(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) Coronavirus 2019 (COVID-19) has brought about an urgent and immediate need for broadband internet access.

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) In response to the pandemic, Arkansas has received federal funds:

   1. (A) Under the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136; and
   2. (B) From the State and Local Fiscal Recovery Fund under the American Rescue Plan Act of 2021, Pub. L. No. 117-2.
3. (2) These funds allowed states to broaden and strengthen their broadband infrastructure in unserved or underserved areas.
4. (3) All American Rescue Plan Act of 2021 funds must be obligated by December 31, 2024.

5. (4) The period of performance will run until December 31, 2026.

   1. (d)
6. (1) The need still exists for broadband infrastructures that directly enable work, education, and health monitoring in response to the effects of coronavirus 2019 (COVID-19).
7. (2) American Rescue Plan Act of 2021 federal guidance was modified April 1, 2022, adding significant requirements.
8. (3) The Arkansas Department of Commerce Broadband Office is modifying its rule through this part to harmonize with the changed federal guidance.
9. (4) Additionally, the broadband office has submitted an application to the United States Department of the Treasury for up to one hundred fifty-eight million dollars ($158,000,000) in funding for broadband projects through the Coronavirus Capital Projects Fund.
10. (5) The Coronavirus Capital Projects Fund is a distinct funding program under American Rescue Plan Act of 2021 and has requirements that differ from the State and Local Fiscal Recovery Fund.

(e)

1. (1) The Arkansas Rural Connect program promotes broadband deployment in rural areas of Arkansas that lack meaningful and efficient broadband services.
2. (2) The ARC program and its purposes align with allowable uses of the State and Local Fiscal Recovery Fund and Coronavirus Capital Projects Fund.

(f) Due to the urgent need for broadband for distance learning and telemedicine and the need for telework necessitated by the coronavirus 2019 (COVID-19) pandemic, there is a need to issue this part to:

1. (1) Disburse funds immediately; and
2. (2) Accelerate the continued deployment of broadband network infrastructure.

(g)

1. (1) Additionally, on April 18, 2022, the Arkansas Broadband Master Plan: Assessment and Recommendations (the “broadband master plan”) was published by Broadband Development Group pursuant to a study commissioned by the broadband office and requested by the General Assembly.
2. (2) Changes to this part also incorporate recommendations made by the broadband master plan.