Louisiana Lawmaker Adds Blatant Family Cronyism to Broadband Bill

A Louisiana lawmaker, Republican Daryl Deshotel, filed an amendment to a broadband bill that would require detailed utility mapping by internet providers just two weeks after his son incorporated a business that could benefit by the new provision.

HB700, as initially introduced this session by Rep. Deshotel, dealt primarily with project cost reimbursements and penalties for breach of commitments for the state’s broadband grants, known as Granting Unserved Municipalities Broadband Opportunities (GUMBO). In a twist of pure cronyism, Deshotel amended the bill on April 11 to include a provision that would give the state broadband office the authority to collect data from GUMBO grant recipients on existing utility infrastructure in the path of excavation.

“Data shall be provided to the office in a manner identified to all participants, and may include but not be limited to water, sewer, gas, and voice and data services,” the amendment states.

This amendment came after the company Subterra Technologies LLC incorporated with the Louisiana Secretary of State on March 19. The registered agent for that business is Noah Deshotel, the lawmaker’s son. According to the business’s website, Subterra Technologies’ goal “is to deliver online maps for Louisiana’s utility lines, ensuring statewide coverage for safer planning and infrastructure development.”

Rep. Deshotel did not respond to a request for comment from the Taxpayers Protection Alliance (TPA).

An industry insider told TPA they were unaware of requirements like Deshotel’s proposal in other states. Usually, utilities are marked through the national 811 system.

The insider also said that some providers may be capable of mapping existing utilities in-house, while some would likely have to pay a third-party company for the work. A provider could feasibly go to each utility and negotiate getting their mapping information, but that would delay broadband builds and increase their costs, stretching thin the funds that are supposed to help close the digital divide.

The amendment to HB 700 could hurt the pocketbooks of private broadband providers and taxpayers. That’s because the GUMBO grants are also awarded to government-owned networks (GONs). For example, LUS Fiber in Lafayette (one of the biggest GON projects in the state) is planning an ambitious $31 million expansion across several parishes over the next few years.

GUMBO grants will be used for most of that project to expand fiber service to more than 20,000 potential customers, but an unknown amount of the money would go toward additional utility mapping if HB 700 is passed as now written. That would be fewer funds to connect residents with broadband, as intended by the state granting program.

In 2022, more than $170 million in taxpayer funds were awarded through the initial round of the GUMBO grant program. GUMBO 2.0 will be much bigger, with more than $1.3 billion in grants available, funded largely through the federal Broadband, Equity, Access and Deployment program.

HB 700 was passed unanimously as amended by the House on April 15. It has been read two times in the Senate and was referred to the Committee on Commerce, Consumer Protection and International Affairs.

TPA will continue to monitor the progress of HB 700.

Johnny Kampis is director of telecom policy for the Taxpayers Protection Alliance