House Bill 25-1080 Reengrossed

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, add 39-3-139 as follows:

• Page 2, Line 339-3-139.  Property tax relief for communication services

• Page 2, Line 4deployment - legislative declaration - definitions. (1)  The general assembly finds and declares that:

• Page 2, Line 5(a)  The intended purpose of the tax relief created in this

• Page 2, Line 6section is to encourage the deployment of communication

• Page 2, Line 7services infrastructure throughout the state, particularly in

• Page 2, Line 8rural, unserved, and underserved areas, and to create

• Page 2, Line 9incentives for investments in new communication services

• Page 2, Line 10infrastructure in addition to incentives already created by other state or federal law;

• Page 2, Line 11(b)  Financial incentives in the form of tax relief are

• Page 2, Line 12necessary to attract investment and free up resources for

• Page 2, Line 13communication services deployment, particularly in areas that

• Page 2, Line 14have been designated as unserved or underserved. The

• Page 2, Line 15incentives can be particularly effective when offered at the

• Page 2, Line 16local level by counties that have the authority to approve the relief based on specific criteria.

• Page 2, Line 17(c)  Providing tax relief stimulates economic development

• Page 2, Line 18in the state and supports the expansion of essential communication services to unserved and underserved areas; and

• Page 2, Line 19(d)  Wireless telecommunications technologies, while

• Page 2, Line 20seemingly independent, critically rely on forms of broadband

• Page 3, Line 1like fiber and landline networks for essential functions, such as

• Page 3, Line 2backhaul, which connects cell towers to the internet backbone

• Page 3, Line 3and which is often performed by nonwireless providers.

• Page 3, Line 4Therefore, the policies that impact broadband infrastructure

• Page 3, Line 5must consider the interconnectedness of all technologies,

• Page 3, Line 6including the dependence of wireless telecommunications on the

• Page 3, Line 7broader ecosystem, to ensure effective and comprehensive wireless and broadband access for all Coloradans.

• Page 3, Line 8(2)  As used in this section, unless the context otherwise requires:

• Page 3, Line 9(a)  "County" means a county or a city and county.

• Page 3, Line 10(b) (I)  "Qualified communication services facility" means

• Page 3, Line 11any facility, infrastructure, equipment, or other real or

• Page 3, Line 12personal property used in the provision of fixed broadband or

• Page 3, Line 13mobile broadband internet access service, as defined by the

• Page 3, Line 14federal communications commission, and includes, but is not limited to:

• Page 3, Line 15(A)  Asynchronous transfer mode switches;

• (B)  Digital subscriber line access multiplexers;

• Page 3, Line 16(C)  Routers;

• (D)  Servers;

• Page 3, Line 17(E)  Multiplexers;

• (F)  Fiber optics; and

• Page 3, Line 18(G)  Any related equipment.

• Page 3, Line 19(II)  "Qualified communication services facility" includes

• Page 3, Line 20any infrastructure or equipment used to provide fixed or mobile

• Page 3, Line 21wireless broadband internet access service, including, but not limited to, macro cell towers and microcell towers.

• Page 4, Line 1(c)  "Underserved area" means a geographic area in which

• Page 4, Line 2broadband internet access service is not available from more

• Page 4, Line 3than one provider at speeds meeting or exceeding the minimum

• Page 4, Line 4broadband benchmarks established by the federal

• Page 4, Line 5communications commission for fixed broadband or mobile

• Page 4, Line 6broadband. A county shall determine whether an area is

• Page 4, Line 7underserved by reference to the federal communications

• Page 4, Line 8commission broadband coverage maps available as of January 1

• Page 4, Line 9in the calendar year in which the county and the taxpayer negotiate an incentive payment or credit.

• Page 4, Line 10(d)  "Unserved area" means a geographic area in which

• Page 4, Line 11broadband internet access service is not available from any

• Page 4, Line 12provider at speeds meeting or exceeding the minimum broadband

• Page 4, Line 13benchmarks established by the federal communications

• Page 4, Line 14commission for fixed broadband and mobile broadband. A county

• Page 4, Line 15shall determine whether an area is unserved by reference to the

• Page 4, Line 16federal communications commission broadband coverage maps

• Page 4, Line 17available as of January 1 in the calendar year in which the

• Page 4, Line 18county and the taxpayer negotiate an incentive payment or credit.

• Page 4, Line 19(3) (a)  Notwithstanding any law to the contrary, a

• Page 4, Line 20county may negotiate an incentive payment or credit with a

• Page 4, Line 21taxpayer that establishes or expands a qualified communication

• Page 4, Line 22services facility in the county if the facility serves an unserved or underserved area.

• Page 4, Line 23(b)  The burden is on a taxpayer seeking tax relief to

• Page 5, Line 1demonstrate, to the satisfaction of the county, that the area to

• Page 5, Line 2be served by the proposed investment is an unserved or

• Page 5, Line 3underserved area. The taxpayer shall rely on the federal

• Page 5, Line 4communications commission broadband coverage maps available

• Page 5, Line 5as of January 1 in the calendar year in which the county and the

• Page 5, Line 6taxpayer negotiate an incentive payment or credit to make the determination.

• Page 5, Line 7(c)  A county shall not negotiate an incentive payment or

• Page 5, Line 8credit that exceeds the amount of the taxes levied by the

• Page 5, Line 9county upon the taxable real property or business personal

• Page 5, Line 10property located at or within the qualified communication services facility for the current property tax year.

• Page 5, Line 11(4)  A county shall exercise the authority granted under

• Page 5, Line 12this section in a nondiscriminatory, nonexclusive, and

• Page 5, Line 13competitively neutral manner. To the extent that a county

• Page 5, Line 14awards an incentive payment or credit under this section, the

• Page 5, Line 15county shall award subsequent incentive payments or credits

• Page 5, Line 16under similar terms and conditions as the initial award and

• Page 5, Line 17based on a proportionate level of investment in a qualified communication services facility in the county.

• Page 5, Line 18(5)  A county that negotiates an agreement pursuant to

• Page 5, Line 19this section shall inform any municipality, special district as

• Page 5, Line 20defined in section 32-1-103, and school district in which the

• Page 5, Line 21qualified communication services facility will be established or expanded of the negotiations with the taxpayer.

• Page 5, Line 22(6)  A county may adjust the amount of its tax levy

• Page 5, Line 23authorized pursuant to section 29-1-301 or pursuant to a county

• Page 6, Line 1home rule charter, whichever is applicable, by an additional

• Page 6, Line 2amount that does not exceed the total amount of annual incentive payments or credits that the county makes.

• Page 6, Line 3SECTION 2.  In Colorado Revised Statutes, add 32-1-1703 as follows:

• Page 6, Line 432-1-1703.  Property tax relief for communication services

• Page 6, Line 5deployment - legislative declaration - definitions. (1)  The general assembly finds and declares that:

• Page 6, Line 6(a)  The intended purpose of the tax relief created in this

• Page 6, Line 7section is to encourage the deployment of communication

• Page 6, Line 8services infrastructure throughout the state, particularly in

• Page 6, Line 9rural, unserved, and underserved areas, and to create

• Page 6, Line 10incentives for investments in new communication services

• Page 6, Line 11infrastructure in addition to incentives already created by other state or federal law;

• Page 6, Line 12(b)  Financial incentives in the form of tax relief are

• Page 6, Line 13necessary to attract investment and free up resources for

• Page 6, Line 14communication services deployment, particularly in areas that

• Page 6, Line 15have been designated as unserved or underserved. The

• Page 6, Line 16incentives can be particularly effective when offered at the

• Page 6, Line 17local level by special districts that have the authority to approve the relief based on specific criteria.

• Page 6, Line 18(c)  Providing tax relief stimulates economic development

• Page 6, Line 19in the state and supports the expansion of essential communication services to unserved areas; and

• Page 6, Line 20(d)  Wireless telecommunications technologies, while

• Page 6, Line 21seemingly independent, critically rely on forms of broadband

• Page 7, Line 1like fiber and landline networks for essential functions, such as

• Page 7, Line 2backhaul, which connects cell towers to the internet backbone

• Page 7, Line 3and which is often performed by nonwireless providers.

• Page 7, Line 4Therefore, the policies that impact broadband infrastructure

• Page 7, Line 5must consider the interconnectedness of all technologies,

• Page 7, Line 6including the dependence of wireless telecommunications on the

• Page 7, Line 7broader ecosystem, to ensure effective and comprehensive wireless and broadband access for all Coloradans.

• Page 7, Line 8(2)  As used in this section, unless the context otherwise requires:

• Page 7, Line 9(a)  "Qualified communication services facility" has the meaning set forth in section 39-3-139 (2)(b).

• Page 7, Line 10(b)  "Underserved" has the meaning set forth in section

• Page 7, Line 1139-3-139 (2)(c) and applies to a special district's determination of

• Page 7, Line 12whether an area is underserved in the same manner described for a county's determination in section 39-3-139 (2)(c).

• Page 7, Line 13(c)  "Unserved area" has the meaning set forth in section

• Page 7, Line 1439-3-139 (2)(d) and applies to a special district's determination of

• Page 7, Line 15whether an area is unserved in the same manner described for a county's determination in section 39-3-139 (2)(d).

• Page 7, Line 16(3) (a)  Notwithstanding any law to the contrary, a special

• Page 7, Line 17district may negotiate an incentive payment or credit with a

• Page 7, Line 18taxpayer that establishes or expands a qualified communication

• Page 7, Line 19services facility in the special district if the facility serves an unserved or underserved area.

• Page 7, Line 20(b)  The burden is on a taxpayer seeking tax relief to

• Page 7, Line 21demonstrate, to the satisfaction of the special district, that the

• Page 8, Line 1area to be served by the proposed investment is an unserved or

• Page 8, Line 2underserved area. The taxpayer shall rely on the federal

• Page 8, Line 3communications commission broadband coverage maps available

• Page 8, Line 4as of January 1 in the calendar year in which the special district

• Page 8, Line 5and the taxpayer negotiate an incentive payment or credit to make the determination.

• Page 8, Line 6(c)  A special district shall not negotiate an incentive

• Page 8, Line 7payment or credit that exceeds the amount of the taxes levied

• Page 8, Line 8by the special district upon the taxable real property or

• Page 8, Line 9business personal property located at or within the qualified

• Page 8, Line 10communication services facility for the current property tax year.

• Page 8, Line 11(4)  A special district shall exercise the authority granted

• Page 8, Line 12under this section in a nondiscriminatory, nonexclusive, and

• Page 8, Line 13competitively neutral manner. To the extent that a special

• Page 8, Line 14district awards an incentive payment or credit under this

• Page 8, Line 15section, the special district shall award subsequent incentive

• Page 8, Line 16payments or credits under similar terms and conditions as the

• Page 8, Line 17initial award and based on a proportionate level of investment

• Page 8, Line 18in a qualified communication services facility in the special district.

• Page 8, Line 19(5)  A special district that negotiates an agreement

• Page 8, Line 20pursuant to this section shall inform any municipality and

• Page 8, Line 21county in which the qualified communication services facility

• Page 8, Line 22will be established or expanded of the negotiations with the taxpayer.

• Page 8, Line 23(6)  A special district may adjust the amount of its tax

• Page 9, Line 1levy authorized pursuant to section 29-1-301 by an additional

• Page 9, Line 2amount that does not exceed the total amount of annual incentive payments or credits that the special district makes.

• Page 9, Line 3SECTION 3.  In Colorado Revised Statutes, add 22-40-111 as follows:

• Page 9, Line 422-40-111.  Property tax relief for communication services

• Page 9, Line 5deployment - legislative declaration - definitions. (1)  The general assembly finds and declares that:

• Page 9, Line 6(a)  The intended purpose of the tax relief created in this

• Page 9, Line 7section is to encourage the deployment of communication

• Page 9, Line 8services infrastructure throughout the state, particularly in

• Page 9, Line 9rural, unserved, and underserved areas, and to create

• Page 9, Line 10incentives for investments in new communication services

• Page 9, Line 11infrastructure in addition to incentives already created by other state or federal law;

• Page 9, Line 12(b)  Financial incentives in the form of tax relief are

• Page 9, Line 13necessary to attract investment and free up resources for

• Page 9, Line 14communication services deployment, particularly in areas that

• Page 9, Line 15have been designated as unserved or underserved. The

• Page 9, Line 16incentives can be particularly effective when offered at the

• Page 9, Line 17local level by school districts that have the authority to approve the relief based on specific criteria.

• Page 9, Line 18(c)  Providing tax relief stimulates economic development

• Page 9, Line 19in the state and supports the expansion of essential communication services to unserved and underserved areas; and

• Page 9, Line 20(d)  Wireless telecommunications technologies, while

• Page 9, Line 21seemingly independent, critically rely on forms of broadband

• Page 10, Line 1like fiber and landline networks for essential functions, such as

• Page 10, Line 2backhaul, which connects cell towers to the internet backbone

• Page 10, Line 3and which is often performed by nonwireless providers.

• Page 10, Line 4Therefore, the policies that impact broadband infrastructure

• Page 10, Line 5must consider the interconnectedness of all technologies,

• Page 10, Line 6including the dependence of wireless telecommunications on the

• Page 10, Line 7broader ecosystem, to ensure effective and comprehensive wireless and broadband access for all Coloradans.

• Page 10, Line 8(2)  As used in this section, unless the context otherwise requires:

• Page 10, Line 9(a)  "Qualified communication services facility" has the meaning set forth in section 39-3-139 (2)(b).

• Page 10, Line 10(b)  "Underserved" has the meaning set forth in section

• Page 10, Line 1139-3-139 (2)(c) and applies to a school district's determination of

• Page 10, Line 12whether an area is underserved in the same manner described for a county's determination in section 39-3-139 (2)(c).

• Page 10, Line 13(c)  "Unserved area" has the meaning set forth in section

• Page 10, Line 1439-3-139 (2)(d) and applies to a school district's determination of

• Page 10, Line 15whether an area is unserved in the same manner described for a county's determination in section 39-3-139 (2)(d).

• Page 10, Line 16(3) (a)  Notwithstanding any law to the contrary, the

• Page 10, Line 17board of education of a school district may negotiate an

• Page 10, Line 18incentive payment or credit with a taxpayer that establishes or

• Page 10, Line 19expands a qualified communication services facility in the

• Page 10, Line 20school district if the facility serves an unserved or underserved area.

• Page 10, Line 21(b)  The burden is on a taxpayer seeking tax relief to

• Page 11, Line 1demonstrate, to the satisfaction of the board of education of

• Page 11, Line 2the school district, that the area to be served by the proposed

• Page 11, Line 3investment is an unserved or underserved area. The taxpayer

• Page 11, Line 4shall rely on the federal communications commission

• Page 11, Line 5broadband coverage maps available as of January 1 in the

• Page 11, Line 6calendar year in which the school district and the taxpayer

• Page 11, Line 7negotiate an incentive payment or credit to make the determination.

• Page 11, Line 8(c)  The board of education of a school district shall not

• Page 11, Line 9negotiate an incentive payment or credit that exceeds the

• Page 11, Line 10amount of the taxes levied by the school district upon the

• Page 11, Line 11taxable real property or business personal property located at

• Page 11, Line 12or within the qualified communication services facility for the current property tax year.

• Page 11, Line 13(4)  The board of education of a school district shall

• Page 11, Line 14exercise the authority granted under this section in a

• Page 11, Line 15nondiscriminatory, nonexclusive, and competitively neutral

• Page 11, Line 16manner. To the extent that a school district awards an

• Page 11, Line 17incentive payment or credit under this section, the school

• Page 11, Line 18district shall award subsequent incentive payments or credits

• Page 11, Line 19under similar terms and conditions as the initial award and

• Page 11, Line 20based on a proportionate level of investment in a qualified communication services facility in the school district.

• Page 11, Line 21(5)  The board of education of a school district that

• Page 11, Line 22negotiates an agreement pursuant to this section shall inform

• Page 11, Line 23any municipality and county in which the qualified

• Page 11, Line 24communication services facility will be established or expanded of the negotiations with the taxpayer.

• Page 12, Line 1SECTION 4.  In Colorado Revised Statutes, 39-26-129, amend (1) as follows:

• Page 12, Line 239-26-129.  Refund for property used in rural broadband

• Page 12, Line 3service - legislative declaration - tax preference performance

• Page 12, Line 4statement - definitions - repeal. (1) (a)  The general assembly finds and

• Page 12, Line 5declares that: the intended purpose of the tax refund created in this

• Page 12, Line 6section is to encourage broadband providers to deploy broadband

• Page 12, Line 7infrastructure in rural areas of the state and to create incentives for

• Page 12, Line 8investment in broadband infrastructure in addition to the incentives already created by other state or federal law.

• Page 12, Line 9(I)  Expanding access to wireless and other communication

• Page 12, Line 10services is critical to the economic and social well-being of

• Page 12, Line 11Colorado's residents and businesses. Reliable communications

• Page 12, Line 12infrastructure supports education, health care, workforce development, and economic competitiveness.

• Page 12, Line 13(II)  Colorado receives ongoing federal funding of more

• Page 12, Line 14than one billion dollars to facilitate broadband deployment to unserved and underserved households in the state;

• Page 12, Line 15(III)  Requiring communications providers to pay sales and

• Page 12, Line 16use taxes on federal-funded and state-funded deployment is

• Page 12, Line 17counterproductive, because it reduces the efficacy and impact

• Page 12, Line 18of these grants by effectively taxing money intended for

• Page 12, Line 19communications expansion and creating a structural inefficiency;

• Page 12, Line 20(IV)  The purpose of this section is to update and

• Page 12, Line 21streamline the administration of the existing sales tax rebate

• Page 13, Line 1for broadband infrastructure enacted in 2014. This section

• Page 13, Line 2ensures that tax relief is more efficiently delivered, more

• Page 13, Line 3effectively targets areas of Colorado in need of communication

• Page 13, Line 4services, and eases the administrative burden on

• Page 13, Line 5communications providers that apply for the existing rebate program.

• Page 13, Line 6(V)  Wireless telecommunications technologies, while

• Page 13, Line 7seemingly independent, critically rely on forms of broadband

• Page 13, Line 8like fiber and landline networks for essential functions, such as

• Page 13, Line 9backhaul, which connects cell towers to the internet backbone

• Page 13, Line 10and which is often performed by nonwireless providers.

• Page 13, Line 11Therefore, the policies that impact broadband infrastructure

• Page 13, Line 12must consider the interconnectedness of all technologies,

• Page 13, Line 13including the dependence of wireless telecommunications on the

• Page 13, Line 14broader ecosystem, to ensure effective and comprehensive wireless and broadband access for all Coloradans.

• Page 13, Line 15(b)  Pursuant to section 39-21-304, the general assembly

• Page 13, Line 16adopts the following tax preference performance statement for the exemption created in this section:

• Page 13, Line 17(I)  The sales and use tax exemption established in this section is intended to:

• Page 13, Line 18(A)  Eliminate the structural inefficiency associated with taxing broadband deployment grants;

• Page 13, Line 19(B)  Streamline the administration of tax relief for providers; and

• Page 13, Line 20(C)  Incentivize private sector investment in

• Page 13, Line 21infrastructure; and

• Page 14, Line 1(II)  The effectiveness of this tax expenditure shall be measured by:

• Page 14, Line 2(A)  The total amount of private and public investment in

• Page 14, Line 3broadband infrastructure within Colorado, including infrastructure financed in part by state and federal grants;

• Page 14, Line 4(B)  The extent to which broadband providers utilize the

• Page 14, Line 5exemption to increase the efficiency of broadband deployment and to reduce project costs; and

• Page 14, Line 6(C)  The amount by which administrative burdens on

• Page 14, Line 7broadband providers are reduced, including the number of

• Page 14, Line 8entities utilizing the sales tax refund compared to those previously applying for the sales tax refund.

• Page 14, Line 9SECTION 5.  Act subject to petition - effective date. This act

• Page 14, Line 10takes effect at 12:01 a.m. on the day following the expiration of the

• Page 14, Line 11ninety-day period after final adjournment of the general assembly; except

• Page 14, Line 12that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 14, Line 13of the state constitution against this act or an item, section, or part of this

• Page 14, Line 14act within such period, then the act, item, section, or part will not take

• Page 14, Line 15effect unless approved by the people at the general election to be held in

• Page 14, Line 16November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.