Kentucky 2022 2022 Regular Session

Kentucky House Bill HB294 Introduced / Bill

                    UNOFFICIAL COPY  	22 RS BR 1483 
Page 1 of 4 
XXXX  	Jacketed 
AN ACT relating to broadband service. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
Section 1.   KRS 154.15-010 is amended to read as follows: 3 
As used in this subchapter: 4 
(1) "Authority" means the Kentucky Communications Network Authority; 5 
(2) "Board" means the Board of the Kentucky Communications Network Authority; 6 
(3) "Broadband service" means any wireline or fixed wireless technology having a 7 
capacity to transmit data from or to the Internet with a minimum speed of twenty-8 
five (25) megabits per second downstream and three (3) megabits per second 9 
upstream; 10 
(4) "Eligible entity" means any nonpublic entity authorized to provide broadband 11 
service in Kentucky; 12 
(5) "Executive director" means the executive director of the Kentucky Communications 13 
Network Authority; 14 
(6)[(4)] "Network" or "KentuckyWired" means the Commonwealth's open-access 15 
broadband network;[ and] 16 
(7)[(5)] "Partnership" means the public-private partnership entered into between the 17 
Commonwealth and a private entity or entities for the purpose of creating, running, 18 
and maintaining the network: 19 
(8) "Unserved area" means a geographical area without access to broadband service 20 
on the effective date of this Act or any time thereafter; and 21 
(9) "Wholesale network access" means any lease or sale of excess network capacity 22 
by the authority or any entity in partnership with the authority to any public or 23 
private entity. 24 
Section 2.   KRS 154.15-020 is amended to read as follows: 25 
(1) The Kentucky Communications Network Authority is established and shall be 26 
attached to the Office of the Governor. The authority shall be headed by an 27  UNOFFICIAL COPY  	22 RS BR 1483 
Page 2 of 4 
XXXX  	Jacketed 
executive director who shall be hired by the board and approved by the Governor. 1 
(2) Notwithstanding KRS 42.726, the duties of the authority shall be to: 2 
(a) Oversee and maintain KentuckyWired, the Commonwealth's open-access 3 
broadband network; 4 
(b) Manage the master agreement establishing the public-private partnership 5 
between the Commonwealth and its private industry partner or partners. The 6 
purpose of the agreement is to design, engineer, build, operate, maintain, and 7 
upgrade the network; 8 
(c) Provide network connectivity to public agencies; 9 
(d) Offer wholesale network access to eligible entities[ eligible] to utilize excess 10 
capacity on the network only in unserved areas; 11 
(e) Manage other aspects of the network and its utilization through the executive 12 
director and with oversight and input from the board established in KRS 13 
154.15-030 and the advisory group established in this section; 14 
(f) Promulgate administrative regulations pursuant to KRS Chapter 13A 15 
necessary to implement the purposes of this subchapter; 16 
(g) Enter into contracts with public and private entities to carry out its duties and 17 
responsibilities. A contract or other agreement involving the acquisition or 18 
disposition of a property interest by the Commonwealth shall be signed by the 19 
secretary of the Finance and Administration Cabinet. KRS Chapters 45A and 20 
56 may require the secretary's signature on other contracts or agreements; 21 
(h) Provide program management services ensuring the financial viability of the 22 
master agreement and related contracts and agreements, including grant 23 
administration, contract compliance and oversight, community planning 24 
support, and constituent services; 25 
(i) Seek out, secure, and manage funding sources for the network; and 26 
(j) Create an advisory group, including major stakeholders, to provide input and 27  UNOFFICIAL COPY  	22 RS BR 1483 
Page 3 of 4 
XXXX  	Jacketed 
feedback on issues important to the user community and to the long-term 1 
sustainability of the project and the network. The advisory group shall be 2 
administratively attached to and managed by the authority. The advisory group 3 
shall include but not be limited to representatives of: 4 
1. The Department of Education; 5 
2. The Council on Postsecondary Education; 6 
3. The Cabinet for Economic Development; 7 
4. The Cabinet for Health and Family Services; 8 
5. The Transportation Cabinet; 9 
6. The Justice and Public Safety Cabinet; 10 
7. The Finance and Administration Cabinet; 11 
8. The Administrative Office of the Courts; 12 
9. The Legislative Research Commission; 13 
10. Institutions of higher education; 14 
11. Local government entities; 15 
12. Libraries; 16 
13. Public health care institutions or agencies; 17 
14. Kentucky Educational Television; and 18 
15. Others whose input will benefit the network. 19 
(3) With the approval of the board, the executive director may hire additional officers 20 
and other personnel necessary for the proper functioning of the authority, fix their 21 
salaries, and prescribe their duties. The executive director and persons employed by 22 
the authority shall not be subject to the provisions of KRS Chapter 18A. 23 
(4) (a) With the approval of the board, the executive director may make, execute, and 24 
effectuate contracts, leveraging future revenues from provision of 25 
government-to-government services and sale or lease of excess capacity, to 26 
incur debt in the name of the authority and enter into financing agreements 27  UNOFFICIAL COPY  	22 RS BR 1483 
Page 4 of 4 
XXXX  	Jacketed 
with the Commonwealth, agencies of the Commonwealth, lending 1 
institutions, investors, or investing entities. 2 
(b) The total amount of debt or financing under this subsection shall not exceed 3 
one hundred ten million dollars ($110,000,000), and shall not leverage any 4 
future revenues committed to the repayment of any other debt, or expected to 5 
be used for the repayment of any other debt, as of the time the debt or 6 
financing is entered into. 7 
(c) Any proposed debt or financing under this subsection shall be submitted to the 8 
Capital Projects and Bond Oversight Committee for review at least fourteen 9 
(14) days prior to the committee meeting. 10 
(d) If any debt or financing is incurred under this subsection, the authority shall 11 
provide to the Legislative Research Commission:  12 
1. Within thirty (30) days of entering into a debt or financing agreement, a 13 
copy of the agreement; and 14 
2. On January 1, April 1, July 1, and October 1 of each year that the debt or 15 
financing is outstanding: 16 
a. The amount of principal and interest remaining on the debt or 17 
financing; 18 
b. The use to which the capital gained from the debt or financing has 19 
been put; and 20 
c. Any amendments, if any, to the original debt or financing 21 
instruments or agreements. 22