 25 via broadband, including but not limited to any equipment, 26 systems, switches, routers, wire, cable, satellite, conduits, 27 servers, software, technology, base transceiver station 28 sites, or other means of transmission or communication. 29 “Broadband infrastructure” does not include land, buildings, 30 structures, improvements, or equipment not directly used in the 31 transmission of data via broadband. 32 NEW SUBSECTION . 0001. “Communications service provider” 33 means a service provider that provides broadband service. 34 NEW SUBSECTION . 00001. “Crop operation” means the same as 35 -1- LSB 1592XL (12) 86 ad/sc 1/ 18

S.F. _____ H.F. _____ defined in section 717A.1. 1 NEW SUBSECTION . 7A. “Targeted service area” means a United 2 States census bureau census block located in this state, 3 including any crop operation located within the census block, 4 within which no communications service provider offers or 5 facilitates broadband service at or above twenty-five megabits 6 per second of download speed and three megabits per second of 7 upload speed. 8 Sec. 4. Section 8B.1, subsection 1, Code 2015, is amended 9 to read as follows: 10 1. “Information technology” means computing and electronics 11 applications used to process and distribute information in 12 digital and other forms and includes information technology 13 devices, information technology services, infrastructure 14 services, broadband and broadband infrastructure, and 15 value-added services. 16 Sec. 5. Section 8B.3, subsection 1, Code 2015, is amended 17 to read as follows: 18 1. The office is created for the purpose of leading, 19 directing, managing, coordinating, and providing accountability 20 for the information technology resources of state government 21 and for coordinating statewide broadband availability and 22 access . 23 Sec. 6. Section 8B.4, Code 2015, is amended by adding the 24 following new subsections: 25 NEW SUBSECTION . 14A. Streamline, consolidate, and 26 coordinate the access to and availability of broadband and 27 broadband infrastructure throughout the state, including but 28 not limited to the facilitation of public-private partnerships, 29 ensuring that all state agencies’ broadband and broadband 30 infrastructure policies and procedures are aligned, resolving 31 issues which arise with regard to implementation efforts, 32 and collecting data and developing metrics or standards 33 against which the data may be measured and evaluated regarding 34 broadband infrastructure installation and deployment. 35 -2- LSB 1592XL (12) 86 ad/sc 2/ 18

S.F. _____ H.F. _____ NEW SUBSECTION . 14B. Establish and administer the 1 broadband grant program pursuant to section 8B.11. 2 NEW SUBSECTION . 14C. Coordinate the fiberoptic network 3 conduit installation program established in section 8B.25. 4 Sec. 7. Section 8B.9, Code 2015, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 5. An annual report regarding the status 7 of broadband expansion and coordination and the connecting 8 Iowa farms, schools, and communities broadband grant program 9 established under section 8B.11. 10 Sec. 8. NEW SECTION . 8B.10 Targeted service areas —— 11 determination —— criteria. 12 1. The determination of whether a communications service 13 provider offers or facilitates broadband service meeting the 14 download or upload speeds specified in the definition of 15 targeted service area in section 8B.1 shall be determined or 16 ascertained by reference to broadband availability maps or data 17 sources that are widely accepted for accuracy and available for 18 public review and comment and that are identified by the office 19 by rule. 20 2. The office shall establish procedures to allow 21 challenges to claims that an area meets the definition of a 22 targeted service area. 23 Sec. 9. NEW SECTION . 8B.11 Connecting Iowa farms, schools, 24 and communities —— broadband grants —— fund. 25 1. The office shall establish and administer a broadband 26 grant program to award grants to communication service 27 providers that reduce or eliminate targeted service areas. 28 2. a. A connecting Iowa farms, schools, and communities 29 broadband grant fund is established in the state treasury under 30 the authority of the office. The fund shall consist of moneys 31 appropriated to the fund or appropriated to the office for 32 purposes of the grant program, or other funds available to 33 the office for purposes of the grant program. Moneys in the 34 fund are appropriated to the office to be used for the grant 35 -3- LSB 1592XL (12) 86 ad/sc 3/ 18

S.F. _____ H.F. _____ program. 1 b. Notwithstanding section 8.33, moneys in the fund 2 that remain unencumbered or unobligated at the close of the 3 fiscal year shall not revert but shall remain available for 4 expenditure for the purposes designated until the close of the 5 succeeding fiscal year. 6 3. The office shall use moneys in the fund to provide grants 7 to communication service providers for purposes of reducing or 8 eliminating targeted service areas. 9 4. Communication service providers may apply to the office 10 for a grant pursuant to this section. The office shall award 11 grants on a competitive basis using criteria established by the 12 office by rule. 13 5. The office shall adopt rules pursuant to chapter 17A 14 including but not limited to the broadband grant program 15 process, management, and measurements as deemed necessary by 16 the office. 17 Sec. 10. NEW SECTION . 8B.25 Fiberoptic network conduit 18 installation program. 19 1. For the purposes of this section, “fiberoptic network 20 conduit” means a pipe or duct used to enclose fiberoptic cable 21 facilities buried alongside a roadway or surface mounted on 22 a bridge, overpass, or other facility where placement below 23 ground is impossible or impractical. 24 2. The office shall lead and coordinate a program to 25 provide for the installation of fiberoptic network conduit 26 where such conduit does not exist. The chief information 27 officer shall consult and coordinate with the department of 28 administrative services, the department of transportation, the 29 Iowa communications network, and other agencies and entities 30 as determined appropriate to ensure that the opportunity is 31 provided to lay or install fiberoptic network conduit wherever 32 a state-funded construction project involves trenching, boring, 33 a bridge, a roadway, or opening of the ground, or alongside any 34 state-owned infrastructure. 35 -4- LSB 1592XL (12) 86 ad/sc 4/ 18

S.F. _____ H.F. _____ 3. Contingent upon the provision of funding for such 1 purposes by the general assembly, the office may contract with 2 a third party to manage, lease, install, or otherwise provide 3 fiberoptic network conduit access for projects described in 4 this section. This section shall not prohibit the office from 5 purchasing or installing fiberoptic cable within any fiberoptic 6 network conduit installed pursuant to the program. 7 Sec. 11. NEW SECTION . 8B.26 Broadband permitting process 8 —— expeditious response. 9 Notwithstanding any other provision to the contrary, a 10 political subdivision vested with permitting authority shall 11 approve, approve with modification, or disapprove nonwireless, 12 broadband-related permits within sixty business days following 13 the submission of a permit application and fee. In the event 14 that no action is taken during the sixty-day period, the 15 application shall be deemed approved. 16 Sec. 12. Section 8D.3, subsection 2, paragraph a, Code 2015, 17 is amended to read as follows: 18 a. The commission is composed of five voting members 19 appointed by the governor and subject to confirmation by the 20 senate. Members Voting members of the commission shall not 21 serve in any manner or be employed by an authorized user of the 22 network or by an entity seeking to do or doing business with 23 the network. 24 (1) The governor shall appoint a voting member as the 25 chairperson of the commission from the five voting members 26 appointed by the governor , subject to confirmation by the 27 senate. 28 (2) Members Voting members of the commission shall serve 29 six-year staggered terms as designated by the governor and 30 appointments to the commission are subject to the requirements 31 of sections 69.16 , 69.16A , and 69.19 . Vacancies shall be 32 filled by the governor for the duration of the unexpired term. 33 (3) The salary of the voting members of the commission shall 34 be twelve thousand dollars per year, except that the salary 35 -5- LSB 1592XL (12) 86 ad/sc 5/ 18

S.F. _____ H.F. _____ of the chairperson shall be seventeen thousand dollars per 1 year. Members Voting members of the commission shall also be 2 reimbursed for all actual and necessary expenses incurred in 3 the performance of duties as members. The benefits and salary 4 paid to the voting members of the commission shall be adjusted 5 annually equal to the average of the annual pay adjustments, 6 expense reimbursements, and related benefits provided under 7 collective bargaining agreements negotiated pursuant to chapter 8 20 . 9 Sec. 13. Section 8D.3, subsection 2, paragraph b, Code 2015, 10 is amended to read as follows: 11 b. In addition to the members appointed by the governor, 12 the The auditor of state or the auditor’s designee and the 13 chief information officer appointed pursuant to section 8B.2 14 or the chief information officer’s designee shall serve as a 15 nonvoting, ex officio member members of the commission. 16 Sec. 14. Section 8D.4, Code 2015, is amended to read as 17 follows: 18 8D.4 Executive director appointed. 19 The commission , in consultation with the director of 20 the department of administrative services and the chief 21 information officer, shall appoint an executive director of 22 the commission, subject to confirmation by the senate. Such 23 individual shall not serve as a member of the commission. 24 The executive director shall serve at the pleasure of the 25 commission. The executive director shall be selected primarily 26 for administrative ability and knowledge in the field, without 27 regard to political affiliation. The governor shall establish 28 the salary of the executive director within range nine as 29 established by the general assembly. The salary and support of 30 the executive director shall be paid from funds deposited in 31 the Iowa communications network fund. 32 Sec. 15. Section 80.28, subsection 2, Code 2015, is amended 33 to read as follows: 34 2. The board shall consist of fifteen seventeen voting 35 -6- LSB 1592XL (12) 86 ad/sc 6/ 18

S.F. _____ H.F. _____ members, as follows: 1 a. The following members representing state agencies: 2 (1) One member representing the department of public 3 safety. 4 (2) One member representing the state department of 5 transportation. 6 (3) One member representing the department of homeland 7 security and emergency management. 8 (4) One member representing the department of corrections. 9 (5) One member representing the department of natural 10 resources. 11 (6) One member representing the Iowa department of public 12 health. 13 (7) One member representing the office of the chief 14 information officer created in section 8B.2. 15 b. The governor shall solicit and consider recommendations 16 from professional or volunteer organizations in appointing the 17 following members: 18 (1) Two members who are representatives from municipal 19 police departments. 20 (2) Two members who are representatives of sheriff’s 21 offices. 22 (3) Two members who are representatives from fire 23 departments. One of the members shall be a volunteer fire 24 fighter and the other member shall be a paid fire fighter. 25 (4) Two members who are law communication center managers 26 employed by state or local government agencies. 27 (05) One member who is an emergency medical care provider 28 as defined in section 147A.1. 29 (5) One at-large member. 30 Sec. 16. BOND REPAYMENT FUND BROADBAND GRANT 31 TRANSFER. Notwithstanding section 8.57F, subsection 1, 32 paragraphs a, b, and c, for the fiscal year beginning July 1, 33 2015, and ending June 30, 2016, the department of management 34 shall transfer three million dollars from the state bond 35 -7- LSB 1592XL (12) 86 ad/sc 7/ 18

S.F. _____ H.F. _____ repayment fund created in section 8.57F to the office of chief 1 information officer for deposit in the connecting Iowa farms, 2 schools, and communities broadband grant fund created under 3 section 8B.11 to be used for the purposes of the broadband 4 grant program. 5 Sec. 17. Rebuild Iowa infrastructure fund broadband grant 6 transfer. For the fiscal year beginning July 1, 2015, and 7 ending June 30, 2016, through the fiscal year beginning July 1, 8 2016, and ending June 30, 2017, the department of management 9 shall transfer two million dollars each year from the rebuild 10 Iowa infrastructure fund created in section 8.57 to the office 11 of the chief information officer for deposit in the connecting 12 Iowa farms, schools, and communities broadband grant fund 13 created under section 8B.11 to be used for the purposes of the 14 broadband grant program. 15 Sec. 18. EMERGENCY RULES. The office of the chief 16 information officer may adopt emergency rules under section 17 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph 18 “b”, to implement the provisions of this division of this Act 19 and the rules shall be effective immediately upon filing unless 20 a later date is specified in the rules. Any rules adopted 21 in accordance with this section shall also be published as a 22 notice of intended action as provided in section 17A.4. 23 DIVISION III 24 PROPERTY TAX INCENTIVES AND ASSESSMENT 25 Sec. 19. Section 421.1A, subsection 3, Code 2015, is amended 26 to read as follows: 27 3. At the election of a property owner or aggrieved taxpayer 28 or an appellant described in section 441.42 , the property 29 assessment appeal board shall review any final decision, 30 finding, ruling, determination, or order of a local board of 31 review relating to protests of an assessment, valuation, or 32 application of an equalization order , or any final decision 33 of the county board of supervisors relating to denial of an 34 application for a property tax exemption pursuant to section 35 -8- LSB 1592XL (12) 86 ad/sc 8/ 18

S.F. _____ H.F. _____ 427.1, subsection 40 . 1 Sec. 20. Section 421.1A, subsection 4, Code 2015, is amended 2 by adding the following new paragraph: 3 NEW PARAGRAPH . 0b. Affirm or reverse a final decision 4 of a county board of supervisors relating to denial of an 5 application for a property tax exemption under section 427.1, 6 subsection 40. 7 Sec. 21. Section 427.1, Code 2015, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 40. Broadband infrastructure. 10 a. The owner of broadband infrastructure shall be entitled 11 to an exemption from taxation to the extent provided in this 12 subsection. For the purposes of this subsection, “broadband 13 infrastructure” and “targeted service area” mean the same as 14 defined in section 8B.1. 15 b. The exemption shall apply to the installation of 16 broadband infrastructure commenced and completed on or 17 after July 1, 2014, in a targeted service area, and used to 18 deliver internet services to the public. A person claiming 19 an exemption under this subsection shall certify to the local 20 assessor prior to commencement of the installation that the 21 broadband installation will take place within a targeted 22 service area. 23 c. The tax exemption shall be a one hundred percent 24 exemption from taxation for a period of three years in an 25 amount equal to the actual value added by installation of the 26 broadband infrastructure. 27 d. For companies assessed by the department of revenue 28 pursuant to chapter 433, the exemption shall be limited to 29 an amount equal to the actual value added by installation of 30 the broadband infrastructure as of the assessment date as 31 determined by the department and the exemption shall be applied 32 prior to any other exemption applicable to the unit value, as 33 determined under that chapter. 34 e. (1) An application for an exemption shall be filed by 35 -9- LSB 1592XL (12) 86 ad/sc 9/ 18

S.F. _____ H.F. _____ the owner of the property with the county board of supervisors 1 of each county in which the property is located by February 2 1 of the year in which the broadband infrastructure is first 3 assessed for taxation, or the following two assessment years, 4 and in each case the exemption is allowed for three years. 5 (2) In lieu of subparagraph (1), and notwithstanding any 6 provision in this subsection to the contrary, an owner may at 7 any time before completion of the project submit a proposal to 8 the board of supervisors requesting that the board allow the 9 owner to file an application for exemption by February 1 of 10 any other assessment year following completion of the project, 11 which year shall be selected by the board. If the board, by 12 resolution, approves the proposal, the exemption is allowed for 13 three years. 14 f. (1) The application shall be made on forms prescribed by 15 the director of revenue. The application shall contain but not 16 be limited to the following information: 17 (a) The nature of the broadband infrastructure 18 installation. 19 (b) The actual cost of installing the broadband 20 infrastructure under the project, if available. The 21 application shall contain supporting documents demonstrating 22 the actual cost. 23 (c) Certification from the office of the chief information 24 officer pursuant to section 8B.10 that the installation is 25 being performed or was completed in a targeted service area 26 and certification of the date of commencement and actual or 27 estimated date of completion. 28 (d) A copy of any nonwireless broadband-related permit 29 issued by a political subdivision. 30 (e) If applying pursuant to paragraph “e” , subparagraph (2), 31 the actual cost already incurred for installation of broadband 32 infrastructure, if any, the estimated costs for project 33 completion, and the estimated date of project completion. The 34 application shall contain supporting documents demonstrating 35 -10- LSB 1592XL (12) 86 ad/sc 10/ 18

S.F. _____ H.F. _____ the actual cost. 1 (2) The board of supervisors shall forward all approved 2 applications and any necessary information regarding the 3 applications to the appropriate local assessor or to the 4 department of revenue, as applicable, by March 1 annually. 5 After the tax exemption is granted, the local assessor shall 6 continue to grant the tax exemption for three years, and 7 applications for exemption for succeeding years shall not be 8 required. 9 (3) An applicant for a property tax exemption under this 10 subsection may appeal the decision of the board of supervisors 11 regarding denial of the application to the property assessment 12 appeal board. 13 g. (1) If a company whose property in the county is not 14 assessed by the department of revenue is approved to receive a 15 property tax exemption pursuant to this subsection, the actual 16 value added by installation of the broadband infrastructure 17 shall be determined by the local assessor who shall certify the 18 amount of exemption determined to the county auditor at the 19 time of transmitting the assessment rolls. 20 (2) Notwithstanding any other provision of law to the 21 contrary, if a company in which all or a portion of the 22 company’s property in the county is assessed by the department 23 pursuant to chapter 433 and the company’s property in the 24 county is approved to receive a property tax exemption 25 pursuant to this subsection, the department shall assess 26 all the company’s property in the county used for operating 27 telegraph and telephone lines, broadband, or cable systems for 28 each assessment year the company receives the exemption, for 29 purposes of determining the actual value added by installation 30 of the broadband infrastructure. 31 (3) (a) If assessing property pursuant to subparagraph (2), 32 the department shall certify the assessment value and exemption 33 amounts for all property used for the operation of providing 34 cable and broadband services and generally not assessed by 35 -11- LSB 1592XL (12) 86 ad/sc 11/ 18

S.F. _____ H.F. _____ the department to the local assessor for inclusion on the 1 assessment rolls as provided in section 433.8, subsection 2. 2 (b) A company whose property is assessed by the department 3 pursuant to subparagraph (2) shall follow the appeal procedures 4 in chapter 429 for appealing any part of the assessment on 5 all the company’s property, including the company’s property 6 that would have been valued by the local assessor but for 7 subparagraph (2). For appeal proceedings for assessed values 8 submitted pursuant to subparagraph division (a), the department 9 shall notify the taxpayer of the right to appeal pursuant to 10 chapter 429. 11 h. The director of revenue may adopt rules pursuant to 12 chapter 17A for the interpretation and proper administration of 13 the exemption provided in this subsection. 14 Sec. 22. Section 433.8, Code 2015, is amended to read as 15 follows: 16 433.8 Assessment in each county —— how certified. 17 1. The director of revenue shall, for the purpose of 18 determining what amount shall be assessed to each company 19 in each county of the state into which the line of the said 20 company extends, certify to the several county auditors of the 21 respective counties into, over, or through which said line 22 extends the number of miles of line in the county for that 23 company, the actual value per mile of line for that company, 24 and the exemption value per mile of line for that company for 25 exemptions received pursuant to section 427.1, subsection 40, 26 section 433.4, or any other exemptions . In no case, however, 27 shall the taxable value of the property be reduced below zero. 28 2. If assessing all of the property of a company pursuant to 29 section 427.1, subsection 40, paragraph “g” , subparagraph (2), 30 the director shall also certify such amounts to the assessor 31 for inclusion on the assessment rolls. 32 Sec. 23. IMPLEMENTATION. Section 25B.7 shall not apply to 33 this division of this Act. 34 Sec. 24. IMPLEMENTATION. Notwithstanding section 427.1, 35 -12- LSB 1592XL (12) 86 ad/sc 12/ 18

S.F. _____ H.F. _____ subsection 40, paragraph “b”, as enacted in this division 1 of this Act, owners of broadband infrastructure seeking an 2 exemption for the installation of broadband infrastructure 3 commenced between July 1, 2014, and the effective date of this 4 division of this Act, shall certify to the local assessor that 5 the broadband infrastructure installation took place within 6 a targeted service area prior to applying for an exemption 7 pursuant to this division of this Act. 8 Sec. 25. APPLICABILITY. 9 1. This division of this Act applies to assessment years 10 beginning on or after January 1, 2016. 11 2. Notwithstanding section 427.1, subsection 40, paragraph 12 “e”, subparagraph (1), as enacted in this division of this 13 Act, in the case of projects commenced and completed between 14 July 1, 2014, and December 31, 2014, an owner seeking an 15 exemption shall first file an application for an exemption with 16 the county board of supervisors of each county in which the 17 property is located by February 1, 2016, or the following two 18 assessment years, and in each case the exemption is allowed for 19 three years. 20 DIVISION IV 21 INFORMATION TECHNOLOGY INFRASTRUCTURE FOR EDUCATION 22 Sec. 26. Section 423F.3, subsection 6, Code 2015, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . 0c. Additionally, “school infrastructure” 25 includes the acquisition or installation of information 26 technology infrastructure. For purposes of this paragraph, 27 “information technology infrastructure” means the basic, 28 underlying physical framework or system necessary to deliver 29 technology connectivity to a school district and to network 30 school buildings within a school district. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to and provides for the facilitation 35 -13- LSB 1592XL (12) 86 ad/sc 13/ 18

S.F. _____ H.F. _____ of broadband access in targeted service areas of the state. 1 The bill is titled the “Connect Iowa Farms, Schools, and 2 Communities Act”. 3 DIVISION I —— LEGISLATIVE INTENT. The division provides 4 that the general assembly finds and declares that increasing 5 the extent and availability of broadband infrastructure 6 throughout the state facilitates the provision of internet 7 access to citizens, businesses, farms, and communities at 8 speeds that promote economic development, employment, enhanced 9 access to goods and services, increased educational and 10 training opportunities, faster access to government services 11 and health care, and improved overall information and community 12 access for citizens. 13 DIVISION II —— STATEWIDE BROADBAND COORDINATION. The 14 division modifies provisions in Code chapter 8B, relating to 15 the office of the chief information officer. The division adds 16 several definitions to the Code chapter for use in the Code 17 chapter and in other related provisions. The division defines 18 “broadband” to mean a high-speed, high-capacity electronic 19 transmission medium that can carry data signals from multiple 20 independent network sources by establishing different bandwidth 21 channels and that is commonly used to deliver internet services 22 to the public. The division defines “broadband infrastructure” 23 to mean the physical infrastructure used for the transmission 24 of data via broadband, including but not limited to any 25 equipment, systems, switches, routers, wire, cable, satellite, 26 conduits, servers, software, technology, base transceiver 27 station sites, or other means of transmission or communication 28 via broadband. The division defines “communications service 29 provider” to mean a service provider that provides broadband 30 service. The division defines “targeted service area” to 31 mean a United States census bureau census block located in 32 Iowa, including any crop operation located within the census 33 block, within which no communications service provider offers 34 or facilitates broadband service at or above 25 megabits per 35 -14- LSB 1592XL (12) 86 ad/sc 14/ 18

S.F. _____ H.F. _____ second of download speed and 3 megabits per second of upload 1 speed. The division defines “crop operation” by referencing 2 a definition contained in Code section 717A.1 as meaning 3 a commercial enterprise where a crop is maintained on the 4 property of the commercial enterprise. Additionally, the 5 division adds broadband and broadband infrastructure to an 6 existing definition of “information technology”. 7 The division adds to the powers and duties of the chief 8 information officer streamlining, consolidating, and 9 coordinating access to and availability of broadband and 10 broadband infrastructure throughout Iowa. 11 The division provides that the determination of whether 12 a provider’s download and upload speeds are being met for 13 purposes of the definition of “targeted service area” shall be 14 by reference to broadband availability maps or data sources 15 identified by the office by rule. The division directs the 16 office to establish procedures to allow challenges to claims 17 that the threshold download or upload speeds are being met. 18 The division establishes a connecting Iowa farms, schools, 19 and communities grant program and fund. The division requires 20 the office of the chief information officer to establish a 21 broadband grant program to award grants to communication 22 service providers that reduce or eliminate targeted service 23 areas. The division establishes a fund, consisting of moneys 24 appropriated to it or appropriated to the office or otherwise 25 available to the office for purposes of the grant program. The 26 moneys in the fund are appropriated to the office of the chief 27 information officer. The bill provides that communication 28 service providers may apply to the office for a grant. The 29 division requires the office to award grants on a competitive 30 basis using criteria established by the office by rule. 31 The division also adds to the powers and duties of the chief 32 information officer the responsibility for coordinating a new 33 fiberoptic network conduit installation program to facilitate 34 incorporation of fiberoptic network conduit installations, as 35 -15- LSB 1592XL (12) 86 ad/sc 15/ 18

S.F. _____ H.F. _____ defined by the bill, into state-funded construction projects 1 or by state-owned infrastructure. The division provides that, 2 subject to funding from the general assembly, the office 3 may contract with a third party to manage, lease, install, 4 or otherwise provide fiberoptic network conduit access, and 5 the program shall not prohibit the office from purchasing or 6 installing fiberoptic cable within fiberoptic network conduit 7 installed pursuant to the program. 8 Additionally, the division specifies expeditious response 9 requirements regarding the approval, modification, or 10 disapproval of nonwireless broadband-related permits. The 11 division provides that, notwithstanding any other provision to 12 the contrary, a political subdivision vested with permitting 13 authority shall approve, approve with modification, or 14 disapprove nonwireless broadband-related permits within 60 15 business days following the submission of a permit application 16 and fee. In the event that no action is taken during the 60-day 17 period, the application shall be deemed approved. 18 The division also requires the chief information 19 officer to prepare an annual report regarding the status of 20 broadband expansion and coordination, and adds the chief 21 information officer to the Iowa telecommunications and 22 technology commission which oversees the operation of the Iowa 23 communications network and to the statewide interoperable 24 communications system board established in Code section 25 80.28. The division makes corresponding changes. Further, 26 the division adds an additional member to the board who is an 27 emergency medical care provider, and eliminates a provision 28 that required the commission to consult with the director 29 of the department of administrative services and the chief 30 information officer when appointing the commission’s executive 31 director. 32 For fiscal year 2015-2016, the bill requires the department 33 of management to transfer $3 million from the state bond 34 repayment fund to the connecting Iowa farms, schools, and 35 -16- LSB 1592XL (12) 86 ad/sc 16/ 18

S.F. _____ H.F. _____ communities broadband grant fund. For fiscal years 2015-2016 1 and 2016-2017, the bill requires the department of management 2 to transfer $2 million each year from the rebuild Iowa 3 infrastructure fund to the connecting Iowa farms, schools, and 4 communities broadband grant fund. 5 DIVISION III —— PROPERTY TAX INCENTIVES AND ASSESSMENT. The 6 division provides a property tax exemption for installation 7 of broadband infrastructure within a targeted service area, 8 which installation is commenced and completed on or after July 9 1, 2014. The exemption shall be a 100 percent exemption from 10 taxation for a period of three years based on the actual value 11 added by the installation of the broadband infrastructure. 12 The division specifies procedures relating to applying for 13 the tax exemption with the county board of supervisors within 14 which the broadband infrastructure is located, granting the tax 15 exemption, and assessing the property of companies receiving 16 the exemption. 17 The division applies to assessment years beginning on or 18 after January 1, 2016. The division provides that property 19 owners seeking an exemption for installation of broadband 20 infrastructure commenced between July 1, 2014, and the 21 effective date of the division of the bill must certify to 22 the local assessor that the installation of the broadband 23 infrastructure took place within a targeted service area prior 24 to applying for an exemption. All other property owners 25 must certify to the local assessor prior to commencement of 26 the installation. The division also provides that property 27 owners seeking an exemption for the installation of broadband 28 infrastructure commenced and completed between July 1, 2014, 29 and December 31, 2014, shall first file an application for an 30 exemption with the county board of supervisors by February 1, 31 2016, or the following two assessment years. An exemption 32 filed pursuant to this provision of the division is allowed for 33 three years. 34 Code section 25B.7 provides that for a property tax credit 35 -17- LSB 1592XL (12) 86 ad/sc 17/ 18

S.F. _____ H.F. _____ or exemption enacted on or after January 1, 1997, if a state 1 appropriation made to fund the credit or exemption is not 2 sufficient to fully fund the credit or exemption, the political 3 subdivision shall be required to extend to the taxpayer only 4 that portion of the credit or exemption estimated by the 5 department of revenue to be funded by the state appropriation. 6 The division provides that Code section 25B.7 does not apply to 7 the property tax exemption created under this division. 8 DIVISION IV —— INFORMATION TECHNOLOGY INFRASTRUCTURE FOR 9 EDUCATION. The division provides that school infrastructure 10 for purposes of statewide school infrastructure funding 11 includes the acquisition or installation of information 12 technology, as defined in the division. 13 -18- LSB 1592XL (12) 86 ad/sc 18/ 18