Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-0562.02 Jennifer Berman x3286
HOUSE BILL 24-1336
House Committees Senate Committees
Transportation, Housing & Local Government
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE DEPLOYMENT OF BROADBAND THROUGH GRANTS101
ADMINISTERED BY THE COLORADO BROADBAND
OFFICE, AND IN102
CONNECTION THEREWITH , MAKING AND REDUCING AN103
APPROPRIATION.104
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
HOUSE
3rd Reading Unamended
April 17, 2024
HOUSE
Amended 2nd Reading
April 15, 2024
HOUSE SPONSORSHIP
Parenti and Weinberg, Boesenecker, Kipp, Lindsay, Lukens, Titone
SENATE SPONSORSHIP
Rodriguez and Priola,
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. 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
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); and add (31)(a)(XI) 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 in8
section 24-37.5-119;9
(31) (a) The following agencies, functions, or both, are scheduled10
for repeal on September 1, 2030:11
(XI) THE FUNCTIONS OF THE BROADBAND OFFICE IN12
ADMINISTERING THE BROADBAND DEPLOYMENT GRANT PROGRAM13
CREATED IN SECTION 24-37.5-905.14
SECTION 2. In Colorado Revised Statutes, repeal 24-37.5-119.15
SECTION 3. In Colorado Revised Statutes, add 24-37.5-905 as16
follows:17
24-37.5-905. Broadband deployment - grant program - high18
cost support mechanism money - broadband office administrative19
fund - creation - criteria - rules - reports - definitions - repeal. (1) A S20
1336-2- USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :1
(a) "B
ROADBAND" HAS THE MEANING SET FORTH IN SECTION2
40-15-102.3
(b) "B
ROADBAND NETWORK " HAS THE MEANING SET FORTH IN4
SECTION 40-15-102.5
(c) "C
OMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION6
CREATED IN SECTION 40-2-101.7
(d) "HCSM"
MEANS THE HIGH COST SUPPORT MECHANISM8
CREATED PURSUANT TO SECTION 40-15-208.9
(e) "INCUMBENT PROVIDER" HAS THE MEANING SET FORTH IN10
SECTION 40-15-102 (9.5).11
(f) "MIDDLE MILE INFRASTRUCTURE" HAS THE MEANING SET FORTH12
IN 47 U.S.C. SEC. 1741 (a)(9), AS AMENDED.13
(2) (a) T
HE BROADBAND OFFICE SHALL ADMINISTER A BROADBAND14
DEPLOYMENT GRANT PROGRAM IN ACCORDANCE WITH THIS SECTION . THE15
BROADBAND OFFICE SHALL DIRECT THE COMMISSION TO AUTHORIZE A16
THIRD-PARTY CONTRACTOR OF THE HCSM TO DISBURSE MONEY FROM THE17
HCSM
FOR BROADBAND DEPLOYMENT GRANTS APPROVED BY THE18
BROADBAND OFFICE. THE COMMISSION SHALL AUTHORIZE DISBURSEMENTS19
OF MONEY FROM THE HCSM FOR BROADBAND DEPLOYMENT GRANTS ONLY20
AS DIRECTED BY THE BROADBAND OFFICE .21
(b) (I) T
HE BROADBAND OFFICE MAY ALLOCATE MONEY FROM THE22
HCSM
FOR THE DEPLOYMENT OF BROADBAND IN UNSERVED AND23
UNDERSERVED AREAS OF THE STATE PURSUANT TO THIS SECTION AND24
SECTION 40-15-208 THROUGH THE USE OF THE HCSM SURCHARGE AND25
SURCHARGE RATE IN EFFECT ON JANUARY 1, 2018. PURSUANT TO26
SECTIONS 40-15-207 AND 40-15-208, THE COMMISSION SHALL DETERMINE27
1336
-3- THE FUNDS AVAILABLE FOR BROADBAND DEPLOYMENT FROM THE HCSM1
MONEY. THE HCSM THIRD-PARTY CONTRACTOR SHALL MAINTAIN AND2
HOLD THE MONEY AVAILABLE FOR BROADBAND DEPLOYMENT IN A3
SEPARATE ACCOUNT FROM THE MONEY USED FOR BASIC VOICE SERVICE .4
M
ONEY HELD FOR BROADBAND DEPLOYMENT MUST NOT BE DISBURSED5
FOR BASIC VOICE SERVICE, AND MONEY HELD FOR BASIC VOICE SERVICE6
MUST NOT BE DISBURSED FOR BROADBAND DEPLOYMENT .7
(II) T
O MAXIMIZE THE EFFICACY OF THE GRANT PROGRAM , THE8
BROADBAND OFFICE MAY USE HCSM MONEY ALLOCATED FOR9
BROADBAND DEPLOYMENT PURSUANT TO THIS SUBSECTION (2) AND10
SECTION 40-15-208 IN ORDER TO CONDUCT, OR CAUSE TO BE CONDUCTED,11
STUDIES TO ASSESS BROADBAND NEEDS IN THE STATE .12
(3)
(a) UP TO FIVE PERCENT OF THE MONEY ALLOCATED FROM THE13
HCSM
FOR BROADBAND DEPLOYMENT MAY BE USED TO COVER THE14
BROADBAND OFFICE'S DIRECT AND INDIRECT COSTS TO ADMINISTER THE15
GRANT PROGRAM, INCLUDING TO COVER STAFFING COSTS FOR THE GRANT16
PROGRAM. MONEY THAT IS ALLOCATED FOR SUCH PURPOSES IS CREDITED17
TO THE BROADBAND OFFICE ADMINISTRATIVE FUND , WHICH FUND IS18
CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF ALL MONEY19
ALLOCATED FROM THE HCSM FOR THE BROADBAND OFFICE 'S20
ADMINISTRATION OF THE GRANT PROGRAM AND ALL MONEY THAT THE21
GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND . THE22
MONEY IN THE FUND IS SUBJECT TO ANNUAL APPROPRIATION BY THE23
GENERAL ASSEMBLY FOR THE PURPOSES SET FORTH IN THIS SECTION . ALL24
INTEREST EARNED FROM THE INVESTMENT OF MONEY IN THE FUND IS25
CREDITED TO THE FUND. ALL MONEY NOT EXPENDED AT THE END OF A26
STATE FISCAL YEAR REMAINS IN THE FUND AND DOES NOT REVERT TO THE27
1336
-4- GENERAL FUND OR ANY OTHER FUND .1
(b) EXCEPT AS REQUIRED TO COMPLY WITH SUBSECTIONS (2)(b)(II)2
AND (3)(a) OF THIS SECTION, THE BROADBAND OFFICE SHALL NOT AWARD3
ITSELF MONEY FROM THE HCSM.4
(c) THE BROADBAND OFFICE SHALL PROHIBIT GRANT RECIPIENTS5
FROM USING GRANT MONEY TO SUBSIDIZE EXPENSES ASSOCIATED WITH6
TELECOMMUNICATIONS OPERATIONAL EXPENSES, WITH THE EXCEPTION OF7
A ONE-TIME TECHNOLOGY AND INNOVATION EXPENSE AND REGULATORY8
COMPLIANCE.9
(4) O
N OR BEFORE DECEMBER 31, 2024, THE BROADBAND OFFICE10
SHALL ESTABLISH GRANT PROGRAM CRITERIA AND GUIDELINES FOR11
AWARDING HCSM MONEY FOR NEW PROJECTS TO EXPAND BROADBAND12
ACCESS AND TO INCREASE BROADBAND AFFORDABILITY IN THE STATE ,13
WHICH CRITERIA AND GUIDELINES MUST INCLUDE :14
(a) T
HE ESTABLISHMENT OF A TWO-TIERED GRANT PROGRAM THAT15
PRIORITIZES FUNDING AS FOLLOWS:16
(I) U
P TO SIXTY PERCENT OF AVAILABLE GRANT MONEY MUST BE17
USED TO FINANCE TIER ONE PROJECTS FOR MIDDLE MILE INFRASTRUCTURE ;18
AND19
(II) U
P TO FORTY PERCENT OF AVAILABLE GRANT MONEY MUST BE20
USED TO FINANCE TIER TWO PROJECTS AND OTHERWISE UNDERFUNDED21
BROADBAND NEEDS, INCLUDING, BUT NOT LIMITED TO:22
(A) P
OLE REPLACEMENTS AND ATTACHMENTS , LINE EXTENSIONS,23
LONG DROPS, NETWORK UPGRADES THAT STRENGTHEN CYBERSECURITY ,24
AND NETWORK INFRASTRUCTURE , INCLUDING WIRELINE AND WIRELESS25
FACILITIES SUCH AS TOWERS AND SATELLITE INFRASTRUCTURE ; AND26
(B) D
IGITAL EQUITY INITIATIVES TO HELP CLOSE THE DIGITAL27
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-5- DIVIDE IN THE STATE, INCLUDING INITIATIVES FOR BASIC INTERNET1
ACCESS, COMPUTER AND DEVICE DISTRIBUTION , DIGITAL LITERACY2
TRAINING, AND BROADBAND WORKFORCE DEVELOPMENT TRAINING ;3
(b) T
HE FOLLOWING MINIMUM REQUIREMENTS FOR PROJECTS THAT4
ARE AWARDED GRANT MONEY :5
(I) S
UPPORT FOR BROADBAND DEPLOYMENT IN UNSERVED OR6
UNDERSERVED AREAS;7
(II) S
PEED REQUIREMENTS;8
(III) M
ATCHING FUNDING REQUIREMENTS ;9
(IV) A
PPLICANT ELIGIBILITY REQUIREMENTS;10
(V) G
ENERALLY ACCEPTED INDUSTRY RELIABILITY AND11
PERFORMANCE STANDARDS ;12
(VI) T
IMELINES FOR COMPLETION OF A PROJECT;13
(VII) R
EASONABLE COST REQUIREMENTS FOR A PROJECT ;14
(VIII) C
OMPLIANCE STANDARDS ; AND15
(IX) R
EPORTING AND ACCOUNTABILITY REQUIREMENTS ; AND16
(c) T
HE FOLLOWING CRITERIA FOR REVIEWING AND PRIORITIZING17
APPLICANTS' PROPOSED PROJECTS:18
(I) T
HE PURPOSE AND PROJECT IMPACTS;19
(II) T
HE GEOGRAPHIC DISTRIBUTION OF BROADBAND DEPLOYMENT ;20
(III) B
ROADBAND NETWORK REDUNDANCY , DIVERSITY, AND21
LATENCY;22
(IV) B
ROADBAND NETWORK SPEEDS ;23
(V) T
HE AMOUNT OF MATCHING MONEY AVAILABLE ;24
(VI) T
HE COST-EFFECTIVENESS OF THE PROJECT;25
(VII) T
HE AMOUNT OF SUPPORT THE PROJECT WOULD PROVIDE FOR26
LOW-INCOME HOUSEHOLDS; AND27
1336
-6- (VIII) THE EXTENT TO WHICH THE PROJECT WOULD SUPPORT1
CRITICALLY UNSERVED AREAS.2
(5) I
N ESTABLISHING THE GRANT PROGRAM , THE BROADBAND3
OFFICE SHALL:4
(a) S
OLICIT INPUT FROM THE GENERAL PUBLIC AND VARIOUS5
STAKEHOLDERS, INCLUDING AT LEAST THE FOLLOWING GROUPS OF6
STAKEHOLDERS:7
(I) I
NDUSTRY ASSOCIATIONS;8
(II) L
OCAL GOVERNMENTS;9
(III) T
RIBAL GOVERNMENTS;10
(IV) O
THER STATE AGENCIES;11
(V) F
EDERAL AGENCIES;12
(VI) B
ROADBAND CONSUMERS ; AND13
(VII) O
THER KEY STAKEHOLDERS THAT THE BROADBAND OFFICE14
IDENTIFIES;15
(b) C
REATE A WORK
GROUP, INCLUDING THE EXTERNAL16
STAKEHOLDERS IDENTIFIED IN SUBSECTION (5)(a) OF THIS SECTION, TO17
HELP REVIEW GRANT APPLICATIONS AND RECOMMEND PROJECTS FOR18
GRANT AWARDS;19
(c) E
STABLISH A FORMAL APPEALS PROCESS FOR GRANT20
APPLICATIONS THAT ARE NOT AWARDED GRANTS . THE SOLE REMEDY FOR21
AN APPLICANT THAT PREVAILS ON APPEAL IS THE FINANCING OF THE22
APPLICANT'S PROPOSED PROJECT IN THE CURRENT OR NEXT FISCAL YEAR ,23
SUBJECT TO THE AVAILABILITY OF MONEY IN THE HCSM.24 (d) AS PART OF A GRANT APPLICATION THAT AN APPLICANT FILES25
OR AS PART OF AN APPEAL OF A GRANT DECISION THAT AN APPELLANT26
FILES, REQUIRE THAT THE APPLICANT OR APPELLANT INCLUDE A SPEED27
1336
-7- TEST PERFORMED:1
(I) ON AN INCUMBENT PROVIDER'S BROADBAND NETWORK ; AND2
(II) IN ACCORDANCE WITH INDUSTRY -STANDARD SPEED-TEST3
PROTOCOLS IDENTIFIED BY THE FEDERAL COMMUNICATIONS COMMISSION ;4
(e) INCLUDE A FORMAL PROCESS BY WHICH THE BROADBAND5
OFFICE, ELIGIBLE APPLICANTS, AND INCUMBENT PROVIDERS MAY6
CHALLENGE OR APPEAL 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
(f) ESTABLISH 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
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-8- (9) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2030.1
BEFORE THE REPEAL, THIS SECTION IS SCHEDULED FOR REVIEW IN2
ACCORDANCE WITH SECTION 24-34-104.3
SECTION 4. In Colorado Revised Statutes, 6-26-101, amend (1)4
and (3) as follows:5
6-26-101. Complaints to federal trade commission - attorney6
general to provide guidance. (1) The attorney general or the attorney7
general's designee, in collaboration with the C
OLORADO broadband8
deployment board
OFFICE created in section 24-37.5-119 24-37.5-903 (1),9
shall develop written guidance for consumers seeking to file a complaint10
with the federal trade commission to allege that an internet service11
provider, as defined in section 40-15-209 (4)(b), has engaged in any12
practice that violates federal law regarding interference with the open13
internet.14
(3) The attorney general, in collaboration with the C
OLORADO15
broadband deployment board
OFFICE, shall update the written guidance16
as needed.17
SECTION 5. In Colorado Revised Statutes, 24-37.5-106, amend18
(4) as follows:19
24-37.5-106. Chief information officer - duties and20
responsibilities - rules. (4) The chief information officer may21
promulgate as rules pursuant to article 4 of this title 24 all of the policies,22
procedures, standards, specifications, guidelines, or criteria that are23
developed or approved pursuant to section 24-37.5-105 (4) and RULES to24
establish accessibility standards for individuals with a disability pursuant25
to section 24-85-103 AND TO IMPLEMENT THE BROADBAND DEPLOYMENT26
GRANT PROGRAM PURSUANT TO SECTION 24-37.5-905.27
1336
-9- SECTION 6. In Colorado Revised Statutes, 24-72-202, repeal1
(6)(b)(XV) as follows:2
24-72-202. Definitions. As used in this part 2, unless the context3
otherwise requires:4
(6) (b) "Public records" does not include:5
(XV) Granular coverage data, as defined in and submitted to the6
office of information technology pursuant to section 24-37.5-119 (9)(m);7
SECTION 7. In Colorado Revised Statutes, 40-15-208, amend8
(2)(a)(I)(B) as follows:9
40-15-208. High cost support mechanism - Colorado high cost10
administration fund - creation - purpose - operation - rules - report11
- repeal. (2) (a) (I) The commission is hereby authorized to establish a12
mechanism for the support of universal service, also referred to in this13
section as the "high cost support mechanism", which must operate in14
accordance with rules adopted by the commission. The primary purpose15
of the high cost support mechanism is to provide financial assistance as16
a support mechanism to:17
(B) Provide access to broadband service in unserved
AND18
UNDERSERVED areas pursuant to this section and section 24-37.5-119
19
24-37.5-905 only.20
SECTION 8. In Colorado Revised Statutes, 40-15-209, amend21
(1) introductory portion, (2)(a), and (2)(c) as follows:22
40-15-209. Net neutrality conditions for internet service23
providers to receive high cost support mechanism money -24
definitions. (1) Except as provided in subsection (3) of this section, an25
internet service provider that is otherwise eligible to receive money26
through a grant from the C
OLORADO broadband deployment board
OFFICE27
1336
-10- pursuant to section 24-37.5-119 24-37.5-905 or through any state fund1
established to help finance broadband deployment is not eligible to2
receive that money if the internet service provider:3
(2) (a) If the commission learns from the C
OLORADO broadband4
deployment board
OFFICE that a federal agency has issued a final order or5
entered into a settlement or consent decree regarding, or a court of6
competent jurisdiction has issued a final judgment against, an internet7
service provider and that the board OFFICE has determined from the order,8
decree, or judgment that the internet service provider has engaged in9
conduct specified in subsection (1) of this section, the commission shall10
issue a written order to the internet service provider requiring the internet11
service provider to fully refund any money that the internet service12
provider received in the twenty-four months preceding the board's13
OFFICE'S determination from the high cost support mechanism pursuant14
to a grant awarded by the C
OLORADO broadband deployment board
15
OFFICE under section 24-37.5-119 24-37.5-905.16
(c) The third-party contractor that maintains the high cost support17
mechanism shall allocate any money refunded to the high cost support18
mechanism pursuant to this subsection (2) to the high cost support19
mechanism account dedicated to broadband deployment, which account20
is described in section 24-37.5-119 (3) 24-37.5-905.21
SECTION 9. In Colorado Revised Statutes, 40-15-502, amend22
(5)(a) as follows:23
40-15-502. Expressions of state policy. (5) Universal service24
support mechanisms. (a) In order to accomplish the goals of universal25
basic service, universal access to advanced service under section26
24-37.5-119 24-37.5-905, and any revision of the definition of basic27
1336
-11- service under subsection (2) of this section, the commission shall create1
a system of support mechanisms to assist in the provision of basic service2
and advanced service in high-cost areas. The commission shall fund these3
support mechanisms equitably and on a nondiscriminatory, competitively4
neutral basis through assessments, which may include a rate element, on5
all telecommunications providers in Colorado. A provider's eligibility to6
receive support for basic service under the support mechanisms is7
conditioned upon the provider's offering basic service throughout an8
entire support area.9
SECTION 10. Appropriation - adjustments to 2024 long bill.10
(1) To implement this act, appropriations made in the annual general11
appropriation act for the 2024-25 state fiscal year to the office of the12
governor are adjusted as follows:13
(a) The cash funds appropriation from various sources of cash14
funds for the office of information technology for health, life, and dental15
is decreased by $25,826;16
(b) The cash funds appropriation from various sources of cash17
funds for the office of information technology for enterprise solutions is18
decreased by $254,276, and the related FTE is decreased by 2.0 FTE.19
(2) For the 2024-25 state fiscal year, $525,393 is appropriated to20
the office of the governor for use by the office of information technology.21
This appropriation is from the broadband office administrative fund22
created in section 24-37.5-905 (3), C.R.S., and is based on the assumption23
the office will require an additional 3.5 FTE. To implement this act, the24
office may use this appropriation for enterprise solutions.25
SECTION 11. Act subject to petition - effective date. This act26
takes effect September 1, 2024; except that, if a referendum petition is27
1336
-12- filed pursuant to section 1 (3) of article V of the state constitution against1
this act or an item, section, or part of this act within the ninety-day period2
after final adjournment of the general assembly, then the act, item,3
section, or part will not take effect unless approved by the people at the4
general election to be held in November 2024 and, in such case, will take5
effect on the date of the official declaration of the vote thereon by the6
governor.7
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-13-