Date:1/28/14 Subject: Broadband study bill Senate Study Bill 3119 is an Economic Growth study bill by Senator Sodders. Statewide Broadband Coordination The bill adds several new definitions to Iowa Code 8B.1, the Chief Information Officer (CIO) chapter. One of the definitions is “unserved or underserved communication service area” which means a designated area of the state within which communications service providers do not offer or facilitate broadband service at adequate or sufficient download and upload speeds, as determined by the office (CIO) by rule. The CIO is now responsible for coordinating statewide broadband availability and access. One of the powers and duties of the CIO is to integrate broadband with cyber security standards and rules. (There are some similarities in the Governor’s bill) A new Statewide Broadband Coordinating Council is established to assist the CIO in coordinating statewide broadband availability and access. The council has 13 members including the CIO. (This is not in the Governor’s bill) A broadband information clearinghouse is established to assemble, analyze, and make available best practices information relating to current broadband and broadband infrastructure-related strategies, tactics, and initiatives. The clearinghouse is developed and maintained by the CIO in coordination with Statewide Broadband Coordinating Council. (Not in the Governor’s bill) The CIO is added to the Iowa Telecommunications and Technology Commission. In addition, the CIO is added as a voting member to the Statewide Interoperable Communications System Board. (Same as the Governor’s bill) Iowa Communication Network Communications Service Provider Access The bill allows the Iowa Telecommunications and Technology Commission to enter into a contract to provide access to the ICN network on a wholesale basis to a communications service provider who is not otherwise an authorized user. The Commission will establish rules. One of the access requirements for any contract is the need to make sure there is sufficient capacity for existing and future authorized user demands. The access shall be provided solely for wholesale transactions to communications service providers providing broadband capacity at retail to citizens and businesses in this state and the deployment of broadband infrastructure in unserved or underserved communication services areas of the state. The rates will be established by rule with certain considerations. Any proposed rate adjustments shall be posted on the network’s internet site and subject to a hearing and appeal process. There are three public hearings required. The Iowa Telecommunications and Technology Commission will decide the rate. An appeal may be filed with the Executive Council. (Similar to the Governor’s bill) Financial Incentives The bill establishes a new revolving loan program at the Iowa Finance Authority. The loan program is to provide low-interest loans to broadband and telecommunications businesses to expand access in the state. The loans are targeted in unserved or underserved communications service areas. The maximum award to any single business may not exceed $250,000. (Not in the Governor’s bill) Income Tax Incentives The bill creates a new corporate income tax credit for broadband infrastructure installations in an amount equal to 3 percent of the amount expended by a communications service provider in completing a new installation of broadband infrastructure commenced on or after July 1, 2014 and subject to a maximum of $750,000 per installation. The installations had to take place in unserved or underserved communication service area. The tax credit is not refundable but may be carried forward for 10 years. (Not in the Governor’s bill) Property Tax Incentives The bill provides for a new property tax exemption to the new installation of broadband infrastructure completed on or after July 1, 2014 to and including December 31, 2018 in unserved or underserved communications service area. The property tax exemption is limited to 20 years. (Similar to Governor’s bill, Governor’s property tax exemption incentive) School Information Technology Infrastructure The bill provides that Secure a Vision for Education (SAVE, aka SILO) funds may be used to upgrade information technology infrastructure in schools. STEM Internships and Appropriation The bill amends the current student internship program that is administered by the Iowa Economic Development Authority. The bill creates a second component for the program which incentivize employers to place Iowa students in the fields of science, technology, engineering and mathematics into internships. An Iowa employer may receive financial assistance in the amount of $1 for every $1 paid by the employer to an intern attending an Iowa community college, private college, or regents institution. The Iowa employer may receive financial assistance in the amount of $1 of every $2 paid by the employer to an intern attending an institution of higher learning outside the state. The amount of financial assistance shall not exceed $5,000 per internship. The bill appropriates $2 million form the general fund. The Authority is allowed to use up to three percent of the funds for administration and the appropriation does not revert.
Posted on: Wed, 29 Jan 2014 03:21:04 +0000
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