LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7079 NOTE PREPARED: Jan 9, 2021
BILL NUMBER: HB 1413 BILL AMENDED:
SUBJECT: Rural Broadband Fund.
FIRST AUTHOR: Rep. Manning BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State
X DEDICATED
FEDERAL
Summary of Legislation: The bill provides that eligible rural employers qualify for loans under the Rural
Broadband Fund. It provides that the Office of Community and Rural Affairs (OCRA) shall establish
procedures for awarding grants to eligible rural employers. It specifies that OCRA shall act on an application
not later than 30 days after receipt of an eligible rural employer's application.
Effective Date: July 1, 2021.
Explanation of State Expenditures: The bill could increase expenditures from the nonreverting Rural
Broadband Fund as it expands the definition of “eligible broadband project” to include a project for a rural
employer to access or upgrade to eligible broadband service, including construction costs, which improve
the employer’s employment operations. It could increase workload for OCRA to establish procedures and
priorities for the awarding of grants.
The Rural Broadband Fund consists of money appropriated from the General Assembly and money
transferred from other funds. Up to $100 M may be transferred from the Next Level Connections Fund to
the Rural Broadband Fund. The fiscal impact of the bill will depend on legislative and administrative actions.
Through two rounds of funding, OCRA has awarded $71 M in grants.
The bill requires OCRA to notify an eligible rural employer applicant within 30 days of receipt of an
application (or resubmission of an incomplete application) of the determination on the award of the grant.
This provision will have an indeterminate impact on the timeline of OCRA’s broadband grant program.
Currently, the grant process for grants awarded to broadband service providers is roughly 5 months long and
includes deadlines for letters of intent, challenges, application submissions, and the date of selection.
HB 1413 1
The process was extended to 10 months long in CY 2020 due to COVID-19.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Office of Community and Rural Affairs.
Local Agencies Affected:
Information Sources: HEA 1001-2019
https://events.in.gov/event/gov-holcomb-announces-more-than-51-million-for-broadband-expansion
https://www.in.gov/ocra/nlc/2019-round-1-awards/
https://www.in.gov/ocra/nlc/2020-round-2-awards/
https://www.in.gov/ocra/nlc/how-to-apply/
Fiscal Analyst: Heather Puletz, 317-234-9484.
HB 1413 2


Statutes affected:
1. Introduced House Bill (H): 4-4-38.5-2, 4-4-38.5-9, 4-4-38.5-10, 4-4-38.5-12