Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
                                           Act 795 of the Regular Session
 State of Arkansas                    As Engrossed:       S4/6/21
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                             HOUSE BILL 1788
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 By: Representative L. Fite
 By: Senator K. Hammer
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                                   For An Act To Be Entitled
                 AN ACT TO ESTABLISH BROADBAND IMPROVEMENT DISTRICTS;
                 AND FOR OTHER PURPOSES.
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                                               Subtitle
                         TO ESTABLISH BROADBAND IMPROVEMENT
                         DISTRICTS.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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         SECTION 1.       Arkansas Code Title 14, Chapter 88, Subchapter 2, is
 amended to add an additional section to read as follows:
         14-88-213.       Broadband internet service.
         (a)   A municipal improvement district may enter into a partnership with
 a private actor as provided by  14-96-201 et seq. to:
                 (1)     Contract for, or provide, promote, and support broadband
 internet service through, a public-private partnership under  14-96-201 et
 seq.; and
                 (2)     Finance public capital facilities or projects that include
 broadband internet service.
         (b)   A municipal improvement district in existence on and after January
 1, 2021, may conduct any of the activities under subsection (a) of this
 section using the notice and voting procedures under  14-88-203.
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         SECTION 2.       Arkansas Code  14-92-219, concerning the purposes for
 which a suburban improvement district may be organized, is amended to add an
 additional subdivision to read as follows:
     *KLL069*                                                                    04-06-2021 09:44:35 KLL069
     As Engrossed:    S4/6/21                                                        HB1788
               (12)(A)        To enter into a partnership with a private actor as
 provided by  14-96-201 et seq. to do the following:
                                (i)    Contract for, or provide, promote, and support
 broadband internet service through, a public-private partnership under  14-
 96-201 et seq.; and
                                (ii)   Finance public capital facilities or projects
 that include broadband internet service.
                        (B)    A suburban improvement district created after March
 16, 1981, and in existence on and after January 1, 2021, may conduct any of
 the activities under subdivision (12)(A) of this section using the notice and
 voting procedures for the creation of a suburban improvement district under
 this subchapter.
                        (C)    A suburban improvement district created before March
 16, 1981, may conduct any of the activities under subdivision (12)(A) of this
 section using the notice and voting procedures for the creation of a suburban
 improvement district that were used before March 16, 1981.
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      SECTION 3.        Arkansas Code  14-93-110, concerning the reasons for which
 a property owners' improvement district is organized, is amended to add an
 additional subdivision to read as follows:
               (9)(A)     To enter into a partnership with a private actor as
 provided by  14-96-201 et seq. to do the following:
                                (i)    Contract for, or provide, promote, and support
 broadband internet service through, a public-private partnership under  14-
 96-201 et seq.; and
                                (ii)   Finance public capital facilities or projects
 that include broadband internet service.
                        (B)    A district in existence on and after January 1, 2021,
 may conduct any of the activities under subdivision (9)(A) of this section
 using the notice and voting procedures for the creation of a district under
 this chapter.
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      SECTION 4.        Arkansas Code  14-94-105, concerning the purposes for
 which a municipal property owners' improvement district is organized, is
 amended to add an additional subsection to read as follows:
      (f)(1)     A district may enter into a partnership with a private actor as
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     As Engrossed:    S4/6/21                                                    HB1788
 provided by  14-96-201 et seq. to:
                    (A)     Contract for, or provide, promote, and support
 broadband internet service through, a public-private partnership under  14-
 96-201 et seq.; and
                    (B)     Finance public capital facilities or projects that
 include broadband internet service.
            (2)    A district in existence on and after January 1, 2021, may
 conduct any of the activities under subdivision (f)(1) of this section using
 the notice and voting procedures under this chapter.
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      SECTION 5.    Arkansas Code Title 14 is amended to add an additional
 chapter to read as follows:
                                       CHAPTER 96
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                            BROADBAND IMPROVEMENT DISTRICTS
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                            Subchapter 1  General Provisions
                                       [Reserved.]
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           Subchapter 2  Broadband Improvement Districts Generally
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      14-96-201. Definitions.
      As used in this subchapter:
            (1)    Broadband improvement district means an improvement
 district established for the purpose of providing or aiding in the
 development and maintenance of broadband internet service and deemed a
 special-purpose unit of local government under 41 C.F.R.  105-50.001-4;
            (2)    Broadband internet service means the provision of
 regulated or nonregulated connectivity to a high-speed, high-capacity
 transmission medium that can carry signals from multiple independent network
 carriers over electric power lines, communication lines, antennas, and
 related facilities, whether above or below ground;
            (3)    Broadband system means the infrastructure, materials,
 equipment, and other facilities installed to facilitate the provision of
 broadband internet service;
            (4)    Party means:
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     As Engrossed:        S4/6/21                                                      HB1788
                         (A)    A municipal improvement district formed under  14-88-
 201 et seq.;
                         (B)    A suburban improvement district formed under  14-92-
 201 et seq.;
                         (C)    A property owners' improvement district formed under
 the Property Owners' Improvement District Law,  14-93-101 et seq.;
                         (D)    A municipal property owners' improvement district
 formed under the Municipal Property Owner's Improvement District Law,  14-
 94-101 et seq.;
                         (E)    A horizontal property regime or property owners'
 association formed under the Horizontal Property Act,  18-13-101 et seq.; or
                         (F)    A rural development authority formed under the Rural
 Development Authority Act,  14-188-101 et seq.;
                (5)    Private actor means a cooperative, corporation, general
 partnership, limited liability company, limited partnership, joint
 venture, business trust, public benefit corporation, nonprofit entity, or
 other private business entity that is experienced in the construction,
 financing, implementation, maintenance, or operation of the facilities to be
 acquired or constructed; and
                (6)    Public-private partnership means a partnership between a
 party and a private actor.
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       14-96-202.        Establishment of broadband improvement district  Powers
 and duties.
       (a)   Without limiting the powers, privileges, or authority that may be
 jointly or cooperatively exercised under current law, any party may enter
 into an agreement with a private actor as provided by this subchapter to
 establish a broadband improvement district to:
                (1)    Contract for, or provide, promote, and support broadband
 internet service through, a public-private partnership under this subchapter;
 and
                (2)    Finance public capital facilities or projects that include
 broadband internet service.
       (b)   A broadband improvement district:
                (1)(A)     May enter into a negotiated agreement with a private
 actor in which the private actor will construct, finance, implement,
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     As Engrossed:     S4/6/21                                                     HB1788
 maintain, and operate a broadband system necessary to provide broadband
 internet service and will provide the broadband internet service.
                     (B)     Upon entering an agreement under subdivision (b)(1)(A)
 of this section, the private actor shall be responsible for:
                             (i)     The construction, financing, implementation, and
 operation of the broadband system;
                             (ii)     The maintenance, repair, renewal, relocation,
 or removal of broadband system infrastructure, materials, equipment, and
 other facilities installed to facilitate the provision of broadband internet
 service;
                             (iii)    Additional installation or construction of new
 broadband system infrastructure, materials, equipment, and other facilities
 necessary to ensure the continuance of providing broadband internet service;
                             (iv)     The maintenance, repair, renewal, relocation,
 renovation, or removal of any existing public capital facilities or projects
 that include broadband internet service;
                             (v)     The additional installation or construction of
 public capital facilities or projects necessary to ensure the continuance of
 providing broadband internet service;
                             (vi)     Providing high speed and high capacity
 broadband internet service;
                             (vii)    Responding to requests from broadband internet
 service customers; and
                             (viii)     Maintaining the quality of the infrastructure
 and equipment that is provided and owned by the private actor;
             (2)    May finance a broadband system necessary to provide
 broadband internet service through a public-private partnership as provided
 by this subchapter if a private actor is the entity providing the broadband
 internet service;
             (3)    May engage in negotiations with a private actor before,
 during, and after construction, financing, and implementation of the
 broadband system and while broadband internet service is being provided in
 the area; and
             (4)    May receive federal, state, county, or municipal funding
 through grants, transfers, appropriations, and other legal forms of payment
 to accomplish the purposes of this section.
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     As Engrossed:       S4/6/21                                                     HB1788
      (c)   A party may receive federal, state, county, or municipal funding
 through grants, transfers, appropriations, and other legal forms of payment
 to accomplish the purposes of this section.
      (d)   A party in existence on and after January 1, 2021, may conduct any
 of the activities in this section using the notice and voting procedures that
 are necessary to create the party under the law applicable to that party.
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      SECTION 6.        Arkansas Code  14-188-109, concerning the powers and
 responsibilities of a rural development authority, is amended to add an
 additional subdivision to read as follows:
               (9)(A)     To enter into a partnership with a private actor as
 provided by  14-96-201 et seq. to do the following:
                                (i)    Contract for, or provide, promote, and support
 broadband internet service through, a public-private partnership under  14-
 96-201 et seq.; and
                                (ii)   Finance public capital facilities or projects
 that include broadband internet service.
                        (B)    A rural development authority in existence on and
 after January 1, 2021, may conduct any of the activities under subdivision
 (9)(A) of this section using the notice and voting procedures for the
 creation of a rural development authority under this chapter.
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      SECTION 7.        Arkansas Code  18-13-108, concerning the administration
 and bylaws of a horizontal property regime, is amended to add an additional
 subsection to read as follows:
      (c)(1)     A horizontal property regime may enter into a partnership with
 a private actor as provided by  14-96-201 et seq. to:
                        (A)    Contract for, or provide, promote, and support
 broadband internet service through, a public-private partnership under  14-
 96-201 et seq.; and
                        (B)    Finance public capital facilities or projects that
 include broadband internet service.
               (2)    A horizontal property regime in existence on and after
 January 1, 2021, may conduct any of the activities in subdivision (c)(1) of
 this section using the procedures to adopt decisions under the bylaws of the
 horizontal property regime.
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     As Engrossed:   S4/6/21                                           HB1788
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                              /s/L. Fite
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                           APPROVED: 4/20/21
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Statutes affected: 
Old version HB1788 Original - 3-18-2021 10:35 AM: 14-92-219, 14-93-110, 14-94-105, 14-96-201, 14-93-101, 18-13-101, 14-188-101, 14-96-202, 14-188-109, 18-13-108
Old version HB1788 V2 - 4-6-2021 09:44 AM: 14-92-219, 14-93-110, 14-94-105, 04-06-2021, 14-96-201, 14-93-101, 18-13-101, 14-188-101, 14-96-202, 14-188-109, 18-13-108
HB 1788: 14-92-219, 14-93-110, 14-94-105, 04-06-2021, 14-96-201, 14-93-101, 18-13-101, 14-188-101, 14-96-202, 14-188-109, 18-13-108
Act 795: 14-92-219, 14-93-110, 14-94-105, 04-06-2021, 14-96-201, 14-93-101, 18-13-101, 14-188-101, 14-96-202, 14-188-109, 18-13-108