<html><body><span style="font-family:Verdana; color:#000000; font-size:10pt;"><div style="color: rgb(0, 0, 0); font-family: verdana, geneva; font-size: 10pt;">Thanks for posting Richard!</div><div style="color: rgb(0, 0, 0); font-family: verdana, geneva; font-size: 10pt;"><br></div><div style="color: rgb(0, 0, 0); font-family: verdana, geneva; font-size: 10pt;">Of note, Senate Bill 14-53 redirects High Cost $ to grants for Local Technology Planning Teams (infrastructure only) via Department of Local Affairs. Talking points are:</div><div style="color: rgb(0, 0, 0); font-family: verdana, geneva; font-size: 10pt;"><br></div><div style=""><font face="verdana, geneva" size="2" style="">1) High Cost Support Mechanism (HCSM) monies are redeployed away from Public Utilities Commission (PUC) landline telephone service subsidies provided for telephone companies in urban, suburban and rural markets ($53 million in 2013) to broadband infrastructure grants for un-served and underserved rural communities. The Department of Local Affairs (DOLA) will distribute the grant funds using their long-established infrastructure used to provide grants to local governments programs such as the Energy Impact Assistance Grants and Southwest Colorado Open Access Network.</font></div><div style=""><font face="verdana, geneva" size="2" style=""><br style=""></font></div><div style=""><font face="verdana, geneva" size="2" style="">2) HCSM grants are for planning, design and construction of “Redundant, abundant, affordable” open-access broadband infrastructure.</font></div><div style=""><font face="verdana, geneva" size="2" style=""> </font></div><div style=""><font face="verdana, geneva" size="2" style="">3) The best solutions are local. The fiscal agent for the LTPT should be a local governmental or quasi-governmental entity, such as County Commissioners, a public school district or City Council. LTPT’s that show a diverse group of interests, both public and private, including local service providers (electric cooperatives) and include technology competent membership will score well in funding criteria. (LTPT: currently 19 in Colorado, see Governor’s Blueprint and white papers on broadband, <a href="http://www.colorado.gov/oit/broadband">www.colorado.gov/oit/broadband</a>)</font></div><div style=""><font face="verdana, geneva" size="2" style=""><br style=""></font></div><div style=""><font face="verdana, geneva" size="2" style="">4) No one size fits all. Grants are “technology agnostic” and will favor no specific service provider(s) or network(s). Grant applicants, working with the DOLA staff, will determine what technology solutions are best for their communities and region of Colorado.</font></div><div style=""><font face="verdana, geneva" size="2" style=""><br style=""></font></div><div style=""><font face="verdana, geneva" size="2" style="">5) The bill defines the allocation of the HCSM between the PUC and DOLA and it provides that the director of the PUC serve on the advisory committee for grant-making decisions. The Chief Information Officer from the Office of information Technology will also serve on the advisory committee.</font></div><div style=""><font face="verdana, geneva" size="2" style=""> </font></div><div style=""><font face="verdana, geneva" size="2" style="">6) DOLA shall use an Advisory Board to make recommendations to the Director of DOLA for funding decisions. </font></div><div style=""><font face="verdana, geneva" size="2" style=""> </font></div><div style=""><font face="verdana, geneva" size="2" style="">7) DOLA will conduct a rule-making session to develop the process for application, eligibility and granting of the HCSM consistent with the priorities in the bill.</font></div><div style=""><font face="verdana, geneva" size="2" style=""><br style=""></font></div><div style=""><font face="verdana, geneva" size="2" style="">8) Funding will shift gradually, through a series of phases, from PUC to DOLA:</font></div><div style=""><font face="verdana, geneva" size="2" style="">Year 1, 75% PUC/25% DOLA</font></div><div style=""><font face="verdana, geneva" size="2" style="">Year 2, 50% PUC/50% DOLA</font></div><div style=""><font face="verdana, geneva" size="2" style="">Year 3, 25% PUC/75% DOLA… </font></div><div style=""><font face="verdana, geneva" size="2" style=""><br style=""></font></div><div style=""><font face="verdana, geneva" size="2" style="">9) After year 4, PUC may continue the historic HCSM at 10% of 2012 levels.</font></div><div style=""><font face="verdana, geneva" size="2" style=""><br style=""></font></div><div style=""><font face="verdana, geneva" size="2" style="">10) Not intended to alter 05-SB-152</font></div><div style=""><font face="verdana, geneva" size="2" style=""><br style=""></font></div><div style=""><font face="verdana, geneva" size="2" style="">11) Accountability: Ownership, construction and maintenance of funded assets are determined by grant applicants as stipulated in their grant application and coordinated and overseen by the DOLA staff. The Department of Regulatory Affairs will provide periodic review and scrutiny. </font></div><div style=""><br style=""></div><div style="color: rgb(0, 0, 0); font-family: verdana, geneva; font-size: 10pt;"><br></div>
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-------- Original Message --------<br>
Subject: [1st-mile-nm] Colorado Lawmakers aim to shift $50 million phone<br>
subsidy toward broadband<br>
From: Richard Lowenberg <<a href="mailto:rl@1st-mile.com">rl@1st-mile.com</a>><br>
Date: Mon, January 06, 2014 11:17 am<br>
To: 1st mile nm <<a href="mailto:1st-mile-nm@mailman.dcn.org">1st-mile-nm@mailman.dcn.org</a>><br>
<br>
A news item about efforts in neighboring CO. RL<br>
<br>
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<br>
Lawmakers aim to shift $50 million phone subsidy toward broadband<br>
<br>
By Andy Vuong, The Denver Post<br>
Posted: 01/05/2014<br>
<br>
<a href="http://www.denverpost.com/business/ci_24843279/lawmakers-aim-shift-50-million-phone-subsidy-toward">http://www.denverpost.com/business/ci_24843279/lawmakers-aim-shift-50-million-phone-subsidy-toward</a>?<br>
<br>
Colorado lawmakers and industry officials are dialed in on plans to <br>
overhaul a program that reimburses carriers more than $50 million <br>
annually for providing land-line phone service in rural areas.<br>
<br>
A revamp of the so-called High Cost Support Mechanism is expected to <br>
rank among the top business issues this coming session after efforts <br>
over the past three years failed. The federal government and other <br>
states have already restructured similarly outdated subsidies, shifting <br>
the money toward broadband expansion.<br>
<br>
Though competing measures are floating around, the consensus is that <br>
Colorado will also aim to repurpose the funds for broadband rather than <br>
eliminate the subsidy, which is backed by a 2.6 percent surcharge on <br>
land-line and mobile phone bills.<br>
<br>
The Colorado Public Utilities Commission has initiated a review to <br>
determine which areas of the state have sufficient competition and <br>
should no longer qualify for High Cost support. Industry leaders expect <br>
that process to free up several million dollars as early as this year.<br>
<br>
(Snip….)<br>
<br>
<br>
<br>
----------------------------------------<br>
Richard Lowenberg, Executive Dir.<br>
1st-Mile Institute, 505-603-5200<br>
P.O.Box 8001, Santa Fe, NM 87504<br>
<a href="http://www.1st-mile.org">www.1st-mile.org</a> rl@1st-mile.org<br>
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