H-3523.1

SECOND SUBSTITUTE HOUSE BILL 2365

ByHouse Appropriations (originally sponsored by Representatives Gregerson, Ryu, Berry, Obras, Zahn, Scott, Ormsby, Macri, Parshley, and Pollet)

AN ACT Relating to advancing digital opportunities for all; amending RCW 43.330.532, 43.330.534, 43.330.539, 43.330.5395, and 43.330.412; and reenacting and amending RCW 43.330.530.

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

Sec. 1. RCW 43.330.530 and 2022 c 265 s 301 and 2022 c 237 s 2 are each reenacted and amended to read as follows:

The definitions in this section apply throughout this section and RCW 43.330.532 through 43.330.538, 43.330.412, 43.330.5393, and 43.330.5395 unless the context clearly requires otherwise.

(1)(a) "Advanced telecommunications capability" means, without regard to any transmission media or technology, high-speed, switched, broadband telecommunications capability that enables users to originate and receive high quality voice, data, graphics, and video telecommunications using any technology.

(b) "Advanced telecommunications capability" does not include access to a technology that delivers transmission speeds below the minimum download and upload speeds provided in the definition of broadband in this section.

(2) "Aging individual" means an individual 55 years of age or older.

(3) "Board" means the public works board established in RCW 43.155.030.

(4) "Broadband" or "broadband service" means any service providing advanced telecommunications capability and internet access with transmission speeds that, at a minimum, provide 100 megabits per second download and 20 megabits per second upload.

(5) "Broadband adoption" means the process by which an individual obtains daily access and the ability to use the internet:

(a) At a speed, quality, price, and capacity necessary for the individual to accomplish common tasks, such that the access qualifies as an advanced telecommunications capability;

(b) Providing individuals with the digital skills necessary to participate fully and safely online;

(c) On a device connected to the internet and other advanced telecommunications services via a secure and convenient network, with associated end user broadband infrastructure equipment such as wifi mesh router or repeaters to enable the device to adequately use the internet network; and

(d) With technical support and digital navigation assistance to enable continuity of service and equipment use and utilization.

(6) "Broadband infrastructure" means networks of deployed telecommunications equipment and technologies necessary to provide high-speed internet access and other advanced telecommunications services to end users.

(7) "Community anchor institution" means an entity, such as a school, library, health clinic, health center, hospital or other medical provider, public safety entity, institution of higher education, public housing organization, accountable community of health, or community support organization, which facilitates greater use of broadband service by underserved populations.

(8) "Department" means the department of commerce.

(((8)))(9) "Digital equity" means the condition in which individuals and communities in Washington have the information technology capacity that is needed for full participation in society, democracy, and the economy.

(((9)))(10)(a) "Digital inclusion" means the activities that are necessary to ensure that all individuals in Washington have access to, and the use of, affordable information and communication technologies including, but not limited to:

(i) Reliable broadband internet service;

(ii) Internet-enabled devices that meet the needs of the user; and

(iii) Applications and online content designed to enable and encourage self-sufficiency, participation, and collaboration.

(b) "Digital inclusion" also includes obtaining access to digital literacy training, the provision of quality technical support, and obtaining basic awareness of measures to ensure online privacy and cybersecurity.

(((10)))(11) "Digital literacy" means the skills associated with using technology to enable users to use information and communications technologies to find, evaluate, organize, create, and communicate information.

(((11)))(12) "Incarcerated individual" has the same meaning as "inmate" in RCW 72.09.015.

(15) "Last mile infrastructure" means broadband infrastructure that serves as the final connection from a broadband service provider's network to the end-use customer's on-premises telecommunications equipment.

(((12)))(16) "Local government" includes cities, towns, counties, municipal corporations, public port districts, public utility districts, quasi-municipal corporations, special purpose districts, and multiparty entities comprised of public entity members.

(((13)))(17) "Low-income" means households ((as defined by the department of social and health services, provided that the definition may not exceed the higher of 80 percent of area median household income or the self-sufficiency standard as determined by the University of Washington's self-sufficiency calculator.

(14)))with a household income that does not exceed the higher level of 200 percent of the federal poverty level or the self-sufficiency standard produced by the University of Washington, as determined by household size and location.

(18) "Middle mile infrastructure" means broadband infrastructure that links a broadband service provider's core network infrastructure to last mile infrastructure.

(((15)))(19) "Office" means the governor's statewide broadband office established in RCW 43.330.532.

(((16)))(20) "Tribe" means any federally recognized Indian tribe whose traditional lands and territories included parts of Washington.

(((17)))(21) "Underserved population" means any of the following:

(a) Individuals who live in low-income households;

(b) Aging individuals;

(c) Incarcerated individuals;

(d) Veterans;

(e) Individuals with disabilities;

(f) Individuals with a language barrier, including individuals ((who are English learners))with limited English proficiency or who have low levels of literacy;

(g) Individuals who are members of a racial or ethnic minority group;

(h) Individuals who primarily reside in a rural area;

(i) ((Children and youth))Dependents in foster care; or

(j) Individuals experiencing housing instability.

(((18)))(22) "Unserved areas" means areas of Washington in which households and businesses lack access to adequate, reliable, and affordable broadband service, as defined by the office.

Sec. 2. RCW 43.330.532 and 2022 c 265 s 302 are each amended to read as follows:

(1) The governor's statewide broadband office is established. The director of the office must be appointed by the governor. The office may employ staff necessary to carry out the office's duties as prescribed by chapter 365, Laws of 2019, subject to the availability of amounts appropriated for this specific purpose.

(2) The purpose of the office is to encourage, foster, develop, and improve affordable((,))and quality broadband, broadband adoption, and digital equity within the state in order to:

(a) Drive job creation, promote innovation, improve economic vitality, and expand markets for Washington businesses;

(b) Serve the ongoing and growing needs of Washington's education systems, health care systems, public safety systems, transportation systems, industries and business, governmental operations, and citizens; and

(c) Improve broadband accessibility and adoption for unserved and underserved communities and populations.

Sec. 3. RCW 43.330.534 and 2024 c 54 s 53 are each amended to read as follows:

(1) The office has the power and duty to:

(a) Serve as the central broadband planning body for the state of Washington;

(b) Coordinate with relevant state agencies, local governments, tribes, public and private entities, public housing agencies, community anchor institutions, nonprofit organizations, and consumer-owned and investor-owned utilities to develop strategies and plans promoting deployment of broadband infrastructure and greater broadband access and broadband adoption, while protecting proprietary information;

(c) Review existing broadband initiatives, policies, and public and private investments;

(d) Develop, recommend, and implement a statewide plan to encourage cost-effective broadband access and to make recommendations for increased usage, particularly in rural and other unserved areas;

(e) Update the state's broadband goals and definitions for broadband service in unserved areas as technology advances, except that the state's definition for broadband service may not be actual speeds less than ((twenty-five))100 megabits per second download and ((three))20 megabits per second upload; and

(f) Encourage public-private partnerships to increase deployment and adoption of broadband services and applications.

(2) When developing plans or strategies for broadband deployment and adoption, the office must consider:

(a) Partnerships between communities, tribes, nonprofit organizations, local governments, consumer-owned and investor-owned utilities, and public and private entities;

(b) Funding opportunities that provide for the coordination of public, private, state, and federal funds for the purposes of making broadband infrastructure or broadband services available to rural and unserved areas of the state;

(c) Barriers to the deployment, adoption, and utilization of broadband service, including affordability of service and project coordination logistics; and

(d) Requiring minimum broadband service of ((twenty-five))100 megabits per second download and ((three))20 megabits per second upload speed, that is scalable to faster service.

(3) The office may assist applicants for the grant and loan program created in RCW 43.155.160, the digital ((equity)) opportunity program created in RCW 43.330.412, and the digital equity planning grant program created in RCW 43.330.5393 with seeking federal funding or matching grants and other grant opportunities for deploying or increasing adoption of broadband services.

(4) The office may take all appropriate steps to seek and apply for federal funds for which the office is eligible, and other grants, and accept donations, and must deposit these funds in the statewide broadband account created in RCW 43.155.165 or in the digital equity account created in RCW 80.36.710 as appropriate to the funding purposes.

(5) The office shall coordinate an outreach effort to hard-to-reach communities and low-income communities across the state to provide information about broadband programs available to consumers of these communities. The outreach effort must include, but is not limited to, providing information to applicable communities about the federal lifeline program and other low-income broadband benefit programs, including updated information regarding eligibility and enrollment. To assist with the outreach effort, the office shall request that broadband internet service providers report their three lowest cost tiers of retail internet service, unless this information is already publicly available elsewhere. Cost information that is received must be provided in the outreach materials available. The office shall prioritize translation of outreach materials into the three most commonly spoken non-English languages in areas served by the outreach effort and may leverage existing translations from other state agencies or federal programs where available. The outreach effort must be reviewed by the ((office of equity))digital equity forum annually. The office may contract with other public or private entities to conduct outreach to communities as provided under this subsection. For purposes of this subsection, "hard-to-reach communities" include rural and frontier geographic areas where distance or terrain are barriers, as well as other areas where underserved populations are harder to reach due to language or disability barriers.

(6) In carrying out its purpose, the office ((may collaborate with the utilities and transportation commission,))shall consider collaborating with federally recognized tribes and all relevant state agencies, such as Washington technology solutions, the department of commerce, the community economic revitalization board, the department of transportation, the public works board, the state librarian, ((and all other relevant state agencies))the department of social and health services, and the office of the superintendent of public instruction.

Sec. 4. RCW 43.330.539 and 2022 c 265 s 201 are each amended to read as follows:

(1) The office, in consultation with the digital equity forum, the utilities and transportation commission, ((and)) the department of social and health services, ((must develop))and other relevant state agencies as relevant to the implementation of this section, must develop, coordinate implementation of, and monitor progress in implementing a state digital equity plan.

(a) The office ((must))may seek any available federal or other funding for purposes of developing and implementing the state digital equity plan.

(b) The state digital equity plan must include such elements as the office determines are necessary to leverage federal and other funding.

(2) In developing and implementing the state digital equity plan, the office must identify measurable objectives for documenting and promoting digital equity among underserved communities located in the state.

(3) By ((December 1, 2023))January 1, 2027, and every two years thereafter, the office must submit a report to the governor and the appropriate committees of the legislature((, including))regarding progress made in developing and implementing the state digital equity plan described in subsection (1) of this section.

(b) After the initial report, subsequent reports must include the following:

(((a)))(i) The state digital equity plan ((described in subsection (1) of this section)) and measurable objectives described in subsection (2) of this section in accordance with the following:

(B) After January 1, 2029, the office shall review and update the state digital equity plan before every report submission;

(((b)))(ii) A description of how the office ((collaborated))is collaborating with the membership of the digital equity forum, state agencies, and key ((stakeholders))partners to develop and implement the state digital equity plan including, but not limited to, the following:

(((i)))(A) Community anchor institutions;

(((ii)))(B) Local governments;

(((iii)))(C) Local educational agencies;

(((iv)))(D) Entities that carry out workforce development programs; and

(((v)))(E) Broadband service providers;

(((c)))(iii) A description of ((federal))current and foreseeable future funding available to advance digital equity in the state((, including any available information on the extent to which state residents have enrolled in the affordable connectivity program through an approved provider)); ((and

(d)))(iv) A summary evaluation of progress made in implementing the state digital equity plan, including key state digital equity programs and funding needs; and

(v) Recommendations of additional state law or policy that can be targeted to help improve broadband adoption and affordability for state residents. This may include recommendations of ongoing subsidies that the state can provide to low-income individuals and community anchor institutions, as well as identification of revenue sources that other states or jurisdictions have developed to fund such subsidies or discounted rates.

(4) The report required by this section may be combined with the report required by RCW 43.330.538.

(7) For the purpose of this section, "office" means the statewide broadband office established in RCW 43.330.532.

Sec. 5. RCW 43.330.5395 and 2022 c 265 s 306 are each amended to read as follows:

(1) The Washington digital equity forum is established for the purpose of developing recommendations to advance digital connectivity, broadband adoption, and digital equity in Washington state ((and advising the statewide broadband office on the digital equity opportunity program as provided under RCW 43.330.412 and the digital equity planning grant program as provided under RCW 43.330.5393)).

(2) In developing its recommendations to advance digital connectivity, broadband adoption, and digital equity, the forum must:

(a) Develop goals that are consistent with the goals of the governor's statewide broadband office, as provided in RCW 43.330.536;

(b) Strengthen public-private partnerships, cooperatives, and other partnerships that promote digital connectivity, broadband adoption, and digital equity;

(c) Solicit public input and increase awareness of digital equity needs and resources through public hearings or informational sessions;

(d) Work to increase collaboration and communication between local, state, and federal governments and agencies((; and

(e) Recommend)), tribal governments, and other partners;

(e) Recommend opportunities for sustainable digital equity funding, including reforms to current universal service mechanisms;

(h) Provide feedback on the digital equity planning grant program, the digital opportunity program, or other digital equity grant programs.

(3) The forum may also consult with the statewide broadband office and other relevant agencies on the state digital equity plan and the plan implementation in accordance with RCW 43.330.539.

(4)(a) The director((s)) of the governor's statewide broadband office ((and the Washington state office of equity are)), in consultation with the digital equity forum chair or cochairs and the Washington state office of equity, is responsible for appointing participating members of the digital equity forum ((and no appointment may be made unless each director concurs in the appointment)). The total number of appointed members should not exceed 25 unless the director, in consultation with the chair or cochairs, determines a larger forum is necessary to ensure adequate representation of underserved communities.

(b) In making appointments, the director((s)) must prioritize appointees representing:

(((a)))(i) Federally recognized tribes;

(((b)))(ii) State and local agencies involved in digital equity; and

(((c)))(iii) Underserved and unserved communities, including historically disadvantaged communities.

(((4)))(5) A majority of the ((participating)) members appointed by the director((s must))may appoint an administrative chair or cochairs for the forum.

(((5)))(6) In addition to members appointed by the director((s)), four legislators may serve on the digital equity forum in an ex officio capacity. Legislative participants must be appointed as follows:

(a) The speaker of the house of representatives must appoint one member from each of the two largest caucuses of the house of representatives; and

(b) The president of the senate must appoint one member from each of the two largest caucuses of the senate.

(((6)(a) Funds appropriated to the forum may be used to compensate, for any work done in connection with the forum, additional persons who have lived experience navigating barriers to digital connectivity and digital equity.

(b)))(7) Each member of the digital equity forum ((shall serve without compensation but)) may be reimbursed for travel expenses as authorized in RCW 43.03.050 and 43.03.060. The director of the governor's statewide broadband office may authorize stipends for attendance at quarterly forum meetings for forum members who are not otherwise compensated for their attendance, subject to available funding and the principles of equity described in RCW 43.06D.020.

(((7)))(8)(a) Staff for the digital equity forum must be provided by the governor's statewide broadband office ((and the Washington state office of equity)). The governor's statewide broadband office ((and the Washington state office of equity are jointly))is responsible for transmitting the recommendations of the digital equity forum to the legislature, consistent with RCW 43.01.036, by October 28, 2025, and every odd-numbered year thereafter.

Sec. 6. RCW 43.330.412 and 2022 c 265 s 304 are each amended to read as follows:

The digital ((equity)) opportunity program is created to advance broadband adoption and digital equity and inclusion throughout the state. The digital ((equity)) opportunity program must be administered by the department. The department may focus on outreach and prioritize elements of this program based on funding levels, including federal or private matching funds, and the goals of the state digital equity plan. The department may contract for services in order to carry out the department's obligations under this section.

(1) In implementing the digital ((equity)) opportunity program the director must, to the extent funds are appropriated for this purpose:

(a) Provide organizational and capacity building support to digital equity programs and regional coalitions supporting digital equity advancement throughout the state and additional support for the purpose of:

(i) Evaluating the impact and efficacy of activities supported by grants awarded under the covered programs; ((and))

(ii) Enabling local and regional directories of digital equity program services, community needs assessments, and tracking of lower-cost broadband offerings; and

(iii) Developing, cataloging, disseminating, and promoting the exchange of best practices, with respect to and independent of the covered programs, in order to achieve digital equity. ((After July 1, 2024, no))No more than 15 percent of funds received by the director for the program may be expended on these functions;

(b) Establish a competitive grant program and provide grants to ((community technology))digital equity programs to advance digital equity and digital inclusion by providing:

(i) Training and skill-building opportunities;

(ii) Access to hardware and software, including accessibility tools and online service costs such as application and software;

(iii) ((Internet connectivity;

(iv) Digital media literacy and))Small-scale internet connectivity projects, including wireless mesh installations, that enable more affordable internet in low-income housing and limited areas, and which do not conflict with or replicate other state broadband deployment projects;

(iv) Fundamentals of generative artificial intelligence literacy, digital media literacy, and online safety and privacy cybersecurity training;

(v) Assistance in the adoption of information and communication technologies for low-income and underserved populations of the state through digital navigators, digital skills training, and related approaches;

(vi) Development of locally relevant content and delivery of vital services through technology; and

(vii) Technical support; and

(c) Collaborate with broadband ((stakeholders))partners, including broadband action teams across the state, in implementing the program as provided under this subsection((; and

(d) For the purposes of this section, include wireless meshed network technology)).

(2) Grant applicants must:

(a) Provide evidence that the applicant is a nonprofit entity or a public entity that is working in partnership with a nonprofit entity;

(b) Define the geographic area or population to be served;

(c) Provide evidence that the applicant is in partnership with locally based organizations or governments in each local county or tribal area it will serve, unless the only county or tribal area to be served is where the applicant entity is located;

(d) Include in the application the results of a needs assessment addressing, in the geographic area or among the population to be served: The impact of inadequacies in technology access or knowledge, barriers faced, and services needed;

(((d)))(e) Explain in detail the strategy for addressing the needs identified and an implementation plan including objectives, tasks, and benchmarks for the applicant and the role that other organizations will play in assisting the applicant's efforts;

(((e)))(f) Provide evidence that funds applied for, if received, will be used to provide effective delivery of ((community technology))digital equity services in alignment with the goals of this program and to increase the applicant's level of effort beyond the current level; ((and

(f)))(g) Explain in detail the selection process, criteria, and accountability measures that will be used to ensure that any subgrantees will use funds received to assist in the effective delivery of digital equity services in alignment with the goals of this program; and

(h) Comply with such other requirements as the director establishes.

(3) ((The digital equity forum shall review grant applications and provide input to the director regarding the prioritization of applications in awarding grants among eligible applicants under the program))The director must provide draft eligibility guidelines, selection criteria, the application form, and outreach materials to be used in promoting and awarding grants under the digital opportunity program to the digital equity forum on a timely basis and consider the forum's input. The director must also provide draft eligibility guidelines and selection criteria to the department's contracts and compliance division for review and approval.

(4) In awarding grants under the digital ((equity)) opportunity program created in this section, the director must:

(a) Consider ((the input provided by the digital equity forum, as provided in subsection (3) of this section, in awarding grants; and

(b)))whether the grant award furthers the goals of the state digital equity plan;

(d) Consider the extent to which the mix of grants awarded would increase ((in)) the number of prekindergarten through 12th grade students gaining access to greater levels of digital inclusion ((as a factor in awarding grants)), while also considering the geographic distribution of such students.

(5) The director may use no more than 10 percent of funds received for the digital ((equity)) opportunity program to cover administrative expenses.

(6) The director must establish expected program outcomes for each grant recipient and must require grant recipients to provide an annual accounting of program outcomes.

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