The Arkansas Legislative Council on Thursday signed off on a proposed $1.95 million state contract with a North Little Rock firm to provide administrative support to the state Department of Commerce's broadband office and the Arkansas Rural Connect broadband grant program.
The contract with the Center for Toxicology and Environmental Health will run until June 30, 2023, and will be paid through federal American Rescue Plan funds, according to the Bureau of Legislative Research. In March, President Joe Biden signed into law the $1.9 trillion American Rescue Plan Act that is designed to help the United States' recovery from the economic and health effects of the pandemic.
Commerce Secretary Mike Preston told lawmakers that the Arkansas Rural Connect program has received applications asking for $350 million more in grants beyond those that were previously approved. Afterward, department spokesman Alisha Curtis said that number has increased to $400 million more.
On Sept. 8, Gov. Asa Hutchinson set a goal for Arkansas Rural Connect to award $250 million more in grants financed with federal American Rescue Plan funds by the end of this year.
The Arkansas Rural Connect program already has awarded $279 million in grants to provide high-speed internet service. The 132 projects have been financed with $157.5 million in American Rescue Plan funds; $118.1 million in federal Coronavirus, Aid, Relief, and Economic Security Act funds; and $4 million in state funds, according to state records.
RURAL ID GRANTS
Also Thursday, the Legislative Council approved Rural Broadband ID grants of $75,000 apiece to the cities of Berryville and Russellville to hire consultants to conduct due-diligence business studies required for federal grant and loan applications for broadband infrastructure.
The council later rejected a motion by Rep. Jim Dotson, R-Bentonville, to expunge that vote.
Dotson urged the council to expunge the vote to give him time to study whether the studies would duplicate work by the Broadband Development Group of Little Rock under the latter's $2.2 million state contract, "so we are not double spending money."
Rep. Stephen Meeks, R-Greenbrier, countered that the grants to Berryville and Russellville will be used to fund detailed technical studies required to obtain federal funds, while Broadband Development Group will conduct a high-level statewide assessment.
On Sept. 29, the council's executive subcommittee signed off on the Department of Commerce's $2.2 million contract with Broadband Development Group to assess Arkansas' broadband needs and develop a master plan for expanding coverage.
Meeks said Thursday, "We are talking apples and oranges between the two."
Dotson said, "There might be an apples and oranges comparison," but he wants more time to confirm that.
Sen. Bob Ballinger, R-Ozark, said Berryville officials want the grant funds to study expanding broadband coverage.
Berryville's grant request states that the city has a strong and trainable workforce that can be attractive to many businesses and "a new Business Park to which we are attempting to attract employers."
"Developing a robust Internet infrastructure in this area will allow us to be more marketable for today's tech focused companies seeking an affordable and dependable business environment," the grant request states.
Sen. Breanne Davis, R-Russellville, said expanding broadband coverage is "a big deal" in Russellville to help children learn more and more adults to work from home.
Russellville's grant request states, "Although the [Federal Communications Commission] indicates Russellville has adequate broadband coverage, our experiences are quite different.
"Our city is home to Tyson Foods, ConAgra, Denali and other large manufacturing companies who have experienced interruption of online availability stemming from slow broadband connection to their facilities," the request states. "Students and families were forced to use broadband 'hot spots' from local businesses (sometimes from their parking lots) as well as neighboring communities in order to access online curriculum during the pandemic school closures. Some students and teachers were unable to attend school at all due to lack of Internet."
Eighteen applicants previously were awarded a total of $1.1 million of Rural Broadband ID grants.
CONTRACT QUESTIONS
Rep. Fran Cavenaugh, R-Walnut Ridge, questioned Thursday why the Department of Commerce needs the consulting contract with the Center for Toxicology and Environmental Health when it has a separate consulting contract with the Broadband Development Group.
Officials serving under Hutchinson hired the Broadband Development Group despite the company making the highest monetary bid, yet scoring the lowest on a technical basis compared with its two competitors.
Some lawmakers liked what they called the company's "boots on the ground" approach of holding town hall meetings to gather public input and determine service needs. They said the state needs a master plan to ensure that it efficiently uses federal and state funds to expand high-speed broadband coverage as widely as possible.
Preston said the department is subcontracting with the Center for Toxicology and Environmental Health, which already has a contract with the state Department of Finance and Administration.
The finance department's $6 million contract with the center to provide guidance and expertise related to CARES Act funding was signed in July 2020, finance department spokesman Scott Hardin said afterward. The contract was amended this year for $10 million more through July 2026 to allow the company to provide guidance and expertise related to American Rescue Plan funds, he said.
Preston told lawmakers that the center will provide administrative support for the state broadband office and the Arkansas Rural Connect broadband grant program under its contract.
'WHO IS IN CHARGE?"
That prompted Rep. Jim Wooten, R-Beebe, to ask, "Who is in charge of broadband in the state of Arkansas? Who is running the show?"
Preston said Department of Parks, Heritage and Tourism Secretary Stacy Hurst chairs Hutchinson's broadband working group that also includes Department of Finance and Administration Secretary Larry Walther and Preston, and they each recommended hiring Broadband Development Group.
He said the Arkansas Rural Connect broadband grant program is administered through the Department of Commerce and the Rural ID Broadband grant program is administered through the University of Arkansas for Medical Sciences' Institute of Digital Health & Innovation.
Each broadband grant program serves a different purpose, and "we have made significant progress" expanding broadband coverage so far in Arkansas, Preston said.
"It is a lot of moving parts, but we are working together," he said.
Sen. Missy Irvin, R-Mountain View, agreed with Preston.
"There is a lot of moving parts, and there is a lot of coordination," she said.
But Sen. Ricky Hill, R-Cabot, said "somebody has got to be in charge" of broadband in the state, and the state needs "a head coach" to contact on broadband issues.
In response, Preston said "come to us," and he'll get information from others if he doesn't have the information sought on broadband issues.