Senate File 461 - Introduced
SENATE FILE
BY COMMITTEE ON ECONOMIC
GROWTH
(SUCCESSOR TO SF 60)
A BILL FOR
1 An Act relating to the coordination of, access to, and
2 availability of broadband via fiberoptic network
3 infrastructure throughout the state, including a broadband
4 grant program and fund, the use of tax incentives and
5 statewide school infrastructure funding, and including
6 applicability provisions.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 DIVISION I
1 2 STATEWIDE BROADBAND COORDINATION
1 3 Section 1. Section 8B.1, Code 2015, is amended by adding the
1 4 following new subsections:
1 5 NEW SUBSECTION. 01. "Broadband" means a high=speed,
1 6 high=capacity electronic transmission medium that can carry
1 7 data signals from multiple independent network sources by
1 8 establishing different bandwidth channels and that is commonly
1 9 used to deliver internet services to the public.
1 10 NEW SUBSECTION. 001. "Communications service provider"
1 11 means a service provider that provides broadband service using
1 12 fiberoptic network infrastructure.
1 13 NEW SUBSECTION. 0001. "Fiberoptic network infrastructure"
1 14 means the physical infrastructure used for the transmission
1 15 of data via broadband over fiberoptic networks, including
1 16 but not limited to any fiberoptic cable equipment, systems,
1 17 switches, routers, conduits, servers, software, technology,
1 18 base transceiver station sites, or other equipment used to
1 19 transmit broadband communications via fiberoptics. "Fiberoptic
1 20 network infrastructure" does not include land, buildings,
1 21 structures, improvements, or equipment not directly used in the
1 22 transmission of data via broadband over fiberoptic networks.
1 23 NEW SUBSECTION. 7A. "Targeted underserved service area"
1 24 means one or more homes or businesses that do not have
1 25 access to broadband service provided by fiberoptic network
1 26 infrastructure.
1 27 Sec. 2. Section 8B.1, subsection 1, Code 2015, is amended
1 28 to read as follows:
1 29 1. "Information technology" means computing and electronics
1 30 applications used to process and distribute information in
1 31 digital and other forms and includes information technology
1 32 devices, information technology services, infrastructure
1 33 services, broadband and fiberoptic network infrastructure, and
1 34 value=added services.
1 35 Sec. 3. Section 8B.3, subsection 1, Code 2015, is amended
2 1 to read as follows:
2 2 1. The office is created for the purpose of leading,
2 3 directing, managing, coordinating, and providing accountability
2 4 for the information technology resources of state government
2 5 and for coordinating statewide broadband availability and
2 6 access provided by fiberoptic network infrastructure.
2 7 Sec. 4. Section 8B.4, Code 2015, is amended by adding the
2 8 following new subsections:
2 9 NEW SUBSECTION. 14A. Streamline, consolidate, and
2 10 coordinate the access to and availability of broadband via
2 11 fiberoptic network infrastructure throughout the state,
2 12 including but not limited to developing policies and
2 13 recommendations for expanding the installation of fiberoptic
2 14 network infrastructure in targeted underserved service areas
2 15 of the state, facilitating public=private partnerships,
2 16 ensuring that all state agencies' broadband and fiberoptic
2 17 network infrastructure policies and procedures are aligned,
2 18 promoting accountability regarding broadband and fiberoptic
2 19 network infrastructure availability and access, integrating
2 20 broadband with cyber security standards and rules, resolving
2 21 issues which arise with regard to implementation efforts,
2 22 collecting data and developing metrics or standards against
2 23 which the data may be measured and evaluated regarding
2 24 fiberoptic network infrastructure installation and deployment,
2 25 and identifying options regarding the creation of standing
2 26 resources for stakeholders, such as a fiberoptic database or a
2 27 fiberoptic network conduit installation coordination effort for
2 28 state=funded construction projects.
2 29 NEW SUBSECTION. 14B. Establish and administer the
2 30 broadband grant program pursuant to section 8B.11.
2 31 NEW SUBSECTION. 14C. Coordinate the fiberoptic network
2 32 conduit installation program established in section 8B.25.
2 33 Sec. 5. Section 8B.9, Code 2015, is amended by adding the
2 34 following new subsection:
2 35 NEW SUBSECTION. 5. An annual report regarding the status of
3 1 broadband expansion and coordination via fiberoptic networks
3 2 and the broadband grant program established under section
3 3 8B.11.
3 4 Sec. 6. NEW SECTION. 8B.11 Broadband grant program ==== fund.
3 5 1. The office shall administer a broadband grant program
3 6 to award grants to communication service providers that reduce
3 7 or eliminate targeted underserved service areas by providing
3 8 broadband services via fiberoptic network infrastructure.
3 9 2. a. A broadband grant fund is established in the state
3 10 treasury under the authority of the office. The fund shall
3 11 consist of moneys appropriated to the fund or appropriated to
3 12 the office for purposes of the grant program, moneys available
3 13 to and obtained or accepted by the office from the federal
3 14 government or private sources, or other funds available to
3 15 the office for purposes of the grant program. Moneys in the
3 16 fund are appropriated to the office to be used for the grant
3 17 program.
3 18 b. The office shall use moneys in the fund to provide grants
3 19 to communication service providers pursuant to this section.
3 20 The office shall use moneys in the fund to leverage available
3 21 federal moneys.
3 22 c. Notwithstanding section 8.33, moneys in the fund
3 23 that remain unencumbered or unobligated at the close of the
3 24 fiscal year shall not revert but shall remain available for
3 25 expenditure for the purposes designated until the close of the
3 26 succeeding fiscal year.
3 27 3. Communication service providers may apply to the office
3 28 for a grant pursuant to this section for the installation
3 29 of fiberoptic network infrastructure to provide broadband
3 30 services in targeted underserved service areas. The office
3 31 shall include representatives from schools, communities,
3 32 agriculture, industry, and other areas as appropriate to review
3 33 and recommend grant awards. The office shall conduct an open
3 34 application review process and include a public internet site
3 35 for applications, results, and performance.
4 1 4. a. The office shall award grants on a competitive basis
4 2 after considering the following:
4 3 (1) The relative need for broadband services in the area.
4 4 (2) The geographic diversity of the project areas of all the
4 5 applicants.
4 6 (3) The economic impact of the project to the area.
4 7 (4) The applicant's total proposed budget for the project,
4 8 including the amount or percentage of local match, if any.
4 9 (5) Other factors the office deems relevant.
4 10 b. Except as otherwise provided in this section, the office
4 11 shall not evaluate applications based on the office's knowledge
4 12 of the applicant except for the information provided in the
4 13 application.
4 14 5. The office shall not award a grant pursuant to this
4 15 section that exceeds ten percent of the communication service
4 16 provider's project cost.
4 17 6. The office shall adopt rules pursuant to chapter 17A,
4 18 including but not limited to the broadband grant program
4 19 process, management, and measurements as deemed necessary by
4 20 the office.
4 21 Sec. 7. NEW SECTION. 8B.25 Fiberoptic network conduit
4 22 installation program.
4 23 1. For the purposes of this section, "fiberoptic network
4 24 conduit" means a pipe or duct used to enclose fiberoptic cable
4 25 facilities buried alongside a roadway or surface mounted on
4 26 a bridge, overpass, or other facility where placement below
4 27 ground is impossible or impractical.
4 28 2. The office shall lead and coordinate a program to
4 29 provide for the installation of fiberoptic network conduit
4 30 where such conduit does not exist. The chief information
4 31 officer shall consult and coordinate with the department of
4 32 administrative services, the department of transportation, the
4 33 Iowa communications network, and other agencies and entities
4 34 as determined appropriate to ensure that the opportunity is
4 35 provided to lay or install fiberoptic network conduit wherever
5 1 a state=funded construction project involves trenching, boring,
5 2 a bridge, a roadway, or opening of the ground, or alongside any
5 3 state=owned infrastructure.
5 4 3. Contingent upon the provision of funding for such
5 5 purposes by the general assembly, the office may contract with
5 6 a third party to manage, lease, install, or otherwise provide
5 7 fiberoptic network conduit access for projects described in
5 8 this section. This section shall not prohibit the office from
5 9 purchasing or installing fiberoptic cable within any fiberoptic
5 10 network conduit installed pursuant to the program.
5 11 Sec. 8. NEW SECTION. 8B.26 Broadband permitting process ====
5 12 expeditious response.
5 13 Notwithstanding any other provision to the contrary and in
5 14 compliance with applicable federal laws and regulations, a
5 15 political subdivision vested with permitting authority shall
5 16 approve, approve with modification, or disapprove nonwireless,
5 17 broadband=related permits within sixty business days following
5 18 the submission of a permit application and fee. In the event
5 19 that no action is taken during the sixty=day period, the
5 20 application shall be deemed approved.
5 21 Sec. 9. Section 8D.3, subsection 2, paragraph a, Code 2015,
5 22 is amended to read as follows:
5 23 a. The commission is composed of five voting members
5 24 appointed by the governor and subject to confirmation by the
5 25 senate. Members Voting members of the commission shall not
5 26 serve in any manner or be employed by an authorized user of the
5 27 network or by an entity seeking to do or doing business with
5 28 the network.
5 29 (1) The governor shall appoint a voting member as the
5 30 chairperson of the commission from the five voting members
5 31 appointed by the governor, subject to confirmation by the
5 32 senate.
5 33 (2) Members Voting members of the commission shall serve
5 34 six=year staggered terms as designated by the governor and
5 35 appointments to the commission are subject to the requirements
6 1 of sections 69.16, 69.16A, and 69.19. Vacancies shall be
6 2 filled by the governor for the duration of the unexpired term.
6 3 (3) The salary of the voting members of the commission shall
6 4 be twelve thousand dollars per year, except that the salary
6 5 of the chairperson shall be seventeen thousand dollars per
6 6 year. Members Voting members of the commission shall also be
6 7 reimbursed for all actual and necessary expenses incurred in
6 8 the performance of duties as members. The benefits and salary
6 9 paid to the voting members of the commission shall be adjusted
6 10 annually equal to the average of the annual pay adjustments,
6 11 expense reimbursements, and related benefits provided under
6 12 collective bargaining agreements negotiated pursuant to chapter
6 13 20.
6 14 Sec. 10. Section 8D.3, subsection 2, paragraph b, Code 2015,
6 15 is amended to read as follows:
6 16 b. In addition to the members appointed by the governor,
6 17 the The auditor of state or the auditor's designee and the
6 18 chief information officer appointed pursuant to section 8B.2
6 19 or the chief information officer's designee shall serve as a
6 20 nonvoting, ex officio member members of the commission.
6 21 Sec. 11. Section 8D.4, Code 2015, is amended to read as
6 22 follows:
6 23 8D.4 Executive director appointed.
6 24 The commission, in consultation with the director of
6 25 the department of administrative services and the chief
6 26 information officer, shall appoint an executive director of
6 27 the commission, subject to confirmation by the senate. Such
6 28 individual shall not serve as a member of the commission.
6 29 The executive director shall serve at the pleasure of the
6 30 commission. The executive director shall be selected primarily
6 31 for administrative ability and knowledge in the field, without
6 32 regard to political affiliation. The governor shall establish
6 33 the salary of the executive director within range nine as
6 34 established by the general assembly. The salary and support of
6 35 the executive director shall be paid from funds deposited in
7 1 the Iowa communications network fund.
7 2 Sec. 12. Section 80.28, subsection 2, Code 2015, is amended
7 3 to read as follows:
7 4 2. The board shall consist of fifteen nineteen voting
7 5 members, as follows:
7 6 a. The following members representing state agencies:
7 7 (1) One member representing the department of public
7 8 safety.
7 9 (2) One member representing the state department of
7 10 transportation.
7 11 (3) One member representing the department of homeland
7 12 security and emergency management.
7 13 (4) One member representing the department of corrections.
7 14 (5) One member representing the department of natural
7 15 resources.
7 16 (6) One member representing the Iowa department of public
7 17 health.
7 18 (7) One member representing the office of the chief
7 19 information officer created in section 8B.2.
7 20 b. The governor shall solicit and consider recommendations
7 21 from professional or volunteer organizations in appointing the
7 22 following members:
7 23 (1) Two members who are representatives from municipal
7 24 police departments.
7 25 (2) Two members who are representatives of sheriff's
7 26 offices.
7 27 (3) Two members who are representatives from fire
7 28 departments. One of the members shall be a volunteer fire
7 29 fighter and the other member shall be a paid fire fighter.
7 30 (4) Two members who are law communication center managers
7 31 employed by state or local government agencies.
7 32 (05) One member who is an emergency medical care provider
7 33 as defined in section 147A.1.
7 34 (005) One member who is a local emergency management
7 35 coordinator as described in section 29C.9.
8 1 (0005) One member representing the communication workers
8 2 of America in Iowa.
8 3 (5) One at=large member.
8 4 Sec. 13. RULES. The office of the chief information officer
8 5 shall adopt rules pursuant to chapter 17A to certify that
8 6 fiberoptic network infrastructure is installed in a targeted
8 7 underserved service area and to allow challenges to claims that
8 8 an area meets the definition of a targeted underserved service
8 9 area.
8 10 DIVISION II
8 11 PROPERTY TAX INCENTIVES AND ASSESSMENT
8 12 Sec. 14. Section 421.1A, subsection 3, Code 2015, is amended
8 13 to read as follows:
8 14 3. At the election of a property owner or aggrieved taxpayer
8 15 or an appellant described in section 441.42, the property
8 16 assessment appeal board shall review any final decision,
8 17 finding, ruling, determination, or order of a local board of
8 18 review relating to protests of an assessment, valuation, or
8 19 application of an equalization order, or any final decision
8 20 of the county board of supervisors relating to denial of an
8 21 application for a property tax exemption pursuant to section
8 22 427.1, subsection 40.
8 23 Sec. 15. Section 421.1A, subsection 4, Code 2015, is amended
8 24 by adding the following new paragraph:
8 25 NEW PARAGRAPH. 0b. Affirm or reverse a final decision
8 26 of a county board of supervisors relating to denial of an
8 27 application for a property tax exemption under section 427.1,
8 28 subsection 40.
8 29 Sec. 16. Section 427.1, Code 2015, is amended by adding the
8 30 following new subsection:
8 31 NEW SUBSECTION. 40. Fiberoptic network infrastructure.
8 32 a. The owner of fiberoptic network infrastructure shall be
8 33 entitled to an exemption from taxation to the extent provided
8 34 in this subsection. For the purposes of this subsection,
8 35 "fiberoptic network infrastructure" and "targeted underserved
9 1 service area" mean the same as defined in section 8B.1.
9 2 b. The exemption shall apply to the installation of
9 3 fiberoptic network infrastructure commenced and completed on
9 4 or after July 1, 2015, in a targeted underserved service area,
9 5 and used to deliver internet services to the public. A person
9 6 claiming an exemption under this subsection shall certify to
9 7 the local assessor prior to commencement of the installation
9 8 that the fiberoptic network installation will take place within
9 9 a targeted underserved service area.
9 10 c. The tax exemption shall be a one hundred percent
9 11 exemption from taxation for a period of five years in an
9 12 amount equal to the actual value added by installation of the
9 13 fiberoptic network infrastructure.
9 14 d. For companies assessed by the department of revenue
9 15 pursuant to chapter 433, the exemption shall be limited to an
9 16 amount equal to the actual value added by installation of the
9 17 fiberoptic network infrastructure as of the assessment date,
9 18 as determined by the department, and the exemption shall be
9 19 applied prior to any other exemption applicable to the unit
9 20 value, as determined under that chapter.
9 21 e. (1) An application for an exemption shall be filed by
9 22 the owner of the property with the county board of supervisors
9 23 of each county in which the property is located by February 1
9 24 of the year in which the fiberoptic network infrastructure is
9 25 first assessed for taxation, or the following two assessment
9 26 years, and in each case the exemption is allowed for five
9 27 years.
9 28 (2) In lieu of subparagraph (1), and notwithstanding any
9 29 provision in this subsection to the contrary, an owner may at
9 30 any time before completion of the project submit a proposal to
9 31 the board of supervisors requesting that the board allow the
9 32 owner to file an application for exemption by February 1 of
9 33 any other assessment year following completion of the project,
9 34 which year shall be selected by the board. If the board, by
9 35 resolution, approves the proposal, the exemption is allowed for
10 1 five years.
10 2 f. (1) The application shall be made on forms prescribed by
10 3 the director of revenue. The application shall contain but not
10 4 be limited to the following information:
10 5 (a) The nature of the fiberoptic network infrastructure
10 6 installation.
10 7 (b) The actual cost of installing the fiberoptic network
10 8 infrastructure under the project, if available. The
10 9 application shall contain supporting documents demonstrating
10 10 the actual cost.
10 11 (c) Certification from the office of the chief information
10 12 officer that the installation is being performed or was
10 13 completed in a targeted underserved service area and
10 14 certification of the date of commencement and actual or
10 15 estimated date of completion.
10 16 (d) A copy of any permit related to fiberoptic network
10 17 infrastructure issued by a political subdivision.
10 18 (e) If applying pursuant to paragraph "e", subparagraph (2),
10 19 the actual cost already incurred for installation of fiberoptic
10 20 network infrastructure, if any, the estimated costs for project
10 21 completion, and the estimated date of project completion. The
10 22 application shall contain supporting documents demonstrating
10 23 the actual cost.
10 24 (2) The board of supervisors shall forward all approved
10 25 applications and any necessary information regarding the
10 26 applications to the appropriate local assessor or to the
10 27 department of revenue, as applicable, by March 1 annually.
10 28 After the tax exemption is granted, the local assessor shall
10 29 continue to grant the tax exemption for five years, and
10 30 applications for exemption for succeeding years shall not be
10 31 required.
10 32 (3) An applicant for a property tax exemption under this
10 33 subsection may appeal the decision of the board of supervisors
10 34 regarding denial of the application to the property assessment
10 35 appeal board.
11 1 g. (1) If a company whose property in the county is not
11 2 assessed by the department of revenue is approved to receive
11 3 a property tax exemption pursuant to this subsection, the
11 4 actual value added by installation of the fiberoptic network
11 5 infrastructure shall be determined by the local assessor who
11 6 shall certify the amount of exemption determined to the county
11 7 auditor at the time of transmitting the assessment rolls.
11 8 (2) Notwithstanding any other provision of law to the
11 9 contrary, if a company in which all or a portion of the
11 10 company's property in the county is assessed by the department
11 11 pursuant to chapter 433 and the company's property in the
11 12 county is approved to receive a property tax exemption
11 13 pursuant to this subsection, the department shall assess
11 14 all the company's property in the county used for operating
11 15 telegraph and telephone lines, broadband, or cable systems for
11 16 each assessment year the company receives the exemption, for
11 17 purposes of determining the actual value added by installation
11 18 of the fiberoptic network infrastructure.
11 19 (3) (a) If assessing property pursuant to subparagraph (2),
11 20 the department shall certify the assessment value and exemption
11 21 amounts for all property used for the operation of providing
11 22 cable and broadband services and generally not assessed by
11 23 the department to the local assessor for inclusion on the
11 24 assessment rolls as provided in section 433.8, subsection 2.
11 25 (b) A company whose property is assessed by the department
11 26 pursuant to subparagraph (2) shall follow the appeal procedures
11 27 in chapter 429 for appealing any part of the assessment on
11 28 all the company's property, including the company's property
11 29 that would have been valued by the local assessor but for
11 30 subparagraph (2). For appeal proceedings for assessed values
11 31 submitted pursuant to subparagraph division (a), the department
11 32 shall notify the taxpayer of the right to appeal pursuant to
11 33 chapter 429.
11 34 h. The director of revenue may adopt rules pursuant to
11 35 chapter 17A for the interpretation and proper administration of
12 1 the exemption provided in this subsection.
12 2 Sec. 17. Section 433.8, Code 2015, is amended to read as
12 3 follows:
12 4 433.8 Assessment in each county ==== how certified.
12 5 1. The director of revenue shall, for the purpose of
12 6 determining what amount shall be assessed to each company
12 7 in each county of the state into which the line of the said
12 8 company extends, certify to the several county auditors of the
12 9 respective counties into, over, or through which said line
12 10 extends the number of miles of line in the county for that
12 11 company, the actual value per mile of line for that company,
12 12 and the exemption value per mile of line for that company for
12 13 exemptions received pursuant to section 427.1, subsection 40,
12 14 section 433.4, or any other exemptions. In no case, however,
12 15 shall the taxable value of the property be reduced below zero.
12 16 2. If assessing all of the property of a company pursuant to
12 17 section 427.1, subsection 40, paragraph "g", subparagraph (2),
12 18 the director shall also certify such amounts to the assessor
12 19 for inclusion on the assessment rolls.
12 20 Sec. 18. IMPLEMENTATION. Section 25B.7 shall not apply to
12 21 this division of this Act.
12 22 Sec. 19. APPLICABILITY. This division of this Act applies
12 23 to assessment years beginning on or after January 1, 2016.
12 24 DIVISION III
12 25 INFORMATION TECHNOLOGY INFRASTRUCTURE FOR EDUCATION
12 26 Sec. 20. Section 423F.3, subsection 6, Code 2015, is amended
12 27 by adding the following new paragraph:
12 28 NEW PARAGRAPH. 0c. Additionally, "school infrastructure"
12 29 includes the acquisition or installation of information
12 30 technology infrastructure. For purposes of this paragraph,
12 31 "information technology infrastructure" means the basic,
12 32 underlying physical framework or system necessary to deliver
12 33 technology connectivity to a school district and to network
12 34 school buildings within a school district.
12 35 EXPLANATION
13 1 The inclusion of this explanation does not constitute agreement with
13 2 the explanation's substance by the members of the general assembly.
13 3 This bill relates to the coordination of and availability of
13 4 broadband access via fiberoptic network infrastructure across
13 5 the state.
13 6 Division I of the bill modifies provisions in Code chapter
13 7 8B, the information technology chapter which creates the office
13 8 of the chief information officer, by adding several definitions
13 9 to the Code chapter. The division defines "broadband" as
13 10 a high=speed, high=capacity electronic transmission medium
13 11 that can carry data signals from multiple independent network
13 12 sources by establishing different bandwidth channels and that
13 13 is commonly used to deliver internet services to the public.
13 14 The division defines "fiberoptic network infrastructure" as the
13 15 physical infrastructure used for the transmission of data via
13 16 broadband over fiberoptic networks. The division also adds
13 17 definitions for "communications service provider" and "targeted
13 18 underserved service area". The division changes the definition
13 19 of "information technology" to include broadband and fiberoptic
13 20 network infrastructure.
13 21 The division adds additional powers and duties for the
13 22 chief information officer relating to broadband and fiberoptic
13 23 network infrastructure. The division includes coordination
13 24 of statewide broadband availability and access via fiberoptic
13 25 network infrastructure as a mission of the office of the chief
13 26 information officer. The division also requires the chief
13 27 information officer to streamline, consolidate, and coordinate
13 28 access to and availability of broadband via fiberoptic network
13 29 infrastructure. The division directs the chief information
13 30 officer to submit an annual report regarding the status of
13 31 broadband expansion and coordination via fiberoptic networks
13 32 and the broadband grant program. The division also adds the
13 33 chief information officer as a nonvoting, ex officio member to
13 34 the telecommunication and technology commission, established in
13 35 current Code section 8D.3 and which oversees the operation of
14 1 the Iowa communications network, and adds the chief information
14 2 officer as a voting member of the statewide interoperable
14 3 communications system board established in current Code
14 4 section 80.28 under the purview of the departments of public
14 5 safety and transportation. The division makes corresponding
14 6 amendments regarding voting members of the commission and the
14 7 appointment of the executive director of the telecommunication
14 8 and technology commission. The division also adds an emergency
14 9 care provider, a local emergency management coordinator, and
14 10 a person representing the communication workers of America
14 11 in Iowa to the statewide interoperable communications system
14 12 board.
14 13 The division establishes a broadband grant program and fund.
14 14 The division requires the office of the chief information
14 15 officer to administer a broadband grant program to award grants
14 16 to communication service providers that reduce or eliminate
14 17 targeted underserved service areas by providing broadband
14 18 services via fiberoptic network infrastructure. The division
14 19 establishes a fund, consisting of moneys appropriated to it or
14 20 appropriated to the office or otherwise available to the office
14 21 for purposes of the grant program. The moneys in the fund are
14 22 appropriated to the office of the chief information officer.
14 23 The division provides that communication service providers may
14 24 apply to the office for a grant. The division requires the
14 25 office to include representatives from schools, communities,
14 26 agriculture, industry, and other areas as appropriate to
14 27 review and recommend grant awards. The division also requires
14 28 the office to conduct an open application review process and
14 29 include a public internet site for applications, results,
14 30 and performance. The division sets criteria for the office
14 31 to consider when awarding grants. The division limits grant
14 32 amounts to a maximum of 10 percent of the communication service
14 33 provider's project cost.
14 34 The division adds the responsibility for coordinating a new
14 35 fiberoptic network conduit installation program to facilitate
15 1 incorporation of fiberoptic network conduit installations, as
15 2 defined by the bill, into state=funded construction projects or
15 3 by state=owned infrastructure to the powers and duties of the
15 4 chief information officer. The division provides that, subject
15 5 to funding from the general assembly, the office may contract
15 6 with a third party to manage, lease, install, or otherwise
15 7 provide fiberoptic network conduit access, and the program
15 8 shall not prohibit the office from purchasing or installing
15 9 fiberoptic cable within fiberoptic network conduit installed
15 10 pursuant to the program.
15 11 Additionally, the division specifies expeditious response
15 12 requirements regarding the approval, modification, or
15 13 disapproval of nonwireless broadband=related permits. The
15 14 division provides that, notwithstanding any other provision to
15 15 the contrary, a political subdivision vested with permitting
15 16 authority shall approve, approve with modification, or
15 17 disapprove nonwireless broadband=related permits within 60
15 18 business days following the submission of a permit application
15 19 and fee. If the political subdivision does not take action
15 20 during the 60=day period, the application shall be deemed
15 21 approved.
15 22 Division II of the bill provides a property tax exemption for
15 23 installation of fiberoptic network infrastructure commenced and
15 24 completed on or after July 1, 2015, in a targeted underserved
15 25 service area and used to deliver internet services to the
15 26 public. The exemption shall be a 100 percent exemption from
15 27 taxation for a period of five years based on the actual
15 28 value added by the installation of the fiberoptic network
15 29 infrastructure. The division specifies procedures relating to
15 30 applying for the tax exemption with the board of supervisors in
15 31 the county within which the fiberoptic network infrastructure
15 32 is located, granting the tax exemption, and assessing the
15 33 property of companies receiving the exemption. The division
15 34 applies to assessment years beginning on or after January 1,
15 35 2016. Code section 25B.7 provides that for a property tax
16 1 credit or exemption enacted on or after January 1, 1997, if a
16 2 state appropriation made to fund the credit or exemption is not
16 3 sufficient to fully fund the credit or exemption, the political
16 4 subdivision shall be required to extend to the taxpayer only
16 5 that portion of the credit or exemption estimated by the
16 6 department of revenue to be funded by the state appropriation.
16 7 The division provides that Code section 25B.7 does not apply to
16 8 the property tax exemption created under the division.
16 9 Division III of the bill adds the acquisition or
16 10 installation of information technology infrastructure,
16 11 as defined in the bill, to the definition of "school
16 12 infrastructure" for purposes of the statewide school
16 13 infrastructure funding provisions contained in Code chapter
16 14 423F.
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