House File 551 - Introduced HOUSE FILE 551 BY THOMSON A BILL FOR An Act relating to the advertised and delivered speeds of 1 broadband services provided by communication service 2 providers, and providing civil penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2898YH (3) 91 nls/ko
H.F. 551 Section 1. NEW SECTION . 554I.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. Broadband services means a high-speed, high-capacity 4 electronic transmission medium, including fixed wireless and 5 mobile wireless mediums, that can carry data signals from 6 independent network sources by establishing different bandwidth 7 channels and that is commonly used to deliver internet services 8 to the public. 9 2. Communications service provider means a service 10 provider that provides broadband services to persons residing 11 in this state. 12 3. Customer means a person residing in this state who 13 receives broadband services from a communications service 14 provider. 15 Sec. 2. NEW SECTION . 554I.2 Communications service 16 providers reports. 17 Within thirty days after the end of each quarter, each 18 communications service provider shall provide each customer 19 with a report that includes all of the following: 20 1. The maximum download speed and maximum upload speed of 21 broadband services that the communications service provider 22 advertised as being available in the customers geographic area 23 during the quarter. 24 2. For each hour in the quarter, the maximum download 25 speed and maximum upload speed of broadband services that the 26 communications service provider contracted to provide to the 27 customer. 28 3. For each hour in the quarter, the maximum download 29 speed and maximum upload speed of broadband services that 30 the communications service provider actually provided to the 31 customer. 32 4. For each hour in the quarter, the difference between 33 the maximum download speed of broadband services that the 34 communications service provider contracted to provide to the 35 -1- LSB 2898YH (3) 91 nls/ko 1/ 5
H.F. 551 customer and the maximum download speed of broadband services 1 that the communications service provider actually provided to 2 the customer. 3 5. For each hour in the quarter, the difference between 4 the maximum upload speed of broadband services that the 5 communications service provider contracted to provide to the 6 customer and the maximum upload speed of broadband services 7 that the communications service provider actually provided to 8 the customer. 9 Sec. 3. NEW SECTION . 554I.3 Communications service 10 providers refunds. 11 1. a. A communications service provider shall provide a 12 refund credit on a prorated basis to a customer for each hour 13 in the quarter that the maximum download speed of broadband 14 services that the communications service provider actually 15 provided to the customer is less than the maximum download 16 speed of broadband services that the communications service 17 contracted to provide to the customer. 18 b. A communications service provider shall provide a refund 19 credit on a prorated basis to a customer for each hour in the 20 quarter that the maximum upload speed of broadband services 21 that the communications service provider actually provided to 22 the customer is less than the maximum upload speed of broadband 23 services that the communications service provider contracted to 24 provide to the customer. 25 2. In addition to the refund credits described in subsection 26 1, a communications service provider shall provide a refund 27 credit on a prorated basis to a customer for each day in the 28 quarter that the maximum download speed or maximum upload speed 29 of broadband services that the communications service provider 30 actually provided to the customer is less than the maximum 31 download speed or maximum upload speed of broadband services 32 that the communications service provider contracted to provide 33 to the customer. 34 Sec. 4. NEW SECTION . 554I.4 Communications service 35 -2- LSB 2898YH (3) 91 nls/ko 2/ 5
H.F. 551 providers enforcement penalties. 1 1. A customer or the attorney general may seek judicial 2 enforcement of the requirements of this chapter in a civil 3 action brought against a communications service provider. If 4 the customer or the attorney general is the prevailing party 5 in the civil action, the court shall assess a civil penalty 6 against the communications service provider in an amount equal 7 to two times the sum of the refund credits owed to the customer 8 under section 554I.3, subsection 1, plus the refund credits 9 owed to the customer under section 554I.3, subsection 2. 10 2. Revenue from the civil penalties assessed in subsection 11 1 shall be remitted annually to the treasurer of state for 12 deposit in the general fund of the state. For the fiscal year 13 beginning July 1, 2025, and for each succeeding fiscal year, 14 the moneys deposited in the general fund of the state pursuant 15 to this paragraph are appropriated as follows: 16 a. The first ten million dollars are appropriated to 17 the economic development authority for all of the following 18 purposes: 19 (1) For salaries, support, miscellaneous purposes, 20 programs, marketing, and the maintenance of an administration 21 division, a business development division, a community 22 development division, a small business development division, 23 and other divisions the authority may organize. 24 (2) For business development operations and programs, 25 international trade, export assistance, workforce recruitment, 26 and the partner state program. 27 (3) For transfer to a fund created pursuant to section 28 15.313 for purposes of financing strategic infrastructure 29 projects. 30 (4) For community economic development programs, tourism 31 operations, community assistance, plans for Iowa green corps 32 and summer youth programs, the main street and rural main 33 street programs, the school-to-career program, the community 34 development block grant, and housing and shelter-related 35 -3- LSB 2898YH (3) 91 nls/ko 3/ 5
H.F. 551 programs. 1 b. Total moneys in excess of the moneys appropriated under 2 paragraph a are appropriated to the office of the state 3 public defender of the department of inspections, appeals, 4 and licensing for payments on behalf of eligible adults and 5 juveniles from the indigent defense fund, in accordance with 6 section 815.11. 7 3. Notwithstanding section 8.33, moneys appropriated in 8 subsection 2 that remain unencumbered or unobligated at the 9 close of the fiscal year shall not revert but shall remain 10 available for expenditure for the purposes designated. 11 Sec. 5. NEW SECTION . 554I.5 Communications service 12 providers audits. 13 Each communications service provider shall engage the 14 services of an independent contractor, at the communications 15 service providers sole expense and subject to the approval 16 of the attorney general, to audit the communications service 17 providers compliance with this section and to verify the 18 maximum download speed and maximum upload speed of the 19 broadband services provided by the communications service 20 provider. 21 Sec. 6. NEW SECTION . 554I.6 Rules. 22 The attorney general shall adopt rules pursuant to chapter 23 17A to administer this chapter. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanations substance by the members of the general assembly. 27 This bill relates to the advertised and delivered speeds of 28 broadband services provided by communication service providers. 29 The bill requires a communications service provider 30 (provider) to provide each customer with a report at the 31 end of each quarter. Communications service provider is 32 defined in the bill. The report shall include the maximum 33 download and upload speeds of broadband services (broadband) 34 advertised by the provider and, for each hour in the quarter, 35 -4- LSB 2898YH (3) 91 nls/ko 4/ 5
H.F. 551 the maximum download and upload speeds of broadband that the 1 provider contracted to provide; the actual maximum download 2 and upload speeds of broadband provided to the customer; and 3 the difference between the maximum download and upload speeds 4 of broadband that the provider contracted to provide to the 5 customer and the maximum download and upload speeds actually 6 provided. Broadband services and customer are defined in 7 the bill. 8 The bill requires a provider to provide a refund credit on 9 a prorated basis to a customer for each hour in the quarter 10 that the maximum download or upload speed of broadband actually 11 provided to the customer is less than the maximum download or 12 upload speed of broadband the provider contracted to provide. 13 The bill grants the attorney general authority to seek 14 judicial enforcement of the bill. A court may assess a civil 15 penalty against a provider in an amount equal to two times 16 the sum of the refund credits to be provided to a customer. 17 Revenue from the civil penalties shall be remitted to the 18 treasurer for deposit in the general fund, to be appropriated 19 as detailed in the bill. 20 The bill requires a provider to hire an independent 21 contractor to audit the providers compliance with the bill 22 and to verify the maximum download and upload speeds of the 23 broadband provided by the provider. 24 The attorney general shall adopt rules to administer the 25 bill. 26 -5- LSB 2898YH (3) 91 nls/ko 5/ 5