SB384A - Establishes certain provisions relating to the award of grants of federal money by a state agency for the development of broadband services and infrastructure. (BDR 18-1035)

(Reprinted with amendments adopted on May 22, 2023) SECOND REPRINT S.B. 384 - *SB384_R2* SENATE BILL NO. 384–SENATOR DALY MARCH 27, 2023 ____________ Referred to Committee on Government Affairs SUMMARY—Establishes certain provisions relating to the award of grants of federal money by a state agency for the development of broadband services and infrastructure. (BDR 18-1035) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to broadband; establishing certain requirements for a state agency that awards grants of federal money for the development of broadband services and infrastructure; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law establishes the Office of Science, Innovation and Technology in 1 the Office of the Governor and requires: (1) the Director of the Office to establish 2 and administer a program of infrastructure grants for the development or 3 improvement of broadband services for persons with low income and persons in 4 rural areas of this State; and (2) the Office to establish and administer a program to 5 encourage the deployment of broadband infrastructure in underserved communities 6 in this State. (NRS 223.600, 223.610, 223.670) Section 2 of this bill sets forth a 7 legislative declaration regarding the importance of using a well-trained workforce 8 and providing jobs to residents of this State in expending federal money to increase 9 the development of broadband services and infrastructure in this State. 10 Section 3 of this bill requires each state agency that awards grants of federal 11 money for the development of broadband services and infrastructure to: (1) 12 evaluate and assign a score to each grant application received by the state agency 13 based on the factors and relative weights assigned to each factor that the state 14 agency specified in the request for grant applications; and (2) assign a relative 15 weight of 30 percent to a grant application if the applicant submits a signed 16 certification with his or her application. Section 3 provides that the applicant must 17 certify that if the applicant or a provider of broadband services will perform some 18 or all of the work or will subcontract some or all of the work to a licensed 19 contractor, the applicant, provider or contractor: (1) meets certain safety and 20 training requirements and provides job opportunities with high-quality wages for 21 residents of this State and members of underrepresented communities; or (2) is a 22 signatory to a collective bargaining agreement that covers the direct employees of 23 – 2 – - *SB384_R2* the applicant who will perform any work financed in whole or in part by the grant 24 money. 25 Section 3 also provides that if an applicant or provider is a signatory to a 26 collective bargaining agreement, certain provisions of law requiring the payment of 27 prevailing wages on public works do not apply. Section 3.5 of this bill makes a 28 conforming change to provide an exception to the requirements to pay prevailing 29 wages on public works. 30 Section 3 further requires each state agency to include as a condition of any 31 grant award that: (1) the certification provided by the applicant is binding upon the 32 applicant that is awarded the grant money; and (2) if a licensed contractor performs 33 any work, certain provisions of law governing public works apply to the work 34 performed by the subcontractor. Lastly, section 3 authorizes the Director of the 35 Office to adopt regulations to carry out the provisions of section 3. 36 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 232 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 and 3 of this act. 2 Sec. 2. The Legislature finds and declares that: 3 1. The State of Nevada is poised to see a once in a generation 4 wave of federal money resulting from the passage of the 5 Infrastructure Investment and Jobs Act, Public Law 117-58, and 6 the American Rescue Plan Act of 2021, Public Law 117-2, which 7 will help to close the digital divide and increase the development of 8 broadband services and infrastructure across the State; 9 2. The State of Nevada needs to ensure that this historic 10 investment creates long-lasting broadband infrastructure that is 11 built by a well-trained workforce; 12 3. Work performed by an unqualified contractor with a 13 poorly trained workforce endangers the public and is not in the 14 best interest of the citizens of this State; and 15 4. Proper stewardship of public money will require that the 16 State of Nevada implement appropriate measures to ensure that 17 any grants of federal money awarded by this State for the 18 development of broadband services and infrastructure prioritize 19 issuing grants to applicants that will ensure the work is performed 20 safely and by a well-trained workforce and that the applicant 21 provides quality jobs to Nevada workers. 22 Sec. 3. 1. In awarding any grant of federal money for the 23 development of broadband services and infrastructure in 24 accordance with federal law, each state agency shall: 25 (a) Evaluate and assign a score to each application received by 26 the state agency based on the factors and relative weights assigned 27 to each factor that the state agency specified in the request for 28 grant applications; and 29 – 3 – - *SB384_R2* (b) When ranking the proposals, assign a relative weight of 30 1 percent to an application if the applicant submits a signed 2 certification attesting that the applicant meets the requirements of 3 paragraph (a) or (b) of subsection 2. 4 2. An applicant for a grant of federal money for the 5 development of broadband services and infrastructure shall 6 submit to a state agency with the application for the grant a signed 7 statement certifying that: 8 (a) If the applicant: 9 (1) Will perform some or all of the work that is financed in 10 whole or in part with the grant money or if such work will be 11 performed by a provider of broadband services, the applicant or 12 provider, as applicable, meets the requirements set forth in 13 paragraph (b) or (c); and 14 (2) Will subcontract some or all of the work that is financed 15 in whole or in part with the grant money, the subcontractor meets 16 the requirements set forth in paragraph (b) or (c); 17 (b) The applicant, provider of broadband services or 18 contractor, as applicable: 19 (1) Has a robust training program with training 20 requirements that are tied to titles, uniform wage scales and skill 21 codes recognized in the industry; 22 (2) Requires safety training, including, without limitation, 23 any safety training requirements of the Occupational Safety and 24 Health Administration of the United States Department of Labor, 25 and operates a safety program that requires drug testing; 26 (3) Requires work performed by the applicant, provider or 27 contractor, as applicable, that is financed in whole or in part with 28 the grant money will be performed by employees who are directly 29 employed by the applicant, provider or contractor, as applicable, 30 and that such workers will receive high-quality wages and 31 benefits; 32 (4) Has programs to promote the training and hiring of 33 workers from underrepresented communities; and 34 (5) Primarily employs a qualified local work force 35 consisting of residents of this State or conducts a program to 36 promote the hiring of residents of this State; or 37 (c) The applicant, provider of broadband services or contractor 38 licensed pursuant to chapter 624 of NRS that will perform some or 39 all of the work is a signatory to a collective bargaining agreement 40 that covers all non-supervisory employees directly employed by the 41 applicant, provider or contractor, as applicable, who will perform 42 any work financed in whole or in part with the grant money. 43 3. Except as otherwise provided in subsection 5, the 44 provisions of NRS 338.020 to 338.090, inclusive, do not apply to 45 – 4 – - *SB384_R2* work performed by an applicant or provider of broadband services 1 that is a public work if the applicant or provider, as applicable, is a 2 signatory to a collective bargaining agreement. 3 4. Any certification submitted by an applicant for a grant 4 pursuant to subsection 2 must be made available on the Internet 5 website of the state agency which awarded the grant. 6 5. In addition to the requirements of subsections 1 and 2 and 7 except as otherwise provided in federal law, each state agency 8 shall require as a condition of any grant of federal money for the 9 development of broadband services and infrastructure in 10 accordance with federal law that is awarded by the state agency 11 that: 12 (a) Any certification provided by the applicant pursuant to 13 subsection 2 is binding upon the applicant who is awarded the 14 grant money; and 15 (b) If a contractor licensed pursuant to chapter 624 of NRS 16 performs any work financed in whole or in part with the grant 17 money, the provisions of NRS 338.020 to 338.090, inclusive, shall 18 apply. 19 6. If any federal statute or regulation precludes the granting 20 of federal assistance or reduces the amount of that assistance for a 21 particular grant because of the provisions of this section, the 22 provisions of this section do not apply insofar as their application 23 would preclude or reduce federal assistance for that work. 24 7. The Director of the Office of Science, Innovation and 25 Technology established pursuant to NRS 223.600 may adopt 26 regulations to carry out the provisions of this section. 27 8. As used in this section, “state agency” means every public 28 agency, bureau, board, commission, department, division, officer 29 or employee of the Executive Department of the State 30 Government. 31 Sec. 3.5. NRS 338.080 is hereby amended to read as follows: 32 338.080 Except as otherwise provided in NRS 408.55086, 33 none of the provisions of NRS 338.020 to 338.090, inclusive, apply 34 to: 35 1. Any work, construction, alteration, repair or other 36 employment performed, undertaken or carried out, by or for any 37 railroad company or any person operating the same, whether such 38 work, construction, alteration or repair is incident to or in 39 conjunction with a contract to which a public body is a party, or 40 otherwise. 41 2. Apprentices recorded under the provisions of chapter 610 of 42 NRS. 43 3. Any contract for a public work whose estimated cost is less 44 than $100,000. A unit of the project must not be separated from the 45 – 5 – - *SB384_R2* total project, even if that unit is to be completed at a later time, in 1 order to lower the estimated cost of the project below $100,000. 2 4. Any work performed for the development of broadband 3 services and infrastructure using grant money awarded pursuant 4 to section 3 of this act by the recipient of the grant money or a 5 provider of broadband services if the recipient or provider, as 6 applicable, is a signatory to a collective bargaining agreement, 7 unless the work is performed by a contractor who is licensed 8 pursuant to chapter 624 of NRS. 9 Sec. 4. 1. This section becomes effective upon passage and 10 approval. 11 2. Sections 1 to 3.5, inclusive, of this act become effective: 12 (a) Upon passage and approval for the purpose of adopting any 13 regulations and performing any other preparatory administrative 14 tasks that are necessary to carry out the provisions of this act; and 15 (b) On January 1, 2024, for all other purposes. 16 H