SB3629 100TH GENERAL ASSEMBLY

LRB100 23216 HLH 42224 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3629

Introduced 11/7/2018, by Sen. Wm. Sam McCann

SYNOPSIS AS INTRODUCED:

20 ILCS 661/5
20 ILCS 661/10
20 ILCS 661/17 new
20 ILCS 661/25
20 ILCS 661/15 rep.
20 ILCS 661/20 rep.

Amends the High Speed Internet Services and Information Technology Act. Provides that the Department of Commerce and Economic Opportunity shall make grants to private businesses, units of local government, nonprofit organizations, or any combination of those entities for the construction of infrastructure to provide broadband connections to underserved areas. Provides that the grants shall be awarded on a competitive basis after considering certain specified factors. Repeals a Section of the Act concerning the duties of the enlisted nonprofit organization.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The High Speed Internet Services and Information Technology Act is amended by changing Sections 5, 10, and 25 and by adding Section 17 as follows:

(20 ILCS 661/5)

Sec. 5. Findings. With respect to high speed Internet services and information technology, the General Assembly finds the following:

(1) The deployment and adoption of high speed Internet services and information technology has resulted in enhanced economic development and public safety for the State's communities, improved health care and educational opportunities, and a better quality of life for the State's residents.

(2) Continued progress in the deployment and adoption of high speed Internet services and information technology is vital to ensuring that this State remains competitive and continues to create business and job growth.

(3) The State must encourage and support the partnership of the public and private sectors in the continued growth of high speed Internet and information technology for the State's residents and businesses.

(4) Local governmental entities play a role in assessing the needs of their communities with respect to high speed Internet services and information technology.

(5) There is a growing need to provide high speed Internet services and information technology to homes and businesses in rural and underserved areas.

(6) Guaranteeing an equitable deployment and adoption of high speed Internet services and information technology throughout the State is a public necessity.

(Source: P.A. 95-684, eff. 10-19-07.)

(20 ILCS 661/10)

Sec. 10. Definitions Nonprofit organization defined. In this Act:

"Applicant" means a private business, unit of local government, or nonprofit organization that applies for the grant under this Act.

"Broadband connection" has the same meaning as defined in Section 13-407 in the Public Utilities Act.

"Department" means the Department of Commerce and Economic Opportunity.

"Nonprofit organization" means an organization that (i) is a nonprofit organization as described in Section 501(c)(3) of the federal Internal Revenue Code of 1986 and exempt from tax under Section 501(a) of that Code; (ii) has no part of the net earnings of which inures to the benefit of any member, founder, contributor, or individual; (iii) is organized under, subject to, and has all the powers and duties of a not-for-profit corporation under the General Not For Profit Corporation Act of 1986; (iv) has statewide representation; and (v) has a board of directors that is not composed of a majority of individuals who are also employed by, or otherwise associated with, any federal, State, or local government or agency.

"Private business" means any corporation, business trust, partnership, or association.

"Underserved area" has the same meaning as defined in Section 13-407 in the Public Utilities Act.

"Department" means the Department of Commerce and Economic Opportunity.

(Source: P.A. 95-684, eff. 10-19-07.)

(20 ILCS 661/17 new)

Sec. 17. Award of grants.

(a) Subject to appropriation, the Department shall make grants to private businesses, units of local government, nonprofit organizations, or any combination of those entities for the construction of infrastructure to provide broadband connections to underserved areas. The Department shall award grants on a competitive basis after considering the following:

(1) the relative need for high speed Internet service and other relevant broadband service infrastructure and existing service needs;

(2) the percentage of homes, farms, schools, and businesses in an underserved area that will be provided access to high speed Internet service and other relevant broadband service;

(3) the geographic diversity of the project areas of all applicants;

(4) the economic impact of the project to the area;

(5) the applicant's total proposed budget for any project under this Act, including the amount or percentage of local match, if any;

(6) evidence demonstrating that the eligible applicant has the financial, technical, and managerial resources necessary to complete the project and to provide ongoing maintenance and upgrades to the broadband infrastructure, including established competency and a proven record of working with public and private sectors to accomplish wide-scale deployment of broadband and information technology in Illinois;

(7) a business plan demonstrating that the broadband service to be provided will be sustainable after the grant award is exhausted; and

(8) if the applicant is a unit of local government, evidence that, not later than 6 weeks before submission of the application, the applicant contacted in writing all Internet service providers providing Internet service in the proposed project area to ask for each Internet service provider's plan to provide, within 24 months of the date that contact is made, broadband connection in the project area. The unit of local government must also provide evidence of any responses from Internet service providers for information sought under this paragraph (8).

(b) Grants awarded pursuant to this Section shall not exceed 15% of the project cost.

(c) The Department shall provide public notice regarding the application process and receipt of funding.

(d) Funding awards shall be based on appropriations of funds or receipt of other funds to support this Act. If possible, he Department shall use moneys in the fund to leverage available federal moneys.

(e) Moneys appropriated for the purpose of making grants under this Section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

(f) As used in this Section, "construction" means acquisition, installation, or both, of broadband infrastructure, including, but not limited to: obtaining construction permits; construction of facilities; purchasing equipment; and installation and testing of the broadband connection service.

(g) The Department shall adopt rules regarding the awarding of grants to applicants under this Act, including, but not limited to, the grant program process, management, and measurements as deemed necessary by the Department.

(20 ILCS 661/25)

Sec. 25. Scope of authority. Nothing in this Act shall be construed as giving the Department of Commerce and Economic Opportunity, the nonprofit organization, or other entities any additional authority, regulatory or otherwise, over providers of telecommunications, broadband, and information technology. However, the Department shall have the authority to require Facilities-based Providers of Broadband Connections to End User Locations to provide information pursuant to subsection (c) of Section 20. Upon request, any and all information collected pursuant to subsection (c) of Section 20 that is provided to the enlisted nonprofit organization shall be provided to the Department, provided the Department enters into the proprietary and confidentiality agreements governing such information.

(Source: P.A. 95-684, eff. 10-19-07; 96-927, eff. 6-15-10.)

(20 ILCS 661/15 rep.)

(20 ILCS 661/20 rep.)

Section 10. The High Speed Internet Services and Information Technology Act is amended by repealing Sections 15 and 20.