Telephone and Telegraph Companies

Ark. Code Ann. tit. 23, ch. 17

in effect

Ark. Code Ann. § 23-17-101 Right to construct, operate, and maintain lines — Damages for occupation of property.

(a)(1) Any person or corporation organized by virtue of the laws of this state or of any other state of the United States or by virtue of the laws of the United States, for the purpose of transmitting intelligence by magnetic telegraph or telephone, or other system of transmitting intelligence which is the equivalent of telephone or telegraph and which may be invented or discovered, may construct, operate, and maintain the telegraph, telephone, or other lines necessary for the speedy transmission of intelligence: (A) Along and over the public highways and streets of the cities and towns of this state; (B) Across and under the waters and over any lands or public works belonging to this state; (C) On and over the lands of private individuals; (D) Upon, along, and parallel to any of the railroads or turnpikes of this state; and (E) On and over the bridges, trestles, or structures of the railroads. (2) However, the ordinary use of the public highways, streets, works, railroads, bridges, trestles, or structures and turnpikes shall not be obstructed thereby, nor shall the navigation of the waters be impeded. (b) Just damages shall be paid to the owners of the lands, railroads, and turnpikes by reason of the occupation of the lands, railroads, and turnpikes by the telegraph or telephone corporations. (c) Nothing in this subchapter shall limit the authority of municipalities to impose franchise fees pursuant to § 14-200-101.

Ark. Code Ann. § 23-17-102 Railroads may operate telegraphs and telephones — Authority.

Any railroad company incorporated by the laws of or operating lines of railroad within this state, upon filing its assent to this section and §§ 23-17-101 , 23-17-103 — 23-17-108 , and 23-17-113 in the office of the Secretary of State, shall thereby become clothed with the rights, powers, and duties provided for telegraph and telephone companies.

Ark. Code Ann. § 23-17-103 Condemnation proceedings upon failure to secure right-of-way.

In the event that the telegraph or telephone companies upon application to such individuals, railroads, or turnpike companies fail to secure a right-of-way by consent, contract, or agreement, then the telegraph or telephone corporation shall have the right to proceed to procure the condemnation of the property, lands, rights, privileges, and easements in the manner prescribed by law for taking private property for right-of-way for railroads, as provided by § 18-15-1201 et seq.

Ark. Code Ann. § 23-17-104 Right of entry for construction — Liability for damages.

Wherever any telegraph or telephone company desires to construct its lines on or along the lands of individuals, on the right-of-way and structures of any railroads, or upon and along any turnpike, the telegraph or telephone company by its agents may have the right to peacefully enter upon the lands, structures, or right-of-way and survey, locate, and lay out its lines thereon, being liable, however, for any damage that may result by reason of such acts.

Ark. Code Ann. § 23-17-105 Contract for exclusive privileges prohibited.

No telegraph or telephone corporation organized by virtue of the laws of this state or doing business in this state by virtue of the laws of any other state, or of the United States, shall have the power to contract with the owners of lands or the right in lands, or with any person or corporation, for the rights to erect, operate, or maintain telegraph, telephone, or other lines or works for the speedy transmission of intelligence over his or her or its lands, privileges, rights, or easements to the exclusion of other persons or corporations authorized to erect and operate lines and works for speedy transmission of intelligence.

Ark. Code Ann. § 23-17-106 Priority of dispatch of messages — Confidentiality.

(a)(1) In consideration of the right-of-way over the public property conceded in this section and §§ 23-17-101 — 23-17-105, 23-17-107, 23-17-108, and 23-17-113, every telephone corporation in the case of war, insurrection, or civil commotion of any kind and for the arrest of criminals shall give immediate dispatch at the usual rates of charge to any message connected therewith of any officer of the state or of the United States. (2) Any officer or agent of a telephone company who fails or refuses to carry out the provisions of subdivision (a)(1) of this section is guilty of a Class A misdemeanor. (b)(1) All other messages, including those received from other telephone companies, shall be transmitted in order of their delivery, correctly and without unreasonable delay, and shall be strictly confidential. However, arrangements may be made with the publishers of newspapers for the transmission of intelligence of general and public interest. (2) Any officer or agent of a telephone company who willfully violates this subsection is guilty of a Class A misdemeanor. (3) The telephone company so violating this section is liable in damages to the party aggrieved.

Ark. Code Ann. § 23-17-107 Interception of message — Injuring equipment — Penalty.

If any person without authority intercepts a dispatch or message transmitted by telephone or willfully destroys or injures any telephone pole, wire, cable, or fixture, he or she is guilty of a Class A misdemeanor.

Ark. Code Ann. § 23-17-108 Refusal to transmit message — Penalty.

Every telegraph and telephone company doing business in this state, under a penalty of five hundred dollars ($500) for each and every refusal to do so, must transmit over its wires to localities on its lines for any individual, corporation, or other telegraph or telephone company such messages, dispatches, or correspondence as may be tendered to it by, or to be transmitted to, any individual, corporation, or other telegraph or telephone companies at the price customarily asked and obtained for the transmission of similar messages, dispatches, or correspondence without discrimination as to charges or promptness. The penalty prescribed in this section shall be recoverable in any court through proper form of law, one-half (½) of which shall go to the prosecutor and one-half (½) to the state.

Ark. Code Ann. § 23-17-110 Telegraph companies — Schedule of rates.

In order to ascertain what the regular charges of such companies are, all telegraph companies doing business in this state are required to keep in all their offices in this state a schedule of the regular rates charged by them, which shall be open to the inspection of any person interested therein.

Ark. Code Ann. § 23-17-112 Damages for mental anguish.

(a) All telegraph companies doing business in this state shall be liable in damages for mental anguish or suffering even in the absence of bodily injury or pecuniary loss for negligence in receiving, transmitting, or delivering messages. (b) In all actions under this section, the jury may award such damages as it concludes resulted from the negligence of the telegraph company. (c) Nothing contained in this section shall abridge the rights and remedies now provided by law against telegraph companies, and the rights and remedies provided for by this section shall be in addition to those now existing.

Ark. Code Ann. § 23-17-113 Telephone service to be supplied without discrimination — Complaint to commission.

(a)(1) Every telephone company doing business in this state and engaged in a general telephone business shall supply all applicants for telephone connection and facilities without discrimination or partiality, within ten (10) days after written demand therefor, if the applicants comply or offer to comply with the reasonable rules of the company. (2) No telephone company shall impose any condition or restriction upon any applicant that is not imposed impartially upon all persons or companies in similar situations. Nor shall the company discriminate against any individual or company engaged in lawful business by requiring as a condition for furnishing the facilities that they shall not be used in the business of the applicant or otherwise. (b) Upon failure of any telephone company to comply with the written demand for telephone connection and facilities, the applicant may file a complaint with the Arkansas Public Service Commission under the provisions of § 23-3-119. The commission may make such temporary and final orders relative to the furnishing of such connection and facilities as the facts may justify.

Ark. Code Ann. § 23-17-116 Fee for initiation of residential telephone service to be payable in installments.

(a) The fee or charge imposed by any telephone company doing business in this state for the initiation of local telephone service at a residential location, but not including contributions in aid of construction, if any, shall be billed to the residential customer in equal monthly installments over a period of six (6) months at the option of the customer if the total installation charges exceed one hundred dollars ($100). (b) If the total installation charges exceed fifty dollars ($50.00) but do not exceed one hundred dollars ($100), the residential customer shall at the option of the customer be billed in equal monthly installments over a period of three (3) months.

Ark. Code Ann. § 23-17-120 Establishment of calling plans.

(a)(1) The Arkansas Public Service Commission by rule shall establish calling plans in telephone exchanges in the state. (2) The commission shall determine the size of exchanges that will be eligible for the calling plan. (b)(1) The commission may establish end-user charges for the plan in an amount not to exceed two dollars and fifty cents ($2.50) per month per access line to be applied in the affected exchanges. In addition the commission may establish usage-based charges or other end-user charges as appropriate to fund the plan. (2) The plan shall be funded by customer charges under subdivision (b)(1) of this section and by the Arkansas Calling Plan Fund established by § 23-17-404(e). (c) The plan may vary among telephone exchanges based on factors determined by the commission. (d) In establishing the calling plan, the commission shall consider basic local exchange rates, calling scopes, the ability of customers to call the county seat, access to industry and business, the cost of providing the calling plan, and the availability of funding from the Arkansas Calling Plan Fund. (e) The plan provided to different telephone exchanges may vary in minutes in the plan and the cost to customers for the plan and may be either mandatory or optional plans. (f) Any mandatory plan shall be subject to approval through a balloting process by the customers of the exchanges that would be subject to the monthly end-user charge associated with the proposed plan. A minimum of fifty-one percent (51%) of the ballots returned must be in favor of the proposed calling plan in order for the proposed calling plan to be implemented. (g)(1) Incumbent local exchange carriers shall not be entitled to Arkansas Universal Service Fund [superseded] recovery for lost toll revenues associated with the implementation of these calling plans. (2) In establishing the plans, the commission is required to ensure that all costs to incumbent local exchange carriers of implementing such plans, including, but not limited to, lost toll and access revenues, network and equipment costs, and costs incurred to terminate associated plan traffic are fully compensated by the combination of end-user charges and funds provided to each incumbent local exchange carrier from the Arkansas Calling Plan Fund. (3) Lost toll revenues shall be determined by a two-month study of actual toll usage and revenues for traffic on the proposed route.

Ark. Code Ann. § 23-17-121 Agreements for special terminating access rates or plans.

(a) Two (2) or more eligible telecommunications carriers may enter into an agreement under this section for special terminating access rates or plans between exchanges of the parties to the agreement. The agreement is conditioned upon the approval of the Arkansas Public Service Commission. (b) The commission may approve the agreement only if the commission determines that: (1) The agreement is needed to enhance or improve calling between communities of interest or to assist citizens to call their county seat; (2) The agreement is in the best interest of the customers of the eligible telecommunications carriers; (3) The special terminating access rate or plan recovers the cost of providing the service; and (4) The agreement does not detrimentally impact the customers of other telecommunications carriers in Arkansas. (c)(1) The approval may provide for special terminating access rates that shall be available only to the companies entering into the agreement. (2) No other company may take advantage of the special access rates. In all other instances, the filed-rate doctrine shall continue to apply. (d) Any reduced revenue or additional costs caused by the agreement shall not be recovered from the Arkansas Universal Service Fund [superseded].

Ark. Code Ann. § 23-17-122 Annual certification — Definition.

(a) As used in this section, “provider” means an entity that provides a telecommunications service, a Voice over Internet Protocol, commonly known as “VoIP”, service, a commercial radio service, or a similar service. (b) Beginning July 1, 2019, and annually thereafter, a provider shall file with the Arkansas Public Service Commission documentation demonstrating that the provider has implemented current and applicable technologies to identify and block telecommunications that violate § 4-88-107(a)(11), § 4-88-108(a), § 4-99-108(c), or § 4-99-302(b), as applicable, taking into consideration applicable state and federals laws, federal regulations, and costs. (c)(1) The commission shall promulgate rules necessary to implement this section. (2)(A) When adopting the initial rules to implement this section, the final rule shall be filed with the Secretary of State for adoption under § 25-15-204(f): (i) On or before July 1, 2020; or (ii) If approval under § 10-3-309 has not occurred by July 1, 2020, as soon as practicable after approval under § 10-3-309. (B) The commission shall file the proposed rule with the Legislative Council under § 10-3-309(c) sufficiently in advance of July 1, 2020, so that the Legislative Council may consider the rule for approval before July 1, 2020. (d) The commission shall have exclusive jurisdiction to hear and determine all complaints regarding a provider's compliance with this section. (e) A provider filing documentation under subsection (b) of this section shall be deemed to be in compliance with this section until the provider is subject to a final order issued by the commission finding the provider has failed to implement current and applicable technologies according to subsection (b) of this section.

Ark. Code Ann. § 23-17-201 Title.

This subchapter may be cited as the “Rural Telecommunications Cooperative Act”.

Ark. Code Ann. § 23-17-202 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Acquire” means and includes construct, acquire by purchase, lease, devise, gift, or other modes of acquisition; (2) “Board” means a board of directors of a corporation organized under this subchapter; (3) “Commission” means the Arkansas Public Service Commission; (4) “Cooperative” means a corporation organized and operating pursuant to the provisions of this subchapter; (5) “Federal agency” includes the United States and any department, administration, commission, board, bureau, office, establishment, agency, authority, or other instrumentality of the United States; (6) “Member” means an incorporator of a cooperative and each person thereafter lawfully admitted to and retaining membership therein; (7) “Municipality” means any incorporated city or town of this state; (8) “Obligations” includes bonds, notes, debentures, interim certificates, or receipts and all other evidences of indebtedness issued by a cooperative. However, obligations shall not include amounts represented by capital stock, certificates of membership, or amounts due as patronage profits; (9) “Person” includes any natural person, firm, association, corporation, business trust, or partnership; (10) “Rural area” means any area within this state which is located outside the boundaries of any incorporated or unincorporated city, town, or village having a population in excess of two thousand five hundred (2,500) inhabitants according to the last preceding federal census; (11) “State agency” includes the State of Arkansas and any department, administration, commission, board, bureau, office, establishment, agency, authority, instrumentality, or any political subdivision of the State of Arkansas; (12) “Telecommunications company” means any person, firm, partnership, corporation, association, or other entity that offers telecommunications services to the public for compensation; and (13) “Telecommunications service” means the offering to the public for compensation the transmission of voice, data, or other electronic information at any frequency over any part of the electromagnetic spectrum, notwithstanding any other use of the associated facilities. Such term does not include radio and television broadcast or distribution services or the provision or publishing of yellow pages, regardless of the entity providing such services or services to the extent that such services are used in connection with the operation of an electric utility system owned by a government entity.

Ark. Code Ann. § 23-17-204 Purpose of cooperative.

Cooperative nonprofit membership corporations either with or without capital stock may be organized under this subchapter for the purpose of furnishing telecommunications service and other services to the widest practicable number of users of such services.

Ark. Code Ann. § 23-17-205 Powers of cooperative.

Any cooperative created under the provisions of this subchapter shall have power to: (1) Sue and be sued in its corporate name; (2) Have perpetual existence unless limited for a shorter term in its articles of incorporation; (3) Adopt and use a corporate seal and to alter it; (4) Furnish, improve, and expand telecommunications service to its members, to federal and state agencies, and to other persons; (5) Construct, purchase, lease as lessee, or otherwise acquire, and to improve, expand, install, equip, maintain, and operate, and to sell, assign, convey, lease as lessor, mortgage, pledge, or otherwise dispose of or encumber telecommunications lines, facilities or systems, lands, buildings, structures, plant and equipment, exchanges, and any other real or personal property, tangible or intangible, which are necessary or appropriate to accomplish any purpose of the cooperative authorized by this subchapter; (6) Connect and interconnect its telecommunications lines, facilities, or systems with telecommunications lines, facilities, or systems owned and operated by other telecommunications companies or cooperatives; (7) Make its facilities available to persons furnishing telecommunications services within or without this state; (8) Purchase, lease as lessee, or otherwise acquire, and to use and exercise, and to sell, assign, convey, pledge, or otherwise dispose of, or encumber franchises, rights, privileges, licenses, and easements; (9) Fix membership fees, issue membership certificates, and issue nonvoting shares of stock; (10) Borrow money and otherwise contract indebtedness, to issue and guarantee notes, bonds, and other evidences of indebtedness, and secure the same by mortgage, pledge, deed of trust, or security deed, or any other encumbrances upon any or all of its then-owned or after-acquired real or personal property, assets, franchises, or revenues; (11) Construct, maintain, and operate telecommunications equipment, lines, facilities, and systems along, upon, under, and across publicly owned lands, easements, rights-of-way, and public thoroughfares, including, without limitation, all roads, highways, streets, alleys, bridges, and causeways, subject, however, to the same requirements and limitations with respect to the use or occupancy of such thoroughfares and lands as are imposed by the laws of this state on telecommunications companies; (12) Exercise the power of eminent domain in the manner and to the same extent as provided by the laws of this state for the exercise of such power by telecommunications companies; (13) Adopt, and from time to time, amend, or repeal bylaws; (14) Make any and all contracts necessary, convenient, or appropriate for the full exercise of the powers herein granted; (15) Accept gifts or grants of money, services, or property, real or personal; and (16) Do or perform any other acts and things which may be necessary, convenient, or appropriate to accomplish any purpose of the cooperative authorized by this subchapter.

Ark. Code Ann. § 23-17-206 Jurisdiction of commission.

Cooperatives doing business in this state pursuant to this subchapter shall be subject to the general jurisdiction of the Arkansas Public Service Commission. Jurisdiction shall be exercised by the commission in the same manner and to the same extent as provided by law for the regulation, supervision, or control of telecommunications companies, subject, however, to all the provisions of this subchapter.

Ark. Code Ann. § 23-17-207 Incorporators.

Any three (3) or more natural persons of the age of twenty-one (21) or more who are residents of this state may act as incorporators of a cooperative to be organized under this subchapter by executing articles of incorporation as provided in § 23-17-210 .

Ark. Code Ann. § 23-17-208 Cooperative names.

The words “telecommunications cooperative” or “telephone cooperative” shall not be used in the corporate names of corporations organized under the laws of this state or authorized to do business herein, other than cooperatives organized pursuant to the provisions of this subchapter.

Ark. Code Ann. § 23-17-209 Articles of incorporation — Contents.

(a) The articles of incorporation shall state: (1) The name of the cooperative. The name shall include the words “Telephone Cooperative” or “Telecommunications Cooperative”, and the abbreviation “Inc.”; (2) The purpose for which the cooperative is formed; (3) The names and addresses of the incorporators who shall serve as directors and manage the affairs of the cooperative until its first annual meeting of members or until their successors are elected and qualified; (4) The number of directors, not fewer than five (5), to be elected at the annual meeting of members; (5) The address of its principal office and the name and address of its agent upon whom process may be served; (6) The terms and conditions upon which persons shall be admitted to membership and retain membership in the cooperative; (7) If a cooperative desires to issue nonvoting shares of stock: (A) The total number of the shares of stock which may be issued and the par value of each share; (B) The fixed or maximum rates of dividends on the par value of the shares of stock and whether dividends shall be cumulative; (C) Whether the shares of stock may be issued to members only or to members and nonmembers; and (D) The maximum number of the shares of stock which may be owned by any person and the terms and conditions upon which the shares of stock may be transferred, redeemed, or retired. No shares of stock shall be issued except for cash or for property at its fair value in an amount equal to the par value of the shares of stock; and (8) Any provision not inconsistent with law, which the incorporators may choose to insert, for the regulation of the business and the conduct of the affairs of the cooperative. (b) It shall not be necessary to set forth in the articles of incorporation any of the corporate powers enumerated in this subchapter.

Ark. Code Ann. § 23-17-210 Articles of incorporation — Execution, filing, and recording.

(a) Duplicate originals of the articles of incorporation shall be signed by the incorporators and acknowledged before an officer authorized by the laws of this state to take acknowledgments to deeds and conveyances. These duplicate originals shall be filed in the office of the Secretary of State. (b) If the Secretary of State finds that the articles of incorporation conform to law and when the fees prescribed by this subchapter have been paid, he or she shall: (1) Endorse on the originals the word “filed” and the month, day, and year of the filing; (2) File one (1) of the originals in his or her office and deliver the other to the incorporators; and (3) Issue a certificate of incorporation to the incorporators. (c) The incorporators shall file for record a copy of the original articles of incorporation bearing the filing of the Secretary of State.

Ark. Code Ann. § 23-17-211 Articles of incorporation — Amendment.

(a) Any cooperative organized under this subchapter, from time to time and as desired, may amend its articles of incorporation in any respect. However, only such provisions shall be inserted by amendment that could be lawfully and properly inserted in original articles of incorporation at the time of making the amendment. (b) Every amendment shall be made and effected in the manner following: (1) The board of directors of the cooperative shall adopt a resolution setting forth the amendment proposed, declaring its advisability, and calling a meeting of the members entitled to vote for the consideration thereof at the meeting, of which notice shall be given in the manner provided in § 23-17-217; (2) If it appears that a majority of the members voting have voted at an annual meeting in favor of the amendment, the cooperative shall make under its corporate seal and the hand of its president or vice president and secretary or assistant secretary a verified certificate setting forth the amendment in full; (3) Duplicate originals of the certificate, so verified, shall be filed in the office of the Secretary of State, and one (1) of the duplicate originals bearing the filing by the Secretary of State shall be recorded in the office of the county clerk in the same manner as required in § 23-17-210 in regard to certified copies of original articles of incorporation; and (4) Upon the filing of the certificate with the Secretary of State, the charter of the cooperative shall be deemed to be amended accordingly.

Ark. Code Ann. § 23-17-212 Certificate of incorporation.

(a) Upon the issuance of a certificate of incorporation by the Secretary of State, the corporate existence of the cooperative shall begin. (b) The certificate of incorporation shall be conclusive evidence, except as against the state, that all conditions required to be performed by the incorporators have been complied with and that the cooperative has been incorporated under this subchapter.

Ark. Code Ann. § 23-17-213 Organizational meeting.

(a) After the issuance of the certificate of incorporation, an organizational meeting shall be held at the call of a majority of the incorporators for the purpose of adopting bylaws and electing officers and for the transaction of such other business as may properly come before the meeting. (b) The incorporators calling the meeting shall give at least three (3) days' notice thereof by mail to each incorporator. The notice shall state the time and place of the meeting.

Ark. Code Ann. § 23-17-214 Bylaws.

(a)(1) The power to make, alter, amend, or repeal the bylaws of the cooperative shall be vested in the board of directors, subject to amendment by the members at an annual meeting. (2)(A) The board shall not change, alter, amend, or repeal a provision of the bylaws adopted by the members except upon a unanimous vote of the directors in favor of the change, alteration, amendment, or repeal. (B) If the directors change, alter, amend, or repeal a bylaw provision under this section, the bylaw provision shall remain effective unless the change, alteration, amendment, or repeal of the bylaw provision is presented by the members at the next annual or special meeting of the board. (C) If the members at the next annual or special meeting of the board do not vote to ratify the directors' action in changing, altering, amending, or repealing the bylaw provision in question, the bylaw provision in question shall be deleted from the bylaws, and the bylaw provision in question shall revert, effective the day after the members' meeting, to the wording that was in place immediately before the directors changed, altered, amended, or repealed the bylaw provision. (b) The bylaws may contain any provisions for the regulation and management of the affairs of the cooperative not inconsistent with law or the articles of incorporation.

Ark. Code Ann. § 23-17-215 Qualifications of members.

Subject to the provisions of this subchapter, the articles of incorporation of a cooperative, and the bylaws of a cooperative, a cooperative's board shall have the authority to determine the qualifications for membership in the cooperative and to establish and from time to time modify procedures pursuant to which persons may become or remain members, as well as procedures for terminating a person's membership in the cooperative. Notwithstanding the foregoing provisions of this section, no person may become or remain a member of a cooperative who does not subscribe to telecommunications service supplied by the cooperative.

Ark. Code Ann. § 23-17-216 Membership fees and capital credits.

(a) When a member of a cooperative has paid the membership fee in full, a certificate of membership shall be issued to the member. (b) Memberships in the cooperative and the certificates thereof shall be nontransferable and nonassignable. (c) Membership may be cancelled upon the resignation, expulsion, dissolution, change in ownership, or death of the member or by the death or divorce of either party to a joint membership, if joint memberships are provided for in the bylaws. (d) The membership fee shall not be refunded. (e) Cooperatives shall not pay capital credits to a member, former member, patron, or former patron while the cooperative has outstanding and unpaid obligations in excess of ten percent (10%) of its net assets. The board of directors in its discretion may authorize payment of any capital credits allocated to deceased former members or patrons as provided in the bylaws. If the outstanding and unpaid obligations of the cooperative are less than ten percent (10%) of the cooperative's net assets based upon the cooperative's consolidated balance sheet as of the close of the cooperative's most recently audited fiscal year, the board shall have the discretion to pay previously allocated capital credits in any amount or manner the board deems appropriate.

Ark. Code Ann. § 23-17-217 Meetings of members.

(a) Meetings of members may be held at such place as may be designated by the board. In the absence of any such provision, all meetings shall be held in the principal office of the cooperative in this state. (b) Annual meetings of the members shall be held at such time as may be designated by the board. Failure to hold the annual meeting at the designated time shall not work forfeiture or dissolution of the cooperative. (c) Special meetings of the members may be called by the president, or by the board of directors, and shall be called by the president upon petition signed by not less than ten percent (10%) of all the members. (d) Written or printed notice, containing the place, day, and hour of the meeting of members and, in case of special meeting, the purpose for which the meeting is called, shall be delivered not fewer than five (5) days nor more than sixty (60) days before the date of the meeting, either personally or by mail, to each member of record entitled to vote as a member at the meeting. If mailed, the notice shall be deemed to be delivered when deposited in the United States mails, with postage prepaid, in a sealed envelope addressed to the member at his or her address as it appears on the records of the cooperative. (e) Each member present in person at any meeting shall be entitled to one (1), and only one (1), vote on each matter submitted to a vote at a meeting of the members, but voting by mail or proxy may be provided for in the bylaws. Notwithstanding, the bylaws may require each member to vote in person on certain matters. (f)(1) Unless the bylaws prescribe the presence of a greater percentage of the number of members for a quorum, a quorum for the transaction of business at all meetings of the members of the cooperative shall be ten percent (10%) of all members, and, of a cooperative having more than five hundred (500) members, a quorum shall be not fewer than fifty (50) members. However, in the event a cooperative is unable to attain a quorum at its annual meeting, the board of directors in the next annual meeting or in a notice of special meeting may declare that the number of members present at the meeting shall constitute a quorum for the purpose of conducting business. (2) If less than a quorum is present at any meeting, a majority of those present in person or by proxy may adjourn the meeting from time to time without further notice.

Ark. Code Ann. § 23-17-218 Board of directors generally.

(a) The business affairs of a cooperative shall be managed by a board of directors consisting of not fewer than five (5) in number, which shall exercise all the powers of a cooperative except those which are conferred upon the members by this subchapter, by the articles of incorporation, by its certificate of incorporation, or by the bylaws of the cooperative. (b) Each of the directors shall be a member of the cooperative. (c)(1) The bylaws shall prescribe the number of directors, their qualifications other than those prescribed in this subchapter, the manner of holding meetings of the board of directors, and the manner of electing successors to directors who resign, die, are removed, or otherwise are incapable of acting. (2) The bylaws may also provide for the removal of directors from office and for the election of their successors. (d) The directors shall be members of the cooperative and shall be entitled to such compensation, benefits, and reimbursement for expenses actually and necessarily incurred.

Ark. Code Ann. § 23-17-219 Board of directors — Elections — Term of office — Vacancies.

(a) The directors of a cooperative shall hold office until their terms expire or until their successors are elected and qualified. (b)(1) At each annual meeting or, in case of failure to hold the annual meeting as specified in the bylaws, at a special meeting called for that purpose, the members shall elect directors to hold office for the term for which they are elected and until their successors have been elected and qualified. (2) Instead of electing all of the directors annually, the bylaws may provide for staggered terms of no longer than nine (9) years for each director if approved at a meeting of the members. (c) Any vacancy occurring in the board shall be filled by the remaining directors. Such persons so elected to fill a vacancy shall serve until the board of directors shall call for an election to elect a successor, and until the successor has been elected and qualified.

Ark. Code Ann. § 23-17-220 Board of directors — Meetings.

(a) Meetings of the board of directors, regular or special, shall be held at such place and upon such notice as the bylaws may prescribe. (b)(1) Neither the business to be transacted at, nor the purpose of, any regular meeting of the board of directors need be specified in the notice or waiver of notice of the meeting. (2) The notice of a special meeting of the board shall state the purpose of and the business to be transacted at the meeting. (c)(1) A majority of the board of directors shall constitute a quorum for the transaction of business unless a greater number is required by the articles of incorporation or by the bylaws. (2) The act of a majority of the directors present at a meeting at which a quorum is present shall be the act of the board unless the act of a greater number is required by the articles of incorporation or by the bylaws.

Ark. Code Ann. § 23-17-221 Officers, agents, and employees.

(a)(1)(A) The board of directors shall elect a president, a vice president, a secretary, and a treasurer, and one (1) person may be elected to the office of secretary-treasurer. (B) The board of directors may elect such other officers as it deems necessary. (2) The powers, duties, and terms of office of the foregoing officers shall be provided for in the bylaws. (b) The board of directors may appoint such other officers, agents, and employees as it deems necessary and fix their powers, duties, and compensation. (c) Any officer, agent, or employee elected or appointed by the board of directors subject to any contracts validly entered into by the cooperative may be removed by it whenever, in its judgment, the best interests of the cooperative will be served.

Ark. Code Ann. § 23-17-222 Executive committee.

(a) By its bylaws, any cooperative may provide for an executive committee to be elected from and by its board of directors. (b) To such committee may be delegated the management of the current and ordinary business of the cooperative and such other duties as the bylaws may prescribe, but the designation of the committee and the delegation of authority thereto shall not operate to relieve the board of directors or any member thereof of any responsibility imposed upon it or him or her by this subchapter.

Ark. Code Ann. § 23-17-223 Waiver of notice of meeting.

(a) Any person entitled to notice of a meeting may waive notice in writing either before or after the meeting. (b) If any person attends a meeting, his or her attendance shall constitute a waiver of notice of the meeting, unless the person participates therein solely to object to the transaction of any business because the meeting has not been lawfully called or convened.

Ark. Code Ann. § 23-17-224 Consolidation.

(a)(1) Any two (2) or more cooperatives may enter into an agreement subject to the approval by the required authorities, if any, for the consolidation of the cooperatives. (2) The agreement shall set forth the terms and conditions of the consolidation, the name and the proposed consolidated cooperative, the number of its directors, which shall be not fewer than five (5), the time of the annual meeting and election, and the names of at least five (5) persons to be directors until the first annual meeting. (3) Unless otherwise provided in the bylaws of either of the proposed consolidating cooperatives, if the agreement is approved by the votes of a majority of the members of each cooperative present in person or by proxy at any regular meeting, or at any special meeting of its members called for that purpose, the directors named in the agreement shall sign and acknowledge as incorporators articles of consolidation conforming substantially to the original articles of incorporation of the cooperatives organized under this subchapter. (b) The articles of consolidation shall be executed, acknowledged, filed, and recorded in the same manner as the articles of incorporation of a cooperative organized under this subchapter. (c) As soon as the Secretary of State shall have accepted the articles of consolidation for filing and recording and issued a certificate of consolidation, the proposed consolidated cooperative described in the articles as its designated name shall be and become a body corporate with all of the powers of a cooperative as originally organized hereunder. (d) All of the rights, privileges, immunities, and franchises, and all real and personal property, including, without limitation, applications for membership, all debts due on whatever account, and all other choses in action of each of the consolidating cooperatives shall be deemed to be transferred to and vested in the new cooperative without further act or deed. (e) The new cooperative shall be responsible and liable for all of the liabilities and obligations of each of the consolidating cooperatives. Any claim existing or actions or proceeding pending by or against any of the consolidating cooperatives may be prosecuted as if the consolidation had not taken place, but the new cooperative may be substituted in its place. (f) Neither the rights of creditors nor any liens upon the property of any of the consolidating cooperatives shall be impaired by the consolidation.

Ark. Code Ann. § 23-17-225 Dissolution.

(a) Any cooperative may dissolve by a two-thirds (2/3) vote of the members present at any regular meeting or at any special meeting of its members called for that purpose or by the vote required in the bylaws, whichever requires the greater number. (b) A certificate of dissolution shall be signed by the president or vice president, attested by the secretary, certifying to the dissolution and stating that they have been authorized to execute and file the certificate by votes cast in person by a majority of the members of the cooperative. (c) A certificate of dissolution shall be executed, acknowledged, filed, and recorded in the same manner as the original articles of incorporation of a cooperative organized under this subchapter. (d) As soon as the Secretary of State accepts the certificate of dissolution for filing and recording and issues a certificate of dissolution, the cooperative shall be deemed to be dissolved. (e) Immediately upon the filing of the certificate with the Secretary of State, the board of directors shall cause notice of the dissolution and winding-up proceedings to be mailed to each known creditor of and claimant against the cooperative and shall publish a copy of the notice of dissolution for one (1) week in a newspaper of bona fide circulation published in the county wherein the home office of the cooperative is located. (f) However, the cooperative shall continue for the purpose of collecting its assets and paying, satisfying, and discharging any outstanding obligations, and for the purpose of doing all other acts required to adjust and wind up its business affairs, and may sue and be sued in its corporate name. (g) Any assets remaining after all obligations of the cooperative have been satisfied or discharged, or their payment provided for, shall be used: (1) In redeeming outstanding shares of capital stock, if any, at the par value thereof, plus accrued and unpaid dividends thereon; (2) In redeeming certificates of memberships; and (3) In paying to members and patrons of the cooperative, at the time of the filing of the certificate of dissolution, pro rata patronage profits. (h)(1) Any cooperative which purports to have been incorporated or reincorporated as the result of a consolidation under this subchapter but which has not complied with all the requirements for regular corporate existence, nevertheless may file a certificate of dissolution in the same manner as a validly existing cooperative. (2) A certificate of dissolution in such a case shall be authorized, executed, and filed in the same manner and shall have the same effect as is provided for validly existing cooperatives. The cooperative shall distribute its assets in the same manner as is provided for validly existing cooperatives.

Ark. Code Ann. § 23-17-226 Filing fees.

The Secretary of State shall charge and collect for: (1) Filing articles of incorporation and issuing a certificate of incorporation — ten dollars ($10.00); (2) Filing articles of amendment and issuing a certificate of amendment — ten dollars ($10.00); (3) Filing articles of consolidation and issuing a certificate with respect to consolidation — ten dollars ($10.00); and (4) Filing a certificate of dissolution — one dollar ($1.00).

Ark. Code Ann. § 23-17-228 Nonprofit operation.

(a) Each cooperative shall be operated on a nonprofit basis for the mutual benefit of its members and patrons. (b)(1) The bylaws of a cooperative or its contracts with members and patrons shall contain provisions consistent with § 23-17-229 relative to the disposition of revenues and receipts as may be necessary and appropriate to establish and maintain its nonprofit cooperative character. (2) In the case of a cooperative authorized to issue shares of stock, the bylaws and contracts shall provide that no moneys shall be paid, except after the declaration or payment of dividends on the outstanding shares of stock in accordance with the certificate of incorporation of the cooperative, and the bylaws or contracts shall otherwise be consistent with cooperatives' obligations in respect to the shares of stock. (c) Subject to the provisions of this subchapter, the articles of incorporation of the cooperative, and the bylaws of the cooperative, the cooperative's board of directors shall have the authority to determine the qualifications for a person to be considered a “patron” of the cooperative.

Ark. Code Ann. § 23-17-229 Use of revenues.

The revenues of the cooperative shall be devoted to: (1) The payment of operating and maintenance expenses, the rendition of efficient service, and the creation of adequate depreciation reserves sufficient to maintain the investment in facilities; (2) The payment of the principal and interest on outstanding obligations; (3) The payment of dividends on stock issued and outstanding, if any; (4) The creation of such reserves for improvements, construction, and contingencies as the board from time to time may prescribe; and (5) Any other purposes authorized by law.

Ark. Code Ann. § 23-17-230 Taxation — Exemptions.

Cooperatives formed under this subchapter shall continue to be exempt from all other excise taxes of whatsoever kind or nature except the Arkansas gross receipts tax under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the Arkansas compensating tax under the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.

Ark. Code Ann. § 23-17-231 Mortgage, pledge, or other disposition of property.

(a) The board of directors of a cooperative shall have full power and authority, without authorization by the members thereof, to authorize the execution and delivery of leases, mortgages, or deeds of trust of, or by pledge or encumbering of, any or all of the property, assets, rights, privileges, licenses, franchises, and permits of the cooperative whether already acquired or to be acquired, and wherever situated, as well as the revenues thereof, all upon such terms and conditions as the board of directors shall determine, to secure any indebtedness of the cooperative to the United States or any agency or instrumentality thereof or to acquire another cooperative formed and operated under this subchapter. (b) A cooperative may not sell or otherwise dispose of all or a substantial portion of its property unless the sale or other disposition is authorized by the affirmative vote of not less than two-thirds (2/3) of all the members of the cooperative.

Ark. Code Ann. § 23-17-232 Recordation of mortgages — Effect thereof.

(a) Any mortgage, deed of trust, or other instrument executed by a cooperative which affects real and personal property and which is recorded in the real property records in any county in which the property is located or is to be located shall have the same force and effect as if the mortgage, deed of trust, or other instrument were also recorded, filed, or indexed, as provided by law in the proper office in the county, as a mortgage of personal property. (b)(1) All after-acquired property of the cooperative described or referred to as being mortgaged or pledged in any mortgage, deed of trust, or other instrument shall become subject to the lien thereof immediately upon the acquisition of the property by the cooperative, whether or not the property was in existence at the time of the execution of the mortgage, deed of trust, or other instrument. (2) The recordation of such mortgage, deed of trust, or other instrument shall constitute notice and otherwise have the same effect with respect to the after-acquired property as it has under the laws relating to recordation, with respect to property owned by the cooperative at the time of the execution of the mortgage, deed of trust, or other instrument and therein described or referred to as being mortgaged or pledged thereby. (c) The lien upon personal property of any mortgage, deed of trust, or other instrument after recordation thereof shall continue in existence and of record for the period of time specified therein without the refiling thereof, or the filing of any renewal certificate, affidavit, or other supplemental information required by the laws relating to the renewal, maintenance, or extension of liens upon personal property.

Ark. Code Ann. § 23-17-233 Nonliability of members and shareholders for debts of cooperatives.

No member or shareholder shall be liable or responsible for any debts of the cooperative, and the property of the members and shareholders shall not be subject to execution therefor.

Ark. Code Ann. § 23-17-235 Liabilities of connecting companies or cooperatives.

No cooperative shall be liable for damage resulting from loss, interruption, or diminished quality of service due to earthquake, flood, storm, infestation, pestilence, civil insurrection, act of war, act of terrorism, software or hardware failure, malfunction, or error, or any cause beyond the control of the cooperative.

Ark. Code Ann. § 23-17-236 Construction standards.

(a) Construction of telecommunications lines and facilities by a telecommunications company or cooperative as a minimum requirement shall comply with the standards of the National Electrical Safety Code of the Institute of Electrical and Electronics Engineers in effect at the time of the construction or requirements set up by the Arkansas Public Service Commission. Construction shall be in such manner and according to such specifications as will avoid interference with, or hazards to, existing telecommunications lines, facilities, or systems. In any litigation in a court of record, any violation by a telecommunications company or cooperative of the National Electrical Safety Code or requirements established by the commission shall merely be evidence of negligence. (b) If a cooperative places or utilizes any telecommunications line, cable, or facility over, upon, or under lands owned or occupied by a nongovernmental entity with eminent domain rights under Arkansas law, the nongovernmental entity shall be entitled to just compensation of ten cents (10¢) per linear foot traversed on such entity's land. The reasonableness of the just compensation for use of the nongovernmental entity's land shall be presumed. This presumption shall be rebuttable, but in no event shall the just compensation paid by the cooperative exceed the diminution in value of the land traversed resulting from the use. (c) Whenever a cooperative shall have placed any telecommunications line, cable, or facility upon, under, or above private lands, as title shall be reflected in the deed records of the county in which the lands lie, no entity having power of eminent domain shall exercise the power or conduct roadway expansion, relocation activities, or roadside excavation activities in such a manner as to reasonably require relocation of the telecommunications line, cable, or facility unless: (1) The written consent of the cooperative is first obtained; or (2) The cooperative is paid the reasonable cost of replacing and relocating the line, cable, or facility. The payment shall be considered just compensation to the cooperative.

Ark. Code Ann. § 23-17-237 Limitation of actions.

No suit shall be brought against any telecommunications company or cooperative by the reason of the installation, use, or maintenance of telecommunications lines, poles, equipment, or fixtures on any real property, or within any right-of-way of any public way, unless it is commenced within two (2) years after the cause of action has accrued.

Ark. Code Ann. § 23-17-238 Indemnification of directors, officers, employees, or agents — Insurance.

(a)(1) A cooperative shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the cooperative, by reason of the fact that he or she is or was a director, officer, employee, or agent of the cooperative or is or was serving at the request of the cooperative as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against judgments, fines, expenses, including attorney's fees, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such an action, suit, or proceeding, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the cooperative and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. (2) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interest of the cooperative and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful. (b) A cooperative shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the cooperative to procure a judgment in its favor by reason of the fact that he or she is or was a director, officer, employee, or agent of the cooperative or is or was serving at the request of the cooperative as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection with the defense or settlement of such an action or suit if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the cooperative, except that no indemnification shall be made in respect of any claim, issue, or matter as to which the person shall have been adjudged to be liable to the cooperative, unless and only to the extent that the circuit court or the court in which the action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the circuit court or such other court shall deem proper. (c) To the extent that a director, officer, employee, or agent of a cooperative has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in subsections (a) and (b) of this section, or in defense of any claim, issue, or matter therein, he or she shall be indemnified against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection therewith. (d) Any indemnification under subsections (a) and (b) of this section, unless ordered by a court, shall be made by the cooperative only as authorized in the specific case upon a determination that indemnification of the director, officer, employee, or agent is proper in the circumstances because he or she has met the applicable standard of conduct set forth in subsections (a) and (b) of this section. Such a determination shall be made: (1) By the board of directors by a majority vote of a quorum consisting of directors who were not parties to such an action, suit, or proceeding; (2) If such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion; or (3) By the members. (e) Expenses incurred by an officer or director in defending a civil or criminal action, suit, or proceeding may be paid by the cooperative in advance of final disposition of such an action, suit, or proceeding upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it shall ultimately be determined that he or she is not entitled to be indemnified by the cooperative as authorized in this section. The expenses incurred by other employees and agents may be so paid upon such terms and conditions, if any, as the board of directors deems appropriate. (f) The indemnification and advancement of expenses provided by or granted pursuant to the other subsections of this section shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of members or disinterested directors, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such an office. (g) The indemnification and advancement of expenses provided by, or granted pursuant to, this section shall continue, unless otherwise provided when authorized or ratified, as to a person who has ceased to be a director, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of such a person. (h) A cooperative shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the cooperative, or is or was serving at the request of the cooperative as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the cooperative would have the power to indemnify him or her against such liability under the provisions of this section. (i) (1) For purposes of this section, references to: (A) “The cooperative” shall include, in addition to the resulting cooperative, and constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so that any person who is or was a director, officer, employee, or agent of the constituent corporation, or is or was serving at the request of the constituent corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, shall stand in the same position under the provisions of this section with respect to the resulting or surviving cooperative as he or she would have with respect to the constituent corporation if its separate existence had continued; (B) “Other enterprises” shall include employee benefit plans; (C) “Fines” shall include any excise taxes assessed on a person with respect to an employee benefit plan; and (D) “Serving at the request of the cooperative” shall include any service as a director, officer, employee, or agent of the cooperative which imposes duties on, or involves services by, the director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries. (2) A person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the cooperative” as referred to in this section.

Ark. Code Ann. § 23-17-239 Standards of conduct for directors — Actions taken without board meeting — Conflicts of interest — Definition.

(a) A director shall discharge his or her duties as a director, including his or her duties as a member of a committee: (1) In good faith; (2) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and (3) In a manner he or she reasonably believes to be in the best interests of the cooperative. (b) In discharging his or her duties, a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by: (1) One (1) or more officers or employees of the cooperative whom the director reasonably believes to be reliable and competent in the matters presented; (2) Legal counsel, public accountants, engineers, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or (3) A committee of the board of directors of which he or she is not a member, if the director reasonably believes the committee merits confidence. (c) A director is not acting in good faith if he or she has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (b) of this section unwarranted. (d) Unless the articles of incorporation or bylaws provide otherwise, action required or permitted by this chapter to be taken at a board of directors' meeting may be taken without a meeting if the action is taken by all members of the board. The action must be evidenced by one (1) or more written consents describing the action taken, signed by each director, and included in the minutes or filed with the corporate records reflecting the action taken. (e) Action taken under this section is effective when the last director signs the consent, unless the consent specifies a different effective date. A consent signed under this section has the effect of a meeting vote and may be described as such in any document. (f)(1) A “conflict-of-interest transaction” is a transaction with the cooperative in which a director of the cooperative has direct or indirect interest. A conflict-of-interest transaction is not voidable by the cooperative solely because of the director's interest in the transaction if any one (1) of the following is true: (A) The material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors and the board of directors or committee authorized, approved, or ratified the transaction; (B) The material facts of the transaction and the director's interest were disclosed or known to the members entitled to vote and they authorized, approved, or ratified the transaction; or (C) The transaction was fair to the cooperative. (2) For purposes of this section, a director of the cooperative has an indirect interest in a transaction and it should be considered by the board of directors of the cooperative if: (A) Another entity in which he or she has a material financial interest or in which he or she is a general partner is a party to the transaction; or (B) Another entity of which he or she is a director, officer, or trustee is a party to the transaction. (3) For purposes of subdivision (f)(1)(A) of this section, a conflict-of-interest transaction is authorized, approved, or ratified if it receives the affirmative vote of a majority of the directors on the board of directors, or on the committee, who have no direct or indirect interest in the transaction, but a transaction may not be authorized, approved, or ratified under this section by a single director. If a majority of the directors who have no direct or indirect interest in the transaction vote to authorize, approve, or ratify the transaction, a quorum is present for the purpose of taking action under this subsection. The presence of, or a vote cast by, a director with a direct or indirect interest in the transaction does not affect the validity of any action taken under subdivision (f)(1)(A) of this section if the transaction is otherwise authorized, approved, or ratified as provided in this subsection. (4) For purposes of subdivision (f)(1)(B) of this section, a conflict-of-interest transaction is authorized, approved, or ratified if it receives the vote of a majority of the members entitled to vote under this subsection. Proxies voted under the control of a director who has a direct or indirect interest in the transaction, and proxies voted under the control of an entity described in subdivision (f)(2)(A) of this section, may not be counted in a vote of members to determine whether to authorize, approve, or ratify a conflict-of-interest transaction under subdivision (f)(1)(B) of this section. The vote of those members, however, is counted in determining whether the transaction is approved under other sections of this chapter. A majority of the members, whether or not present, that are entitled to vote on the transaction under this subsection constitutes a quorum for the purpose of taking action under this section.

Ark. Code Ann. § 23-17-240 Unclaimed capital credits and stock.

(a) When a cooperative formed under this subchapter declares capital credits and any capital credit which remains unclaimed one (1) year after notice of the capital credit was transmitted to the last known address of the beneficiary of the credit: (1) The cooperative shall not be liable for the credit; and (2) The credit shall not be deemed unclaimed or abandoned property under § 18-28-201 et seq. (b)(1) When a cooperative formed under this subchapter has issued shares of stock and subsequent to that time has declared by providing notice to all shareholders of record that the cooperative is redeeming the stock by repurchase, then one (1) year after the notice has been sent to the last known address of all shareholders of record: (A) The cooperative shall not be liable for the redemption or repurchase value of the stock; and (B) The stock not redeemed and repurchased shall have no value or rights in the cooperative. (2) The stock shall not be deemed unclaimed or abandoned property under § 18-28-201 et seq. (c) References in the Rural Telecommunications Cooperative Act, § 23-17-201 et seq., to “this subchapter” and references in § 23-17-101 et seq. to “this chapter” shall be deemed to also reference this section.

Ark. Code Ann. § 23-17-241 Opting out of underground damage coverage.

(a) Any cooperative established under this subchapter may opt out of coverage under the Arkansas Underground Facilities Damage Prevention Act, § 14-271-101 et seq., by providing written notice to the Arkansas Public Service Commission by first class mail. (b) Any references in this section and §§ 23-17-201 — 23-17-240 and 23-17-242 to “this subchapter” and any references in § 23-17-101 et seq. to “this chapter” shall be deemed to also reference this section.

Ark. Code Ann. § 23-17-242 Cooperative acquiring another cooperative.

Any cooperative organized prior to January 1, 1979, under the provisions of this subchapter may enter into an agreement with any other cooperative so organized for one of the cooperatives to acquire the other cooperative, subject to the following provisions: (1) Any agreement between cooperatives for one to acquire another shall be in writing and shall set forth the terms and conditions of the acquisition; (2) Unless otherwise provided in the bylaws of either of the cooperatives who are party to such an agreement, the agreement shall be approved on behalf of the cooperative being acquired upon majority vote of the members of the cooperative being acquired present in person or by proxy at any regular meeting of the members, or at any special meeting of the members called for the purpose of voting on the agreement. The agreement shall only be approved on behalf of the acquiring cooperative upon majority vote of the directors of the acquiring cooperative; (3) The acquiring cooperative may elect to form a wholly owned subsidiary corporation, or utilize an existing wholly owned subsidiary corporation, which subsidiary need not itself be a cooperative, to own and operate the cooperative being acquired. The validity of the acquisition shall not be affected by the fact that legal title to the cooperative being acquired is taken in the name of a wholly owned subsidiary by the acquiring cooperative; and (4) Neither the rights of creditors nor the liens upon the property of either the acquiring cooperative or the cooperative being acquired shall be impaired by the acquisition.

Ark. Code Ann. § 23-17-301 Title.

This subchapter shall be known and may be cited as the “Universal Telephone Service Act”.

Ark. Code Ann. § 23-17-302 Legislative findings and declarations.

The General Assembly finds and declares that changes in pricing for telephone services mandated by the Federal Communications Commission and made necessary by the divestiture of Southwestern Bell Telephone Company from American Telephone and Telegraph Company will cause significant increases in the cost of local exchange telephone service which could force some local exchange telephone customers to discontinue service. The public interest requires that the extent of such rate increases be ameliorated by the creation of a statewide fund that will partially offset such rate increases. The purpose of the fund created by this subchapter is to ensure a smooth and nondisruptive transition from the present pricing system to the system dictated by the Federal Communications Commission and the divestiture and to ensure that rates for local telephone service are at reasonable levels.

Ark. Code Ann. § 23-17-303 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Commission” means the Arkansas Public Service Commission; (2) “Interexchange carriers” includes persons, corporations, or other organizations which provide communications services which interconnect with local exchanges under provisions of the interstate and intrastate access charges tariffs and may include such other persons, corporations, or organizations engaged in interexchange communication services as the commission may find necessary for the successful administration of the fund established in § 23-17-304; (3) “Interexchange communication services” means all services whereby interexchange carriers transmit voice, data, or other messages within Arkansas, whether or not the transmission is at any point on the facilities of a local exchange carrier; and (4) “Local exchange carriers” means persons, corporations, or other organizations which provide local exchange telephone service as defined by the commission.

Ark. Code Ann. § 23-17-304 Universal Telephone Service Fund created — Contents.

(a) There is created the Universal Telephone Service Fund to be established by assessing upon all interexchange carriers operating in this state a charge on interexchange communication services based on usage, revenue, volume, or other appropriate factors. (b)(1) The amount of the charge shall be determined by the Arkansas Public Service Commission after notice and hearing. (2) The Arkansas Public Service Commission shall coordinate the development of the structure and level of the charge, as well as the support to be provided through the Universal Telephone Service Fund, with the interstate Universal Service Fund or similar arrangement established by the Federal Communications Commission so that the Universal Telephone Service Fund is not administered inconsistently with the Federal Communications Commission's Universal Service Fund or similar arrangements. (c) The amounts shall be remitted to the Arkansas Public Service Commission under such reasonable rules as the Arkansas Public Service Commission may prescribe and shall be deposited by the Arkansas Public Service Commission into an account, separate from all other funds, designated as the “Universal Telephone Service Fund”.

Ark. Code Ann. § 23-17-305 Conditional effective date.

The Universal Telephone Service Fund shall be effective on the date the interstate Universal Service Fund or similar arrangement is established by the Federal Communications Commission unless the Arkansas Public Service Commission, prior to that date and after hearing, finds that the circumstances upon which this subchapter is predicated have so substantially changed as to render the Universal Telephone Service Fund unnecessary or impracticable.

Ark. Code Ann. § 23-17-306 Allocation of fund.

(a) The Arkansas Public Service Commission shall allocate the Universal Telephone Service Fund among all local exchange carriers operating in Arkansas in such a manner as to moderate the disruptive effects of changes in methods of pricing of telephone services and to hold prices of local exchange telephone service to levels which will ensure, insofar as it is feasible to do so, that a maximum number of subscribers may maintain affordable local telephone service. (b) The allocation shall be made after a hearing at which all local exchange carriers and other interested parties may be heard and may be modified or adjusted by the commission, after hearing, at any time circumstances indicate a need for such modification. (c) The commission by rule may establish standard guidelines for allocation methodology. (d) The entire fund, after reasonable costs of administration are applied, shall be allocated among the local exchange carriers.

Ark. Code Ann. § 23-17-307 Administration of fund.

The Arkansas Public Service Commission may collect, administer, and distribute the Universal Telephone Service Fund, itself, or it may delegate to a trustee or other agent acting under its supervision the administration and distribution of the fund upon such conditions and security as the commission may require.

Ark. Code Ann. § 23-17-401 Title.

This subchapter shall be known and may be cited as the “Telecommunications Regulatory Reform Act of 2013”.

Ark. Code Ann. § 23-17-402 Legislative findings.

It is the intent of the General Assembly in enacting this subchapter to: (1) Provide for a system of regulation of telecommunications services, consistent with the federal act, that assists in implementing the national policy of opening the telecommunications market to competition on fair and equal terms, modifies outdated regulation, eliminates unnecessary regulation, and preserves and advances universal service; (2) Recognize that a telecommunications provider that serves high-cost rural areas or exchanges faces unique circumstances that require special consideration and funding to assist in preserving and promoting universal service; (3) Recognize that the: (A) Widespread and timely deployment of broadband infrastructure is vital to the economic, educational, health, and social interests of Arkansas and its citizens; and (B) Arkansas High Cost Fund has enabled eligible telecommunications carriers to accelerate and promote the incremental extension and expansion of broadband services and other advanced services in rural or high-cost areas of the state beyond what would normally occur, and broadband services are now available in dozens of new communities to thousands of Arkansans who otherwise would not have access to broadband services and its benefits; (4)(A) Recognize differences between the small and large incumbent local exchange carriers, that there are customer-owned telephone cooperatives and small locally owned investor companies, and that it is appropriate to provide incentives and regulatory flexibility to allow incumbent local exchange carriers that serve the rural areas to provide existing services and to introduce new technology and new services in a prompt, efficient, and economical manner. (B) The General Assembly finds that the Arkansas Public Service Commission, when promulgating rules and regulations, should take into consideration the differences in operating conditions in the large and small incumbent local exchange carriers and the burdens placed on small carriers because of regulation; and (5)(A) Recognize that in areas of the state served by electing companies, telecommunications connections utilizing unregulated technologies such as wireless and Voice over Internet Protocol greatly outnumber traditional wireline connections that remain regulated by the commission. (B) The General Assembly finds that the removal of quality-of-service regulation of wireline services provided in the competitive exchanges of electing companies will serve to encourage private-sector investment in the telecommunications marketplace.

Ark. Code Ann. § 23-17-403 Definitions.

As used in this subchapter: (1) “Access line” means a communications facility extending from a customer's premises to a serving central office comprising a subscriber line and, if necessary, a trunk facility; (2) “Access minute”, unless otherwise defined by the Arkansas Public Service Commission, means the measurement of usage to provision communications between: (A) A customer premises and an interexchange carrier's point of interconnection with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination and termination of interexchange long distance traffic; and (B) A customer premises and another LEC's point of termination with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination and termination of interexchange long distance traffic; (3)(A) “Affiliate” means any entity that, directly or indirectly, owns or controls, is owned or controlled by, or that is under common ownership or control with another entity. (B) For the purpose of this definition, “owns or controls” means holding at least a majority of the outstanding voting power; (4) “AICCLP member” means an ILEC that is eligible to be a member of the AICCLP after December 31, 2003, and that has not terminated its membership under § 23-17-416(f)(2); (5)(A) “AICCLP rate adjustment” means the local service rate adjustment, determined by the AICCLP administrator, that may be charged by each AICCLP member to its customers to recover a portion of its carrier common line net revenue requirement. (B)(i) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of the residential local exchange rate and extended area service additive is higher than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of fifty cents (50¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line. (ii) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of its residential local exchange rate and extended area service additive is lower than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of seventy-five cents (75¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line. (iii) If the amount due to an AICCLP member under § 23-17-416(h) is limited due to the annual one million three hundred thousand dollar ($1,300,000) cap under § 23-17-416(e)(8)(B)(i) and if the member's AICCLP rate adjustment and the amount due to the AICCLP member under § 23-17-416(h) do not allow the member to recover its common line net revenue requirement, the member may charge an additional amount for local rates to recover its carrier common line net revenue requirement; (6) “Annual unseparated unlimited loop requirement” means a financial algorithm calculated annually by NECA and USAC that includes all the loop investment, expenses, and other loop costs of providing service within the study area of an eligible telecommunications carrier; (7) “Arkansas Intrastate Carrier Common Line Pool” or “AICCLP” means the unincorporated organization of the providers of Arkansas telecommunications services, authorized by the commission and by state law, whose purpose is to manage billing, collection, and distribution of the carrier common line revenue requirements; (8) “Arkansas intrastate telecommunications services revenues” means the revenues of all carriers that are not ILECs, that are derived from end-users for telecommunications within Arkansas and telecommunications services provided within Arkansas, including messages that are switched or otherwise temporarily transported outside of Arkansas in the process of delivering the message within Arkansas; (9) “Average schedule company” means a company that uses a proxy established from a formula using the average costs of a group of companies rather than using the company's specific costs in reporting to NECA; (10) “Basic local exchange service” means the service provided to the premises of residential or business customers composed of the following: (A) Voice-grade access to the public switched network, with ability to place and receive calls; (B) Touch-tone service availability; (C) Flat-rate residential local service and business local service; (D) Access to emergency services (911/E911) where provided by local authorities; (E) Access to basic operator services; (F) A standard white-page directory listing; (G) Access to basic local directory assistance; (H) Access to long distance toll service providers; and (I) The minimum service quality as established and required by the commission on February 4, 1997; (11) “Carrier common line net revenue requirement” means the monthly variable funding requirement of an AICCLP member, which is calculated as the sum of the member's intrastate carrier common line revenue requirement, the member's terminating carrier common line expense based on its per-minute terminations on other ILECs, the member's Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense, and the member's share of AICCLP administrative fees, minus the sum of the carrier common line revenue, based on per-minute terminations received from other ILECs, carrier common line revenue received from underlying carriers for originating and terminating access minutes, the AICCLP rate adjustment, and the fixed ILEC retail billed minutes of use expense based on the data development period determination of average monthly retail billed minutes of use expense of the member; (12) “Commercial mobile service” means cellular, personal communications systems and any service regulated pursuant to Part 20 of the rules and regulations of the Federal Communications Commission, 47 C.F.R. Part 20, or any successor provisions; (13) “Commission” means the Arkansas Public Service Commission; (14) “Competing local exchange carrier” or “CLEC” means a local exchange carrier that is not an incumbent local exchange carrier; (15) “Data development period” means the time period in which the AICCLP members and initial exiting ILECs shall obtain relevant data necessary to: (A) Calculate the fixed amounts of retail billed minutes-of-use expense and to test and obtain reliability of the billing and reporting systems to be used by the AICCLP; and (B) Calculate the fixed carrier common line revenue shortfall for members required to exit the pool on December 31, 2003; (16) “Electing company” means a local exchange carrier that elects to be regulated pursuant to §§ 23-17-406 — 23-17-408; (17) “Eligible telecommunications carrier” or “ETC” means the local exchange carrier determined in accordance with § 23-17-405; (18) “Embedded investment” means the amount of investment in a telephone plant that has already been made by an incumbent local exchange carrier as of February 4, 1997; (19) “Exiting ILEC” means an ILEC that terminates its membership in the AICCLP under § 23-17-416(f); (20) “Extended area service” means an unlimited local service provided to the customer at a fixed rate that: (A) Is mandated by the commission at the election of customers within a local exchange area; (B) Provides one-way or two-way calling between basic local exchange service customers within the local exchange area of one (1) or more incumbent local exchange carriers; and (C) Is not included as part of basic local exchange service; (21) “Facilities” means any of the physical elements of the telephone plant that are needed to provide or support telecommunications services, including switching systems, cables, fiber optic and microwave radio transmission systems, measuring equipment, billing equipment, operating systems, billing systems, ordering systems, and all other equipment and systems that a telecommunications service provider uses to provide or support telecommunications services; (22) “FCC” means the Federal Communications Commission; (23) “Federal act” means the Communications Act of 1934, as amended; (24) “Fixed carrier common line revenue shortfall” means the total annual funding requirement of an ILEC that must exit the AICCLP under § 23-17-416(f)(1), which is calculated as the sum of an ILEC's intrastate carrier common line revenue requirement, the ILEC's terminating carrier common line expense based on its per-minute terminations on other ILECs, and the ILEC Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense, minus the sum of the carrier common line revenue, based on per-minute terminations received from other ILECs, carrier common line revenue received from underlying carriers for originating and terminating access minutes, and the fixed ILEC retail billed minutes of use expense based on the data development period determination of average monthly retail billed minutes of use expense of the ILEC; (25) “Fixed ILEC retail billed minutes of use expense” means the fixed determination of the average retail billed minutes-of-use expense paid to the AICCLP by the ILEC based upon the ILEC's three-month average retail billed minutes-of-use expense during its applicable data development period, as determined under § 23-17-416(h), exclusive of any retail billed minutes-of-use expense associated with retail billed minutes of uses provided by a toll reseller of an underlying carrier that is an ILEC; (26) “Government entity” includes without limitation all Arkansas state agencies, commissions, boards, authorities, and all Arkansas public educational entities, including school districts, and political subdivisions, including incorporated and unincorporated cities and towns and all institutions, agencies or instrumentalities of municipalities, consolidated utility districts, and county governments; (27) “ILEC Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense” means the charge assessed against an ILEC in proportion to the AICCLP credits that were eliminated by former § 23-17-404(e)(4)(D)(iv)(b); (28) “ILEC intrastate carrier common line revenue requirement” means the fixed annual payment that each ILEC was entitled to receive from the AICCLP, before any offsets or adjustments, as provided in the Arkansas Intrastate Carrier Common Line Pool tariff, as it existed before January 1, 2004; (29) “Incumbent local exchange carrier” or “ILEC” means, with respect to a local exchange area, a local exchange carrier, including successors and assigns, that is certified by the commission and was providing basic local exchange service on February 8, 1996; (30) “Interconnected VoIP service” has the meaning defined by 47 C.F.R. 9.3, as it existed on January 1, 2013; (31) “Interstate access charge pools” means the system, currently administered by the National Exchange Carrier Association, Inc., wherein participating local exchange carriers pool billed interstate access revenues; (32) “Local exchange area” means the geographic area, approved by the commission, encompassing the area within which a local exchange carrier is authorized to provide basic local exchange services and switched-access services; (33) “Local exchange carrier” or “LEC” means a telecommunications provider of basic local exchange service and switched-access service. The term does not include commercial mobile service providers; (34) “Local switching support” means funding to assist high-cost companies in recovering the costs of switching intrastate calls; (35) “National Exchange Carrier Association, Inc.,” or “NECA” means a corporation by that name or its successor that performs various administrative functions and procedural duties prescribed to it by the FCC and others; (36) “Network element” means a facility or equipment used in the provision of a telecommunications service. The term also includes features, functions, and capabilities that are provided by means of the facility or equipment, including subscriber numbers, databases, signaling systems, and information sufficient for billing and collection or used in the transmission, routing, or other provision of a telecommunications service; (37) “Resale” means the purchase of services by one (1) local exchange carrier from another local exchange carrier for the purpose of reselling those services directly or indirectly to an end-user customer; (38) “Rural telephone company” means a local exchange carrier defined as a rural telephone company in the federal act as of February 4, 1997; (39) “Special intrastate ILEC revenue” means the revenue a toll reseller pays to an ILEC when the ILEC provides toll services to the toll reseller; (40) “Study area” means a geographic area designated by the FCC and used by NECA or USAC for calculation of cost per loop within the geographic area's boundaries for federal high-cost loop support; (41) “Switched-access service” means the provision of communications between a customer premise and an interexchange carrier's point of interconnection with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination or termination of interexchange long distance traffic; (42) “Telecommunications provider” means any person, firm, partnership, corporation, association, or other entity that offers telecommunications services to the public for compensation; (43) “Telecommunications Providers Rules” or “TPRs” means those rules applicable to telecommunications providers that have been adopted by the commission; (44)(A) “Telecommunications services” means the offering to the public for compensation the transmission of voice, data, or other electronic information at any frequency over any part of the electromagnetic spectrum, notwithstanding any other use of the associated facilities. (B) The term does not include radio and television broadcast or distribution services, or the provision or publishing of yellow pages, regardless of the entity providing the services, or services to the extent that the services are used in connection with the operation of an electric utility system owned by a government entity; (45)(A) “Tier one company” means any incumbent local exchange carrier that, together with its Arkansas affiliates that are also incumbent local exchange carriers, provides basic local exchange services to greater than one hundred fifty thousand (150,000) access lines in the State of Arkansas on February 4, 1997. (B) Changes in designation of an incumbent local exchange carrier, or portions thereof, as a tier one company or non-tier one company may be effected by prior approval from the commission pursuant to § 23-17-411(i); (46) “Toll reseller” means a carrier that resells intrastate telecommunications services that are provided to the carrier by an underlying carrier; (47)(A) “Total customer access base” means the total of all eligible telecommunications carrier customer access lines within Arkansas of an entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with another entity. (B) For the purposes of subdivision (47)(A) of this section, “own” means to own an equity interest or the equivalent thereof of more than ten percent (10%); (48) “Underlying carrier” means a facilities-based CLEC or an interexchange carrier, other than an ILEC, that originates and terminates intrastate interexchange calls on the public switched network directly or through resale to a toll reseller or an ILEC that provides the toll services used by a toll reseller; (49) “Universal service” means those telecommunications services that are defined and listed in the definition of basic local exchange service until changed by the commission pursuant to § 23-17-404(e)(2)(A); (50) “Universal Service Administration Company” or “USAC” means a corporation under that name or its successor that performs various administrative and procedural duties prescribed to it by the FCC and others; (51) “Wire center” means the location of one (1) or more local switching systems, a point at which end user's loops within a defined geographic area converge; (52) “Wireless ETC” means a wireless eligible telecommunications carrier that is a commercial mobile service provider; and (53) “Wireline ETC” means a wireline eligible telecommunications carrier that is a local exchange carrier.

Ark. Code Ann. § 23-17-404 Preservation and promotion of universal service.

(a)(1) The Arkansas High Cost Fund (AHCF) is established by this section in order to promote and assure the availability of universal service at rates that are reasonable and affordable and to provide for reasonably comparable services and rates between rural and urban areas. (2) The AHCF shall provide funding to an eligible telecommunications carrier that provides basic local exchange services and other supported services using its own facilities or a combination of its own facilities and another carrier's facilities by the eligible telecommunications carrier within its study area. (3) The AHCF shall be designed to provide predictable, sufficient, and sustainable funding to eligible telecommunications carriers serving rural or high-cost areas of the state. (4) The AHCF shall also be used to accelerate and promote the incremental extension and expansion of broadband services and other advanced services in rural or high-cost areas of the state beyond what would normally occur and support the Lifeline Assistance Program to eligible low-income customers. (b)(1) The AHCF is to provide a mechanism to restructure the present system of telecommunication service rates in the state as provided herein, and all telecommunications providers, except as prohibited by federal law, shall be charged for the direct and indirect value inherent in the obtaining and preserving of reasonable and comparable access to telecommunications services in the rural or high-cost areas. The value and utility of access to and interconnection with the public switched network will be lessened if the rural or high-cost areas do not have comparable access and subscribership. (2)(A)(i) This AHCF charge for all telecommunications providers shall be proportionate to each provider's Arkansas intrastate retail telecommunications service revenues. (ii) If the AHCF administrator determines or receives a petition from two-thirds (2/3) of the AHCF participants stating that the Arkansas intrastate retail telecommunications services revenues are inadequate to fully fund the AHCF requirements, the AHCF administrator shall notify the Arkansas Public Service Commission and the commission shall open a docket that will develop and implement a plan to fully fund the AHCF requirements. (B) Because customers of the telecommunications providers that would pay the AHCF charge receive the benefits of a universal network, the telecommunications providers may surcharge their customers to recover the AHCF charges paid by the telecommunications provider. Therefore, the AHCF charge is not a tax and is not affected by state laws governing taxation. (C) For the purpose of assessing mobile telecommunications services, the AHCF administrator shall continue to assess only Arkansas intrastate retail telecommunications service revenues and only to the extent such revenues may be considered located in the State of Arkansas in accordance with the Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252. (D) For purposes of assessing interconnected VoIP service, to the extent permitted by federal law the funding from each contributing carrier shall be based on: (i) The total retail-billed Arkansas intrastate interconnected VoIP service revenues; or (ii) The Federal Communications Commission's decision In the Matter of Universal Service Contribution Methodology, FCC 10-185, released November 5, 2010, or another assessment methodology as required by federal law. (c)(1)(A) The Arkansas Public Service Commission shall delegate to a trustee, the “AHCF administrator”, the administration, collection, and distribution of the AHCF within forty-five (45) days of the effective date of the adoption of rules and procedures to implement the AHCF. (B) In evaluating responses to request for proposals for the AHCF administrator's position, the commission shall consider and give material weight to the applicant's: (i) Familiarity with Arkansas ETCs, Arkansas access rates, AICCLP history and procedures, and AHCF and AUSF history and procedures; and (ii) Personal availability to provide information and assistance to the General Assembly, telecommunications providers, and members of the public. (2)(A) The AHCF administrator shall enforce and implement all rules and directives governing the funding, collection, and eligibility for the AHCF. (B) As soon as practicable after the AHCF administrator is designated, he or she shall: (i) Promptly notify all Arkansas ETCs of the availability of AHCF support and accept requests for AHCF support from Arkansas ETCs; and (ii) Review and determine the accuracy and appropriateness of each request and advise the entity requesting the funds of his or her determination, including: (a) Eligibility for support; (b) The uncapped amount of support available; and (c) The actual support available after implementation of fund cap limitations. (C) The affected parties shall have thirty (30) days to request reconsideration by the commission of the AHCF administrator's determination, and the commission after notice and hearing, if requested, shall issue its opinion on the reconsideration within thirty (30) days after the request of reconsideration unless continued by the commission. (D) Persons aggrieved by the commission's opinion shall have the right to appeal the opinion in accordance with law. (d)(1) The AHCF administrator periodically shall establish and notify each telecommunications provider of the AHCF charge levels required to be paid by the telecommunications provider. (2) Any telecommunications provider that without just cause fails to pay the AHCF charge that is due and payable pursuant to this section after notice and opportunity for hearing shall have its authority to do business as a telecommunications provider in the State of Arkansas revoked by the commission. (3) The AHCF charge shall not be subject to any state or local tax or franchise fees. (e) After reasonable notice and hearing, the commission shall establish rules and procedures necessary to implement the AHCF. The commission shall implement the AHCF and make AHCF funds available to eligible telecommunications carriers beginning the first calendar month after one hundred fifty (150) days after March 19, 2007. In establishing and implementing the AHCF, the commission shall adhere to the following instructions and guidelines: (1)(A) AHCF funding shall be provided directly to eligible telecommunications carriers. (B)(i) Except in an exchange in which the electing company is authorized under § 23-17-407(d) to determine the rates for basic local exchange service and switched-access services under § 23-17-408(c), for an ETC to receive funds from the AHCF, the ETC shall agree to be subject to and comply with all telecommunications provider rules adopted by the commission, unless the commission finds the technology used by the ETC to provide telecommunications service makes a rule inapplicable. (ii) Except in any exchange in which the electing company is authorized under § 23-17-407(d) to determine the rates for basic local exchange service and switched-access services pursuant to § 23-17-408(c), each ETC shall be subject to all TPRs concerning application for service, refusing service, deposits, notices before disconnect, late payment penalties, protection for the elderly and individuals with disabilities, medical need for utility services, delayed payment agreements, and extended due dates. (iii) If an ETC seeks to participate in the AHCF program as a new funding recipient, the funding category applicable to the ETC shall be determined by the total customer access base of the ETC on the date of the application; (2)(A) The commission shall provide a report to the Legislative Council by October 31 of the year prior to a regular session of the General Assembly detailing any recommended changes to the universal service list of requirements that are to be supported by the AHCF. This list may be approved by the General Assembly, and if approved, the AHCF support to ETCs may be adjusted, due to the approved changes, to reflect an increase or decrease in the size of the AHCF by increasing or decreasing the overall financial cap on the AHCF to recover the cost of additions or revisions to the universal service list concurrent with any such revisions to the list of universal services identified in § 23-17-403. (B) In considering revisions to the universal service list, the commission shall consider the need for the addition or removal of a service to the list in order to maintain end-user rates for universal services that are reasonably comparable between urban and rural areas or to reflect changes in the type and quality of telecommunications services considered essential by the public as evidenced, for example, by those telecommunication services that are purchased and used by a majority of single-line urban customers. (C) A rate case proceeding or earning investigation or analysis shall not be required or conducted in connection with the recovery of the cost of additions or revisions or in connection with the administration of the AHCF; (3)(A)(i) The AICCLP members shall charge the rate under subdivision (e)(3)(B) of this section to underlying carriers. (ii) The ILECs shall charge a reciprocal rate to other ILECs. (iii) The commission may review the accuracy of the reciprocal rates and the per-access minute carrier common line rate charged under subdivision (e)(3)(B) of this section. (iv) If the AICCLP fails to provide an ILEC's carrier common line net revenue requirement, the ILEC may obtain concurrent recovery of the revenue loss from basic local exchange rates, intrastate access rate adjustments, or a combination thereof. Any recovery of revenue loss under this subdivision (e)(3)(A)(iv) shall not be subject to the caps on local rates under § 23-17-412. (B)(i) Through June 30, 2013, except as provided in this subdivision (e)(3)(B) and subdivisions (e)(4)(A) and (B) of this section, the intrastate carrier common line charges billed to ILECs and underlying carriers shall be determined at the rate of one and sixty-five hundredths cents (1.65¢) per intrastate access minute, exclusive of the amounts specified for funding the Extension of Telecommunications Facilities Fund and the Arkansas Calling Plan Fund. However, ILECs that are not AICCLP members may charge at a rate that is less than one and sixty-five hundredths cents (1.65¢) and may recover the difference between the actual rate charged and one and sixty-five hundredths cents (1.65¢) as allowed under § 23-17-416(b)(3). (ii) Beginning July 1, 2013, except as provided in this subdivision (e)(3)(B) and subdivisions (e)(4)(A) and (B) of this section, the intrastate carrier common line charges billed to ILECs and underlying carriers shall be determined at the rate of one and sixty-five hundredths cents (1.65¢) per originating intrastate access minute. However, ILECs that are not AICCLP members may charge at a rate that is less than one and sixty-five hundredths cents (1.65¢) per originating intrastate access minute and may recover the difference between the actual rate charged and one and sixty-five hundredths cents (1.65¢) as allowed under § 23-17-416(b)(3); (4)(A)(i)(a) There is created an allocation of AHCF funds to be known as the “Extension of Telecommunications Facilities Fund”. (b) A maximum of five hundred thousand dollars ($500,000) per year of AHCF funds shall be allocated to fund the Extension of Telecommunications Facilities Fund to assist in the extension of telecommunications facilities to citizens not served by the wire line facilities of an eligible telecommunications carrier. (ii)(a) There is created an AHCF allocation to be known as the “Arkansas Calling Plan Fund”. (b) The Arkansas Calling Plan Fund shall receive a maximum of four million five hundred thousand dollars ($4,500,000) per year to assist in funding the provision of calling plans in telephone exchanges in the state. (iii)(a) There is created an AHCF allocation to be known as the “Arkansas 911 Rural Enhancement Program Fund”. (b) The Arkansas 911 Rural Enhancement Program Fund shall receive a maximum of three million dollars ($3,000,000) per year to: (1) Advance the goals of universal service and help ensure that rural areas within the State of Arkansas have access to 911 services that are comparable to 911 services in urban areas within the state; and (2) Provide funding to: (A) The statewide Smart911 system established in Acts 2012, No. 213; (B) The SmartPrepare System; and (C) 911 administrative systems for emergency management under the Arkansas Emergency Services Act of 1973, § 12-75-101 et seq. (B)(i)(a) The Extension of Telecommunications Facilities Fund, the Arkansas Calling Plan Fund, and the Arkansas 911 Rural Enhancement Program Fund shall be paid through the Arkansas High Cost Fund. (b) Payments made under subdivision (e)(4)(B)(i)(a) of this section may exceed and are in addition to the limit provided by subdivision (e)(4)(E)(ii)(a) of this section. (ii) The AICCLP board, with the assistance of the administrator, shall allow recipients and payors to correct any errors concerning the AICCLP settlement process for corrections that are for the time period after December 31, 2003. (C)(i) An ETC may receive support from the AHCF in accordance with this subdivision (e)(4)(C) and subdivisions (e)(4)(D) and (E) of this section. (ii)(a) The formula is as follows for ETCs with fewer than five hundred thousand (500,000) access lines or customers: (1) The AHCF administrator shall determine the support for High Cost Loop Support by using the most current annual filing of annual unseparated unlimited loop revenue requirement cost per loop of the ETC's study area as developed each year by NECA and filed with USAC. For an ETC not submitting such information, the ETC shall submit equivalent information to the administrator for the administrator to calculate as to cost per loop for wireline or per customer for commercial mobile service providers. Unless the commission determines otherwise, the raw financial data submitted to the administrator to establish an alternate cost per loop shall be treated as confidential; (2) The AHCF administrator shall then subtract the per-loop federal high-cost loop support as developed each year by NECA and filed with USAC of the ETC's study area or alternatively the total high-cost loop support per loop or per customer as calculated by the AHCF administrator with data provided by the ETC; (3) The AHCF administrator shall also subtract the amount of three hundred forty-four dollars and forty cents ($344.40) per loop, due to the responsibility of each ETC to fund through local rates and other revenue such as AICCLP revenue requirements and access charges, to fund a significant portion of their cost per loop. Alternatively, the AHCF administrator shall subtract three hundred forty-four dollars and forty cents ($344.40) per loop or customer from ETCs not reporting loops and loop cost to NECA; (4) The AHCF administrator shall determine the high-cost support for each ETC by subtracting these reductions as set forth in this formula from the annual unseparated unlimited loop revenue requirement and apply it to the total number of loops in the ETC's study area as of December 31 of the preceding year that are eligible for support for federal universal service. As to ETCs not reporting loops within its study area, the AHCF administrator shall apply the reductions to the total number of loops or customers of the ETC eligible for support for federal universal service as of December 31 of the preceding year; and (5) The remaining balance, if positive as to each ETC, shall be the ETC's loop support element to support an ETC's high cost loops. As to ETCs funded based upon customers, the remaining balance, if positive, shall be called the “customer support element”. (b)(1) The AHCF administrator shall determine local switching support (LSS) of each ETC using the most current annual financial data submitted to NECA and calculated by USAC and applying the following procedure: (2) The AHCF administrator then shall multiply the available high-cost support for each eligible wire center by the number of lines reported to the AHCF administrator by the carrier as of December 31 of the preceding year. Eligible wire centers shall be wire centers with three thousand (3,000) access lines or less as of March 19, 2007; and (3) The total of the calculations by the AHCF administrator for all eligible wire centers shall be the high-cost support available to the ETC, as limited by cap restrictions. (iii) For each ETC that does not have an individually calculated local switching support amount, the AHCF administrator shall calculate a local switching support amount by using an average of all ETCs within its size group that have an established local switching amount; (D) The AHCF administrator shall then divide the total LSS revenue requirement for each ETC by the total number of loops in the ETC's study area as of December 31 of the preceding year that are eligible for support for federal universal service; (E) The AHCF administrator shall then calculate the local switching support (LSS) to be recovered by multiplying the total LSS revenue requirement per loop as calculated in subdivision (e)(4)(C)(ii)(b)(1)(D) of this section by fifteen percent (15%); and (F) The sum of subdivision (e)(4)(C)(ii)(b)(1)(E) of this section as to each ETC, if positive, shall be the ETC's local switching support element. (i) Based on the fully allocated cost of the affected ETCs; and (ii) Effective as of the next annual determination process date, as established by the commission. (iii)(a) For ETCs with five hundred thousand (500,000) lines or more on or after December 31, 2010, support shall be determined using the following procedure: (b) The support provided by the AHCF shall be calculated as an annual amount paid in equal monthly payments and recalculated annually by the AHCF administrator in compliance with this section and the commission's rules and procedures. (iv) In the event that an element used to determine AHCF support is materially changed or eliminated, the AHCF administrator shall use an equivalent or similar element in calculating the AHCF support in subdivisions (e)(4)(C)(ii) and (iii) of this section. (5)(A)(i) The commission shall establish by rule a grant program to make grants available to eligible telecommunications carriers for the extension of facilities to citizens who are not served by wire line services of an eligible telecommunications carrier. Grants may be requested by an eligible telecommunications carrier or citizens who are not served, or both. (ii) The commission shall delegate to a trustee the administration, collection, and distribution of the Extension of Telecommunications Facilities Fund in accordance with the rules and procedures established by the commission. The trustee shall enforce and implement all rules and directives governing the funding, collection, and eligibility for the Extension of Telecommunications Facilities Fund. (B)(i) In establishing rules for the grant program, the commission shall consider demonstrated need, the length of time the citizens have not been served, the households affected, the best use of the funds, and the overall need for extensions throughout the state. (ii) The commission may require each potential customer to be served by the extension of facilities to pay up to two hundred fifty dollars ($250) of the cost of extending facilities. (C) The plan shall be funded by customer contributions and by the Extension of Telecommunications Facilities Fund established by subdivision (e)(4)(A)(i)(a) of this section; (6)(A) Three million dollars ($3,000,000) shall be transferred annually from the AHCF to the Division of Emergency Management on a quarterly basis for the Arkansas 911 Rural Enhancement Program Fund to fund: (i) The statewide Smart911 system in the amount of six hundred thousand dollars ($600,000) annually; (ii) The SmartPrepare system in the amount of two hundred twenty-five thousand dollars ($225,000) annually; (iii) The 911 administration system for emergency management under the Arkansas Emergency Services Act of 1973, § 12-75-101 et seq., in the amount of one hundred seventy-five thousand dollars ($175,000) annually; and (iv) Arkansas counties for 911 public safety answering points in the amount of two million dollars ($2,000,000) annually. (B)(i) Funding for counties under subdivision (e)(6)(A)(iv) of this section shall be transferred based on county population and distributed as follows: (a) The twenty-five (25) least-populated counties shall receive equal portions of fifty percent (50%) of the available funds; (b) The next twenty-five (25) least-populated counties shall receive equal portions of thirty-five percent (35%) of the available funds; and (c) The remaining twenty-five (25) counties shall receive equal portions of fifteen percent (15%) of the available funds. (ii) County population shall be calculated based on current data from the Geography Division of the United States Bureau of the Census; and (7)(A)(i) The commission shall provide quarterly reports to the Legislative Council. The reports shall include without limitation the number of requests for grants, the number of grants awarded, the amount awarded, and the number of additional customers served. (ii) The commission shall notify members of the General Assembly of grants made in their districts. (B) To allow time for potential applicants to request grants, no grants shall be awarded for three (3) months after the effective date of the rules establishing the program. (A)(i) The AHCF administrator shall use the most current trued up local switching support amount that has been calculated by NECA and submitted to USAC annually for each ETC within its size group. (ii) An ETC that does not submit the information required by subdivision (e)(4)(C)(ii) (b)(1)(A)(i) of this section shall submit equivalent information to the AHCF administrator for the AHCF administrator to calculate a local switching support amount. (B) The AHCF administrator shall calculate the local switching support factor for each ETC's study area by taking the 1996 weighted dialed equipment minute factor as supplied in the NECA submission of 1999 Network Data Management — Usage filed on March 1, 2001, with the FCC and subtracting the 1996 interstate dialed equipment minute factor as supplied in the NECA submission of 1999 network usage data filed on March 1, 2001, with the FCC. This result shall be called the “local switching support factor”. For each ETC that does not have an individually calculated weighted dialed equipment minute factor and an interstate dialed equipment minute factor, the AHCF administrator shall calculate a weighted dialed equipment minute factor and an interstate dialed equipment minute factor by using an average of all ETCs within its size group that have an established weighted dialed equipment minute factor and an interstate dialed equipment minute factor; (C) The AHCF administrator shall then calculate the total LSS revenue requirement for each ETC by dividing the local switching support amount calculated in subdivision (e)(4)(C)(ii) (b)(1)(A) of this section by the local switching support factor as calculated in subdivision (e)(4)(C)(ii) (b)(1)(B) of this section; (2) If a request for support is made by an ETC that does not have switching support calculated by NECA, the commission shall develop a proxy method to be used to calculate such an ETC's local switching support. The sum of the calculation for each ETC from the proxy method, if positive, shall be the ETC's local switching support element. (c)(1) For ETCs with AHCF support based on loops, the AHCF administrator shall determine each ETC's local loop support by multiplying the number of loops of the ETC as of December 31 of the preceding year that are eligible for federal universal service support by the ETC's loop support element, if applicable, and the AHCF administrator shall determine the ETC's local switching support by multiplying the number of loops of the ETC as of December 31 of the preceding year that are eligible for federal universal service support by the ETC's local switching support element. The AHCF administrator shall determine the uncapped AHCF support for each ETC by adding the sum of the ETC's total loop support, if any, and the ETC's total local switching support, if any. (2) For ETCs with AHCF support based on customers, the AHCF administrator shall determine the ETC's customer support element by multiplying the number of customers of the ETC as of December 31 of the preceding year who are eligible for federal universal service support by the ETC's customer support element, if applicable, and the AHCF administrator shall determine the ETC's local switching support by multiplying the number of customers of the ETC as of December 31 of the preceding year who are eligible for federal universal service support by the ETC's local switching support element. The AHCF administrator shall determine the uncapped AHCF support for the ETC by adding the sum of the ETC's total loop support, if any, and the ETC's total local switching support, if any. (3)(A) If the AHCF administrator determines that the changes in publicly available elements used to calculate loop support under subdivision (e)(4)(C)(ii) (a)(1) of this section or local switching support under subdivision (e)(4)(C)(ii) (b)(1) of this section cause an under-recovery of more than ten percent (10%) of support by ETCs with a total customer access base or total customer base of fewer than fifteen thousand (15,000) lines or customers participating in the AHCF, then the AHCF administrator shall promptly notify the commission. (B) Once notified, the commission shall open a rule-making docket to replace the eliminated, frozen, or modified elements that are causing the under-recovery used to calculate loop support under subdivision (e)(4)(C)(ii) (a)(1) of this section or local switching support under subdivision (e)(4)(C)(ii) (b)(1) of this section. (C) Until alternate elements are adopted by the commission, the AHCF administrator shall use the previous determinations as used during the year immediately preceding the year the elements were eliminated to calculate loop support under subdivision (e)(4)(C)(ii) (a)(1) of this section or local switching support under subdivision (e)(4)(C)(ii) (b)(1) of this section. (D) Upon commission adoption of the replacement elements, the commission shall order the AHCF administrator to incorporate those replacement elements into the previously existing method used by the AHCF administrator to calculate loop support under subdivision (e)(4)(C)(ii) (a)(1) of this section or local switching support under subdivision (e)(4)(C)(ii) (b)(1) of this section. The calculations shall be: (1) Using the FCC's synthesis model available from USAC or an equivalent replacement model, the AHCF administrator shall take the ETC's average monthly per-line cost for each eligible wire center and subtract the FCC cost model benchmark. The result of the line cost minus the benchmark is the available per-line high-cost support available for that wire center; (D)(i) The AHCF administrator shall calculate each ETC's support by first calculating each ETC's uncapped AHCF support. (ii) If the total calculated support to all ETCs within a size group is less than the capped amount of the size group's part of the total AHCF, each ETC within the size group shall be entitled to its total calculated AHCF support. (E)(i)(a)(1)(A) The AHCF administrator shall apply the cap on the total AHCF and upon the specific size groups established within the AHCF annually. (B) If total support due a size group does not exceed that size group's AHCF cap, the AHCF administrator shall pay that size group's full AHCF support amount. (2) If total support, using the AHCF formula for recipients of the specific size group exceeds the cap, the administrator shall determine the amount that the total calculated AHCF support exceeds that size group's cap. (b)(1) To reduce each size group's authorized support to conform to the size group's cap, the AHCF administrator shall determine total calculated AHCF support to each ETC within the size group. (2) The AHCF administrator shall then use the total calculated support due all ETCs within the size group as the denominator and the amount the size group's AHCF calculation exceeds the cap as the numerator. (3) The administrator shall then subtract from each ETC's total calculated support a pro rata portion, using the fraction established herein to reduce AHCF funding to the capped amount, based upon each ETC's total calculated support, to reduce the size group's support level to the capped AHCF amount. (ii)(a) Except as provided in subdivision (e)(4)(B) of this section, funds available for distribution to ETCs from the AHCF shall not exceed and are capped at thirty-nine million eight hundred thousand dollars ($39,800,000) per year. Cost of administrating the AHCF shall first be deducted from the total capped fund before allocation of funding to the ETCs. The annual period to be used by the AHCF administrator to adjust support levels and upon which to apply any cap shall be on the calendar year. In addition to the total fund cap, the funds available from the AHCF shall also be capped based upon size groups using access lines for loop-based ETCs and customers for customer-based ETCs. Size grouping is used to ensure funds are targeted to areas most needing high-cost assistance. For the purpose of calculating the size grouping caps, total customer access base shall be used for loop-based ETCs and total customers for customer-based ETCs. (b) For all ETCs with a total customer access base or total customer base of five hundred thousand (500,000) or more access lines or customers on or after December 31, 2010, the size group cap shall be twelve and five-tenths percent (12.5%) of the total capped fund. (c) For all ETCs with a total customer access base or total customer base of one hundred fifty thousand (150,000) or more access lines or customers and fewer than five hundred thousand (500,000) access lines or customers on December 31, 2010, the size group cap shall be twelve and five-tenths percent (12.5%) of the total capped fund. (d) For all ETCs with a total customer access base or total customer base of fifteen thousand (15,000) or more access lines or customers and fewer than one hundred fifty thousand (150,000) access lines or customers on December 31, 2010, the size group cap shall be two percent (2%) of the total capped fund. (e) For all ETCs with a total customer access base or total customer base of fewer than fifteen thousand (15,000) access lines or customers, the size group cap shall be seventy-three percent (73%) of the total capped fund;

Ark. Code Ann. § 23-17-405 Eligible telecommunications carrier.

(a) The incumbent local exchange carrier, its successors and assigns, that owns, maintains, and provides facilities for universal service within a local exchange area on February 4, 1997, shall be the eligible telecommunications carrier within the local exchange area. (b) The Arkansas Public Service Commission, consistent with 47 U.S.C. § 214(e)(2), after reasonable notice and hearing, may designate other telecommunications providers to be eligible for federal Universal Service Fund or AHCF support under the following conditions: (1)(A) The other telecommunications provider accepts the responsibility to provide service in response to any reasonable request from customers in an incumbent local exchange carrier's local exchange area using its own facilities or a combination of its own facilities and resale of another carrier's services. (B) High-cost support under this section will not begin until the telecommunications provider offers to provide service in response to all reasonable requests for service from customers in its service area; (2) The telecommunications provider may only receive funding for services provided in the eligible telecommunications carrier's study area using its own facilities or a combination of its own facilities and another carrier's facilities; (3) The telecommunications provider will not receive AHCF funding at a level higher than the level of funding received by the incumbent local exchange carrier in the same area; (4) The telecommunications provider advertises the availability and the charges for the services, using media of general distribution; and (5) It is determined by the commission that the designation is in the public interest. (c)(1) In exchanges, wire centers, census blocks, or other areas where the commission has designated more than one (1) eligible telecommunications carrier, the commission shall permit a local exchange carrier to relinquish its designation as an eligible telecommunications carrier in any such area, consistent with 47 U.S.C. § 214(e)(4), upon a finding that at least one (1) eligible telecommunications carrier serves the area. (2) In an area in which a local exchange carrier has relinquished its eligible telecommunications carrier designation, the local exchange carrier may: (A) Continue providing services, including universal services; and (B)(i) Discontinue providing services, including universal services. (ii) If a local exchange carrier discontinues providing basic local exchange service under subdivision (c)(2)(B)(i) of this section, the carrier shall notify affected customers in writing at least ninety (90) days before discontinuing the service. (d)(1)(A) For the entire area served by a rural telephone company, excluding tier one companies, for the purpose of the AHCF and the federal Universal Service Fund, there shall be only one (1) wireline eligible telecommunications carrier which shall be the incumbent local exchange carrier that is a rural telephone company. (B) Multiple wireless eligible telecommunications carriers may be designated in areas served by rural telephone companies. (2) The rural telephone company may elect to waive its right to be the only wireline eligible telecommunications carrier within the local exchange area by filing notice with the commission. (e) To provide universal services, an eligible telecommunications carrier may use: (1) Commercial mobile services; (2) Voice over Internet Protocol; and (3) Any other technology that provides service that is the functional equivalent of commercial mobile services or Voice over Internet Protocol.

Ark. Code Ann. § 23-17-406 Electing companies.

(a) Any incumbent local exchange carrier may elect to have the rates, terms, and conditions for its telecommunications services determined pursuant to the provisions of this section. (b) An incumbent local exchange carrier shall file a notice of its intent with the Arkansas Public Service Commission to be an electing company and to be regulated pursuant to this section and §§ 23-17-407 and 23-17-408. (c)(1) Upon such a filing, all rates, terms, and conditions for the services provided by that incumbent local exchange carrier contained in the tariffs and end-user contracts that were in effect on the date twelve (12) months prior to the date of election under this section shall be deemed just and reasonable. (2) However, nothing herein shall restrict any customer's right to complain to the commission regarding quality of service or the commission's right to enforce any quality of service rules and standards which are equally imposed on all telecommunications providers. (d)(1) A rural telephone company, excluding tier one companies, which elects to be regulated pursuant to this section may terminate that election by filing a notice with the commission. (2) Upon terminating that election, the rural telephone company for a period of five (5) years from the date of the termination notice under this subsection may not elect thereafter to be regulated under this section.

Ark. Code Ann. § 23-17-407 Regulation of rates for basic local exchange service and switched-access service of electing companies — Definition.

(a)(1) The rates for basic local exchange service and switched-access services that were in effect in the date twelve (12) months prior to the date of filing of a notice of election by a local exchange carrier pursuant to § 23-17-406 shall be the maximum that the electing local exchange carrier may charge for the services for a period of three (3) years after the date of filing, excluding rate increases ordered by the Arkansas Public Service Commission pursuant to § 23-17-404. (2)(A) An electing company may decrease or, subsequent to a decrease, increase up to the rate that was effective at the time of election pursuant to this section. (B) The rate changes shall be effective immediately, without commission approval, by filing a tariff or notice with the commission. (b)(1) After the expiration of the three-year period, the rates for basic local exchange services and switched-access services, excluding the intrastate carrier common line charge, may be adjusted by the electing company filing a price list with the commission, as long as: (A) The rates remain at or below the inflation-based rate cap; or (B) The rate increase results from the provision of extended area services required as the result of customer election under commission rules. (2) Inflation shall be measured by the year-over-year percent change in the gross domestic product price index calculated by the United States Department of Commerce, or any successor to the index. (3) The electing company is authorized to adjust the rate cap for each basic local exchange service and switched-access service by seventy-five percent (75%) of this inflation measure, adjusted for exogenous changes specified in subsection (e) of this section, and excluding rate increases ordered by the commission pursuant to § 23-17-404. (4) The rate cap may only be adjusted one (1) time each twelve (12) months beginning at the expiration of the three-year period after the date of initial filing to be regulated pursuant to this section and §§ 23-17-406 and 23-17-408. (c) As long as an electing company is in compliance with subsections (a) and (b) of this section, such rates are deemed just and reasonable. (d) Notwithstanding the provisions of this section, if, at any time following the date of election pursuant to this section, another telecommunications provider is providing basic local exchange service or switched-access service within an electing company's local exchange area, the electing company within any exchange of the electing company in which another telecommunications provider is providing these services may commence determining its rates for basic local exchange service and switched-access services in the same manner that it determines its rates for services other than basic local exchange service and switched-access service, pursuant to § 23-17-408(c). (e) As used in this section, the term “exogenous change” means a cumulative impact on a local exchange carrier's intrastate regulated revenue, expenses, or investment of more than three percent (3%) over a twelve-month period, that is attributable to changes in federal, state, or local government mandates, rules, regulations, or statutes.

Ark. Code Ann. § 23-17-408 Regulatory framework for electing companies.

(a) The earnings of an electing company shall not be subject to rate of return or rate-base monitoring or regulation, and the Arkansas Public Service Commission shall not consider rate of return, rate base, or the earnings of an electing company in connection with rate changes made pursuant to this section or § 23-17-407. (b) An electing company is authorized to determine and account for its investments, revenues, and expenses, including depreciation expenses, pursuant to generally accepted accounting principles. (c)(1) An electing company may increase or decrease its rates for telecommunications services other than basic local exchange service and switched-access services and establish rates for new services by filing a tariff or a price list with the commission. (2) The rates shall not require commission approval. (3) The tariff or price list shall be effective upon filing or at a future time as the electing company shall designate. (4) So long as rates for services are in accordance with this section and § 23-17-407, the rates are deemed just and reasonable. (5) Any service that is not a telecommunications service is not subject to commission regulation, and rates for the services need not be filed with the commission. (d) An electing company may package any of its services with any other service it or its affiliates offer, with or without a discount, provided that services whose rates are capped under § 23-17-407 may be purchased separately at the rate which is capped in accordance with § 23-17-407.

Ark. Code Ann. § 23-17-409 Authorization of competing local exchange carriers.

(a)(1)(A) Consistent with the federal act and the provisions of § 23-17-410, the Arkansas Public Service Commission is authorized to grant certificates of convenience and necessity to telecommunications providers authorizing them to provide telecommunications services, including basic local exchange service or switched-access service, or both, to an incumbent local exchange carrier's local exchange area if and to the extent that the applications otherwise comply with state law, designate the geographic areas proposed to be served by the applicants, and the applicants demonstrate that they possess the financial, technical, and managerial capacity to provide the competing services. (B) No telecommunications provider shall operate as a CLEC in this state without first obtaining from the commission a certificate of public convenience and necessity. (2) Competing local exchange carriers shall be required to maintain a current tariff or price list with the commission and to make prices and terms of service available for public inspection. (3) Retail prices of competing local exchange carriers shall not require prior review or approval by the commission. (b)(1) Except as otherwise provided in subdivisions (b)(2), (b)(5), and (b)(6) of this section, a government entity shall not provide, directly or indirectly, basic local exchange, voice, data, broadband, video, or wireless telecommunications services. (2) After reasonable notice to the public and a public hearing, a government entity owning an electric utility system or television signal distribution system may provide, directly or indirectly, voice, data, broadband, video, or wireless telecommunications services and make any telecommunications capacity or associated facilities that the government entity now owns, or may construct or acquire, available to the public upon terms and conditions as may be established by the government entity's governing authority, except the government entity may not use the telecommunications capacity or associated facilities to provide, directly or indirectly, basic local exchange service. (3) Any restriction contained in this subsection shall not be applicable to the provision of telecommunications services to the extent the telecommunications services are used solely for 911, E911, or other emergency and law enforcement services, or for the provision of data, broadband, or non-entertainment video telecommunications services or facilities by or to a medical institution or an institution of higher education to its students, faculty, staff, or patients, as the provision of the telecommunications services or facilities relates to academic, research, and healthcare information technology applications under the Arkansas Information Systems Act of 1997, § 25-4-101 et seq. (4) A government entity may purchase voice, data, broadband, video, or wireless telecommunications services, directly or indirectly, from a private provider through a contract administered and services managed by the Office of State Technology under the Arkansas Information Systems Act of 1997, § 25-4-101 et seq. (5) A government entity may, on its own or in partnership with a private entity, apply for funding under a program for grants or loans to be used for the construction, acquisition, or leasing of facilities, land, or buildings used to deploy broadband services in unserved areas, as defined under the terms of the granting or lending program, and if the funding is awarded, then provide, directly or indirectly, voice, data, broadband, video, or wireless telecommunications services to the public in the unserved areas. (6)(A) A government entity may acquire, construct, furnish, equip, own, operate, sell, convey, lease, rent, let, assign, dispose of, contract for, or otherwise deal in facilities and apparatus for one (1) or more of the following: (i) Voice services; (ii) Data services; (iii) Broadband services; (iv) Video services; or (v) Wireless telecommunications services. (B) If a government entity, other than a government entity qualified to provide services under subdivision (b)(2), subdivision (b)(3), or subdivision (b)(5) of this section, issues bonds or other indebtedness to acquire, construct, furnish, or equip facilities for the provision of voice services, data services, broadband services, video services, or wireless telecommunications services through a special tax or general obligation bond initiative, then the government entity shall: (i) Partner, contract, or otherwise affiliate with an entity that is experienced in the operation of the facilities to be acquired or constructed; (ii) Conduct the due diligence required by the industry for the project and required by law for the bonds or indebtedness utilized for the project; (iii) Provide notice at least ten (10) days before a public hearing on the project; (iv) After due notice has been provided as described in subdivision (b)(6)(B)(iii) of this section, conduct a public hearing on the project; and (v) Cause an election to be held as required by law. (c) A governmental entity that operates an electric utility system may deny any telecommunications provider access to its electric utility poles, ducts, conduits, or rights-of-way on a nondiscriminatory basis when there is insufficient capacity and for reasons of safety, reliability, and generally applicable engineering purposes. (d)(1) Except to the extent required by the federal act and this subchapter, the commission shall not require an incumbent local exchange carrier to negotiate resale of its retail telecommunications services, to provide interconnection, or to sell unbundled network elements to a competing local exchange carrier for the purpose of allowing the competing local exchange carrier to compete with the incumbent local exchange carrier in the provision of basic local exchange service. (2) Promotional prices, service packages, trial offerings, or temporary discounts offered by the local exchange carrier to its end-user customers are not required to be available for resale. (e) The prices for unbundled network elements shall include the actual costs, including an allocation of joint and common costs and a reasonable profit. (f) As provided in 47 U.S.C. §§ 251 and 252, the commission's authority with respect to interconnection, resale, and unbundling is limited to the terms, conditions, and agreements pursuant to which an incumbent local exchange carrier will provide interconnection, resale, or unbundling to a CLEC for the purpose of the CLEC's competing with the incumbent local exchange carrier in the provision of telecommunications services to end-user customers. (g)(1) As permitted by the federal act, the commission shall approve resale restrictions that prohibit resellers from purchasing retail local exchange services offered by a local exchange carrier to residential customers and reselling those retail services to nonresidential customers, or aggregating the usage of multiple customers on resold local exchange services, or any other reasonable limitation on resale to the extent permitted by the federal act. (2) The wholesale rate of any existing retail telecommunications services provided by local exchange carriers that are not exempt from 47 U.S.C. § 251(c) and that are being sold for the purpose of resale shall be the retail rate of the service less any net avoided costs due to the resale. (3) The net avoided costs shall be calculated as the total of the costs that will not be incurred by the local exchange carrier due to its selling the service for resale less any additional costs that will be incurred as a result of selling the service for the purpose of resale. (h) Incumbent local exchange carriers shall provide competing local exchange carriers, at reasonable rates, nondiscriminatory access to operator services, directory listings and assistance, and 911 service only to the extent required in the federal act. (i)(1) The commission shall approve any negotiated interconnection agreement or statement of generally available terms filed pursuant to the federal act unless it is shown by clear and convincing evidence that the agreement or statement does not meet the minimum requirements of 47 U.S.C. § 251. (2) In no event shall the commission impose any interconnection requirements that go beyond those requirements imposed by the federal act or any interconnection regulations or standards promulgated under the federal act. (j) In the event the commission is requested to arbitrate any open issues pursuant to 47 U.S.C. § 252, the parties to the arbitration proceeding shall be limited to the persons or entities negotiating the agreement.

Ark. Code Ann. § 23-17-410 Competing local exchange carriers in service areas of rural telephone companies.

(a) A rural telephone company shall not have any duty to negotiate terms and conditions of or to enter into any agreement for the provision to any other telecommunications provider of interconnection with the rural telephone company's network as provided by 47 U.S.C. §§ 251(c) and 252, including access to its network elements on an unbundled basis, resale of any telecommunications service that the rural telephone company provides at retail to subscribers, or physical collocation, unless and until a telecommunications provider has made a bona fide request to the rural telephone company for the services and the Arkansas Public Service Commission has determined, in accordance with the federal act, that the rural telephone company must fulfill the request. (b) With regard to a rural telephone company that is not also a tier one company, the commission may only determine that the rural telephone company must fulfill such a request if after reasonable notice and hearing it is established by clear and convincing evidence that: (1) The request is not unduly economically burdensome; (2) The request is technically feasible; and (3) The request is consistent with the protection of universal service and the public interest, convenience, and necessity. (c) The commission shall not conclude that clear and convincing evidence exists, as required in subsection (b) of this section, unless the commission has, among other relevant matters, concluded that granting the requested relief will not result in significant adverse impact on any of the following: (1) The customers of the incumbent local exchange carrier serving the area; (2) The incumbent local exchange carrier's continuing ability to provide its customers adequate service at reasonable rates; (3) The incumbent local exchange carrier's ability to continue to meet eligible carrier obligations; (4) Statewide average toll rates; (5) Customers' cost of telephone service; (6) The goals of universal service; (7) The quality of service provided to customers; (8) The incumbent local exchange carrier's ability to attract capital and incur debt at reasonable rates and the ability to sustain a sufficient revenue stream to pay existing debt; (9) The ability of the exchange to support more than one (1) local exchange carrier; and (10) The interest of all ratepayers. (d) If no order granting the request is entered by the commission within one hundred twenty (120) days after notice of the request has been filed, the request is denied.

Ark. Code Ann. § 23-17-411 Regulatory reform.

(a) Regarding the earnings, rates of return, or rate-base calculation of any electing company, any incumbent local exchange carrier that has filed notice in accordance with § 23-17-412, or any competing local exchange carrier, and provided that all such companies and carriers otherwise comply with the applicable ratemaking provisions of this subchapter, the Arkansas Public Service Commission shall not: (1) Require the filing of any financial report, statement, or other document for the purpose of reviewing, monitoring, or regulating rate base, earnings, or rates of return; or (2) Conduct any investigation of rate base, earnings, or rates of return. (b) Notwithstanding the provisions of this subchapter, a rate group reclassification of an exchange from one (1) rate group to another occurring as a result of access line growth or loss of exchange access arrangements shall be allowed by the commission on request of a local exchange carrier. (c) Consistent with the policy of telecommunications competition that is implemented with this subchapter, other than the commission's promulgation of rules required by this subchapter, the commission shall promulgate no new rule that increases regulatory burdens on telecommunications service providers, except upon a showing that the benefits of such rule are clear and demonstrable and substantially exceed the cost of compliance by the affected telecommunications service providers. (d) Not later than one hundred eighty (180) days after February 4, 1997, the commission shall conduct a rulemaking proceeding to identify and repeal all rules relating to the provision of telecommunications service which are inconsistent with, have been rendered unnecessary by, or have been superseded by either this subchapter or the federal act. (e) Not later than one hundred eighty (180) days after February 4, 1997, the commission shall revise its rules so that they apply, except as expressly provided in this subchapter, equally to all providers of basic local exchange service. All future rule changes promulgated by the commission shall apply equally to all providers of basic local exchange service. (f)(1) In order to eliminate outdated, unnecessary, and burdensome laws and rules, electing companies, incumbent local exchange carriers filing notice under § 23-17-412, and competing local exchange carriers shall not be subject to the requirements of §§ 23-2-304(a)(1), (7), and (8), 23-2-306, 23-2-307, 23-3-101 — 23-3-107, 23-3-112, 23-3-114, 23-3-118, 23-3-119(a)(2), 23-3-201, 23-3-206, 23-3-301 — 23-3-316, 23-4-101 — 23-4-104, 23-4-107, 23-4-109, 23-4-110, 23-4-201(d), 23-4-401 — 23-4-405, 23-4-407 — 23-4-419, and 23-17-113, or the commission's rules implementing the statutes. (2) Notwithstanding any other provisions of law, the commission shall have no jurisdiction to impose any quality of service rules and standards or reporting, including without limitation the commission's telecommunications providers rules, on any telecommunications provider in any exchange in which an electing company is authorized under § 23-17-407(d) to determine the rates for basic local exchange service and switched-access services under § 23-17-408(c). (3) If an electing company that is authorized under § 23-17-407(d) to determine the rates for basic local exchange service and switched-access services under § 23-17-408(c), a competing local exchange carrier, or an interexchange carrier posts on a publicly accessible website its generally available prices and terms of service for telecommunications services, the electing company, competing local exchange carrier, or interexchange carrier is not required to file or maintain with the commission any tariff or price list setting forth the rates, rentals, charges, privileges, facilities, rules, regulations, or forms of contract for telecommunications services. (4) An electing company that is authorized under § 23-17-407(d) to determine the rates for basic local exchange service and switched-access services under § 23-17-408(c) may elect to be exempt from any requirement to offer a calling plan under § 23-17-120. (g)(1) Except as provided in this subchapter with respect to universal services, the commission does not have jurisdiction to regulate: (A) Commercial mobile services or commercial mobile service providers; (B) Voice over Internet Protocol services; or (C) Voice over Internet Protocol providers. (2) This subsection does not apply to: (A) The provisions of this subchapter concerning universal services; (B) An entity's obligations under sections 251 and 252 of the Communications Act of 1934, 47 U.S.C. § 151 et seq.; or (C) A right granted to an entity by sections 251 and 252 of the Communications Act of 1934, 47 U.S.C. § 151 et seq. (h) The commission shall establish reasonable cost proxies, which rural telephone companies, excluding tier one companies, may use without producing company-specific cost studies, when cost studies would otherwise be required. Use of these proxies or the adoption of approved rates of non-rural telephone companies by rural telephone companies, excluding tier one companies, shall be deemed adequate proof of such rural telephone company costs. (i) The commission may reclassify an incumbent local exchange carrier as a tier one company or a non-tier-one company only upon petition by the incumbent local exchange carrier in connection with an increase or decrease in the number of the carrier's access lines in the state. (j)(1) The unauthorized change of a customer's service to another telecommunications service provider is prohibited. (2) To protect customers from any unauthorized changes in their choice of telecommunications service providers, no local exchange carrier shall honor a request by any person other than the customer to change the provider of intrastate long distance or local exchange service to the customer in the state, except: (A) Where the request is placed by a local or long distance company that has provided to the local exchange carrier a letter of agency containing clear and conspicuous disclosure of the change signed by the customer authorizing the change; (B) Where the customer affected by the change calls a toll-free number established by the company requesting the change to confirm the request for the change made in response to a contact initiated by the local exchange or long distance company requesting the change; or (C) Where the commission otherwise expressly authorizes. (3) Any telecommunications carrier that violates the verification procedures described in this subsection and collects charges for telecommunications services from the customer shall be liable to the carrier previously selected by the customer in an amount equal to all charges paid by the subscriber after the violation in accordance with the procedures that the commission may prescribe. (4) The commission is also authorized to impose civil penalties, not to exceed five thousand dollars ($5,000) for any such violation.

Ark. Code Ann. § 23-17-412 Optional alternative regulation of eligible telecommunications companies.

(a)(1) Telephone companies that file notice with the Arkansas Public Service Commission of an election to be regulated in accordance with the provisions of this section are authorized to determine and account for their respective revenues and expenses, including depreciation expenses, pursuant to generally accepted accounting principles and, except as provided in this section, shall be subject to regulation only in accordance with this section and shall not be subject to any rate review or rate of return regulation by the commission. (2) The companies shall file rate lists for their telecommunications services which rates shall be effective upon filing, except the rates for basic local exchange services and switched-access services, which rates shall be effective upon compliance and in accordance with the procedures in this section. (3) Any service that is not a telecommunications service is not subject to regulation by the commission, and rates for the services need not be filed with the commission. (b) On the effective date of an election pursuant to this section, the tariffed rates of a company electing to be subject to the provisions of this section are deemed just and reasonable and shall continue to be deemed just and reasonable as long as any increases in the company's tariffed rates are in accordance with the provisions of this section. (c)(1) The company may increase its basic local exchange service rates after sixty (60) days' notice to all affected subscribers. (2) Rates for basic local exchange services may be reduced and be effective immediately upon filing or at a later time specified in the filing. (3) Notice by the company to its subscribers shall be by regular mail and may be included in regular subscriber billings and shall include the following: (A) A schedule of the proposed basic local exchange service rate change; (B) The effective date of the proposed basic local exchange service rate change; and (C) An explanation of the right of the subscriber to petition the commission for a public hearing on the rate increase and the procedure necessary to petition. (d) The subscriber petitions provided for in this section shall be prepared as follows: (1) Form. (A) The petition shall be headed by a caption, which shall contain: (i) The heading, “The Arkansas Public Service Commission”; (ii) The name of the company or cooperative seeking a change in basic local exchange service rates; and (iii) The relief sought. (B) A petition substantially in compliance with the form set forth in this subsection shall not be deemed invalid due to minor errors in its form; (2) Body. The body of the petition shall consist of three (3) numbered paragraphs, if applicable, as follows: (A) Allegations of Facts. The allegations of facts shall be stated in the form of ultimate facts, without unnecessary detail, upon which the right to relief is based. The allegations shall be stated in numbered subparagraphs as necessary for clarity; (B) Relief Sought. The petition shall contain a brief statement of the amount of the change in basic local exchange service rates that is objected to or other relief sought; and (C) Petitioners. The petition shall contain the name, address, telephone number, and signature of each subscriber signing the petition. Only the subscriber in whose name the telephone service is listed shall be counted as a petitioner. Every signature must be dated and shall have been affixed to the petition within sixty (60) days preceding its filing with the commission. (e)(1) Exclusive of basic local exchange service rate changes pursuant to § 23-17-404, the commission shall have authority to review basic local exchange service rates set by the company only upon a formal petition that complies with subsection (d) of this section and that is signed by at least fifteen percent (15%) of all affected subscribers. (2) If a proper petition is presented to the commission within sixty (60) days after the date of notice of the rate change was sent to affected subscribers, the commission shall accept and file the petition and, upon reasonable notice, may suspend the rates and charges at issue during the pendency of the proceedings and reinstate the rates and charges previously in effect and shall hold and complete a hearing thereon within ninety (90) days after filing to determine if the rates as proposed are just and reasonable. (3) Within sixty (60) days after close of the hearing, the commission may enter an order adjusting the rates and charges at issue, except that the commission may not set any rate or charge below the basic local exchange service rates in effect at the time the new rate at issue was proposed. (4) A company subject to this section shall not increase its rates without the approval of the commission for six (6) months after the date the commission enters the order. (5) If the commission fails to enter any order within sixty (60) days after the close of the hearing, the petition shall be deemed denied and the rates and charges shall be deemed approved for all purposes, including the purposes of appeal. (f) Rates for switched-access services of companies that are subject to this section shall be determined pursuant to § 23-17-407 except as provided in subsection (l) of this section and § 23-17-404. (g) A company subject to this section may at any time file an application with the commission requesting the commission to prescribe just and reasonable rates for the company. Any rate so set may thereafter be adjusted as provided in this section. (h) Nothing herein shall restrict any customer's right to complain to the commission regarding quality of service or the commission's authority to enforce quality-of-service rules and standards that are equally imposed on all telecommunications providers. (i)(1)(A) The commission on its own motion may review basic local exchange service rates of any company subject to this section if the company has increased the rates by more than the greater of fifteen percent (15%) or two dollars ($2.00) per access line per month within any consecutive twelve-month period, excluding rate increases: (i) Ordered by the commission pursuant to § 23-17-404; (ii) Resulting from the provision of extended area services required as the result of customer election under commission rules; (iii) Resulting from ETC increases in response to the Federal Communications Commission benchmark legislation, rules, or procedures; or (iv) Necessary to meet a local rate threshold for purposes of receiving maximum support from a federal universal support mechanism or program. (B) Unless a company provides an affidavit to the Arkansas Public Service Commission stating the separately identified language requirements of this subdivision (i)(1)(B) would cause a hardship based on the billing system limitations of the company: (i) A local service rate increase under subdivision (i)(1)(A)(iii) of this section may be identified separately on the customer's bill with descriptive language as increases mandated to comply with the Federal Communications Commission benchmark legislation rules; and (ii) The Federal Communication Commission's Access Recovery Charge may be identified separately with appropriate descriptive language on the customer's bill. (2) The commission shall hold and complete a hearing on the rates within ninety (90) days after first giving notice of the hearing to the company to determine if the rates as proposed are just and reasonable. (3) Within sixty (60) days after close of the hearing, the commission may enter an order adjusting the rates and charges at issue, except that the commission may not require the company to set any rate or charge below the greater of the rates in effect at the time of the filing of the increase or the actual cost of providing such service as established by evidence received at the hearing. (4) In the order, the commission may order a refund of amounts collected in excess of the rates and charges as approved at the hearing, which may be paid as a credit against billings for future services. (5) If the commission fails to enter any order within sixty (60) days after the close of the hearing, the rates and charges shall be deemed approved for all purposes, including for purposes of appeal. (j)(1) For purposes of this section, the commission may not require a company that is subject to this section to set its rates below the actual cost of the company providing the service. (2) If requested by the company, the actual cost shall be determined to include a ratable portion of administrative expenses and overhead incurred by the company in its operations and the appropriate amortization of previously deferred accounting costs. (k) No telephone company subject to this section may change its basic local exchange service rates within ninety (90) days after entry of a final order adjusting the rate pursuant to subsections (g) and (i) of this section. (l) Notwithstanding the provisions of this section, if at any time following the notice provided under this section another telecommunications provider is providing basic local exchange service or switched-access service within a local exchange area of the company subject to this section, the company that is subject to this section may determine its rates for basic local exchange service and switched-access service within any exchange in which another telecommunications provider is providing these services in the same manner that it determines its rates for other services pursuant to subsection (a) of this section. (m) A telephone company electing to be regulated in accordance with this section may package any of its services with any other service it or its affiliates offer, with or without a discount, provided that basic local exchange services and switched-access services may be purchased separately at the rates that are established in accordance with this section.

Ark. Code Ann. § 23-17-413 Optional provision of database to vendors.

In order to assign the place of primary use for mobile telecommunications services pursuant to the Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, the Secretary of the Department of Finance and Administration may choose whether to furnish vendors with a database that matches addresses with taxing jurisdictions or to allow vendors to employ an enhanced zip code of at least nine (9) digits in lieu of providing a database.

Ark. Code Ann. § 23-17-414 Extended area service.

(a) The Arkansas Public Service Commission shall promulgate rules that enable customers in a local exchange service area to petition the commission directly or by a resolution of the customers' quorum court or other local governing body to request that an incumbent local exchange carrier provide extended area service. (b)(1) The rules relating to the provision of extended area service shall include: (A) The procedure by which customers may petition the commission for an election on the provision of extended area service; (B) A description of the information required for the commission to verify that the rate to be charged for providing extended area service will be just and reasonable and to verify that the rate includes an incumbent local exchange carrier's revenue that is replaced by extended area service revenue; (C) Notice requirements to customers regarding the rate, terms, and conditions under which extended area service would be provided as a result of a scheduled election under subsection (a) of this section; and (D) The procedure for conducting an election under subsection (a) of this section and for determining whether extended area service will be provided as a result of the election. (2) After the initial election and adoption of extended area service, no subsequent change in the rate charged for the provision of extended area service shall be effective unless adopted under the commission's rules promulgated to implement this section. (c) If the affected customers vote in favor of instituting or renewing extended area service under this section, the carrier shall implement extended area service at a rate that is consistent with subdivision (b)(1)(B) of this section.

Ark. Code Ann. § 23-17-415 Reporting of originating intrastate interexchange telephone numbers.

(a) Where technically feasible, any telecommunications provider whose customer originates or forwards an intrastate interexchange message to be terminated over the public switched telecommunications network in Arkansas shall transmit the jurisdictionally appropriate telephone number of the originating party sending the message to the terminating telecommunications provider. (b)(1) The Arkansas Public Service Commission shall investigate complaints alleging violations of this section filed under § 23-3-119 and may obtain sufficient information to determine the correct jurisdiction of any message associated with alleged violations of this section. (2) If the commission determines that the jurisdictionally appropriate telephone number has not been transmitted as required by this section, the telecommunications provider against whom the complaint was filed shall demonstrate that it had a legitimate business purpose for not transmitting the jurisdictionally appropriate telephone number or that it was technically infeasible for the provider to transmit the number. (c)(1) If the commission determines that a telecommunications provider has violated this section, the commission shall determine the amount of underpayment to any telecommunications provider as a result of the violation and shall order the violating telecommunications provider to make payment under the applicable tariff or interconnection agreement, including any penalties specified therein. (2) If no penalties are specified under either the applicable tariffs or interconnection agreements, the commission shall assess a civil sanction against the violating telecommunications provider consistent with state law.

Ark. Code Ann. § 23-17-416 Arkansas intrastate carrier common line.

(a)(1)(A) Except as provided in § 23-17-404(e)(4)(D)(i)(b) , through June 30, 2013, intrastate carrier common line charges billed to ILECs and underlying carriers shall be determined at the rate of one and sixty-five hundredths cents (1.65¢) per intrastate access minute. (B) Except as provided in § 23-17-404(e)(4)(D)(i)(b) , beginning July 1, 2013, intrastate carrier common line charges billed to ILECs and underlying carriers shall be determined at the rate of one and sixty-five hundredths cents (1.65¢) per originating intrastate access minute. (2) The carrier common line charge is not a tax and is not affected by state laws governing taxation. (b)(1) Each underlying carrier's monthly payment to the AICCLP shall include the sum of the underlying carrier's share of the AICCLP's net revenue requirement that has been adjusted to reflect the originating intrastate revenue requirement of each AICCLP member and the AICCLP administrative expenses. (2) Each underlying carrier's monthly payment to the AICCLP shall be based upon the underlying carrier's proportionate share of Arkansas intrastate telecommunications services revenues and special intrastate ILEC revenues to the total Arkansas intrastate telecommunications services revenue and special intrastate ILEC revenues of all underlying carriers. (3)(A)(i) An exiting ILEC that experiences a fixed carrier common line revenue shortfall for its carrier common line net revenue requirements may recover the shortfall through increases in local rates based on the total customer access base of the exiting company. (ii) AICCLP members shall recover their carrier common line net revenue requirement by AICCLP rate adjustment and through the AICCLP. (iii) If the fixed carrier common line revenue shortfall is distributed throughout the total customer access base, then each independent ILEC within the total customer access base shall receive from the distribution its share of the shortfall. (B) An exiting ILEC that seeks to recover its carrier common line revenue shortfall is not required to recover equally from each class of customers. (C)(i) An exiting ILEC may recover its fixed carrier common line revenue shortfall from any intrastate rate other than access charges. (ii) Any AICCLP member may recover its AICCLP rate adjustment from any intrastate rate other than access charges. (D) An exiting ILEC that reduces its carrier common line charge of one and sixty-five hundredths cents (1.65¢) may recover the shortfall through increases in local rates. (4) This section shall not limit a carrier's ability to adjust its rates under § 23-17-406, § 23-17-407, or § 23-17-408. (5) This section shall not limit a carrier's ability to increase its local rates under § 23-17-412. (6) Any AICCLP rate adjustment charge shall not limit an AICCLP member's ability to adjust rates under § 23-17-412. (7)(A) No toll reseller shall be required to pay to an ILEC or to the AICCLP any portion of an underlying carrier's common line net revenue obligation unless the ILEC is the toll reseller's underlying carrier. (B) Unless agreed to otherwise between the toll reseller and the ILEC, if an ILEC is a toll reseller's underlying carrier, then the toll reseller shall report the special intrastate ILEC revenue to the administrator and shall pay all amounts due the AICCLP for the revenue. (c)(1) The Arkansas Public Service Commission shall adopt all rules relating to the membership, operation, management, and administration of the AICCLP as it will be constituted after December 31, 2003. (2) The commission may adopt rules under subdivision (c)(1) of this section after it appoints the members of the Arkansas Intrastate Carrier Common Line Pool Advisory Procedural Board and selects an AICCLP administrator. (d) The commission may terminate a carrier's certificate of convenience and necessity if the carrier fails to comply with AICCLP procedures or fails to make a payment due under this section. (e)(1) The commission shall choose an AICCLP administrator on or before June 1, 2003. (2) The administrator shall manage the collection and distribution of the carrier common line net revenue requirements in accordance with the rules and procedures established by the commission and consistent with this section. (3) The administrator shall enforce and implement all rules and directives governing the funding, collection, and eligibility for the AICCLP membership. (4)(A) The administrator shall determine the total monthly amount due to the AICCLP from AICCLP members, exiting ILECs, and underlying carriers, based upon the sum of the monthly carrier common line net revenue requirement of AICCLP members and the AICCLP administrative fees. (B)(i) On or before June 30, 2013, the administrator shall change the AICCLP tariff on file with the Arkansas Public Service Commission to reflect only the originating intrastate revenue requirements for each AICCLP member based on the Federal Communications Commission's order In the Matter of Connect America Fund et al., FCC 11-161, released November 18, 2011, providing that the intrastate carrier common line terminating access rate chargeable by telecommunications carriers shall be set at the interstate rate for carrier common line terminating access. (ii) To properly administer the AICCLP, the administrator shall subtract the terminating intrastate revenue requirement amount that should have been transferred to the FCC ICC-CAF funding from the intrastate revenue requirements listed in the AICCLP tariff to ensure that the funding for the amounts attributed to the AICCLP member's intrastate revenue requirement represent only the originating portion of the revenue requirement. (5) The administrator shall provide monthly and annual reports to the commission concerning the operation of the AICCLP. (6) Any information considered proprietary by the administrator shall be treated as confidential unless the commission determines that the administrator erred in the determination. (7) The AICCLP administrator and the Arkansas Universal Service Fund [superseded] administrator may share confidential information to determine the amounts due or the accuracy of information submitted by ILECs and underlying carriers. (8)(A) Any ILEC that was designated as a non-tier one ILEC under Acts 1997, No. 77, as of December 31, 1997, and had fewer than fifty thousand (50,000) access lines as of December 31, 1997, shall be eligible to be a member of the AICCLP beginning January 1, 2004. (B)(i) Based on its total customer access base, the maximum that a non-tier one company under subdivision (e)(8)(A) of this section may draw shall be one million three hundred thousand dollars ($1,300,000) annually. (ii) If a non-tier one company under subdivision (e)(8)(A) of this section is entitled to receive more than one million three hundred thousand dollars ($1,300,000) annually, then the administrator shall assess a prorated charge to each ILEC associated with the total customer access base that is based upon the ILEC's proportionate share of the total net revenue requirement of all ILECs within the total customer base. (f)(1) Beginning January 1, 2004, no ILEC that had a total customer access base of more than fifty thousand (50,000) access lines as of December 31, 1997, shall be a member of AICCLP. (2) An ILEC that had a total customer access base of fifty thousand (50,000) or fewer access lines as of December 31, 1997, may terminate its membership in the AICCLP after sixty (60) days' notice to the commission and the administrator and may not thereafter again become a member of the AICCLP. (g)(1) If an ILEC terminates its membership in the AICCLP after January 1, 2004, its total customer access base must exit the pool as a single unit. (2) If an ILEC terminates its membership in the AICCLP after January 1, 2004, its fixed carrier common line revenue shortfall shall be calculated using relevant data from the data development period identified in subdivision (h)(4)(B) of this section. (h)(1) The administrator shall determine the amounts to be paid to AICCLP members on a monthly basis and shall determine any fixed or varying amounts due the pool from AICCLP members, exiting ILECs, and underlying carriers. (2) The administrator shall provide notice to AICCLP members, other ILECs, and underlying carriers concerning calculations related to each entity and shall bill all carriers for any amounts due the pool. (3) The administrator shall use the appropriate data development period to determine the calculations for AICCLP members' carrier common line net revenue requirement. (4)(A) Except for AICCLP members exiting the pool after January 1, 2004, the data development period for all ILECs shall be the ILECs' billing months of June, July, and August 2003. (B) If an AICCLP member exits the AICCLP after January 1, 2004, its data development period to determine the ILEC's fixed carrier common line revenue shortfall shall be the three-month period immediately preceding its exit. (i) No later than the twenty-second day or the next business day thereafter of July 2003, if the twenty-second day falls on a weekend or holiday, and no later than the twenty-second day or the next business day of each month thereafter, if the twenty-second day falls on a weekend or holiday, each underlying carrier and AICCLP member shall report to the administrator its previous month's data necessary for AICCLP calculations. (j)(1) On December 31, 2003, and the last business day of each month thereafter, the administrator shall cause notice to be sent to each underlying carrier, AICCLP member, and exiting ILEC the amount due, based on the previous month's data as submitted to the administrator. (2) Each underlying carrier, AICCLP member, and exiting ILEC shall remit payment due under subdivision (j)(1) of this section to the administrator by no later than the last business day of the following month. (3) The administrator shall make all reasonable efforts to ensure that AICCLP members receive payment of their monthly net carrier common line revenue requirement by February 10, 2004, and by the tenth day of each month thereafter.

Ark. Code Ann. § 23-17-417 Arkansas Intrastate Carrier Common Line Pool Advisory Procedural Board.

(a) The Arkansas Intrastate Carrier Common Line Pool Advisory Procedural Board is not a government entity under Arkansas law and shall not be considered a government entity for any purpose. (b) The Arkansas Public Service Commission shall adopt all rules relating to the operation of the board that are reasonably necessary to implement this section. (c) The board shall serve in an advisory capacity and may: (1) Propose tariffs and rules to the commission; (2) Propose amendments to its procedures for the operation, administration, and audit of the AICCLP; (3) Advise the commission on other matters reasonably related to the operation of the AICCLP and the board; (4) Meet by teleconference or by other technological means; and (5) Provide recommendations and reports to the commission. (d) The board shall be composed of two (2) representatives of underlying carriers and five (5) representatives of ILECs who are members of the AICCLP as follows: (1) The two (2) underlying carriers' representatives shall be the first two (2) willing representatives of the largest underlying carriers, as determined by the AICCLP administrator, based upon the carriers' portion of the Arkansas intrastate telecommunications service revenues and special intrastate ILEC revenues; (2)(A) The commission shall determine the appropriate underlying carrier and ILEC member representatives on or before June 1 of each year. (B) The commission shall approve any ILEC representative if the proposed representative's name is submitted by a two-thirds (2/3) majority of all ILEC members of the AICCLP for any open ILEC position on the board; and (3)(A) The five (5) ILEC representatives of AICCLP members shall be willing representatives of ILECs who are members of the AICCLP. (B)(i) The five (5) ILEC representatives will serve staggered five-year terms with the terms to be determined by lot at the first meeting of the board. (ii) A representative may serve unlimited terms. (C) No ILEC or underlying carrier may be represented by more than one (1) board member. (e) The board shall begin operations as of the date the commission appoints the first administrator.

Ark. Code Ann. § 23-17-418 Arkansas High Cost Fund — Programs — Assessments — Funding.

(a) The Arkansas High Cost Fund administrator shall: (1) On March 19, 2013, begin making assessments to ensure proper funding to program participants; and (2) Ninety (90) days after March 19, 2013, begin making distributions to eligible participants. (b)(1) On the first day of the calendar quarter after March 19, 2013, the administrator shall use previous calculations of the annual determination and recalculate the support for all participants in the fund based on the revised cap. (2) The difference between the recalculation and the current administrator's determination shall be known as the “transitional funding cap”. (3) The transitional funding cap shall be transitioned from being unfunded to funded. (4) If the effective date of payment of any part of the transitional funding cap occurs on a date that is not the beginning of a calendar year, the partial calendar year shall be prorated for the purpose of payment of the transitional funding cap for the remainder of the calendar year. (c) Annually beginning January 1, 2014, the administrator shall determine the fund support during the annual determination process as described in § 23-17-404(e)(4)(C)(ii)(a) and pay the fund's eligible telecommunications carrier participants.

Ark. Code Ann. § 23-17-501 Legislative findings and intent.

(a) The General Assembly finds that: (1) The deployment of small wireless facilities and other next-generation wireless and broadband network facilities is a matter of federal and statewide concern and interest; (2) Wireless and broadband products and services are a significant and continually growing part of the state's economy, and accordingly, encouraging the development of strong and robust wireless and broadband communications networks throughout the state is integral to the state's economic competitiveness; (3) Rapid deployment of small wireless facilities will serve numerous important statewide goals and the public policy of: (A) Meeting growing consumer demand for wireless data; (B) Increasing competitive options for communications services available to the state's residents; and (C) Promoting the ability of the state's citizens to communicate with other citizens and with their state and municipalities, and promoting public safety; (4) Small wireless facilities, including facilities commonly referred to as “small cells” and distributed antenna systems are often deployed most effectively in a public right-of-way; (5) To meet the key objectives of this subchapter and federal law, wireless service providers must have access to public rights-of-way and the ability to attach to infrastructure located in public rights-of-way to increase the density of the wireless service providers' networks and provide next-generation wireless services; (6) Rates and fees for the permitting and deployment of small wireless facilities in public rights-of-way and on authority infrastructure, including poles, throughout the state, consistent with federal law, is reasonable and will encourage the deployment of robust next-generation wireless and broadband networks for the benefit of citizens throughout the state; (7) The procedures, rates, and fees in this subchapter are: (A) Consistent with federal law and multiple ordinances adopted by municipalities throughout the state; (B) Fair and reasonable when viewed from the perspective of the state's citizens and the state's interest in having robust, reliable, and technologically advanced wireless and broadband networks; and (C) Reflective of a balancing of the interests of the wireless providers deploying new facilities and the interests of authorities in recovering their costs of managing access to the public rights-of-way and the attachment space provided on authority infrastructure in the public rights-of-way; (8) Municipalities are the custodians of public rights-of-way, and public property within the public rights-of-way, within the limits of their respective jurisdictions; (9) Municipalities may adopt ordinances and regulations governing the use, construction, development, and appearance of public and private property within their respective jurisdictions; and (10) Municipalities recognize the economic and social value of data connectivity and desire to encourage wireless infrastructure investment by providing a fair and predictable process for the deployment of small wireless facilities within the public rights-of-way in a manner that is: (A) Safe; (B) Compatible with and complementary to the provision of services by the municipality and others lawfully using the rights-of-way; and (C) Consistent with the aesthetic standards of the municipality. (b) It is the intent of the General Assembly that the operation of small wireless facilities is a matter of statewide concern and interest.

Ark. Code Ann. § 23-17-502 Title.

This subchapter shall be known and may be cited as the “Small Wireless Facility Deployment Act”.

Ark. Code Ann. § 23-17-503 Definitions.

As used in this subchapter: (1) “Affiliate” means an entity that directly or indirectly controls, is controlled by, or is under common control with another party; (2) “Antenna” means communications equipment that transmits or receives an electromagnetic radio frequency signal in the provision of wireless service; (3)(A) “Antenna equipment” means equipment, switches, wiring, cabling, power sources, shelters, or cabinets associated with an antenna, located at the same fixed location as the antenna, and when collocated on a structure is mounted or installed at the same time as the antenna. (B) “Antenna equipment” does not include: (i) The structure or improvements on, under, or within which the equipment is collocated; or (ii) Wireline backhaul facilities, coaxial or fiber optic cable that is between structures, or coaxial or fiber optic cable that is otherwise not immediately adjacent to or directly associated with an antenna; (4) “Antenna facility” means an antenna and associated antenna equipment; (5) “Applicable codes” means uniform electrical reliability, building, fire, electrical, plumbing, or mechanical codes, as adopted by a recognized national code organization, or local amendments to the codes that are of general application, or local ordinances that are of general application, that address public health, safety, or welfare and are consistent with this subchapter; (6) “Applicant” means a person who submits an application as or on behalf of a wireless provider; (7) “Application” means a request submitted by an applicant to an authority for a permit: (A) To collocate small wireless facilities; or (B) To install, modify, or replace a pole on which a small wireless facility is or will be collocated in the right-of-way; (8)(A) “Authority” means a county, a municipality, a subdivision, or instrumentality thereof, including without limitation: (i) A public utility district; (ii) An irrigation district; or (iii) A municipal electric utility. (B) “Authority” does not include a state court having jurisdiction over an authority; (9) “Authority pole” means a pole owned, managed, or operated by or on behalf of an authority; (10)(A) “Collocate” or “collocate on” means the placement, mounting, replacement, or modification of a small wireless facility on, or of ground-mounted antenna equipment adjacent to, a structure. (B) “Collocate” or “collocate on” includes collocated ground-mounted antenna equipment as a small wireless facility if it meets the requirements of subdivision (25)(A)(iii)-(vi) of this section and the associated facilities on the adjacent structure meet the requirements of subdivision (25)(A)(i)-(vi) of this section; (11) “Communications service” means: (A) A cable service, as defined in 47 U.S.C. § 522(6), as it existed on January 1, 2019; (B) A telecommunications service, as defined in 47 U.S.C. § 153(53), as it existed on January 1, 2019; (C) An information service, as defined in 47 U.S.C. § 153(24), as it existed on January 1, 2019; or (D) Wireless service; (12) “Communications service provider” means: (A) A cable operator, as defined in 47 U.S.C. § 522(5), as it existed on January 1, 2019; (B) A provider of information service, as defined in 47 U.S.C. § 153(24), as it existed on January 1, 2019; (C) A telecommunications carrier, as defined in 47 U.S.C. § 153(51); or (D) A wireless provider; (13) “Control” means the direct or indirect: (A) Ownership of at least fifty percent (50%) of the equity; (B) Ability to direct at least fifty percent (50%) of voting power; or (C) Ability otherwise to direct management policies; (14) “Controlled-access facility” means a highway or street as described in § 27-68-102; (15) “Decorative pole” means an authority pole that is specifically designed and placed for aesthetic purposes and on which limited appurtenances or attachments, such as a small wireless facility, lighting, specially designed informational or directional signage, or temporary holiday or special event attachments, have been placed or are permitted to be placed according to nondiscriminatory authority rules or codes; (16) “Facility” means an antenna facility or a structure that is used for the provision of wireless service; (17) “Fee” means a onetime, nonrecurring charge; (18) “Historic district” means a group of buildings, properties, or sites that are: (A) Listed in the National Register of Historic Places or formally determined eligible for listing by the Keeper of the National Register of Historic Places, according to Section VI.D.1.a.i-v of the Nationwide Programmatic Agreement Regarding the Section 106 National Historic Preservation Act Review Process, 47 C.F.R. Part 1, Appendix C, as it existed on January 1, 2019; (B) A historic district designated under the Historic Districts Act, § 14-172-201 et seq.; or (C) A historic district otherwise designated under a local ordinance as of January 1, 2019; (19) “Micro-wireless facility” means a wireless facility that: (A) Is not larger in dimension than twenty-four inches (24") in length, fifteen inches (15") in width, and twelve inches (12") in height; (B) Has an exterior antenna that is no longer than eleven inches (11"); and (C) Is not placed any farther than ten feet (10') down the span as measured from the side of the pole; (20) “Permit” means an authorization, written or otherwise, required by an authority to perform an action or initiate, continue, or complete a project for the deployment of wireless service at a specified location; (21) “Person” means an individual, corporation, limited liability company, partnership, association, trust, authority, or other entity or organization; (22)(A) “Pole” means a pole in a right-of-way that may be used by or for wireline communications, electric distribution, lighting, traffic control, signage, or a similar function or for collocation of small wireless facilities. (B) “Pole” does not include a wireless support structure or an electric transmission structure; (23) “Rate” means a recurring charge; (24)(A) “Right-of-way” means an area on, below, or above a public utility easement, roadway, highway, street, sidewalk, alley, or similar property. (B) “Right-of-way” does not include a federal interstate highway, controlled-access facility, or a public utility easement that does not authorize the deployment sought by the wireless provider; (25)(A) “Small wireless facility” means a wireless facility that meets all of the following specifications: (i) The facility: (a) Is mounted on a structure fifty feet (50') or less in height, including the antennas; (b) Is mounted on a structure no more than ten percent (10%) taller than other adjacent structures; or (c) Does not extend an existing structure on which it is located to a height of more than fifty feet (50') or by more than ten percent (10%), whichever is greater; (ii) Each antenna associated with the deployment, excluding associated antenna equipment, is no more than three cubic feet (3 cu. ft.) in volume; (iii) All other wireless equipment associated with the structure, including the wireless equipment associated with the antenna and any preexisting associated equipment on the structure, is no more than twenty-eight cubic feet (28 cu. ft.) in volume; (iv) The facility does not require antenna structure registration under 47 C.F.R. Part 17, as it existed on January 1, 2019; (v) The facility is not located on tribal lands, as defined in 36 C.F.R. 800.16(x), as it existed on January 1, 2019; and (vi) The facility does not result in human exposure to radio frequencies in excess of the applicable safety standards specified in 47 C.F.R. 1.1307(b), as it existed on January 1, 2019. (B) “Small wireless facility” does not include: (i) The structure or improvements on, under, or within which the equipment is located or collocated or to which the equipment is attached; and (ii) Any wireline backhaul facility or coaxial or fiber optic cable that is between wireless support structures or utility poles, or that is otherwise not immediately adjacent to or directly associated with a particular antenna; (26) “Structure” means a pole or wireless support structure, whether or not it has an existing antenna facility, that is used or to be used for the provision of wireless service; (27) “Technically feasible” means that by virtue of engineering or spectrum usage the proposed placement for a small wireless facility, or its design, concealment measures, or site location, can be implemented without a material reduction in the functionality of the small wireless facility; (28) “Wireless infrastructure provider” means a person or an affiliate thereof, including a person authorized to provide communications service in the state, that builds or installs facilities for the provision of wireless service, but that is not a wireless service provider; (29) “Wireless provider” means a wireless infrastructure provider or a wireless service provider; (30) “Wireless service” means any service using licensed or unlicensed spectrum, including the use of Wi-Fi, whether at a fixed location or mobile, provided to the public; (31) “Wireless service provider” means a person who provides wireless service; (32)(A) “Wireless support structure” means a structure, including: (i) A monopole; (ii) A tower, either guyed or self-supporting; (iii) A billboard; (iv) A building; or (v) Any other existing or proposed structure designed to support or that is capable of supporting small wireless facilities, other than a structure designed solely for the collocation of small wireless facilities. (B) “Wireless support structure” does not include a pole; and (33) “Wireline backhaul facility” means an aboveground or underground facility used to transport communications services from a wireless facility to a network.

Ark. Code Ann. § 23-17-504 Exclusive arrangements.

An authority shall not enter into an exclusive arrangement with a person for use of the right-of-way for the collocation of small wireless facilities or the installation, operation, marketing, modification, maintenance, or replacement of poles for the collocation.

Ark. Code Ann. § 23-17-505 Use of rights-of-way by wireless provider.

(a) Subject to this subchapter, a wireless provider shall have the right, as a permitted use not subject to zoning review or approval, to collocate, maintain, modify, operate, and replace small wireless facilities and to install, maintain, modify, and replace poles it owns or manages or, with the permission of the owner, a third party's pole, associated with a small wireless facility, along, across, upon, and under the right-of-way. (b) Small wireless facilities and associated poles shall be installed and maintained as to not obstruct or hinder the usual travel or public safety of the right-of-way or the usage of the right-of-way by utilities.

Ark. Code Ann. § 23-17-506 Requirements — Height limits — Standards.

(a) Each new or modified pole installed in the right-of-way for the purpose of the collocation of small wireless facilities shall not exceed the greater of: (1) Fifty feet (50') in height above ground level; or (2) Ten percent (10%) taller than the tallest existing pole in place in the same right-of-way as of September 1, 2019, within three hundred feet (300') of the new or modified pole. (b) A new small wireless facility in the right-of-way shall not extend more than ten percent (10%) above the existing structure on which it is located or fifty feet (50') above ground level, whichever is greater. (c) A wireless provider shall have the right to collocate a wireless facility and install, maintain, modify, and replace a pole that exceeds the height limits required under subsection (a) of this section along, across, upon, and under the right-of-way, subject to this section and any applicable zoning regulations. (d) A wireless provider shall not install a small wireless facility or pole in a historic district without complying with the requirements of general application for structures within the historic district. (e) A wireless provider may replace decorative poles when necessary to deploy a small wireless facility so long as the replacement reasonably conforms to the design of the original decorative pole.

Ark. Code Ann. § 23-17-507 Damage and repair — Replacements — Abandonment — Removal.

(a)(1) A wireless provider shall repair all damage to the right-of-way directly caused by the activities of the wireless provider in the right-of-way and return the right-of-way to its functional and aesthetic equivalence before the damage under the competitively neutral, reasonable requirements and specifications of the authority. (2) If the wireless provider fails to make the repairs required by the authority within a reasonable time after written notice, the authority may make those repairs and charge the applicable party the actual and reasonable documented cost, including overhead, of the repairs. (b)(1) A wireless provider is not required to replace or upgrade an existing pole except for reasons of structural necessity or compliance with applicable codes. (2) A wireless provider may, with the permission of the pole owner, replace or modify existing poles, but any such replacement or modification shall substantially conform to the design aesthetics of the pole being modified or replaced. (c)(1) A wireless provider shall notify the authority at least thirty (30) days before the wireless provider's abandonment of a small wireless facility. (2) If the wireless provider fails to remove the abandoned small wireless facility within ninety (90) days after the notice, the authority may undertake the removal and recover the actual and reasonable documented cost, including overhead, of the removal from the wireless provider, or its successors or assigns. (d)(1) An authority may order the removal of a small wireless facility or associated pole in the right-of-way that violates § 23-17-505, § 23-17-506, or applicable codes. (2) The authority shall provide written notice of the violation to the owner of the small wireless facility at least thirty (30) days before removal to afford the owner the opportunity to conduct repairs or removal or otherwise remedy the violation. (3)(A) If the authority determines that a wireless provider's activity in a right-of-way under this subchapter creates an imminent risk to public safety, the authority may provide written notice to the wireless provider and demand that the wireless provider address the risk. (B) If the wireless provider fails to reasonably address the risk within twenty-four hours of the written notice, the authority may take or cause to be taken action to reasonably address the risk and charge the wireless provider the reasonable documented cost of the actions. (e)(1) A wireless provider shall not collocate a small wireless facility or install, modify, or replace a pole in the right-of-way that: (A) Materially interferes with the safe operation of traffic control equipment; (B) Materially interferes with sight lines or clear zones for transportation or pedestrians; (C) Materially interferes with compliance with the Americans with Disabilities Act of 1990, Pub. L. No. 101-336, or similar federal or state standards regarding pedestrian access or movement; or (D) Fails to comply with applicable codes. (2)(A) For an authority that requires permits under § 23-17-510, compliance with these criteria will be determined during the permitting process. (B) An authority that does not require a permit under § 23-17-510 shall provide at least thirty (30) days' notice of and a reasonable opportunity to cure a violation of subdivision (e)(1) of this section.

Ark. Code Ann. § 23-17-508 Aesthetic standards.

(a) An authority that has adopted an ordinance under § 14-17-209 or § 14-56-416 may adopt and enforce standards that govern the aesthetic appearance of small wireless facilities and associated poles to ensure coordinated, adjusted, and harmonious development, as provided in this section. (b) Aesthetic standards adopted by an authority for small wireless facilities and associated poles shall meet the following requirements: (1) The aesthetic standards shall be: (A) Reasonable, in that they are technically feasible and reasonably directed to avoiding or remedying unsightly or out-of-character deployments; (B) No more burdensome than those applied to other types of utility and communications infrastructure deployments; and (C) Objective and published at least ninety (90) days in advance of the filing of an application under this subchapter; (2) Any design or concealment measures are not considered a part of the small wireless facility for purposes of the size parameters in the definition of “small wireless facility”; and (3) An authority may deny an application for not complying with aesthetic requirements only if the authority finds that the denial does not prohibit or have the effect of prohibiting the provision of wireless service. (c) An authority may prohibit wireless providers from installing poles in the right-of-way in areas where the authority has required that all communications and electric lines be placed underground, if: (1) The authority has required all electric and communications lines to be placed underground by a date certain that is three (3) months before the submission of the application; (2) Any poles the authority allows to remain shall be made available to wireless providers for the collocation of small wireless facilities, and may be replaced by a wireless provider to accommodate the collocation of small wireless facilities, in compliance with this subchapter; (3) A wireless provider may install a new pole in the designated area that otherwise complies with this section when it is not able to provide wireless service by collocating on a remaining structure; and (4)(A) For small wireless facilities installed before an authority adopts requirements that communications and electric lines be placed underground, an authority adopting the requirements shall: (i) Permit a wireless provider to maintain the small wireless facilities in a place on any pole not required to be removed, subject to any applicable pole attachment agreement with the pole owner; or (ii) Permit the wireless provider to replace an existing pole within fifty feet (50') of the prior location. (B) An authority may require wireless providers to comply with reasonable and nondiscriminatory horizontal spacing requirements of general application for new poles and ground-mounted small wireless facilities, but the requirements shall not prevent a wireless provider from serving any location. (d)(1) When a wireless provider applies to install a new pole in the right-of-way in an area zoned for residential use, the authority may propose an alternative location in the right-of-way within one hundred feet (100') of the location stated in the application, and the wireless provider shall use the authority's proposed alternative location unless the location imposes technical limits or significant additional costs. (2) The wireless provider shall certify that it has made the determination in good faith, based on the assessment of a licensed engineer, and the wireless provider shall provide a written summary of the basis for the determination. (e) Aesthetic standards shall be effective after approval by ordinance, resolution, or rule of the governing body of the authority. (f)(1) The board of zoning adjustment of an authority may: (A) Hear appeals of the decision of the administrative officers in respect to the enforcement and application of the aesthetic standards, and may affirm or reverse, in whole or in part, the decision of the administrative officers; and (B) Hear requests for variances from the literal provisions of the aesthetic standards and grant the variances only when it is necessary to avoid the prohibition of wireless service or otherwise comply with the law. (2) Decisions of the board in respect to subdivision (f)(1) of this section shall be subject to appeal only to a court of record having jurisdiction.

Ark. Code Ann. § 23-17-509 Collocation on authority poles.

(a) This section applies to activities of a wireless provider collocating small wireless facilities on authority poles in the authority's right-of-way or in a right-of-way controlled by the Arkansas Department of Transportation located within an authority. (b)(1) A person owning, managing, or controlling authority poles in the right-of-way shall not enter into an exclusive arrangement with any person for the right to attach to the poles. (2) A person who purchases or otherwise acquires an authority pole is subject to the requirements of this section. (c) An authority shall allow the collocation of small wireless facilities on authority poles on nondiscriminatory terms and conditions using the process in § 23-17-510. (d) The rate to collocate on authority poles is provided in § 23-17-511. (e)(1)(A) As part of an application to collocate a small wireless facility on an authority pole, the wireless provider shall submit make-ready design drawings and work descriptions that enable the pole to support the requested collocation by the wireless provider, including pole replacement if necessary. (B) An authority may amend the make-ready design drawings and work to comply with applicable codes before the issuance of a permit to the extent reasonably necessary. (2) The rates, fees, and terms and conditions for the make-ready work to collocate on an authority pole shall be nondiscriminatory, competitively neutral, and commercially reasonable and shall comply with this subchapter. (3) The authority shall not require more make-ready work than required to meet applicable codes or industry standards nor may the fees for make-ready work include costs related to preexisting or prior damage or noncompliance. (4)(A) An authority may require replacement of an authority pole only if the collocation would make the authority pole structurally unsound. (B) The authority may require that the replaced authority pole have the same functionality as the pole being replaced. (C) If the authority pole is replaced, the authority shall take ownership of the new pole and operate authority fixtures on the pole. (5)(A) Make-ready fees charged by an authority may include the amount the authority pays a professional engineer registered in Arkansas to review the wireless provider's make-ready work plans. (B) Fees for make-ready work shall not include any revenue or contingency-based consultant's fees or expenses of any kind. (6) Within sixty (60) days of the receipt of the application filed to collocate on an authority pole, the authority shall elect to: (A) Perform the make-ready work necessary to enable the pole to support the requested collocation by a wireless provider and provide a good-faith estimate for the work, including pole replacement, if necessary; or (B) Authorize the wireless provider to perform the make-ready work. (7)(A) The authority shall complete make-ready work it elects to perform, including any pole replacement, within sixty (60) days of written acceptance of the good-faith estimate of the applicant. (B) If the authority electing to perform the make-ready work has not completed the work within sixty (60) days after the written acceptance and deposit of the good-faith estimate by the applicant, the applicant may demand a return of any deposited funds and proceed with the make-ready work as described in subdivision (e)(1)(A) of this section, using authorized, qualified contractors approved by the authority with the authorization not to be unreasonably withheld, conditioned, or delayed. (f)(1) An authority may reserve space on an authority pole for future public safety or transportation uses in a documented and approved plan in place at the time an application is filed. (2) A reservation of space shall not preclude placement of a pole or collocation of a small wireless facility. (3) If replacement of the authority's pole is necessary to accommodate the collocation of the small wireless facility and future use, the wireless provider shall pay for the replacement of the authority pole, and the replaced pole shall accommodate future use.

Ark. Code Ann. § 23-17-510 Permits.

(a)(1) This section applies to all permits required for the collocation of small wireless facilities and to the permitting of the installation, modification, and replacement of associated poles by a wireless provider that: (A) Is in an authority's right-of-way; or (B) Is in a right-of-way controlled by the Arkansas Department of Transportation located within the jurisdiction of an authority if the application is for collocation on an authority pole or if the authority has adopted aesthetic standards under § 23-17-508. (2) A permit issued under subdivision (a)(1)(B) of this section remains subject to the rules of the department. (b) Except as provided in this subchapter, an authority shall not prohibit, regulate, or charge for the collocation of small wireless facilities or the installation, modification, or replacement of associated poles that may be permitted in this section. (c) An authority may require an applicant to obtain one (1) or more permits to collocate small wireless facilities or to install a new, modified, or replacement pole associated with a small wireless facility as provided in §§ 23-17-505 – 23-17-507, provided the permits are of general applicability and do not apply exclusively to small wireless facilities. (d) An authority shall receive and process applications subject to the following requirements: (1) An authority shall not directly or indirectly require an applicant to perform services or provide goods unrelated to the permit, such as in-kind contributions to the authority, including without limitation reserving fiber, conduit, or space on the applicant's pole for the authority; (2) An authority may require an applicant to submit the information and fees stated in subdivisions (d)(2)(A)-(J) of this section for a permit for a deployment in the authority's right-of-way or on an authority pole in the right-of-way controlled by the department located within an authority and may only require an applicant to submit the information and fees stated in subdivisions (d)(2)(A)-(C) of this section and subdivision (d)(2)(J) of this section for deployments of or on poles that are not owned by the authority located in the right-of-way controlled by the department located within an authority: (A) Identification of the applicant; (B) A map or description of the location of the facilities; (C) An illustration that shows the final appearance of the facilities; (D) Engineering drawings of the facilities to be installed, including required make-ready work to be performed; (E) Electrical load information; (F) Pole loading calculations; (G) Worker safety information related to small-wireless-facility installation; (H) Evidence of bonding, if required; (I) Evidence of insurance, if required; and (J) Required application fees; (3) An authority shall not require: (A) The collocation of small wireless facilities on any specific pole or category of poles or require multiple antenna facilities on a single pole; (B) The use of specific pole types or configurations when installing new or replacement poles; or (C) The underground placements of small wireless facilities that are, or are designated in an application, to be pole-mounted or ground-mounted; (4) An authority shall not limit the collocation of small wireless facilities by minimum horizontal separation distance requirements from existing small wireless facilities, poles, or wireless support structures; (5) The applicant shall attest that the small wireless facilities will be operational for use by a wireless service provider within one (1) year after the permit issuance date, unless the authority and the applicant agree to extend this period or delay is caused by lack of commercial power, communications, transportation facilities to the site, or any other factors outside of the applicant's control; (6)(A) Within ten (10) days of receiving an application, an authority shall determine and notify the applicant in writing whether the application is complete. (B) If an application is incomplete, the authority shall specifically identify the missing information in writing. (C) The processing deadline in subdivision (d)(7) of this section shall restart at zero (0) on the date the applicant provides the missing information identified under subdivision (d)(6)(B) of this section to complete the application; (7)(A) Applications shall be processed on a nondiscriminatory basis within: (i) Sixty (60) days of receipt of an application for the collocation of a small wireless facility; and (ii) Ninety (90) days for an application to install, modify, or replace a pole on which a small wireless facility is or will be collocated. (B) The processing deadline may be tolled by agreement of the applicant and the authority. (C) If an authority fails to act on a complete application within the applicable deadline, the application shall be deemed to be approved ten (10) days after written notice is provided by the applicant to the authority that the time period for acting on the application has lapsed; (8) An authority may deny a proposed collocation of a small wireless facility or the installation, modification, or replacement of a pole in its right-of-way that meets the requirements in § 23-17-506(a)-(c) only if authorized under subdivision (d)(9) of this section or subdivision (d)(10) of this section or the proposed deployment: (A) Materially interferes with the safe operation of traffic control equipment; (B) Materially interferes with sight lines or clear zones for transportation or pedestrians; (C) Materially interferes with compliance with the Americans with Disabilities Act of 1990, Pub. L. No. 101-336, or similar federal or state standards regarding pedestrian access or movement; (D) Fails to comply with applicable codes; or (E) Fails to comply with § 23-17-506(d) and (e) and § 23-17-508; (9) An authority may deny a proposed collocation of a small wireless facility on an authority pole in a right-of-way controlled by the department located within the authority that meets the requirements in § 23-17-506 only if the proposed collocation meets the criteria in subdivision (d)(8)(A) of this section or subdivision (d)(8)(D) of this section or fails to comply with aesthetic standards adopted in an ordinance under § 23-17-508; (10) An authority may deny a proposed collocation of a small wireless facility or the installation, modification, or replacement of a pole in a right-of-way controlled by the department located within the authority that meets the requirements in § 23-17-506 only if the proposed deployment fails to comply with aesthetic standards adopted in an ordinance under § 23-17-508; (11)(A) The authority shall document the basis for a denial, including the specific code, rule, or statutory authority on which the denial is based, and send the documentation to the applicant on or before the day the authority denies an application. (B) The applicant may cure the deficiencies identified by the authority and resubmit the application within thirty (30) days of the denial without paying an additional application fee. (C) The authority shall approve or deny the revised application within thirty (30) days of resubmission and limit its review to the deficiencies cited in the denial; (12)(A)(i) An applicant seeking to collocate small wireless facilities within the jurisdiction of a single authority shall be allowed at the applicant's discretion to file a batched application for small wireless facilities and associated poles and receive a single permit for the collocation of multiple small wireless facilities and the placement of associated poles. (ii) However, the denial of one (1) or more small wireless facilities in a batched application shall not delay processing of any other small wireless facilities or poles in the same consolidated application. (B) Batched applications shall be collectively processed according to the procedures in this section. (C) A consolidated application that includes new pole deployments shall be subject to a ninety-day time frame for approval; (13)(A) Installation or collocation for which a permit is granted under this section shall be completed within one (1) year after the permit issuance date unless the authority and the applicant agree to extend this period or a delay is caused by circumstances beyond the applicant's control. (B) Approval of an application authorizes the applicant to undertake the installation or collocation; (14) Subject to applicable relocation requirements and the applicant's right to terminate at any time, the applicant shall operate and maintain the small wireless facilities and any associated poles covered by the permit for a period of not less than ten (10) years, which shall be renewed for equivalent durations so long as the small wireless facilities comply with the criteria stated in subdivision (d)(8) of this section; and (15) An authority shall not institute, either expressly or de facto, a moratorium on: (A) Filing, receiving, or processing applications; or (B) Issuing permits or other approvals, if any, for the collocation of small wireless facilities or the installation, modification, or replacement of associated poles. (e)(1) An authority shall not require an application for: (A) Routine maintenance; (B) The replacement of small wireless facilities with small wireless facilities that are substantially similar or the same size or smaller; or (C) The installation, placement, maintenance, operation, or replacement of a micro-wireless facility that is suspended on cables that are strung between existing poles and that complies with the applicable codes. (2) However, an authority may require a permit for work that requires excavation or closure of sidewalks or vehicular lanes within the right-of-way for the activities. (3) A permit shall be issued to the applicant on a nondiscriminatory basis upon terms and conditions applied to any other person's activities in the right-of-way that requires excavation, closing of sidewalks, or vehicular lanes.

Ark. Code Ann. § 23-17-511 Fees and rates.

(a) This section shall govern an authority's rates and fees for use of authority poles and the placement of a small wireless facility or associated poles. (b) An authority shall not require a wireless provider to pay any rates, fees, or compensation to the authority or other person other than what is expressly authorized by this subchapter for the right to use or occupy a right-of-way, for collocation of small wireless facilities on or in structures in the right-of-way, or for the installation, maintenance, modification, and replacement of associated poles in the right-of-way. (c) Application fees for a permit shall be nondiscriminatory and shall not collectively exceed the following: (1) One hundred dollars ($100) for each small wireless facility; or (2) Two hundred fifty dollars ($250) for the installation, modification, or replacement of a pole together with the collocation of an associated small wireless facility in the right-of-way. (d)(1) Except as described in § 23-17-510(e), a wireless provider shall pay an authority compensation for use of the right-of-way, an annual rate of up to thirty dollars ($30.00) per small wireless facility. (2) A wireless provider shall pay an authority compensation for collocation of small wireless facilities on authority poles an annual rate of up to two hundred forty dollars ($240) for each authority pole. (e) A wireless provider is not required to pay an authority compensation for micro-wireless facilities that are suspended on cables strung between existing utility poles in the right-of-way as long as the wireless provider compensates the authority through other licenses or franchises held directly or through one (1) of the wireless provider's affiliates for the placement of the suspension cables in the right-of-way. (f) The rates under this section, together with a onetime application fee, shall be the total compensation that the wireless provider is required to pay the authority for the deployment of small wireless facilities in the right-of-way and any associated poles.

Ark. Code Ann. § 23-17-512 Local authority.

(a)(1) Subject to this subchapter and applicable federal law, an authority may continue to exercise zoning, land use, planning, and permitting authority within its territorial boundaries with respect to wireless support structures, including the enforcement of applicable codes. (2) An authority shall not have or exercise any jurisdiction or authority over the design, engineering, construction, installation, or operation of a small wireless facility located in an interior structure or upon the site of a campus, stadium, or athletic facility not owned or controlled by the authority, other than to require compliance with applicable codes. (b) This subchapter does not authorize the state or any political subdivision, including an authority, to require small wireless facility deployment or to regulate wireless service.

Ark. Code Ann. § 23-17-513 Arkansas Public Service Commission — Jurisdiction over pole attachments.

(a) This subchapter does not limit, abrogate, or supersede the jurisdiction of the Arkansas Public Service Commission, or any rule or order of the commission concerning pole attachments under § 23-4-1001 et seq., or any agreement of a public utility pole owner and attacher related to the rates, terms, and conditions for a pole attachment. (b) This subchapter does not authorize: (1) Any attachment or installation to or on an electric-cooperative-owned pole; (2) Any attachment or installation within a nonpublic right-of-way acquired by an electric cooperative; or (3) Use of an electric-cooperative-owned line, duct, conduit, similar structure, or equipment of any type. (c) This subchapter does not authorize: (1) Any attachment or installation to or on an investor-owned electric-utility-owned pole; (2) Any attachment or installation within a nonpublic right-of-way acquired by an investor-owned electric public utility; or (3) Use of an investor-owned electric-public-utility-owned line, duct, conduit, similar structure, or equipment of any type.

Ark. Code Ann. § 23-17-514 Implementation.

(a)(1) An authority may adopt an ordinance that makes available to wireless providers rates, fees, and other terms that comply with this subchapter. (2) Subject to the other provisions of this section, in the absence of an ordinance or agreement that substantially implements this subchapter and until such an ordinance is adopted or agreement is reached, if at all, a wireless provider may collocate small wireless facilities and install associated poles under the requirements of this subchapter. (3) An authority shall not require a wireless provider to enter into an agreement to implement this subchapter, but such agreements are permissible if voluntary and nondiscriminatory. (b) Ordinances and agreements implementing this subchapter are public or private arrangements and are matters of legitimate and significant statewide concern. (c)(1) A provision of an agreement or ordinance with an effective date before September 1, 2019, that does not fully comply with this subchapter shall apply only to small wireless facilities and associated poles that were operational before September 1, 2019, and shall be deemed invalid and unenforceable beginning on the one hundred eighty-first day after September 1, 2019. (2) To the extent an agreement or ordinance, or part thereof, is invalid under subdivision (c)(1) of this section, small wireless facilities and associated poles that became operational before September 1, 2019, under the agreement or ordinance, may remain installed and be operated under the requirements of this subchapter. (d)(1) An agreement or ordinance with an effective date of September 1, 2019, or later that applies to small wireless facilities and associated poles is invalid and unenforceable unless it fully complies with this subchapter. (2) In the absence of an ordinance or agreement that complies with this subchapter, a wireless provider may install and operate small wireless facilities and associated poles in the right-of-way under the requirements of this subchapter.

Ark. Code Ann. § 23-17-515 Dispute resolution.

(a) A court of competent jurisdiction shall have jurisdiction to determine disputes arising under this subchapter. (b) Pending resolution of a dispute concerning rates for collocation of small wireless facilities on authority poles in the right-of-way, the authority owning or controlling the structure shall allow the collocating person to collocate at annual rates of no more than: (1) Thirty dollars ($30.00) per small wireless facility for use of the right-of-way; and (2) An annual rate of up to two hundred forty dollars ($240) for each authority pole used for the collocation of small wireless facilities, with rates to be trued up upon final resolution of the dispute. (c) Any disputes, wherever filed, shall be pursued according to accelerated docket or complaint procedures, if available.

Ark. Code Ann. § 23-17-516 Indemnification, insurance, and bonding.

(a) An authority may adopt reasonable indemnification, insurance, and bonding requirements related to the deployment of small wireless facilities and associated poles under this subchapter. (b)(1) An authority may require a wireless provider to defend, indemnify, and hold harmless the authority and its officers, agents, and employees against any claims, demands, damages, lawsuits, judgments, costs, liens, losses, expenses, and attorney's fees resulting from the installation, construction, repair, replacement, operation, or maintenance of poles, small wireless facilities, or attachments to authority poles to the extent directly caused by the negligence of the wireless provider, its contractors, subcontractors and their officers, employees, or agents. (2) A wireless provider has no obligation to defend, indemnify, or hold harmless an authority or its officers, agents, or employees against any liabilities or losses due to or caused by the sole negligence of the authority or its employees or agents. (c)(1) An authority may require a wireless provider to have in effect insurance coverage against the claims, demands, damages, lawsuits, judgments, costs, liens, losses, expenses, and attorney's fees described in subsection (b) of this section, so long as the authority imposes similar requirements on other right-of-way users and the requirements are reasonable and nondiscriminatory, and provided that an authority does not require a wireless provider to obtain insurance naming the authority or its officers and employees as additional insureds. (2)(A) A wireless provider with net assets of at least five hundred million dollars ($500,000,000), including the assets of its affiliates, may self-insure as to any required coverage. (B) An authority may require reasonable proof that the wireless provider is eligible under subdivision (c)(2)(A) of this section to self-insure. (C) A wireless provider shall immediately notify each authority in which the wireless provider has obtained permits of any change in its self-insured status as to any coverage required under this subsection, and of any change in the ability of the wireless provider to cover the losses specified in subdivision (c)(1) of this section. (d)(1) An authority may adopt bonding requirements for small wireless facility collocations if the authority imposes similar requirements in connection with other right-of-way users. (2) The purpose of the bonds shall be to: (A) Provide for the removal of abandoned or improperly maintained small wireless facilities, including those that an authority determines need to be removed to protect public health, safety, or welfare; and (B) Recoup rates or fees that have not been paid by a wireless provider in over twelve (12) months, so long as the wireless provider has received reasonable notice from the authority of any of the noncompliance listed above and an opportunity to cure. (3)(A) Bonding requirements shall not exceed one thousand dollars ($1,000) per small wireless facility. (B) For wireless providers with multiple small wireless facilities within the jurisdiction of a single authority, the total bond amount across all facilities may not exceed ten thousand dollars ($10,000), which amount may be combined into a single bond instrument. (C) An authority may waive bonding requirements for a wireless provider that already maintains bonding for other operations. (D) An authority shall not require a cash bond, unless either of the following applies: (i) The wireless provider has failed to obtain or maintain a bond required under this section; or (ii) The surety has defaulted or failed to perform on a bond given to the authority on behalf of the wireless provider.

Ark. Code Ann. § 23-17-517 Overlapping jurisdiction of management of right-of-way.

(a) In an area where more than one (1) authority may assert jurisdiction over a right-of-way, only the authority controlling the smallest geographic territory shall be authorized to adopt standards under § 23-17-508, issue permits under § 23-17-510, or require the payment of fees under § 23-17-511. (b) This section does not restrict the authority of the Arkansas Department of Transportation over the location of a facility in a right-of-way controlled by the department.

Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.23.htmlFetched: 11/8/2026