Revision: April 25, 2022, 9:06 a.m.
SB 445-FN - AS AMENDED BY THE SENATE
03/31/2022 1263s
2022 SESSION
22-3041
12/05
SENATE BILL 445-FN
AN ACT relative to the broadband matching grant initiative.
SPONSORS: Sen. Hennessey, Dist 1; Sen. Bradley, Dist 3; Sen. Watters, Dist 4; Sen. Whitley, Dist 15; Sen. Daniels, Dist 11; Sen. Avard, Dist 12; Sen. Birdsell, Dist 19; Sen. Carson, Dist 14; Sen. Cavanaugh, Dist 16; Sen. Sherman, Dist 24; Sen. Prentiss, Dist 5; Sen. Giuda, Dist 2; Sen. Gray, Dist 6
COMMITTEE: Finance
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AMENDED ANALYSIS
This bill transfers funding to the broadband matching grant fund and makes various changes to the broadband matching grant initiative's guidelines.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/31/2022 1263s 22-3041
12/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Two
AN ACT relative to the broadband matching grant initiative.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Appropriation; Department of Business and Economic Affairs. The sum of $122,100,000 of federal coronavirus capital projects funds, authorized by the American Rescue Plan Act of 2021, Public Law 117-2, from the United States Department of Treasury, shall be transferred to the broadband matching grant fund established in RSA 12-O:63. The department of business and economic affairs is authorized to transfer amounts from said coronavirus capital projects funds for other purposes allowable under federal guidelines, with prior approval of the fiscal committee of the general court and the governor and council.
2 Broadband Matching Grant Initiative; Program Guidelines; Rulemaking. Amend RSA 12-O:62, II(b) to read as follows:
(b) Establishment of a challenge process, with reasonable timelines, through which information may be provided to the state to ensure that funds are not used to build projects in served areas or areas where construction has commenced. [Projects in planning, design, or terms negotiations, and not under construction as of January 1, 2021, shall be eligible for funding] For the purposes of this subdivision, construction has commenced when a provider initiates the make-ready process or begins construction of broadband infrastructure in the project area. A provider who challenges an application’s eligibility for funding because construction has commenced shall complete construction as soon as practical and without undue delay.
3 Broadband Matching Grant Initiative Established. Amend RSA 12-O:61, III to read as follows:
III. Any broadband provider, political subdivision, or communications district formed under RSA 53-G shall be eligible for a grant of up to [50] 75 percent of the total eligible costs of a project. Projects under construction at the time of application shall be ineligible, unless the provisions of RSA 12-O:62, VIII apply. Projects in the planning stages shall be eligible.
4 Broadband Matching Grant Initiative; Program Guidelines; Cost Contribution. Amend RSA 12-O:62, VI to read as follows:
VI. The broadband provider, political subdivision, or communications district shall provide a minimum of [50] 25 percent of the total cost of the project. Sources of the match may include revenue bonds issued by the political subdivision, bonds issued by the communication district, or private investment by broadband providers either jointly or independently. Sources of the match provided by broadband providers shall not include other federal or state funding awarded specifically to support the expansion of broadband networks.
5 New Paragraph; Broadband Matching Grant Initiative; Federal Conflicts. Amend RSA 12-O:62 by inserting after paragraph VII the following new paragraph:
VIII. If the provisions of RSA 12-O:61, RSA 12-O:62, or RSA 12-O:63 conflict with the provisions of the federal funding guidance, specifically for the purposes of the broadband matching grant initiative or the broadband matching grant fund, the federal funding guidance shall control.
6 Effective Date. This act shall take effect upon its passage.
22-3041
Amended 4/22/22
SB 445-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2022-1263s)
AN ACT relative to the broadband matching grant initiative.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
Appropriation | $0 | $122,100,000 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Other - Broadband Matching Grant Fund and ARPA Funds | |||
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COUNTY: |
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Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | $0 | $0 | $0 |
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LOCAL: |
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Revenue | $0 | Indetermine Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill appropriates $122,100,000 to the broadband matching grant fund established in RSA 12-O:63, administered by the Department of Business and Economic Affairs. The source of this appropriation would be funds from the American Rescue Plan Act (ARPA). The broadband matching grant fund is a continually appropriated dedicated fund and it is unclear at this time how much of the $122,100,000 would be expended for program purposes each year, although it is assumed some would be made available as matching grants to political subdivisions (county and local governments).
The Department of Business and Economic Affairs (BEA) states expenditures from this program, which will continue until FY 2027, will be covered through an administrative set-aside of up to $6.1 million. BEA also assumes the transfer of the $122,100,000 appropriation will not occur until FY 2023.
AGENCIES CONTACTED:
Department of Business and Economic Affairs