Florida 2022 2022 Regular Session

Florida House Bill H1543 Analysis / Analysis

Filed 02/28/2022

                    This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h1543d.COM 
DATE: 2/28/2022 
 
HOUSE OF REPRESENTATIVES STAFF ANALYSIS  
 
BILL #: CS/HB 1543    Broadband Infrastructure 
SPONSOR(S): Commerce Committee, Tomkow and others 
TIED BILLS:  CS/HB 1545 IDEN./SIM. BILLS: CS/SB 1800 
 
REFERENCE 	ACTION ANALYST STAFF DIRECTOR or 
BUDGET/POLICY CHIEF 
1) Tourism, Infrastructure & Energy Subcommittee 16 Y, 0 N Keating Keating 
2) Infrastructure & Tourism Appropriations 
Subcommittee 
14 Y, 0 N Davis Davis 
3) Commerce Committee 	15 Y, 0 N, As CS Keating Hamon 
SUMMARY ANALYSIS 
In 2021, the Legislature took steps to improve broadband Internet access in unserved areas of the state. 
Among other things, the Legislature: 
 Created the Broadband Opportunity Program (grant program) to be administered by the Office of 
Broadband (Office) within the Department of Economic Opportunity (DEO). Subject to appropriation, 
the program would award grants to applicants, regardless of technology, who seek to expand access to 
broadband service in unserved areas of the state. This grant program has not yet received funding. 
 Provided for a promotional rate of $1 per wireline attachment per pole, per year for any new pole 
attachment necessary to make broadband service available to an unserved or underserved end user 
within a municipal electric utility service territory. 
 Appropriated $1.5 million to DEO to develop geographic information system maps of broadband service 
availability, including transmission speeds. These maps continue to be developed and updated. 
 
The Office is currently developing a strategic plan for increasing the availability and use of broadband service 
in the state. Florida law requires this plan to be completed by June 30, 2022. 
 
The bill authorizes the Office to reimburse eligible applicants for certain pole replacement costs incurred in the 
installation or deployment of infrastructure to support the provision of broadband Internet service to customers 
in an unserved area. The bill identifies the types of costs eligible, and establishes conditions, for 
reimbursement. Any entity eligible to apply for funding under the grant program created in 2021 is eligible to 
apply for reimbursement. However, an entity may not receive reimbursement funds if it has been awarded or 
has applied for funds under the grant program to deploy broadband Internet service to the same area. 
 
The bill requires that applications for reimbursement of pole replacement costs must provide information 
sufficient to establish the actual amount of the costs incurred and eligible for reimbursement and such other 
information as required by the Office. Applications must be submitted in a form specified by the Office. 
 
The bill requires the Office, beginning January 1, 2023, and each year thereafter, to publish on its website and 
provide to the Governor, the President of the Senate, and the Speaker of the House of Representatives, a list 
of all reimbursement applications received during the previous fiscal year and other specified information, 
including reimbursements amounts awarded. 
 
The bill requires DEO to adopt implementing rules, which may specify maximum annual reimbursement 
amounts per applicant and maximum reimbursement amounts per eligible pole replacement 
 
The bill takes effect on July 1, 2022.   STORAGE NAME: h1543d.COM 	PAGE: 2 
DATE: 2/28/2022 
  
FULL ANALYSIS 
I.  SUBSTANTIVE ANALYSIS 
 
A. EFFECT OF PROPOSED CHANGES: 
Present Situation 
 
Broadband Internet Deployment 
 
Fixed and mobile broadband Internet services provide access to numerous employment, education, 
entertainment, and health care opportunities.
1
 Communities that lack broadband access can have 
difficulty attracting new capital investment. While Florida’s urban areas are served at a fixed broadband 
coverage rate of 98 percent, its rural areas are served at a rate of 78.6 percent.
2
 This disparity is 
caused primarily by high per-unit construction costs required to build broadband infrastructure across 
larger swaths of rural geographic areas.
3
 
 
The recent COVID-19 pandemic has enhanced the need for broadband Internet access in everyday 
life. Studies indicate that broadband Internet access matters for jobs, income, business relocation, civic 
engagement, and health.
4
 In addressing broadband Internet access issues, states have established 
broadband offices and created special funding programs to offer financial incentives for broadband in 
lower density areas.
5
 Additionally, as schools go online, data indicates that low income households 
disproportionally lack access to broadband Internet service, which puts their children at risk of falling 
behind.
6
 
 
Federal Broadband Initiatives 
 
FCC Rural Digital Opportunity Fund 
 
In January 2020, the Federal Communications Commission (FCC) established the Rural Digital 
Opportunity Fund (Fund) to fund the deployment of broadband networks in rural America over the next 
decade. The program will consist of two phases. Using data from the FCC’s previous mapping efforts, 
the first phase began in 2020 and made available up to $16 billion to target census blocks that are 
wholly unserved with fixed broadband speeds of at least 25 megabits per second (Mbps) downstream 
and 3 Mbps upstream (25/3 Mbps).
7
 The winning bidders from the first round under Phase I were 
announced in December 2020, with entities that bid to provide service in Florida receiving over $190 
million over the next 10 years.
8
 
 
Phase II of the Fund will target underserved localities, as identified by the FCC’s Digital Opportunity 
Data Collection Program.
9
 Using this more precise data, the second phase of FCC grants will make 
                                                
1
 U.S. Federal Communications Commission (FCC), 2018 Broadband Deployment Report, at 1 (Feb. 2, 2018), available at 
https://docs.fcc.gov/public/attachments/FCC-18-10A1.pdf (last visited Feb. 1, 2022). 
2
 FCC, 2021 Broadband Deployment Report at 63 (Jan. 19, 2021), available at https://docs.fcc.gov/public/attachments/FCC-21-
18A1.pdf (last visited Feb. 1, 2022). For purposes of this data, ‘fixed broadband services’ are measured at 25 megabits per second 
downstream and 3 megabits per second upstream. 
3
 American Broadband Initiative, Milestones Report, at 11 (Feb. 13, 2019), available at 
https://www.ntia.doc.gov/files/ntia/publications/american_broadband_initiative_milestones_report.pdf (last visited Feb. 1, 2022). 
4
 COVID-19 lockdowns expose the digital have-nots in rural areas – here’s which policies can get them connected (Sep. 2, 2020), 
https://theconversation.com/covid-19-lockdowns-expose-the-digital-have-nots-in-rural-areas-heres-which-policies-can-get-them-
connected-144324 (last visited Feb. 1, 2022). 
5
 Id. 
6
 New American Economy Research Fund, Back to School: A Look at the Internet Access Gap. (Aug. 6, 2020), 
https://research.newamericaneconomy.org/report/internet-access-covid-19/ (last visited Feb. 1, 2022). 
7
 FCC, FCC Launches $20 Billion Rural Digital Opportunity Fund, https://www.fcc.gov/document/fcc-launches-20-billion-rural-
digital-opportunity-fund-0 (last visited Feb. 1, 2022). 
8
 FCC, Auction 904 Winning Bidders, https://www.fcc.gov/document/auction-904-winning-bidders (last visited Feb. 1, 2022). 
9
 See, FCC, FCC Launches $20 Billion Rural Digital Opportunity Fund, supra note 7 at 3.  In August 2019, the FCC adopted the 
Digital Opportunity Data Collection Program, which modernized the collection of broadband deployment data by creating granular 
coverage maps, as opposed to census tract maps, and by implementing a process to accept public data to confirm the maps’ accuracy.   STORAGE NAME: h1543d.COM 	PAGE: 3 
DATE: 2/28/2022 
  
available at least $4.4 billion to target geographic areas where some locations lack access to 25/3 
Mbps broadband.
10
  Grants from both phases of the Fund are provided directly to service providers. 
 
Department of Commerce Coronavirus Capital Projects Fund 
 
The 2021 American Rescue Plan
11
 allocated $10 billion to eligible governments to carry out capital 
projects to meet critical needs, with an emphasis on broadband infrastructure.
12
 Each state is eligible 
for a fixed amount of $100 million plus an additional allocation based on the state’s population, the 
proportion of its population that lives in rural areas, and the proportion of individuals who receive a 
household income below 150 percent of the poverty line.
13
 
 
Eligible states must have applied by December 27, 2021, and submit a grant plan by September 24, 
2022.
14
 Capital Projects Fund recipients may pass the funds on to subrecipients, such as other levels of 
government, non-profits, or private entities. Florida’s allocation of these funds is $366 million,
15
 for 
which Florida’s Department of Economic Opportunity (DEO) timely applied. 
 
Presumptively eligible projects under the program include the construction and deployment of 
broadband infrastructure that is designed to deliver service that reliably meets or exceeds symmetrical 
speeds of 100 Mbps, or if impracticable, speeds of 100 Mbps downstream and 20 Mbps upstream.
16
 
Projects that may be eligible on a case-by-case review include investments in capital assets, such as 
buildings, towers, digital devices and equipment, fiber-optic lines, and broadband networks.
17
 
 
USDA Programs 
 
The U.S. Department of Agriculture (USDA) has several rural utilities programs to provide a variety of 
loans and grants to build and expand broadband networks.
18
 The ReConnect Program offers federal 
loans, grants, and loan/grant combinations to facilitate broadband deployment to rural areas without 
access to sufficient broadband service. Eligible entities include cooperatives and nonprofits, for-profit 
companies, and state and local governments and their agencies and political subdivisions. Applicants 
for a grant or a loan/grant combination under the ReConnect Program must submit a scoring sheet by 
which USDA may analyze nine separate evaluation criteria to score the application. One of the 
evaluation criteria is whether the proposed project is in a state with a broadband plan that has been 
updated within the previous 5 years.
19
 
 
Additional Federal Broadband Funding and Initiatives 
 
                                                                                                                                                                                 
In March 2020, Congress ratified the FCC’s Data Collection Program with passage of the Broadband Data Act, which requires the 
FCC to establish a semiannual collection of geographically granular broadband coverage data to use to create coverage maps.  
Congress allocated $65 million to the FCC to achieve this mapping project in December 2020. 
10
 Id. at 4. 
11
 Pub. L. 117-2 (117
th
 Congress) (H.R. 1319). 
12
 U.S. Dep’t. of Treasury, Capital Projects Fund, https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-
tribal-governments/capital-projects-fund (last visited Feb. 1, 2022). 
13
 U.S. Dep’t. of Treasury, Coronavirus Capital Projects Fund: Allocations Methodology for States, Territories, and Freely 
Associated States (Aug. 2021), https://home.treasury.gov/system/files/136/Allocations-Methodology-States-Territories-Freely-
Associated-States.pdf (last visited Feb. 1, 2022). 
14
 Id. See also, U.S. Dep’t. of Treasury, Guidance for the Coronavirus Capital Projects Fund for States, Territories, and Freely 
Associated States, 1, 14 (Sept. 2021), https://home.treasury.gov/system/files/136/Capital-Projects-Fund-Guidance-States-Territories-
and-Freely-Associated-States.pdf (last visited Feb. 1, 2022). 
15
 U.S. Dep’t. of Treasury, Coronavirus Capital Projects Fund: Allocations for States, District of Columbia, and Puerto Rico, 
https://home.treasury.gov/system/files/136/Allocations-States.pdf (last visited Feb. 1, 2022). 
16
U.S. Dep’t. of Treasury, Guidance for the Coronavirus Capital Projects Fund for States, Territories, and Freely Associated States, 
supra note 14 at 3. 
17
 Id. at 7. 
18
 USDA, Telecom Programs, available at https://www.rd.usda.gov/programs-services/all-programs/telecom-programs (last visited 
Feb. 1, 2022). 
19
 See USDA, ReConnect Loan and Grant Program, available at https://www.usda.gov/reconnect#anchor1 (last visited Feb. 1, 2022).  STORAGE NAME: h1543d.COM 	PAGE: 4 
DATE: 2/28/2022 
  
Multiple federal assets have been made available to assist with the expansion of broadband, for 
example:
20
 
 The U.S. Department of Housing and Urban Development
21
 offers block grants that can support 
broadband infrastructure; 
 The Department of the Interior launched a mapping tool to allow service providers to locate 
federal property available for infrastructure development;
22
 and 
 The National Telecommunications and Information Administration (NTIA) within the U.S. 
Department of Commerce is working to improve coordination between federal programs that 
fund broadband and statewide efforts.
23
 
 
The Consolidated Appropriations Act passed by Congress in December 2020
24
 included the following 
funding to expand broadband Internet access for students, families, and unemployed workers:
25
 
 $300 million for areas lacking broadband, especially rural areas;
26
 
 $250 million for the FCC’s telehealth program;
27
 
 $285 million to fund a pilot program to assist with broadband issues at historically Black colleges 
and universities;
28
 and 
 $1 billion in grants for tribal broadband programs.
29
 
 
The American Rescue Plan, signed into law on March 11, 2021, includes multiple appropriations that 
can be used for broadband infrastructure, including $10 billion for the Coronavirus Capital Projects 
Fund (discussed above) to provide grants to states for the costs of capital projects, like broadband 
infrastructure, and $130.2 billion for Community Development Block Grants that can be used for 
community development projects, including broadband infrastructure.
30
 
 
Additionally, the Infrastructure Investment and Jobs Act,
31
 signed into law on November 15, 2021, 
contains $64 billion in funding for broadband expansion and access. The law:
32
  
                                                
20
 See generally, National Telecommunications and Information Administration (NTIA), American Broadband Initiative, Progress 
Report (June 2020), available at https://www.ntia.doc.gov/files/ntia/publications/abi_progress_report_june2020.pdf (last Jan. 21, 
2022).  
21
 U.S. Department of Housing and Urban Development, State CDBG Program Broadband Infrastructure FAQs (Jan. 7, 2016), 
available at https://files.hudexchange.info/resources/documents/State-CDBG-Program-Broadband-Infrastructure-FAQs.pdf (last 
visited Feb. 1, 2022). 
22
 U.S. Department of Interior, Supporting Broadband Tower Facilities in Rural America on Federal Properties Managed at Interior, 
available at https://www.doi.gov/broadband (last visited Feb. 1, 2022). 
23
 Broadband USA, State Broadband Leaders Network (Dec. 19, 2018), available at https://broadbandusa.ntia.doc.gov/ntia-
resources/state-broadband-leaders-network-sbln (last visited Feb. 1, 2022). 
24
 Consolidated Appropriations Act of 2020, H.R. 1865, 116
th
 Cong. (2020). 
25
 NCSL, COVID-19 Economic Relief Bill: Broadband, (Jan. 4, 2021) https://www.ncsl.org/ncsl-in-dc/publications-and-
resources/covid-19-economic-relief-bill-stimulus.aspx#:~:text=Erlinda%20Doherty-
,Overview,agency%20operations%20through%20September%202021. (last visited Feb. 1, 2022). 
26
 See generally, NTIA, Overview of Consolidated Appropriations Act, 2021: Broadband Infrastructure Deployment Grants, available 
at https://broadbandusa.ntia.doc.gov/ntia-common-content/overview-consolidated-appropriations-act-2021 (last visited Feb. 1, 2022). 
These grants will be available to support infrastructure for the deployment of fixed broadband service in a census block with at least 
one household or business that does not have access to internet at 25/3Mbps or higher.  
27
 FCC, COVID-19 Telehealth Program (Feb. 9, 2021), available at https://www.fcc.gov/covid-19-telehealth-program (last visited 
Feb. 1, 2022). 
28
 See generally, NTIA, Minority Broadband Initiative, available at https://www.ntia.doc.gov/category/minority-broadband-initiative 
(last visited Feb. 1, 2022). 
29
 See generally, NTIA, NTIA Announces Tribal Consultations on New Program to Increase Broadband Access Across Indian 
Country (Feb. 5, 2021), available at https://www.ntia.gov/blog/2021/ntia-announces-tribal-consultations-new-program-increase-
broadband-access-across-indian (last visited Feb. 1, 2022). 
30
 Pub. L. No. 112-2, ss. 603 and 604 (117
th
 Congress) (H.R. 1319). U.S. Treasury, FACT SHEET: The American Rescue Plan Will 
Deliver Immediate Economic Relief to Families, https://home.treasury.gov/news/press-releases/jy0069 (last visited Feb. 1, 2022). 
31
 Pub. L. No. 117-58 (117
th
 Congress) (H.R. 3684). See also, Congressional Research Service, The Infrastructure Investment and 
Jobs Act (P.L. 117-58): Summary of the Broadband Provisions in Division F (Nov. 16, 2021), 
https://crsreports.congress.gov/product/pdf/R/R46967 (last visited Feb. 1, 2022). 
32
 NTIA, Infrastructure Investment and Jobs Act Overview, https://www.ntia.doc.gov/category/grants (last visited Feb. 1, 2022).  STORAGE NAME: h1543d.COM 	PAGE: 5 
DATE: 2/28/2022 
  
 Establishes the Broadband Equity, Access, and Development Program to be administered by 
the NTIA to states through matching grants;  
 Allocates $2.75 billion to the Digital Equity Act Competitive Grant Programs administered by the 
Department of Commerce; 
 Invests $2 billion in the Tribal Broadband Connectivity Program; and  
 Funds the Middle Mile Grants program, administered by the NTIA, with $1 billion, especially to 
support construction, improvement, or acquisition of broadband infrastructure. 
 
Florida Broadband Initiatives 
 
Florida’s Office of Broadband 
 
In 2020, the Legislature designated the Department of Economic Opportunity as the lead state agency 
to facilitate the expansion of broadband Internet service in the state.
33
 The Florida Office of Broadband 
(Office) was created within DEO’s Division of Community Development for purposes of developing, 
marketing, and promoting broadband Internet service in the state.
34
 
 
The Office must:
35
 
 Create a strategic plan
36
 for increasing the availability and use of broadband Internet service in 
the state, which must identify federal funding sources for the expansion of broadband and 
include a process to review and verify public input regarding transmission speeds and 
availability of broadband Internet service throughout the state; 
 Build local technology planning teams representing, among others, libraries, schools, colleges 
and universities, local health care providers, private businesses, community organizations, 
economic development organizations, local governments, tourism, parks and recreation, and 
agriculture to identify needs and resources to reduce barriers to the deployment of broadband 
Internet services; 
 Encourage the use of broadband Internet service, especially in rural, unserved, and 
underserved
37
 areas of the state through grant programs; and 
 Monitor, participate in, and provide input in proceedings of the FCC and other federal agencies 
related to the geographic availability and deployment of broadband Internet service as 
necessary to ensure that Florida’s rural, unserved, and underserved areas are best positioned 
to benefit from federal and state broadband deployment programs; and 
 Administer Florida’s Broadband Opportunity Program.
38
 
 
DEO may apply for and accept federal grant funds, enter into necessary or useful contracts, and 
establish any committee or workgroup to administer the program to further the above goals.
39
 
 
In 2021, the Legislature appropriated $1.5 million to DEO to develop geographic information system 
maps of broadband Internet service availability, including transmission speeds, consistent with the 
FCC’s data collection program standards.
40
 DEO must collaborate with broadband service providers, 
state agencies, local government entities, private businesses, educational institutions, and community 
organizations to develop these maps.
41
 Through its website, DEO allows for public input concerning the 
speed, connectivity, and access to broadband Internet service in areas throughout the state to help 
                                                
33
 Ch. 2002-26, Laws of Fla. 
34
 Id. 
35
 S. 288.9961(4), F.S. 
36
 The strategic plan must be submitted to the Governor, the President of the Senate, and the Speaker of the House of Representatives 
by June 30, 2022, and updated biennially thereafter. S. 288.9961(4)(a), F.S. 
37
 Section 288.9961(2)(f), F.S., defines the term “underserved” to mean a geographic area of this state in which there is no provider of 
broadband Internet service that offers a connection to the Internet with a capacity for transmission at a consistent speed of at least 10 
Mbps downstream and at least 1 Mbps upstream. 
38
 The Broadband Opportunity Program is established in s. 288.9962, F.S., to award grants to those who seek to expand broadband 
Internet service to unserved areas of Florida. 
39
 S. 288.9961(5), F.S. 
40
 Ch. 2021-24, Laws of Fla. 
41
 Id.  STORAGE NAME: h1543d.COM 	PAGE: 6 
DATE: 2/28/2022 
  
identify unserved and underserved areas. DEO’s mapping efforts are not complete and will continue to 
be updated as more data is added.
42
 
 
Broadband Opportunity Program 
 
In 2021, the Legislature created the Broadband Opportunity Program
43
 (grant program) to award grants 
to applicants who seek to expand access to broadband Internet service
44
 in unserved
45
 areas of the 
state, regardless of the technology to be used. Grant funds may not be used to provide broadband 
Internet service to a geographic area where broadband Internet is already deployed by at least one 
provider. Applicants eligible for grant awards include corporations, limited liability companies, general 
partnerships, limited partnerships, political subdivisions, and Indian tribes. 
 
In evaluating grant applications and awarding grants, the Office must prioritize applications that: 
 Offer broadband Internet service to important community institutions, including, but not limited 
to, libraries, educational institutions, public safety facilities, and healthcare facilities; 
 Facilitate the use of telemedicine and electronic health records; 
 Serve economically distressed areas of the state, as measured by indices of unemployment, 
poverty, or population loss that are significantly greater than the statewide average; 
 Provide for scalability to transmission speeds of at least 100 megabits per second download 
and 10 megabits per second upload; 
 Include a component to actively promote the adoption of the newly available broadband Internet 
services in the community; 
 Provide evidence of strong support for the project from citizens, government, businesses, and 
institutions in the community; 
 Provide access to broadband Internet service to the greatest number of unserved households 
and businesses; 
 Leverage greater amounts of funding for the project from private sources; or 
 Demonstrate consistency with the Office’s strategic plan.
46
 
 
The Office must endeavor to award grants to qualified applicants in all regions of the state. The Office 
may not award any grant to an otherwise eligible grant applicant to provide broadband Internet service 
in a project area for which any other federal funding has been awarded. A grant, when combined with 
any state or local funds, may not fund more than 50 percent of the total cost of a project, and a single 
project may not be awarded a grant in excess of $5 million. 
 
The Office has not yet received funding for the grant program. 
 
Promotional Pole Attachment Rates 
 
The term “pole attachment” refers to the process by which communications companies can collocate 
communications infrastructure on existing electric utility poles. Utility poles are divided into various 
“spaces” for specific uses, and different vertical portions of the pole serve different functions.
47
 Utility 
poles often accommodate equipment used to provide a variety of services, including electric power, 
telephone, cable, wireline broadband, and wireless, which benefits the public by minimizing 
“unnecessary and costly duplication of plant for all pole users.”
48
  
                                                
42
 DEO, Office of Broadband, https://floridajobs.org/community-planning-and-development/broadband/office-of-broadband (last 
visited Feb. 1, 2022). 
43
 Section 288.9962, F.S. 
44
 Section 288.9961(2)(a), F.S., defines the term “broadband Internet service” to mean any service that provides access to the Internet 
with a capacity for transmission at a consistent speed of at least 25 megabits per second download and 3 megabits per second upload. 
45
 Section 288.9961(2)(g), F.S., defines the term “unserved” to mean a geographic area of the state without access to broadband 
Internet service. 
46
 The Office is in the process of developing a strategic plan for submission by June 30, 2022, as required by section 288.9961(4)(a), 
F.S. 
47
 See Florida Public Service Commission, What’s on a Utility Pole? http://www.psc.state.fl.us/ConsumerAssistance/UtilityPole (last 
visited Feb. 1, 2022). 
48
 S. REP. NO. 95-580, at 13 (1977), as reprinted in 1978 U.S.C.C.A.N. 109, 121.  STORAGE NAME: h1543d.COM 	PAGE: 7 
DATE: 2/28/2022 
  
 
When a new attacher, such as a broadband Internet service provider, seeks access to a pole, it is 
necessary to evaluate whether adding the attachment will be safe and whether there is room for it. In 
many cases, existing attachments must be moved to make room for the new attachment. In some 
cases, it is necessary to install a larger pole to accommodate a new attachment.
49
 
 
Except for certain small cell wireless facilities, attachments of cable and telecommunications carrier 
facilities to utility poles owned by a municipal electric utility are not regulated at the state or federal 
level. 
 
In 2021, the Legislature provided for a promotional rate of $1 per wireline attachment per pole, per year 
for any new attachment necessary to make broadband Internet service available to an unserved or 
underserved end user within a municipal electric utility service territory. This rate began July 1, 2021, 
and ends July 1, 2024.
50
 
 
Under this promotional program, if a municipal electric utility is required to replace a utility pole due to a 
broadband provider’s attachment, the municipal electric utility may require the broadband provider to 
reimburse all reasonable costs attributable to the new attachment, minus the salvage value of the pole. 
A utility cannot require pole replacement to accommodate the broadband provider’s pole attachment 
unless it is necessary to comply with applicable engineering and safety standards. Additionally, if the 
pole replacement is necessary to correct an existing violation, to bring the pole into compliance with 
changes in applicable standards, or because the pole is at the end of its useful life, the replacement 
cost may not be passed on to the broadband provider.
51
 
 
Effect of Proposed Changes 
 
The bill authorizes the Office to reimburse eligible applicants for certain pole replacement costs 
incurred in the installation or deployment of infrastructure to support the provision of broadband Internet 
service to customers in an unserved area. The same entities eligible to apply for funding under the 
grant program are eligible to apply for reimbursement of pole replacement costs. 
 
The bill provides that, for purposes of reimbursement under the bill, pole replacement costs are the 
actual costs incurred by an eligible applicant: 
 To remove and dispose of one or more existing poles that are owned by an electric utility as 
defined in s. 366.02(2), a communications services provider as defined in s. 366.02(5), a cable 
television operator, or a local exchange carrier and that are used in whole or in part to distribute 
electricity or provide wireline communications service; 
 To purchase and install one or more replacement poles; and 
 To transfer to such replacement pole or poles any facilities previously attached to the pole or 
poles that were removed and replaced. 
 
The bill provides that these pole replacement costs are eligible for reimbursement if the costs are 
actually incurred by an eligible applicant to install or deploy infrastructure to support the provision of 
broadband Internet service to customers in an unserved area and: 
 Federal or state funds have not been awarded to a broadband Internet service provider to install 
or deploy infrastructure to support the provision of broadband Internet service to customers in 
the same area; and 
 The applicant has not applied for any other federal or state funds to install or deploy 
infrastructure to support the provision of broadband Internet service to customers in the same 
area. 
 
                                                
49
 FCC-CIRC1808-03 at 4-5. 
50
 S. 288.9963, F.S. 
51
 Id.  STORAGE NAME: h1543d.COM 	PAGE: 8 
DATE: 2/28/2022 
  
Under these provisions of the bill, an entity may not receive reimbursement funds if it has been 
awarded or has applied for funds under the grant program to deploy broadband Internet service to the 
same area.   
 
The bill requires that applications for reimbursement of pole replacement costs must provide 
information sufficient to establish the actual amount of the costs incurred and eligible for reimbursement 
and such other information as required by the Office. Applications must be submitted in a form 
specified by the Office. 
 
The bill requires the Office, by January 1, 2023, and each year thereafter, to publish on its website and 
provide to the Governor, the President of the Senate, and the Speaker of the House of 
Representatives, a list of all reimbursement applications received during the previous fiscal year. For 
each application, the Office must provide: 
 The reimbursement amounts requested; 
 The reimbursement amounts awarded, if any; and  
 To the extent available, the number of end-use locations, by customer class, to which 
broadband Internet service has been made available through pole replacements for which 
reimbursement was provided. 
 
The bill requires DEO to adopt implementing rules, which may specify maximum annual reimbursement 
amounts per applicant and maximum reimbursement amounts per eligible pole replacement. 
 
B. SECTION DIRECTORY: 
Section 1 Amends s. 288.9961, F.S., relating to promotion of broadband adoption and the Florida 
Office of Broadband. 
 
Section 2 Creates s. 288.9964, F.S., relating to reimbursement of certain pole replacement costs. 
 
Section 3 Provides an effective date. 
 
II.  FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 
 
A. FISCAL IMPACT ON STATE GOVERNMENT: 
 
1. Revenues: 
None. 
 
2. Expenditures: 
The bill authorizes reimbursement of certain pole replacement costs, based on the availability of 
funds. DEO will incur expenses to conduct rulemaking as required by the bill. 
 
B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 
 
1. Revenues: 
None, 
 
2. Expenditures: 
None. 
 
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: 
Reimbursement of eligible pole replacement costs, if funded, will lower the costs for broadband service 
providers to extend broadband service to unserved areas in the state. This may encourage the 
extension of service to such areas, providing greater access to broadband service in those areas.  STORAGE NAME: h1543d.COM 	PAGE: 9 
DATE: 2/28/2022 
  
 
D. FISCAL COMMENTS: 
None. 
 
III.  COMMENTS 
 
A. CONSTITUTIONAL ISSUES: 
 
 1. Applicability of Municipality/County Mandates Provision: 
Not Applicable. This bill does not appear to affect county or municipal governments 
 
 2. Other: 
None. 
 
B. RULE-MAKING AUTHORITY: 
The bill requires DEO to adopt rules to implement the provisions of the bill. 
 
C. DRAFTING ISSUES OR OTHER COMMENTS: 
None. 
 
IV.  AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES 
On February 28, 2022, the Commerce Committee adopted a proposed committee substitute (PCS) for the bill 
and reported the bill favorably as a committee substitute. The PCS: 
 Removed specific appropriations from the bill; 
 Provided that reimbursements are subject to availability of funds; 
 Expanded the field of potential applicants to include all broadband Internet service providers, 
regardless of the technology used to provide the service; 
 Provided that an applicant may not be reimbursed for costs incurred to deploy broadband Internet 
service to a particular area if it has been awarded or has applied for other state or federal funds to 
support the provision of broadband Internet service to customers in the same area; 
 Modified the bill’s reporting requirements; and 
 Required DEO to adopt implementing rules. 
 
This analysis is drafted to the committee substitute as approved by the Commerce Committee.