to adopt the amendment to HB 4420 (H-2).
Representative Sabo moved to adopt the amendment to HB 4420 (H-2). The motion did not prevail 12-17-0: UNFAVORABLE ROLL CALL Yeas: Reps. Tate, Hammoud, Peterson, Sabo, Tyrone Carter, Hood, Cynthia Johnson, Brabec, O'Neal, Steckloff, Thanedar, Weiss. Nays: Reps. Albert, Whiteford, Allor, Brann, Hornberger, VanSingel, Yaroch, Bollin, Glenn, Huizenga, Lightner, Maddock, Slagh, VanWoerkom, Beson, Borton, Fink. Pass: None. Representative Hood offered the following amendments to HB 4420 (H-2): 1. Amend page 19, following line 20, by inserting: "Broadband innovation grants 50,000,000 Fiber broadband infrastructure grants 100,000,000 Future-proof last mile broadband grants 50,000,000" and adjusting the subtotals, totals, and section 201 accordingly. 2. Amend page 49, following line 3, by inserting: "Sec. 555. (1) From funds appropriated in part 1 for broadband innovation grants the department of technology, management, shall implement a statewide broadband grant program to facilitate broadband planning, data collection, broadband service mapping, and resolving barriers to broadband access, capacity, and adoption. Eligible applicants for the grants are limited to local units of government, non-profit organizations, educational institutions, and economic development associations. (2) Within 60 days after receiving funds appropriated in part 1 for broadband innovation grants, the department of technology, management, and budget must develop and publish draft guidelines available to the public on how grant awards will be implemented. The draft guidelines must be available for public comment for not less than 30 days before the department of technology, management, and budget finalizes and implements the guidelines. (3) The department of technology, management, and budget must not prohibit applicants from seeking other state or federal grants for broadband and must not exclude applicants who have previously received other state or federal grants for broadband. (4) The department of technology, management, and budget must not award more than $500,000.00 to any 1 project or to any 1 applicant or more than $1,000,000.00 if the applicant satisfactorily demonstrates to the department of technology, management, and budget that the applicant has multi-jurisdiction support including a long-term financial commitment or a streamlined permitting process for internet service providers. (5) The department of technology, management, and budget is authorized to retain up to 3% of the amount appropriated in part 1 for broadband innovation grants for administrative and research costs, including but not limited to, partnering with an educational institution or non-profit organization to study grant project outcomes and to make future recommendations. (6) Grant funding must be used for purposes of broadband planning, data collection, resolving barriers to broadband access, capacity, and adoption and eligible spending activities may include, but are not limited to, the following: (a) Community surveys and tools to communities to help aggregate demand for broadband service among residents, businesses, and community anchor institutions. (b) Community planning activities including assessments of existing broadband access and consulting with technical experts and community members to identify solutions to expand access and adoption. (c) Analyses of existing community assets to expand broadband infrastructure, including reviewing and modifying existing ordinances and policies to realize opportunities for regional collaboration and to streamline broadband deployment. (d) Digital literacy programs, including partnerships with colleges, universities, and libraries to develop mentoring programs to train local residents in digital skills, particularly those sought after by employers. (e) Initiatives that provide free or low-cost access to broadband or equipment necessary to access the internet. (7) The unexpended funds appropriated in part 1 for broadband innovation grants are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a: (a) The purpose of the project is to facilitate broadband planning, broadband service mapping, data collection, and resolving barriers to broadband access, capacity, and adoption. (b) All grants will be distributed in accordance with this section and the grant guidelines developed and published by the department of technology, management, and budget as required in subsection (2). (c) The estimated cost of this project is $50,000,000.00. (d) The tentative completion date for the work project is September 30, 2025. Sec. 556. (1) From funds appropriated in part 1 for fiber broadband infrastructure grants the department of technology, management shall implement a statewide broadband grant program to support costs related to the deployment of fiber and conduit for broadband infrastructure projects as well as engineering costs associated with broadband infrastructure projects. (2) Eligible applicants for the grants are limited to local units of government, municipally owned electric utilities, Michigan electric cooperatives, and competitive local exchange carriers. All applicants must be Michigan-based or located within Michigan. (3) Within 60 days after receiving funds appropriated in part 1 for fiber broadband infrastructure grants, the department of technology, management, and budget must develop and publish draft guidelines available to the public on how grant awards will be implemented. The draft guidelines must be available for public comment for not less than 30 days before the department of technology, management, and budget finalizes and implements the guidelines. (4) The awarding of grants must be limited to those projects that will expand broadband infrastructure exclusively through the deployment of fiber and conduit. Grants awarded to local units of government, with the exception of municipally owned electric utilities that currently provide retail broadband service, must only be used for leasing access to the broadband infrastructure to private internet service providers or via retail service through a public-private partnership. The department of technology, management, and budget must not prohibit applicants from seeking other state or federal grants for broadband and must not exclude applicants who have previously received other state or federal grants for broadband. (5) The department of technology, management, and budget must not award more than $5,000,000.00 to any 1 project or more than $10,000,000.00 if the applicant satisfactorily demonstrates to the department of technology, management, and budget that the applicant has multi-jurisdiction support including a long-term financial commitment or a streamlined permitting process for internet service providers. (6) The department of technology, management, and budget is authorized to retain up to 3% of the amount appropriated in part 1 for broadband innovation grants for administrative and research costs, including but not limited to, partnering with an educational institution or non-profit organization to study grant project outcomes and to make future recommendations. (7) Retail broadband service deployed through the infrastructure projects funded by the grants must comply with the following: (a) Offer broadband service capable of delivering highspeed internet access at speeds of at least 100 megabits per second downstream and 10 megabits per second upstream. (b) Offer reasonable rates and provide rate transparency to its broadband customers. (c) Prohibit customer data from being sold to third parties without customer consent. (d) Comply with annual reporting requirements, as determined by the department of technology, management, and budget, demonstrating customer rates of broadband adoption and the addresses at which broadband service is available. (8) The unexpended funds appropriated in part 1 for broadband innovation grants are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a: (a) The purpose of the project is to support the expansion of fixed broadband technology and service by supporting the costs of deploying fiber and conduit for broadband infrastructure projects as well as engineering costs associated with broadband infrastructure projects. (b) All grants will be distributed in accordance with this section and the grant guidelines developed and published by the department of technology, management, and budget as required in subsection (3). (c) The estimated cost of this project is $100,000,000.00. (d) The tentative completion date for the work project is September 30, 2025. Sec. 557. (1) As used in this section: (a) "Area" means an area approved by a majority of participating households for planning, engineering, and installation costs of last mile to the home broadband. (b) "Eligible costs" means costs of eligible grant applicants for planning, engineering, and installation of new last mile fiber to the home broadband in an area approved by the department of technology, management, and budget. (c) "Eligible grant recipient" means municipalities, legally incorporated cooperatives, homeowner associations, neighbor block clubs, agricultural associations, and economic development organizations that do not operate a retail broadband service. (d) “Internet service provider” means any of the following: (i) An entity holding a license under the Michigan telecommunications act, 1991 PA 179, MCL 484.2101 to 484.2603. (ii) An entity holding a franchise under the uniform video services local franchise act, 2006 PA 480, MCL 484.3301 to 484.3315. (iii) An entity currently providing wholesale or retail broadband service in this state. (e) "Participating household" means any legal resident of a household, business, or parcel owner, within the area of an eligible grant recipient that has affirmatively approved to participate in sharing the costs of a last mile fiber broadband project, as permitted by the bylaws of an eligible grant recipient. (f) "RFP" means request for proposal. (2) From funds appropriated in part 1 for future-proof last mile broadband grants the department of technology, management, shall implement a statewide broadband grant program to issue grants to eligible grant recipients to match costs associated with the planning, engineering, and installation of retail fiber necessary for physically extending fiber networks to end users' homes and premises. (3) Within 60 days after receiving funds appropriated in part 1 for future-proof last mile broadband grants, the department of technology, management, and budget must develop and publish draft guidelines available to the public on how grant awards will be implemented. The draft guidelines must be available for public comment for not less than 30 days before the department of technology, management, and budget finalizes and implements the guidelines. (4) The department of technology, management, and budget must hold multiple application periods at a minimum of 90 days each to ensure interested applicants have time to properly plan and apply for the grants. (5) The department of technology, management, and budget must not prohibit applicants from seeking other state or federal grants for broadband and must not exclude applicants who have previously received other state or federal grants for broadband. (6) The department of technology, management, and budget must determine a process and method for awarding grants that must comply with the following requirements: (a) Grants must not exceed $10,000,000.00 to any 1 project or to any 1 applicant. (b) Grants must impact geographically and socioeconomically diverse populations. (c) Grants must seek partnerships with Michigan colleges, universities, and non-profit organizations to support field research to better understand the needs of local residents. (d) Grants must include an RFP process to solicit bids from internet service providers to either manage, construct, or operate retail broadband services. (e) Eligible grant recipients conduct the review, selection, and approval of all agreements with internet service providers following all applicable laws and bylaws of the eligible grant recipient. (f) Applicants publish transparent prices, data plans, and terms and conditions, and agree not to share customer data to third parties without customer consent. (7) The grants must be used to provide up to a 50% funding match for the eligible costs that result in new fiber service to the home, premise, or parcel in a defined area associated with the eligible grant recipient. Grants must be used, as applicable, by each eligible grant recipient to reduce the eligible costs assigned to participating households or businesses towards the expense of a fiber to the home or premise project. The method of cost reduction assigned for each individual or business must be equitable and demonstrate compliance with any applicable bylaws or laws of the eligible grant recipient. (8) The department of technology, management, and budget is authorized to retain up to 3% of the amount appropriated in part 1 for future-proof last mile broadband grants for administrative and research costs, including but not limited to, partnering with an educational institution or non-profit organization to study grant project outcomes and to make future recommendations. (9) The unexpended funds appropriated in part 1 for future-proof last mile broadband grants are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a: (a) The purpose of the project is to implement a statewide broadband grant program to issue grants to eligible grant recipients to match costs associated with the planning, engineering, and installation of retail fiber necessary for physically extending fiber networks to end users' homes and premises. (b) All grants will be distributed in accordance with this section and the grant guidelines developed and published by the department of technology, management, and budget as required in subsection (3). (c) The estimated cost of this project is $50,000,000.00. (d) The tentative completion date for the work project is September 30, 2025.".