Broadband industry likes Iowa incentives, would like more

DES MOINES - Gov. Terry Branstad's plan to 'connect every acre” with broadband Internet access moved forward in the House with its lead sponsor saying he hopes to win committee approval next week.

A five-person House subcommittee signed off on House Study Bill 104 Wednesday to move the package of property tax abatements and $5 million in incentive grants to the full Commerce Committee.

'It's a start,” Commerce Committee Chairman Peter Cownie, R-West Des Moines, said.

His goal is to get the process of connecting the estimated 25,000 Iowans without Internet access going.

'Internet is such a big issue in terms of quality of life, economic development, health care” and commerce, he said.

Subcommittee member Rep. Chris Hall, D-Sioux City, called the bill 'a good first draft” but said it needs improvement to win committee and full House approval.

He and Cownie agreed they need to spell out the details of the how the $5 million in grants will be distributed. And they agreed the bill, which is one of Branstad's priorities, will not be the end of the discussion.

'As all things with technology, we have to plan to adapt,” Hall said. 'It's an important first step, but it's likely we will have to revisit it.”

Internet providers have, for the most part, backed the bill, but told lawmakers broadband access would develop more quickly if the incentives were bigger.

'We'll always get asked for more money. There will never be enough money to make everyone happy,” Hall said, but doubts the $5 million grant program will be expanded.

The property tax abatement may be the more powerful incentive, Hall said. Cownie agreed that extending those from three years to five or longer may help Internet providers extend broadband access.

Hall called for a focus on 'putting fiber in the ground.”

'If you put fiber into the ground and get it out to a rural community, it can link to a wireless tower and provide broadband access to people who might not be in direct proximity to fiber,” he said, 'but it will have higher download and upload speed because it's connected to fiber.”

HOUSE STUDY BILL 104

' Identifies the State of Iowa Office of the Chief Information Officer to coordinate statewide broadband availability and access between the public and private sector.

' Creates the Iowa Farms, Schools and Communities Broadband Grant Program to award grants to communication service providers to invest broadband access to farms, schools and communities. Governor Branstad's Fiscal Year 2016 budget includes $5 million for these grants.

' Provides a three-year 100 percent property tax exemption for broadband infrastructure for infrastructure in place on or after July 1.