House Bill 25-1080 Introduced

A Bill for an Act

• Page 1, Line 101Concerning measures to incentivize the deployment of

• Page 1, Line 102wireless telephone infrastructure in the state.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)

Cell Phone Connectivity Interim Study Committee. The bill requires the Colorado broadband office in the governor's office (broadband office) to implement a wireless telephone infrastructure deployment grant program (grant program) similar to the broadband deployment grant program in the broadband office. The broadband office may allocate high cost support mechanism (HCSM) money for the grant program to help finance the deployment of wireless telephone infrastructure in unserved and underserved areas of the state.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 24-37.5-903, amend (5) as follows:

• Page 2, Line 324-37.5-903.  Colorado broadband office - creation -

• Page 2, Line 4responsibilities - gifts, grants, or donations. (5)  In addition to the

• Page 2, Line 5powers and functions set forth in subsections (3) and (4) of this section,

• Page 2, Line 6the broadband office shall implement the digital inclusion grant program,

• Page 2, Line 7the broadband deployment grant program, and the wireless telephone infrastructure deployment grant program.

• Page 2, Line 8SECTION 2.  In Colorado Revised Statutes, 24-37.5-905, amend (2)(b)(I) and (3)(a) as follows:

• Page 2, Line 924-37.5-905.  Broadband deployment - grant program - high

• Page 2, Line 10cost support mechanism money - broadband office administrative

• Page 2, Line 11fund - creation - criteria - rules - reports - definitions - repeal.

• Page 2, Line 12(2) (b) (I)  The broadband office may allocate money from the HCSM for

• Page 2, Line 13the deployment of broadband in unserved and underserved areas of the

• Page 2, Line 14state pursuant to this section and section 40-15-208 through the use of the

• Page 2, Line 15HCSM surcharge and surcharge rate in effect on January 1, 2018. In

• Page 2, Line 16determining the definition of unserved and underserved areas, the

• Page 2, Line 17standards used by the broadband office must be shall use standards

• Page 2, Line 18consistent with broadband benchmark standards and any revisions to the

• Page 2, Line 19standards, as determined by the federal communications commission and

• Page 2, Line 20the national telecommunications and information administration in the

• Page 2, Line 21United States department of commerce. Pursuant to sections 40-15-207

• Page 2, Line 22and 40-15-208, the commission shall determine the funds available for

• Page 3, Line 1broadband deployment from the HCSM money. The HCSM third-party

• Page 3, Line 2contractor shall maintain and hold the money available for broadband

• Page 3, Line 3deployment in a separate account from the money used for basic voice

• Page 3, Line 4service wireless telephone infrastructure deployment pursuant

• Page 3, Line 5to section 24-37.5-906. Money held for broadband deployment must not

• Page 3, Line 6be disbursed for basic voice service wireless telephone

• Page 3, Line 7infrastructure deployment, and money held for basic voice service

• Page 3, Line 8wireless telephone infrastructure deployment must not be disbursed for broadband deployment.

• Page 3, Line 9(3) (a)  Up to five percent of the money allocated from the HCSM

• Page 3, Line 10for broadband deployment may be used to cover the broadband office's

• Page 3, Line 11direct and indirect costs to administer the grant program, including to

• Page 3, Line 12cover staffing costs for the grant program. Money that is allocated for

• Page 3, Line 13such purposes is credited to the broadband office administrative fund,

• Page 3, Line 14which fund is created in the state treasury. The fund consists of all money

• Page 3, Line 15allocated from the HCSM for the broadband office's administration of the

• Page 3, Line 16grant program and of the wireless telephone infrastructure

• Page 3, Line 17deployment grant program created in section 24-37.5-906 (2) and

• Page 3, Line 18all money that the general assembly may appropriate or transfer to the

• Page 3, Line 19fund. The money in the fund is continuously appropriated for the

• Page 3, Line 20purposes set forth in this section and section 24-37.5-906. All interest

• Page 3, Line 21earned from the investment of money in the fund is credited to the fund.

• Page 3, Line 22All money not expended at the end of a state fiscal year remains in the fund and does not revert to the general fund or any other fund.

• Page 3, Line 23SECTION 3.  In Colorado Revised Statutes, add 24-37.5-906 as follows:

• Page 3, Line 2424-37.5-906.  Wireless telephone infrastructure deployment -

• Page 4, Line 1grant program - high cost support mechanism money - broadband

• Page 4, Line 2office administrative fund - creation - criteria - reports - definitions.

• Page 4, Line 3(1)  As used in this section, unless the context otherwise requires:

• Page 4, Line 4(a)  "Commission" means the public utilities commission created in section 40-2-101.

• Page 4, Line 5(b)  "Grant program" means the wireless telephone

• Page 4, Line 6infrastructure deployment grant program created in subsection (2) of this section.

• Page 4, Line 7(c)  "HCSM" means the high cost support mechanism created pursuant to section 40-15-208.

• Page 4, Line 8(d)  "Wireless telephone" has the meaning set forth in section 6-1-903 (11).

• Page 4, Line 9(2) (a)  The broadband office shall administer a wireless

• Page 4, Line 10telephone infrastructure deployment grant program in

• Page 4, Line 11accordance with this section. The broadband office shall direct

• Page 4, Line 12the commission to authorize a third-party contractor of the

• Page 4, Line 13HCSM to disburse money from the HCSM for wireless telephone

• Page 4, Line 14infrastructure deployment grants approved by the broadband

• Page 4, Line 15office. The commission shall authorize disbursements of money

• Page 4, Line 16from the HCSM for wireless telephone infrastructure deployment grants only as directed by the broadband office.

• Page 4, Line 17(b) (I)  The broadband office may allocate money from the

• Page 4, Line 18HCSM for the deployment of wireless telephone infrastructure in unserved and underserved areas of the state.

• Page 4, Line 19(II)  The broadband office shall determine and map the

• Page 4, Line 20areas of the state that qualify as unserved and underserved for

• Page 5, Line 1wireless telephone infrastructure deployment. In determining

• Page 5, Line 2the areas that qualify, the broadband office shall use

• Page 5, Line 3standards consistent with any standards developed by the

• Page 5, Line 4federal communications commission and the national

• Page 5, Line 5telecommunications and information administration in the

• Page 5, Line 6United States department of commerce. The broadband office

• Page 5, Line 7shall post a map of the unserved and underserved areas of the

• Page 5, Line 8state on its public website and periodically update the map as necessary.

• Page 5, Line 9(III)  Pursuant to section 40-15-208, the commission shall

• Page 5, Line 10determine the funds available for wireless telephone

• Page 5, Line 11infrastructure deployment from the HCSM money. The HCSM

• Page 5, Line 12third-party contractor shall maintain and hold the money

• Page 5, Line 13available for wireless telephone infrastructure deployment in

• Page 5, Line 14a separate account from the money used for broadband

• Page 5, Line 15deployment. Money held for wireless telephone infrastructure

• Page 5, Line 16deployment must not be disbursed for broadband deployment,

• Page 5, Line 17and money held for broadband deployment must not be disbursed for wireless telephone infrastructure deployment.

• Page 5, Line 18(3)  Up to five percent of the money allocated from the

• Page 5, Line 19HCSM for wireless telephone infrastructure deployment may be

• Page 5, Line 20used to cover the broadband office's direct and indirect costs to

• Page 5, Line 21administer the grant program, including to cover staffing costs

• Page 5, Line 22for the grant program. Money that is allocated for such

• Page 5, Line 23purposes is credited to the broadband office administrative fund created in section 24-37.5-905 (3)(a).

• Page 5, Line 24(4)  On or before December 31, 2025, the broadband office

• Page 6, Line 1shall establish grant program criteria for deployment projects for which grant money is awarded, including criteria related to:

• Page 6, Line 2(a)  Qualifying infrastructure;

• (b)  Cybersecurity requirements, if any;

• Page 6, Line 3(c)  Matching funding requirements, if any;

• Page 6, Line 4(d)  Generally accepted industry reliability and performance standards;

• Page 6, Line 5(e)  Timelines for completion of a project;

• (f)  Reasonable cost requirements for a project;

• Page 6, Line 6(g)  Compliance standards; and

• (h)  Reporting and accountability requirements.

• Page 6, Line 7(5)  In establishing the grant program, the broadband office shall:

• Page 6, Line 8(a)  Solicit input from the general public and various

• Page 6, Line 9stakeholder groups, including at least the following stakeholder groups:

• Page 6, Line 10(I)  Industry associations;

• (II)  Local governments;

• Page 6, Line 11(III)  Tribal governments;

• (IV)  Other state agencies;

• Page 6, Line 12(V)  Relevant federal agencies;

• (VI)  Wireless telephone consumers; and

• Page 6, Line 13(VII)  Other key stakeholder groups that the broadband office identifies; and

• Page 6, Line 14(b)  Establish a formal appeals process for grant

• Page 6, Line 15applications that are not awarded. The sole remedy for an

• Page 6, Line 16applicant that prevails on appeal is the financing of the

• Page 7, Line 1applicant's proposed project in the current or next fiscal year, subject to the availability of money in the HCSM.

• Page 7, Line 2(6)  The broadband office may contract with a third party

• Page 7, Line 3to perform administrative functions related to administering the grant program.

• Page 7, Line 4(7) (a)  On or before January 1, 2026, and on or before

• Page 7, Line 5January 1 of each year thereafter, the broadband office shall

• Page 7, Line 6submit an annual report to the joint budget committee and the

• Page 7, Line 7joint technology committee, or their successor committees, summarizing for the previous calendar year:

• Page 7, Line 8(I)  The broadband office's grant program planning and implementation activities; and

• Page 7, Line 9(II)  HCSM expenditures made for wireless telephone infrastructure deployment.

• Page 7, Line 10(b)  Notwithstanding section 24-1-136 (11)(a)(I), the

• Page 7, Line 11reporting requirement set forth in subsection (7)(a) of this section continues indefinitely.

• Page 7, Line 12SECTION 4.  In Colorado Revised Statutes, 40-15-102, amend (9.5) and (32) as follows:

• Page 7, Line 1340-15-102.  Definitions. As used in this article 15, unless the context otherwise requires:

• Page 7, Line 14(9.5)  "Incumbent provider" means:

• Page 7, Line 15(a)  With respect to broadband, a provider that offers

• Page 7, Line 16broadband internet service in an unserved area but that is not providing a broadband network in that area; or

• Page 7, Line 17(b)  With respect to wireless telephone service, a provider

• Page 7, Line 18that offers wireless telephone service in an unserved area but

• Page 8, Line 1that does not operate cell phone towers and other wireless telephone infrastructure in that area.

• Page 8, Line 2(32) (a)  "Unserved area", with respect to broadband, means an area of the state that:

• Page 8, Line 3(I)  Lies outside of municipal boundaries or is a city with a population of fewer than seven thousand five hundred inhabitants; and

• Page 8, Line 4(II)  Consists of households that lack access to at least one

• Page 8, Line 5provider of a broadband network that uses satellite technology and at least one provider of a broadband network that uses nonsatellite technology.

• Page 8, Line 6(b)  "Unserved area", with respect to broadband, also means

• Page 8, Line 7any portion of a state or interstate highway corridor that lacks access to a provider of a broadband network.

• Page 8, Line 8(c)  "Unserved area", with respect to wireless telephone

• Page 8, Line 9service, means an area of the state that lacks cell phone towers

• Page 8, Line 10and other wireless telephone infrastructure sufficient to provide service.

• Page 8, Line 11SECTION 5.  In Colorado Revised Statutes, 40-15-208, amend

• Page 8, Line 12(2)(a)(I), (2)(a)(IV)(E), (2)(a)(V), and (3)(a); repeal (2)(a)(III) and (3)(c); and add (2)(a)(IV.5) as follows:

• Page 8, Line 1340-15-208.  High cost support mechanism - Colorado high cost

• Page 8, Line 14administration fund - creation - purpose - operation - rules - report.

• Page 8, Line 15(2) (a) (I)  The commission is hereby authorized to establish a mechanism

• Page 8, Line 16for the support of universal service, also referred to in this section as the

• Page 8, Line 17"high cost support mechanism", which must operate in accordance with

• Page 8, Line 18rules adopted by the commission. The primary purpose of the high cost

• Page 8, Line 19support mechanism is to provide financial assistance as a support

• Page 8, Line 20mechanism to:

• Page 9, Line 1(A)  Help make basic local exchange service affordable and allow

• Page 9, Line 2for reimbursement to providers, as specified in subsections (2)(a)(IV) and (4) of this section; and

• Page 9, Line 3(B)  Provide access to broadband service in unserved and

• Page 9, Line 4underserved areas pursuant to this section and section 24-37.5-905; only. and

• Page 9, Line 5(C)  Provide access to wireless telephone service in

• Page 9, Line 6unserved and underserved areas of the state pursuant to this section and section 24-37.5-906.

• Page 9, Line 7(III)  The commission shall maintain the rate of the high cost

• Page 9, Line 8support mechanism surcharge at the surcharge rate established as of

• Page 9, Line 9January 1, 2018; except that, on and after July 1, 2023, the commission

• Page 9, Line 10may reduce the surcharge rate to ensure that the amount of money

• Page 9, Line 11collected does not exceed twenty-five million dollars in calendar year 2024.

• Page 9, Line 12(IV)  The commission shall allocate to the high cost support

• Page 9, Line 13mechanism account dedicated to broadband deployment, on a quarterly

• Page 9, Line 14basis and by the end of the month following the previous quarter, the

• Page 9, Line 15following percentages of the total quarterly amount of high cost support

• Page 9, Line 16mechanism money collected, minus administrative costs and distributions required under subsection (4) of this section:

• Page 9, Line 17(E)  For each quarter in 2023 and 2024 and for each quarter in

• Page 9, Line 18each subsequent year the first, second, and third quarters in 2025, one hundred percent.

• Page 9, Line 19(IV.5)  Commencing in the last quarter of 2025, and then on

• Page 9, Line 20a quarterly basis and by the end of the month following the

• Page 9, Line 21previous quarter, the commission shall allocate:

• Page 10, Line 1(A)  To the high cost support mechanism account dedicated

• Page 10, Line 2to broadband deployment, up to one hundred percent of the high

• Page 10, Line 3cost support mechanism money collected, minus administrative

• Page 10, Line 4costs and distributions required under subsection (4) of this section; and

• Page 10, Line 5(B)  To the high cost support mechanism account dedicated

• Page 10, Line 6to wireless telephone service deployment, the amount of high

• Page 10, Line 7cost support mechanism money collected that the Colorado

• Page 10, Line 8broadband office, created in section 24-37.5-903 (1), directs for

• Page 10, Line 9wireless telephone infrastructure deployment grants pursuant

• Page 10, Line 10to section 24-37.5-906 (2)(a), minus administrative costs and distributions required under subsection (4) of this section.

• Page 10, Line 11(V)  The nonrural incumbent local exchange carrier will receive,

• Page 10, Line 12on a quarterly basis and by the end of the month following the previous

• Page 10, Line 13quarter, the balance of the remaining quarterly high cost support

• Page 10, Line 14mechanism collections after the distributions required by subsections (2)(a)(IV), (2)(a)(IV.5), and (4) of this section have been made.

• Page 10, Line 15(3) (a)  There is hereby created in the state treasury the Colorado

• Page 10, Line 16high cost administration fund, referred to in this section as the "fund",

• Page 10, Line 17which shall be used to reimburse the commission and its contractors for

• Page 10, Line 18reasonable expenses incurred in the administration of the high cost

• Page 10, Line 19support mechanism, including administrative costs incurred in association

• Page 10, Line 20with broadband service and wireless telecommunications service,

• Page 10, Line 21as determined by rules of the commission. The general assembly shall

• Page 10, Line 22appropriate annually the money in the fund that is to be used for the direct

• Page 10, Line 23and indirect administrative costs incurred by the commission and its

• Page 10, Line 24contractors. At the end of any fiscal year, all unexpended and

• Page 11, Line 1unencumbered money in the fund remains in the fund and shall not be

• Page 11, Line 2credited or transferred to the general fund or any other fund. Only the

• Page 11, Line 3money in the high cost support mechanism that is necessary for

• Page 11, Line 4administering the high cost support mechanism shall be transmitted to the

• Page 11, Line 5state treasurer, who shall credit the same to the fund. All interest derived

• Page 11, Line 6from the deposit and investment of money in the fund remains in the fund and does not revert to the general fund.

• Page 11, Line 7(c)  Notwithstanding any provision of paragraph (a) of this

• Page 11, Line 8subsection (3) to the contrary, on July 31, 2009, the state treasurer shall

• Page 11, Line 9deduct from the fund an amount equal to the amount transferred to the

• Page 11, Line 10fund pursuant to Senate Bill 09-272, enacted in 2009, and transfer such amount to the general fund.

• Page 11, Line 11SECTION 6.  Act subject to petition - effective date -

• Page 11, Line 12applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 11, Line 13the expiration of the ninety-day period after final adjournment of the

• Page 11, Line 14general assembly; except that, if a referendum petition is filed pursuant

• Page 11, Line 15to section 1 (3) of article V of the state constitution against this act or an

• Page 11, Line 16item, section, or part of this act within such period, then the act, item,

• Page 11, Line 17section, or part will not take effect unless approved by the people at the

• Page 11, Line 18general election to be held in November 2026 and, in such case, will take

• Page 11, Line 19effect on the date of the official declaration of the vote thereon by the governor.

• Page 11, Line 20(2)  This act applies to high cost support mechanism distributions made on or after the applicable effective date of this act.