BILL REQ. #:  H-1534.2 

READ FIRST TIME 03/02/09.   

     AN ACT Relating to broadband adoption and deployment; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.29A RCW; and adding a new chapter to Title 43 RCW.

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

NEW SECTION.  Sec. 1   The legislature finds and declares the following:
     (1) The deployment and adoption of high-speed internet services and technology advancements enhances economic development and public safety for the state's communities, as well as offering improved health care and access to consumer and legal services, increased educational and civic participation opportunities, and a better quality of life for the state's residents.
     (2) Improvements in the deployment and adoption of high-speed internet services and the strategic inclusion of technology advancements and technology education are critical to ensuring that Washington remains competitive and continues to provide a skilled workforce, attract businesses, and stimulate job growth.
     (3) The state must encourage and support strategic partnerships of public, private, nonprofit, and community-based sectors in the continued growth and development of high-speed internet services and information technology for state residents and businesses. This includes ensuring: Digital inclusion in access; literacy and content; and that all Washingtonians are able to obtain and utilize broadband fully, regardless of location, economic status, literacy level, age, disability, or the size of the business or nonprofit organization.
     (4) In light of the importance of broadband deployment and adoption to the economy, health, safety, and welfare of the people of Washington, it is essential the legislature create a broadband programs management structure and volunteer council capable of developing and ensuring the implementation of statewide broadband strategies.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Authority" means the broadband adoption and deployment authority created in section 3 of this act.
     (2) "Community technology programs" means programs that are engaged in diffusing information and communications technology in local communities, particularly in underserved areas. These programs may include, but are not limited to, programs that provide education and skill-building opportunities, hardware and software, internet connectivity, and development of locally relevant content and delivery of vital services through technology. Community technology programs are usually provided by nonprofit or public agencies in public community settings. These include youth and community centers, small business and workforce training centers, mutual assistance associations and settlement houses, low-income housing, libraries, or schools opened for community programs.
     (3) "Council" means the volunteer council on digital inclusion created in section 6 of this act.
     (4) "Underserved areas" means areas in which the broadband speeds are less than seven hundred sixty eight kilobits download speed and two hundred kilobits per second upload speed.

NEW SECTION.  Sec. 3   The broadband adoption and deployment authority is created within the department of information services. The authority may apply for and oversee implementation of federally funded or mandated adoption programs and may adopt rules to administer these programs. These programs may include, but are not limited to, the following:
     (1) Contracting for and purchasing a completed map which may include adoption information, availability information, types of deployment technology used, and available speed tiers for high-speed internet based on form 477 data collected by the federal communications commission;
     (2) Tracking residential, nonprofit organizations and business adoption of high-speed internet, computers, and related information technology through publicly available sources;
     (3) Working with communities to identify barriers to the adoption of broadband service and related information technology services by individuals, nonprofit organizations, and businesses;
     (4) Identifying broadband demand opportunities in communities by working cooperatively with local organizations, government agencies, and businesses;
     (5) Creating, implementing, and administering programs to improve computer ownership, technology literacy, and high-speed internet access for populations not currently served or underserved in the state, which may include programs to provide low-income families with reduced cost internet access or programs to provide low-cost internet access to nonprofit entities as suggested in the K-20 program;
     (6) Creating additional programs to spur the development of high-speed internet resources in the state, which may include, but is not limited to:
     (a) Soliciting funding in the form of grants or donations that may be deposited into the community technology opportunity account created in RCW 28B.32.030;
     (b) Establishing technology literacy and digital inclusion programs and establishing low-cost hardware and software purchasing programs;
     (c) Developing last-mile technology loan programs targeting small businesses or businesses located in underserved areas; and
     (d) Including community technology organizations in state hardware and software purchasing programs;
     (7) Administering the community technology opportunity program as defined in chapter 28B.32 RCW; and
     (8) Establishing a matching grant program, subject to available funding, to encourage private and public telecommunications deployment in underserved areas or areas in which broadband speeds are below the current federal communication commission's definition of high-speed internet.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.04 RCW to read as follows:
     (1) A telecommunications company shall be allowed a credit against taxes due under this chapter in an amount equal to fifty percent of contributions made in any fiscal year to the community technology opportunity account created in RCW 28B.32.030. The credit shall be taken in a form and manner as required by the department. The telecommunications company must make the contribution before claiming a credit authorized under this section. The credit under this section shall not exceed two hundred thousand dollars per fiscal year per telecommunications company. The credit may not exceed the tax that would otherwise be due under this chapter. Refunds shall not be granted in the place of credits.
     (2) Except as provided under subsection (3) of this section, a tax credit claimed under this section may not be carried over to another year.
     (3) Any amount of tax credit otherwise allowable under this section not claimed by a telecommunications company in any calendar year may be carried over and claimed against the tax liability for the next succeeding calendar year. Any credit remaining unused in the next succeeding calendar year may be carried forward and claimed against the tax liability for the second succeeding calendar year; and any credit not used in that second succeeding calendar year may be carried over and claimed against the tax liability for the third succeeding calendar year, but may not be carried over for any calendar year thereafter.
     (4) Credits are available on a first in-time basis. The department shall disallow any credits, or portion thereof, that would cause the total amount of credits claimed under this section during any calendar year to exceed five hundred thousand dollars. The department shall provide written notice to any telecommunications company who has claimed tax credits in excess of the five hundred thousand dollar limitation in this subsection. The notice shall indicate the amount of tax due and shall provide that the tax be paid within thirty days from the date of such notice. The department shall not assess penalties and interest as provided in chapter 82.32 RCW on the amount due in the initial notice if the amount due is paid by the due date specified in the notice, or any extension thereof.
     (5) To claim a credit under this section, a telecommunications company must electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department. Any return, form, or information required to be filed in an electronic format under this section is not filed until received by the department in an electronic format. As used in this subsection, "returns" has the same meaning as "return" in RCW 82.32.050.
     (6) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section.
     (7) The department shall not allow any credit under this section before July 1, 2009.
     (8) The right to earn tax credits under this section expires June 30, 2018.
     (9) For purposes of this section, "telecommunications company" has the same meaning as defined in RCW 80.04.010.

NEW SECTION.  Sec. 5   A new section is added to chapter 82.29A RCW to read as follows:
     Taxes collected under RCW 82.29A.030 from a telecommunications company, as defined in RCW 80.04.010, as a result of the company's leasehold interest in publicly owned property shall be deposited in the community technology opportunity account created in RCW 28B.32.030 and used to fund the community technology opportunity program under chapter 28B.32 RCW.

NEW SECTION.  Sec. 6   (1) The council on digital inclusion is created. The council must include, but is not limited to, volunteer representatives from community technology organizations, telecommunications providers, higher education, K-12 education, public health, public housing, and government entities that are engaged in community technology activities.
     (2) The council shall:
     (a) Undertake a thorough review of grant programs available through the federal government, local agencies, telecommunications providers, and business and charitable entities for the purposes of identifying appropriate sources of revenues for the community technology opportunity account created in RCW 28B.32.030;
     (b) Analyze how support from public and private sector partnerships, the philanthropic community, and other not-for-profit organizations in the community, along with strong relationships with the state board of education and higher education institutions, will build a sustainable infrastructure that provides a variety of access alternatives for citizens;
     (c) Plan for long-term sustainability of broadband deployment and adoption, including an expansion of the minimally acceptable download and upload speeds;
     (d) Develop digital inclusion strategies and programs as long-term integrated components of the state and local community's efforts to meet economic, health care, legal, consumer, civic participation, environmental, and educational goals;
     (e) Recommend strategies that maximize the research and development at universities and the private sector;
     (f) Identify regulatory barriers to the advancement of technology entrepreneurship in the state of Washington and recommend incentives that stimulate the demand for and development of these applications and services;
     (g) Research, catalog, and evaluate programs designed to advance digital literacy and computer access that are available through the federal government, local agencies, telecommunications providers, and business and charitable entities and attempt to update available programs on a regular basis; and
     (h) Present the information compiled under this section to the authority, which will serve as the single point of contact for applying for funding from the community technology opportunity account created in RCW 28B.32.030 and for distributing information to the public regarding all programs designed to advance digital literacy and computer access.

NEW SECTION.  Sec. 7   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION.  Sec. 8   Sections 1 through 3, 6, and 7 of this act constitute a new chapter in Title 43 RCW.