Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0562.02 Jennifer Berman x3286
HOUSE BILL 24-1336
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
C
ONCERNING THE DEPLOYMENT OF BROADBAND THROUGH GRANTS101
ADMINISTERED BY THE COLORADO BROADBAND OFFICE .102
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/
.)
Sunset Process - House Transportation, Housing, and Local
Government Committee. The "Connect Colorado to Enhance Economic
Development, Telehealth, Education, and Safety Act" (act), which created
the broadband deployment board (board) in the governor's office of
information technology and tasked the board with awarding grant money
from the high cost support mechanism (HCSM) for broadband
HOUSE SPONSORSHIP
Parenti,
SENATE SPONSORSHIP
Rodriguez,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. deployment in unserved areas of the state, is scheduled for repeal on
September 1, 2024. The department of regulatory agencies, as part of its
sunset process, reviewed the act and board and recommended that they be
extended for 5 years. The bill, instead, repeals the act and board, transfers
the function of awarding grant money from the HCSM to the Colorado
broadband office (office), and authorizes the office to award grants for
unserved and underserved areas of the state.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2
(25)(a)(VI) as follows:3
24-34-104. General assembly review of regulatory agencies4
and functions for repeal, continuation, or reestablishment - legislative5
declaration - repeal. (25) (a) The following agencies, functions, or both,6
are scheduled for repeal on September 1, 2024:7
(VI) The functions of the broadband deployment board created in
8
section 24-37.5-119;9
SECTION 2. In Colorado Revised Statutes, repeal 24-37.5-119.10
SECTION 3. In Colorado Revised Statutes, add 24-37.5-905 as11
follows:12
24-37.5-905. Broadband deployment - grant program - high13
cost support mechanism money - broadband office administrative14
fund - creation - criteria - rules - reports - definitions. (1) A
S USED IN15
THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :16
(a) "B
ROADBAND" HAS THE MEANING SET FORTH IN SECTION17
40-15-102.18
(b) "B
ROADBAND NETWORK " HAS THE MEANING SET FORTH IN19
SECTION 40-15-102.20
(c) "C
OMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION21
CREATED IN SECTION 40-2-101.22
HB24-1336-2- (d) "HCSM" MEANS THE HIGH COST SUPPORT MECHANISM1
CREATED PURSUANT TO SECTION 40-15-208.2
(e) "M
IDDLE MILE INFRASTRUCTURE " HAS THE MEANING SET3
FORTH IN 47 U.S.C. SEC. 1741 (a)(9), AS AMENDED.4
(2) (a) T
HE BROADBAND OFFICE SHALL ADMINISTER A BROADBAND5
DEPLOYMENT GRANT PROGRAM IN ACCORDANCE WITH THIS SECTION . THE6
BROADBAND OFFICE SHALL DIRECT THE COMMISSION TO AUTHORIZE A7
THIRD-PARTY CONTRACTOR OF THE HCSM TO DISBURSE MONEY FROM THE8
HCSM
FOR BROADBAND DEPLOYMENT GRANTS APPROVED BY THE9
BROADBAND OFFICE. THE COMMISSION SHALL AUTHORIZE DISBURSEMENTS10
OF MONEY FROM THE HCSM FOR BROADBAND DEPLOYMENT GRANTS ONLY11
AS DIRECTED BY THE BROADBAND OFFICE .12
(b) (I) T
HE BROADBAND OFFICE MAY ALLOCATE MONEY FROM THE13
HCSM
FOR THE DEPLOYMENT OF BROADBAND IN UNSERVED AND14
UNDERSERVED AREAS OF THE STATE PURSUANT TO THIS SECTION AND15
SECTION 40-15-208 THROUGH THE USE OF THE HCSM SURCHARGE AND16
SURCHARGE RATE IN EFFECT ON JANUARY 1, 2018. PURSUANT TO17
SECTIONS 40-15-207 AND 40-15-208, THE COMMISSION SHALL DETERMINE18
THE FUNDS AVAILABLE FOR BROADBAND DEPLOYMENT FROM THE HCSM19
MONEY. THE HCSM THIRD-PARTY CONTRACTOR SHALL MAINTAIN AND20
HOLD THE MONEY AVAILABLE FOR BROADBAND DEPLOYMENT IN A21
SEPARATE ACCOUNT FROM THE MONEY USED FOR BASIC VOICE SERVICE .22
M
ONEY HELD FOR BROADBAND DEPLOYMENT MUST NOT BE DISBURSED23
FOR BASIC VOICE SERVICE, AND MONEY HELD FOR BASIC VOICE SERVICE24
MUST NOT BE DISBURSED FOR BROADBAND DEPLOYMENT .25
(II) T
O MAXIMIZE THE EFFICACY OF THE GRANT PROGRAM , THE26
BROADBAND OFFICE MAY USE HCSM MONEY ALLOCATED FOR27
HB24-1336
-3- BROADBAND DEPLOYMENT PURSUANT TO THIS SUBSECTION (2) AND1
SECTION 40-15-208 IN ORDER TO CONDUCT, OR CAUSE TO BE CONDUCTED,2
STUDIES TO ASSESS BROADBAND NEEDS IN THE STATE .3
(3) U
P TO FIVE PERCENT OF THE MONEY ALLOCATED FROM THE4
HCSM
FOR BROADBAND DEPLOYMENT MAY BE USED TO COVER THE5
BROADBAND OFFICE'S DIRECT AND INDIRECT COSTS TO ADMINISTER THE6
GRANT PROGRAM, INCLUDING TO COVER STAFFING COSTS FOR THE GRANT7
PROGRAM. MONEY THAT IS ALLOCATED FOR SUCH PURPOSES IS CREDITED8
TO THE BROADBAND OFFICE ADMINISTRATIVE FUND , WHICH FUND IS9
CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF ALL MONEY10
ALLOCATED FROM THE HCSM FOR THE BROADBAND OFFICE 'S11
ADMINISTRATION OF THE GRANT PROGRAM AND ALL MONEY THAT THE12
GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND . THE13
MONEY IN THE FUND IS SUBJECT TO ANNUAL APPROPRIATION BY THE14
GENERAL ASSEMBLY FOR THE PURPOSES SET FORTH IN THIS SECTION . ALL15
INTEREST EARNED FROM THE INVESTMENT OF MONEY IN THE FUND IS16
CREDITED TO THE FUND. ALL MONEY NOT EXPENDED AT THE END OF A17
STATE FISCAL YEAR REMAINS IN THE FUND AND DOES NOT REVERT TO THE18
GENERAL FUND OR ANY OTHER FUND .19
(4) O
N OR BEFORE DECEMBER 31, 2024, THE BROADBAND OFFICE20
SHALL ESTABLISH GRANT PROGRAM CRITERIA AND GUIDELINES FOR21
AWARDING HCSM MONEY FOR NEW PROJECTS TO EXPAND BROADBAND22
ACCESS AND TO INCREASE BR OADBAND AFFORDABILITY IN THE STATE ,23
WHICH CRITERIA AND GUIDELINES MUST INCLUDE :24
(a) T
HE ESTABLISHMENT OF A TWO-TIERED GRANT PROGRAM THAT25
PRIORITIZES FUNDING AS FOLLOWS:26
(I) U
P TO SIXTY PERCENT OF AVAILABLE GRANT MONEY MUST BE27
HB24-1336
-4- USED TO FINANCE TIER ONE PROJECTS FOR MIDDLE MILE INFRASTRUCTURE ;1
AND2
(II) U
P TO FORTY PERCENT OF AVAILABLE GRANT MONEY MUST BE3
USED TO FINANCE TIER TWO PROJECTS AND OTHERWISE UNDERFUNDED4
BROADBAND NEEDS, INCLUDING, BUT NOT LIMITED TO:5
(A) P
OLE REPLACEMENTS AND ATTACHMENTS , LINE EXTENSIONS,6
LONG DROPS, NETWORK UPGRADES THAT STRENGTHEN CYBERSECURITY ,7
AND NETWORK INFRASTRUCTURE , INCLUDING WIRELINE AND WIRELESS8
FACILITIES SUCH AS TOWERS AND SATELLITE INFRASTRUCTURE ; AND9
(B) D
IGITAL EQUITY INITIATIVES TO HELP CLOSE THE DIGITAL10
DIVIDE IN THE STATE, INCLUDING INITIATIVES FOR BASIC INTERNET11
ACCESS, COMPUTER AND DEVICE DISTRIBUTION , DIGITAL LITERACY12
TRAINING, AND BROADBAND WORKFORCE DEVELOPMENT TRAINING ;13
(b) T
HE FOLLOWING MINIMUM REQUIREMENTS FOR PROJECTS THAT14
ARE AWARDED GRANT MONEY :15
(I) S
UPPORT FOR BROADBAND DEPLOYMENT IN UNSERVED OR16
UNDERSERVED AREAS;17
(II) S
PEED REQUIREMENTS;18
(III) M
ATCHING FUNDING REQUIREMENTS ;19
(IV) A
PPLICANT ELIGIBILITY REQUIREMENTS;20
(V) G
ENERALLY ACCEPTED INDUSTRY RELIABILITY AND21
PERFORMANCE STANDARDS ;22
(VI) T
IMELINES FOR COMPLETION OF A PROJECT;23
(VII) R
EASONABLE COST REQUIREMENTS FOR A PROJECT ;24
(VIII) C
OMPLIANCE STANDARDS ; AND25
(IX) R
EPORTING AND ACCOUNTABILITY REQUIREMENTS ; AND26
(c) T
HE FOLLOWING CRITERIA FOR REVIEWING AND PRIORITIZING27
HB24-1336
-5- APPLICANTS' PROPOSED PROJECTS:1
(I) T
HE PURPOSE AND PROJECT IMPACTS;2
(II) T
HE GEOGRAPHIC DISTRIBUTION OF BROADBAND DEPLOYMENT ;3
(III) B
ROADBAND NETWORK REDUNDANCY , DIVERSITY, AND4
LATENCY;5
(IV) B
ROADBAND NETWORK SPEEDS ;6
(V) T
HE AMOUNT OF MATCHING MONEY AVAILABLE ;7
(VI) T
HE COST-EFFECTIVENESS OF THE PROJECT;8
(VII) T
HE AMOUNT OF SUPPORT THE PROJECT WOULD PROVIDE FOR9
LOW-INCOME HOUSEHOLDS; AND10
(VIII) T
HE EXTENT TO WHICH THE PROJECT WOULD SUPPORT11
CRITICALLY UNSERVED AREAS.12
(5) I
N ESTABLISHING THE GRANT PROGRAM , THE BROADBAND13
OFFICE SHALL:14
(a) S
OLICIT INPUT FROM THE GENERAL PUBLIC AND VARIOUS15
STAKEHOLDERS, INCLUDING AT LEAST THE FOLLOWING GROUPS OF16
STAKEHOLDERS:17
(I) I
NDUSTRY ASSOCIATIONS;18
(II) L
OCAL GOVERNMENTS ;19
(III) T
RIBAL GOVERNMENTS;20
(IV) O
THER STATE AGENCIES;21
(V) F
EDERAL AGENCIES;22
(VI) B
ROADBAND CONSUMERS ; AND23
(VII) O
THER KEY STAKEHOLDERS THAT THE BROADBAND OFFICE24
IDENTIFIES;25
(b) C
REATE A WORK GROUP TO HELP REVIEW GRANT APPLICATIONS26
AND RECOMMEND PROJECTS FOR GRANT AWARDS ;27
HB24-1336
-6- (c) ESTABLISH A FORMAL APPEALS PROCESS FOR GRANT1
APPLICATIONS THAT ARE NOT AWARDED GRANTS . THE SOLE REMEDY FOR2
AN APPLICANT THAT PREVAILS ON APPEAL IS THE FINANCING OF THE3
APPLICANT'S PROPOSED PROJECT IN THE CURRENT OR NEXT FISCAL YEAR ,4
SUBJECT TO THE AVAILABILITY OF MONEY IN THE HCSM.5
(d) I
NCLUDE A FORMAL PROCESS BY WHICH THE BROADBAND6
OFFICE MAY CHALLENGE AN APPLICANT 'S DATA INCLUDED IN THE7
APPLICATION TO PREVENT THE FINANCING OF PROJECTS THAT WOULD8
CAUSE OVERBUILD OR DUPLICATION OF FEDERAL OR OTHER STATE9
FUNDING; AND10
(e) E
STABLISH A PROCESS FOR ENSURING THAT PROJECTS THAT ARE11
AWARDED GRANTS COMPLY WITH ALL STATE AND FEDERAL BROADBAND12
DEPLOYMENT REPORTING OBLIGATIONS .13
(6) P
URSUANT TO SECTION 24-37.5-106 (4), THE CHIEF14
INFORMATION OFFICER MAY PROMULGATE RULES TO IMPLEMENT THIS15
SECTION.16
(7) T
HE BROADBAND OFFICE MAY CONTRACT WITH A THIRD PARTY17
TO PERFORM ADMINISTRATIVE FUNCTIONS RELATED TO ADMINISTERING18
THE GRANT PROGRAM.19
(8) N
OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), ON OR20
BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 OF EACH YEAR21
THEREAFTER, THE BROADBAND OFFICE SHALL SUBMIT AN ANNUAL REPORT22
TO THE JOINT BUDGET COMM ITTEE AND THE JOINT TECHNOLOGY23
COMMITTEE, OR THEIR SUCCESSOR COMMITTEES , SUMMARIZING FOR THE24
PREVIOUS CALENDAR YEAR :25
(a) T
HE BROADBAND OFFICE'S GRANT ACTIVITIES; AND26
(b) HCSM
EXPENDITURES MADE FOR BROADBAND DEPLOYMENT .27
HB24-1336
-7- SECTION 4. In Colorado Revised Statutes, 6-26-101, amend (1)1
and (3) as follows:2
6-26-101. Complaints to federal trade commission - attorney3
general to provide guidance. (1) The attorney general or the attorney4
general's designee, in collaboration with the C
OLORADO broadband5
deployment board
OFFICE created in section 24-37.5-119 24-37.5-903 (1),6
shall develop written guidance for consumers seeking to file a complaint7
with the federal trade commission to allege that an internet service8
provider, as defined in section 40-15-209 (4)(b), has engaged in any9
practice that violates federal law regarding interference with the open10
internet.11
(3) The attorney general, in collaboration with the C
OLORADO12
broadband deployment board
OFFICE, shall update the written guidance13
as needed.14
SECTION 5. In Colorado Revised Statutes, 24-72-202, repeal15
(6)(b)(XV) as follows:16
24-72-202. Definitions. As used in this part 2, unless the context17
otherwise requires:18
(6) (b) "Public records" does not include:19
(XV) Granular coverage data, as defined in and submitted to the20
office of information technology pursuant to section 24-37.5-119 (9)(m);21
SECTION 6. In Colorado Revised Statutes, 40-15-208, amend22
(2)(a)(I)(B) as follows:23
40-15-208. High cost support mechanism - Colorado high cost24
administration fund - creation - purpose - operation - rules - report25
- repeal. (2) (a) (I) The commission is hereby authorized to establish a26
mechanism for the support of universal service, also referred to in this27
HB24-1336
-8- section as the "high cost support mechanism", which must operate in1
accordance with rules adopted by the commission. The primary purpose2
of the high cost support mechanism is to provide financial assistance as3
a support mechanism to:4
(B) Provide access to broadband service in unserved
AND5
UNDERSERVED areas pursuant to this section and section 24-37.5-119
6
24-37.5-905 only.7
SECTION 7. In Colorado Revised Statutes, 40-15-209, amend8
(1) introductory portion, (2)(a), and (2)(c) as follows:9
40-15-209. Net neutrality conditions for internet service10
providers to receive high cost support mechanism money -11
definitions. (1) Except as provided in subsection (3) of this section, an12
internet service provider that is otherwise eligible to receive money13
through a grant from the C
OLORADO broadband deployment board
OFFICE14
pursuant to section 24-37.5-119 24-37.5-905 or through any state fund15
established to help finance broadband deployment is not eligible to16
receive that money if the internet service provider:17
(2) (a) If the commission learns from the C
OLORADO broadband18
deployment board
OFFICE that a federal agency has issued a final order or19
entered into a settlement or consent decree regarding, or a court of20
competent jurisdiction has issued a final judgment against, an internet21
service provider and that the board OFFICE has determined from the order,22
decree, or judgment that the internet service provider has engaged in23
conduct specified in subsection (1) of this section, the commission shall24
issue a written order to the internet service provider requiring the internet25
service provider to fully refund any money that the internet service26
provider received in the twenty-four months preceding the board's27
HB24-1336
-9- OFFICE'S determination from the high cost support mechanism pursuant1
to a grant awarded by the C
OLORADO broadband deployment board
2
OFFICE under section 24-37.5-119 24-37.5-905.3
(c) The third-party contractor that maintains the high cost support4
mechanism shall allocate any money refunded to the high cost support5
mechanism pursuant to this subsection (2) to the high cost support6
mechanism account dedicated to broadband deployment, which account7
is described in section 24-37.5-119 (3) 24-37.5-905.8
SECTION 8. In Colorado Revised Statutes, 40-15-502, amend9
(5)(a) as follows:10
40-15-502. Expressions of state policy. (5) Universal service11
support mechanisms. (a) In order to accomplish the goals of universal12
basic service, universal access to advanced service under section13
24-37.5-119 24-37.5-905, and any revision of the definition of basic14
service under subsection (2) of this section, the commission shall create15
a system of support mechanisms to assist in the provision of basic service16
and advanced service in high-cost areas. The commission shall fund these17
support mechanisms equitably and on a nondiscriminatory, competitively18
neutral basis through assessments, which may include a rate element, on19
all telecommunications providers in Colorado. A provider's eligibility to20
receive support for basic service under the support mechanisms is21
conditioned upon the provider's offering basic service throughout an22
entire support area.23
SECTION 9. Act subject to petition - effective date. This act24
takes effect September 1, 2024; except that, if a referendum petition is25
filed pursuant to section 1 (3) of article V of the state constitution against26
this act or an item, section, or part of this act within the ninety-day period27
HB24-1336
-10- after final adjournment of the general assembly, then the act, item,1
section, or part will not take effect unless approved by the people at the2
general election to be held in November 2024 and, in such case, will take3
effect on the date of the official declaration of the vote thereon by the4
governor.5
HB24-1336
-11-