*HB1277.1*
January 18, 2024
HOUSE BILL No. 1277
_____
DIGEST OF HB 1277 (Updated January 16, 2024 12:58 pm - DI 101)
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). 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 (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 in awarding subgrants
for the deployment of a broadband network using program funds, the
office may not exclude cooperatives, nonprofit organizations,
public-private partnerships, private companies, public or private
universities, public utility districts, or local governments from
eligibility for those funds, as set forth in the Act. Provides that the final
proposal submitted by the office to the National Telecommunications
Information Administration (NTIA) with respect to the program must
include 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.
January 18, 2024, amended, reported — Do Pass.
HB 1277—LS 6583/DI 101 January 18, 2024
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) This chapter does not apply to subgrants awarded by the
6 Indiana broadband office under the federal Broadband Equity,
7 Access, and Deployment Program established under 47 U.S.C.
8 1702(b).
9 SECTION 2. IC 4-4-38.5-11, AS AMENDED BY P.L.158-2021,
10 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 UPON PASSAGE]: Sec. 11. (a) The rural broadband fund is
12 established for the purpose of:
13 (1) awarding grants under:
14 (A) this chapter after July 31, 2019; and
15 (B) IC 4-4-38 before August 1, 2019;
16 (2) providing financial assistance under the program established
17 by the office under section 10.5 of this chapter for expenses
HB 1277—LS 6583/DI 101 2
1 described in section 10.5(b) of this chapter incurred before July
2 1, 2025;
3 (3) providing funding for the creation and annual maintenance of
4 the public broadband portal created and administered by the
5 office under IC 4-4-41-8; and
6 (4) awarding grants under the Indiana broadband connectivity
7 program under IC 4-4-41.
8 (b) The office shall administer the fund.
9 (c) The fund consists of:
10 (1) money appropriated by the general assembly;
11 (2) money received by the office from federal grants or programs
12 for broadband infrastructure, other than money received by the
13 state under the federal Broadband Equity, Access, and
14 Deployment Program established under 47 U.S.C. 1702(b);
15 and
16 (3) donations, gifts, and money received from any other source,
17 including transfers from other funds or accounts.
18 (d) The treasurer of state shall invest the money in the fund not
19 currently needed to meet the obligations of the fund in the same
20 manner as other public funds may be invested.
21 (e) Money in the fund at the end of a state fiscal year does not revert
22 to the state general fund but remains in the fund to be used exclusively
23 for the purposes of this chapter and IC 4-4-38.
24 SECTION 3. IC 4-4-38.6 IS ADDED TO THE INDIANA CODE
25 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
26 UPON PASSAGE]:
27 Chapter 38.6. State Administration of Federal Broadband
28 Equity, Access, and Deployment Program
29 Sec. 1. As used in this chapter, "act" refers to the federal
30 Infrastructure Investment and Jobs Act (P.L. 117-58), including
31 regulations and guidance issued under that act.
32 Sec. 2. (a) As used in this chapter, "BEAD NOFO" refers to the
33 Notice of Funding Opportunity for the federal Broadband Equity,
34 Access, and Deployment Program, as issued by NTIA on May 12,
35 2022, pursuant to 47 U.S.C. 1702(e)(1)(A)(i).
36 (b) The term includes any additional guidance issued by NTIA
37 with respect to the program after the issuance of the notice
38 described in subsection (a).
39 Sec. 3. As used in this chapter, "final proposal" refers to the
40 office's final proposal (as described in 47 U.S.C. 1702(e)(4))
41 submitted to NTIA.
42 Sec. 4. As used in this chapter, "initial proposal" refers to the
HB 1277—LS 6583/DI 101 3
1 office's initial proposal (as described in 47 U.S.C. 1702(e)(3))
2 submitted to and approved by NTIA.
3 Sec. 5. As used in this chapter, "NTIA" refers to the National
4 Telecommunications Information Administration, United States
5 Department of Commerce.
6 Sec. 6. As used in this chapter, "office" refers to the Indiana
7 broadband office in its capacity as an eligible entity (as defined in
8 47 U.S.C. 1702(a)(2)(F)) under the act.
9 Sec. 7. As used in this chapter, "program" refers to the federal
10 Broadband Equity, Access, and Deployment Program established
11 under 47 U.S.C. 1702(b).
12 Sec. 8. As used in this chapter, "subgrantee" has the meaning
13 set forth in 47 U.S.C. 1702(a)(2)(N).
14 Sec. 9. (a) Subject to subsection (b), and to the extent not
15 preempted by federal law, the office shall administer the program
16 in Indiana in compliance with the following:
17 (1) All mandatory provisions set forth in the act with respect
18 to the program.
19 (2) All mandatory provisions set forth in the BEAD NOFO
20 with respect to the program.
21 (3) Before awarding a subgrant to an eligible broadband
22 service provider during any round of funding under the
23 program, the office shall submit to the budget committee for
24 review the proposed amount and terms of the subgrant.
25 (4) In awarding subgrants for the deployment of a broadband
26 network using program funds, the office may not exclude
27 cooperatives, nonprofit organizations, public-private
28 partnerships, private companies, public or private
29 universities, public utility districts, or local governments from
30 eligibility for those funds, as set forth in 47 U.S.C.
31 1702(h)(1)(A)(iii).
32 (b) The final proposal submitted by the office to NTIA must
33 include the specifications for the required low cost broadband
34 service option that are set forth in the office's initial proposal, as
35 submitted to and approved by NTIA.
36 Sec. 10. To the extent that this chapter conflicts with a provision
37 of any other Indiana law, this chapter prevails.
38 SECTION 4. An emergency is declared for this act.
HB 1277—LS 6583/DI 101 4
COMMITTEE REPORT
Mr. Speaker: Your Committee on Utilities, Energy and
Telecommunications, to which was referred House Bill 1277, has had
the same under consideration and begs leave to report the same back
to the House with the recommendation that said bill be amended as
follows:
Page 1, line 5, delete "Except for section 4 of this chapter, this" and
insert "This".
Page 1, delete lines 9 through 17.
Page 2, delete lines 1 through 14.
Page 3, delete lines 20 through 21.
Page 3, line 22, delete "4." and insert "3.".
Page 3, line 25, delete "5." and insert "4.".
Page 3, line 28, delete "6." and insert "5.".
Page 3, line 31, delete "7." and insert "6.".
Page 3, line 34, delete "8." and insert "7.".
Page 3, line 37, delete "9." and insert "8.".
Page 3, line 37, delete "means an eligible" and insert "has the
meaning set forth in 47 U.S.C. 1702(a)(2)(N).".
Page 3, delete lines 38 through 40.
Page 3, line 41, delete "10. (a) Subject to subsections (b) and (c),"
and insert "9. (a) Subject to subsection (b),".
Page 4, between lines 9 and 10, begin a new line block indented and
insert:
"(4) In awarding subgrants for the deployment of a
broadband network using program funds, the office may not
exclude cooperatives, nonprofit organizations, public-private
partnerships, private companies, public or private
universities, public utility districts, or local governments from
eligibility for those funds, as set forth in 47 U.S.C.
1702(h)(1)(A)(iii).".
Page 4, delete lines 10 through 15.
Page 4, line 16, delete "(c)" and insert "(b)".
Page 4, line 17, delete "following:" and insert "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.".
Page 4, delete lines 18 through 22.
Page 4, line 23, delete "11." and insert "10.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
HB 1277—LS 6583/DI 101 5
(Reference is to HB 1277 as introduced.)
SOLIDAY
Committee Vote: yeas 11, nays 0.
HB 1277—LS 6583/DI 101