GREEN SHEET REDIGEST
HB 653 2023 Regular Session Deshotel
UTILITIES: Provides relative to Granting Unserved Municipalities Broadband
Opportunities.
DIGEST
Proposed law establishes the "Granting Unserved Municipalities Broadband Opportunities
2.0" (GUMBO 2.0) program.
Proposed law defines certain terms including "broadband service", "eligible grant recipient",
"project", "infrastructure", "shapefile", "underserved location", and "unserved location".
Proposed law authorizes the office of broadband development and connectivity (office) to
use up to one percent of appropriated funds to administer GUMBO 2.0. Proposed law further
authorizes the office to use one percent of funds to hire 3rd party contractors to administer
the program. Proposed law prohibits the use of the funds for compensation of any new or
existing positions within the office.
Proposed law gives the office the authority and responsibility to promulgate rules at least 90
days prior to a grant round and provides that the rules must be consistent with state law and
federal guidelines pertaining to the Infrastructure Investment and Jobs Act and proposed law.
Proposed law exempts the GUMBO 2.0 program from the provisions of present law, the La.
Procurement Code and the Public Bid Law.
Proposed law provides that, unless stated otherwise in proposed law, all records related to
GUMBO 2.0 are public records, but a broadband service provider's trade secret and
proprietary information are not subject to the Public Records Law.
Proposed law requires the office to treat any information submitted with a protest that is not
publicly available as confidential.
Proposed law requires grant recipients to provide matching funds. Requires a grant recipient
to contribute from its own funds a minimum of 25% of the total estimated cost of the project.
Provides that a written waiver to this requirement can be granted by the office.
Proposed law authorizes a local government to contribute in-kind contributions for an
eligible project. Provides that such contributions shall not be considered a partnership for
providing a covered service in accordance with present law, the Local Government Fair
Competition Act.
Proposed law authorizes the office to promulgate rules with regard to the grant process.
Proposed law requires the challenge process start before a future grant round is launched.
Provides that the state is required to use the Broadband DATA Maps and the National
Telecommunications and Information Administration's (NTIA), Broadband Equity, Access,
and Deployment (BEAD) Model Challenge process to conduct the process. Proposed law
requires broadband service providers to submit challenges within 30 days of mapping
information being released publicly.
Proposed law provides that NTIA is the final arbiter of availability challenges.
Proposed law requires the office to keep confidential challenge details.
Proposed law requires that the office keep a grant round open for a period of at least 30 days
but not longer than 60 days.
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Prepared by Xavier Alexander. Proposed law requires the office to identify eligible locations for grant funding using the
Broadband DATA Map.
Proposed law requires the office to release eligible locations at least 30 days prior to the start
of a grant round.
Proposed law requires application information used for scoring purposes to be made publicly
available, subject to confidentiality protections provided in proposed law. Provide such
information is required to be posted on the office's website or the division of administration's
website for at least seven days prior to the grant award.
Proposed law requires a grant applicant to define its proposed project area. Proposed law
requires the office to provide additional points for applications that will serve areas
determined to be most in need due to the high cost to serve or economic or other needs of the
community.
Proposed law requires the office to promulgate application minimum requirements and
scoring rules at least 90 days prior to a grant round.
Proposed law provides the procedure for a party to protest an award and requires such party
to do so within 14 days. Requires a party that submits a protest to attest that the information
in the protest is accurate and that the protest is submitted in good faith.
Proposed law allows a local governing authority to submit to the office an objection to any
provider that seeks to deploy broadband service in the local governing authority's area if the
provider has received a letter grade rating of "D" or "F" from the Better Business Bureau.
Proposed law gives the director of the office the authority to settle and resolve a protest.
Proposed law requires the director of the office to provide a written decision, within 14
business days, when a protest cannot be resolved by mutual agreement. Proposed law
provides the requirements for the written decision and requires the decision to be provided
to a party to the protest immediately. Proposed law provides that the office's decision is final
and conclusive with exceptions.
Proposed law allows a party a protest to file an appeal with the commissioner of
administration within 14 business days. Proposed law gives the commissioner the authority
to review and determine any appeal by a party to the protest.
Proposed law allows a party to the protest to file an appeal, within seven business days of
receipt of a decision from the commissioner, with the 19th Judicial District Court. Proposed
law also gives a party to the protest the right to appeal to the 1st Circuit Court of Appeal or
the La. Supreme Court.
Proposed law requires the office to conduct an implementation meeting with a grant recipient
within 30 days of execution of a grant agreement.
Proposed law requires a grant recipient to submit to the office an annual report for each
funded project during an agreement period. Proposed law provides requirements for the
report. Proposed law further requires an entity receiving federal funds for broadband
infrastructure development to submit to the office a quarterly report for each project during
an agreement period and the necessary information for the report.
Proposed law requires the office to submit annually, on or before Sept. 30th, a report to the
House and Senate commerce committees and the Joint Legislative Committee on Technology
and Cybersecurity. Proposed law provides the necessary elements for the report.
Proposed law requires eligible grant recipients to submit a quarterly report for each funded
project located in the state and provides the required elements for the report. Proposed law
provides that if a grant recipient does not submit quarterly reports for two consecutive
quarters, the office may consider locations within the awarded area unserved.
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Prepared by Xavier Alexander. Proposed law provides that the division of administration shall be the designated agency for
receipt and disbursement of state and federal funds for broadband expansion.
Proposed law provides that reimbursements shall be made at certain points of a project.
Proposed law provides that the final 15% of a grant shall not be paid without an approved
completion report.
Proposed law provides that a grant recipient forfeits the amount of a grant if the recipient
fails to perform, in material respect, its obligations. Proposed law provides that grant
agreements shall last, at a minimum, for the duration of broadband project construction and
five years after construction completion.
Proposed law provides that a grant recipient is not required to forfeit the amount of a grant
if the recipient fails to perform due to circumstances beyond its control.
Proposed law provides that a grant recipient could be required to reimburse the state the
actual cost to finish a project if the recipient fails to complete the project in a material
respect.
Present law, the Public Records Law, provides that unless there is an exception, records are
subject to public review and examination.
Present law provides exceptions to the Public Records Law.
Proposed law creates an exception to the Public Records Law for the limitations contained
in proposed law, R.S. 51:2370.25 and 2370.27, for information identified as confidential,
trade secret, or proprietary.
Proposed law authorizes the La. State Law Institute to make certain technical changes to the
law regarding GUMBO 1.0 to conform with proposed law.
(Adds R.S. 51:2370.21-2370.33; Amends R.S. 44:4.1(B)(35))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on House and
Governmental Affairs to the engrossed bill:
1. Add a citation of proposed law to the list of exceptions to the Public Records
Law for the proposed law limitation for a broadband service provider's trade
secret and proprietary information.
The House Floor Amendments to the reengrossed bill:
1. Make technical changes.
2. Revise certain definitions, deletes certain terms, and defines new terms for the
purposes of proposed law.
3. Revise the broadband availability challenge process.
4. Require rules relative to GUMBO 2.0 be promulgated that are consistent with the
requirements promulgated by the assistant secretary for Communications and
Information of the U.S. Dept. of Commerce.
5. Relative to the application process, allow a governing authority to object to a
grant application if the broadband service provider has received a letter grade of
"D" or "F" from the Better Business Bureau.
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Prepared by Xavier Alexander. 6. Prohibit the office of broadband from requiring a grantee to deploy broadband
service to any subsequently identified broadband-serviceable locations in the
grantee's funded project area.
7. Increase from seven days to 14 business days the time period within which the
director of the office to issue a decision in the event of a protest of a grant award.
8. Increase from 10 days to 14 days the time period within which a party to the
protest can file an appeal with the commissioner of administration.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the re-reengrossed bill
1. Makes technical changes.
2. Removes definition of "high-cost area".
3. Changes the term "eligible project" to "project".
4. Removes the 90 day period to conduct the challenges process.
5. Provides that any additional funding or timelines to deploy subsequently
identified broadband serviceable locations shall be determined in a supplemental
grant agreement.
6. Requires an entity that receives federal funds for broadband infrastructure and
development to submit a quarterly report for each project during an agreement
period.
7. Provides that a grantee shall submit monthly reports for each funded period and
the reports shall include minimum criteria.
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Prepared by Xavier Alexander.