State Funding for Internet Expansion Act of 2021
Bill: S.944 | Sponsor: Sen. Graham, Lindsey (R-SC)
Policy area: Science, Technology, Communications

Summary:
State Funding for Internet Expansion Act of 2021 or the State Fix Act of 2021
This bill requires the Federal Communications Commission to establish a freestanding program that expands broadband access in unserved areas and underserved areas and for unserved anchor institutions (e.g., elementary schools, libraries, and museums) by using reverse auctions. The program must be separate from any universal service program and may not base the eligibility of a funding recipient on their eligibility or ineligibility for other telecommunications programs.

To amend the Communications Act of 1934 to establish a program to 
 expand access to broadband in unserved and underserved areas, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Funding for Internet Expansion 
Act of 2021'' or the ``State Fix Act of 2021''.

SEC. 2. EXPANSION OF BROADBAND ACCESS.

    Title I of the Communications Act of 1934 (47 U.S.C. 151 et seq.) 
is amended by adding at the end the following:

``SEC. 14. EXPANSION OF BROADBAND ACCESS.

    ``(a) Definitions.--In this section:
            ``(1) Anchor institution.--The term `anchor institution' 
        means--
                    ``(A) a public or private elementary school or 
                secondary school, as those terms are defined in section 
                8101 of the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 7801);
                    ``(B) a library;
                    ``(C) a medical or healthcare provider;
                    ``(D) a museum;
                    ``(E) a public safety entity;
                    ``(F) public housing;
                    ``(G) an institution of higher education, as that 
                term is defined in section 101 of the Higher Education 
                Act of 1965 (20 U.S.C. 1001), including a community 
                college; or
                    ``(H) any other community support organization or 
                agency.
            ``(2) Area.--The term `area' means the geographic unit of 
        measurement with the greatest level of granularity that is 
        reasonably feasible for the Commission to use in making 
        eligibility determinations under this section and in meeting 
        the requirements and deadlines under this section.
            ``(3) Assistant secretary.--The term `Assistant Secretary' 
        means the Assistant Secretary of Commerce for Communications 
        and Information.
            ``(4) Broadband.--The term `broadband'--
                    ``(A) has the meaning given the term `broadband 
                internet access service' in section 8.1(b) of title 47, 
                Code of Federal Regulations, or any successor 
                regulation;
                    ``(B) includes any service that is the functional 
                equivalent of the service described in subparagraph 
                (A); and
                    ``(C) does not include dial-up internet access 
                service.
            ``(5) Covered entity.--The term `covered entity'--
                    ``(A) means an entity that--
                            ``(i) is owned by, controlled by, 
                        affiliated with, or acting at the direction of 
                        an entity that is organized under the laws of, 
                        or otherwise subject to the jurisdiction of, a 
                        country, the government of which is on the 
                        priority watch list established by the United 
                        States Trade Representative pursuant to section 
                        182(a) of the Trade Act of 1974 (19 U.S.C. 
                        2242(a)); and
                            ``(ii) has engaged in an action that is 
                        prohibited under--
                                    ``(I) section 1(a) of Executive 
                                Order 13873 (84 Fed. Reg. 22689; 
                                relating to securing the information 
                                and communications technology and 
                                services supply chain); or
                                    ``(II) any regulations issued in 
                                response to the Executive Order 
                                described in subclause (I); and
                    ``(B) includes any subsidiary, affiliate, employee, 
                or representative of, and any related party with 
                respect to, an entity described in subparagraph (A), 
                without regard to the location or jurisdiction of 
                incorporation of that subsidiary, affiliate, employee, 
                representative, or party, as applicable.
            ``(6) Funding recipient.--The term `funding recipient' 
        means an entity that receives funding for a project under this 
        section.
            ``(7) Program.--Unless otherwise expressly indicated, the 
        term `program' means the program established under subsection 
        (b).
            ``(8) Project.--The term `project' means a project that 
        uses funding made available under this section to construct and 
        deploy infrastructure for the provision of broadband.
            ``(9) Public housing.--The term `public housing'--
                    ``(A) has the meaning given the term in section 
                3(b) of the United States Housing Act of 1937 (42 
                U.S.C. 1437a(b)); and
                    ``(B) includes housing receiving tenant-based 
                rental assistance provided under section 8(o) of the 
                United States Housing Act of 1937 (42 U.S.C. 1437f(o)).
            ``(10) Reverse auction.--The term `reverse auction' means 
        an auction in which--
                    ``(A) bids are submitted for a project by the 
                entities that would construct or deploy infrastructure 
                for the provision of broadband under the project; and
                    ``(B) the winning bid is the bid that proposes 
                serving an area for the lowest cost, taking into 
                consideration the preferences under subsection (d)(2).
            ``(11) Underserved area.--The term `underserved area' means 
        an area in which more than 10 percent, but not more than 50 
        percent, of the population of the area has access to 
        broadband--
                    ``(A) with a download speed of not less than 25 
                megabits per second and not more than 50 megabits per 
                second; and
                    ``(B) with an upload speed of not less than 3 
                megabits per second.
            ``(12) Unserved anchor institution.--The term `unserved 
        anchor institution' means an anchor institution that does not 
        have access to broadband offered--
                    ``(A) with a download speed of not less than 100 
                megabits per second; and
                    ``(B) with an upload speed of not less than 10 
                megabits per second.
            ``(13) Unserved area.--The term `unserved area' means an 
        area in which not more than 10 percent of the population of the 
        area has access to broadband--
                    ``(A) with a download speed of not less than 25 
                megabits per second; and
                    ``(B) with an upload speed of not less than 3 
                megabits per second.
    ``(b) Program Established.--Not later than 300 days after the date 
of enactment of this section, the Commission, in consultation with the 
Assistant Secretary, shall establish a program--
            ``(1) to expand access to broadband in unserved areas and 
        underserved areas, and for unserved anchor institutions, in 
        accordance with the requirements of this section; and
            ``(2) that--
                    ``(A) is separate from any universal service 
                program established under section 254; and
                    ``(B) does not require a funding recipient to be 
                designated as an eligible telecommunications carrier 
                under section 214(e).
    ``(c) Use of Program Funds.--
            ``(1) Public notice.--
                    ``(A) In general.--Not later than 300 days after 
                the date of enactment of this section, the Commission 
                shall publish in the Federal Register a notice 
                informing each State and the public that amounts made 
                available to carry out this section shall be 
                distributed under this subsection.
                    ``(B) Contents.--The notice published under 
                subparagraph (A) shall include--
                            ``(i) the manner in which a State shall 
                        inform the Commission of the acceptance by that 
                        State, in whole or in part, of the amounts to 
                        be distributed to the State under this 
                        subsection;
                            ``(ii) a notification that the acceptance 
                        described in clause (i) shall be due on the 
                        date that is 45 days after the date on which 
                        the Commission issues the public notice; and
                            ``(iii) the requirements with respect to 
                        the use of the distributed amounts under this 
                        section and under any further requirements that 
                        the Commission may prescribe.
            ``(2) Acceptance by states.--Not later than 45 days after 
        the date on which the Commission publishes the notice required 
        under paragraph (1), each State accepting amounts to be 
        distributed under this subsection shall inform the Commission 
        of the acceptance, in whole or in part, by the State of those 
        amounts in the manner described by the Commission in the 
        notice.
            ``(3) Expanding access to broadband through states.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this section, the Commission shall 
                distribute amounts made available to carry out this 
                section among the States that have agreed to accept the 
                funds.
                    ``(B) Formulas.--The amount that a State receives 
                under subparagraph (A) shall be the sum of--
                            ``(i) the amount obtained by--
                                    ``(I) dividing the number of 
                                individuals living in unserved areas in 
                                the State by the total number of 
                                individuals living in unserved areas in 
                                the United States; and
                                    ``(II) multiplying 80 percent of 
                                the amount made available to carry out 
                                this section by the quotient obtained 
                                under subclause (I); and
                            ``(ii) the amount obtained by--
                                    ``(I) dividing the number of 
                                individuals living in underserved areas 
                                in the State by the total number of 
                                individuals living in underserved areas 
                                in the United States; and
                                    ``(II) multiplying 20 percent of 
                                the amount made available to carry out 
                                this section by the quotient obtained 
                                under subclause (I).
            ``(4) Requirements for state receipt of amounts 
        distributed.--Each State accepting amounts distributed under 
        this subsection--
                    ``(A) may allocate those amounts only through a 
                statewide reverse auction or auctions, in the manner 
                prescribed by the State, subject to the requirements of 
                this section (including the rules promulgated under 
                subsection (g)) and any further requirements that the 
                Commission may prescribe;
                    ``(B) may make an allocation under subparagraph (A) 
                only--
                            ``(i) to a funding recipient to expand 
                        access to broadband in unserved areas within 
                        the State;
                            ``(ii) to a funding recipient to expand 
                        access to broadband for unserved anchor 
                        institutions located in the State; or
                            ``(iii) if a State does not have, or no 
                        longer has, an unserved area within the State, 
                        to a funding recipient to expand access to 
                        broadband in underserved areas in the State;
                    ``(C) shall--
                            ``(i) not later than 10 years after the 
                        date of enactment of this section, return to 
                        the Commission any unused portion of those 
                        amounts; and
                            ``(ii) before accepting those amounts, 
                        submit to the Commission a certification that 
                        the State will comply with clause (i); and
                    ``(D) may not use more than 5 percent of those 
                amounts to administer a reverse auction that complies 
                with the requirements of this section.
            ``(5) Distribution of remaining funds.--In the case of any 
        amounts remaining after the amounts made available to carry out 
        this section are distributed under this subsection, the 
        Commission shall transfer those amounts to the general fund of 
        the Treasury, where those transferred amounts shall be 
        dedicated for the sole purpose of deficit reduction.
    ``(d) Program Requirements.--
            ``(1) Technology neutrality required.--A State 
        administering a reverse auction to make awards under subsection 
        (c) may not favor a project using any particular technology.
            ``(2) Bidding preference.--Consistent with the program, 
        there shall be a preference, as determined by the entity 
        administering a reverse auction, for a bidder in the reverse 
        auction that proposes a project that is described by any of the 
        following:
                    ``(A) Not less than 20 percent of the funds 
                provided by the bidder with respect to the project are 
                matched from private sources.
                    ``(B) The project would expand access to broadband 
                on Tribal lands, as that term is defined by the 
                Commission.
                    ``(C) The project would provide broadband that 
                has--
                            ``(i) a latency of not more than 50 
                        milliseconds; and
                            ``(ii)(I) a download speed that is not less 
                        than 100 megabits per second or an upload speed 
                        of not less than 20 megabits per second; or
                            ``(II) a download speed of not less than 1 
                        gigabit per second or an upload speed of not 
                        less than 100 megabits per second.
                    ``(D) The project would expand access to broadband 
                in advance of the time specified in subsection 
                (g)(1)(D).
                    ``(E) The project would expand access to broadband 
                to areas in which the median household income is below 
                150 percent of the poverty threshold, as defined by the 
                Bureau of the Census.
                    ``(F) The project would provide affordable payment 
                options to subscribers in locations served.
            ``(3) Notice, transparency, accountability, and oversight 
        required.--The program shall contain sufficient notice, 
        transparency, accountability, and oversight measures to--
                    ``(A) provide the public with notice regarding the 
                assistance provided under this section; and
                    ``(B) deter waste, fraud, and abuse with respect to 
                program funds.
            ``(4) Competence.--The program shall contain sufficient 
        processes and requirements, as established by each State 
        participating in the program, to ensure that each entity 
        participating in a reverse auction conducted by the State--
                    ``(A) is capable of carrying out the applicable 
                project in a manner that is competent and that complies 
                with all applicable Federal, State, and local laws;
                    ``(B) has the financial capacity to--
                            ``(i) meet the buildout obligations of the 
                        applicable project; and
                            ``(ii) satisfy the requirements of this 
                        section and any other further requirements that 
                        the Commission may prescribe in carrying out 
                        this section; and
                    ``(C) has the technical and operational capacity to 
                provide broadband in the manner contemplated by any bid 
                placed by the entity during the reverse auction, which 
                shall include a detailed consideration of--
                            ``(i) the prior performance of the entity 
                        in constructing broadband infrastructure in 
                        rural areas; and
                            ``(ii) the capability of the proposed 
                        infrastructure to be constructed and deployed 
                        by the entity to provide the proposed broadband 
                        services in the area that the infrastructure 
                        would serve.
    ``(e) Project Requirements.--Any project funded through the program 
shall satisfy the following requirements:
            ``(1) The project shall adhere to quality-of-service 
        standards established by the Commission.
            ``(2) The project--
                    ``(A) shall offer broadband that, at a minimum, 
                provides--
                            ``(i) a download speed of not less than the 
                        greater of--
                                    ``(I) 50 megabits per second; or
                                    ``(II) the download speed required 
                                for an internet service to qualify as 
                                an advanced telecommunications 
                                capability, as defined in section 
                                706(d) of the Telecommunications Act of 
                                1996 (47 U.S.C. 1302(d));
                            ``(ii) an upload speed of not less than the 
                        greater of--
                                    ``(I) 10 megabits per second; or
                                    ``(II) the upload speed required 
                                for an internet service to qualify as 
                                an advanced telecommunications 
                                capability, as defined in section 
                                706(d) of the Telecommunications Act of 
                                1996 (47 U.S.C. 1302(d)); and
                            ``(iii) a latency of not more than 100 
                        milliseconds; and
                    ``(B) may offer broadband that, at a minimum, 
                provides--
                            ``(i) a download speed of not less than 25 
                        megabits per second;
                            ``(ii) an upload speed of not less than 3 
                        megabits per second; and
                            ``(iii) a latency of not more than 100 
                        milliseconds.
            ``(3) The project shall incorporate prudent cybersecurity 
        and supply chain risk management practices, as specified by the 
        Commission in the rules promulgated under subsection (g), after 
        consultation with the Director of the National Institute of 
        Standards and Technology and the Assistant Secretary.
            ``(4)(A) Any laborer or mechanic employed by any contractor 
        or subcontractor in the performance of work on the project 
        shall be paid wages at rates not less than those prevailing on 
        similar construction in the locality, as determined by the 
        Secretary of Labor under subchapter IV of chapter 31 of title 
        40, United States Code (commonly referred to as the `Davis-
        Bacon Act').
            ``(B) With respect to the labor standards specified in 
        subparagraph (A), the Secretary of Labor shall have the 
        authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
        3145 of title 40, United States Code.
            ``(5) The funding recipient may not purchase any materials, 
        products, or services from a covered entity.
    ``(f) Determinations Regarding Unserved and Underserved Areas.--
            ``(1) Initial determination.--
                    ``(A) In general.--Not later than 120 days after 
                the date of enactment of this section, the Commission 
                shall, for the purposes of any reverse auction 
                conducted under this section, make an initial 
                determination as to--
                            ``(i) whether an area is an unserved area 
                        or an underserved area; and
                            ``(ii) whether an anchor institution is an 
                        unserved anchor institution.
                    ``(B) Resources.--In making a determination under 
                subparagraph (A), the Commission shall--
                            ``(i) to the extent practicable, use the 
                        National Broadband Availability Map created by 
                        the Assistant Secretary;
                            ``(ii) to the extent practicable, use data 
                        from the Broadband Serviceable Location Fabric 
                        established under section 802(b)(1)(B);
                            ``(iii) consider other data obtained or 
                        purchased by the Commission that relates to 
                        access to broadband;
                            ``(iv) consider other publicly available 
                        data or information regarding access to 
                        broadband; and
                            ``(v) consider other publicly available 
                        data or information on State broadband 
                        deployment programs and any additional 
                        information States have on their constituents' 
                        broadband access.
            ``(2) Challenge process.--The Commission shall provide for 
        a process--
                    ``(A) for challenging any initial determination 
                under paragraph (1);
                    ``(B) that, at a minimum, provides not less than 45 
                days for a person to voluntarily submit information 
                concerning--
                            ``(i) the broadband offered in the 
                        applicable area; or
                            ``(ii) the broadband offered to an anchor 
                        institution, if applicable; and
                    ``(C) that is sufficiently streamlined such that a 
                reasonably prudent person that submits verified data, 
                or meets other requirements imposed by the Commission, 
                may easily challenge an initial determination made 
                under paragraph (1) with little burden on that person.
            ``(3) Rebuttal period.--The Commission shall provide for a 
        30-day period, beginning on the day after the last day of the 
        challenge process under paragraph (2), during which a person 
        may submit a rebuttal to any challenge brought under that 
        paragraph.
            ``(4) Final determinations.--Not later than 255 days after 
        the date of enactment of this section, and after taking into 
        consideration the challenges brought under paragraph (2) and 
        rebuttals submitted under paragraph (3), the Commission shall 
        make a final determination of--
                    ``(A) the areas that are unserved areas or 
                underserved areas; and
                    ``(B) the anchor institutions that are unserved 
                anchor institutions.
    ``(g) Rulemaking, Distribution, and Award of Funds.--
            ``(1) In general.--Not later than 255 days after the date 
        of enactment of this section, the Commission, in consultation 
        with the Assistant Secretary, shall promulgate rules that 
        accomplish the following:
                    ``(A) Implement the requirements of this section.
                    ``(B) Establish the design of, and requirements 
                for, a reverse auction conducted by a State under this 
                section.
                    ``(C) Establish notice requirements for all reverse 
                auctions conducted under this section that, at a 
                minimum, and in accordance with the determinations made 
                under subsection (f), provide the public with notice 
                of--
                            ``(i) the initial determination of which 
                        areas are unserved areas or underserved areas 
                        under paragraph (1) of that subsection;
                            ``(ii) the final determination of which 
                        areas are unserved areas or underserved areas 
                        under paragraph (4) of that subsection, after 
                        the processes for challenging the initial 
                        determination and for rebutting any such 
                        challenge have concluded; and
                            ``(iii) with respect to a particular 
                        reverse auction, which entities have applied to 
                        bid for funding.
                    ``(D) With respect to a funding recipient that 
                receives funding under this section for a project, 
                provide that, not later than 6 years after the date on 
                which the funding recipient receives the funding, the 
                funding recipient shall provide service to not less 
                than 80 percent of the areas proposed to be served by 
                the project.
                    ``(E) Establish broadband buildout milestones and 
                periodic certification by funding recipients to ensure 
                compliance with the broadband buildout milestones.
                    ``(F) Establish periodic reporting requirements for 
                funding recipients that require those funding 
                recipients to identify, at a minimum, with respect to 
                the project to which the funding relates--
                            ``(i) the technology used;
                            ``(ii) the level of service offered; and
                            ``(iii) the percentage of the applicable 
                        area served.
                    ``(G) Establish mechanisms to reduce waste, fraud, 
                and abuse within the program with respect to any 
                reverse auction conducted under this section.
                    ``(H) Establish processes to--
                            ``(i) assist States in conducting statewide 
                        reverse auctions;
                            ``(ii) coordinate with States to ensure 
                        that funds disbursed by the Commission and 
                        program funds awarded by the States are not 
                        used to expand access to broadband in the same 
                        unserved areas;
                            ``(iii) ensure the efficient use of program 
                        funds by coordinating with other Federal 
                        programs that expand access to broadband, such 
                        as--
                                    ``(I) the program set forth under 
                                subpart D of part 54 of title 47, Code 
                                of Federal Regulations (or any 
                                successor regulations);
                                    ``(II) the program set forth under 
                                subpart J of part 54 of title 47, Code 
                                of Federal Regulations (or any 
                                successor regulations); and
                                    ``(III) the broadband loan and 
                                grant pilot program known as the `Rural 
                                eConnectivity Pilot Program' or the 
                                `ReConnect Program' authorized under 
                                section 779 of division A of the 
                                Consolidated Appropriations Act, 2018 
                                (Public Law 115-141; 132 Stat. 399); 
                                and
                            ``(iv) ensure that each participating State 
                        conducts a reverse auction in a manner that--
                                    ``(I) achieves the goals of this 
                                section; and
                                    ``(II) does not conflict with the 
                                rules of, or reverse auctions conducted 
                                by, the Commission.
            ``(2) Sense of congress.--It is the sense of Congress that, 
        in conducting the rulemaking under paragraph (1), the 
        Commission should consider using milestones for completion 
        under the program that are similar to those with respect to the 
        program set forth under subpart J of part 54 of title 47, Code 
        of Federal Regulations (or any successor regulations).
            ``(3) State rulemaking requirements.--A State that accepts 
        funding under the program shall promulgate rules that 
        establish--
                    ``(A) standard penalties for any funding recipient 
                or project that does not comply with this section or 
                with any additional requirements imposed by the State 
                with respect to a reverse auction conducted by the 
                State; and
                    ``(B) procedures for the recovery of funds, in 
                whole or in part, from a funding recipient if the 
                funding recipient, or the project carried out by the 
                funding recipient, fails to comply with the 
                requirements of this section or with any additional 
                requirements imposed by the State with respect to a 
                reverse auction conducted by the State.
    ``(h) Reports Required.--
            ``(1) Inspector general and comptroller general annual 
        reports.--Not later than 1 year after the date on which funds 
        are first awarded under the program, and annually thereafter 
        through fiscal year 2030, the Inspector General of the 
        Commission and the Comptroller General of the United States 
        shall submit to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Energy and 
        Commerce of the House of Representatives a report that--
                    ``(A) reviews the program for the year covered by 
                the report; and
                    ``(B) includes any recommendations to address 
                waste, fraud, and abuse with respect to the program.
            ``(2) State reports.--A State that, in a year, receives 
        funds under the program shall submit to the Commission--
                    ``(A) a report regarding how those funds were spent 
                during the applicable year; and
                    ``(B) a certification that the State, for that 
                year, has complied with the requirements of this 
                section and with any further requirements prescribed by 
                the Commission in carrying out this section, including 
                a description of services provided with those funds and 
                the number of locations to which broadband service was 
                provided with those funds.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to the Commission $20,000,000,000 for fiscal year 2021 to 
carry out the program, which shall remain available through fiscal year 
2030.''.
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