SB 377 – Broadband Development
Authored by Sen. Andy Zay (R-Huntington)
Sponsored by Rep. Ed Soliday (R-Valparaiso)

Establishes 1) Indiana broadband expansion fund for deposit and distribution of federal broadband funding, 2) the Indiana Broadband Connectivity Program and 3) the Indiana Broadband Adoption Program. The rural broadband fund provision is similar to the existing statute except that it amends the priorities for eligible areas, as well as the priorities for eligible projects to elevate those that will serve more households at a lower cost to the state.

The connectivity program permits residents and businesses to submit their address to an online portal to report that they have slow broadband. Then, providers may bid on a grant to service those addresses.

Via the adoption program, the state will provide financial assistance to an individual who reports through the public broadband portal that internet connectivity or broadband internet connectivity is available at the individual’s address but they are unable to afford the service.

HB 1449 – Broadband Development
Authored by Rep. Soliday
Sponsored by Sen. Eric Koch (R-Bedford), Sen. Mark Messmer (R-Jasper) and Sen. Andy Zay (R-Huntington)

This bill specifies the following priorities for the awarding of grants from the fund after June 30, 2021. Extending eligible broadband service to rural areas (for which only available internet connections are at actual speeds of less than 50 mbps downstream), as well as to public school corporation buildings and rural health clinics (for which only available internet connections are at actual speeds of less than 1,000 mbps downstream). Also extends eligible broadband service so to ensure that every resident Indiana student less than 23 years of age has at the student’s residence an access point providing such connection. Finally, the bill establishes the Indiana Broadband Connectivity Program, under which the Indiana Office of Community and Rural Affairs (OCRA) must establish a public broadband portal. Through the portal, an individual or business may report that minimum broadband internet is unavailable to them. Grants may be awarded specifically to connect those individuals and businesses.

Chamber position: Support for both

The latest: On Monday, the House Utilities, Energy and Telecommunications Committee heard SB 377, but held the bill to amend and vote at a future hearing. Then on Thursday, the Senate Utilities Committee voted unanimously to recommend passage of HB 1449 (9-0). However, that bill has been recommitted to the Senate Appropriations Committee where it awaits a hearing date.

Indiana Chamber action/commentary: This week was a big week for broadband. The two “leading” broadband funding bills were heard in committee and took the next step towards passage. As a reminder, the House passed a version of the budget bill (HB 1001) that calls for $250 million in new broadband funding during the next biennium.

Representative Soliday is adamant that one or both of the bills heard this week will pass. However, he hopes that the two bills will resemble each other once they get through their respective second houses. He also mentioned a couple times this week (i.e. when his committee heard SB 377 and when he introduced HB 1449 in the Senate committee) that the process of finalizing language is stymied somewhat by the ever-evolving activity in Washington, D.C. Things are coming into focus a bit more after the passage of the fourth stimulus bill on Wednesday, which could send upwards of $3 billion to Indiana that the state would be permitted to use for broadband expansion.

The Indiana Chamber testified in favor of both bills during their respective hearings. The Chamber’s preference is for designating the largest portion of broadband funds towards the connectivity program – arguing in testimony that 1) it offers the most efficient use of state funds by guaranteeing 100% adoption by residents and businesses who currently lack access to high-speed broadband, and (2) the status quo has, to date, failed to produce impressive results both in terms of accomplishing new connectivity opportunities and/or adoption rates.

Regardless of which bill ultimately passes, it is likely that OCRA will be precluded from funding projects proposed by satellite internet service providers. This was an interesting twist to the bill as satellite technology holds a lot of promise if the goal is to expand high-speed broadband throughout Indiana – especially to our rural communities.

While we wait to see where things land, it is important to note that high-speed broadband expansion has been a top Chamber legislative priority for over a decade. Both SB 377 and HB 1449 are giant steps in the right direction to ensure access to and adoption of high-speed broadband, regardless of the city, town or community in which an individual or business resides.

Resource: Adam H. Berry at (317) 264-6892 or email: aberry@indianachamber.com