Senate committee approves bill letting cities finance and own broadband infrastructure, not operate service

Senate Agriculture, Forestry & Economic Development Committee members voted to pass Senate Bill 74, as amended, after hearing testimony that the measure would let cities finance and own broadband infrastructure while requiring private partners to deliver retail service.

Senator Ricky Hill, vice chair of the committee, introduced the bill and an amendment, saying the measure is designed to "ease restrictions on some broadband and increase competition." Hill told members the bill would allow "cities to do a bond to build the infrastructure" and that the built infrastructure could serve as collateral for such bonds, while "it does not allow them to provide the service." He said cities could opt to finance projects by bond or sales tax and that local voters would decide the preferred approach.

Kim Kincaid, mayor of Cabot, urged the committee to advance the bill. "We're a city of 30,000 people," Kincaid said, describing broadband outages and economic impact in her community. "Internet is the new electricity," she said, arguing that better local control of infrastructure would help Cabot compete for businesses and support education and health-care needs. Kincaid also told the committee she believed the state is "ranked number 48 in broadband services," and said about 40% of Cabot residents live on or near the nearby military base; she asked the senators to "remove the handcuffs" so cities can act.

During questioning, committee members sought clarification about a provision on page 2, subsection 6, which lists a government entity's powers to "acquire, construct, furnish, equip, own, operate, sell, convey lease, rent, let a sign, dispose" of infrastructure. Senator Hill and members discussed whether cities would lease infrastructure to private providers and how billing and operations would be handled; Hill confirmed that a city would own the infrastructure and would "partner with" or lease it to private providers, who would run customer service and billing.

The committee first adopted an amendment offered by Hill. Later, after closing remarks from Hill, a motion to "do pass" the bill as amended was made and seconded. The committee then approved the bill by voice vote; the chair announced "Bill passes." No roll-call tally was recorded in the transcript.

The bill’s proponents said it aims to expand competition and improve Arkansas’ broadband ranking by enabling municipal financing and ownership of physical networks while preserving private-sector delivery of retail service. The committee sent the bill forward after the voice vote; next steps will be scheduling on the floor and any further consideration by the full Senate.

Votes at a glance: Senate Bill 74 — Motion to do pass as amended; committee voice vote approved; motion outcome: approved.

Sources: Committee proceedings and testimony at the Senate Agriculture, Forestry & Economic Development meeting. Remaining procedural steps and a floor schedule were not specified in the transcript.