June 7, 2023 - Introduced by Senators Marklein, Ballweg, Felzkowski, Feyen, James, Pfaff, Testin, Wimberger and Wanggaard, cosponsored by Representatives Summerfield, Swearingen, Armstrong, Binsfeld, Callahan, Considine, Edming, Green, Hurd, S. Johnson, Kitchens, Magnafici, Mursau, Novak, O’Connor, Penterman, Plumer, Pronschinske, Sapik, Schmidt, Schraa, Tranel, Tusler, Sinicki and Conley. Referred to Committee on Utilities and Technology.
SB325,,22An Act to repeal 13.48 (30) (a) 1., 196.504 (1) (b) and 196.504 (2) (d); to renumber and amend 196.504 (1) (c) 2. and 196.504 (2) (c); to consolidate, renumber and amend 13.48 (30) (a) (intro.) and 2.; to amend 13.48 (30) (b), 24.40 (3), 86.16 (6), 196.504 (2) (a) and 196.504 (3) (intro.); and to create 196.504 (1) (c) 2. b., 196.504 (1) (c) 3., 196.504 (2) (c) 1. g., 196.504 (2) (c) 2. d. and 196.504 (2t) of the statutes; relating to: the broadband expansion grant program. SB325,,33Analysis 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 1) is a fixed wireless service or wired service and 2) 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 adds that, in order to not be an unserved area, Internet service must be available and reliable, and provided at no less than actual download speeds of 100 megabits per second and upload speeds of 20 megabits per second. The bill also allows PSC to adjust those speed standards every two years by rule if it determines there is good cause to do so in order to align with changes in technology and actual market conditions, in which case it must publish the adjusted speed thresholds on its website.
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 applicants to participate in the FCC’s Affordable Connectivity Program or any federally mandated successor program. Under the bill, the criteria must give priority to projects with at least 40 percent matching funds and higher priority to projects with more than 40 percent matching funds. The bill changes a requirement under current law that the criteria prioritize projects in a large geographic area to projects in a geographic area that is difficult to connect. The bill specifies that the criteria must give priority to projects that are capable of offering service at actual download speeds of 100 megabits per second or greater and upload speeds of 100 megabits per second or greater, and higher priority to projects capable of exceeding the minimum speeds just described.
Current law requires PSC to consider certain factors when evaluating an application under the broadband expansion grant program. This bill adds that PSC must consider whether the applicant offers a low-cost broadband service option in order to be eligible for funding under the federal Broadband Equity, Access, and Deployment program or participates in the FCC’s Affordable Connectivity Program or any federally mandated successor program.
The bill adds a procedure by which an ISP in or near 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 available and reliable fixed wireless or wired broadband service to the project area at minimum download and upload speeds or if that ISP commits to completing construction of broadband infrastructure and providing available and reliable broadband service to the project area at minimum download and upload speeds no later than 24 months after the date of the PSC order awarding grants. The bill requires PSC to evaluate the challenge and prohibits it from funding any portion of a project relating to the area that is the subject of the challenge if it determines as credible the challenging ISP’s commitment to provide broadband service that meets the requirements. If PSC denies funding as a result of such a challenge and the ISP does not fulfill its commitment, PSC is prohibited from awarding grant funding to that ISP and the ISP is prohibited from participating in the challenge process for the following two grant cycles.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.