DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 700 Engrossed 2024 Regular Session Deshotel
Abstract: Provides relative to broadband.
Present law provides for the mapping areas for broadband service.
Proposed law adds that to expedite the construction of broadband projects throughout this state, the
office of broadband and connectivity (office) has the authority to collect data from GUMBO 2.0,
GUMBO 3.0, and GUMBO 4.0 winners on the location of new broadband and existing utility
infrastructure. Data shall be provided to the office in a manner identified to all participants, and may
include but not be limited to water, sewer, gas, and voice and data services.
Present law provides that reimbursements of eligible costs shall be made by percentage of total
project costs expended: 10%, 35%, 60%, 85%, and the final 15% payment shall not be paid without
an approved completion report. Invoice for final payment shall be submitted within 90 days of a
completion date. All invoices are subject to audit for three years from the completion date.
Proposed law deletes present law and adds that GUMBO 2.0 awards will be made on a fixed-award
subgrant basis, following all requirements of NTIA's modifications to the Uniform Guidance as
provided by final rule, with an initial 10% disbursement made upon final grant issuance. The next
10% of the subgrant award shall be provided based on provider certification and the office's
verification that ten percent of the eligible locations have been reached. The remaining
disbursements shall be given at the thresholds of completion of 35%, 60%, 85%, and the final 100%
provided only after verification of 100% deployment to eligible locations, all within the mandatory
48 months maximum deployment timeline or another shorter timeline certified by the applicant.
Proposed law provides that the office will only disburse funds for completed deployments that
comply with the terms included in the successful application and will withhold funds for failure to
do so.
Present law provides for if a grant recipient fails to perform.
Proposed law adds that any GUMBO 2.0 subgrantee also subject to deployment obligations
elsewhere in this state, including from programs such as the Rural Digital Opportunity Fund, the
Enhanced Alternative Connect America Model, the Rural Development Broadband ReConnect
Program, or any other similar program included in the BEAD deduplication process, must make an
enforceable commitment as part of its GUMBO 2.0 subgrant agreement not to default or otherwise
fail to fulfill any such deployment obligation in this state. Proposed law provides that the penalty for breach of this commitment shall be, as reimbursement
for funding that could have been awarded but for other federal program funding, payment to the state
in the amount equal to the total investment cost of all defaulted locations, as measured by the
Eligible Entity tool provided to the state by NTIA.
Proposed law provides that in the event there are remaining GUMBO 2.0 funds after the obligation
of infrastructure funds, the office shall run a grant program, non-deployment, that will allow eligible
parties that include but are not limited to state agencies, non-profits, for-profits, academic
institutions, and planning commissions to utilize these funds to help address challenges in economic
development, workforce development, healthcare, cybersecurity, agriculture, and other sectors and
industries of importance to the state of Louisiana, as determined by approval of Volume 2 of Initial
Proposal from the office and the IIJA, the BEAD Program, and the NOFO, with an obligation
deadline of these funds to be completed no later than Dec. 12, 2024. This program will be
designated as "Granting Unserved Municipalities Broadband Opportunities 3.0" and the office will
receive the authority to create appropriate rules and scoring criteria.
Proposed law provides that the office shall have the authority to develop the rules, scoring criteria,
and eligibility in the execution of the State's First Digital Opportunity Plan, pending approval from
the National Telecommunications and Information Administration, a Sub-Agency of the United
States Department of Commerce. Eligible parties shall include but not be limited to state agencies,
nonprofits, for-profits, academic institutions, and planning commissions. This program will be
designated as "Granting Unserved Municipalities Broadband Opportunities 4.0".
The funds for GUMBO 2.0 outlined in proposed law are to be obligated by Dec.12, 2024 and spent
by Dec. 31, 2028.
The funds for GUMBO 3.0 outlined in proposed law are to be obligated by Dec. 12, 2024 and to be
spent by Dec. 31, 2028.
The funds for GUMBO 4.0 outlined in proposed law are to be spent by March 1, 2029.
(Amends R.S. 51:2370.32; Adds R.S. 51:1363.1(A)(7), 2370.33(E), 2370.41, and 2370.51)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the original bill:
1. Make technical changes.
2. Add that the office of broadband and connectivity has the authority to collect data from
GUMBO 2.0, GUMBO 3.0, and GUMBO 4.0 winners on the location of new broadband
and existing utility infrastructure.
3. Add that eligible parties for GUMBO 4.0 shall include but not be limited to state
agencies, nonprofits, for-profits, academic institutions, and planning commissions.