GREEN SHEET REDIGEST
HB 700 2024 Regular Session Deshotel
UTILITIES: Provides relative to broadband.
DIGEST
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 shall be made on a
fixed-amount subaward basis, consistent with NTIA's Tailoring the Application of the
Uniform Guidance Policy Notice, and an initial 10% disbursement shall be made available
immediately upon entering into a subgrantee agreement. Provides that the next 10% of the
subgrant award shall be provided based on provider certification and the office's verification
that 10% of the eligible locations have been reached. Provides that the remaining
disbursements shall be given at the thresholds of completion of 35%, 60%, 85%, and the
final 100%. Provides that the final disbursement be given 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. Provides that the office shall
have the authority to disburse on any basis that may be necessary to effectuate option 2.4,
Subgrantee Option for Alternative Initial LOC or Performance Bond Percentage made
available in the BEAD Letter of Credit Waiver issued by NTIA on November 1, 2023, and
the office shall give full effect to that option as a means of enabling a subgrantee to satisfy
the GUMBO 2.0 letter of credit requirement.
Present law provides relative to a grant recipient failing 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. Further defines the term "default or otherwise fail to fulfill".
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, nondeployment, that
will allow eligible parties that include but are not limited to state agencies, nonprofits,
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
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Prepared by Xavier Alexander. Sub-Agency of the U.S. Dept. of Commerce. Provides that 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 and spent within the
maximum timelines allowed by NTIA.
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. 51:2370.33(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.
The House Floor Amendments to the engrossed bill:
1. Make technical changes.
2. Clarify that the office of broadband and connectivity has the authority to collect
data from winners on the location of new broadband infrastructure deployed
through GUMBO funding and existing water, sewer, or gas infrastructure in the
path of excavation funded through GUMBO.
3. Add that a GUMBO winner may enter into a cooperative endeavor agreement
with a participating water, sewer, or gas system to expedite the construction of
broadband projects.
4. Exempt certain broadband providers from liability or penalty from collecting,
providing, or facilitating the transfer of data outlined in proposed law.
5. Provide for certain data outlined in proposed law to be confidential and an
exception from present law, Public Records Law.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the reengrossed bill
1. Remove the authority of the office to collect data from GUMBO winners on the
location of new broadband infrastructure deployed through GUMBO funding and
existing water, sewer, or gas infrastructure in the path of excavation funded
through GUMBO.
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Prepared by Xavier Alexander. 2. Remove exemptions from certain broadband providers from liability or penalty
from collecting, providing, or facilitating the transfer of mapping data of certain
infrastructure.
3. Remove exception from Public Records Law for the data collected or provided
in accordance with proposed law in infrastructure owned, operated, leased, or
otherwise used by an internet service provider or telecommunication provider.
4. Provide that GUMBO 2.0 awards shall be made on a fixed-amounts subaward
basis and provides for disbursements based on certain thresholds of completion.
5. Defines certain terms including "default or otherwise fail to fulfill".
6. Make technical change.
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Prepared by Xavier Alexander.