Arkansas Administrative Code › Agency 003 - DEPARTMENT OF COMMERCE › Division 19 - Arkansas Economic Development Commission › Rule 003.19.20-007 - Arkansas Rural Connect Coronavirus Rule

Current through Register Vol. 49, No. 6, June, 2024
SECTION 1.
BACKGROUND
The Director of the Arkansas Economic Development Commission
				("Director") issues this Rule to respond to urgent, telecommunication needs in
				this State for communities impacted to the COVID-19 pandemic. On or about
				February 21, 2020, the Director issued the Arkansas Rural Connect Broadband
				Rule (hereafter, the "Broadband Rule") to implement the Arkansas Rural Connect
				Program (hereafter, "Arkansas Rural Connect," or "Arkansas Rural Connect
				Program," or "ARC"). This Broadband Rule was promulgated prior to the issuance
				of State and Federal public health guidelines responding to the COVTD-19
				pandemic.
The COVID-19 pandemic has severely impacted the citizens of
				this State. New public health guidelines encourage, and, in some cases require,
				citizens to practice "social distancing," staying at least six (6) feet away
				from other people as much as possible. In light of these restrictions, COVID-19
				has brought about an urgent and immediate need for broadband internet access.
				Normal day to day activities can no longer be done safely. Broadband enables
				workers to telework, patients to use telemedicine services, K-12 and college
				students and unemployed workers in need of reskilling to participate in
				distance education, religious people to participate in online worship services,
				and all citizens to shop online, interact with friends through Skype and other
				video chat tools, and keep up with the latest news and public health
				guidelines.
While the COVID-19 pandemic has negatively impacted the state's
				economy, the federal government has instituted a major relief effort under the
				Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act
				provides substantial allocations of funding to states for coronavirus response,
				broadly defined. Guidance provided by the US Treasury describes allowable uses
				of CARES Act funding. In general, CARES Act money cannot be used for regular
				budget support, and must be used for coronavirus response, but this includes
				both public health related measures and economic relief to address the
				"second-order effects" of the crisis. All CARES Act funds must be spent before
				the end of December 30, 2020.
The Arkansas Rural Connect program promotes broadband
				deployment in rural areas of Arkansas that lacks meaningful and efficient
				broadband services. The ARC program and its purposes align with allowable uses
				of CARES Act funds. However, Arkansas Rural Connect is designed as a medium- to
				longer-term investment program, requiring deployment only by late in 2022,
				which lies well outside the CARES Act spending window.
Due to the urgent need for broadband for distance learning,
				telemedicine and the need for social distancing, necessitated by the COVID-19
				pandemic, there is a need to issue the ARC Coronavirus Rule to disperse funds
				immediately and to accelerate deployment of broadband to address these needs to
				the extent possible.
SECTION
			 2.
AUTHORITY
This Rule is authorized to be issued by the Director of the
				Arkansas Economic Development Commission ("AEDC") under Ark. Code Ann. §
				15-4-209(b) (5) which provides that AEDC may promulgate rules necessary to
				implement the programs and services offered by AEDC. On or about August 9,
				2019, Governor Asa Hutchinson authorized a transfer of funding for the
				implementation and administration of the ARC Program to AEDC. Pursuant to Ark.
				Code Ann. § 15-4-209(a)(l), AEDC is authorized to administer grants to
				assist with the economic development in the State. The ARC Program is therefore
				authorized to administer the ARC grant and authorized to issue administrative
				rules under Ark. Code Ann. § 15-4-209(b) (5) as a service offered by AEDC.
				This rule is also authorized to be issued under Ark. Code Ann. §
				25-15-204(c). The Director finds that imminent peril to the public health,
				safety, or welfare or compliance with a federal law or regulation requires
				adoption of a rule upon less than thirty (30) days' notice.
SECTION 3.
STATEMEMT OF
			 EMERGENCY
The Director finds that a public emergency exists for
				promulgation of this Rule as an Emergency Rule. Under the Coronavirus Aid,
				Relief, and Economic Security (CARES) Act funds have to be expended under this
				Act by the State prior to December 30, 2020 in order to be used by the State.
				Deploying broadband structures is a time consuming process, and the State needs
				as much time as possible for funding the various projects before the end of the
				year deadline.
SECTION 4.
EXPEDITED REVIEW
A.
Expedited Review and Approval of Completed Applications
(1) Applications must be completed to be
			 entitled to Expedited Review. Due to the COVID-19 pandemic crisis, completed
			 application submissions will receive an expedited review while the funding
			 window is still open. The funding window shall remain open upon the passing of
			 these rules so long as funds are available. Special attention entitling
			 organizations for expedited review will be given to:
(a) qualified projects that are able to
			 deploy six months to a year, to at least 90% of the locations targeted by the
			 project (the 90% deployment rate is flexible, but preferred, and must be
			 clearly stated in your application); or
(b) projects falling under the Broadband
			 Rule's $3,000 cap per unserved location connection (the $3,000 cap is flexible,
			 but preferred). These qualified projects must state, in a separate writing
			 attached to the application, how they will assist with telemedicine, distance
			 learning, telework or all three. Areas that are eligible for federal broadband
			 grants will receive a low priority towards funding but will still be eligible
			 to apply. Preference may be given to applications that expedite current
			 expansion plans of providers. The expansion plans must deploy to areas that
			 lack broadband and can be deployed in six months or a year. The ARC population
			 threshold of five hundred (500) people still applies. Failure to accurately
			 state the number of unserved citizens in an area will not be a bar to applying
			 or possibly receiving a grant award. Rural unserved or underserved communities
			 is a primary goal of this program. Communities that do not meet the population
			 threshold will still be able to partner with other communities to meet that
			 eligibility criteria. Focus will be given to internet speed and whether there
			 is internet service in the areas meeting the population threshold. All approved
			 applications must meet eligibility criteria and follow all program requirements
			 under the ARC rules. However, grant awards under these ARC Coronavirus Rules
			 shall control over any conflicting ARC broadband rules.