As Introduced

132nd General Assembly

Regular Session S. B. No. 199

2017-2018

A BILL

To amend section 184.10 and to enact sections 122.97, 122.971, 122.972, 122.973, 122.974, 122.975, 122.976, 122.977, and 122.978 of the Revised Code to create the Ohio Broadband Development Grant Program and to make an appropriation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 184.10 be amended and sections 122.97, 122.971, 122.972, 122.973, 122.974, 122.975, 122.976, 122.977, and 122.978 of the Revised Code be enacted to read as follows:

Sec. 122.97. As used in sections 122.97 to 122.978 of the Revised Code:

(A) "Broadband service" means advanced telecommunications capability that meets the benchmarks of the federal communications commission's latest annual broadband progress report, as issued pursuant to section 706 of the Telecommunications Act of 1996, Pub. L. 104-104, 110 Stat. 56.

(B) "Last-mile infrastructure" means broadband infrastructure that connects a broadband service provider's network to the end user customer's on-premise telecommunications equipment.

(C) "Middle-mile infrastructure" means broadband infrastructure that connects a broadband service provider's core network infrastructure to last-mile infrastructure.

(D) "Political subdivision" has the same meaning as in section 122.9511 of the Revised Code.

(E) "Unserved area" means an area that does not have broadband service according to the latest state broadband map.

Sec. 122.971. The director of development services shall establish the Ohio broadband development grant program to provide funds to extend broadband service to unserved areas of the state. The program shall incorporate the state's policy to provide incentives for competing providers of telecommunications service to provide advanced, high-quality telecommunications service to citizens throughout the state, as set forth in division (A)(2) of section 4927.02 of the Revised Code.

Sec. 122.972. Recipients of a grant under the Ohio broadband development grant program shall use the funds for the construction of broadband infrastructure to serve unserved areas. Construction shall include the acquisition and installation of middle-mile or last-mile infrastructure. Construction may also include any of the following: grant-project planning, obtaining construction permits, construction of facilities, purchasing equipment, and installation and testing of the broadband service.

Sec. 122.973. The following may apply for a grant under the Ohio broadband development grant program:

(A) Private businesses;

(B) Political subdivisions;

(D) Co-ops organized to provide phone and internet services.

Sec. 122.974. To apply for a grant under the Ohio broadband development grant program, an eligible applicant, as described in section 122.973 of the Revised Code, shall submit an application to the director of development services on a form prescribed by the director. The application shall include all of the following information:

(A) The location of the project;

(B) The kind and amount of broadband infrastructure to be purchased for the project;

(D) The number of households that will have access to broadband service as a result of the project, or whose broadband service will be upgraded as a result of the project;

(E) Significant community institutions that will benefit from the project;

(F) Evidence of community support for the project;

(G) The total cost of the project;

(H) Sources of funding or in-kind contributions for the project that will supplement any grant award;

(I) If the applicant is a political subdivision, evidence that not later than six weeks before submission of the application, the applicant contacted, in writing, all broadband service providers providing broadband service in the proposed project area, as depicted by the latest state broadband map, to ask for each provider's plan to upgrade, within twenty-four months of the date that contact is made, broadband service in the project area to minimum upload and minimum download speeds that meet or exceed the benchmark upload and download speeds specified in the latest annual broadband progress report issued by the federal communications commission referenced in division (A) of section 122.97 of the Revised Code;

(J) Evidence of any responses by broadband service providers to the inquiries described in division (I) of this section;

(K) Any additional information requested by the director.

Sec. 122.975. (A) The director of development services shall evaluate applications and award grants under the Ohio broadband development grant program. The director shall give priority to applications that do any or all of the following:

(1) Offer new or substantially upgraded broadband service to important community institutions, including, but not limited to, libraries, educational institutions, public safety facilities, and healthcare facilities;

(2) Facilitate the use of telemedicine and electronic health records;

(3) Serve economically distressed areas of the state, as measured by indices of unemployment, poverty, or population loss that are significantly greater than the statewide average;

(4) Provide technical support and train residents, businesses, and institutions in the community served by the project to utilize broadband service;

(5) Include a plan to promote the newly available broadband services in the community;

(6) Provide evidence of strong support for the project from citizens, government, businesses, and institutions in the community;

(7) Provide access to broadband service to a greater number of unserved households and businesses;

(8) Leverage greater amounts of funding for the project from public and private sources, including federal programs that provide financial support for the deployment of new broadband infrastructure;

(9) Provide for the implementation of open access networks that offer wholesale access to network infrastructure or services;

(10) Encourage the development of new or existing industries through the use of broadband service.

(B) The director shall endeavor to award grants under this section to qualified applicants in geographically dispersed regions of the state.

(C) The director may deny a grant application if any broadband service provider's written response described in division (J) of section 122.974 of the Revised Code credibly demonstrates that either of the following apply:

(1) The provider currently provides or has begun construction to provide broadband service in the project area at minimum upload and minimum download speeds that meet or exceed the benchmark upload and download speeds specified in the latest annual broadband progress report issued by the federal communications commission referenced in division (A) of section 122.97 of the Revised Code.

(2) The provider credibly commits to complete construction and provide broadband service in the proposed project area at minimum upload and minimum download speeds that meet or exceed the benchmark upload and download speeds specified in the latest annual broadband progress report issued by the federal communications commission referenced in division (A) of section 122.97 of the Revised Code within twenty-four months of the date the contact is made.

Sec. 122.976. Grant amounts awarded under section 122.975 of the Revised Code shall not exceed the lesser of:

(A) Fifty per cent of the total project cost; or

(B) Five million dollars.

Sec. 122.977. If a recipient of a grant awarded under section 122.975 of the Revised Code does not spend all of the funds awarded to the recipient, the director of development services may, in the director's sole discretion, reallocate the unspent funds to other grant applicants, provided that the reallocation does not result in the total amount awarded to any single applicant exceeding the limit set forth in section 122.976 of the Revised Code.

Sec. 122.978. The director of development services shall adopt rules under Chapter 119. of the Revised Code necessary to implement sections 122.97 to 122.977 of the Revised Code. The rules shall include procedures governing the application and grant-award processes.

Sec. 184.10. As used in sections 184.10 to 184.20 of the Revised Code:

(A) "In-state entity" includes individuals, public and private entities, agencies, and institutions, private companies or organizations, partnerships, business trusts, or other business entities or ventures, or research organizations, whether for profit or not for profit, that have substantial presence in Ohio.

(B) "Research and development projects" means projects or activities in support of Ohio industry, commerce, and business, which include, without limitation, research and product innovation, development, and commercialization through efforts by, and may include collaboration among, Ohio business and industry, state and local public entities and agencies, public and private institutions, research organizations, or other in-state entities specifically formed for the sole purpose of both investing in and providing direct management support to any one or combination of any of the foregoing entities or any other in-state entities. Those projects and activities also include projects and activities supporting any and all matters related to research and development purposes including: attracting researchers and research teams by endowing chairs or otherwise; developing and commercializing products and processes; promoting, developing, and securing intellectual property matters and rights such as copyrights and patents; promoting, developing, and securing property interests, including time sharing arrangements; ~~and~~ promoting, developing, and securing financial rights and matters such as royalties, licensing, and other financial gain or sharing resulting from research and development; and evaluating and overseeing the expansion of broadband service to unserved areas of the state under sections 122.97 to 122.978 of the Revised Code.

Section 2. That existing section 184.10 of the Revised Code is hereby repealed.

Section 3. All items in this section are hereby appropriated as designated out of any moneys in the state treasury to the credit of the designated fund. For all appropriations made in this act, those in the first column are for fiscal year 2018 and those in the second column are for fiscal year 2019. The appropriations made in this act are in addition to any other appropriations made for the FY 2018-FY 2019 biennium.

DEV DEVELOPMENT SERVICES AGENCY

Bond Research and Development Fund Group

7011 195605 Broadband Development $50,000,000 $50,000,000

Grants

TOTAL BRD Bond Research and Development

Fund Group $50,000,000 $50,000,000

TOTAL ALL BUDGET FUND GROUPS $50,000,000 $50,000,000

BROADBAND DEVELOPMENT GRANTS

The foregoing appropriation item 195605, Broadband Development Grants, shall be used to award grants under the Ohio Broadband Development Grant Program as described in sections 122.97 to 122.978 of the Revised Code.

Of the foregoing appropriation item 195605, Broadband Development Grants, $1,000,000 in each fiscal year shall be used to contract with one or more independent organizations that have experience working with Ohio broadband providers for the purpose of (1) collecting broadband deployment data from Ohio broadband providers; (2) verifying the data's accuracy through on-the-ground testing; (3) creating annual state and county broadband maps that show the availability of broadband service at various upload speeds throughout the state; (4) analyzing the data to help inform future investments in broadband infrastructure; (5) conducting business and residential surveys that measure broadband adoption and use in the state; and (6) engaging communities and facilitating local technology planning to provide evidence of local support for grant projects and potential economic impacts of grant projects.

Section 4. Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act and shall determine the form and manner in which appropriation accounts shall be maintained. Expenditures from appropriations contained in this act shall be accounted for as though made in Am. Sub. H.B. 49 of the 132nd General Assembly.

The appropriations made in this act are subject to all provisions of Am. Sub. H.B. 49 of the 132nd General Assembly that are generally applicable to such appropriations.