Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                             SB 531.1
                                                SENATE BILL NO. 531
       INTRODUCED BY D. SALOMON, E. BUTTREY, M. HOPKINS, S. FITZPATRICK, J. ELLSWORTH, K.
                                                       BOGNER
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  A BILL FOR AN ACT ENTITLED: “AN ACT REVISING THE COMMUNICATIONS ADVISORY COMMISSION;
  REVISING THE CHALLENGE PROCESS; PROVIDING RULEMAKING AUTHORITY; PROVIDING FOR AN
  APPLICATION FEE; PROVIDING DEFINITIONS; AMENDING SECTIONS 90-1-602, 90-1-603, 90-1-604, 90-1-
  605, 90-1-606, 90-1-607, 90-1-608, AND 90-1-609, MCA; AMENDING SECTION 13, CHAPTER 449, LAWS
  OF 2021; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 90-1-602, MCA, is amended to read:
          "90-1-602.   (Temporary) Definitions. As used in this part, unless the context clearly indicates
  otherwise, the following definitions apply:
          (1)      (a) "Broadband" means 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. The term includes
  capabilities that are incidental to and enable the operation of the communications service.
          (b)      The term does not include dial-up internet access service.
          (1)(2)   "Broadband service" means any commercially mature, universally available, terrestrially
  deployed technology having the capacity to transmit data from or to the internet at minimum speeds
  downstream and upstream at low latency to accommodate adequate and commonly used internet-based
  applications for residential, commercial, or government use. "Broadband equity, access, and deployment
  program" means the program established by the Infrastructure Investment and Jobs Act, Public Law 117-58,
  and implemented by the national telecommunications and information administration.
          (2)(3)   "Broadband service infrastructure" means the signal transmission facilities and associated
  network equipment proposed to be deployed in a project area used for the provision of broadband service to
  residential, business, and government customers.
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68th Legislature 2023                                                                                               SB 531.1
          (4)       "Challenge" means a contest to a proposal submitted to the department for funding on the
  grounds as provided for by the national telecommunications and information administration.
          (5)       "Commission" means the communications advisory commission established in 90-1-603.
          (6)       "Community anchor institution" means an entity such as a school, library, health clinic, health
  center, hospital or other medical provider, public safety entity, institution of higher education, or community
  support organization.
          (3)(7)    "Department" means the department of commerce administration.
          (4)(8)    "Eligible provider" means an entity that:
          (a)       has authorization to do business in the state; and
          (b)       has demonstrated that it has the technical, financial, and managerial resources and experience
  to provide broadband service or other communications service to customers in the state.
          (9)       "Extremely high cost per location threshold" is a subsidy cost for each location to be utilized
  during the proposal selection process in which a proposal may be declined if use of an alternative technology
  meeting the broadband, equity, access, and deployment program program's technical requirements would be
  less expensive.
          (5)(10) "FCC" means the federal communications commission.
          (6)    "Frontier area" means an area where there is no or extremely limited terrestrial broadband service.
          (11)      "High-cost area" means an unserved area in which the cost of building out broadband service
  is fiscally imprudent, and the area contains no less than 80% of unserved broadband-serviceable locations.
          (12)      "Last mile" means broadband infrastructure that serves as the final leg connecting the
  broadband service provider's network to the end-user customer's premises.
          (7)    "Low latency" means latency that is sufficiently low to allow multiple, simultaneous, real-time
  interactive applications.
          (13)      "Middle mile" means broadband infrastructure that does not connect directly to an end-user
  location, including a community anchor institution, and includes leased dark fiber, interoffice transport,
  backhaul, transport connectivity to data centers, special access transport and other similar services, and wired
  or private wireless broadband infrastructure, including microwave capacity, radio tower access, and other
  services or infrastructure for wireless broadband network, such as towers, fiber, and microwave links.
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68th Legislature 2023                                                                                          SB 531.1
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          (8)(14) "Project" means a proposed deployment of broadband service infrastructure set forth in a
  proposal for funding authorized under this part.
          (9)(15) "Project area" means a shapefile area in an unserved or underserved area where the proposed
  broadband service infrastructure would be built as described in a proposal for funding authorized under this
  part.
          (10)(16) "Shapefile" means a GIS file format for storing, depicting, and analyzing geospatial data
  depicting broadband coverage. It is made up of several component files, such as a main file (.shp), an index file
  (.shx), and a dBASE table (.dbf).
          (11)(17) "Underserved area" means an area where at least 10% of the delivery points have no access
  to broadband service offered with a download speed range of at least 100 megabits per second and an upload
  speed of at least 20 megabits per second or less with low latency a location or area that is not an unserved
  location and that lacks access to broadband service offered with a speed of not less than 100 megabits per
  second for downloads, a speed of not less than 20 megabits per second for uploads, and latency less than or
  equal to 100 milliseconds.
          (18)     "Underserved service project" means a project in which not less than 80% of broadband-
  serviceable locations served by the project are unserved areas or underserved areas.
          (12)(19) "Unserved area" means a project area where at least 10% of delivery points have no access to
  broadband service or have no access to services operating with a download speed of at least 25 megabits per
  second and upload speed of at least 10 megabits per second with low latency broadband-serviceable location
  or area that has no access to broadband service or lacks service offered with a speed of not less than 25
  megabits per second for downloads, a speed of not less than 3 megabits per second for uploads, and a latency
  less than or equal to 100 milliseconds.
          (20)     "Unserved service project" means a project in which not less than 80% of broadband-
  serviceable locations served by the project are unserved locations. An unserved service project may be as
  small as a single unserved location. (Terminates on occurrence of contingency--sec. 13, Ch. 449, L. 2021.)"
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          Section 2. Section 90-1-603, MCA, is amended to read:
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68th Legislature 2023                                                                                             SB 531.1
          "90-1-603.    (Temporary) Establishment of program -- administration and funding. (1) There is a
  communications advisory commission that consists of nine members who must be appointed as follows:
          (a)      six legislators appointed by the president of the senate;
          (b)      the governor's director of the office of budget and program planning;
          (c)      the governor's chief economic development officer; and
          (d)      the governor's director of administration.
          (2)      The commission may provide parameters governing the submission and funding of broadband
  deployment grants as allowed by state and federal law or regulation.
          (1)(3)   The department shall establish the broadband infrastructure deployment program and shall
  administer and act as the fiscal agent for the program and is responsible for receiving and reviewing responsive
  proposals and awarding contracts after review by the communications advisory commission provided for in
  Chapter 401, Laws of 2021, and the governor's approval. A request for proposal may be cancelled or any
  proposal may be rejected in whole or in part when it is in the best interests of the state under the direction of the
  governor's chief economic development officer and with advice from the commission.
          (4)      The department shall develop parameters in accordance with state and federal law and federal
  guidance for the deployment of broadband funds with advice from the governor's chief economic development
  officer and the commission. The department shall make all materials available for public comment at least 14
  days in advance of consideration by the commission.
          (5)      The governor's chief economic development officer, with advice from the commission, shall
  review materials as required by the national telecommunications and information administration prior to
  submission for approval, deployment plans, and grant award recommendations made by the department.
          (6)      The commission may cancel or reject an eligible proposal in whole or in part when it is in the
  best interests of the state.
          (7)      The commission shall submit to the governor grant award recommendations for final approval.
          (8)      Appointed members of the commission must be compensated and receive travel expenses as
  provided in 2-15-124 for each day in attendance at commission meetings or in the performance of any duty or
  service as a commission member.
          (9)      The department of administration shall staff the commission.
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68th Legislature 2023                                                                                           SB 531.1
          (10)     Funding for the commission is allocated from the administrative costs allowed in subsection
  (11).
          (2)(11) Funding for the program established under this section is subject to appropriations from
  general fund revenue, from bonds issued by the department, or federal broadband stimulus funds or other
  federal funds appropriated by congress and allocated to the department for funding of broadband
  communications projects. The department may retain up to 2% of federal funding to support program
  administration as provided for by the national telecommunications and information administration. The
  department shall report administrative expenditures to the commission on a quarterly basis. (Terminates on
  occurrence of contingency--sec. 13, Ch. 449, L. 2021.)"
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          Section 3. Section 90-1-604, MCA, is amended to read:
          "90-1-604.   (Temporary) Eligible projects. (1) An eligible provider proposal may be awarded funding
  under this section, consistent with the national telecommunications and information administration, for a project
  in a project area that, as of the date the proposal is filed, constitutes an unserved or underserved area. Funds
  may not be used to support noncapital expenses, including general operations of an eligible provider,
  nonbroadband services, marketing, or advertising. must be used in accordance with the requirements set forth
  in the Infrastructure Investment and Jobs Act, Public Law 117-58, and as established by the national
  telecommunications and information administration.
          (2)      The project area, including middle-mile or last-mile proposals, to be served by a project funded
  under the program must be described on a shapefile basis.
          (3)      The department may issue requests for proposals or accept proposals from eligible providers
  or solicit proposals for specific eligible projects as designated by the department, which would be submitted as
  proposals pursuant to this part.
          (4)      A broadband project may be recommended to the commission for disqualification on the basis
  that the location surpasses the extremely high cost per location threshold, high-cost area calculation, or for
  other valid reasons subject to approval by the national telecommunications and information administration.
          (5)      If no broadband service technology meeting national telecommunications and information
  administration's technical requirements is deployable for a subsidy of less than the extremely high cost per
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68th Legislature 2023                                                                                            SB 531.1
  location threshold at a given location, the commission is authorized to recommend a proposal involving a less
  costly technology for that location, even if that technology does not provide reliable broadband service but
  otherwise satisfies the program's technical requirements.
          (6)      Middle-mile or last-mile broadband deployment projects may be recommended by the
  commission if the responsive proposal meets the requirements set forth by the national telecommunications
  and information administration.
          (7)      On recommendation by the commission, the department may request proposals from eligible
  providers for unserved service projects or underserved service projects if no acceptable application is submitted
  for funding consideration. (Terminates on occurrence of contingency--sec. 13, Ch. 449, L. 2021.)"
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          Section 4. Section 90-1-605, MCA, is amended to read:
          "90-1-605.   (Temporary) Eligible proposals. (1) Eligible providers who submit responsive proposals:
          (1)(a)   may not receive funds under any other federal or state government grant or loan program
  where government funding supports 100% of the proposed project's capital costs;
          (2)(b)   shall commit to paying a minimum of 20% of the project costs not less than the minimum
  matching amount required by the Infrastructure Investment and Jobs Act, Public Law 117-58, and may not
  provide a minimum matching amount from any funds derived from government grants or subsidies, except for
  federal funds designated by the Infrastructure Investment and Jobs Act, Public Law 117-58 for broadband
  deployment. Priority will be given to the eligible provider who contributes the largest percentage of costs from
  its own funds. Local and tribal governments, in partnership with an eligible provider, may provide funding for
  broadband infrastructure projects consistent with the provisions of this part, except that such funds may not be
  counted toward the minimum 20% matching amount from a provider and as provided by the national
  telecommunications and information administration.
          (3)(c)   may only be a nongovernment entity with demonstrated experience in providing broadband
  service or other communications services to end-user residential or business customers in the state, unless the
  government entity or tribe applies in partnership with an eligible broadband service provider.; and
          (d)      shall to the extent required by state or federal law, comply with any affordability requirements.
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68th Legislature 2023                                                                                               SB 531.1
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          (2)        The department, with approval from the commission, may submit a match waiver to the
  national telecommunications and information administration if a proposal is within an extremely high cost per
  location threshold or high-cost area or if the commission considers additional special circumstances exist and
  that a waiver would serve the public interest and effectuate the purposes of the broadband, equity, access, and
  deployment program. (Terminates on occurrence of contingency--sec. 13, Ch. 449, L. 2021.)"
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          Section 5. Section 90-1-606, MCA, is amended to read:
          "90-1-606.     (Temporary) Proposals. (1) The department shall establish a location prioritized
  timeframe commencing an open process for submission of proposals for funding under the proposal program
  established in this part. The window for submission must be at least 60 days and not more than 90 days for any
  shapefile area designation.
          (2)        (a) An eligible provider shall submit a proposal to the department on a form prescribed by the
  department. A responsive proposal must include the following information:
          (a)(i)     evidence demonstrating the provider's technical, financial, and managerial resources and
  experience to provide broadband service or other commu