Introduced Version
HOUSE BILL No. 1277
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-4.
Synopsis: State administration of federal BEAD program. Specifies
that the existing Indiana statute concerning the awarding of grants by
the office of community and rural affairs for certain eligible broadband
projects does not apply to subgrants awarded by the Indiana broadband
office (office) under the federal Broadband Equity, Access, and
Deployment (BEAD) Program (program), except for the definition of
"eligible broadband service provider" set forth in the existing statute.
Establishes a new Indiana Code chapter governing the administration
of the program by the office. Requires the office to administer the
program in Indiana in compliance with all mandatory provisions set
forth in: (1) the federal Infrastructure Investment and Jobs Act; and (2)
the BEAD Notice of Funding Opportunity (BEAD NOFO); with
respect to the program. Provides that before awarding a subgrant to an
eligible broadband service provider during any round of funding under
the program, the office shall submit to the budget committee for review
the proposed amount and terms of the subgrant. Provides that the
following are not eligible to compete for a subgrant under the program
or to otherwise participate as a subgrantee: (1) The state. (2) A political
subdivision of the state. (3) Any other public sector entity. Provides
that the final proposal submitted by the office to the National
Telecommunications Information Administration (NTIA) with respect
to the program must include the following: (1) A statement that the
office will not waive the prohibition against: (A) the state; (B) a
political subdivision of the state; or (C) any other public sector entity;
competing for a subgrant under the program or otherwise participating
in the program. (2) The specifications for the required low cost
broadband service option that are set forth in the office's initial
proposal, as submitted to and approved by NTIA.
Effective: Upon passage.
Soliday
January 9, 2024, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
2024 IN 1277—LS 6583/DI 101 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1277
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-4-38.5-1, AS ADDED BY P.L.189-2019,
2 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 1. (a) This chapter applies to grants awarded
4 from the fund after July 31, 2019.
5 (b) Except for section 4 of this chapter, this chapter does not
6 apply to subgrants awarded by the Indiana broadband office under
7 the federal Broadband Equity, Access, and Deployment Program
8 established under 47 U.S.C. 1702(b).
9 SECTION 2. IC 4-4-38.5-4, AS ADDED BY P.L.189-2019,
10 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 UPON PASSAGE]: Sec. 4. (a) Subject to subsection (b), as used in
12 this chapter and in IC 4-4-38.6, "eligible broadband service provider"
13 means any company, firm, corporation, partnership, or association that:
14 (1) either:
15 (A) has been providing broadband service to at least one
16 hundred (100) residences and businesses in Indiana for at least
17 three (3) consecutive years; or
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1 (B) is:
2 (i) a corporation organized under IC 8-1-13; or
3 (ii) a corporation organized under IC 23-17 that is an electric
4 cooperative and that has at least one (1) member that is a
5 corporation organized under IC 8-1-13; and
6 (2) has demonstrated, to the satisfaction of the office:
7 (A) financial;
8 (B) technical; and
9 (C) operational;
10 capability in building and operating a broadband network,
11 according to standards for determining such capability in
12 guidelines adopted by the office under section 10 of this chapter.
13 (b) For purposes of IC 4-4-38.6 only, "office" in subsection
14 (a)(2) refers to the Indiana broadband office.
15 SECTION 3. IC 4-4-38.5-11, AS AMENDED BY P.L.158-2021,
16 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 UPON PASSAGE]: Sec. 11. (a) The rural broadband fund is
18 established for the purpose of:
19 (1) awarding grants under:
20 (A) this chapter after July 31, 2019; and
21 (B) IC 4-4-38 before August 1, 2019;
22 (2) providing financial assistance under the program established
23 by the office under section 10.5 of this chapter for expenses
24 described in section 10.5(b) of this chapter incurred before July
25 1, 2025;
26 (3) providing funding for the creation and annual maintenance of
27 the public broadband portal created and administered by the
28 office under IC 4-4-41-8; and
29 (4) awarding grants under the Indiana broadband connectivity
30 program under IC 4-4-41.
31 (b) The office shall administer the fund.
32 (c) The fund consists of:
33 (1) money appropriated by the general assembly;
34 (2) money received by the office from federal grants or programs
35 for broadband infrastructure, other than money received by the
36 state under the federal Broadband Equity, Access, and
37 Deployment Program established under 47 U.S.C. 1702(b);
38 and
39 (3) donations, gifts, and money received from any other source,
40 including transfers from other funds or accounts.
41 (d) The treasurer of state shall invest the money in the fund not
42 currently needed to meet the obligations of the fund in the same
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1 manner as other public funds may be invested.
2 (e) Money in the fund at the end of a state fiscal year does not revert
3 to the state general fund but remains in the fund to be used exclusively
4 for the purposes of this chapter and IC 4-4-38.
5 SECTION 4. IC 4-4-38.6 IS ADDED TO THE INDIANA CODE
6 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
7 UPON PASSAGE]:
8 Chapter 38.6. State Administration of Federal Broadband
9 Equity, Access, and Deployment Program
10 Sec. 1. As used in this chapter, "act" refers to the federal
11 Infrastructure Investment and Jobs Act (P.L. 117-58), including
12 regulations and guidance issued under that act.
13 Sec. 2. (a) As used in this chapter, "BEAD NOFO" refers to the
14 Notice of Funding Opportunity for the federal Broadband Equity,
15 Access, and Deployment Program, as issued by NTIA on May 12,
16 2022, pursuant to 47 U.S.C. 1702(e)(1)(A)(i).
17 (b) The term includes any additional guidance issued by NTIA
18 with respect to the program after the issuance of the notice
19 described in subsection (a).
20 Sec. 3. As used in this chapter, "eligible broadband service
21 provider" has the meaning set forth in IC 4-4-38.5-4.
22 Sec. 4. As used in this chapter, "final proposal" refers to the
23 office's final proposal (as described in 47 U.S.C. 1702(e)(4))
24 submitted to NTIA.
25 Sec. 5. As used in this chapter, "initial proposal" refers to the
26 office's initial proposal (as described in 47 U.S.C. 1702(e)(3))
27 submitted to and approved by NTIA.
28 Sec. 6. As used in this chapter, "NTIA" refers to the National
29 Telecommunications Information Administration, United States
30 Department of Commerce.
31 Sec. 7. As used in this chapter, "office" refers to the Indiana
32 broadband office in its capacity as an eligible entity (as defined in
33 47 U.S.C. 1702(a)(2)(F)) under the act.
34 Sec. 8. As used in this chapter, "program" refers to the federal
35 Broadband Equity, Access, and Deployment Program established
36 under 47 U.S.C. 1702(b).
37 Sec. 9. As used in this chapter, "subgrantee" means an eligible
38 broadband service provider that receives grant funds from the
39 office under the program to carry out activities set forth in 47
40 U.S.C. 1702(f).
41 Sec. 10. (a) Subject to subsections (b) and (c), and to the extent
42 not preempted by federal law, the office shall administer the
2024 IN 1277—LS 6583/DI 101 4
1 program in Indiana in compliance with the following:
2 (1) All mandatory provisions set forth in the act with respect
3 to the program.
4 (2) All mandatory provisions set forth in the BEAD NOFO
5 with respect to the program.
6 (3) Before awarding a subgrant to an eligible broadband
7 service provider during any round of funding under the
8 program, the office shall submit to the budget committee for
9 review the proposed amount and terms of the subgrant.
10 (b) The following are not eligible to compete for a subgrant
11 under the program or to otherwise participate in the program as
12 a subgrantee:
13 (1) The state.
14 (2) A political subdivision of the state.
15 (3) Any other public sector entity.
16 (c) The final proposal submitted by the office to NTIA must
17 include the following:
18 (1) A statement that the office will not waive subsection (b) for
19 program project selection purposes.
20 (2) The specifications for the required low cost broadband
21 service option that are set forth in the office's initial proposal,
22 as submitted to and approved by NTIA.
23 Sec. 11. To the extent that this chapter conflicts with a provision
24 of any other Indiana law, this chapter prevails.
25 SECTION 5. An emergency is declared for this act.
2024 IN 1277—LS 6583/DI 101