(a)

1. (1) The Director of the Arkansas Economic Development Commission ("director") issues this part to respond to urgent telecommunication needs in this state for communities impacted by the coronavirus 2019 (COVID-19) pandemic.
2. (2) On or about February 21, 2020, the director issued the Arkansas Rural Connect Broadband Grant Program rule, 15 CAR pt. 189, to implement the Arkansas Rural Connect Broadband Grant Program (hereafter, "Arkansas Rural Connect", "Arkansas Rural Connect Program", or "ARC").
3. (3) The Arkansas Rural Connect Broadband Grant Program rule was promulgated prior to the issuance of state and federal public health guidelines responding to the coronavirus 2019 (COVID-19) pandemic.

(b)

1. (1) The coronavirus 2019 (COVID-19) pandemic has severely impacted the citizens of this state.

2. (2)

   1. (A) New public health guidelines encourage, and in some cases require, citizens to practice social distancing, staying at least six feet (6’) away from other people as much as possible.
   2. (B) In light of these restrictions, coronavirus 2019 (COVID-19) has brought about an urgent and immediate need for broadband internet access.
   3. (C) Normal day-to-day activities can no longer be done safely.

3. (3) Broadband enables:

   1. (A) Workers to telework;
   2. (B) Patients to use telemedicine services;
   3. (C) K-12 and college students and unemployed workers in need of reskilling to participate in distance education;
   4. (D) Religious people to participate in online worship services; and
   5. (E) All citizens to:

(i) Shop online;

1. (ii) Interact with friends through Skype and other video chat tools; and

   1. (iii) Keep up with the latest news and public health guidelines.

      1. (c)
2. (1) While the coronavirus 2019 (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, Pub. L. No. 116-136.
3. (2) The Coronavirus Aid, Relief, and Economic Security Act provides substantial allocations of funding to states for coronavirus response, broadly defined.
4. (3) Guidance provided by the United States Department of the Treasury describes allowable uses of Coronavirus Aid, Relief, and Economic Security Act funding.
5. (4) In general, Coronavirus Aid, Relief, and Economic Security 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.

6. (5) All Coronavirus Aid, Relief, and Economic Security Act funds must be spent before the end of December 30, 2020.

   1. (d)
7. (1) The Arkansas Rural Connect program promotes broadband deployment in rural areas of Arkansas that lack meaningful and efficient broadband services.
8. (2) The ARC program and its purposes align with allowable uses of Coronavirus Aid, Relief, and Economic Security Act funds.
9. (3) 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 Coronavirus Aid, Relief, and Economic Security Act spending window.

(e)

1. (1) An emergency ARC Coronavirus Rule is currently in force.

2. (2) However, due to the ever increasing need for broadband for distance learning and telemedicine and the need for social distancing necessitated by the coronavirus 2019 (COVID-19) pandemic, there is a need to issue this part to:

   1. (A) Add other entities that are capable of deploying broadband quickly within the State of Arkansas;
   2. (B) Offer match fund incentives for entities who have received federal awards for broadband deployment in Arkansas; and
   3. (C) Allow the Arkansas Department of Commerce Broadband Office to purchase broadband deployment equipment or devices that aid or assist with receiving broadband as an Arkansas resident.