SB 847

This bill does the following: 1) makes changes to the broadband expansion

grant program; 2) eliminates requirements that apply to local government

telecommunications, video, and broadband service facilities; and 3) changes the

manufacturing and agriculture tax credit.

Broadband expansion grants.

This bill appropriates $200,000,000 in

general purpose revenues in the 2017-19 fiscal biennium for the broadband

expansion grant program administered by the Public Service Commission under

current law. Under that program, the PSC makes grants to eligible applicants for

the purpose of constructing broadband infrastructure in underserved areas

designated by PSC. The bill's appropriation is in addition to appropriations from the

universal service fund for the grants under current law.

The bill creates a definition for “broadband infrastructure,” which is not defined

under current law. The bill defines “broadband infrastructure” as infrastructure

that provides broadband service at a minimum download speed of 25 megabits per

second and a minimum upload speed of 3 megabits per second. Under the bill,

infrastructure is eligible for a broadband expansion grant only if it satisfies the

foregoing definition. The bill requires a person who receives a grant to reimburse the

PSC for the grant if 1) the person fails to complete construction of the infrastructure;

or 2) the infrastructure that is constructed fails to provide minimum download or

upload speeds specified in the bill's definition of “broadband infrastructure.”

The bill changes the priorities that apply to the PSC in awarding grants.

Current law requires the PSC to give priority to projects that satisfy various

requirements, including projects that affect “unserved areas,” which current law

defines as areas without specified types of Internet service. The bill requires instead

that the PSC give first priority to projects for areas in which no broadband service

is available and secondary priority to projects that satisfy the requirements specified

under current law, except that the bill eliminates the priority for unserved areas. In

addition, the bill requires the PSC to award no less than 85 percent of the grants in

a fiscal year for projects to construct broadband infrastructure in counties with

populations of 65,000 or less.

The bill also changes eligibility requirements for the grants. Under current law,

telecommunications utilities are eligible to apply. Under the bill, a

telecommunications utility is eligible only if it has not applied for or received support

for broadband deployment under certain federal programs administered by the

Federal Communications Commission. The bill also allows a city, village, town, or

county to apply for a grant without submitting the application in partnership with

a telecommunications utility or for-profit or not-for-profit organization, which is

required under current law. The bill also specifies that a city, village, town, or county

may use a grant for planning related to broadband infrastructure construction,