House Bill 1673 - Broadband Infrastructure Loans and Grants by the Public Works Board

Summary

House Bill 1673, State of Washington 67th Legislature, 2022 Regular Session, sponsored by Representatives Ryu, Donaghy, Leavitt and others by request of Public Works Board. It was prefiled December 20, 2021 and referred to the Committee on Community & Economic Development. The bill relates to broadband infrastructure loans and grants made by the public works board and amends RCW 43.155.160 and 42.56.270. Section 1 directs the board to set up a competitive grant and loan program for broadband in unserved areas, lists eligible applicants such as local governments, tribes and nonprofit organizations, and requires the board to publish its evaluation criteria at least sixty days before applications open.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

     Z-0381.1

                                HOUSE BILL 1673


     State of Washington       67th Legislature       2022 Regular Session

     By Representatives Ryu, Donaghy, Leavitt, Boehnke, Eslick, Rule,
     Kloba, Wylie, Ortiz-Self, Dolan, Taylor, and Frame; by request of
     Public Works Board

     Prefiled 12/20/21. Read first time 01/10/22.    Referred to Committee
     on Community & Economic Development.




1        AN ACT Relating to broadband infrastructure loans and grants made
2    by the public works board; and amending RCW 43.155.160 and 42.56.270.


3    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 4       Sec. 1. RCW 43.155.160 and 2021 c 332 s 7040 are each amended to
 5   read as follows:
 6       (1) The board, in collaboration with the office, shall establish
 7   a competitive grant and loan program to award funding to eligible
 8   applicants in order to promote the expansion of access to broadband
 9   service in unserved areas of the state.
10       (2)(a) Grants and loans may be awarded under this section to
11   assist in funding acquisition, installation, and construction of
12   middle mile and last mile infrastructure that supports broadband
13   services and to assist in funding strategic planning for deploying
14   broadband service in unserved areas.
15       (b) The board may choose to fund all or part of an application
16   for funding, provided that the application meets the requirements of
17   subsection (9) of this section.
18       (3) Eligible applicants for grants and loans awarded under this
19   section include:
20       (a) Local governments;
21       (b) Tribes;
                                     p. 1                           HB 1673
 1       (c) Nonprofit organizations;
 2       (d) Cooperative associations;
 3       (e) Multiparty entities comprised of public entity members;
 4       (f) Limited liability corporations organized for the purpose of
 5   expanding broadband access; and
 6       (g) Incorporated businesses or partnerships.
 7       (4)(a)   The  board   shall   develop  administrative   procedures
 8   governing the application and award process. The board shall act as
 9   fiscal agent for the program and is responsible for receiving and
10   reviewing applications and awarding funds under this section.
11       (b) At least sixty days prior to the first day applications may
12   be submitted each fiscal year, the board must publish on its website
13   the specific criteria and any quantitative weighting scheme or
14   scoring system that the board will use to evaluate or rank
15   applications and award funding.
16       (c) The board may maintain separate accounting in the statewide
17   broadband account created in RCW 43.155.165 as the board deems
18   necessary to carry out the purposes of this section.
19       (d) The board must provide a method for the allocation of loans,
20   grants, provision of technical assistance, and interest rates under
21   this section.
22       (5) An applicant for a grant or loan under this section must
23   provide the following information on the application:
24       (a) The location of the project;
25       (b) Evidence regarding the unserved nature of the community in
26   which the project is to be located;
27       (c) Evidence that proposed infrastructure will be capable of
28   scaling to greater download and upload speeds;
29       (d) The number of households passed that will gain access to
30   broadband service as a result of the project or whose broadband
31   service will be upgraded as a result of the project;
32       (e) The estimated cost of retail services to end users
33   facilitated by a project;
34       (f) The proposed actual download and upload speeds experienced by
35   end users;
36       (g) Evidence of significant community institutions that will
37   benefit from the proposed project;
38       (h) Anticipated economic, educational, health care, or public
39   safety benefits created by the project;
40       (i) Evidence of community support for the project;
                                     p. 2                          HB 1673
 1       (j) If available, a description of the applicant's user adoption
 2   assistance program and efforts to promote the use of newly available
 3   broadband services created by the project;
 4       (k) The estimated total cost of the project;
 5       (l) Other sources of funding for the project that will supplement
 6   any grant or loan award;
 7       (m) A demonstration of the project's long-term sustainability,
 8   including   the   applicant's  financial   soundness,  organizational
 9   capacity, and technical expertise;
10       (n) A strategic plan to maintain long-term operation of the
11   infrastructure;
12       (o) Evidence that ((no later than six weeks)) before submission
13   of the application, the applicant contacted, in writing, all entities
14   providing broadband service near the proposed project area to ask
15   each broadband service provider's plan to upgrade broadband service
16   in the project area to speeds that meet or exceed the state's
17   definition for broadband service as defined in RCW 43.330.530, within
18   the time frame specified in the proposed grant or loan activities;
19       (p) If applicable, the broadband service providers' written
20   responses to the inquiry made under (o) of this subsection; ((and))
21       (q) Evidence that no later than 30 days prior to submission of
22   the application, the applicant submitted the proposed geographic
23   broadband service area and the proposed broadband speeds to the
24   public works board; and
25       (r) Any additional information requested by the board.
26       (6)(a) ((Within thirty days of the close of the grant and loan
27   application process, the)) The board shall publish on its website for
28   at least 30 days the proposed geographic broadband service area and
29   the proposed broadband speeds for each application submitted.
30       (b) Any existing broadband service provider near the proposed
31   project area may, within thirty days of publication of the
32   information under (a) of this subsection, submit in writing to the
33   board an objection to ((an application)) a proposed broadband
34   project. An objection must contain information demonstrating that:
35       (i) The project would result in overbuild, meaning that the
36   objecting provider currently provides, or has begun construction to
37   provide, broadband service to end users in the proposed project area
38   at speeds equal to or greater than the state speed goals contained in
39   RCW 43.330.536; or


                                     p. 3                          HB 1673
 1       (ii) The objecting provider commits to complete construction of
 2   broadband infrastructure and provide broadband service to end users
 3   in the proposed project area at speeds equal to or greater than the
 4   state speed goals contained in RCW 43.330.536, no later than twenty-
 5   four months after the date awards are made under this section for the
 6   grant and loan cycle under which the application was submitted.
 7       (c) Objections submitted to the board under this subsection must
 8   be certified by affidavit.
 9       (d) The board may evaluate the information submitted under this
10   section by the objecting provider and must consider it in making a
11   determination on the application objected to. The board may request
12   clarification or additional information. The board may choose to not
13   fund a project if the board determines that the objecting provider's
14   commitment to provide broadband service that meets the requirements
15   of (b) of this subsection in the proposed project area is credible.
16   In assessing the commitment, the board may consider whether the
17   objecting provider has or will provide a bond, letter of credit, or
18   other indicia of financial commitment guaranteeing the project's
19   completion.
20       (e) If the board denies funding to an applicant as a result of a
21   broadband service provider's objection made under this section, and
22   the broadband service provider does not fulfill its commitment to
23   provide broadband service in the project area, then for the following
24   two grant and loan cycles, the board is prohibited from denying
25   funding to an applicant on the basis of a challenge by the same
26   broadband service provider, unless the board determines that the
27   broadband service provider's failure to fulfill the provider's
28   commitment was the result of factors beyond the broadband service
29   provider's control. The board is not prohibited from denying funding
30   to an applicant for reasons other than an objection by the same
31   broadband service provider.
32       (f) An applicant or broadband service provider that objected to
33   the application may request a debriefing conference regarding the
34   board's decision on the application. Requests for debriefing must be
35   coordinated by the office and must be submitted in writing in
36   accordance with procedures specified by the office.
37       (g) Confidential business and financial information submitted by
38   an objecting provider under this subsection is exempt from disclosure
39   under chapter 42.56 RCW.


                                     p. 4                          HB 1673
 1       (7)(a) In evaluating applications and awarding funds, the board
 2   shall give priority to applications that are constructed in areas
 3   identified as unserved.
 4       (b) In evaluating applications and awarding funds, the board may
 5   give priority to applications that:
 6       (i) Provide assistance to public-private partnerships deploying
 7   broadband infrastructure from areas currently served with broadband
 8   service to areas currently lacking access to broadband services;
 9       (ii) Demonstrate project readiness to proceed;
10       (iii) Construct infrastructure that is open access, meaning that
11   during the useful life of the infrastructure, service providers may
12   use network services and facilities at rates, terms, and conditions
13   that are not discriminatory or preferential between providers, and
14   employing accountable interconnection arrangements published and
15   available publicly;
16       (iv) Are submitted by tribal governments whose reservations are
17   in rural and remote areas where reliable and efficient broadband
18   services are unavailable to many or most residents;
19       (v) Bring broadband service to tribal lands, particularly to
20   rural and remote tribal lands or areas servicing rural and remote
21   tribal entities;
22       (vi) Are submitted by tribal governments in rural and remote
23   areas that have spent significant amounts of tribal funds to address
24   the problem but cannot provide necessary broadband services without
25   either additional state support, additional federal support, or both;
26       (vii) Serve economically distressed areas of the state as the
27   term "distressed area" is defined in RCW 43.168.020;
28       (viii) Offer new or substantially upgraded broadband service to
29   important community anchor institutions including, but not limited
30   to, libraries, educational institutions, public safety facilities,
31   and health care facilities;
32       (ix) Facilitate the use of telemedicine and electronic health
33   records, especially in deliverance of behavioral health services and
34   services to veterans;
35       (x) Provide technical support and train residents, businesses,
36   and institutions in the community served by the project to utilize
37   broadband service;
38       (xi) Include a component to actively promote the adoption of
39   newly available broadband services in the community;


                                     p. 5                          HB 1673
 1       (xii) Provide evidence of strong support for the project from
 2   citizens, government, businesses, and community institutions;
 3       (xiii) Provide access to broadband service to a greater number of
 4   unserved households and businesses, including farms;
 5       (xiv) Utilize equipment and technology demonstrating greater
 6   longevity of service;
 7       (xv) Seek the lowest amount of state investment per new location
 8   served and leverage greater amounts of funding for the project from
 9   other private and public sources;
10       (xvi) Include evidence of a customer service plan;
11       (xvii) Consider leveraging existing broadband infrastructure and
12   other unique solutions;
13       (xviii) Benefit public safety and fire preparedness; or
14       (xix) Demonstrate other priorities as the board, in collaboration
15   with the office, may prescribe by rule.
16       (c) The board shall endeavor to award funds under this section to
17   qualified applicants in all regions of the state.
18       (d) The board shall consider affordability and quality of service
19   to end users in making a determination on any application.
20       (e) The board, in collaboration with the office, may develop
21   additional   rules   for  eligibility,   project   applications,   the
22   associated objection process, and funding priority, as provided under
23   this subsection and subsections (3), (5), and (6) of this section.
24       (f) The board, in collaboration with the office, may adopt rules
25   for a voluntary nonbinding mediation between incumbent providers and
26   applicants to the grant and loan program created in this section.
27       (8) To ensure a grant or loan to a private entity under this
28   section primarily serves the public interest and benefits the public,
29   any such grant or loan must be conditioned on a guarantee that the
30   asset or infrastructure to be developed will be maintained for public
31   use for a period of at least fifteen years.
32       (9)(a) No funds awarded under this section may fund more than
33   fifty percent of the total cost of the project, except as provided in
34   (b) of this subsection.
35       (b) The board may choose to fund up to ninety percent of the
36   total cost of a project in financially distressed areas as the term
37   "distressed area" is defined in RCW 43.168.020, and in areas
38   identified as Indian country as the term "Indian country" is defined
39   in WAC 458-20-192.


                                     p. 6                          HB 1673
 1       (c) Funds awarded to a single project under this section must not
 2   exceed two million dollars, except that the board may choose to fund
 3   projects qualifying for the exception in (b) of this subsection up
 4   to, but not to exceed, five million dollars.
 5       (10) ((Except for during the 2021-2023 fiscal biennium, prior to
 6   awarding funds under this section, the board must consult with the
 7   Washington utilities and transportation commission. The commission
 8   must provide to the board an assessment of the technical feasibility
 9   of a proposed application. The board must consider the commission's
10   assessment as part of its evaluation of a proposed application.
11       (11))) The board shall have such rights of recovery in the event
12   of default in payment or other breach of financing agreement as may
13   be provided in the agreement or otherwise by law.
14       (((12))) (11) The community economic revitalization board shall
15   facilitate the timely transmission of information and documents from
16   its broadband program to the board in order to effectuate an orderly
17   transition.
18       (12)(a) Subject to rules promulgated by the board, the board may
19   make low-interest or interest-free loans or grants to eligible
20   applicants for emergency public works broadband projects. Emergency
21   public works broadband projects include construction, repair,
22   reconstruction,   replacement,  rehabilitation,   or   improvement to
23   critical broadband infrastructure that has been damaged by unforeseen
24   events. The loans or grants may be used to help fund all or part of
25   an emergency public works broadband infrastructure project less any
26   reimbursement from any of the following sources: (i) Federal disaster
27   or emergency funds, including funds from the federal emergency
28   management agency; (ii) state disaster or emergency funds; (iii)
29   insurance settlements; and (iv) litigation.
30       (b) Eligible applicants for grants and loans awarded under this
31   subsection are the same as those described in subsection (3) of this
32   section.
33       (13) The definitions in RCW 43.330.530 apply throughout this
34   section unless the context clearly requires otherwise.


35       Sec. 2.   RCW 42.56.270 and 2021 c 308 s 4 are each amended to
36   read as follows:
37       The following financial, commercial, and proprietary information
38   is exempt from disclosure under this chapter:


                                     p. 7                          HB 1673
 1       (1) Valuable formulae, designs, drawings, computer source code or
 2   object code, and research data obtained by any agency within five
 3   years of the request for disclosure when disclosure would produce
 4   private gain and public loss;
 5       (2) Financial information supplied by or on behalf of a person,
 6   firm, or corporation for the purpose of qualifying to submit a bid or
 7   proposal for (a) a ferry system construction or repair contract as
 8   required by RCW 47.60.680 through 47.60.750; (b) highway construction
 9   or improvement as required by RCW 47.28.070; or (c) alternative
10   public works contracting procedures as required by RCW 39.10.200
11   through 39.10.905;
12       (3) Financial and commercial information and records supplied by
13   private persons pertaining to export services provided under chapters
14   43.163 and 53.31 RCW, and by persons pertaining to export projects
15   under RCW 43.23.035;
16       (4) Financial and commercial information and records supplied by
17   businesses or individuals during application for loans or program
18   services provided by chapters 43.325, 43.163, 43.160, 43.330, and
19   43.168 RCW and RCW 43.155.160, or during application for economic
20   development loans or program services provided by any local agency;
21       (5) Financial information, business plans, examination reports,
22   and any information produced or obtained in evaluating or examining a
23   business and industrial development corporation organized or seeking
24   certification under chapter 31.24 RCW;
25       (6) Financial and commercial information supplied to the state
26   investment board by any person when the information relates to the
27   investment of public trust or retirement funds and when disclosure
28   would result in loss to such funds or in private loss to the
29   providers of this information;
30       (7) Financial and valuable trade information under RCW 51.36.120;
31       (8) Financial, commercial, operations, and technical and research
32   information and data submitted to or obtained by the clean Washington
33   center in applications for, or delivery of, program services under
34   chapter 70.95H RCW;
35       (9) Financial and commercial information requested by the public
36   stadium authority from any person or organization that leases or uses
37   the stadium and exhibition center as defined in RCW 36.102.010;
38       (10)(a) Financial information, including but not limited to
39   account numbers and values, and other identification numbers supplied
40   by or on behalf of a person, firm, corporation, limited liability
                                     p. 8                          HB 1673
 1   company, partnership, or other entity related to an application for a
 2   horse racing license submitted pursuant to RCW 67.16.260(1)(b),
 3   marijuana producer, processor, or retailer license, liquor license,
 4   gambling license, or lottery retail license;
 5       (b) Internal control documents, independent auditors' reports and
 6   financial statements, and supporting documents: (i) Of house-banked
 7   social card game licensees required by the gambling commission
 8   pursuant to rules adopted under chapter 9.46 RCW; or (ii) submitted
 9   by tribes with an approved tribal/state compact for class III gaming;
10       (c) Valuable formulae or financial or proprietary commercial
11   information records received during a consultative visit or while
12   providing consultative services to a licensed marijuana business in
13   accordance with RCW 69.50.561;
14       (11) Proprietary data, trade secrets, or other information that
15   relates to: (a) A vendor's unique methods of conducting business; (b)
16   data unique to the product or services of the vendor; or (c)
17   determining prices or rates to be charged for services, submitted by
18   any vendor to the department of social and health services or the
19   health care authority for purposes of the development, acquisition,
20   or implementation of state purchased health care as defined in RCW
21   41.05.011;
22       (12)(a) When supplied to and in the records of the department of
23   commerce:
24       (i) Financial and proprietary information collected from any
25   person and provided to the department of commerce pursuant to RCW
26   43.330.050(8);
27       (ii) Financial or proprietary information collected from any
28   person and provided to the department of commerce or the office of
29   the governor in connection with the siting, recruitment, expansion,
30   retention, or relocation of that person's business and until a siting
31   decision is made, identifying information of any person supplying
32   information under this subsection and the locations being considered
33   for siting, relocation, or expansion of a business; and
34       (iii) Financial or proprietary information collected from any
35   person and provided to the department of commerce pursuant to RCW
36   43.31.625 (3)(b) and (4);
37       (b) When developed by the department of commerce based on
38   information as described in (a)(i) of this subsection, any work
39   product is not exempt from disclosure;


                                     p. 9                          HB 1673
 1       (c) For the purposes of this subsection, "siting decision" means
 2   the decision to acquire or not to acquire a site;
 3       (d) If there is no written contact for a period of sixty days to
 4   the department of commerce from a person connected with siting,
 5   recruitment, expansion, retention, or relocation of that person's
 6   business, information described in (a)(ii) of this subsection will be
 7   available to the public under this chapter;
 8       (13) Financial and proprietary information submitted to or
 9   obtained by the department of ecology or the authority created under
10   chapter 70A.500 RCW to implement chapter 70A.500 RCW;
11       (14) Financial, commercial, operations, and technical and
12   research information and data submitted to or obtained by the life
13   sciences discovery fund authority in applications for, or delivery
14   of, grants under RCW 43.330.502, to the extent that such information,
15   if revealed, would reasonably be expected to result in private loss
16   to the providers of this information;
17       (15) Financial and commercial information provided as evidence to
18   the department of licensing as required by RCW 19.112.110 or
19   19.112.120, except information disclosed in aggregate form that does
20   not permit the identification of information related to individual
21   fuel licensees;
22       (16) Any production records, mineral assessments, and trade
23   secrets submitted by a permit holder, mine operator, or landowner to
24   the department of natural resources under RCW 78.44.085;
25       (17)(a) Farm plans developed by conservation districts, unless
26   permission to release the farm plan is granted by the landowner or
27   operator who requested the plan, or the farm plan is used for the
28   application or issuance of a permit;
29       (b) Farm plans developed under chapter 90.48 RCW and not under
30   the federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject
31   to RCW 42.56.610 and 90.64.190;
32       (18) Financial, commercial, operations, and technical and
33   research information and data submitted to or obtained by a health
34   sciences and services authority in applications for, or delivery of,
35   grants under RCW 35.104.010 through 35.104.060, to the extent that
36   such information, if revealed, would reasonably be expected to result
37   in private loss to providers of this information;
38       (19) Information gathered under chapter 19.85 RCW or RCW
39   34.05.328 that can be identified to a particular business;


                                     p. 10                         HB 1673
 1       (20) Financial and commercial information submitted to or
 2   obtained by the University of Washington, other than information the
 3   university is required to disclose under RCW 28B.20.150, when the
 4   information relates to investments in private funds, to the extent
 5   that such information, if revealed, would reasonably be expected to
 6   result in loss to the University of Washington consolidated endowment
 7   fund or to result in private loss to the providers of this
 8   information;
 9       (21) Market share data submitted by a manufacturer under RCW
10   70A.500.190(4);
11       (22) Financial information supplied to the department of
12   financial institutions, when filed by or on behalf of an issuer of
13   securities for the purpose of obtaining the exemption from state
14   securities registration for small securities offerings provided under
15   RCW 21.20.880 or when filed by or on behalf of an investor for the
16   purpose of purchasing such securities;
17       (23) Unaggregated or individual notices of a transfer of crude
18   oil that is financial, proprietary, or commercial information,
19   submitted   to   the   department   of   ecology   pursuant   to   RCW
20   90.56.565(1)(a), and that is in the possession of the department of
21   ecology or any entity with which the department of ecology has shared
22   the notice pursuant to RCW 90.56.565;
23       (24) Financial institution and retirement account information,
24   and building security plan information, supplied to the liquor and
25   cannabis board pursuant to RCW 69.50.325, 69.50.331, 69.50.342, and
26   69.50.345, when filed by or on behalf of a licensee or prospective
27   licensee for the purpose of obtaining, maintaining, or renewing a
28   license to produce, process, transport, or sell marijuana as allowed
29   under chapter 69.50 RCW;
30       (25)   Marijuana  transport   information,   vehicle  and   driver
31   identification data, and account numbers or unique access identifiers
32   issued to private entities for traceability system access, submitted
33   by an individual or business to the liquor and cannabis board under
34   the requirements of RCW 69.50.325, 69.50.331, 69.50.342, and
35   69.50.345 for the purpose of marijuana product traceability.
36   Disclosure to local, state, and federal officials is not considered
37   public disclosure for purposes of this section;
38       (26) Financial and commercial information submitted to or
39   obtained by the retirement board of any city that is responsible for
40   the management of an employees' retirement system pursuant to the
                                     p. 11                         HB 1673
 1   authority of chapter 35.39 RCW, when the information relates to
 2   investments in private funds, to the extent that such information, if
 3   revealed, would reasonably be expected to result in loss to the
 4   retirement fund or to result in private loss to the providers of this
 5   information except that (a) the names and commitment amounts of the
 6   private funds in which retirement funds are invested and (b) the
 7   aggregate quarterly performance results for a retirement fund's
 8   portfolio of investments in such funds are subject to disclosure;
 9       (27) Proprietary financial, commercial, operations, and technical
10   and research information and data submitted to or obtained by the
11   liquor and cannabis board in applications for marijuana research
12   licenses under RCW 69.50.372, or in reports submitted by marijuana
13   research licensees in accordance with rules adopted by the liquor and
14   cannabis board under RCW 69.50.372;
15       (28) Trade secrets, technology, proprietary information, and
16   financial considerations contained in any agreements or contracts,
17   entered into by a licensed marijuana business under RCW 69.50.395,
18   which may be submitted to or obtained by the state liquor and
19   cannabis board;
20       (29) Financial, commercial, operations, and technical and
21   research information and data submitted to or obtained by the Andy
22   Hill cancer research endowment program in applications for, or
23   delivery of, grants under chapter 43.348 RCW, to the extent that such
24   information, if revealed, would reasonably be expected to result in
25   private loss to providers of this information;
26       (30) Proprietary information filed with the department of health
27   under chapter 69.48 RCW;
28       (31) Records filed with the department of ecology under chapter
29   70A.515 RCW that a court has determined are confidential valuable
30   commercial information under RCW 70A.515.130; and
31       (32)   Unaggregated   financial,    proprietary,  or   commercial
32   information submitted to or obtained by the liquor and cannabis board
33   in applications for licenses under RCW 66.24.140 or 66.24.145, or in
34   any reports or remittances submitted by a person licensed under RCW
35   66.24.140 or 66.24.145 under rules adopted by the liquor and cannabis
36   board under chapter 66.08 RCW.

                                  --- END ---




                                     p. 12                         HB 1673


File and source

File

2022-01-11_a29397_bill_1673.pdf

Size

109,881 bytes

SHA-256

ef499891936a2fdf42c255c198784682dfc643357180f835537f1ee31b9c688b

Our copy

2022-01-11_a29397_bill_1673.pdf

Original

No public link identified.