AB 123

This bill makes changes to the following: 1) a broadband grant program

administered by the Public Service Commission; 2) the authority of the Department

of Natural Resources and the Department of Transportation regarding certain fees

relating to the construction of broadband infrastructure; and 3) the Technology for

Educational Achievement program, known as TEACH, which is administered by the

Department of Administration.

Broadband grants

The bill makes changes to funding for grants made by the PSC for projects to

construct broadband infrastructure in underserved areas. Under current law,

$6,000,000 was transferred from the universal service fund (USF) for making the

grants, but current law also limits the total grants made in a fiscal year to

$1,500,000. The bill eliminates that limit. The bill also provides additional funding

for the grants by doing the following: 1) transferring an additional $6,000,000 from

the USF; 2) transferring $5,000,000 from moneys received under a federal program

for assisting schools and libraries in obtaining telecommunications services and

Internet access, which is commonly known as the federal e-rate program; and 3) at

the end of each fiscal year, transferring the unencumbered balances from other

USF-funded appropriations. Also, beginning in fiscal year 2017-18, the bill allows

the PSC to fund its administration of the broadband grant program from

contributions made by telecommunications providers to the USF.

The bill also makes changes to the priorities for the PSC to make the grants.

One of the priorities under current law is for projects that affect areas with no

broadband service providers. The bill repeals that priority and requires that the PSC

give priority to projects in an “unserved area” designated by the PSC, which the bill

defines as an area of this state that is not served by an Internet service provider

offering Internet service that 1) is wired service or fixed wireless service; and 2) is

provided at actual speeds of at least 20 percent of the upload and download speed for

high-speed, switched, broadband telecommunications capability as designated by

the Federal Communications Commission in its annual inquiries regarding

advanced telecommunications capability. Another priority under current law is for

projects that promote “economic development,” which is not defined. This bill defines

“economic development” as development designed to promote job growth or

retention, expand the property tax base, or improve the overall economic vitality of

a town, village, city, county, or region. Also, the bill creates a new priority for projects

that will not result in delaying the provision of broadband service to neighboring

areas. In addition, the bill requires the PSC to consider the following in evaluating

grant applications for proposed projects: 1) the degree to which the projects would

duplicate existing broadband infrastructure; 2) impacts on the ability of individuals

to access health care services from home and the cost of those services; and 3) impacts

on the ability of students to access educational opportunities from home.