Assembly Commerce and Economic Development Committee Statement to Assembly, No. 4808 (October 21, 2020)

Summary

A statement of the Assembly Commerce and Economic Development Committee to the Assembly on Assembly Bill No. 4808 of the State of New Jersey, dated October 21, 2020. The committee reports the bill favorably. The bill would establish in the Board of Public Utilities (BPU) the Broadband Assistance Office, to formulate and execute a Statewide policy to foster the provision of wired broadband service by government entities, including projects under a public-private partnership (P3) agreement. It would also establish in the BPU the non-lapsing State Broadband Fund to fund operation of the office. The BPU would report annually to the Governor and the Legislature on each broadband project developed.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT
                COMMITTEE

                         STATEMENT TO

                     ASSEMBLY, No. 4808

       STATE OF NEW JERSEY
                         DATED: OCTOBER 21, 2020

          The Assembly Commerce and Economic Development Committee
      reports favorably Assembly Bill No. 4808.
         This bill would establish, in the Board of Public Utilities (BPU),
      the “Broadband Assistance Office” (broadband office), and require
      the office to formulate and execute a comprehensive Statewide
      policy to foster the provision of wired broadband service by
      government entities. The bill would allow a government entity to
      develop a broadband project under a public-private partnership (P3)
      agreement.      The broadband office would be responsible for
      promoting and approving broadband projects under the bill. The
      broadband office would establish guidelines for the office’s
      approval, designation, operation, and reporting of broadband
      projects. The broadband office would oversee, coordinate, and
      provide assistance for broadband projects approved by the
      broadband office.
         The bill would bestow the following duties and responsibilities
      upon the broadband office:
           mapping Internet connectivity within the State;
           engaging with stakeholders, such as broadband infrastructure
              developers, broadband service providers, and local
              government and school officials representing underserved
              communities;
           coordinating financial and technical assistance to
              municipalities that lack adequate broadband service, or
              which contain households and small businesses that cannot
              currently afford to receive broadband service;
           encouraging government and private entities to invest in
              broadband projects;
           assisting government and private entities to develop
              broadband projects;
           promoting informed and timely decision-making with regard
              to the development of broadband projects;
           establishing appropriate qualifications for government and
              private entities undertaking a broadband project under a P3
              agreement; and
                                 2

       monitoring and enforcing the broadband project policies and
        procedures established pursuant to the bill, which may
        include a provision for potential revenue sharing
        opportunities between a government entity and a private
        entity in certain defined or agreed circumstances, including
        broadband projects that achieve profits that exceed a
        negotiated rate of return established for a private entity in a
        P3 agreement.
   In evaluating a proposed broadband project, the bill would
require the broadband office to: 1) consider whether leasing or
purchasing broadband infrastructure is more advantageous in
providing faster broadband service; 2) consider whether a
government entity or a non-profit corporation should provide
broadband infrastructure or broadband service to an underserved
community; 3) evaluate methods used by communities across the
country to provide broadband infrastructure or broadband service to
an underserved community; 4) determine the most cost effective
method in which to establish broadband infrastructure and
broadband service; and 5) explore all possible sources of funding
and technical assistance for the establishment of broadband
infrastructure and broadband service in underserved communities.
   The bill would establish in the BPU the non-lapsing “State
Broadband Fund” (broadband fund) to fund operation of the
broadband office. The BPU would determine the level of funding
and the appropriate administration of the broadband fund. The bill
would require the BPU to provide sufficient funding to the
broadband office to enable the office to provide funding for
underserved communities to pay for broadband service and for the
installation or expanded use of broadband infrastructure for
communities that lack broadband access, specifically the portion of
a communications infrastructure network that physically reaches the
residents' or small business’s premises within those communities.
   The bill would require BPU to annually report to the Governor
and the Legislature the number, nature, structure, and scope of each
broadband project developed, and whether the broadband project is
developed under a P3 agreement. Among other things, the report
would set forth recommendations for improving the program to
better foster the development of broadband projects.


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