LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6583 NOTE PREPARED: Jan 23, 2024
BILL NUMBER: HB 1277 BILL AMENDED: Jan 18, 2024
SUBJECT: State Administration of Federal BEAD Program.
FIRST AUTHOR: Rep. Soliday BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Koch
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: The bill 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).
It establishes a new Indiana Code chapter governing the administration of the Program by the Office.
The bill 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.
It 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.
The bill 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.
It 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
HB 1277 1 broadband service option that are set forth in the office's initial proposal, as submitted to and approved by
NTIA.
Effective Date: Upon passage.
Explanation of State Expenditures: Indiana Broadband Office (Office): The bill requires the Office to
administer the federal BEAD program. The bill’s requirements are within the Office’s routine administrative
functions and should be able to be implemented with no additional appropriations, assuming near customary
agency staffing and resource levels.
Budget Committee: The bill requires the Budget Committee to review the amount and terms of a subgrant
from the Indiana Broadband Office before the subgrant can be awarded.To the extent the Budget Committee
would need to hold additional meetings, there would be additional expenditures for per diem and travel
reimbursement. Budget Committee members are entitled to a per diem of $294. An additional meeting is
estimated at $2,352 excluding mileage reimbursement.
Additional Information: The Indiana Broadband Office is administered by the Indiana Office of Technology
(IOT). The federal BEAD program provides states with funding to expand high-speed internet access by
funding planning, infrastructure development and adoption programs. Indiana was required to submit a 5-year
action plan followed by the BEAD Initial Proposal, Volume 1 and Volume 2. Each volume was presented
to the public for comment with the most recent comment period of Volume 2 ending on December 3, 2023.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Office of Technology; Budget Committee; Indiana Broadband Office;
Office of Community and Rural Affairs.
Local Agencies Affected: Corporations; municipally-owned broadband networks
Information Sources:
https://broadbandusa.ntia.doc.gov/funding-programs/broadband-equity-access-and-deployment-bead-prog
ram; https://www.in.gov/indianabroadband/.
Fiscal Analyst: Jasmine Noel, 317-234-1360.
HB 1277 2