Req. No. 10365 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) HOUSE BILL 1123 By: Bashore AS INTRODUCED An Act relating to broadband; amending Section 3, Chapter 229, O.S.L. 2022 (74 O.S. Supp. 2024, Section 9202), which relates to the broa dband governing board; modifying certain funding source; amending Section 10, Chapter 229, O.S.L. 2022 (74 O.S. Supp. 2024, Section 9209), which relates to the state broadband grant program; deleting State Broadband Grant Program Revolving Fund; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY Section 3, Chapter 229, O.S.L. 2022 (74 O.S. Supp. 2024, Section 9202), is amended to read as follows: Section 9202. 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 re gular reports from the Office 's Executive Director and the Executive Director 's staff on the status Req. No. 10365 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 s hall be appointed by the President Pro Tempore of the Oklahoma State Senate, t hree 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 affiliation, paid or unpaid, with any potential recipient of a grant administered under the provisions of this act, shall be appointed to or serve on the Board. C. Each appointee shall serve at the pleasure of his or her appointing authority a nd may be removed or replaced without cause. D. 1. The Board shall hold an organizational meeting not later than thirty (30) days from the effective date of this act. At such meeting, the Board shall adopt qualifications 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 prov ide for the process of filling the position in a reasonable time in accordance with the laws of this state. Req. No. 10365 Page 3 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. The Board shall hold meetings as necessary at a place and time to be fixed by the Board. The Board shall elect, at its first meeting, one of its members to serve as chair and another of its 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 or by five members of the Board by delivery of written notice to each member of the Board. A majority of members serving on the Board shall constitute a quorum of the Board. E. If a Board member is unable to fulfill his or her term for any reason, the appointing aut hority of such member may appoint a replacement to complete the remainder of the term. F. The Board shall be subject to the Oklahoma Open Meeting 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 rules as necessary to implement the provisions of the Oklahoma Broadband 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. Req. No. 10365 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 J. The Board shall oversee the annual budget for the Office, which shall be funded from the allowed administrative expenses of applicable federal pr ograms and funds available for expenditure from the State Broadband Grant Program Revolving Fund created pursuant to Section 10 of this act . K. The Board shall approve the State wide Broadband Plan and updates to the Plan as necessary. SECTION 2. AMENDATORY Section 10, Chapter 229, O.S.L. 2022 (74 O.S. Supp. 2024, Section 9209), is amended to read as follows: Section 9209. A. The Office, with the partic ipation and advice of the Broadband Expansion Council and approval from the Bo ard, shall establish the State Broadband Grant Program. The Program shall include development of competitive grants to be awarded to applicants seeking to expand access to broad band 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 th e Program. B. No grants shall be developed or awarded under the provisions of this program that would duplicate existing broadband Internet services in this state. C. In the administration of the grant program authorized by this section, the Office shall secure service testing data to ensure Req. No. 10365 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 grant recipients provide the service or services proposed by such recipients when applying for such grants. D. All grant awards authorized pursuant to the provisions of this section shall include a clawback provision . For purposes of this subsection, a "clawback 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 f ulfill contract terms included in the grant award. E. There is hereby created in the State Treasury 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 all monies designated f or 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 3. This act shall become effective November 1, 2025. 60-1-10365 JBH 12/28/24