Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 24-0562.02 Jennifer Berman x3286
HOUSE BILL 24-1336
House Committees Senate Committees
Transportation, Housing & Local Government Finance
Finance Appropriations
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE DEPLOYMENT OF BROADBAND THROUGH GRANTS101
ADMINISTERED BY THE COLORADO BROADBAND
OFFICE, AND, IN102
CONNECTION THEREWITH , REDUCING AN APPROPRIATION .103
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
SENATE
Amended 2nd Reading
April 30, 2024
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. 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
USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :21
1336-2- (a) "BROADBAND" HAS THE MEANING SET FORTH IN SECTION1
40-15-102.2
(b) "B
ROADBAND NETWORK " HAS THE MEANING SET FORTH IN3
SECTION 40-15-102.4
(c) "C
OMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION5
CREATED IN SECTION 40-2-101.6
(d) "HCSM"
MEANS THE HIGH COST SUPPORT MECHANISM7
CREATED PURSUANT TO SECTION 40-15-208.8
(e) "INCUMBENT PROVIDER" HAS THE MEANING SET FORTH IN9
SECTION 40-15-102 (9.5).10
(f) "MIDDLE MILE INFRASTRUCTURE" HAS THE MEANING SET FORTH11
IN 47 U.S.C. SEC. 1741 (a)(9), AS AMENDED.12
(2) (a) T
HE BROADBAND OFFICE SHALL ADMINISTER A BROADBAND13
DEPLOYMENT GRANT PROGRAM IN ACCORDANCE WITH THIS SECTION . THE14
BROADBAND OFFICE SHALL DIRECT THE COMMISSION TO AUTHORIZE A15
THIRD-PARTY CONTRACTOR OF THE HCSM TO DISBURSE MONEY FROM THE16
HCSM
FOR BROADBAND DEPLOYMENT GRANTS APPROVED BY THE17
BROADBAND OFFICE. THE COMMISSION SHALL AUTHORIZE DISBURSEMENTS18
OF MONEY FROM THE HCSM FOR BROADBAND DEPLOYMENT GRANTS ONLY19
AS DIRECTED BY THE BROADBAND OFFICE .20
(b) (I) T
HE BROADBAND OFFICE MAY ALLOCATE MONEY FROM THE21
HCSM
FOR THE DEPLOYMENT OF BROADBAND IN UNSERVED AND22
UNDERSERVED AREAS OF THE STATE PURSUANT TO THIS SECTION AND23
SECTION 40-15-208 THROUGH THE USE OF THE HCSM SURCHARGE AND24
SURCHARGE RATE IN EFFECT ON JANUARY 1, 2018. IN DETERMINING THE
25
DEFINITION OF UNSERVED AND UNDERSERVED AREAS , THE STANDARDS26
USED BY THE BROADBAND OFFICE MUST BE CONSISTENT WITH BR OADBAND27
1336
-3- BENCHMARK STANDARDS AND ANY REVISIONS TO THE STANDARDS , AS1
DETERMINED BY THE FEDERAL COMMUNICATIONS COMMISSION AND THE2
NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION IN3
THE UNITED STATES DEPARTMENT OF COMMERCE . PURSUANT TO SECTIONS4
40-15-207
AND 40-15-208, THE COMMISSION SHALL DETERMINE THE5
FUNDS AVAILABLE FOR BROADB AND DEPLOYMENT FROM THE HCSM6
MONEY. THE HCSM THIRD-PARTY CONTRACTOR SHALL MAINTAIN AND7
HOLD THE MONEY AVAILABLE FOR BROADBAND DEPLOYMENT IN A8
SEPARATE ACCOUNT FROM THE MONEY USED FOR BASIC VOICE SERVICE .9
M
ONEY HELD FOR BROADBAND DEPLOYMENT MUST NOT BE DISBURSED10
FOR BASIC VOICE SERVICE, AND MONEY HELD FOR BASIC VOICE SERVICE11
MUST NOT BE DISBURSED FOR BROADBAND DEPLOYMENT .12
(II) T
O MAXIMIZE THE EFFICACY OF THE GRANT PROGRAM , THE13
BROADBAND OFFICE MAY USE HCSM MONEY ALLOCATED FOR14
BROADBAND DEPLOYMENT PURSUANT TO THIS SUBSECTION (2) AND15
SECTION 40-15-208 IN ORDER TO CONDUCT, OR CAUSE TO BE CONDUCTED,16
STUDIES TO ASSESS BROADBAND NEEDS IN THE STATE .17
(3)
(a) UP TO FIVE PERCENT OF THE MONEY ALLOCATED FROM THE18
HCSM
FOR BROADBAND DEPLOYMENT MAY BE USED TO COVER THE19
BROADBAND OFFICE'S DIRECT AND INDIRECT COSTS TO ADMINISTER THE20
GRANT PROGRAM, INCLUDING TO COVER STAFFING COSTS FOR THE GRANT21
PROGRAM. MONEY THAT IS ALLOCATED FOR SUCH PURPOSES IS CREDITED22
TO THE BROADBAND OFFICE ADMINISTRATIVE FUND , WHICH FUND IS23
CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF ALL MONEY24
ALLOCATED FROM THE HCSM FOR THE BROADBAND OFFICE 'S25
ADMINISTRATION OF THE GRANT PROGRAM AND ALL MONEY THAT THE26
GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND . THE27
1336
-4- MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED FOR THE PURPOSES1
SET FORTH IN THIS SECTION . ALL INTEREST EARNED FROM THE2
INVESTMENT OF MONEY IN THE FUND IS CREDITED TO THE FUND . ALL3
MONEY NOT EXPENDED AT THE END OF A STATE FISCAL YEAR REMAINS IN4
THE FUND AND DOES NOT REVERT TO THE GENERAL FUND OR ANY OTHER5
FUND.6
(b) EXCEPT AS REQUIRED TO COMPLY WITH SUBSECTIONS (2)(b)(II)7
AND (3)(a) OF THIS SECTION, THE BROADBAND OFFICE SHALL NOT AWARD8
ITSELF MONEY FROM THE HCSM.9
(c) THE BROADBAND OFFICE SHALL PROHIBIT GRANT RECIPIENTS10
FROM USING GRANT MONEY TO SUBSIDIZE EXPENSES ASSOCIATED WITH11
TELECOMMUNICATIONS OPERATIONAL EXPENSES, WITH THE EXCEPTION OF12
A ONE-TIME TECHNOLOGY AND INNOVATION EXPENSE AND REGULATORY13
COMPLIANCE.14
(4) O
N OR BEFORE DECEMBER 31, 2024, THE BROADBAND OFFICE15
SHALL ESTABLISH GRANT PROGRAM CRITERIA AND GUIDELINES FOR16
AWARDING HCSM MONEY FOR NEW PROJECTS TO EXPAND BROADBAND17
ACCESS AND TO INCREASE BR OADBAND AFFORDABILITY IN THE STATE ,18
WHICH CRITERIA AND GUIDELINES MUST INCLUDE :19
(a) T
HE ESTABLISHMENT OF A TWO-TIERED GRANT PROGRAM THAT20
PRIORITIZES FUNDING AS FOLLOWS:21
(I) U
P TO SIXTY PERCENT OF AVAILABLE GRANT MONEY MUST BE22
USED TO FINANCE TIER ONE PROJECTS FOR MIDDLE MILE INFRASTRUCTURE ;23
AND24
(II) U
P TO FORTY PERCENT OF AVAILABLE GRANT MONEY MUST BE25
USED TO FINANCE TIER TWO PROJECTS AND OTHERWISE UNDERFUNDED26
BROADBAND NEEDS, INCLUDING, BUT NOT LIMITED TO:27
1336
-5- (A) POLE REPLACEMENTS AND ATTACHMENTS , LINE EXTENSIONS,1
LONG DROPS, NETWORK UPGRADES THAT STRENGTHEN CYBERSECURITY ,2
AND NETWORK INFRASTRUCTURE , INCLUDING WIRELINE AND WIRELESS3
FACILITIES SUCH AS TOWERS AND SATELLITE INFRASTRUCTURE ; AND4
(B) D
IGITAL EQUITY INITIATIVES TO HELP CLOSE THE DIGITAL5
DIVIDE IN THE STATE, INCLUDING INITIATIVES FOR BASIC INTERNET6
ACCESS, COMPUTER AND DEVICE DISTRIBUTION , DIGITAL LITERACY7
TRAINING, AND BROADBAND WORKFORCE DEVELOPMENT TRAINING ;8
(b) T
HE FOLLOWING MINIMUM REQUIREMENTS FOR PROJECTS THAT9
ARE AWARDED GRANT MONEY :10
(I) S
UPPORT FOR BROADBAND DEPLOYMENT IN UNSERVED OR11
UNDERSERVED AREAS;12
(II) S
PEED REQUIREMENTS;13
(III) M
ATCHING FUNDING REQUIREMENTS ;14
(IV) A
PPLICANT ELIGIBILITY REQUIREMENTS;15
(V) G
ENERALLY ACCEPTED INDUSTRY RELIABILITY AND16
PERFORMANCE STANDARDS ;17
(VI) T
IMELINES FOR COMPLETION OF A PROJECT;18
(VII) R
EASONABLE COST REQUIREMENTS FOR A PROJECT ;19
(VIII) C
OMPLIANCE STANDARDS ; AND20
(IX) R
EPORTING AND ACCOUNTABILITY REQUIREMENTS ; AND21
(c) T
HE FOLLOWING CRITERIA FOR REVIEWING AND PRIORITIZING22
APPLICANTS' PROPOSED PROJECTS:23
(I) T
HE PURPOSE AND PROJECT IMPACTS;24
(II) T
HE GEOGRAPHIC DISTRIBUTION OF BROADBAND DEPLOYMENT ;25
(III) B
ROADBAND NETWORK REDUNDANCY , DIVERSITY, AND26
LATENCY;27
1336
-6- (IV) BROADBAND NETWORK SPEEDS ;1
(V) T
HE AMOUNT OF MATCHING MONEY AVAILABLE ;2
(VI) T
HE COST-EFFECTIVENESS OF THE PROJECT;3
(VII) T
HE AMOUNT OF SUPPORT THE PROJECT WOULD PROVIDE FOR4
LOW-INCOME HOUSEHOLDS; AND5
(VIII) T
HE EXTENT TO WHICH THE PROJECT WOULD SUPPORT6
CRITICALLY UNSERVED AREAS.7
(5) I
N ESTABLISHING THE GRANT PROGRAM , THE BROADBAND8
OFFICE SHALL:9
(a) S
OLICIT INPUT FROM THE GENERAL PUBLIC AND VARIOUS10
STAKEHOLDERS, INCLUDING AT LEAST THE FOLLOWING GROUPS OF11
STAKEHOLDERS:12
(I) I
NDUSTRY ASSOCIATIONS;13
(II) L
OCAL GOVERNMENTS ;14
(III) T
RIBAL GOVERNMENTS;15
(IV) O
THER STATE AGENCIES;16
(V) F
EDERAL AGENCIES;17
(VI) B
ROADBAND CONSUMERS ; AND18
(VII) O
THER KEY STAKEHOLDERS THAT THE BROADBAND OFFICE19
IDENTIFIES;20
(b) C
REATE A WORK
GROUP, INCLUDING THE EXTERNAL21
STAKEHOLDERS IDENTIFIED IN SUBSECTION (5)(a) OF THIS SECTION, TO22
HELP REVIEW GRANT APPLICATIONS AND RECOMMEND PROJECTS FOR23
GRANT AWARDS;24
(c) E
STABLISH A FORMAL APPEALS PROCESS FOR GRANT25
APPLICATIONS THAT ARE NOT AWARDED GRANTS . THE SOLE REMEDY FOR26
AN APPLICANT THAT PREVAILS ON APPEAL IS THE FINANCING OF THE27
1336
-7- APPLICANT'S PROPOSED PROJECT IN THE CURRENT OR NEXT FISCAL YEAR ,1
SUBJECT TO THE AVAILABILITY OF MONEY IN THE HCSM.2
(d) AS PART OF A GRANT APPLICATION THAT AN APPLICANT FILES3
OR AS PART OF AN APPEAL OF A GRANT DECISION THAT AN APPELLANT4
FILES, REQUIRE THAT THE APPLICANT OR APPELLANT INCLUDE A SPEED5
TEST PERFORMED:6
(I) ON AN INCUMBENT PROVIDER'S BROADBAND NETWORK ; AND7
(II) IN ACCORDANCE WITH INDUSTRY -STANDARD SPEED-TEST8
PROTOCOLS IDENTIFIED BY THE FEDERAL COMMUNICATIONS COMMISSION;9
(e) INCLUDE A FORMAL PROCESS BY WHICH THE BROADBAND10
OFFICE, ELIGIBLE APPLICANTS, AND INCUMBENT PROVIDERS MAY11
CHALLENGE OR APPEAL AN APPLICANT'S DATA INCLUDED IN THE12
APPLICATION TO PREVENT THE FINANCING OF PROJECTS THAT WOULD13
CAUSE OVERBUILD OR DUPLICATION OF FEDERAL OR OTHER STATE14
FUNDING; AND15
(f) ESTABLISH A PROCESS FOR ENSURING THAT PROJECTS THAT ARE16
AWARDED GRANTS COMPLY WITH ALL STATE AND FEDERAL BROADBAND17
DEPLOYMENT REPORTING OBLIGATIONS .18
(6) P
URSUANT TO SECTION 24-37.5-106 (4), THE CHIEF19
INFORMATION OFFICER MAY PROMULGATE RULES TO IMPLEMENT THIS20
SECTION AND SHALL SPECIFICALLY CONSIDER PROMULGATING RULES TO
21
IMPLEMENT SUBSECTIONS (2), (4), AND (5) OF THIS SECTION.22
(7) T
HE BROADBAND OFFICE MAY CONTRACT WITH A THIRD PARTY23
TO PERFORM ADMINISTRATIVE FUNCTIONS RELATED TO ADMINISTERING24
THE GRANT PROGRAM.25
(8) N
OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), ON OR26
BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 OF EACH YEAR27
1336
-8- THEREAFTER, THE BROADBAND OFFICE SHALL SUBMIT AN AN NUAL REPORT1
TO THE JOINT BUDGET COMMITTEE AND THE JOINT TECHNOLOGY2
COMMITTEE, OR THEIR SUCCESSOR COMMITTEES , SUMMARIZING FOR THE3
PREVIOUS CALENDAR YEAR :4
(a) T
HE BROADBAND OFFICE'S GRANT ACTIVITIES; AND5
(b) HCSM
EXPENDITURES MADE FOR BROADBAND DEPLOYMENT .6
(9) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2030.7
BEFORE THE REPEAL, THIS SECTION IS SCHEDULED FOR REVIEW IN8
ACCORDANCE WITH SECTION 24-34-104.9
SECTION 4. In Colorado Revised Statutes, 6-26-101, amend (1)10
and (3) as follows:11
6-26-101. Complaints to federal trade commission - attorney12
general to provide guidance. (1) The attorney general or the attorney13
general's designee, in collaboration with the C
OLORADO broadband14
deployment board
OFFICE created in section 24-37.5-119 24-37.5-903 (1),15
shall develop written guidance for consumers seeking to file a complaint16
with the federal trade commission to allege that an internet service17
provider, as defined in section 40-15-209 (4)(b), has engaged in any18
practice that violates federal law regarding interference with the open19
internet.20
(3) The attorney general, in collaboration with the C
OLORADO21
broadband deployment board
OFFICE, shall update the written guidance22
as needed.23
SECTION 5. In Colorado Revised Statutes, 24-37.5-106, amend24
(4) as follows:25
24-37.5-106. Chief information officer - duties and26
responsibilities - rules. (4) The chief information officer may27
1336
-9- promulgate as rules pursuant to article 4 of this title 24 all of the policies,1
procedures, standards, specifications, guidelines, or criteria that are2
developed or approved pursuant to section 24-37.5-105 (4) and RULES to3
establish accessibility standards for individuals with a disability pursuant4
to section 24-85-103 AND TO IMPLEMENT THE BROADBAND DEPLOYMENT5
GRANT PROGRAM PURSUANT TO SECTION 24-37.5-905.6
SECTION 6. In Colorado Revised Statutes, 24-72-202, repeal7
(6)(b)(XV) as follows:8
24-72-202. Definitions. As used in this part 2, unless the context9
otherwise requires:10
(6) (b) "Public records" does not include:11
(XV) Granular coverage data, as defined in and submitted to the12
office of information technology pursuant to section 24-37.5-119 (9)(m);13
SECTION 7. In Colorado Revised Statutes, 40-15-208, amend14
(2)(a)(I)(B) as follows:15
40-15-208. High cost support mechanism - Colorado high cost16
administration fund - creation - purpose - operation - rules - report17
- repeal. (2) (a) (I) The commission is hereby authorized to establish a18
mechanism for the support of universal service, also referred to in this19
section as the "high cost support mechanism", which must operate in20
accordance with rules adopted by the commission. The primary purpose21
of the high cost support mechanism is to provide financial assistance as22
a support mechanism to:23
(B) Provide access to broadband service in unserved
AND24
UNDERSERVED areas pursuant to this section and section 24-37.5-119
25
24-37.5-905 only.26
SECTION 8. In Colorado Revised Statutes, 40-15-209, amend27
1336
-10- (1) introductory portion, (2)(a), and (2)(c) as follows:1
40-15-209. Net neutrality conditions for internet service2
providers to receive high cost support mechanism money -3
definitions. (1) Except as provided in subsection (3) of this section, an4
internet service provider that is otherwise eligible to receive money5
through a grant from the C
OLORADO broadband deployment board
OFFICE6
pursuant to section 24-37.5-119 24-37.5-905 or through any state fund7
established to help finance broadband deployment is not eligible to8
receive that money if the internet service provider:9
(2) (a) If the commission learns from the C
OLORADO broadband10
deployment board
OFFICE that a federal agency has issued a final order or11
entered into a settlement or consent decree regarding, or a court of12
competent jurisdiction has issued a final judgment against, an internet13
service provider and that the board OFFICE has determined from the order,14
decree, or judgment that the internet service provider has engaged in15
conduct specified in subsection (1) of this section, the commission shall16
issue a written order to the internet service provider requiring the internet17
service provider to fully refund any money that the internet service18
provider received in the twenty-four months preceding the board's19
OFFICE'S determination from the high cost support mechanism pursuant20
to a grant awarded by the C
OLORADO broadband deployment board
21
OFFICE under section 24-37.5-119 24-37.5-905.22
(c) The third-party contractor that maintains the high cost support23
mechanism shall allocate any money refunded to the high cost support24
mechanism pursuant to this subsection (2) to the high cost support25
mechanism account dedicated to broadband deployment, which account26
is described in section 24-37.5-119 (3) 24-37.5-905.27
1336
-11- SECTION 9. In Colorado Revised Statutes, 40-15-502, amend1
(5)(a) as follows:2
40-15-502. Expressions of state policy. (5) Universal service3
support mechanisms. (a) In order to accomplish the goals of universal4
basic service, universal access to advanced service under section5
24-37.5-119 24-37.5-905, and any revision of the definition of basic6
service under subsection (2) of this section, the commission shall create7
a system of support mechanisms to assist in the provision of basic service8
and advanced service in high-cost areas. The commission shall fund these9
support mechanisms equitably and on a nondiscriminatory, competitively10
neutral basis through assessments, which may include a rate element, on11
all telecommunications providers in Colorado. A provider's eligibility to12
receive support for basic service under the support mechanisms is13
conditioned upon the provider's offering basic service throughout an14
entire support area.15
SECTION 10. Appropriation - adjustments to 2024 long bill.16
(1) To implement this act, appropriations made in the annual general17
appropriation act for the 2024-25 state fiscal year to the office of the18
governor are adjusted as follows:19
(a) The cash funds appropriation from various sources of cash20
funds for the office of information technology for health, life, and dental21
is decreased by $25,826;22
(b) The cash funds appropriation from various sources of cash23
funds for the office of information technology for enterprise solutions is24
decreased by $254,276, and the related FTE is decreased by 2.0 FTE.25
26
SECTION 11. Act subject to petition - effective date. This act27
1336
-12- takes effect September 1, 2024; except that, if a referendum petition is1
filed pursuant to section 1 (3) of article V of the state constitution against2
this act or an item, section, or part of this act within the ninety-day period3
after final adjournment of the general assembly, then the act, item,4
section, or part will not take effect unless approved by the people at the5
general election to be held in November 2024 and, in such case, will take6
effect on the date of the official declaration of the vote thereon by the7
governor.8
1336
-13-