HB3363 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 3363 By: McCall, Boles, and Phillips COMMITTEE SUBSTITUTE An Act relating to broadband; amending 17 O.S. 2021, Sections 139.201, 139.202, and 139.203, which relate to the Oklahoma Rural Broadband Expansion Act; modifying name of act; modifying name of certain council; providing for termination; requiring certain actions prior to termination ; decreasing size of Council; modifying qualifications for certain council appointments; eliminating obsolete language; providing for advisory oversight; eliminating certain study, mapping, data collecti on, reporting, and incentive awards requirements; eliminating certain support required of the Oklahoma Depa rtment of Commerce; requiring certain support from the State Broadband Office; requiring certain data be provided by certain entities; updating references; defining terms; creating the B roadband Governing Board for a certain period; providing for terminati on; requiring certain actions prior to terminati on; providing oversight responsibilities, powers, and duties; establishing membership; esta blishing appointment authority and procedure; establishing disqualifications as to membership; establishing length of term; authorizing removal and replacement without cause; establishing organization of the Board; requiring certain organizational meeting and certain actions related to filling Executive Director position within certain period; authorizing replacement appointments under certain conditions; making Board subject to Oklahoma Open Meeting Act and Oklahoma Open Records Act; providing for the employment of an Executive Director; authorizing the HB3363 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 promulgation of rules; requiring certain Board oversight; creating the Oklahoma Broadband Office for a certain period; providing for termination; requiring certain actions prior to termination; requiring administrative assistance by the Office of Management and Enterprise Services and providing process; authorizing certain charges under certain conditions; subjecting Office to the governance of the Broadband Governing Board; subjecting Office to the advice of the Broadband Expansion Council; establishing powers and duties of the Executive Director; providing for th e hiring and management of office staff; requiring regular reporting to certain entities; requiring certain studies, mapping, data collection, and reporting requirements; requiring certain mapping system; authorizing the purchase of certain data; authorizing the establishment of certain policies as needed; authorizing protest procedure within certain time pe riod; requiring certain features; providing for creation of a Statewide Broadband Plan including certain requirements; requiring certain procedures related to the Capital Projects Fund Grant Report; providing deadlines; requiring maintenance of the report; requiring cooperation with certain entities; authorizing the administration of funding throu gh grant opportunities, incentives, and awards; requiring the development of broadband award guidelines and procedures; requiring submission of guidelines to certain officials; requiring guidelines consider certain factors; requ iring the submission of certain information to the Office upon request; requiring certain informat ion be kept confidential; authorizing the transfer of certain broadband programs, personnel, and assets within a certain period of time; providing process for transfe r; providing exceptions; prohibiting t he expenditure of certain funding without Office authorization; requiring the establishment of the State Broadband Grant Program; providing criteria; limiting award eligibility; requiring acquisition of certain data; requiring certain repayment under certa in conditions; defining term; creating the State Broadband Grant Program Revolving Fund; establishi ng nature of fund; declaring funds appropriated; providing b udgetary requirements; providing certain expenditure authority; repealing 17 O.S. 2021, Section 139.204, HB3363 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 which relates to the State Broadband Deployment Grant Program and Fund; providing for codification; providing for recodification ; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA: SECTION 1. AMENDATORY 17 O.S. 2021, Section 139.201, is amended to read as follows: Section 139.201 This act shall be known and may be cited as the "Oklahoma Rural Broadband Expansion Act ". SECTION 2. NEW LAW A new section of law t o be codified in the Oklahoma Statutes as Se ction 9201 of Title 74, unless there is created a duplication in num bering, reads as follows: As used in this act: 1. "Board" means the Broadband Governing Board; 2. "Council" means the Broadband Expansion Coun cil; 3. "Director" means the Executive Director of the Oklahoma Broadband Office; 4. "FCC" means the Federal Communications Co mmission; 5. "Joint Committee" means the Legislature's Joint Committee on Pandemic Relief Funding, created by the Legislature to give legislative oversight to the dispersa l of the American Rescue Plan Act's State and Local Fiscal Recovery Fund, Capital Projects Fund, and any future federal recovery funds as identified by the Legislature; HB3363 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. "Map" means the statewide map showing broadband access, adoption, speed capabilities, and all other information the Office deems necessary; 7. "Office" means the Oklahoma Broadband Office; 8. "Plan" means the Statewide B roadband Plan; 9. "Program" means the State Broadband Grant P rogram; and 10. "Revolving fund" means the State Broadband Grant Program Revolving Fund. SECTION 3. NEW LAW A new section of law t o be codified in the Oklahoma Statutes as Section 9202 of Title 74, unless there is created a duplication in num bering, reads as follows: A. 1. There is hereby created until June 30, 2028, the Broadband Governing Board. The Board shall oversee the Oklahoma Broadband Office. Effective June 30, 2028, the Board shall terminate. The Board shall utilize the year prior to the termination date for the purpose of ceasing the Board's affairs. 2. The Board shall receive regular reports from the Office's Executive Director and the Executive Director's staff on the status of the Statewide Broadband Plan, the State Broadband Grant Program, other developed grant programs, and other projects the Office is undertaking, during regularly scheduled meetings. B. The Board shall consist of nine (9) members. Two members shall be appointed by the Speaker of the Oklahoma House of Representatives, two members shall be appointed by the President Pro HB3363 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Tempore of the Oklahoma State Senate, three members shall be appointed by the Governor, one member shall be the Lieutenant Governor, and one member shall be the State Treasurer. Except as provided in subsection C of this section, appointees shall serve until June 30, 2028. No individual with an official affili ation, paid or unpaid, with any potential recipient of a grant administered under the provisions of this act, shall be appointed to o r serve on the Board. C. Each appointee shall serve at the p leasure of his or her appointing authority and may be removed or replaced without cause. D. 1. The Board shall hold an organizatio nal meeting not later than thirty (30) days from the effective date of this act. At such meeting, the Board shall adopt qua lifications and a salary range for an Executive Director for the Oklahoma Broadband Office based on the recommendations of the Human Capital Management Division of the Office of Management and Enterprise Services, and provide for the process of filling the position in a reasonable time in accordance with the laws of this state. 2. The Board shall hold meetings as necessary at a place and time to be fixed by the Board. The Boa rd shall elect, at its first meeting, one of its members to serve as chair and another of i ts members to serve as vice-chair. At the first meeting in each calendar year thereafter , the chair and vice-chair for the ensuing year shall be elected. Special meetings may be called by the chair HB3363 HFLR Page 6 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 or by five members of the Board by delivery of written n otice to each member of the Board. A majority of members s erving on the Board shall constitute a quorum of the Board. E. If a Board member is unable to f ulfill his or her term for any reason, the appointing authority of such member may appoint a replacement to complete the remainder of the term. F. The Board shall be subject to the Oklahoma Open M eeting Act and the Oklahoma Open Records Act. G. The Board shall employ, evaluate, and maintain an Executive Director of the Office who shall serve at the pleasure of the Board and may be removed or replaced without cause. H. The Board shall promulgate r ules as necessary to implement the provisions of the Oklahoma Broad band Expansion Act and for the governance and operation of the Oklahoma Broadband Office. I. The Board shall approve or disapprove all grant and incentive programs created by the Office under the provisions of this act or under law. J. The Board shall oversee the annual budget for th e Office, which shall be funded from the allowed adminis trative expenses of applicable federal programs and funds available for expenditure from the State Broadband Grant Program Revolving Fund created purs uant to Section 10 of this act. K. The Board shall approve the Statewide Broadband Plan and updates to the Plan as necessary. HB3363 HFLR Page 7 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 4. AMENDATORY 17 O.S. 2021, Section 139.202, is amended to read as follows: Section 139.202 A. There is hereby created, until June 30, 2028, the Rural Broadband Expansion Council. Effective June 30, 2028, the Council shall terminate. The Council shall utilize the year prior to the termination date for the purpose of ceasing th e Council's affairs. B. The Council shall consist of sixteen (16) fourteen (14) persons to be selected as follows: 1. Three members shall be appointed by the Governor, one of whom shall be a government official who has knowledge of and experience with the technology assets and operatio ns of the Oklahoma Department of Transportation, OneNet and the Oklahoma Office of Management and Enterprise Services and who is not and has n ot been previously employed by OneNet the individual serving as the Executive Director of the Oklahoma Broadband Office, one of whom shall be a current or past mayor of a municipality having a population of less than thirty-five thousand (35,000) persons according to the latest Federal Decennial Census or most rece nt population estimate and which is not part of either the Oklaho ma City or Tulsa Metropolitan Statistical Area Areas, and one of whom shall be a representative of a wireless telecommunications provider with operations in Oklahoma and at least twenty -four other states HB3363 HFLR Page 8 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 resident of this state and a wireless Internet service provider (WISP); 2. Five members shall be appointed by the Speaker of the Oklahoma House of Representatives, one of whom shall represent the interests of rural Internet service providers, one of whom shall be a private sector technology professional wi th expertise in broadband connectivity, access, price and related economic factors, one of whom shall represent the interests of rural health care, on e of whom shall be a representative of a wireless telecommunica tions provider not affiliated with an incum bent local exchange carrier in Oklahoma and one who shall be a resident of this state and a wireless Internet service provider (W ISP) representative of a wireless telecommunications provider with operations in Oklahoma and at least twenty-four other states; 3. Five members shall be appointed by the President Pro Tempore of the Oklahoma State Senate, one of whom shall be a professional having academic expertise in large-scale information technology infrastructure with emphasis on rural broadband access, one of whom shall represent the interests of rural business enterprises, one of whom shall be a citizen from a community of less than fift y thousand (50,000) persons which is not pa rt of either the Oklahoma City or Tulsa Metropolitan Statistical Areas, one of whom shall be a rural electric cooperative representative and one who shall be an Oklahoma resident and Tribal Leader of a tribe recog nized in this state; and HB3363 HFLR Page 9 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. One nonvoting member of the Oklahoma House of Representatives to be appointed by the Speaker ; 5. One nonvoting member of the Oklahoma State Senate to be appointed by the President Pro Tempore; and 6. One nonvoting member to be se lected by the Oklahoma Corporation Commissi on who has expertise in administration of the Universal Service Fund, but who is not an elected member of the Commission. C. The Council shall hold an organizationa l meeting not later than sixty (60) days from May 22, 2020, and shall select from its membership a chair and vice-chair or co-chairs. The chair or co- chair of the Council shall be a person who is not a government employee or public official, unless the pe rson or persons are legislators. D. A quorum of the memb ership of the Council shall be necessary in order to take any fin al action pursuant to the provisions o f this act. E. D. The Council shall be subject to the Oklahoma Open Meeting Act and the Oklahoma Open Records Act. F. The Rural Broadband Expansion Counci l shall conduct a study of rural broadband access in the state and shall divide the st ate into separate geographic areas based on the information it obtains regarding existing capability for perso ns and businesses to access broadband telecommunication serv ices, the cost for obtaining the HB3363 HFLR Page 10 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 services from existing servic e providers, the estimat ed costs for improving rural broadband access, the likelihood of changes in rural broadband access in the near and intermediate future based on available information rega rding private or public sector plans or programs to create or enhance broadband access in rural areas, the need for change in state or local law or policy that impacts the ability for persons or b usiness entities in rural areas to access broadband services at a reasonable price and such other information as the Council may determine to be r elevant in order to establish the geographic areas. G. The Council shall incorporate the information as descr ibed in subsection F of this section into a mapping system t hat depicts resources, broadband coverage, connectivity speeds and such other features as the Council deems relevant. H. The Council shall undertake a study of incentives or programs that would h ave the effect of improving existing rural broadband access and establishing broadband access to areas which currently do not have such access . The incentives or programs may include federal funds, tribal funds or resources, donated funds or funding available from foundations, endowments or similar sources, state or local tax incentives, state or local financing incentives or options or federal, tr ibal, state or local regulatory policies that would be conducive to improving existing broadband access or establishing such access where it does not currently exist. HB3363 HFLR Page 11 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I. The Council shall have the right to obtain information from the Oklahoma Corporation Commission or other state agencies, to the extent information requested is not required to be kept confidentia l pursuant to some other requirement, regarding any of the m atters as specified in this section relevant to the Council's duties. J. The Council shall have the right to obtain information from counties, cities, towns, school districts, career technology districts, public trusts, or other entities or instrumentalit ies of local government, to the extent information requested i s not required to be kept confidential pursuant to some other requirement, regarding any of the matters as specified in this section r elevant to the Council's duties. K. The Council shall utilize t he E. The Council shall serve as the advisory board to the Oklahoma Broadband Office. F. The Council shall advise the Office in developing and continually monitoring the Office's Plan related to: 1. Identifying geographic areas it establishes pursuant to the Oklahoma Rural Broadband Expansion Act in order to develop its recommendations regarding the implementation of to be utilized in developing the Office's policies that are conducive to for establishing or improving rural broadband access in the st ate. pursuant to the Oklahoma Broadband Expansion Act ; HB3363 HFLR Page 12 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 L. The Council shall focus on the 2. Assessing the financial viability of broadband service providers so that a broadband netwo rk is adequately supported in its operations, that needed repairs and upgrades can be undertaken on a timely basis and that the go al of having a quality long-term broadband service delivery system for rural areas across the state is achieved and maintained .; M. The Council shall give emphasis to maintaining 3. Maintaining the viability of the Oklahoma Universal Service Fund and give consideration to whether similar u niversal funds should be implemented in order to facilitate broadband expansion and operational costs for underserved areas.; and N. The Council shall give empha sis to the prevention of 4. Preventing duplication of facilities and investment when it the Office makes policy grant recommendations. The With the input of the Council, the Oklahoma Broadband Office shall establish objective standards in order to determine whether the construc tion of rural broadband access constitutes duplication of facilities a nd investment and also the role of any recommended incentives that would benefit entities in the private sector so that public resources are effectively utilized and that duplication of efforts is avoided. O. The Oklahoma Department of Commerce shall crea te a dedicated webpage or website in order to allow public access to the actions and recommendations of the Council. The webpage or website shall HB3363 HFLR Page 13 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 contain the mapping system required by subsection G of this sect ion and its related information. P. The Oklahoma Department of Commerce shall provide administrative support to the Council and shall utilize the Digital Transformation Program Revolving Fund for expenses related to such administrative support as provide d by Section 36 of Title 62 of the Oklahoma Statutes. Q. The Rural Broadband Expansion Council shall submit an annual report, not later than January 31, summarizing discussions, testimony, analysis, information or other actions and significant events during the preceding calendar year and containing the recommendations, if any, by the Council for legislation, action by executive branch agencies or other actions in furtherance of the mission and duties of the Council. The report shall be submitted to the Governor, the Speaker of the Oklahoma House of Representatives and the President Pro Tempore of the Oklahoma State Senate. R. On or before October 31, 2021, the Council shall develop a set of broadband incentive award guidelines for recommendation to the State Legislature. The Council shall submit a copy of the guidelines to the Speaker of the Oklahoma House of Representatives, the President Pro Tempore of the Oklahoma State Senate, and to the chairs of the appropriate legislative c ommittees. The guidelines shall: HB3363 HFLR Page 14 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Consider a weighted approach for awarding incentives based upon the following: a. the area's need for services, including, but not limited to, whether the area is underserved, unserved, rural or urban, b. whether there are existing broadband assets in the area, based on the statewide map , c. whether existing federal, state, local, tribal or private resources have been allocated to broadband services in the area, d. a preference for federal, state , local, tribal or private partnerships, and e. the capacity of the provider to maintain asset s for an extended period of time; and 2. Recommend any necessary controls including, but not limited to, capping the dollar amount of awards, allowing for an aud iting process, and a process that allows for award clawbacks . These controls shall be in plac e to ensure the maximum efficiency of the incentive award and to protect against waste, fraud or abuse. G. The Council shall receive administrative support from the Oklahoma Broadband Office . SECTION 5. NEW LAW A new section of law to be c odified in the Oklahoma Statu tes as Section 9204 of Title 74, unless there is created a duplication in numbering, reads as follows: HB3363 HFLR Page 15 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. There is hereby created until June 30, 2028, the Oklahoma Broadband Office, to serve as the state's sole administrator o f the functions, powers, and duties assigned to the Office in this act or under law. Effective June 30, 2028, the Office shall terminate and all personnel positions shall be abolished. The Office shall utilize the year prior to the termination date for the purpose of ceasing the Office's affairs. B. The Office shall receive administrative assistance from the Office of Management and Enterprise Services (OMES), which shall provide through existing OMES resources, administrative assis tance upon request in writing or electronic correspondence from the Office's Executive Director, within a reasonable time to allow the performance of the Office's duties or respond in writing within ten (10) days of the request providing reasons why the request cannot be fulfilled. If the request cannot be fulfilled utilizing existing resources, OMES may charge the Office for the actual cost to fulfill the request. C. The Office shall be governed by the Broadband Governing Board, created pursuant to Section 3 of this act. D. The Office shall be advised by the Broadband Expansion Council, created pursuant to Section 4 of this act. E. The Office shall have an Executive Director who shall oversee the operations of the Office including, but not limited to: HB3363 HFLR Page 16 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Overseeing the creation, maintenance, and completion of the Statewide Broadband Plan; 2. Communicating the state's progress in achieving the goals and implementation of the Statewide Broadband Plan; 3. The creation, housing, and updating of a statewide broadband services map; 4. Overseeing of grant applications and awards for connectivity and affordability projects; 5. Making recommendations to the Board regarding procedural and administrative rules for the Office; and 6. Employment and management of Office staff subject to the limitations and requirements of this act and subject to the limitations and requirements of the Broadband Governing Board. F. The Executive Director shall regularly report to the Council and the Board and shall submit an annual report to the Offic e of the Speaker of the Oklah oma House of Representatives and the Office of the President Pro Tempore of the Oklahoma State Senate. SECTION 6. NEW LAW A new section of law to be codified in the Oklahoma Statute s as Section 9205 of Title 74, unless there is created a duplication in numbering, reads as fol lows: A. The Oklahoma Broadband Office shall: 1. Conduct a study of and continually monitor broadband access in the state to assess: HB3363 HFLR Page 17 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. existing capabilities to access broadband telecommunication services, b. the costs of obtaining broadband services from existing providers, c. the estimated cost to improve broadband access, and d. the likelihood of changes in broadband access in the near and intermediate future based on available information regarding public and private programs to enhance access and adoption; and 2. Maintain, update, and execute the Statewide Broadband Plan as necessary. B. The Office shall incorporate the information as described in subsection A of this section into a mapping system that depicts resources, broadband coverage, connectivity speeds, and other such features as the Office deems relevant. The Office may also purchase data sets it deems necessary to complete such mapping system. C. The Office shall establish policies and regulations as may be necessary to implement the provisions of th is act. D. The Office shall establish policy as needed to implement a process whereby impacted parties may challenge or protest data and information published on the Office's mapping system. The p rocess shall include, but not be limited to, features that: 1. Are heard and ruled on at the Office level; HB3363 HFLR Page 18 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Provide for a ruling by the Office within sixty (60) days of the submitted challenge or protest ; and 3. Upon successful protest action, result in a timely correction of the map. E. The Office shall perform and maintain a study of existing grants, incentives, and programs that may improve physical access to broadband along with adoption of broadband technologies. The grants, incentives, and programs may include federal funds, state funds or resources, tribal funds or resources, donated funds, or funding available from foundations, endowments or similar resources, state or local tax incentives, state or local financing incentives or options, or federal, tribal, state or local regul atory policies that would be conducive to improving existing broadband access or establishing access where it does not currently exist. The Office shall regularly report on the cu rrently available grants, incentives, and programs and how best to utilize each. F. The Office shall create, and update no less than biannually, a Statewide Broadband Plan. The Plan shall detail what areas are served, underserved, or unserved according to the prevailing definitions of the FCC, and how best to improve the infrastructure and connectivity in underserved and unserved areas. The Plan shall include, but shall not be limited to, detailing a pathway for ninety-five percent (95%) of the state's population to be adequately served by June 30, 2028. HB3363 HFLR Page 19 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. The Office shall create the Capital Projects Fund Grant Report or provide the necessary information to the state entity drafting the Report. The Report shall be submitted to the Department of the Trea sury no later than September 24, 2022. The Office shall maintain the Report and submit any and all additional information as required. The Office shall work with the Joint Committee to ensure all approved broadband projects utilizing funds from the Capital Projects Fund follow the correct reporting requirements based on Department of Treasury guidance. H. Additionally, the Office is authorized to seek, apply for, and administer funding through grant opportunities. The Office is also authorized to administer grant funding awards to recipients and subrecipients. I. On or before October 31, 2022, the Office, with the advice of the Council, shall develop a set of broadband grants or incentive awards guidelines to be approved by the Board. The grants and incentive awards shall be for unserved and underserved areas. The Office shall submit a copy of the guidelines to the Office of the Speaker of the Oklahoma House of R epresentatives, the Office of the President Pro Tempore of the Oklahoma State Senate, and to the offices of the chairs of the appropriate legislative committees. The guidelines shall: 1. Consider a weighted approach for awards based upon the following: HB3363 HFLR Page 20 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. the area's need for services, including, but not limited to, whether the area is underserv ed or unserved, b. whether there are existing broadband assets in the area, based on the statewide map, c. whether existing federal, state, l ocal, tribal, or private resources have been allocated to broadband services in the area, d. a preference for federal, state, local, tribal, or private partnerships, and e. the capacity of the provider t o maintain assets for an extended period of time; 2. Recommend any necessary controls incl uding, but not limited to, capping the dollar amount of awards, allowing for an auditing process, and a process that allows for award clawbacks. These controls shall be in place to ensure the maximum efficiency of t he incentive award and to protect agains t waste, fraud, or abuse; and 3. Include annual reporting requirements of a ward recipients to assess effectiveness of such incentives which, shall include, but not be limited to, changes in coverage resulting from imple menting awarded grants and incentives . SECTION 7. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Secti on 9206 of Title 74, unless there is created a duplication in n umbering, reads as follows: HB3363 HFLR Page 21 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. State agencies, counties, cities, towns, school districts, career technology districts, institutions of higher education, public trusts, other entities or instrumentalities of local government, and Internet service provider s shall, at the request of the Oklahoma Broadband Office, provide information to the Office regarding any matters as specified in this act relevant to the Office's duties. B. The Office shall m aintain confidentiality as required by law for all information provided under the provisions of this sec tion. SECTION 8. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 9207 of Title 74, unless there is created a duplication in numbering, reads as foll ows: A. By December 31, 2022, the Executive Director of the Oklahoma Broadband Office shall identify all programs, personnel, and assets within state government that are duplicative or complementary to t he mission of the Office and of such recommend which programs, personnel, and assets the Executive Director identifies as needing to be transferred to the Office, except as provided in subsection C of this section. B. Upon the receipt of the recomm endation provided for in subsection A of this section, the Director of the Office of Management and Enterprise Services is authorized to transfer such programs, personnel, and assets to the Office. HB3363 HFLR Page 22 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. The following shall be exempt from the provisions of subsections A and B of this section: 1. Those assets or personnel associated with the regulation of broadband and Internet connectivity at the Oklahoma Corporation Commission; 2. Those assets or personnel associated with the Oklahoma Universal Service Fund located at the Corporation Commission; and 3. Assets owned by the Oklahoma Department of Transportation and the staff required to operate said assets. SECTION 9. NEW LAW A new section of law to be codified in the Oklahoma Stat utes as Section 9208 of Title 74, unless there is created a duplication in numbering, reads as follows: No funds received by the State Treasury dedicated to broadband through the Infrastructure Investment and Jobs Act of 2021, Public Law 117-58, by earlier federal l egislation, by state appropriation, or any subsequent federal funding dedicated to broadband shall be expended by the state, except as authorized by the Oklahoma Broadband Office. SECTION 10. NEW LAW A new section of law to be codif ied in the Oklahoma Statutes as Section 9209 of Title 74, unless there is created a duplication in numbering, reads as fo llows: A. The Office, with the participation and advice of the Broadband Expansion Council and approval from the Board, shall establish the State Broadband Grant Program. The Program shall HB3363 HFLR Page 23 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 include development of competitive grants to be awarded to applicants seeking to expand access to broadband Internet services in this state, focusing on areas considered unserved and underserved by the FCC. The Office, Council, and Board shall examine best practices in other states to facilitate the framework of the Program. The Office shall administer the Program. B. No grants shall be developed or awar ded under the provisions of this program that w ould duplicate existing broadband Internet services in this state. C. In the administration of the grant program auth orized by this section, the Office shall secure service testing dat a to ensure grant recipients provide the service or services proposed by such recipients when applying for such grants. D. All grant awards authorized pursuant to the provi sions of this section shall include a claw-back provision. For purposes of this subsection a "claw -back provision" shall mean a condition precedent to participate in the program whereby a grant recipient formally agrees to reimburse the program all or part of a grant award upon the failure of the recipient to fulfill contract terms included in the grant award. E. There is hereby created in the State Treas ury a revolving fund for the Office to be designated the "State Broadband Grant Program Revolving Fund". The revolving fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of HB3363 HFLR Page 24 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 all monies designated for deposit to said fund. All monies accruing to the credit of said revolving fund are hereby appropriated and may be budgeted and expended by the Office for purposes of awarding grants by and through the Office, pursuant to subsection A of this section and for the operating expenses of the Office. SECTION 11. AMENDATORY 17 O.S. 2021, Section 139.203, is amended to read as follows: Section 139.203 A. On or before October 31, 2021 2022, and annually thereafter, in accordance with the FCC Data Collection and Methodology, private broadband service providers operating in this state and satellite-based broadband private providers that hav e been designated as an eligible telecommunica tions carrier pursuant to 47 U.S.C., Section 214(e)(6) for any portion of Oklahoma, hereinafter referred to as "private providers", shall submit to the Oklahoma Department of Commerce and the Rural Broadband Ex pansion Council Oklahoma Broadband Office the broadband network area coverage map data the private providers are required to submit to the Federal Communications Commission FCC pursuant to the federal Broadband Deployment Accuracy and Technological Availability Act, 47 U.S.C., Section 641 et seq. The map data shall be updated annually thro ugh a supplemental submission by the private providers that reflects changes in area coverage from the preceding year, including updates that are the result of incentives and grants created, administered, or awarded by the Office. The Department Office is authorized to HB3363 HFLR Page 25 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 promulgate rules for the collection of the broadband network area coverage map reports from the private providers. B. On or before October 31 of each year, OneNet, the Office of Management and Enterprise Servic es, the Oklahoma Corporation Commission, and the Oklahoma Departm ent of Transportation, hereinafter referred to as "public entities", shall submit to the Oklahoma Department of Commerce Office and the Rural Broadband Expansion Council broadband network area coverage map data of all assets and network coverage in the for mat requested by the Oklahoma Department of Commerce and Council Office. C. Private providers and pu blic entities shall disclose to the Oklahoma Department of Commerce and the Rural Broadband Expansion Council Office the properties they serve and the maxi mum advertised download and upload speeds at which they provide any Internet services to those properties, and shall be afforded by the Oklahoma Department of Commerce and the Council a process to petition for correction of potential inaccuracies in the ma p. D. The reports and information required to be disclosed pursuant to this section by private providers shall remain confidential pursuant to Section 24A.10 of Title 51 of the Oklahoma Statutes. The Council Office shall determine the required submission format of the data submitted under the provisions of this act. In no instance shall private providers be required to submit any data, in substantive content or form or schedule, beyond or in HB3363 HFLR Page 26 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 advance of the data described in subsection A of this section, or any data containing customer information, such as names, addresses or account numbers. The Department shall use a third party to collect the data submitted by private providers under the provisions of this act. The third party shall deliver data to th e Department following a white label process to remove information identifying specific providers. E. On or before December 1 of each year, the Department and the Council Office shall update the statewide broadband services map required by subsection G E of Section 139.202 of Title 17 of the Oklahoma Statutes 5 of this act using the data collected under the provisions of this act in a manner that identifies the assets and service areas of the public entities while displaying anonymiz ed information, without reference to any specific private provider, of the assets and service areas of private providers. F. After the FCC comple tes the national Broadband Serviceable Location Fabric and accompanying National Broadband Availability Map, the Rural Broadband Expansion Council shall annually evaluate whether the State of Oklahoma needs to continue producing an annually updated statewi de broadband map in accordance with the provisions of this section. SECTION 12. RECODIFICATION 17 O.S. 2021, Section 139.201, as amended by Section 1 of this act, shall be recodified as HB3363 HFLR Page 27 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 9200 of Title 74 of the Oklahoma Statutes, unless there is created a duplication in numbering. SECTION 13. RECODIFICATION 17 O.S. 2021, Section 139.202, as amended by Section 4 of this act, shall be recodified as Section 9203 of Title 74 of the Oklahoma Statutes, unless there is created a duplication in numbering. SECTION 14. RECODIFICATION 17 O.S. 2021, Section 139.203, as amended by Section 11 of this act, shall be recodified as Section 9210 of Title 74 of the Oklahoma Statutes, un less there is created a duplication in numbering. SECTION 15. REPEALER 17 O.S. 2021, Section 139.204, is hereby repealed. SECTION 16. It being immediately necessary for the preservation of the public peace, healt h or safety, an emergency is hereby declared to exist, by r eason whereof this act shall ta ke effect and be in full force from and after its passage and approval. COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 03/02/2022 - DO PASS, As Amended and Coauthored.