Amendment ASA1-AB371

CORRECTED COPY

LRBs0140/1

EHS:cdc

2021 - 2022 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 371

June 4, 2021 - Offered by Representative Summerfield.

AB371-ASA1,1,5 An Act to repeal 196.504 (1) (b) and 196.504 (2) (d); to renumber and amend 196.504 (2) (c); to amend 24.40 (3), 86.16 (6), 196.504 (1) (c) 2., 196.504 (2) (a) and 196.504 (3) (intro.); and to create 196.504 (2) (c) 1. b., 196.504 (2) (c) 3., 196.504 (2) (f), 196.504 (2e) and 196.504 (2t) of the statutes; relating to: the broadband expansion grant program.

Analysis by the Legislative Reference Bureau

This bill makes various changes to the broadband expansion grant program.

Current law requires the Public Service Commission to administer the broadband expansion grant program, under which PSC designates as “underserved” areas of the state that are served by fewer than two broadband service providers and awards grants to eligible applicants for the purpose of constructing broadband infrastructure in underserved areas. This bill changes the purpose of the grant program to constructing broadband infrastructure in “unserved areas.” Under current law, “unserved areas” are areas not served by an Internet service provider (ISP) that is a fixed wireless service or wired service and that provides service at actual speeds of at least 20 percent of the upload and download speeds for advanced telecommunications capability as designated by the Federal Communications Commission. The bill changes the speed standard for an unserved area to be at least actual download speeds of 100 megabits per second and upload speeds of 20 megabits per second.

Current law requires PSC to establish criteria for evaluating applications and awarding grants under the broadband expansion grant program and requires that the criteria give priority to projects meeting various standards, such as including matching funds and involving public-private partnerships. Under the bill, the criteria must require that projects serve unserved areas. The bill specifies that the criteria must prioritize projects with 50 percent or more matching funds and projects that are capable of offering service with either combined download speeds and upload speeds of 900 megabits per second or greater, or download speeds of 450 megabits per second or greater and upload speeds of 450 megabits per second or greater. When evaluating a grant application, the bill requires PSC to consider all federal broadband grant program project areas related to the proposed project. The bill prohibits PSC from awarding grants for projects that do not include a matching requirement of at least 30 percent of the project cost in each year for the first three years and at least 40 percent of the project cost in each subsequent year. The bill also prohibits PSC from awarding grants for projects that are not capable of offering download speeds of 100 megabits per second or greater and upload speeds of 20 megabits per second or greater (minimum download and upload speeds). However, the bill allows PSC to award grants for a project offering download speeds of 25 megabits per second or greater and upload speeds of 3 megabits per second or greater if the project demonstrates that it will meet the higher speed requirements on or before January 1, 2025.

The bill adds a procedure by which an ISP in or near to a project area proposed in an application for a broadband expansion grant may challenge the awarding of that grant. An ISP may challenge the grant if that ISP currently provides or has begun construction to provide broadband service to that area at minimum download and upload speeds or if that ISP commits to completing construction of broadband infrastructure and providing broadband service to that area at minimum download and upload speeds no later than 36 months after the date grants are made for the grant cycle under which the application was submitted. The bill requires PSC to evaluate the challenge and prohibits it from funding the project if it determines as credible the challenging ISP's commitment to provide broadband service that meets the requirements.

The bill allows PSC to require the recipient of a broadband expansion grant to submit a project completion final report before any withheld grant funds are disbursed. The bill requires the final report to include the number of customer locations passed, upgraded, or within range and how many actually ordered broadband service as a result of the project, as well as an official certification of speeds. The bill requires PSC to disburse any withheld grant funds to an eligible grantee no later than 30 days after the final report is submitted, and to submit the report to the joint committee on finance and to the appropriate standing committees of the legislature. The bill requires PSC to provide technical assistance and educational tools for broadband expansion grant project development.

The bill provides PSC a mechanism for annually collecting from ISP grantees the same broadband availability and speed data they must disclose to the Federal Communications Commission under the federal Broadband Deployment Accuracy and Technological Availability Act (BDATAA) and to use this information to develop and maintain broadband availability maps. However, the bill requires PSC to review the maps created by the FCC under BDATAA and, if they provide sufficient information to facilitate access to broadband service in unserved areas, eliminates the requirement that ISPs annually disclose this information to PSC.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB371-ASA1,1 Section 1 . 24.40 (3) of the statutes is amended to read:

AB371-ASA1,3,6 24.40 (3) Notwithstanding s. 28.02 (5) or any contrary rule promulgated by the department, if the department grants an easement under sub. (1r) for the construction of broadband infrastructure in underserved unserved areas, as designated under s. 196.504 (2) (d) (e), the department may not require any appraisal or the payment of any fee to grant the easement.

AB371-ASA1,2 Section 2 . 86.16 (6) of the statutes is amended to read:

AB371-ASA1,3,12 86.16 (6) If the department consents under sub. (1) to the construction of broadband infrastructure in underserved unserved areas, as designated under s. 196.504 (2) (d) (e), the department may not charge any fee for the initial issuance of any permit necessary to construct broadband infrastructure along, across, or within the limits of a highway.

AB371-ASA1,3 Section 3. 196.504 (1) (b) of the statutes is repealed.

AB371-ASA1,4 Section 4. 196.504 (1) (c) 2. of the statutes is amended to read:

AB371-ASA1,4,2 196.504 (1) (c) 2. Provided at actual speeds of at least 20 percent of the upload and download speeds for advanced telecommunications capability as designated by the federal communications commission in its inquiries regarding advanced telecommunications capability under 47 USC 1302 (b) download speeds of 100 megabits per second or greater and upload speeds of 20 megabits per second or greater.

AB371-ASA1,5 Section 5. 196.504 (2) (a) of the statutes is amended to read:

AB371-ASA1,4,7 196.504 (2) (a) To make broadband expansion grants to eligible applicants for the purpose of constructing broadband infrastructure in underserved unserved areas designated under par. (d) (e). Grants awarded under this section shall be paid from the appropriations under s. 20.155 (3) (r) and (rm).

AB371-ASA1,6 Section 6. 196.504 (2) (c) of the statutes is renumbered 196.504 (2) (c) 1. and amended to read:

AB371-ASA1,4,11 196.504 (2) (c) 1. To establish criteria for evaluating applications and awarding grants under this section. The criteria shall prohibit do all of the following:

AB371-ASA1,4,14 a. Prohibit grants that have the effect of subsidizing the expenses of a provider of telecommunications service, as defined in s. 182.017 (1g) (cq), or the monthly bills of customers of those providers. The criteria shall give

AB371-ASA1,4,23 c. Give priority to projects that include matching funds, of 50 percent or more; that involve public-private partnerships, that affect unserved areas,; that are scalable,; that promote economic development,; that will not result in delaying the provision of broadband service to areas neighboring areas to be served by the proposed project, or; that affect a large geographic area or a large number of underserved unserved individuals or communities; or that are capable of offering service with either combined download speeds and upload speeds of 900 megabits per second or greater, or download speeds of 450 megabits per second or greater and upload speeds of 450 megabits per second or greater.

AB371-ASA1,5,7 2. When evaluating grant applications under this section, the commission shall consider the degree to which the proposed projects would duplicate existing broadband infrastructure, information about the presence of which is provided to the commission by the applicant or another person within a time period designated by the commission; the impacts of the proposed projects on the ability of individuals to access health care services from home and the cost of those services; and the impacts of the proposed projects on the ability of students to access educational opportunities from home; and all federal broadband grant program project areas related to the proposed project.

AB371-ASA1,7 Section 7 . 196.504 (2) (c) 1. b. of the statutes is created to read:

AB371-ASA1,5,9 196.504 (2) (c) 1. b. Require that projects serve unserved areas.

AB371-ASA1,8 Section 8. 196.504 (2) (c) 3. of the statutes is created to read:

AB371-ASA1,5,11 196.504 (2) (c) 3. The commission may not award grants for any of the following:

AB371-ASA1,5,14 a. Projects that do not include a matching requirement of at least 30 percent of the project cost in each year for the first 3 years and at least 40 percent of the project cost in each subsequent year.

AB371-ASA1,5,20 b. Projects that are not capable of offering download speeds of 100 megabits per second or greater and upload speeds of 20 megabits per second or greater, except that the commission may award grants for a project offering download speeds of 25 megabits per second or greater and upload speeds of 3 megabits per second or greater if the project demonstrates that it will meet the higher speed requirements on or before January 1, 2025.

AB371-ASA1,9 Section 9. 196.504 (2) (d) of the statutes is repealed.

AB371-ASA1,10 Section 10. 196.504 (2) (f) of the statutes is created to read:

AB371-ASA1,6,8 196.504 (2) (f) To require that a grantee submit a project completion final report before the commission disburses any withheld grant funds. A project completion final report shall include the number of customer locations passed, upgraded, or within range and how many actually ordered broadband service as a result of the project, and an official certification of speeds performed by either the manufacturer of the equipment or a professional engineer or by using federal communications commission performance testing software. The commission shall disburse any withheld grant funds to an eligible grantee no later than 30 days after a complete project completion final report is submitted. The commission shall send the project completion final report to the joint committee on finance and to the appropriate standing committees of the legislature under s. 13.172 (3).

AB371-ASA1,11 Section 11. 196.504 (2e) of the statutes is created to read:

AB371-ASA1,6,11 196.504 (2e) In administering the broadband expansion grant program, the commission shall do all of the following:

AB371-ASA1,6,14 (a) Provide technical assistance and facilitate the development of rural broadband expansion grant projects by connecting interested communities with Internet service providers.

AB371-ASA1,6,16 (b) Develop and provide educational tools for project creation, grant application processes, and project completion reporting.

AB371-ASA1,6,22 (c) 1. Subject to subd. 4., require each Internet service provider grant recipient to disclose to the commission no later than April 1 of each year broadband availability data for the provider's footprint in this state in the same manner in which it is required to provide data to the federal communications commission pursuant to 47 USC 641 et. seq. and the maximum advertised download and upload speeds associated with its broadband Internet access service available in the reported areas.

AB371-ASA1,7,2 2. The commission may use the information disclosed under subd. 1. to develop and maintain broadband maps and other geographic data regarding the availability of broadband Internet service in this state. The map may include aggregated data indicating service territories for Internet service providers.

AB371-ASA1,7,6 3. Notwithstanding s. 19.35, the commission shall withhold from public inspection any information disclosed to the commission under subd. 1. that would aid a competitor of an Internet service provider in competing with the Internet service provider.

AB371-ASA1,7,12 4. Upon release of the first map created by the federal communications commission pursuant to 47 USC 641 et. seq., the commission shall commence a review of those federal communications commission maps and shall complete the review within 6 months of commencement. If the commission determines that those maps provide information sufficient to facilitate access to broadband service in unserved areas, subd. 1. no longer applies.

AB371-ASA1,12 Section 12. 196.504 (2t) of the statutes is created to read:

AB371-ASA1,7,17 196.504 (2t) (a) Within 3 days of the close of the broadband expansion grant application process, the commission shall publish on its Internet site the proposed geographic broadband service area and the proposed broadband service speeds for each application for a broadband expansion grant submitted.

AB371-ASA1,7,21 (b) An Internet service provider in or proximate to the proposed project area may, within 30 days of publication of the information under par. (a), submit in writing to the commission a challenge to an application. A challenge must contain information demonstrating one of the following:

AB371-ASA1,7,24 1. The provider currently provides or has begun construction to provide broadband service to the proposed project area at download speeds of 100 megabits per second or greater and upload speeds of 20 megabits per second or greater.

AB371-ASA1,8,7 2. The provider commits to complete construction of broadband infrastructure and to provide broadband service in the proposed project area at speeds equal to or greater than the speeds described under subd. 1. no later than 36 months after the date broadband expansion grants are made for the grant cycle under which the application was submitted. The provider shall submit documentation showing this commitment, including engineering plans, invoices related to project materials, permit applications, and a project timeline.

AB371-ASA1,8,12 (c) The commission shall evaluate the information submitted in an Internet service provider's challenge under this subsection, and is prohibited from funding a project if the commission determines that the challenger's commitment to provide broadband service that meets the requirements of par. (b) in the proposed project area is credible.

AB371-ASA1,8,22 (d) If the commission denies funding to an applicant as a result of an Internet service provider's challenge made under this subsection, and the Internet service provider does not fulfill its commitment to provide broadband service in the project area, the commission is prohibited from denying funding to an applicant as a result of a challenge by the same Internet service provider for the following 2 grant cycles, unless the commission determines that the Internet service provider's failure to fulfill its commitment was the result of factors beyond the Internet service provider's control. The commission shall give priority scoring treatment to an application targeting a grant project area that remains unserved as a result of a successful challenge and an unfulfilled commitment.