Title: Connect America Act of 2019
Policy area: Science, Technology, Communications

Summary:
Connect America Act of 2019
This bill requires the Federal Communications Commission to establish a funding program to expand broadband access for unserved and underserved areas and unserved anchor institutions, such as schools or libraries. The program shall consist of both a national reverse auction and population-based grants to states.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3278 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 3278

      To amend the Communications Act of 1934 to provide for the 
       establishment of a program to expand access to broadband.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 13, 2019

Mr. Loebsack (for himself, Mr. Lujan, Ms. Schakowsky, Mr. McNerney, Mr. 
 O'Halleran, Mr. Welch, Ms. Eshoo, Ms. Clarke of New York, Mr. Michael 
   F. Doyle of Pennsylvania, Mr. Tonko, Mr. Veasey, Ms. DeGette, Ms. 
 Kuster of New Hampshire, Mr. Pallone, Mr. Butterfield, Mrs. Dingell, 
Mr. Cardenas, and Ms. Matsui) introduced the following bill; which was 
            referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
      To amend the Communications Act of 1934 to provide for the 
       establishment of a program to expand access to broadband.

    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 ``Connect America Act of 2019''.

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 new section:

``SEC. 14. EXPANSION OF BROADBAND ACCESS.

    ``(a) Program Established.--Not later than 180 days after the date 
of the enactment of this section, the Commission, in consultation with 
the Assistant Secretary, shall establish a program to expand access to 
broadband for unserved areas, underserved areas, and unserved anchor 
institutions in accordance with the requirements of this section that--
            ``(1) is separate from any universal service program 
        established pursuant to section 254; and
            ``(2) does not require funding recipients to be designated 
        as eligible telecommunications carriers under section 214(e).
    ``(b) Use of Program Funds.--
            ``(1) Expanding access to broadband through national 
        reverse auction.--Not later than 18 months after the date of 
        the enactment of this section, the Commission shall award 75 
        percent of the amounts appropriated under subsection (h) 
        through a national reverse auction to funding recipients only 
        to expand access to broadband in unserved areas.
            ``(2) Expanding access to broadband through states.--
                    ``(A) Distribution of funds to states.--Not later 
                than 255 days after the date of the enactment of this 
                section, the Commission shall distribute 25 percent of 
                the amounts appropriated under subsection (h) among the 
                States, in direct proportion to the population of each 
                State.
                    ``(B) Public notice.--Not later than 195 days after 
                the date of the enactment of this section, the 
                Commission shall issue a public notice informing each 
                State and the public of the amounts to be distributed 
                under this paragraph. The notice shall include--
                            ``(i) the manner in which a State shall 
                        inform the Commission of that State's 
                        acceptance or acceptance in part of the amounts 
                        to be distributed under this paragraph;
                            ``(ii) the date (which is 30 days after the 
                        date on which the public notice is issued) by 
                        which such acceptance or acceptance in part is 
                        due; and
                            ``(iii) the requirements as set forth under 
                        this section and as may be further prescribed 
                        by the Commission.
                    ``(C) Acceptance by states.--Not later than 30 days 
                after the date on which the public notice is issued 
                under subparagraph (B), each State accepting amounts to 
                be distributed under this paragraph shall inform the 
                Commission of the acceptance or acceptance in part by 
                the State of the amounts to be distributed under this 
                paragraph in the manner described by the Commission in 
                the public notice.
                    ``(D) Requirements for state receipt of amounts 
                distributed.--Each State accepting amounts distributed 
                under this paragraph--
                            ``(i) shall only award such amounts through 
                        a statewide reverse auction or auctions, in the 
                        manner prescribed by the State but subject to 
                        the requirements as set forth under this 
                        section and as may be further prescribed by the 
                        Commission;
                            ``(ii) shall make such awards only--
                                    ``(I) to funding recipients to 
                                expand access to broadband in unserved 
                                areas;
                                    ``(II) to funding recipients to 
                                expand access to broadband to unserved 
                                anchor institutions; or
                                    ``(III) to funding recipients to 
                                expand access to broadband in 
                                underserved areas, but only if a State 
                                does not have, or no longer has, any 
                                unserved areas;
                            ``(iii) shall conduct separate reverse 
                        auctions for awards made to unserved anchor 
                        institutions under clause (ii)(II), if a State 
                        awards any funding provided by this section to 
                        unserved anchor institutions;
                            ``(iv) shall return any unused portion of 
                        such amounts to the Commission within 10 years 
                        after the date of the enactment of this section 
                        and shall submit a certification to the 
                        Commission before receiving such amounts that 
                        the State will return such amounts; and
                            ``(v) may not use more than 5 percent of 
                        the amounts distributed under this paragraph to 
                        administer a reverse auction or auctions 
                        authorized by this paragraph.
            ``(3) Coordination of federal and state funding.--The 
        Commission shall establish processes through the rulemaking 
        under subsection (e) to--
                    ``(A) enable States to conduct statewide reverse 
                auctions as part of, or in coordination with, the 
                national reverse auction;
                    ``(B) assist States in conducting statewide reverse 
                auctions;
                    ``(C) coordinate with States to ensure that program 
                funds awarded by the Commission and program funds 
                awarded by the States are not used to expand access to 
                broadband in the same unserved areas; and
                    ``(D) coordinate with other Federal programs that 
                expand access to broadband, such as the Connect America 
                Fund or the Broadband e-Connectivity Pilot Program, to 
                ensure the efficient use of program funds.
    ``(c) Program Requirements.--
            ``(1) Technology neutrality required.--Any entity 
        administering a reverse auction (either the State or the 
        Commission) in making awards may not favor a project using any 
        particular technology.
            ``(2) Funds preference.--There shall be a preference, as 
        determined by the entity administering the reverse auction 
        (either the State or the Commission), for bidders in a reverse 
        auction proposing projects--
                    ``(A) with at least 20 percent matching funds from 
                private sources;
                    ``(B) that would expand access to broadband on 
                tribal lands, as defined by the Commission;
                    ``(C) that would provide higher speeds than those 
                specified in subsection (d)(2);
                    ``(D) that would expand access to broadband in 
                advance of the time specified in subsection (e)(5); or
                    ``(E) that would expand access to broadband to 
                areas where the median household income is below 150 
                percent of the poverty threshold as defined by the 
                Bureau of the Census.
            ``(3) Unserved and underserved areas.--In determining 
        whether an area is an unserved area or an underserved area or 
        whether an anchor institution is an unserved anchor institution 
        for any reverse auction authorized under this section, the 
        Commission shall implement the following requirements through 
        the rulemaking described in subsection (e):
                    ``(A) Data for initial determination.--To make an 
                initial determination as to whether an area is an 
                unserved area or an underserved area or whether an 
                anchor institution is an unserved anchor institution, 
                the Commission shall--
                            ``(i) to the extent practicable, use the 
                        National Broadband Availability Map, updated 
                        pursuant to the Consolidated Appropriations 
                        Act, 2018 (Public Law 115-141);
                            ``(ii) consider other data on access to 
                        broadband obtained or purchased by the 
                        Commission;
                            ``(iii) consider other publicly available 
                        data or information on access to broadband;
                            ``(iv) consider other publicly available 
                        data or information on State broadband 
                        deployment programs; and
                            ``(v) not determine an area is not an 
                        unserved area or an underserved area on the 
                        basis that one location within such area does 
                        not meet the definition of an unserved area or 
                        an underserved area.
                    ``(B) Initial determination.--The Commission shall 
                make an initial determination of the areas that are 
                unserved areas or underserved areas and which anchor 
                institutions are unserved anchor institutions not later 
                than 270 days after the date of the enactment of this 
                section.
                    ``(C) Challenge of determination.--
                            ``(i) In general.--The Commission shall 
                        provide for a process for challenging any 
                        initial determination regarding whether an area 
                        is an unserved area or an underserved area or 
                        whether an anchor institution is an unserved 
                        anchor institution that, at a minimum, provides 
                        not less than 45 days for a person to 
                        voluntarily submit information concerning--
                                    ``(I) the broadband offered in the 
                                area; or
                                    ``(II) the broadband offered to the 
                                anchor institution.
                            ``(ii) Streamlined process.--The Commission 
                        shall ensure that such process is sufficiently 
                        streamlined such that a reasonably prudent 
                        person may easily participate to challenge such 
                        initial determination with little burden on 
                        such person.
                    ``(D) Final determination.--The Commission shall 
                make a final determination of the areas that are 
                unserved areas or underserved areas and which anchor 
                institutions are unserved anchor institutions within 1 
                year after the date of the enactment of this section.
            ``(4) Notice, transparency, accountability, and oversight 
        required.--The program shall contain sufficient notice, 
        transparency, accountability, and oversight measures to provide 
        the public with notice of the assistance provided under this 
        section, and to deter waste, fraud, and abuse of program funds.
            ``(5) Competence.--The program shall contain sufficient 
        processes and requirements, as established by the entity 
        administering the reverse auction (either the State or the 
        Commission), to ensure funding recipients participating in such 
        a reverse auction--
                    ``(A) are capable of carrying out the project in a 
                competent manner in compliance with all applicable 
                Federal, State, and local laws; and
                    ``(B) have the financial capacity to meet the 
                buildout obligations of the project and requirements as 
                set forth under this section and as may be further 
                prescribed by the Commission.
            ``(6) Contracting requirements.--Any laborer or mechanic 
        employed by any contractor or subcontractor in the performance 
        of work on any project under this section 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).
    ``(d) Project Requirements.--Any project funded through the program 
shall meet the following requirements:
            ``(1) The project shall adhere to quality-of-service 
        standards as established by the Commission.
            ``(2) The project shall offer broadband with a download 
        speed of at least 100 megabits per second, an upload speed of 
        at least 20 megabits per second, and a latency that is 
        sufficiently low to allow real-time, interactive applications.
            ``(3) For any project that involves laying fiber-optic 
        cables along a roadway, the project shall include interspersed 
        conduit access points at regular and short intervals.
            ``(4) The project may not offer broadband that does not, at 
        a minimum, provide a download speed of at least 25 megabits per 
        second, an upload speed of at least 3 megabits per second, and 
        a latency that is sufficiently low to allow real-time, 
        interactive applications.
            ``(5) The project shall incorporate prudent cybersecurity 
        and supply chain risk management practices, as specified by the 
        Commission, through the rulemaking described in subsection (e), 
        in consultation with the Director of the National Institute of 
        Standards and Technology and the Assistant Secretary.
            ``(6) The project shall incorporate best practices, as 
        defined by the Commission, for ensuring reliability and 
        resiliency of the network during disasters.
            ``(7) Any funding recipient must agree to have the project 
        meet the requirements established under section 224, as if the 
        project were classified as a `utility' under such section.
    ``(e) Rulemaking and Distribution and Award of Funds.--Not later 
than 180 days after the date of the enactment of this section, the 
Commission, in consultation with the Assistant Secretary, shall 
promulgate rules--
            ``(1) that implement the requirements of this section, as 
        appropriate, including the program requirements of subsections 
        (a), (b), and (c) and the project requirements of subsection 
        (d);
            ``(2) that establish the design of and rules for the 
        nationwide reverse auction;
            ``(3) that establish notice requirements for all reverse 
        auctions authorized under this section that, at a minimum, 
        provide the public with notice of--
                    ``(A) the initial determination of which areas are 
                unserved areas or underserved areas;
                    ``(B) the final determination of which areas are 
                unserved areas or underserved areas after the process 
                for challenging the initial determination has 
                concluded;
                    ``(C) which entities have applied to bid for 
                funding; and
                    ``(D) the results of any reverse auctions, 
                including identifying the funding recipients, which 
                areas each project will serve, the nature of the 
                service that will be provided by the project in each of 
                those areas, and how much funding the funding 
                recipients will receive in each of those areas;
            ``(4) that establish broadband buildout milestones and 
        periodic certification by funding recipients to ensure 
        compliance with the broadband buildout milestones for all 
        reverse auctions authorized under this section;
            ``(5) that establish a maximum buildout timeframe of four 
        years beginning on the date on which funding is provided under 
        this section for any project by a funding recipient for a 
        project under this section;
            ``(6) that establish periodic reporting requirements for 
        funding recipients of projects and that identify, at a minimum, 
        the nature of the service provided in each area for any reverse 
        auction authorized under this section;
            ``(7) that establish standard penalties for the 
        noncompliance of funding recipients or projects with the 
        requirements as set forth under this section and as may be 
        further prescribed by the Commission for any reverse auction 
        authorized under this section;
            ``(8) that establish procedures for recovery of funds, in 
        whole or in part, from funding recipients in the event of the 
        default or noncompliance of the funding recipient or project 
        with the requirements established under this section for any 
        reverse auction authorized under this section; and
            ``(9) that establish mechanisms to reduce waste, fraud, and 
        abuse within the program for any reverse auction authorized 
        under this section.
    ``(f) Reports Required.--
            ``(1) Inspector general and comptroller general report.--
        Not later than June 30 and December 31 of each year following 
        the awarding of the first funds under the program, the 
        Inspector General of the Commission and the Comptroller General 
        of the United States shall submit to the Committees on Energy 
        and Commerce of the House of Representatives and Commerce, 
        Science, and Transportation of the Senate a report for the 
        previous 6 months that reviews the program. Such report shall 
        include any recommendations to address waste, fraud, and abuse.
            ``(2) State reports.--Any State that receives funds under 
        the program shall submit an annual report to the Commission on 
        how such funds were spent, along with a certification of 
        compliance with the requirements as set forth under this 
        section and as may be further prescribed by the Commission, 
        including a description of each service provided and the number 
        of individuals to whom the service was provided.
    ``(g) Definitions.--In this section:
            ``(1) Anchor institution.--The term `anchor institution' 
        means a public or private school, a library, a medical or 
        healthcare provider, a museum, a public safety entity, public 
        housing, a community college, an institution of higher 
        education, or any other community support organization or 
        agency.
            ``(2) Area.--The term `area' means the geographic unit of 
        measurement with the greatest level of granularity reasonably 
        feasible for the Commission to use in making eligibility 
        determinations under this section and in meeting the 
        requirements and deadlines of 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) means broadband internet access service that 
                is a mass-market retail service, or a service provided 
                to an anchor institution, by wire or radio that 
                provides the capability to transmit data to and receive 
                data from all or substantially all internet endpoints, 
                including any capabilities that are incidental to and 
                enable the operation of the communications service;
                    ``(B) includes any service that is a functional 
                equivalent of the service described in subparagraph 
                (A); and
                    ``(C) does not include dial-up internet access 
                service.
            ``(5) Funding recipient.--The term `funding recipient' 
        means an entity that receives funding for a project under this 
        section.
            ``(6) Program.--Unless otherwise indicated, the term 
        `program' means the program established under subsection (a).
            ``(7) Project.--The term `project' means an undertaking by 
        a funding recipient under this section to construct and deploy 
        infrastructure for the provision of broadband.
            ``(8) Reverse auction.--The term `reverse auction' means an 
        auction in which bids are submitted for a particular project 
        and the bids serving the most locations for the lowest cost to 
        the entity administering the reverse auction (either the State 
        or the Commission), taking into consideration the funding 
        preferences in subsection (c)(2) are selected for funding.
            ``(9) Underserved area.--The term `underserved area' means 
        an area that has access to broadband offered--
                    ``(A) with a download speed of at least 25 megabits 
                per second and not more than 99 megabits per second;
                    ``(B) with an upload speed of at least 10 megabits 
                per second; and
                    ``(C) with latency that is sufficiently low to 
                allow real-time, interactive applications.
            ``(10) Unserved anchor institution.--The term `unserved 
        anchor institution' means an anchor institution that has no 
        access to broadband or does not have access to broadband 
        offered--
                    ``(A) with a download speed of at least 1 gigabit 
                per second;
                    ``(B) with an upload speed of at least 1 gigabit 
                per second; and
                    ``(C) with latency that is sufficiently low to 
                allow multiple, simultaneous, real-time, interactive 
                applications.
            ``(11) Unserved area.--The term `unserved area' means an 
        area that has no access to broadband or does not have access to 
        broadband offered--
                    ``(A) with a download speed of at least 25 megabits 
                per second;
                    ``(B) with an upload speed of at least 3 megabits 
                per second; and
                    ``(C) with latency that is sufficiently low to 
                allow real-time, interactive applications.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Commission $40,000,000,000 for fiscal year 2020 to 
carry out the program and such amount is authorized to remain available 
for 10 years.''.
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