S-3283.1

SENATE BILL 5586

State of Washington

67th Legislature

2022 Regular Session

BySenators Frockt, Hasegawa, Mullet, and Nguyen

Prefiled 12/22/21.Read first time 01/10/22.Referred to Committee on Business, Financial Services & Trade.

AN ACT Relating to the authority of the community economic revitalization board with respect to loans and grants to political subdivisions and federally recognized Indian tribes for broadband; adding a new section to chapter 43.160 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature recognizes that high-speed internet connectivity through broadband is essential to support: Educational opportunity; innovations in the provision of education, public safety, and health care; and business growth. The legislature also finds that open access broadband networks create a public platform that bolsters the private sector's ability to provide broadband internet access to communities for which access was previously cost-prohibitive. Therefore, to efficiently and sustainably expand access to broadband throughout Washington, this act establishes a grant and loan program through the community economic revitalization board for local governments and federally recognized Indian tribes to develop open access broadband networks.

NEW SECTION. Sec. 2. A new section is added to chapter 43.160 RCW to read as follows:

(1) Subject to the availability of amounts appropriated for this specific purpose, the board is authorized to make broadband loans and grants to local governments and to federally recognized Indian tribes for the purposes of financing the cost to build infrastructure to provide high-speed, open access broadband service for the purpose of economic development or community development. However, no more than 50 percent of all financial assistance approved by the board in any biennium may consist of grants to local governments and federally recognized Indian tribes.

(2) An application for funding must be made in the form and manner as the board may prescribe. In making grants or loans, the board must conform to the following requirements:

(a) The board may not provide financial assistance for:

(i) A project where the primary purpose is to facilitate or promote gambling; and

(ii) The deployment of a publicly owned telecommunications infrastructure network, or backbone, solely for the sake of creating a competitive, publicly owned telecommunications infrastructure network;

(b) The board may provide financial assistance for projects that encourage, foster, develop, and improve broadband within the state in order to:

(i) Drive job creation, promote innovation, and expand markets for local businesses; or

(ii) Serve the ongoing and growing needs of local education systems, health care systems, public safety systems, industries, businesses, governmental operations, and citizens;

(i) The local government and supported by the local associate development organization or local workforce development council; or

(ii) The governing body of the federally recognized Indian tribe;

(d) The board may allow de minimis general system improvements to be funded if they are critically linked to the viability of the project;

(e) When evaluating and prioritizing projects, the board must give consideration, at a minimum, to the following factors:

(i) The project's value to the community, including evidence of support from affected local businesses and government;

(ii) The project's feasibility, using standard economic principles;

(iii) The commitment of local matching resources and local participation;

(iv) The project uses a technology-neutral approach in order to expand access at the lowest cost;

(v) The project's inclusion in a capital facilities plan, comprehensive plan, or local economic development plan consistent with applicable state planning requirements; and

(vi) The project's readiness to proceed.

(3) A responsible official of the local government or the federally recognized Indian tribe must be present during board deliberations and provide information that the board requests.

(4) Before any financial assistance application is approved, the local government or the federally recognized Indian tribe seeking the assistance must demonstrate to the board that no other timely source of funding is available to it at costs reasonably similar to financing available from the board.

(5) For the purposes of this section, "broadband" means networks of deployed telecommunications equipment and technologies necessary to provide high-speed internet access and other advanced telecommunications services.

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