Arkansas Administrative Code › Agency 003 - DEPARTMENT OF COMMERCE › Division 19 - Arkansas Economic Development Commission › Rule 003.19.20-009 - Supplemental Emergency 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 COVID-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.
An Emergency ARC Coronavirus Rule is currently in force.
				However, due to the ever increasing 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 this Supplemental ARC Coronavirus Rule to
				add other entities that are capable of deploying broadband quickly within the
				State of Arkansas, to offer match fund incentives for entities who have
				received federal awards for broadband deployment in Arkansas and allow the
				Arkansas Economic Development Commission's Broadband Office to purchase
				broadband deployment equipment or devices that aid or assist with receiving
				broadband at an Arkansas resident.
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.
ELECTRIC COOPERATIVES, OTHER ENTITIES AND DEADLINES
A.
Eligibility: Electric Cooperatives
			 and Other Entities
Electric Cooperatives or their subsidiaries and any other
				entity that has a one-year track record of providing voice, internet, broadband
				and/or electric distribution or transmission services to at least 500 retail
				customers are now eligible to apply for ARC grants. This includes
				municipalities that own their own utility service. Electric Cooperatives and
				other qualified entities must follow all ARC rules the same as the internet
				service providers (ISP) and will receive the same treatment as ISPs under the
				ARC rules. Financial records, deployment experience and/or retail customer
				lists arc not an absolute bar to funding projects. Moreover, organizations or
				entities that do not meet this criteria for eligibility may submit an
				application and the project will be reviewed on a case by case basis. These
				organizations may be required to submit financial records, customer lists and
				any other documentation deemed necessary for the Broadband Office to determine
				the stability of the company and the ability for the company to deploy within
				the time prescribed by the Broadband Office. ARC funding caps may be
				waived.
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 number of months to deploy is flexible
			 and can be extended beyond one year at the discretion of the ARC Broadband
			 Office, but one year is the max time preferred. The 90% deployment rate is
			 flexible, but preferred, and must be clearly stated in your application
			 and;
(b) projects falling under the
			 Broadband Rule's $3,000 cap per unserved location connection is preferred, but
			 flexible. 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) is preferred, but flexible. 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. The number of unserved residences in an area is flexible. All
			 approved applications must meet eligibility criteria and follow all program
			 requirements under the ARC rules. However, grant awards under these
			 Supplemental Emergency ARC Coronavirus Rules shall control over any conflicting
			 ARC broadband rules.