Senate Bill 377 (Broadband Development), authored by Sen. Andy Zay (R-Huntington), establishes the Indiana broadband expansion fund for deposit and distribution of federal broadband funding and calls for an appropriation of $100,000,000 to the fund, which will be distributed proportionally to the (1) rural broadband fund (60%), (2) the connectivity program (30%) and (3) the adoption program (10%).
(1) 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.
(2) 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.
(3) The adoption program, through which the state will provide financial assistance to an individual who reports through the public broadband portal that: (1) Internet connectivity or broadband Internet connectivity is available at the individual’s address; but (2) the individual is unable to afford the service.
The Chamber testified in favor of SB 377, emphasizing the important policy shift away from the current broadband grant program and towards funding last mile connectivity to (1) end users who proactively request service and (2) those who have access to high speed broadband but are unable to afford adoption of it.
The Chamber highlighted the 2020 report published by the Office of Community and Rural Affairs that showed that nearly one year after $28.4 million in grants were awarded less than 3% of residents who should be served have been connected to high speed broadband. Further, adoption rates stand at 43% in the census blocks where a network has been deployed. We made these points to highlight concerns with the existing program and reiterate support for the state to champion a broadband policy in favor of businesses and residents who want (and will adopt) broadband. The Chamber argues that an efficient use of taxpayer dollars is focusing more on adoption than access.
We concluded testimony by stating that passing this bill would be a signal to everyone in America seeking a new place to live, work, play and worship that they can move to Indiana with confidence that they can access and adopt high speed broadband – regardless of the city, town or community in which their family lands.
