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AN ACT relating to broadband deployment, making an appropriation therefor, and 1
declaring an emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
SECTION 1. A NEW SECTION OF KRS CHAPTER 224A IS CREATED TO 4
READ AS FOLLOWS: 5
(1) There is established the Office of Broadband Development, which shall: 6
(a) Be administratively attached to the Kentucky Infrastructure Authority; 7
(b) Encourage, foster, develop, and improve broadband within the 8
Commonwealth to: 9
1. Drive job creation, promote innovation, and expand markets for 10
Kentucky businesses; and 11
2. Serve the ongoing and growing needs of Kentucky's: 12
a. Agricultural, educational, health care, and public safety systems; 13
b. Industries and businesses; 14
c. Governmental operations; and 15
d. Citizens; 16
(c) Improve broadband accessibility for unserved communities and 17
populations; 18
(d) Develop, coordinate, administer, and implement the Commonwealth's 19
broadband deployment fund under Section 3 of this Act; 20
(e) Perform all administrative functions necessary to carry out the purposes of 21
this section; 22
(f) On behalf of the Commonwealth, serve as: 23
1. The central broadband planning and coordination entity; 24
2. The single point of contact and liaison to federal agencies and 25
programs regarding broadband issues, including: 26
a. National Telecommunications and Information Administration; 27 UNOFFICIAL COPY 22 RS HB 315/GA
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b. Federal Communications Commission; 1
c. United States Department of Agriculture Rural Utilities Service; 2
and 3
d. United States Treasury; 4
3. An information clearinghouse for federal programs providing 5
financial assistance to institutions located in rural areas seeking to 6
obtain access to broadband; 7
(g) Coordinate with other state, regional, local, and private entities to: 8
1. Develop and implement a statewide broadband plan, including 9
relevant goals and objectives; 10
2. Develop and encourage cost-effective broadband; 11
3. Make recommendations for broadband infrastructure development, 12
particularly in rural and unserved areas; and 13
4. Provide consultation services to local units of government or other 14
project sponsors in connection with the planning, acquisition, 15
improvement, construction, or development of any broadband 16
deployment project; 17
(h) Monitor the broadband development efforts of other states and nations; 18
(i) Develop and improve carrier-neutral colocation, interconnection, and 19
content delivery network infrastructure, including the development of data 20
centers and neutral Internet exchange point facilities; 21
(j) Maintain data and statistics on broadband throughout the Commonwealth 22
by: 23
1. Collecting broadband availability data from Kentucky broadband 24
providers and other sources on a street address or location-specific 25
basis; 26
2. Verifying the accuracy of that data through on-the-ground testing; 27 UNOFFICIAL COPY 22 RS HB 315/GA
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3. Creating and maintaining a statewide interactive map displaying 1
broadband availability, which shall be available for public and state 2
government use online; 3
4. Analyzing the deployment data collected to inform and guide future 4
investments in broadband infrastructure, including moneys expended 5
under the broadband deployment fund; 6
5. Empirically validating, on a targeted basis, the accuracy of broadband 7
data that is routinely collected by the Federal Communications 8
Commission to pinpoint areas of overstatement and understatement 9
that may exist; and 10
6. Challenging the validity of the data as may be warranted, on behalf of 11
the Commonwealth, to ensure that this state is receiving its due share 12
of funding from federal broadband programs; and 13
(k) Perform other duties and responsibilities as necessary to promote the 14
development of broadband within the Commonwealth. 15
(2) The office shall have all the power, not explicitly prohibited by statute, necessary 16
and convenient to carry out and effectuate the purposes of this section, including: 17
(a) Entering into contracts or agreements necessary or incidental to the 18
performance of its duties, functions, and responsibilities; and 19
(b) Soliciting, borrowing, accepting, receiving, and expending funds from any 20
public or private source, property, labor, or other things of value to be used 21
to carry out the office's operations, functions, and responsibilities. 22
(3) (a) The authority may contract with a private nonprofit corporation with at 23
least five (5) years of broadband and telecommunications public policy 24
research and mapping experience to fulfill the purposes, duties, and 25
responsibilities of the office as required in subsections (1) and (2) of this 26
section. 27 UNOFFICIAL COPY 22 RS HB 315/GA
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(b) If the authority exercises its option to contract with an entity to fulfill the 1
office's obligations under this section, the procurement shall not abrogate 2
the authority from fulfilling the office's duties or achieving the timelines for 3
issuing grants in Section 4 of this Act. 4
(4) The authority shall report the activities of the office to the Legislative Research 5
Commission on a semiannual basis, each January 1 and each July 1. 6
Section 2. KRS 224A.011 is amended to read as follows: 7
As used in this chapter, unless the context requires otherwise: 8
(1) "Administrative fee" means a fee assessed and collected by the authority from 9
borrowers and applicants under assistance agreements, to be used for operational 10
expenses of the authority; 11
(2) "Applicable interest rate" means the rate of interest which shall be used as part of 12
the repayment criteria for an assistance agreement between a governmental agency 13
and the authority, and shall be determined by the authority pertinent to the source of 14
funds from which the assistance agreement is funded; 15
(3) "Applicant" means a governmental agency or private sector entity that has 16
submitted an application to the office[authority] for a grant from the broadband 17
deployment fund; 18
(4) "Application" means an application submitted by an applicant for a grant from the 19
broadband deployment fund; 20
(5) "Assistance agreement" means the agreement to be made and entered into by and 21
between a governmental agency or a private entity and the authority, as authorized 22
by this chapter, providing for a lease, loan, services, or grant to a governmental 23
agency or a private entity or for the purchase of obligations issued by the 24
governmental agency, and for the repayment thereof to the authority by the 25
governmental agency or a private entity; 26
(6) "Authority" means the Kentucky Infrastructure Authority, which is created by this 27 UNOFFICIAL COPY 22 RS HB 315/GA
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chapter; 1
(7) "Authority revenues" means the totality of all: 2
(a) Service charges; 3
(b) Utility tax receipts, to the extent not otherwise committed and budgeted by the 4
authority during any fiscal period of the authority; 5
(c) Any gifts, grants, or loans received, to the extent not otherwise required to be 6
applied; 7
(d) Any and all appropriations made to the authority by the General Assembly of 8
the Commonwealth of Kentucky, to the extent not otherwise required to be 9
applied; 10
(e) All moneys received in repayment of and for interest on any loans made by the 11
authority to a governmental agency, except as provided in KRS 224A.111, 12
224A.1115, and 224A.112, or as principal of and interest on any obligations 13
issued by a governmental agency and purchased by the authority, or as receipts 14
under any assistance agreement; 15
(f) The proceeds of bonds or long-term debt obligations of governmental 16
agencies pledged to the payment of bond anticipation notes issued by the 17
authority on behalf of the said governmental agency to provide interim 18
construction financing; and 19
(g) Payments under agreements with any agencies of the state and federal 20
government; 21
(8) "Borrower or borrowing entity" means any agency of the state or its political 22
subdivisions, any city, or any special district created under the laws of the state 23
acting individually or jointly under interagency or interlocal cooperative agreements 24
to enter into assistance agreements with the authority; 25
(9) "Broadband" means any wireline[ or fixed terrestrial] technology having a capacity 26
to transmit data from or to the Internet with a minimum speed of one hundred 27 UNOFFICIAL COPY 22 RS HB 315/GA
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(100)[twenty-five (25)] megabits per second downstream and twenty (20)[three (3)] 1
megabits per second upstream or a faster speed as defined by the Federal 2
Communications Commission, the United States Treasury, the National 3
Telecommunications and Information Administration, or the United States 4
Department of Agriculture and any amendments to those definitions. If the agencies 5
use different speed definitions, the faster speed definition shall apply to KRS 6
224A.110, 224A.112, and 224A.1121; 7
(10) "Broadband deployment fund" means a fund to assist with the construction, 8
development, or improvement of broadband infrastructure, broadband services, or 9
technologies that constitute a part of, or are related to, broadband infrastructure or 10
broadband services, to provide for broadband service in[ underserved or] unserved 11
areas of the Commonwealth; 12
(11) "Broadband deployment project" means a proposed deployment of broadband 13
service infrastructure set forth in an application for grant funding under KRS 14
224A.112; 15
(12) "Broadband deployment project area" means a geographic area determined by 16
census block,[ or] shapefile geospatial data, or list of addresses[ for] which has 17
been proposed for grant funding[ has been authorized] under this section and KRS 18
224A.110, 224A.112, and 224A.1121; 19
(13) "Census block" means the smallest geographic unit used by the United States 20
Census Bureau that is reported on the Federal Communications Commission (FCC) 21
Form 477 relating to fixed broadband deployment data; 22
(14) "Community flood damage abatement project" means any structural or nonstructural 23
study, plan, design, construction, development, improvement, or other activity to 24
provide for flood control; 25
(15) "Construction" means and includes but is not limited to: 26
(a) Preliminary planning to determine the economic and engineering feasibility of 27 UNOFFICIAL COPY 22 RS HB 315/GA
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infrastructure projects, the engineering, architectural, legal, fiscal, and 1
economic investigations, and studies necessary thereto, and surveys, designs, 2
plans, working drawings, specifications, procedures, and other actions 3
necessary to the construction of infrastructure or solid waste projects; 4
(b) The erection, building, acquisition, alteration, remodeling, improvement, or 5
extension of infrastructure or solid waste projects; and 6
(c) The inspection and supervision of the construction of infrastructure or solid 7
waste projects and all costs incidental to the acquisition and financing of 8
same. This term shall also relate to and mean any other physical devices or 9
appurtenances in connection with, or reasonably attendant to, infrastructure or 10
solid waste projects; 11
(16) "Dams" means any artificial barrier, including appurtenant works, which does or 12
can impound or divert water, and which either: 13
(a) Is or will be twenty-five (25) feet or more in height from the natural bed of the 14
stream or watercourse at the downstream toe of the barrier, as determined by 15
the Energy and Environment Cabinet; or 16
(b) Has or will have an impounding capacity at maximum water storage elevation 17
of fifty (50) acre feet or more; 18
(17) "Distribution facilities" means all or any part of any facilities, devices, and systems 19
used and useful in obtaining, pumping, storing, treating, and distributing water for 20
agricultural, industrial, commercial, recreational, public, and domestic use; 21
(18) "Energy and Environment Cabinet" means the Kentucky Energy and Environment 22
Cabinet, or its successor, said term being meant to relate specifically to the state 23
agency which is designated as the water pollution agency for the Commonwealth of 24
Kentucky, for purposes of the federal act; 25
(19) "Federal act" means the Federal Clean Water Act (33 U.S.C. secs. 1251 et seq.) as 26
said federal act may be amended from time to time in the future, or any other 27 UNOFFICIAL COPY 22 RS HB 315/GA
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enactment of the United States Congress providing funds that may assist in carrying 1
out the purposes of the authority; 2
(20) "Federally assisted wastewater revolving fund" means that fund which will receive 3
federal and state funds or the proceeds from the sale of revenue bonds of the 4
authority for the purpose of providing loans to finance construction of publicly 5
owned treatment works as defined in Section 212 of the federal act and for the 6
implementation of a management program established under Section 319 of the 7
federal act and for the development and implementation of a conservation and 8
management plan under Section 320 of the federal act; 9
(21) "Governmental agency" means any incorporated city or municipal corporation, or 10
other agency, or unit of government within or a department or a cabinet of the 11
Commonwealth of Kentucky, now having or hereafter granted, the authority and 12
power to finance, acquire, construct, or operate infrastructure or solid waste 13
projects. This definition shall specifically apply but not by way of limitation to 14
incorporated cities; counties, including any counties containing a metropolitan 15
sewer district; sanitation districts; water districts; water associations if these 16
associations are permitted to issue interest-bearing obligations which interest would 17
be excludable from gross income under Section 103 of the Internal Revenue Code 18
of 1986 as amended; sewer construction districts; metropolitan sewer districts; 19
sanitation taxing districts; a regional wastewater commission established under 20
KRS 65.8901 to 65.8923; and any other agencies, commissions, districts, or 21
authorities (either acting alone, or in combination with one another in accordance 22
with any regional or area compact, or intergovernmental cooperative agreements), 23
now or hereafter established in accordance with the laws of the Commonwealth of 24
Kentucky having and possessing the described powers described in this subsection; 25
(22) "Industrial waste" means any liquid, gaseous, or solid waste substances resulting 26
from any process of industry, manufacture, trade, or business, or from the mining or 27 UNOFFICIAL COPY 22 RS HB 315/GA
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taking, development, processing, or recovery of any natural resources, including 1
heat and radioactivity, together with any sewage as is present therein, which 2
pollutes the waters of the state, and specifically, but not by way of limitation, means 3
heat or thermal differentials created in the waters of the state by any industrial 4
processing, generating, or manufacturing processes; 5
(23) "Infrastructure project" means any construction or acquisition of treatment works, 6
facilities related to the collection, transportation, and treatment of wastewater as 7
defined in KRS 65.8903, distribution facilities, or water resources projects instituted 8
by a governmental agency or an investor-owned water utility which is approved by 9
the authority and, if required, by the Energy and Environment Cabinet, Public 10
Service Commission, or other agency; solid waste projects; dams; storm water 11
control and treatment systems; gas or electric utility; broadband deployment project; 12
or any other public utility or public service project which the authority finds would 13
assist in carrying out the purposes set out in KRS 224A.300; 14
(24) "Infrastructure revolving fund" means that fund which will receive state funds, the 15
proceeds from the sale of revenue bonds of the authority or other moneys earmarked 16
for that fund for the purpose of providing loans or grants to finance construction or 17
acquisition of infrastructure projects as defined in this section; 18
(25) "Loan or grant" means moneys to be made available to governmental agencies by 19
the authority for the purpose of defraying all or any part of the total costs incidental 20
to construction or acquisition of any infrastructure project; 21
(26) "Market interest rate" means the interest rate determined by the authority under 22
existing market conditions at the time the authority shall provide financial 23
assistance to a governmental agency; 24
(27) "Obligation of a governmental agency" means a revenue bond, bond anticipation 25
note, revenue anticipation note, lease, or other obligation issued by a governmental 26
agency under KRS 58.010 et seq. or other applicable statutes; 27 UNOFFICIAL COPY 22 RS HB 315/GA
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(28) "Office" means the Office of Broadband Development; 1
(29) "Person" means any individual, firm, partnership, association, corporation, or 2
governmental agency; 3
(30)[(29)] "Pollution" means the placing of any noxious or deleterious substances 4
("pollutants"), including sewage and industrial wastes, in any waters of the state or 5
affecting the properties of any waters of the state in a manner which renders the 6
waters harmful or inimical to the public health or to animal or aquatic life, or to the 7
use, present or future, of these waters for domestic water supply, industrial or 8
agricultural purposes, or recreational purposes; 9
(31)[(30)] "Prioritization schedules" means the list of wastewater treatment works, 10
distribution facilities and water resources projects which the Energy and 11
Environment Cabinet has evaluated and determined to be of priority for receiving 12
financial assistance from the federally assisted wastewater revolving fund and the 13
federally assisted drinking water revolving fund, or the list of infrastructure projects 14
which the authority has evaluated and determined to be of priority for receiving 15
financial aid from the infrastructure revolving fund. The evaluation by the authority 16
of infrastructure projects for water systems shall be undertaken with input from the 17
appropriate area development district; 18
(32)[(31)] "Recovered material" means those materials which have known current use, 19
reuse, or recycling potential, which can be feasibly used, reused, or recycled, and 20
which have been diverted or removed from the solid waste stream for sale, use, 21
reuse, or recycling, whether or not requiring subsequent separation and processing 22
but does not include materials diverted or removed for purposes of energy recovery 23
or combustion except refuse-derived fuel (RDF), which shall be credited as a 24
recovered material in an amount equal to that percentage of the municipal solid 25
waste received on a daily basis at the processing facility and processed into RDF; 26
but not to exceed fifteen percent (15%) of the total amount of the municipal solid 27 UNOFFICIAL COPY 22 RS HB 315/GA
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waste received at the processing facility on a daily basis; 1
(33)[(32)] "Recovered material processing facility" means a facility engaged solely in the 2
storage, processing, and resale or reuse of recovered material but does not mean a 3
solid waste facility if solid waste generated by a recovered material processing 4
facility is managed in accordance with KRS Chapter 224 and administrative 5
regulations adopted by the cabinet; 6
(34)[(33)] "Revenue bonds" means special obligation bonds issued by the authority as 7
provided by the provisions of this chapter, which are not direct or general 8
obligations of the state, and which are payable only from a pledge of, and lien upon, 9
authority revenues as provided in the resolution authorizing the issuance of the 10
bonds, and shall include revenue bond anticipation notes; 11
(35)[(34)] "Service charge" means any monthly, quarterly, semiannual, or annual charge 12
to be imposed by a governmental agency, or by the authority, for any infrastructure 13
project financed by the authority, which service charge arises by reason of the 14
existence of, and requirements of, any assistance agreement; 15
(36)[(35)] "Sewage" means any of the waste products or excrements, or other discharges 16
from the bodies of human beings or animals, which pollute the waters of the state; 17
(37)[(36)] "Shapefile" means a file format for storing, depicting, and analyzing 18
geospatial data showing broadband coverage; 19
(38)[(37)] "Solid waste" means "solid waste" as defined by KRS 224.1-010(30)(a); 20
(39)[(38)] "Solid waste facility" means any facility for collection, handling, storage, 21
transportation, transfer, processing, treatment, or disposal of solid waste, whether 22
the facility is associated with facilities generating the waste or otherwise, but does 23
not include a container located on property where the waste is generated and which 24
is used solely for the purpose of collection and temporary storage of that solid waste 25
prior to off-site disposal, or a recovered material processing facility; 26
(40)[(39)] "Solid waste project" means construction, renovation, or acquisition of a solid 27 UNOFFICIAL COPY 22 RS HB 315/GA
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waste facility which shall be instituted and owned by a governmental agency; 1
(41)[(40)] "Solid waste revolving fund" means that fund which shall receive state funds, 2
the proceeds from the sale of revenue bonds of the authority, or other moneys 3
earmarked for the purpose of providing loans or grants to finance solid waste 4
projects defined in this section; 5
(42)[(41)] "State" means the Commonwealth of Kentucky; 6
(43)[(42)] "System" means the system owned and operated by a governmental agency 7
with respect to solid waste projects, treatment works, or infrastructure projects 8
financed as provided by the assistance agreement between the governmental agency 9
and the authority; 10
(44)[(43)] "Treatment works" or "wastewater treatment works" means all or any part of 11
any facilities, devices, and systems used and useful in the storage, treatment, 12
recycling, and reclamation of wastewater or the abatement of pollution, including 13
facilities for the treatment, neutralization, disposal of, stabilization, collecting, 14
segregating, or holding of wastewater, including without limiting the generality of 15
the foregoing, intercepting sewers, outfall sewers, pumping power stations, and 16
other equipment and their appurtenances; extensions, improvements, remodeling, 17
additions, and alterations thereof, and any wastewater treatment works, including 18
site acquisition of the land that will be an integral part of the wastewater treatment 19
process, or is used for ultimate disposal of residues resulting from wastewater 20
treatment, together with any other facilities which are deemed to be treatment works 21
in accordance with the federal act; 22
[(44) "Underserved area" means any project area where fixed, terrestrial broadband 23
service with a minimum twenty-five (25) megabits per second downstream and 24
three (3) megabits per second upstream is not available;] 25
(45) "Unserved area" means any project area where[ fixed, terrestrial] broadband service 26
with a minimum twenty-five (25)[ten (10)] megabits per second downstream and 27 UNOFFICIAL COPY 22 RS HB 315/GA
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three (3) megabits[one (1) megabit] per second upstream is not available; 1
(46) "Utility tax" means the tax which may be imposed by the authority on every 2
purchase of water or sewer service in the Commonwealth of Kentucky; 3
(47) "Variable rate revenue bonds" means revenue bonds the rate of interest on which 4
fluctuates either automatically by reference to a predetermined formula or index or 5
in accordance with the standards set forth in KRS 224A.120; 6
(48) "Wastewater" means any water or liquid substance containing sewage, industrial 7
waste, or other pollutants or contaminants derived from the prior use of these 8
waters; 9
(49) "Water resources" means all waters of the state occurring on the surface, in natural 10
or artificial channels, lakes, reservoirs, or impoundments, and in subsurface 11
aquifers, which are available, or which may be made available to agricultural, 12
industrial, commercial, recreational, public, and domestic users; 13
(50) "Water resources project" means any structural or nonstructural study, plan, design, 14
construction, development, improvement, or any other activity including programs 15
for management, intended to conserve and develop the water resources of the state 16
and shall include all aspects of water supply, facilities to collect, transport, and treat 17
wastewater as defined in KRS 65.8903, flood damage abatement, navigation, water-18
related recreation, and land conservation facilities and measures; and 19
(51) "Waters of the state" means all streams, lakes, watercourses, waterways, ponds, 20
marshes, wells, springs, irrigation systems, drainage systems, and all other bodies or 21
accumulations of water, surface and underground, natural or artificial, which are 22
situated wholly or partly within, or border upon, this state, or are within its 23
jurisdiction, except those private waters which do not combine or effect a junction 24
with natural, surface, or underground waters. 25
Section 3. KRS 224A.112 is amended to read as follows: 26
(1) The infrastructure revolving fund shall be established in the State Treasury and shall 27 UNOFFICIAL COPY 22 RS HB 315/GA
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be administered by the authority. The fund shall be a dedicated fund, and all moneys 1
in the fund shall be allocated and dedicated solely to providing financial assistance 2
to governmental agencies, and investor-owned water systems as provided for in 3
KRS 96.540, 224A.306, 224A.308, and 224A.310, for the construction or 4
acquisition of infrastructure projects through an account designated as the 2020 5
water service account. 6
(2) The broadband deployment fund shall be established in the State Treasury and shall 7
be administered by the office[authority]. The fund shall be a dedicated fund, and all 8
moneys in the fund shall be allocated and dedicated solely to providing grant funds 9
to governmental agencies and private sector entities to construct infrastructure for 10
the deployment of broadband service to households and businesses in[ underserved 11
or] unserved areas of the Commonwealth through an account designated as the 12
broadband deployment fund. 13
(3) Funds in subsections (1) and (2) of this section shall not be commingled and shall 14
be used only for the stated purposes in subsections (1) and (2) of this section. 15
(4) The financial assistance which may be provided by the revolving fund shall be 16
limited to: 17
(a) Making loans, on the condition that the loans are made at or below market 18
interest rates, including interest free loans, at terms not to exceed thirty (30) 19
years and that the fund will be credited with all payments of principal and 20
interest on all loans; 21
(b) Purchasing or guaranteeing, or purchasing insurance for, local or state 22
obligations when the action would improve credit market access or reduce 23
interest rates; 24
(c) Providing a source of revenue or security for the payment of principal and 25
interest on bonds or notes issued by the authority or other agencies of the state 26
if the proceeds of the sale of the bonds will be deposited in the fund; 27 UNOFFICIAL COPY 22 RS HB 315/GA
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(d) Providing moneys with which to carry out the requirements of assistance 1
agreements; and 2
(e) Making grants as funds specifically appropriated for grants or proceeds from 3
the sale of the authority's revenue bonds are available. 4
(5) The revolving fund shall be established, maintained, and credited with repayments 5
and the fund balance shall be available in perpetuity for its stated purposes. 6
(6) The authority may provide financial assistance from the revolving fund to 7
supplement assistance provided from the federally assisted wastewater revolving 8
fund as created in KRS 224A.111. 9
(7) The authority shall advise governmental agencies of the availability of the 10
infrastructure revolving fund and how moneys may be obtained from the fund. 11
(8) The authority may enter into any necessary or required agreement with federal or 12
state agencies or persons to carry out the provisions of this section. All state 13
agencies shall cooperate with the authority and share information with the authority 14
as appropriate to accomplish the purposes set out in KRS 224A.300. 15
(9) Moneys in the broadband deployment fund are hereby appropriated for the 16
purposes set forth in this section and KRS 224A.1121. 17
(10) Notwithstanding KRS 45.229, any moneys remaining in the broadband deployment 18
fund at the close of the fiscal year shall not lapse but shall be carried forward into 19
the succeeding fiscal year to be used for the purposes set forth in this section and 20
KRS 224A.1121. 21
(11) Interest earned on moneys in the broadband deployment fund shall stay in the fund. 22
Section 4. KRS 224A.1121 is amended to read as follows: 23
(1) (a) The purpose of the broadband deployment fund set forth in KRS 224A.112 24
shall be to: 25
1. Assist governmental agencies and private sector entities to construct 26
infrastructure for the deployment of broadband service to[ underserved 27 UNOFFICIAL COPY 22 RS HB 315/GA
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or] unserved areas of the Commonwealth; and 1
2. Provide supplemental funding for recipients of federal government 2
awards specifically to support the deployment or expansion of 3
broadband networks. 4
(b) The office[authority] shall manage the fund and may accept and receive 5
appropriations from the General Assembly or other funds or gifts from both 6
public and private sources, including but not limited to local governments and 7
federal agencies. 8
(2) The office[authority] shall establish a grant program that allocates funds from the 9
broadband deployment fund in accordance with this section. 10
(3) (a) The office shall issue grant applications for all projects awarded grant 11
funds on or after April 5, 2022. 12
(b) Grant funds may be used by government or private sector entities for 13
broadband deployment projects.[ 14
(3) The grant program shall be developed to give highest funding priority to those 15
projects which most effectively provide broadband service to the greatest number of 16
underserved and unserved Kentucky citizens and at the lowest cost. Funding shall 17
not be used to duplicate broadband service to citizens, households, and businesses 18
in a broadband deployment project area where fixed, terrestrial broadband service 19
meets or exceeds twenty-five (25) megabits per second downstream and three (3) 20
megabits per second upstream.] 21
(4) The office[authority] shall develop funding criteria and prioritization schedules for 22
broadband deployment projects[ in a technology-neutral manner] in accordance 23
with this section. 24
(5) (a) The office[authority] shall establish guidelines and standards for applying for 25
and approving grants from the broadband deployment fund according to the 26
minimum requirements in this section. No additional requirement shall be 27 UNOFFICIAL COPY 22 RS HB 315/GA
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added which could delay broadband deployment. 1
(b) An eligible applicant shall submit an application to the office[authority]. 2
(c) An application for a grant shall contain any information the office[authority] 3
requires, including but not limited to: 4
1.[(a)] A shapefile[geographic description] of the broadband deployment 5
project area and a list of addresses in the broadband deployment 6
project area[, including whether the area is partially served]; 7
2.[(b)] A description of the broadband deployment project, including 8
facilities, equipment, total cost, timeframe for completion, and network 9
capabilities, including minimum speed thresholds; 10
3.[(c)] Documentation of the applicant's technical, financial, and 11
managerial resources and experience to build, operate, and manage 12
broadband networks serving citizens, households, and businesses in 13
Kentucky, including a detailed project management plan identifying 14
staff, contractors, and key responsibilities; 15
4.[(d)] Documentation of the economic and commercial feasibility of the 16
proposed broadband deployment project, including a detailed project 17
budget and documentation of availability of supplies; 18
5.[(e)] The number of addresses within the broadband deployment 19
project area[citizens, households, or businesses] that would have new 20
access to broadband as a result of the grant; 21
6.[(f)] The amount of matching funds the eligible applicant will 22
contribute and a certification that no portion of the matching funds is 23
derived from any state or federal grant received for the purpose of 24
funding broadband infrastructure within the project area; and 25
7.[(g)] A certification that none of the funds provided by the program for 26
the project in the application will be used to extend or deploy facilities 27 UNOFFICIAL COPY 22 RS HB 315/GA
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to any currently served addresses[citizens, households, or businesses]. 1
(6) The office[authority] shall make all information within each application[the 2
applications] available to the public within five (5) business days following[of] the 3
deadline for submission of applications, provided the information contained within 4
an application is not exempt from disclosure under the provisions of the Open 5
Records Act, KRS 61.870 to 61.884. The description of the geographic scope of the 6
broadband deployment project area shall not be exempt under the Open Records 7
Act, KRS 61.870 to 61.884, and shall be made available to the public within five (5) 8
days after submission of the application. 9
(7) (a) As part of the grant application process, under[pursuant to] subsection 10
(5)[(3)] of this section, the office[authority] shall include an opportunity for a 11
challenging broadband service provider to challenge an[the] application 12
within fifteen (15) days from making all information available to the public 13
under subsection (6) of this section. 14
(b) A challenging provider shall provide the office with proof that:[ As part of 15
the dispute process, the authority may consider any relevant geospatial data 16
available from a broadband service provider or grant applicant. Geospatial 17
data may include but is not limited to shapefiles detailing broadband coverage, 18
the most current Federal Communications Commission Form 477 fixed 19
broadband deployment data reporting, or other documentation of broadband 20
deployment infrastructure in the project area to show that a challenged project 21
area is underserved or unserved. A challenging provider may provide the 22
authority with proof, including but not limited to:] 23
1.[(a)] The broadband deployment project area is: 24
a. Currently served; or[ is ] 25
b. Under construction for provision of broadband service within 26
twelve (12) months of the challenge; or 27 UNOFFICIAL COPY 22 RS HB 315/GA
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2.[(b)] The applicant has received funds from another state or federally 1
funded grant program designed to encourage broadband deployment in 2
the broadband deployment project area that covers more than fifty 3
percent (50%) of the eligible project expenses. 4
(c) As part of the challenge process and in order to meet the burden of proof in 5
paragraph (b) of this subsection, the challenging provider shall submit: 6
1. A shapefile and a list of addresses containing all addresses within the 7
broadband deployment project area that the challenging broadband 8
service provider currently serves and the maximum megabits per 9
second downstream speed and the maximum megabits per second 10
upstream speed provided to each challenged address; 11
2. A feasibility study, construction plan, or other relevant documentation 12
that clearly and convincingly demonstrates that the challenging 13
broadband service provider will be under construction within twelve 14
(12) months of the application date for the broadband deployment 15
fund grant, which may be extended by the office an additional six (6) 16
months because of undue construction delays; or 17
3. Loan documents, grant award receipts, or other financial information 18
that clearly and convincingly demonstrates to the office that the 19
challenging broadband service provider has received adequate funds 20
from another state or federally funded grant program designed to 21
encourage broadband deployment in the area. 22
(d) Within five (5) business days of a challenge being submitted to the office, 23
the provider submitting the application which is challenged shall be 24
provided copies of all challenge material. 25
(e) The office shall treat any information submitted as part of a challenge as 26
confidential and exempt from disclosure under the Open Records Act, KRS 27 UNOFFICIAL COPY 22 RS HB 315/GA
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61.870 to 61.884, upon the challenging provider's request for confidential 1
treatment. 2
(f) Within fifteen (15) days of receipt of the copies under paragraph (d) of this 3
subsection, the applicant shall respond to the challenge. 4
(g) Once the response to the challenge is submitted to the office by the 5
applicant, the office shall have fifteen (15) business days to resolve the 6
dispute. 7
(h) Upon a determination that a challenge is unsuccessful because the 8
challenging provider is unable to prove, within the timeframe provided 9
under this section, that the provider currently serves a broadband 10
deployment project area, the office shall move forward with the funding 11
process provided in this section. 12
(8) (a) Upon a determination that an application meets the funding criteria, but the 13
proposed project area is found to be partially served, the office[authority] may 14
amend the application and grant partial funding based on the partial service 15
provided in order to ensure that grant funds are used to only provide 16
broadband service to addresses[citizens, households, or businesses] deemed[ 17
underserved or] unserved. 18
(b) In the event of a challenge that involves subsection (7)(c)2. of this section 19
and those addresses are not under construction within twelve (12) months, 20
or eighteen (18) months if extended by the office, the challenging provider 21
shall pay a civil penalty to the applicant in an amount equal to the amount 22
of grant funding for those addresses plus ten percent (10%). 23
(9) When awarding grant funds, the office shall award funding to addresses with no 24
broadband service and then shall: 25
(a) Score the remaining grant applications based on the following criteria, 26
giving priority consideration in the order listed: 27 UNOFFICIAL COPY 22 RS HB 315/GA
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1. Projects in unserved areas that reach the customers that are the least 1
economical to serve, in the following order; 2
a. Projects that average zero to five (5) locations per route mile; 3
b. Projects that average five (5) to ten (10) locations per route mile; 4
and 5
c. Projects that average eleven (11) locations or more per route 6
mile; 7
2. Projects in unserved areas where local, state, or federal funds are not 8
available; 9
3. Fiber-to-the-premise projects that will deploy broadband services with 10
a capacity to transmit data from or to the Internet with symmetrical 11
downstream and upstream speeds of at least one (1) gigabit; 12
4. Projects deploying infrastructure capable of achieving symmetrical 13
speeds at a minimum of one hundred (100) megabits per second 14
download and upload speeds; 15
5. The size and the scope of the unserved area proposed to be served; 16
6. The technical, managerial, and financial capabilities of the applicant, 17
demonstrating the ability to successfully deploy the proposed project 18
and provide broadband service; 19
7. A project requesting less than fifty percent (50%) funding from the 20
requested grant; 21
8. Projects that will be eligible for the Affordable Connectivity Program 22
for low-income consumers administered by the Federal 23
Communications Commission; and 24
9. Projects that plan to encourage adoption of broadband services, 25
including community outreach to promote adoption, technical 26
support, and training on how to connect; 27 UNOFFICIAL COPY 22 RS HB 315/GA
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(b) Award no more than fifty percent (50%) of the total project cost, unless the 1
project meets the following density requirements: 2
1. Projects that average zero (0) to five (5) locations per route mile, 3
which may be eligible for reimbursement of up to seventy percent 4
(70%) of the cost of the project; 5
2. Projects that average five (5) to ten (10) locations per route mile, 6
which may be eligible for reimbursement of up to sixty percent (60%) 7
of the cost of the project; and 8
3. Projects that average eleven (11) locations or more per route mile, 9
which may be eligible for reimbursement of fifty percent (50%) of the 10
cost of the project; 11
(c) Require the remaining project costs to be paid by matching funds from: 12
1. A private source, including but not limited to financial institutions 13
that serve distribution cooperatives; 14
2. A city, county, urban-county government, or consolidated local 15
government; or 16
3. Any combination of matching moneys provided under subparagraphs 17
1. and 2. of this paragraph; 18
(d) Allow eligible project expenses, including those that are incurred starting 19
on or after the date in the written acknowledgement of acceptance issued 20
under paragraph (f) of this subsection and ending at the conclusion of the 21
grant project, or grant project contractual term, whichever is earlier, and 22
may include: 23
1. Project engineering or design plans; 24
2. Permitting; 25
3. Pre-construction costs to make ready the project site; 26
4. Outside plant materials, including fiber; poles, hardware, conduit or 27 UNOFFICIAL COPY 22 RS HB 315/GA
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splitters; 1
5. Labor, construction management, and equipment; and 2
6. Installation and testing of the broadband services; 3
(e) Make a determination that an application meets the funding criteria, unless 4
the proposed project area is found to be partially served, in which case the 5
application may be amended and partial funding based on the partial 6
service provided may be granted in order to ensure that grant funds are 7
used to only provide broadband service to addresses unserved; and 8
(f) 1. Issue within sixty (60) days of receipt of an application for grant 9
funds, except in the case of a challenged application under the 10
timeline in subsection (7) of this section, a written acknowledgement 11
of either: 12
a. Acceptance; 13
b. Denial and any reasons for denial of the application; or 14
c. A request for additional information to process the application 15
listing the specific information required; and 16
2. Issue grant funds to the applicant within ten (10) days upon 17
acceptance of the application. 18
(10) The office shall not reimburse applicants for special construction charges, 19
including fees or charges imposed upon the end user as a condition of receiving 20
broadband service at an address. 21
(11) The office may provide an incentive for timely completion or a disincentive for 22
not meeting agreed upon timeframes. 23
(12) Grant funds awarded to an applicant to supplement the applicant's federal fund 24
award may not be used for costs that will be reimbursed by the other federal 25
funds. 26
(13) No funds shall be used: 27 UNOFFICIAL COPY 22 RS HB 315/GA
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(a) To support any broadband deployment project involving the upgrade of an 1
existing facility already delivering broadband services, including an 2
upgrade of existing wireline, or terrestrial infrastructure capable of 3
delivering services greater than twenty-five (25) megabits per second 4
downstream and three (3) megabits per second upstream; or 5
(b) For non-capital expenses, non-broadband services, marketing, or advertising. 6
[The broadband deployment project area shall be described by census block 7
including the specific addresses to be serviced or by shapefile geospatial data. 8
(10) Grant applicants shall pay a minimum of fifty percent (50%) of the project cost 9
which shall not include any matching funds received from federal or state 10
government grants for broadband deployment in the project area.] 11
(14)[(11)] Moneys in this fund shall not be used by or transferred to the Kentucky 12
Communications Network Authority. 13
(15) (a)[(12)] To carry out the purposes of this section, the office may[authority shall] 14
promulgate administration regulations under[in accordance with] KRS 15
Chapter 13A.[ Within one hundred eighty (180) days of July 15, 2020, the 16
authority shall promulgate regulations to implement the provisions of this 17
section and KRS 224A.011, 224A.110, and 224A.112 and govern the 18
submission, review, and approval of applications and the administration of 19
broadband deployment projects.] 20
(b) The office[authority] shall not promulgate any regulations that place 21
obligations on the applicants that are more restrictive than applicable federal 22
or state law.[ Except as otherwise provided in this section, all of the 23
authority's records relating to the broadband deployment fund shall be deemed 24
confidential unless disclosure is required under the provisions of the Open 25
Records Act, KRS 61.870 to 61.884.] 26
(c) In the event that any state law or administrative regulation affecting the 27 UNOFFICIAL COPY 22 RS HB 315/GA
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broadband deployment fund conflicts with any federal law or regulation 1
related to federal broadband funding, the federal law or regulation shall 2
govern. The office may adopt state and local program requirements to 3
comply with all federal laws and regulation related to federal broadband 4
funding. 5
SECTION 5. A NEW SECTION OF KRS CHAPTER 224A IS CREATED TO 6
READ AS FOLLOWS: 7
(1) The General Assembly hereby finds and declares that: 8
(a) A rural infrastructure improvement fund, and a program to administer the 9
fund, is necessary to further the Commonwealth's goal to expand and 10
accelerate access to broadband service throughout the entire 11
Commonwealth; and 12
(b) Supporting the replacement of utility poles will provide benefits to Kentucky 13
residents by: 14
1. Facilitating the construction of broadband networks; 15
2. Minimizing the potential for disputes between broadband providers 16
and utility pole owners that could otherwise delay deployment; 17
3. Improving the resiliency and longevity of broadband infrastructure; 18
and 19
4. Addressing needs for broadband investment not yet fully met by 20
existing programs. 21
(2) As used in this section: 22
(a) "Application" means an application made under subsection (4) of this 23
section for eligible pole replacement costs; 24
(b) "Eligible pole replacement": 25
1. Means the removal of an existing utility pole and replacement with a 26
new utility pole in an unserved area in order to accommodate the 27 UNOFFICIAL COPY 22 RS HB 315/GA
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attachment of facilities to be used, in whole or in part, by a retail 1
provider to provide qualifying broadband service access to residences 2
or businesses within an unserved area; and 3
2. Does not include the removal and replacement of a utility pole in 4
order to accommodate facilities used only for the provision of 5
wholesale broadband or data transport service, where the owner of the 6
facilities, or its affiliate, does not use the facilities to provide 7
qualifying broadband services directly to residences or businesses; 8
(c) "Eligible pole replacement costs": 9
1. Means: 10
a. The actual and reasonable costs paid or incurred to perform an 11
eligible pole replacement; 12
b. The amounts of any expenditures to remove and dispose of the 13
existing utility pole, to purchase and install a replacement utility 14
pole, or to transfer any existing facilities to the new pole; and 15
c. The costs of reimbursing another party for the costs of 16
performing an eligible pole replacement, when paid or incurred 17
by the person responsible for the costs; and 18
2. Does not include: 19
a. Costs paid or incurred to perform an eligible pole replacement by 20
a party who is not responsible for those costs, and which are 21
charged or passed along to the responsible party; or 22
b. Costs for which the part incurring or paying the costs separately 23
has received or is entitled to receive reimbursement under the 24
terms of a state or federal grant program for the deployment of 25
broadband facilities; and 26
c. The receipt of a state or federal grant where the pole 27 UNOFFICIAL COPY 22 RS HB 315/GA
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replacement costs, for which reimbursement is requested, exceed 1
the pole replacement costs that were reasonably anticipated at 2
the time of, or on which the amount of, the other support 3
funding was predicated. 4
Costs are considered separately reimbursed for purposes of this paragraph 5
if the amount of an award under another state or federal broadband 6
program included consideration, by the awarding entity, of the pole 7
replacement costs by the applicant; 8
(d) "Fund" means the rural infrastructure improvement fund established by 9
subsection (3) of this section; 10
(e) "Pole owner" means any person or entity that owns or controls a utility 11
pole; 12
(f) "Program" means the Kentucky Rural Infrastructure Improvement 13
Program established by subsection (4) of this section; 14
(g) "Qualifying broadband service" means a retail wireline or wireless 15
broadband service capable of delivering Internet access at speeds of at least 16
one hundred (100) megabits per second in both the downstream and 17
upstream directions, and with latency at a level sufficient to permit real-18
time, interactive applications; and 19
(h) "Utility pole" means any pole used, in whole or in part, for any wire 20
communications or electric distribution, regardless of the owner or operator 21
of the pole. 22
(3) (a) There is created within the State Treasury a trust and agency account to be 23
known as the rural infrastructure improvement fund, consisting of moneys 24
appropriated by the General Assembly, federal funds, grants, and gifts. 25
(b) The fund shall be administered by the Office of Broadband Development 26
and all money deposited in the fund shall be used: 27 UNOFFICIAL COPY 22 RS HB 315/GA
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1. By the office to provide reimbursements to qualified applicants under 1
the Rural Infrastructure Improvement Program established under 2
subsection (4) of this section; 3
2. For the purposes of covering the costs of program administration and 4
operation; and 5
3. In a manner consistent with federal law. 6
(c) Notwithstanding KRS 45.229, any moneys remaining in the fund at the 7
close of the fiscal year shall not lapse but shall be carried forward into the 8
succeeding fiscal year to be used for the purposes set forth in this section. 9
(d) Interest earned on money deposited to the credit of the fund shall be 10
retained in the fund and shall not lapse. 11
(e) Moneys deposited in the fund are hereby appropriated for the purposes in 12
this section. 13
(4) (a) There is hereby established the Kentucky Rural Infrastructure Improvement 14
Program for the purpose of expediting and facilitating the deployment of 15
broadband service to individuals, businesses, agricultural operations, and 16
community access points in unserved areas by reimbursing a portion of 17
eligible pole replacement costs incurred by eligible applicants. 18
(b) The office shall administer and provide staff assistance for the program and 19
shall be responsible for receiving, reviewing, and approving applications for 20
pole reimbursements. 21
(c) The office shall award pole reimbursements from moneys in the fund 22
created by subsection (3) of this section until all moneys in the fund are 23
exhausted. 24
(d) No later than September 1, 2022, the office shall: 25
1. Promulgate administrative regulations under KRS Chapter 13A 26
necessary for the administration of this section; 27 UNOFFICIAL COPY 22 RS HB 315/GA
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HB031510.100 - 1319 - XXXX GA
2. Publish an application for pole replacement reimbursements that shall 1
require: 2
a. Information sufficient to establish the number, cost, and 3
eligibility of eligible pole replacements that qualify for 4
reimbursement; 5
b. Documentation sufficient to establish that the claimed eligible 6
pole replacements have been completed, including receipts 7
verifying the amount of eligible pole replacement costs paid by 8
the applicant; 9
c. The amount of program reimbursement requested in the 10
application and any grant funding or accounting information 11
required to justify the amount of the request; 12
d. i. A statement that the costs for which reimbursement is 13
requested have not been reimbursed through any other 14
state or federal broadband grant program. 15
ii. If the applicant is a recipient of funding from another 16
program, the statement shall include an explanation of 17
how the costs for which reimbursement is requested exceed 18
the pole replacement costs on which the original award was 19
predicated or that were reasonably anticipated at the time 20
of the original award; 21
e. A notarized statement from an officer or agent of the applicant 22
that the contents of the application are true and accurate and 23
that the applicant accepts the requirements of this section and 24
any promulgated administrative regulations as a condition of 25
receiving an award of program reimbursement; and 26
f. Any other information necessary for the office to comply with 27 UNOFFICIAL COPY 22 RS HB 315/GA
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any conditions on federal funding used in connection with the 1
program; and 2
3. Publish and maintain on its Web site: 3
a. Statistics on the number of applications received, processed, and 4
rejected by the office under the pole replacement program; 5
b. Statistics on the size, number, and status of reimbursements 6
awarded by the office under the pole replacement program, 7
including the pole owners and broadband providers receiving 8
reimbursements; and 9
c. The amount of money remaining in the fund. 10
(e) An applicant who incurs or pays the costs of an eligible pole replacement to 11
accommodate broadband facilities consistent with this section may apply to 12
the office for reimbursement. 13
(f) As a condition of receiving reimbursement under this subsection, an 14
applicant shall: 15
1. Certify its compliance with the requirements of this section; 16
2. Agree to comply with any requirements that the office determines to be 17
necessary conditions on federal funding used in connection with the 18
program; 19
3. Agree to refund, with interest at the applicable federal funds rate as 20
specified by KRS 355.4A-506, to the fund, any reimbursements or 21
portions of reimbursements received from the fund under this 22
subsection, if the office finds, upon substantial evidence and after 23
notice and opportunity to respond, that the recipient materially 24
violated any of the requirements agreed to under this section; 25
4. Agree that no funds awarded by the program will be used to meet any 26
cash match requirement under any other broadband program 27 UNOFFICIAL COPY 22 RS HB 315/GA
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administered by the Commonwealth or one (1) of its subdivisions; 1
5. Agree to submit reports as the office may require regarding broadband 2
deployment facilitated by the program, which may include reports 3
demonstrating that an application that has received a federally funded 4
award is meeting or exceeding buildout requirements contained in 5
that award; and 6
6. Agree to not include in any rates or fees charged for its services any 7
eligible pole replacement costs that were reimbursed by the program, 8
paid for by a broadband provider, or funded by another grant source. 9
(g) 1. If the necessary information is not otherwise reasonably available to 10
the applicant, the applicant may request a pole owner performing an 11
eligible pole replacement to provide the number and costs of the pole 12
replacements, receipts verifying the amount of pole replacement costs 13
paid by the applicant, and confirmation that the pole replacement 14
costs were incurred to accommodate the applicant’s attachment and 15
not due to some other reason. 16
2. In the event the office requires additional information from an 17
applicant following the submission of an application to confirm the 18
eligibility of costs in an application that is in the possession of the pole 19
owner and not otherwise reasonably available to the applicant, the 20
applicant may also request that the pole owner assist with providing 21
the information as requested by the office. 22
3. A pole owner shall coordinate in good faith to provide the information 23
to the applicant, and may require reimbursement from the broadband 24
provider of its actual and reasonable administrative expenses in 25
connection with the coordination, which shall not exceed five percent 26
(5%) of the eligible pole replacement costs. 27 UNOFFICIAL COPY 22 RS HB 315/GA
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4. Administrative costs that a broadband provider reimburses to a pole 1
owner under this subsection are not eligible for reimbursement from 2
the fund as eligible pole replacement costs. 3
(h) Within sixty (60) days of receipt of a completed application establishing the 4
eligibility of costs for reimbursement, and to the extent that moneys are 5
available in the fund, the office shall award the lesser of: 6
1. Five thousand dollars ($5,000) for each pole replaced; or 7
2. Fifty percent (50%) of the total amount incurred or paid by the 8
applicant for eligible pole replacement costs. 9
(i) Any application pending at the exhaustion of the moneys in the fund shall 10
be deemed denied but may be refiled if sufficient moneys are later made 11
available in the fund. 12
(j) No later than one (1) year after the fund receives moneys for the purpose of 13
providing pole replacement reimbursements to qualified applicants, the 14
Auditor of Public Accounts shall audit the fund and its administration by 15
the office for compliance with the requirements of this section. 16
(k) No later than one (1) year after the exhaustion of the money in the fund, the 17
office shall file a report with the Legislative Research Commission that 18
identifies and examines the deployment of broadband infrastructure and 19
technology facilitated by the eligible pole reimbursements the office has 20
awarded under this section. 21
(5) A broadband provider's use of funds reimbursed under this subsection to pay 22
eligible pole replacement costs shall have no effect on the subsequent ownership 23
of any replacement pole purchases and installed by a pole owner using the funds. 24
Section 6. KRS 278.5461 is amended to read as follows: 25
In addition to the definitions in KRS 278.010 and KRS 278.516(2), for KRS 278.546 to 26
278.5462, the following definitions shall apply: 27 UNOFFICIAL COPY 22 RS HB 315/GA
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(1) "Broadband" has the same meaning as in Section 2 of this Act; and[means any 1
service that is used to deliver video or to provide access to the Internet and that 2
consists of the offering of the capability to transmit information at a rate that is 3
generally not less than two hundred (200) kilobits per second in at least one 4
direction; or any service that combines computer processing, information storage, 5
and protocol conversion to enable users to access Internet content and services. 6
Nothing in this definition shall be construed to include any intrastate service, other 7
than digital subscriber line service, tariffed at the commission as of July 15, 2004.] 8
(2) "Local exchange carrier" means any company certified by the commission to 9
provide local exchange telecommunications service in the Commonwealth on or 10
before June 30, 1995. 11
Section 7. KRS 278.5464 is amended to read as follows: 12
(1) The General Assembly recognizes and declares: 13
(a) The provision of broadband service to residential, commercial, and industrial 14
customers is critical to securing a sound economy and promoting the general 15
welfare of the Commonwealth; and 16
(b) Distribution cooperatives are able to access and leverage federal funding to 17
extend and enhance the availability of broadband service to Kentucky 18
residents who are currently unserved[ or underserved]. 19
(2) As used in this section: 20
(a) "Broadband" has the same meaning as in Section 2 of this Act[means any 21
wireline, fixed wireless, or fixed terrestrial technology having a capacity to 22
transmit data from or to the Internet with a minimum speed of twenty-five 23
(25) megabits per second downstream and three (3) megabits per second 24
upstream as defined by the Federal Communications Commission or the 25
United States Department of Agriculture and any amendments to those 26
definitions. If the agencies use different speed definitions, the faster speed 27 UNOFFICIAL COPY 22 RS HB 315/GA
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definition shall apply; 1
(b) "Underserved area" means any project area where broadband service with a 2
minimum twenty-five (25) megabits per second downstream and three (3) 3
megabits per second upstream is not available]; and 4
(b)[(c)] "Unserved area" has the same meaning as in Section 2 of this 5
Act[means any project area where broadband service with a minimum ten (10) 6
megabits per second downstream and one (1) megabit per second upstream is 7
not available]. 8
(3) Notwithstanding any other statute to the contrary, [: 9
(a) ]a distribution cooperative may facilitate the operation of an affiliate engaged 10
exclusively in the provision of broadband service to unserved[ or underserved] 11
households and businesses by: 12
(a)[1.] Constructing and leasing excess capacity on any fiber optic cable for 13
broadband service which shall not require a certificate of public 14
convenience and necessity under KRS 278.020, however the construction of 15
fiber optic cable used to support the distribution cooperative's electric 16
distribution system shall require a certificate of public convenience and 17
necessity under KRS 278.020; 18
(b)[2.] Issuing securities or evidences of indebtedness in an amount not to 19
exceed twenty-five percent (25%) of the net book value of its assets, the 20
proceeds of which shall be used for the exclusive purpose of capitalizing the 21
affiliate; or 22
(c)[3.] Pledging up to twenty-five percent (25%) of the net book value of its 23
assets as collateral for a loan entered into by the affiliate for the purpose of 24
providing broadband services[; and 25
(b) The commission shall grant approval of the leasing of excess capacity, the 26
issuing of securities or evidences of indebtedness, or the pledging of assets 27 UNOFFICIAL COPY 22 RS HB 315/GA
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HB031510.100 - 1319 - XXXX GA
upon a finding the proposal is in the public interest. 1
(4) The commission shall take into consideration the policy of encouraging the 2
provision of broadband service to unserved or underserved households and 3
businesses throughout the Commonwealth when determining whether: 4
(a) The proposed investment will result in wasteful duplication of investment in 5
the case of any distribution cooperative's application for a certificate of public 6
convenience and necessity under KRS 278.020 that includes the construction 7
of a fiber optic cable system with capacity in excess of that which is necessary 8
to support the distribution cooperative's system under subsection (3)(a)1. of 9
this section; and 10
(b) The issuance or assumption of securities or evidence of indebtedness satisfies 11
the criteria of KRS 278.300(3) in the case of any distribution cooperative's 12
application for approval of an issuance of securities or evidence of 13
indebtedness or pledge of assets under subsection (3)(a)2. and 3. of this 14
section]. 15
(4)[(5)] A distribution cooperative shall comply with the cost allocation requirements 16
of: 17
(a) KRS 278.2201, 278.2203, 278.2205, 278.2207, 278.2209, and 278.2211; and 18
(b) Only KRS 278.2213(1) and (3) with regard to any costs associated with its 19
facilitation of an affiliate's provision of broadband services. 20
(5)[(6)] [Prior to December 31, 2021, ]The commission shall promulgate 21
administrative regulations regarding pole attachments under the commission's 22
jurisdiction, including those necessary for the provision of broadband service. 23
(6) Before broadband services may be offered under this section, a distribution 24
cooperative shall, by resolution of the board of directors and spread upon its 25
minutes, have an economic feasibility study conducted. The feasibility study shall 26
be provided to the commission and made available to distribution cooperative 27 UNOFFICIAL COPY 22 RS HB 315/GA
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HB031510.100 - 1319 - XXXX GA
members upon request. 1
(7) A distribution cooperative shall not allow the installation or operation of a 2
broadband system on its electric delivery system by an affiliate or other 3
broadband operator to diminish the reliability of the electric delivery system. 4
(8) A distribution cooperative shall not require any person to purchase broadband 5
services from an affiliate or other broadband operator as a condition of receiving 6
or continuing to receive electric energy from the distribution cooperative. 7
(9) A distribution cooperative shall not disconnect or threaten to disconnect its 8
electric service to any customer due to the customer's failure to pay for 9
broadband services provided to the customer by an affiliate or other broadband 10
operator. 11
(10) Every distribution cooperative shall conduct an annual audit of compliance with 12
this section, which shall be provided to the commission and made available to 13
distribution cooperative members upon request. 14
(11) The commission shall have no jurisdiction over the creation or operation of an 15
distribution cooperative's broadband affiliate, except as referred to in subsection 16
(4) of this section. 17
Section 8. There is hereby appropriated Federal Fund moneys from the State 18
Fiscal Recovery Fund of the American Rescue Plan Act in the amount of $20,000,000 in 19
fiscal year 2022-2023 to the Rural Infrastructure Improvement Fund established in 20
Section 5 of this Act. 21
Section 9. 2021 Ky. Acts ch. 171, sec. 3, as amended by 2021 Ky. Acts ch. 196, 22
sec. 4, is amended to read as follows: 23
(1) There is hereby appropriated Federal Funds from the Coronavirus Capital 24
Projects Fund of the American Rescue Plan Act of 2021[federal funds] in the amount of 25
$127,000,000 and Federal Funds from the State Fiscal Recovery Fund of the 26
American Rescue Plan Act of 2021 in the amount of $123,000,000[$250,000,000] in 27 UNOFFICIAL COPY 22 RS HB 315/GA
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fiscal year 2021-2022 to the broadband deployment fund, with no more than $50,000,000 1
of which to be awarded before May[ April] 1, 2022. 2
(2) [(a) ]In addition to the appropriation in subsection (1) of this section, there is 3
hereby appropriated Federal Funds from the State Fiscal Recovery Fund of the American 4
Rescue Plan Act in the amount of $50,000,000 in fiscal year 2020-2021. Notwithstanding 5
KRS 45.229, the Federal Fund appropriation in fiscal year 2020-2021 shall not lapse and 6
shall carry forward for use in fiscal year 2021-2022 and fiscal year 2022-2023.[ 7
(b) The appropriation in paragraph (a) of this subsection shall be used for projects 8
that provide broadband service in furtherance of securing economic development 9
opportunities for commercial and industrial customers, excluding the broadband service 10
provider itself.] 11
(3) The agency administering the broadband deployment fund shall promulgate 12
administrative regulations to ensure that[: 13
(a) Related to the appropriation in subsection (1) of this section,] the moneys are 14
awarded based on the[ following] criteria in subsection (9) of Section 4 of this Act[the 15
order as listed: 16
1. Projects in underserved areas or unserved areas where local, state, or federal 17
funds are not currently designated; 18
2. Projects within underserved areas or unserved areas where local, state, or 19
federal broadband funds are inadequate; and 20
3. Projects that reach the customers that are the least economical to serve; 21
(b) Related to the appropriations in subsections (1) and (2) of this section, a 22
request for proposal shall be issued for projects; 23
(c) Notwithstanding KRS 224A.1121(5)(f) and (10), and related to the 24
appropriations in subsections (1) and (2) of this section, projects will require: 25
1. A private match of moneys of not less than 50 percent of the total project cost; 26
or 27 UNOFFICIAL COPY 22 RS HB 315/GA
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HB031510.100 - 1319 - XXXX GA
2. Matching funds from a city, county, urban county government, or consolidated 1
local government of not less than 50 percent of the total project cost; and 2
(d) Related to the appropriations in subsections (1) and (2) of this section, project 3
scope should be for the smallest feasible geographical area.] 4
(4) The agency may provide incentive for timely completion and disincentive for 5
not meeting agreed upon timeframes. 6
(5) (a) The agency administering the broadband deployment fund shall 7
promulgate administrative regulations to develop a process for: 8
1. Receiving complaints related to insufficient broadband service; 9
2. Incorporating forms for the collection of data related to the complaints; 10
3. Reporting the information collected; and 11
4. Referring complaints to the Office of Attorney General, Federal 12
Communications Commission, or Federal Trade Commission, as appropriate. 13
(b) The agency shall report to the Legislative Research Commission on a 14
quarterly basis, beginning October 1, 2021, and the first day of each calendar quarter 15
thereafter, the following information: 16
1. The location, by county, for each consumer complaint received related to 17
insufficient broadband service; 18
2. A brief description of the complaint; 19
3. The broadband provider related to the complaint received; 20
4. The response of the broadband provider regarding the complaint received; 21
5. Whether the complaint was resolved to the satisfaction of the consumer; and 22
6. Whether a referral was made to the Office of Attorney General, Federal 23
Communications Commission, or Federal Trade Commission. 24
Section 10. Whereas it is critical to support the replacement of utility poles to 25
facilitate ad expedite the construction of broadband networks, and to address the needs of 26
broadband investment not yet fully met by existing programs, an emergency is declared to 27 UNOFFICIAL COPY 22 RS HB 315/GA
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HB031510.100 - 1319 - XXXX GA
exist, and this Act takes effect upon its passage and approval by the Governor or upon its 1
otherwise becoming a law. 2