Fiscal Note
Fiscal Services Division
HF 586 – Broadband Access, Certifications (LSB1134HV.1)
Staff Contact: Eric Richardson (515.281.6767) eric.richardson@legis.iowa.gov
Fiscal Note Version – As amended and passed by the House
Description
House File 586 relates to the development and utilization of high-speed electronic transmission
mediums. The Bill:
• Includes public utilities, the Iowa Department of Transportation (DOT), the Iowa Economic
Development Authority (IEDA), and other state and local entities that the Office of Chief
Information Officer (OCIO) must consult and coordinate with during administration of the
Fiberoptic Network Conduit Installation Program.
• Establishes the Broadband Forward Certification Program in the IEDA, with the objective of
encouraging political subdivisions to further develop broadband infrastructure and access to
broadband.
• Establishes the Telecommuter Forward Certification Program in the IEDA, with the objective
of encouraging political subdivisions to further develop and promote availability of
telecommuting. Requires a political subdivision to apply to the IEDA for these certifications.
Background
The OCIO is attached to the Department of Administrative Services for accounting and fiscal
services and was created for the purpose of leading, directing, managing, coordinating, and
providing accountability for the information technology resources of State government and for
coordinating statewide broadband availability and access. The OCIO coordinates numerous
programs related to broadband within the State. 2015 Iowa Acts, HF 655, chapter 120, created
the Fiberoptic Network Conduit Installation Program within the OCIO. To date, the OCIO has
not implemented the Fiberoptic Network Conduit Installation Program under Iowa Code section
8B.25. Currently, the OCIO administers the Empower Rural Iowa Broadband Grant Program,
which has awarded $44.3 million in rural broadband grants since 2018. A map of past awards
can be found here.
Assumptions
• The OCIO will not reduce expenditures due to the initiation of the Broadband Forward
Certification Program and Telecommuter Forward Certification Program within the IEDA, as
these programs were not yet funded and implemented by the OCIO.
• The IEDA would need to hire a 0.5 FTE position at the Economic Development Specialist 2
classification level with a start date of October 1, 2021. Estimated salary and benefits for
the 0.5 FTE position would cost $28,000 in FY 2022. Information technology and other
programming costs to the IEDA are uncertain.
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Fiscal Impact
The table below shows the estimated costs of HF 586.
Estimated Costs, House File 586
Agency Category FTE Est. Cost
FY 2022 FY 2023
IEDA Salary and Benefits 0.5 $ 28,000 $ 38,000
Total 0.5 $ 28,000 $ 38,000
IEDA: Funding for the 0.5 FTE position and related costs to administer the Broadband Forward
Certification and Broadband Telecommuter Certifications Programs would likely be appropriated
from the General Fund.
Sources
Legislative Services Agency
Iowa Office of Chief Information Officer
Iowa Economic Development Authority
Iowa Department of Administrative Services
Iowa Department of Transportation
/s/ Holly M. Lyons
March 24, 2021
Doc ID 1217974
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 8B.4