Citations Affected: IC 4-4; IC 5-21.5 ; IC 8-1; IC 20-12; noncode.
Synopsis: Statewide broadband system. Establishes a coordinating
body to determine the feasibility of implementing a statewide
broadband network, scheduled to dissolve July 15, 2007. Establishes
the Indiana broadband development program, a separate body corporate
and politic, to be administered by the Indiana development finance
authority. The broadband development program is established to
encourage the development of affordable broadband services and
networks in underserved areas in Indiana. The broadband development
program coordinates the financing of broadband infrastructure
development and otherwise facilitates the establishment of broadband
service in underserved areas in Indiana.
Effective: Upon passage.
January 11, 2005, read first time and referred to Committee on Economic Development
January 31, 2005, reported favorably _ Do Pass.
February 3, 2005, read second time, amended, ordered engrossed.
February 4, 2005, engrossed.
February 14, 2005, returned to second reading.
February 22, 2005, reread second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration and to make an appropriation.
comprising or being functionally related and subordinate to any
project (whether manufacturing, commercial, agricultural,
environmental, or otherwise) the development or expansion of
which serves the public purposes set forth in IC 4-4-11-2;
(2) educational facility projects;
(3) child care facility projects; and
(4) broadband development projects.
(b) For purposes of the industrial development guaranty fund program, "industrial development project" includes the acquisition of land, interests in land, site improvements, infrastructure improvements (including information and high technology infrastructure (as defined in IC 4-4-8-1)), buildings, or structures, rehabilitation, renovation, and enlargement of buildings and structures, machinery, equipment, furnishings, or facilities (or any combination of these), comprising or being functionally related and subordinate to any of the following:
(1) A pollution control facility.
(2) A manufacturing enterprise.
(3) A business service enterprise involved in:
(A) computer and data processing services; or
(B) commercial testing services.
(4) A business enterprise the primary purpose of which is the operation of an education and permanent marketing center for manufacturers and distributors of robotic and flexible automation equipment.
(5) Any other business enterprise, if the use of the guaranty program creates a reasonable probability that the effect on Indiana employment will be creation or retention of at least fifty (50) jobs.
(6) An agricultural enterprise in which:
(A) the enterprise operates pursuant to a producer or growout agreement; and
(B) the output of the enterprise is processed predominantly in Indiana.
(7) A business enterprise that is required by a state, federal, or local regulatory agency to make capital expenditures to remedy a violation of a state or federal law or a local ordinance.
(8) A recycling market development project.
(9) A high growth company with high skilled jobs (as defined in IC 4-4-10.9-9.5).
(10) A broadband development project.
other than authorized users, as permitted under section 3 of this
Sec. 3. (a) This section applies only if a functioning system is deployed by the coordinating body.
(b) The system shall be made available first to authorized users. However, if the coordinating body determines at any time that the system has sufficient capacity to serve other users, the coordinating body shall permit any person to access the system, subject to subsections (c), (d), and (e). A person eligible to access the system under this section includes a commercial:
(1) telecommunications provider; or
(2) Internet service provider;
that meets any qualifications or criteria for access established by the coordinating body under subsection (e).
(c) If the coordinating body acts under subsection (b) to permit one (1) or more persons to access capacity on the system that is not needed to meet the broadband needs of authorized users, and it becomes necessary to allocate the available capacity among those persons, the coordinating body shall consider the following for each new person seeking access:
(1) Whether the person's allocated capacity on the system will be used by the person to provide broadband service to users:
(A) at a competitive rate; and
(B) within a reasonable period after the person acquires access to the system;
as determined by the coordinating body.
(2) The extent to which the person's allocated capacity on the system will be used to provide broadband service to underserved areas of Indiana.
(3) The extent to which allowing the person to access the system will contribute to the broadband service choices available to Indiana residents and businesses.
(d) The coordinating body may establish standards or other requirements for access to the system by a person other than an authorized user. However, any standards or requirements established under this subsection must be applied on a uniform and competitively neutral basis.
(e) The coordinating body shall provide access to the system under subsection (b) or (c) at a cost that does not exceed the coordinating body's costs to establish, operate, maintain, and administer the system, including any costs of upgrading the system to incorporate the best available technology, as determined by the
(f) An authorized user may not sell, lease, or license the authorized user's right to use the system described in this chapter.
authority may provide for financing or refinancing to broadband
developers and broadband operators serving underserved areas.
Sec. 2. As used in this chapter, "authority" refers to the Indiana development finance authority established in IC 4-4-11-4.
Sec. 3. As used in this chapter, "broadband developer" means a person selected by the authority to acquire, construct, develop, and create any part of the broadband infrastructure.
Sec. 4. As used in this chapter, "broadband development program" or "program" refers to the Indiana broadband development program established by section 16 of this chapter.
Sec. 5. As used in this chapter, "broadband infrastructure" includes all facilities, hardware, and software and other intellectual property used for and necessary to provide broadband services in underserved areas of Indiana, including voice, video, and data.
Sec. 6. As used in this chapter, "broadband operator" means a person selected by the authority to operate any part of the broadband infrastructure.
Sec. 7. As used in this chapter, "broadband services" includes services, including voice, video, and data, that provide capacity for transmission of more than two hundred (200) kilobits per second in at least one (1) direction regardless of the technology or medium used, including wireless, copper wire, fiber optic cable, or coaxial cable. If voice transmission capacity is offered in conjunction with other services using transmission of more than two hundred (200) kilobits per second, the voice transmission capacity may be less than two hundred (200) kilobits per second. The authority shall annually reconsider the two hundred (200) kilobits threshold in the definition of the term with a bias toward raising the threshold in a manner consistent with technological advances.
Sec. 8. As used in this chapter, "development costs" means the costs associated with the broadband infrastructure that have been approved by the authority and includes all the following:
(1) The costs for the planning, acquiring, leasing, constructing, maintaining, and operating of the broadband infrastructure.
(2) Payments for options to purchase, deposits on contracts of purchase, and payments for the purchases of properties for the broadband infrastructure.
(3) Financing, refinancing, acquisition, demolition, construction, rehabilitation, and site development of new and existing buildings.
(4) Carrying charges during construction.
(3) months after the date of the authority's inquiry under
section 14 of this chapter.
Sec. 14. (a) The authority shall conduct an inquiry to determine underserved areas within Indiana. The authority shall send a written request by certified mail to each person that provides a relevant service in the proposed broadband service area. A written request under this subsection must inquire as to whether the person:
(1) provides broadband service; or
(2) intends to provide broadband service not later than three (3) months after the date of the authority's written request under this subsection;
in the proposed broadband service area.
(b) The authority may determine that there is not a person that provides or intends to provide broadband service in the proposed broadband service area if the authority's inquiry under subsection (a) results in any of the following:
(1) The authority does not receive a written response to any of the requests sent under subsection (a) within sixty (60) days after the date the requests were postmarked.
(2) The authority:
(A) receives one (1) or more responses to a request under subsection (a) that indicate that the persons responding provide broadband service in the proposed broadband service area at the time of the request; and
(B) determines that no person responding actually provides broadband service in the designated area.
(3) The authority:
(A) receives one (1) or more responses to a request under subsection (a) that indicate that the persons responding intend to provide broadband service in the proposed broadband service area not later than three (3) months after the date of the authority's written request under subsection (a); and
(B) determines, after the appropriate amount of time, that no person responding actually provided broadband service in the proposed broadband service area not later than three (3) months after the date of the authority's written request under subsection (a).
Sec. 15. The Indiana broadband development program is established in order to encourage the provision of affordable broadband services and networks that will:
public with respect to the availability of broadband services. The
authority may not approve an application unless a plan is
submitted under this subsection.
Sec. 19. The development finance authority may exercise any of its powers to assist the authority in the accomplishment of the purposes of this chapter, including the power to borrow money, issue bonds and notes, and loan the proceeds to the authority to permit the authority to:
(1) finance or refinance part or all of the development costs of the broadband infrastructure;
(2) refinance existing debt for technology that constitutes part of or is related to the broadband infrastructure;
(3) make loans to persons for development costs;
(4) make loans to enable persons to make purchases related to the broadband infrastructure;
(5) make loans to persons to refinance existing debt incurred by persons in connection with the acquisition or development of technology that constitutes a part of or is related to the broadband infrastructure; and
(6) make other expenditures necessary to carry out the authority's duties under this chapter, including the payment of the authority's operating expenses.
Sec. 20. (a) The authority, as administrator of the broadband development program, may negotiate one (1) or more loans from the development finance authority upon any terms and conditions the authority considers appropriate, necessary, or desirable to carry out the purposes of this chapter.
(b) A loan under this section must be evidenced by a note of the authority, executed by the chairperson and attested to by the executive director.
Sec. 21. All property of the broadband development program is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments, direct or indirect, of the state or a political subdivision of the state. All notes and bonds issued under this chapter are issued by a body corporate and politic of the state, but not a state agency, and for an essential public and governmental purpose, and the notes and bonds, the interest thereon, the proceeds received by the holder from the sale of the notes and bonds to the extent of the holder's cost of acquisition proceeds received upon redemption before maturity, and proceeds received at maturity and the receipt of the interest and proceeds are exempt from taxation in the state
for all purposes except the financial institutions tax imposed under
IC 6-5.5 or a state inheritance tax imposed under IC 6-4.1
SECTION, "coordinating body" refers to the coordinating body
established under IC 5-21.5-2-1, as added by this act.
(b) As used in this SECTION, "system" refers to the statewide broadband system described in IC 5-21.5-2-2, as added by this act.
(c) Not later than October 1, 2005, the coordinating body shall submit the initial report on the feasibility of establishing and implementing the system to the general assembly in an electronic format under IC 5-14-6. The report must provide a detailed analysis of broadband penetration throughout Indiana, specifically stating all broadband options in use and detailing available:
(2) types of service;
(3) areas of service;
(4) costs of service; and
(5) the populations in Indiana to whom the capabilities described in this subsection are available.
(d) On April 1, 2006, and October 1, 2006, the coordinating body shall submit reports on the coordinating body's progress in determining the feasibility of establishing and implementing the system to the general assembly in an electronic format under IC 5-14-6.
(e) Not later than July 1, 2007, the coordinating body shall submit the final report on the feasibility of establishing and implementing the system to the general assembly in an electronic format under IC 5-14-6. The report may include a recommendation on how to structure governance of the system.
(d) This SECTION expires July 15, 2007.