Legislative Analysis
                                                                                      Phone: (517) 373-8080
MICHIGAN HIGH-SPEED INTERNET OFFICE ACT
                                                                                      http://www.house.mi.gov/hfa
House Bill 5568 as passed by the House
                                                                                      Analysis available at
Sponsor: Rep. Helena Scott                                                            http://www.legislature.mi.gov
Committee: Energy, Communications, and Technology
Revised 7-8-24
SUMMARY:
           House Bill 5568 would create a new act, the Michigan High-Speed Internet Office Act, to
           establish in statute 1 the Michigan High-Speed Internet Office in the Department of Labor and
           Economic Opportunity (LEO) and provide for its powers and duties.
           The new act would allow the office to provide, upon appropriation, grants and other financial
           and technical assistance related to broadband and digital infrastructure. The office also would
           be charged with duties, described below, related to broadband and digital infrastructure. The
           director of LEO would have to appoint someone qualified by training and experience as the
           director of the office, and that director would establish budgeting, spending, and employment
           procedures for the office in accordance with the Management and Budget Act.
           The office would have to do all of the following:
              • Implement modern broadband and digital infrastructure duties assigned to it and
                   coordinate with other state departments responsible for matters concerning modern
                   broadband and digital infrastructure.
              • Facilitate collaboration among public and private entities to encourage partnerships,
                   regional coordination, and streamlined policies to increase modern broadband and
                   digital infrastructure.
              • Identify best practices and external resources to support modern broadband and digital
                   infrastructure in Michigan.
              • Provide capacity building and digital literacy resources to the public and entities
                   seeking to expand broadband internet access service and adoption.
              • Promote and implement policies that use modern broadband and digital infrastructure
                   to do any of the following:
                       o Revitalize neighborhoods and communities.
                       o Support economic development opportunities.
                       o Increase hiring and retention of skilled workers that support modern broadband
                            and digital infrastructure in Michigan.
                       o Integrate the deployment of modern broadband and digital infrastructure
                            through existing infrastructure and economic development programs.
              • Collect and analyze data to accurately determine the availability of broadband internet
                   access service, including developing methods that identify parcel level wholesale and
                   retail broadband infrastructure availability and adoption throughout the state.
              • Issue reports on the status of broadband internet access service market competition in
                   different regions throughout the state that distinguish between the type and quality of
                   broadband internet access service provided and evaluate and provide analysis of the
                   wholesale and retail cost of broadband internet access service.
1
    The office was created in June 2021 by executive directive: https://www.michigan.gov/leo/bureaus-agencies/mihi
House Fiscal Agency                                                                                     Page 1 of 2
               •   Serve as a point of contact between the public and broadband internet access service
                   providers to improve access, adoption, and transparency of broadband internet access
                   services.
                   Modern broadband and digital infrastructure would mean the technology and
                   associated equipment used to provide broadband internet access service with speeds
                   of not less than 100 megabits per second (Mbps) downstream and 20 Mbps upstream,
                   scalable to 100 Mbps speeds and latency sufficient to support real-time, interactive
                   applications and that meet the educational, economic, and consumer needs of Michigan
                   residents.
                   Broadband internet access service would mean a mass-market retail service by wire
                   or radio that provides the capability to transmit data to, and receive data from, all or
                   substantially all internet endpoints, including all capability that is incidental to and that
                   enables the operation of the communications service. It would not include dial-up
                   internet access service.
                   Broadband internet access service provider would mean an entity that provides
                   broadband internet access service in Michigan.
           Upon appropriation, the office could award grants or provide other financial and technical
           assistance to carry out the purposes of the act.
BACKGROUND:
           The bill is largely identical to House Bill 4066 (H-1), which was passed by the House and then
           returned upon request and reconsidered. (House Bill 5568 would require the office to evaluate
           and provide analysis of the wholesale and retail costs of broadband internet access service,
           while HB 4066 would require it to evaluate and provide recommendations.) The bill is also
           similar to Senate Bill 687.
FISCAL IMPACT:
           House Bill 5568 would have no significant fiscal impact on the state. The bill would authorize
           in statute the creation of the Michigan High-Speed Internet Office within the Department of
           Labor and Economic Opportunity. However, Executive Directive 2021-2 established the
           Michigan High-Speed Internet Office within LEO in June 2021. 2 Any additional state costs for
           the office would depend on increased legislative appropriation.
POSITIONS:
           The Southeast Michigan Council of Governments indicated support for the bill. (5-22-24)
                                                                 Legislative Analyst: Rick Yuille
                                                                      Fiscal Analyst: Viola Bay Wild
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
2
    https://www.michigan.gov/whitmer/news/state-orders-and-directives/2021/06/02/executive-directive-2021-2
House Fiscal Agency                                                 HB 5568 as passed by the House    Page 2 of 2