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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
broadband service district authority; formation
Purpose
Allows a group of individuals, businesses or organizations in a county with a population between 200,000 and 210,000 to form a broadband authority district (district) and prescribes the powers and duties of a district.
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
a) facilitate the expansion and maintenance of broadband infrastructure;
b) secure and manage funding for broadband projects;
c) establish guidelines and goals for broadband performance and accessibility; and
d) support policies and initiatives that promote broadband deployment.
2. Allows a district to only receive funding from:
a) grants from government agencies or private organizations; or
b) service fees that are charged to the users of the broadband services who have elected to receive and use the broadband services and that are used to maintain and operate the broadband services.
3. Prohibits a district from deploying last mile residential broadband.
4. Prohibits a district from levying any new taxes.
5. Allows a district to collect and remit applicable taxes.
6. Deems a district as a public, political and municipal corporation to the extent of the powers and privileges provided and as generally granted to municipal corporations by Arizona law, including immunity of the district's property and revenue taxation.
7. Requires petitioners seeking to form a district to submit an application to the county BOS in the county where the proposed district is located, which must include:
a) a description of the proposed district boundaries;
b) the names of the petitioners;
c) the methodology for the selection of the members of the district board; and
d) the proposed name of the district.
8. Requires a county BOS to hold a public hearing on the application within six weeks after submission of the application.
9. Requires notice of the public hearing to be published in a publication of general circulation at least two weeks before the public hearing.
10. Allows individuals who own property in the proposed district boundaries or other interested parties to join the petition after the filing of the petition and at any time during the county BOS's consideration of the petition.
11. Requires the county BOS, following a public hearing, to:
a) approve or deny the formation of the district;
b) approve a modification of the proposed district boundaries; or
c) approve the methodology for selection of the district board members.
12. Requires the governing body of a broadband service district authority (governing board) to consist of between five and seven members who represent interested stakeholders in the district.
13. Requires a governing board to:
a) adopt bylaws for the operation of the district;
b) hold regular meetings and maintain records of all governing board decisions; and
c) establish terms of office and procedures for selecting governing board members.
14. Grants a governing board the authority to:
a) enter into contracts to facilitate broadband infrastructure development and maintenance;
b) manage and allocate monies for district projects;
c) acquire, hold and dispose of property necessary for district activities;
d) represent the district in legal matters; and
e) monitor and report on the performance and impact of broadband deployment efforts.
15. Requires a governing board to prepare an annual report detailing the financial activities and progress of the district and distribute the report to members of the district and the county BOS at least 60 days before the beginning of each fiscal year.
16. Defines authority, in the context of a broadband authority district, as a district authority responsible for facilitating broadband deployment and connectivity for agricultural purposes.
17. Defines board as a governing board.
18. Defines broadband service as high-speed internet access that enables a user to transmit and receive data, video and other digital communication.
19. Defines district as a designated geographic area established for broadband service improvements.
20. Defines infrastructure as components necessary for broadband deployment, including transmission equipment, network facilities, data transport systems and related utilities.
21. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Outlines requirements for the formation of a district and district funding.
2. Deems a district as a public, political and municipal corporation with immunity of the district's property and revenue taxation.
3. Outlines membership, rulemaking and reporting requirements for a governing board, including the powers and duties of the governing board.
4. Defines terms.
5. Makes technical and conforming changes.
Amendments Adopted by Committee of the Whole
1. Specifies that an authority is responsible for facilitating broadband deployment and connectivity for only agricultural purposes.
2. Prohibits a district from deploying last mile residential broadband.
3. Makes conforming changes.
Senate Action
GOV 2/19/25 DPA 4-3-0
Prepared by Senate Research
March 4, 2025
AN/SDR/slp