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ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

 

FACT SHEET FOR S.B. 1661

 

broadband service district authority; formation

Purpose

Allows a county to form a broadband service district authority (authority) and prescribes the powers and duties of an authority.

Background

The Arizona Broadband Office (Office) operates within the Arizona Commerce Authority to: 1) coordinate the implementation of local, state and federal broadband programs; 2) coordinate and execute federal broadband grant applications with stakeholders; 3) provide guidance and support to stakeholders in navigating broadband infrastructure projects; 4) provide guidance and support to public and private partners on broadband policies and practices; 5) solicit feedback from stakeholders to develop broadband policy priorities; and 6) work with local partners, state and federal agencies and telecommunications providers to improve internet connectivity and resiliency in Arizona (A.R.S. ยง 41-1511).

The U.S. Treasury's Capital Projects Fund (CPF) is a federal program that provides funding to states, territories and tribal governments to support the deployment of broadband infrastructure and related programs. Arizona applied for, and the U.S. Treasury approved, a plan to invest $100 million of CPF funding in broadband infrastructure projects to provide high-quality internet to locations that lack access to adequate service. The Office operates the Arizona Broadband Development Grant Program (ABDG Program), which expands high-speed internet access in Arizona by funding infrastructure projects in Arizona's unserved and underserved areas. The ABDG Program has awarded a total of $100 million to 17 awardees across 10 counties (ABDG Program Guidelines; ACA).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Allows a county to form an authority to:

a)   facilitate the construction, deployment and maintenance of broadband service infrastructure;

b)   identify and manage funding of the authority and direct available funding to areas where broadband service is needed;

c)   set and monitor performance targets for broadband service, including speed and quality metrics;

d)   create and recommend policies to accelerate deployment of broadband service technology in underserved or unserved areas;

e)   enter into contracts with private entities;

f) accept charitable donations; and

g)   apply for grants.

2.   Prohibits an authority from imposing, levying, assessing or collecting any tax on any person, business or entity.

3.   Becomes effective on the general effective date.

Prepared by Senate Research

February 14, 2025

AN/SDR/slp