(A) The broadband expansion program authority shall not award program reimbursements to an applicant under the Ohio broadband pole replacement and undergrounding program, if any of the following apply:

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(1) The broadband infrastructure deployed is used only for the provision of wholesale broadband service and is not used by the applicant to provide qualifying broadband service directly to residences or businesses.

(2) A provider, other than the applicant, is meeting the terms of a legally binding commitment to a governmental entity to deploy qualifying broadband service in the unserved area.

(3) For program reimbursements that are funded by federal funds deposited in the pole replacement fund, the applicant fails to commit to compliance with any conditions required by the federal government in connection with the funds.

(B) The authority shall not award program reimbursements that are federally funded, if the reimbursements are inconsistent with federal requirements.