Colorado 2024 Regular Session

Colorado House Bill HB1336 Latest Draft

Bill / Enrolled Version Filed 05/20/2024

                            HOUSE BILL 24-1336
BY REPRESENTATIVE(S) Parenti and Weinberg, Boesenecker, Kipp,
Lindsay, Lukens, Titone, Bacon, Bird, Bradley, Brown, Duran, Joseph,
Snyder;
also SENATOR(S) Rodriguez and Priola, Bridges, Buckner, Cutter, Fields,
Jaquez Lewis, Michaelson Jenet.
C
ONCERNING THE DEPLOYMENT OF BROADBAND THROUGH GRANTS
ADMINISTERED BY THE 
COLORADO BROADBAND OFFICE , AND, IN
CONNECTION THEREWITH
, REDUCING AN APPROPRIATION.
 
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal
(25)(a)(VI); and add (31)(a)(XII) as follows:
24-34-104.  General assembly review of regulatory agencies and
functions for repeal, continuation, or reestablishment - legislative
declaration - repeal. (25) (a)  The following agencies, functions, or both,
are scheduled for repeal on September 1, 2024:
(VI)  The functions of the broadband deployment board created in
section 24-37.5-119;
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (31) (a)  The following agencies, functions, or both, are scheduled
for repeal on September 1, 2030:
(XII)  T
HE FUNCTIONS OF THE BROADBAND OFFICE IN ADMINISTERING
THE BROADBAND DEPLOYMENT GRANT PROGRAM CREATED IN SECTION
24-37.5-905.
SECTION 2. In Colorado Revised Statutes, repeal 24-37.5-119.
SECTION 3. In Colorado Revised Statutes, add 24-37.5-905 as
follows:
24-37.5-905.  Broadband deployment - grant program - high cost
support mechanism money - broadband office administrative fund -
creation - criteria - rules - reports - definitions - repeal. (1)  A
S USED IN
THIS SECTION
, UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a)  "B
ROADBAND" HAS THE MEANING SET FORTH IN SECTION
40-15-102.
(b)  "B
ROADBAND NETWORK " HAS THE MEANING SET FORTH IN
SECTION 
40-15-102.
(c)  "C
OMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION
CREATED IN SECTION 
40-2-101.
(d)  "HCSM"
 MEANS THE HIGH COST SUPPORT MECHANISM CREATED
PURSUANT TO SECTION 
40-15-208.
(e)  "I
NCUMBENT PROVIDER " HAS THE MEANING SET FORTH IN
SECTION 
40-15-102 (9.5).
(f)  "M
IDDLE MILE INFRASTRUCTURE" HAS THE MEANING SET FORTH
IN 
47 U.S.C. SEC. 1741 (a)(9), AS AMENDED.
(2) (a)  T
HE BROADBAND OFFICE SHALL ADMINISTER A BROADBAND
DEPLOYMENT GRANT PROGRAM IN ACCORDANCE WITH THIS SECTION
. THE
BROADBAND OFFICE SHALL DIRECT THE COMMISSION TO AUTHORIZE A
THIRD
-PARTY CONTRACTOR OF THE HCSM TO DISBURSE MONEY FROM THE
PAGE 2-HOUSE BILL 24-1336 HCSM FOR BROADBAND DEPLOYMENT GRANTS APPROVED BY THE
BROADBAND OFFICE
. THE COMMISSION SHALL AUTHORIZE DISBURSEMENTS
OF MONEY FROM THE 
HCSM FOR BROADBAND DEPLOYMENT GRANTS ONLY
AS DIRECTED BY THE BROADBAND OFFICE
.
(b) (I)  T
HE BROADBAND OFFICE MAY ALLOCATE MONEY FROM THE
HCSM FOR THE DEPLOYMENT OF BROADBAND IN UNSERVED AND
UNDERSERVED AREAS OF THE STATE PURSUANT TO THIS SECTION AND
SECTION 
40-15-208 THROUGH THE USE OF THE HCSM SURCHARGE AND
SURCHARGE RATE IN EFFECT ON 
JANUARY 1, 2018. IN DETERMINING THE
DEFINITION OF UNSERVED AND UNDERSERVED AREAS
, THE STANDARDS USED
BY THE BROADBAND OFFICE MUST BE CONSISTENT WITH BR OADBAND
BENCHMARK STANDARDS AND ANY REVISIONS TO THE STANDARDS
, AS
DETERMINED BY THE FEDERAL COMMUNICATIONS COMMISSION AND THE
NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION IN
THE 
UNITED STATES DEPARTMENT OF COMMERCE . PURSUANT TO SECTIONS
40-15-207 AND 40-15-208, THE COMMISSION SHALL DETERMINE THE FUNDS
AVAILABLE FOR BROADBAND DEPLOYMENT FROM THE 
HCSM MONEY. THE
HCSM THIRD-PARTY CONTRACTOR SHALL MAINTAIN AND HOLD THE MONEY
AVAILABLE FOR BROADBAND DEPLOYMENT IN A SEPARATE ACCOUNT FROM
THE MONEY USED FOR BASIC VOICE SERVICE
. MONEY HELD FOR BROADBAND
DEPLOYMENT MUST NOT BE DISBURSED FOR BASIC VOICE SERVICE
, AND
MONEY HELD FOR BASIC VOICE SERVICE MUST NOT BE DISBURSED FOR
BROADBAND DEPLOYMENT
.
(II)  T
O MAXIMIZE THE EFFICACY OF THE GRANT PROGRAM , THE
BROADBAND OFFICE MAY USE 
HCSM MONEY ALLOCATED FOR BROADBAND
DEPLOYMENT PURSUANT TO THIS SUBSECTION 
(2) AND SECTION 40-15-208
IN ORDER TO CONDUCT, OR CAUSE TO BE CONDUCTED, STUDIES TO ASSESS
BROADBAND NEEDS IN THE STATE
.
(3) (a)  U
P TO FIVE PERCENT OF THE MONEY ALLOCATED FROM THE
HCSM FOR BROADBAND DEPLOYMENT MAY BE USED TO COVER THE
BROADBAND OFFICE
'S DIRECT AND INDIRECT COSTS TO ADMINISTER THE
GRANT PROGRAM
, INCLUDING TO COVER STAFFING COSTS FOR THE GRANT
PROGRAM
. MONEY THAT IS ALLOCATED FOR SUCH PURPOSES IS CREDITED TO
THE BROADBAND OFFICE ADMINISTRATIVE FUND
, WHICH FUND IS CREATED
IN THE STATE TREASURY
. THE FUND CONSISTS OF ALL MONEY ALLOCATED
FROM THE 
HCSM FOR THE BROADBAND OFFICE'S ADMINISTRATION OF THE
GRANT PROGRAM AND ALL MONEY THAT THE GENERAL ASSEMBLY MAY
PAGE 3-HOUSE BILL 24-1336 APPROPRIATE OR TRANSFER TO THE FUND . THE MONEY IN THE FUND IS
CONTINUOUSLY APPROPRIATED FOR THE PURPOSES SET FORTH IN THIS
SECTION
. ALL INTEREST EARNED FROM THE INVESTMENT OF MONEY IN THE
FUND IS CREDITED TO THE FUND
. ALL 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
.
(b)  E
XCEPT AS REQUIRED TO COMPLY WITH SUBSECTIONS (2)(b)(II)
AND (3)(a) OF THIS SECTION, THE BROADBAND OFFICE SHALL NOT AWARD
ITSELF MONEY FROM THE 
HCSM.
(c)  T
HE BROADBAND OFFICE SHALL PROHIBIT GRANT RECIPIENTS
FROM USING GRANT MONEY TO SUBSIDIZE EXPENSES ASSOCIATED WITH
TELECOMMUNICATIONS OPERATIONAL EXPENSES
, WITH THE EXCEPTION OF
A ONE
-TIME TECHNOLOGY AND INNOVATION EXPENSE AND REGULATORY
COMPLIANCE
.
(4)  O
N OR BEFORE DECEMBER 31, 2024, THE BROADBAND OFFICE
SHALL ESTABLISH GRANT PROGRAM CRITERIA AND GUIDELINES FOR
AWARDING 
HCSM MONEY FOR NEW PROJECTS TO EXPAND BROADBAND
ACCESS AND TO INCREASE BR OADBAND AFFORDABILITY IN THE STATE
,
WHICH CRITERIA AND GUIDELINES MUST INCLUDE :
(a)  T
HE ESTABLISHMENT OF A TWO-TIERED GRANT PROGRAM THAT
PRIORITIZES FUNDING AS FOLLOWS
:
(I)  U
P TO SIXTY PERCENT OF AVAILABLE GRANT MONEY MUST BE
USED TO FINANCE TIER ONE PROJECTS FOR MIDDLE MILE INFRASTRUCTURE
;
AND
(II)  UP TO FORTY PERCENT OF AVAILABLE GRANT MONEY MUST BE
USED TO FINANCE TIER TWO PROJECTS AND OTHERWISE UNDERFUNDED
BROADBAND NEEDS
, INCLUDING, BUT NOT LIMITED TO:
(A)  P
OLE REPLACEMENTS AND ATTACHMENTS , LINE EXTENSIONS,
LONG DROPS, NETWORK UPGRADES THAT STRENGTHEN CYBERSECURITY , AND
NETWORK INFRASTRUCTURE
, INCLUDING WIRELINE AND WIRELESS FACILITIES
SUCH AS TOWERS AND SATELLITE INFRASTRUCTURE
; AND
(B)  DIGITAL EQUITY INITIATIVES TO HELP CLOSE THE DIGITAL DIVIDE
PAGE 4-HOUSE BILL 24-1336 IN THE STATE, INCLUDING INITIATIVES FOR BASIC INTERNET ACCESS ,
COMPUTER AND DEVICE DISTRIBUTION , DIGITAL LITERACY TRAINING, AND
BROADBAND WORKFORCE DEVELOPMENT TRAINING
;
(b)  T
HE FOLLOWING MINIMUM REQUIREMENTS FOR PROJECTS THAT
ARE AWARDED GRANT MONEY
:
(I)  S
UPPORT FOR BROADBAND DEPLOYMENT IN UNSERVED OR
UNDERSERVED AREAS
;
(II)  S
PEED REQUIREMENTS;
(III)  M
ATCHING FUNDING REQUIREMENTS ;
(IV)  A
PPLICANT ELIGIBILITY REQUIREMENTS;
(V)  G
ENERALLY ACCEPTED INDUSTRY RELIABILITY AND
PERFORMANCE STANDARDS
;
(VI)  T
IMELINES FOR COMPLETION OF A PROJECT;
(VII)  R
EASONABLE COST REQUIREMENTS FOR A PROJECT ;
(VIII)  C
OMPLIANCE STANDARDS ; AND
(IX)  REPORTING AND ACCOUNTABILITY REQUIREMENTS ; AND
(c)  THE FOLLOWING CRITERIA FOR REVIEWING AND PRIORITIZING
APPLICANTS
' PROPOSED PROJECTS:
(I)  T
HE PURPOSE AND PROJECT IMPACTS;
(II)  T
HE GEOGRAPHIC DISTRIBUTION OF BROADBAND DEPLOYMENT ;
(III)  B
ROADBAND NETWORK REDUNDANCY , DIVERSITY, AND
LATENCY
;
(IV)  B
ROADBAND NETWORK SPEEDS ;
(V)  T
HE AMOUNT OF MATCHING MONEY AVAILABLE ;
PAGE 5-HOUSE BILL 24-1336 (VI)  THE COST-EFFECTIVENESS OF THE PROJECT;
(VII)  T
HE AMOUNT OF SUPPORT THE PROJECT WOULD PROVIDE FOR
LOW
-INCOME HOUSEHOLDS; AND
(VIII)  THE EXTENT TO WHICH THE PROJECT WOULD SUPPORT
CRITICALLY UNSERVED AREAS
.
(5)  I
N ESTABLISHING THE GRANT PROGRAM , THE BROADBAND OFFICE
SHALL
:
(a)  S
OLICIT INPUT FROM THE GENERAL PUBLIC AND VARIOUS
STAKEHOLDERS
, INCLUDING AT LEAST THE FOLLOWING GROUPS OF
STAKEHOLDERS
:
(I)  I
NDUSTRY ASSOCIATIONS;
(II)  L
OCAL GOVERNMENTS;
(III)  T
RIBAL GOVERNMENTS;
(IV)  O
THER STATE AGENCIES;
(V)  F
EDERAL AGENCIES;
(VI)  B
ROADBAND CONSUMERS ; AND
(VII)  OTHER KEY STAKEHOLDERS THAT THE BROADBAND OFFICE
IDENTIFIES
;
(b)  C
REATE A WORK GROUP , INCLUDING THE EXTERNAL
STAKEHOLDERS IDENTIFIED IN SUBSECTION
 (5)(a) OF THIS SECTION, TO HELP
REVIEW GRANT APPLICATIONS AND RECOMMEND PROJECTS FOR GRANT
AWARDS
;
(c)  E
STABLISH A FORMAL APPEALS PROCESS FOR GRANT
APPLICATIONS THAT ARE NOT AWARDED GRANTS
. THE SOLE REMEDY FOR AN
APPLICANT THAT PREVAILS ON APPEAL IS THE FINANCING OF THE
APPLICANT
'S PROPOSED PROJECT IN THE CURRENT OR NEXT FISCAL YEAR ,
SUBJECT TO THE AVAILABILITY OF MONEY IN THE HCSM.
PAGE 6-HOUSE BILL 24-1336 (d)  AS PART OF A GRANT APPLICATION THAT AN APPLICANT FILES OR
AS PART OF AN APPEAL OF A GRANT DECISION THAT AN APPELLANT FILES
,
REQUIRE THAT THE APPLICANT OR APPELLANT INCLUDE A SPEED TEST
PERFORMED
:
(I)  O
N AN INCUMBENT PROVIDER'S BROADBAND NETWORK ; AND
(II)  IN ACCORDANCE WITH I NDUSTRY	-STANDARD SPEED-TEST
PROTOCOLS IDENTIFIED BY THE FEDERAL COMMUNICATIONS COMMISSION
;
(e)  I
NCLUDE A FORMAL PROCESS BY WHICH THE BROADBAND OFFICE ,
ELIGIBLE APPLICANTS, AND INCUMBENT PROVIDERS MAY CHALLENGE OR
APPEAL AN APPLICANT
'S DATA INCLUDED IN THE APPLICATION TO PREVENT
THE FINANCING OF PROJECTS THAT WOULD CAUSE OVERBUILD OR
DUPLICATION OF FEDERAL OR OTHER STATE FUNDING
; AND
(f)  ESTABLISH A PROCESS FOR ENSURING THAT PROJECTS THAT ARE
AWARDED GRANTS COMPLY WITH ALL STATE AND FEDERAL BROADBAND
DEPLOYMENT REPORTING OBLIGATIONS
.
(6)  P
URSUANT TO SECTION 24-37.5-106 (4), THE CHIEF INFORMATION
OFFICER MAY PROMULGATE RULES TO IMPLEMENT THIS SECTION AND SHALL
SPECIFICALLY CONSIDER PROMULGATING RULES TO IMPLEMENT SUBSECTIONS
(2), (4), AND (5) OF THIS SECTION.
(7)  T
HE BROADBAND OFFICE MAY CONTRACT WITH A THIRD PARTY
TO PERFORM ADMINISTRATIVE FUNCTIONS RELATED TO ADMINISTERING THE
GRANT PROGRAM
.
(8)  N
OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), ON OR BEFORE
JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 OF EACH YEAR
THEREAFTER
, THE BROADBAND OFFICE SHALL SUBMIT AN ANNUAL REPORT
TO THE JOINT BUDGET COMMITTEE AND THE JOINT TEC HNOLOGY COMMITTEE
,
OR THEIR SUCCESSOR COMMITTEES , SUMMARIZING FOR THE PREVIOUS
CALENDAR YEAR
:
(a)  T
HE BROADBAND OFFICE'S GRANT ACTIVITIES; AND
(b)  HCSM EXPENDITURES MADE FOR BROADBAND DEPLOYMENT .
PAGE 7-HOUSE BILL 24-1336 (9)  THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2030.
B
EFORE THE REPEAL, THIS SECTION IS SCHEDULED FOR REVIEW IN
ACCORDANCE WITH SECTION 
24-34-104.
SECTION 4. In Colorado Revised Statutes, 6-26-101, amend (1)
and (3) as follows:
6-26-101.  Complaints to federal trade commission - attorney
general to provide guidance. (1)  The attorney general or the attorney
general's designee, in collaboration with the C
OLORADO broadband
deployment board
 OFFICE created in section 24-37.5-119 24-37.5-903 (1),
shall develop written guidance for consumers seeking to file a complaint
with the federal trade commission to allege that an internet service provider,
as defined in section 40-15-209 (4)(b), has engaged in any practice that
violates federal law regarding interference with the open internet.
(3)  The attorney general, in collaboration with the C
OLORADO
broadband deployment board OFFICE, shall update the written guidance as
needed.
SECTION 5. In Colorado Revised Statutes, 24-37.5-106, amend
(4) as follows:
24-37.5-106.  Chief information officer - duties and
responsibilities - rules. (4)  The chief information officer may promulgate
as rules pursuant to article 4 of this title 24 all of the policies, procedures,
standards, specifications, guidelines, or criteria that are developed or
approved pursuant to section 24-37.5-105 (4) and 
RULES to establish
accessibility standards for individuals with a disability pursuant to section
24-85-103 
AND TO IMPLEMENT THE BROADBAND DEPLOYMENT GRANT
PROGRAM PURSUANT TO SECTION 
24-37.5-905.
SECTION 6. In Colorado Revised Statutes, 24-72-202, repeal
(6)(b)(XV) as follows:
24-72-202.  Definitions. As used in this part 2, unless the context
otherwise requires:
(6) (b)  "Public records" does not include:
PAGE 8-HOUSE BILL 24-1336 (XV)  Granular coverage data, as defined in and submitted to the
office of information technology pursuant to section 24-37.5-119 (9)(m);
SECTION 7. In Colorado Revised Statutes, 40-15-208, amend
(2)(a)(I)(B) as follows:
40-15-208.  High cost support mechanism - Colorado high cost
administration fund - creation - purpose - operation - rules - report -
repeal. (2) (a) (I)  The commission is hereby authorized to establish a
mechanism for the support of universal service, also referred to in this
section as the "high cost support mechanism", which must operate in
accordance with rules adopted by the commission. The primary purpose of
the high cost support mechanism is to provide financial assistance as a
support mechanism to:
(B)  Provide access to broadband service in unserved 
AND
UNDERSERVED
 areas pursuant to this section and section 24-37.5-119
24-37.5-905 only.
SECTION 8. In Colorado Revised Statutes, 40-15-209, amend (1)
introductory portion, (2)(a), and (2)(c) as follows:
40-15-209.  Net neutrality conditions for internet service
providers to receive high cost support mechanism money - definitions.
(1)  Except as provided in subsection (3) of this section, an internet service
provider that is otherwise eligible to receive money through a grant from the
C
OLORADO broadband deployment board
 OFFICE pursuant to section
24-37.5-119 24-37.5-905 or through any state fund established to help
finance broadband deployment is not eligible to receive that money if the
internet service provider:
(2) (a)  If the commission learns from the C
OLORADO broadband
deployment board
 OFFICE that a federal agency has issued a final order or
entered into a settlement or consent decree regarding, or a court of
competent jurisdiction has issued a final judgment against, an internet
service provider and that the board
 OFFICE has determined from the order,
decree, or judgment that the internet service provider has engaged in
conduct specified in subsection (1) of this section, the commission shall
issue a written order to the internet service provider requiring the internet
service provider to fully refund any money that the internet service provider
PAGE 9-HOUSE BILL 24-1336 received in the twenty-four months preceding the board's OFFICE'S
determination from the high cost support mechanism pursuant to a grant
awarded by the C
OLORADO broadband deployment board
 OFFICE under
section 24-37.5-119 24-37.5-905.
(c)  The third-party contractor that maintains the high cost support
mechanism shall allocate any money refunded to the high cost support
mechanism pursuant to this subsection (2) to the high cost support
mechanism account dedicated to broadband deployment, which account is
described in section 24-37.5-119 (3)
 24-37.5-905.
SECTION 9. In Colorado Revised Statutes, 40-15-502, amend
(5)(a) as follows:
40-15-502.  Expressions of state policy. (5)  Universal service
support mechanisms. (a)  In order to accomplish the goals of universal
basic service, universal access to advanced service under section
24-37.5-119
 24-37.5-905, and any revision of the definition of basic service
under subsection (2) of this section, the commission shall create a system
of support mechanisms to assist in the provision of basic service and
advanced service in high-cost areas. The commission shall fund these
support mechanisms equitably and on a nondiscriminatory, competitively
neutral basis through assessments, which may include a rate element, on all
telecommunications providers in Colorado. A provider's eligibility to
receive support for basic service under the support mechanisms is
conditioned upon the provider's offering basic service throughout an entire
support area.
SECTION 10. Appropriation - adjustments to 2024 long bill.
(1)  To implement this act, appropriations made in the annual general
appropriation act for the 2024-25 state fiscal year to the office of the
governor are adjusted as follows:
(a)  The cash funds appropriation from various sources of cash funds
for the office of information technology for health, life, and dental is
decreased by $25,826;
(b)  The cash funds appropriation from various sources of cash funds
for the office of information technology for enterprise solutions is decreased
by $254,276, and the related FTE is decreased by 2.0 FTE.
PAGE 10-HOUSE BILL 24-1336 SECTION 11. Act subject to petition - effective date. This act
takes effect September 1, 2024; except that, if a referendum petition is filed
pursuant to section 1 (3) of article V of the state constitution against this act
or an item, section, or part of this act within the ninety-day period after final
adjournment of the general assembly, then the act, item, section, or part will
not take effect unless approved by the people at the general election to be
held in November 2024 and, in such case, will take effect on the date of the
official declaration of the vote thereon by the governor.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 11-HOUSE BILL 24-1336