On September 29th, California Governor Jerry Brown signed into law a bill that may make building community networks in his state just a bit easier. The memorably-named “Assembly Bill No. 2292” allows broadband projects to be included among the types of public works that can be financed using Infrastructure Financing Districts (IFDs).

IFDs are entities formed by regional coalitions of city, county, or other governmental units. They are designed to provide upfront funding for infrastructure projects that have broad regional benefits (highways, water systems, etc.), and are paid for by earmarking the increased property or other tax revenue the projects are expected to generate over a specified future period (usually decades). 

The idea behind IFDs - capturing future value to provide upfront funding to the projects that will create that value - is much like Tax Increment Financing (TIF) districts in other states. We have seen communities in other states turn to TIFs for broadband networks build outs, perhaps most notably throughout Indiana. 

The text of the bill is all of three lines long, and simply amends the existing authorizing law for IFDs to explicitly allow infrastructure financing districts to be used for “public capital facilities or projects that include broadband.” While the old wording of the statute did not explicitly reject using IFDs for broadband projects, it did not explicitly allow it either.

Removing the uncertainty around the issue should help encourage local governments to consider network investments, especially since one of the major unpredictable costs is incumbent lawsuits. This change will slightly reduce the opportunity for incumbents to slow a municipal network with a lawsuit.

The bill was written and sponsored by Representative Rob Bonta, who represents parts of both Oakland and San Leandro in the Bay Area. It is no coincidence that San Leandro is a city seeing the benefits of robust fiber optic infrastructure, and San Leandro mayor reportedly pushed...

The National League of Cities will be presenting a free webinar on June 13 on local broadband solutions. The event, titled Local Broadband Initiatives: Finding a Model That Works for You, is scheduled at 2 p.m. EDT.

The speaker line up includes three leaders in policy, law, and implementation:

• Jim Baller, President, Baller Herbst Law Group, Washington, DC
• Joanne Hovis, President, CTC Technology and Energy, Kensington, MD and President, National Association of Telecommunications Officers and Advisors, Kensington, MD
• Deborah Acosta, Chief Innovation Officer, City of San Leandro, CA

NLC describes the discussion as:

Broadband, or high-speed internet, service providers can take many forms, ranging from national franchises to local providers to city/county governments to a combination of public and private partners working together.  This webinar will give participants a better understanding of what the landscape of local broadband initiatives looks like in terms of public-private models, how and where local governments fit into these partnerships, and how they are financing and leveraging these initiatives to get the most benefit for their communities. 

You can register for free.