Amends TCA Title 4; Title 65 and Title 67, Chapter 6.

This bill adds and revises various provisions regarding broadband service, as follows:<br /> <br /> (1) This bill authorizes rural electric cooperatives to provide broadband internet and other related or similar services outside of the cooperative's service area. If the cooperative provides service outside its service area, it must make the service available to at least as many residential locations as business locations in the area outside of the cooperative's electric service footprint. Prior to providing a service outside of the service area, the cooperative must:<br /> <br /> (A) Obtain the written consent of each municipal electric system or electric cooperative system in whose service area the cooperative will provide the service; and<br /> <br /> (B) Provide notice to the department of economic and community development that the cooperative will not receive from municipal electric systems and electric cooperative systems rates, terms, or conditions for accessing the systems' electric poles that are more favorable than those made available to all other providers of broadband services by the systems; <br /> <br /> (2) Present law prohibits a cooperative or a joint venture in which an electric cooperative is a member from engaging in the business of providing alarm systems. This bill removes those prohibitions; and<br /> <br /> (3) Beginning January 1, 2023, through December 31, 2023, the bill provides an exemption from state sales and use tax for all purchases and leases of all equipment machinery, or other infrastructure that is used in producing broadband communication services or to provide internet access.<br /> <br /> ON APRIL 27, 2022, THE SENATE ADOPTED AMENDMENTS # 1 AND 2, AND PASSED SENATE BILL 2480, AS AMENDED.<br /> <br /> AMENDMENT #1 removes all of the provisions of this bill except for the sales and use tax exemption, described above in the bill summary in item (3).<br /> <br /> AMENDMENT #2 reduces from five years to three years the duration of the sales tax exemption created by this bill. Under this amendment, the exemption will be in effect from July 1, 2022, through June 30, 2025.<br /> <br /> This amendment specifies that the sales tax exemption created by this bill does not apply to the retail sale of personal consumer electronics.<br /> <br /> This amendment requires the commissioner of revenue to reimburse counties and municipalities for loss of revenue resulting from the tax exemption provided for in this bill. Subject to appropriations, this amendment requires that a sum must be earmarked and allocated from the general fund for such reimbursements.<br />