Legislature(2019 - 2020)ADAMS ROOM 519

05/11/2019 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 139 AK PERM. FUND CORP. PROCUREMENT EXEMPTION TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 74 INTERNET FOR SCHOOLS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 87 LIQUEFIED NATURAL GAS STORAGE TAX CREDIT TELECONFERENCED
Moved CSHB 87(FIN) Out of Committee
CS FOR SENATE BILL NO. 74(FIN)                                                                                                
                                                                                                                                
     "An Act relating to funding for Internet services for                                                                      
     school districts; and providing for an effective                                                                           
     date."                                                                                                                     
                                                                                                                                
10:27:28 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilson reported  the companion bill HB  75 had been                                                                    
heard previously and public testimony had been taken.                                                                           
                                                                                                                                
MARIDON BOARIO,  STAFF, SENATOR  LYMAN HOFFMAN,  , discussed                                                                    
the sponsor statement for SB 74 (copy on file):                                                                                 
                                                                                                                                
     SB 74  increases the broadband requirement  for schools                                                                    
     from  10  megabits per  second  (Mbps)  to 25  Mbps  of                                                                    
     download  speed and  provides funding  to help  schools                                                                    
     reach  the   25  Mbps  through  the   School  Broadband                                                                    
     Assistance Grant (BAG).                                                                                                    
                                                                                                                                
     Districts   that  qualify   for  discounted   rate  for                                                                    
     internet services under  the Federal Universal Services                                                                    
     Program are eligible.                                                                                                      
                                                                                                                                
     The Universal  Service Administrative  Company, Schools                                                                    
     and  Libraries  Program,  commonly known  as  "E-rate,"                                                                    
     provides  discounts  of  up   to  90  percent  to  help                                                                    
     eligible  schools and  libraries in  the United  States                                                                    
     obtain   affordable  telecommunications   and  internet                                                                    
     access.                                                                                                                    
                                                                                                                                
     The School BAG  was established in 2014  and created to                                                                    
     assist schools to reach internet  download speeds of 10                                                                    
     Mbps. Currently  the grant funds  may be used  to cover                                                                    
     eligible  costs incurred  by the  school districts  for                                                                    
     schools that have  less than 10 Mbps  each fiscal year.                                                                    
     Since 2014 new and  improved technologies and increases                                                                    
     to internet  services have allowed for  more and faster                                                                    
     delivery  of internet  services.  Because  the cost  of                                                                    
     internet  in some  rural districts  has decreased,  the                                                                    
     annual  internet  costs  have  fallen  below  the  2014                                                                    
     benchmark  established by  state law.  To allow  school                                                                    
     districts  to  utilize  these   advances,  SB  74  will                                                                    
     increase the minimum requirement of  Mbps from 10 to 25                                                                    
     which will increase the  amount of Broadband Assistance                                                                    
     Grants  (BAG)   that  the  state  can   pay  to  school                                                                    
     districts.                                                                                                                 
                                                                                                                                
     In  2019,  80  schools  in  20  school  districts  will                                                                    
     benefit from the school BAG awards.                                                                                        
                                                                                                                                
     The   funding  leverages   federal   E-rate  funds   at                                                                    
     approximately 8:1. The program  allows for leverage for                                                                    
     up  to 9:1  based on  a  formula for  free and  reduced                                                                    
     lunch calculation by district.                                                                                             
                                                                                                                                
     Thank  you for  your  consideration of  SB  74 to  help                                                                    
     bring improved  broadband services to rural  Alaska and                                                                    
     improve service for schools across the state.                                                                              
                                                                                                                                
     I  urge your  support  of this  legislation to  provide                                                                    
     Alaskan  students,  classrooms  and  teachers  and  all                                                                    
     educators better access to the digital world.                                                                              
                                                                                                                                
10:30:25 AM                                                                                                                   
                                                                                                                                
Ms. Boario  indicated that the  state BAG  (Broadband Access                                                                    
Grant)program  was  designed  to help  schools  cover  their                                                                    
share of the  E-rate costs of approximately  20 percent. The                                                                    
legislature  implemented the  program  to increase  internet                                                                    
speeds  by helping  school districts  cover their  broadband                                                                    
expenses after  the federal E-rate subsidy  was applied. She                                                                    
added that  the program was  voluntary, and the  grants were                                                                    
awarded in August each year.  She noted that the grant could                                                                    
serve  up to  170 schools  in 30  school districts  totaling                                                                    
over 20 thousand students.                                                                                                      
                                                                                                                                
Co-Chair Wilson asked  for an explanation of  the changes in                                                                    
the Senate Finance Committee  Substitute version. Ms. Boario                                                                    
explained that a question arose  about whether the increased                                                                    
funding  for the  grant program  would impact  the disparity                                                                    
test for  the federal impact  aid. In addition,  the funding                                                                    
was  not  distributed  equally across  the  districts  which                                                                    
could affect the disparity test.  Co-Chair Wilson asked what                                                                    
districts were  included in the  disparity test.  Ms. Boario                                                                    
replied that  because the funding  was different due  to the                                                                    
higher broadband  costs in some districts;  districts paying                                                                    
more received  higher federal subsidy and  BAG grant awards,                                                                    
which  could affect  the disparity  test. The  districts did                                                                    
not receive equal funding. Co-Chair  Wilson asked Ms. Boario                                                                    
to cite where in the bill  the changes were made. Ms. Boario                                                                    
answered that  on page  1, line  10, Section  2 and  page 2,                                                                    
line  6, Section  3 additional  conditional effect  language                                                                    
was inserted as follows:                                                                                                        
                                                                                                                                
     Sec. 2.  The uncodified law  of the State of  Alaska is                                                                    
     amended by adding a new section to read:                                                                                   
                                                                                                                                
        CONDITIONAL EFFECT;  NOTIFICATION. (a) Section  1 of                                                                    
     this Act takes effect 13  only if, on or before January                                                                    
     1,  2020,   the  Department  of  Education   and  Early                                                                    
     Development has received  certification from the United                                                                    
     States  Department  of  Education that  E-rate  funding                                                                    
     under  the federal  universal services  program may  be                                                                    
     excluded from the  federal 1 disparity test  2 under 34                                                                    
     C.F.R. 222.160-169, as amended.                                                                                            
                                                                                                                                
     Sec. 3.  If, under sec. 2  of this Act, sec.  1 of this                                                                    
     Act takes  effect, it  takes effect  the day  after the                                                                    
     date   the   commissioner   of  education   and   early                                                                    
     development  receives  certification  from  the  United                                                                    
     States Department of Education.                                                                                            
                                                                                                                                
Co-Chair  Wilson  asked   how  long  it  took   to  get  the                                                                    
certification and whether it was  requested in the past. Ms.                                                                    
Boario answered  that it had  never been request for  the E-                                                                    
rate program. However, she was  aware that the Department of                                                                    
Transportation  and  Public   Facilities  (DOT)  funds  were                                                                    
exempted from the disparity test.                                                                                               
                                                                                                                                
HEIDI TESHNER, ADMINISTRATIVE  SERVICES DIRECTOR, DEPARTMENT                                                                    
OF  EDUCATION AND  EARLY DEVELOPMENT,  OFFICE OF  MANAGEMENT                                                                    
AND   BUDGET,  answered   that   the  certification   waiver                                                                    
requested  from   the  United  States  (US)   Department  of                                                                    
Education  asked  if  the   E-rate  funding  that  districts                                                                    
received  could  be  moved  to a  special  revenue  fund  or                                                                    
removed completely  from the  calculation for  the disparity                                                                    
test.                                                                                                                           
                                                                                                                                
Co-Chair  Wilson asked  how long  the  waiver process  would                                                                    
take.  Ms. Teshner  hoped that  the  certification would  be                                                                    
issued in  several weeks. Co-Chair  Wilson spoke to  the BAG                                                                    
awards for  2019. She observed  that the grants  were mostly                                                                    
awarded  to  rural schools.  She  asked  whether most  urban                                                                    
schools paid for their own internet.                                                                                            
                                                                                                                                
10:34:40 AM                                                                                                                   
                                                                                                                                
Ms.  Boario answered  yes  "conditionally." Primarily  rural                                                                    
schools were affected  due to the high cost  of internet and                                                                    
urban schools were  able to obtain high  speed internet much                                                                    
cheaper  than  in rural  areas  and  the grants  applied  to                                                                    
schools  only  receiving  10 Mbps.  Technically  the  grants                                                                    
applied  to all  schools, but  some schools  were ineligible                                                                    
due to better connectivity.  Co-Chair Wilson had never known                                                                    
her school district to  not  want money.  She knew Fairbanks                                                                    
had problems  with its internet  service at times  and could                                                                    
not  perform testing  in all  schools on  the same  day. She                                                                    
asked  for  clarification   regarding  eligibility  for  the                                                                    
grant. Ms.  Boario replied that  the e-rate  funding federal                                                                    
subsidy  was utilized  by  all schools  in  Alaska. The  BAG                                                                    
grant  only  provided  additional funding  to  schools  that                                                                    
qualified  to help  increase their  speeds to  25 Mbps.  Co-                                                                    
Chair Wilson  wondered why the  fiscal note was  $7 million.                                                                    
She determined  that the  $7  million would be added  to the                                                                    
$1 million and cover a  number of years. Ms. Boario affirmed                                                                    
her statement.                                                                                                                  
                                                                                                                                
10:37:38 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilson stated that she  misspoke. She reported that                                                                    
the  BAG  grant  covered  172 schools  which  increased  the                                                                    
megabit threshold  for each  School from  10 megabits  to 25                                                                    
megabits  per  second and  continue  paying  the $7  million                                                                    
amount  for   years  to  come.   Ms.  Boario   affirmed  her                                                                    
statement.  She acknowledged  that it  was a  grant program,                                                                    
but costs  were expected  to decline over  the years  as the                                                                    
coverage  increased. Co-Chair  Wilson had  heard from  prior                                                                    
testimony  that  most  of  the   areas  had  more  than  one                                                                    
provider. She did not believe  the information was accurate.                                                                    
She wanted to  know what private company  would be receiving                                                                    
$7  million  of  state  funds. Co-Chair  Wilson  wanted  the                                                                    
committee  to  understand  that  the  state  was  paying  an                                                                    
additional $7  million each year  with passage of  the bill.                                                                    
She was interested in  information regarding the competition                                                                    
that existed among internet providers for the $7 million.                                                                       
                                                                                                                                
10:40:10 AM                                                                                                                   
                                                                                                                                
CHRISTINE  O'CONNER,  EXECUTIVE   DIRECTOR,  ALASKA  TELECOM                                                                    
ASSOCIATION,  answered  that  there  was a  minimum  of  two                                                                    
providers  in  every  area  according to  a  survey  of  the                                                                    
association's members.  There was a satellite  provider that                                                                    
covered the entire  state and was very active  in bidding on                                                                    
e-rate contracts.  In addition,  all locations  had existing                                                                    
landline  providers that  bid on  fixed broadband  services.                                                                    
She  stressed  that  the  e-rate  rules  required  that  all                                                                    
landline providers bid  on E-rate RFPs. In  many areas there                                                                    
were three  or four  providers. She  offered the  example of                                                                    
vigorous competition  among 4 providers in  Nome for bidding                                                                    
to provide E-rate  service, which drove down  the rates. She                                                                    
noted a 37 percent decrease  in broadband rates for schools.                                                                    
The  competition   created  new  partnerships   amongst  the                                                                    
providers  and  e-rate  rules   encouraged  schools  to  bid                                                                    
together  as  consortiums.  She reported  that  the  factors                                                                    
happened within  the last few  years and were  driving rates                                                                    
down.  However, gaps  in service  still existed  due to  the                                                                    
need for and more  infrastructure. Co-Chair Wilson asked for                                                                    
more information. She had not  seen a drop in internet costs                                                                    
for   schools.  She   wanted   to   better  understand   the                                                                    
competition.                                                                                                                    
                                                                                                                                
Representative  Carpenter  asked  how  the  FY  19  10  mbps                                                                    
program numbers  predicted the  FY 21  25 mbps  numbers. Ms.                                                                    
Teshner answered  that the note  used the average FY  19 BAG                                                                    
grant  in order  to  determine  a cost  if  all 172  schools                                                                    
applied for  the grant. She  mentioned that the  average was                                                                    
the best data the department  had to approximate the cost to                                                                    
raise  speeds  from   10  mbps  to 25  mbps.  Representative                                                                    
Carpenter referred  to the following language  in the fiscal                                                                    
note analysis:                                                                                                                  
                                                                                                                                
     This $1,487.5 will need to be  funded in all of the out                                                                    
     years, in  order to pay  for 0-10mbps internet coverage                                                                  
     in  tandem   with  current  fiscal  note   that  covers                                                                    
     10-25mbps. The  entire  program  will continue  as  one                                                                  
     application for up to 25mbps.                                                                                              
                                                                                                                                
Representative Carpenter  wondered whether the  actual total                                                                    
was  $8.6  million  versus  $7.1   million,  which  was  not                                                                    
reflected in  the fiscal  note. Ms.  Teshner replied  in the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Co-Chair Wilson  asked why FY  20 did  not show the  over $1                                                                    
million currently  awarded to  grants. Ms.  Teshner answered                                                                    
that when the  department was told to only  report the costs                                                                    
necessary for the  speed increase from 10mbps  to 25mbps and                                                                    
the  $1.4 million  figure was  included in  the analysis  to                                                                    
show that  amount was needed  to continue  the 0 mbps  to 10                                                                    
mbps  program as  well. Co-Chair  Wilson thought  the entire                                                                    
amount should be  reflected in the FY 20  cost. She reported                                                                    
that before  the change from 10  mbps to 25 mbps  the school                                                                    
districts were asked to show how  they were able to fund the                                                                    
25 mbps increase.  She asked why the grant  was increased if                                                                    
the  school districts  demonstrated they  were able  to fund                                                                    
the increase. Ms. Teshner answered  that the fiscal note was                                                                    
an  estimate. Co-Chair  Wilson  restated  her question.  She                                                                    
clarified her  question and  asked why  the grants  would be                                                                    
necessary.  Ms.  Teshner  answered   that  the  program  was                                                                    
voluntary and based  on a baseline number and  if costs went                                                                    
below  the  baseline  level the  school  district  would  no                                                                    
longer qualify because the overall  cost would decrease. She                                                                    
deferred  to Patience  Frederickson,  from  the Division  of                                                                    
Library,  Archives,  and Museums  who  ran  the program  for                                                                    
further clarification.                                                                                                          
                                                                                                                                
10:48:13 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilson was  not blaming  any  school district  for                                                                    
getting funds.  She pondered why  the grants amounted  to up                                                                    
to $8  million when  many districts  could pay  for internet                                                                    
service.                                                                                                                        
                                                                                                                                
PATIENCE   FREDERICKSON,   DIRECTOR,  ALASKA   DIVISION   OF                                                                    
LIBRARIES,  ARCHIVES, AND  MUSEUMS, DEPARTMENT  OF EDUCATION                                                                    
AND   EARLY   DEVELOPMENT,   responded   that   the   E-rate                                                                    
application asks the  school to certify that  they can repay                                                                    
the  remaining  portion  of   the  bill.  Therefore,  school                                                                    
districts only applied  for the E-rate if they  know the BAG                                                                    
grant was  available. The districts  could not apply  for 25                                                                    
mbps  in the  current year  because the  bill did  not exist                                                                    
during the  application period. Districts  would be  able to                                                                    
apply  for  25  mbps  during  the  next  application  period                                                                    
knowing  that the  BAG grant  was available  to pay  for the                                                                    
remainder   of  the   E-rate.   She   reiterated  that   the                                                                    
certification was  not on the  state application, it  was on                                                                    
the federal  application. Co-Chair Wilson surmised  that all                                                                    
the  bill  was essentially  doing  was  securing E-rate  BAG                                                                    
grant funding in the outyears.  Ms. Frederickson answered in                                                                    
the  affirmative. She  furthered that  the program  had been                                                                    
designed  to increase  levels of  internet speeds.  Co-Chair                                                                    
Wilson wondered why the legislature  would not just increase                                                                    
the Base Student Allocation (BSA).                                                                                              
                                                                                                                                
10:51:13 AM                                                                                                                   
                                                                                                                                
Ms. Frederickson replied that she  was not conversant on the                                                                    
BSA  program.  She  suspected  the  reason  was  because  it                                                                    
included the  federal E-rate funding. She  detailed that the                                                                    
genesis of the BAG program came  out of the OWL (Online With                                                                    
Libraries)  program,   which  helped  libraries   achieve  a                                                                    
certain speed of  internet to enable them  to participate in                                                                    
a video conference network. The  idea behind the OWL program                                                                    
was  to  combine  E-rate,  library,  and  grant  funding  to                                                                    
increase the internet  speeds. The BAG program  was based on                                                                    
OWL.                                                                                                                            
                                                                                                                                
Co-Chair   Wilson  remarked   that  the   OWL  funding   was                                                                    
appropriated in all school districts.  She asked whether she                                                                    
was correct. Ms. Frederickson answered  in the negative. The                                                                    
OWL program video conference network  was available in every                                                                    
public  library, but  the subsidy  went to  approximately 20                                                                    
public  libraries. Co-Chair  Wilson  requested  the list  of                                                                    
libraries involved in OWL.                                                                                                      
                                                                                                                                
Vice-Chair  Johnston remembered  that the  Nome bidding  war                                                                    
happened because it was cheaper  to provide the higher speed                                                                    
25  mbps  than  the  lower speed  internet.  She  asked  for                                                                    
confirmation.                                                                                                                   
                                                                                                                                
10:53:46 AM                                                                                                                   
                                                                                                                                
Ms.  O'Conner  answered that  she  was  unfamiliar with  the                                                                    
details  but  thought  Ms.  Fredericksons   recounting  made                                                                    
sense.  She  acknowledged  that  Nome  had  relatively  good                                                                    
connectivity  and   multiple  providers.   Relatively  large                                                                    
bandwidth was  purchased "in  bulk" and 10  mbps was  a very                                                                    
small  amount.  Vice-Chair  Johnston considered  the  fiscal                                                                    
note  and  improved  technology. She  thought  the  scenario                                                                    
could be  repeated in  the rest of  the state  with improved                                                                    
satellite  technology  and  as  competition  increased.  She                                                                    
deduced  that the  fiscal note  was currently  high, but  it                                                                    
could decrease  with improved technology in  the future. Ms.                                                                    
O'Conner  agreed with  her  conclusion.  She indicated  that                                                                    
multiple projects were  coming online in the  near future in                                                                    
Alaska.  Every   company  was  taking  advantage   of  newly                                                                    
stabilized federal  funding for increased  connectivity. She                                                                    
noted  that   the  lower  orbit  satellite   technology  was                                                                    
untested and was not imminent.                                                                                                  
                                                                                                                                
10:55:57 AM                                                                                                                   
                                                                                                                                
Ms.  Frederickson concurred  with Ms.  O'Conner's assessment                                                                    
and  noted she  had  experienced lower  costs  with the  BAG                                                                    
program. She pointed  out that in the  program's early years                                                                    
the average BAG  grant was $30 thousand and  fell to $17,000                                                                    
within 5 years. She determined  that as the cost of internet                                                                    
decreased  to get  to 10  mbps the  mathematical formula  to                                                                    
qualify remained  at the 2014  benchmark and  districts fell                                                                    
out of the  program due to decreased costs; in  FY 19 awards                                                                    
declined from 119 to 80.                                                                                                        
                                                                                                                                
Co-Chair Wilson  pondered whether the funds  belonged in the                                                                    
BSA as an ongoing cost.                                                                                                         
                                                                                                                                
Representative    Carpenter   noted    that   the    federal                                                                    
government's  standard was  100 mbps.  He deemed  that   100                                                                    
mbps was  currently cost prohibitive in  Alaska. He imagined                                                                    
that once  districts obtained 25  mbps there would  be later                                                                    
discussions  about  increasing  the  speed to  50  mbps  and                                                                    
higher.  He asked  if currently  low earth  orbit satellites                                                                    
were over Alaska. Ms. O'Conner answered in the negative.                                                                        
                                                                                                                                
Representative   Carpenter   recounted  that   in   previous                                                                    
testimony a  school district testifier  had been  unaware of                                                                    
what the cost had been to  increase from 10 mbps to 25 mbps.                                                                    
He inquired  how it  was known that  the program  would cost                                                                    
$7.1  million. Ms.  Frederickson  answered  that the  fiscal                                                                    
note  was estimated  from current  costs. She  observed that                                                                    
the problem was  the competitive bid process  for the e-rate                                                                    
application.                                                                                                                    
                                                                                                                                
10:59:10 AM                                                                                                                   
                                                                                                                                
Representative Carpenter  understood the  process of  how it                                                                    
was purchased but "we  don't put a bid in to  find out if we                                                                    
can afford  it." Ms. Frederickson  replied that  the process                                                                    
was  confidential,  and  she  did not  have  access  to  the                                                                    
information.                                                                                                                    
                                                                                                                                
Co-Chair   Wilson   asked   whether  the   information   was                                                                    
confidential  to the  school districts.  She commented  that                                                                    
the school  districts were queried  about the costs  and one                                                                    
response  was received.  She hoped  the  districts knew  how                                                                    
much  their  portion  of  the E-rate  costs  would  be  when                                                                    
applying for the  BAG grant program since it  was a separate                                                                    
process from  the federal  E-rate program.  Ms. Frederickson                                                                    
responded that  with passage  of SB  74 she  would establish                                                                    
new  benchmarks  based on  what  the  school districts  were                                                                    
paying  in  January  2020.   Subsequently,  the  school  BAG                                                                    
program schools   would never pay  more than what  they were                                                                    
paying  in January  2020.   The costs  would  be frozen  the                                                                    
districts would  rely on the  BAG program for  the remainder                                                                    
of costs.  She acknowledged that  she was not  answering the                                                                    
question correctly.                                                                                                             
                                                                                                                                
11:00:46 AM                                                                                                                   
                                                                                                                                
Representative   Carpenter   interposed    an   analogy   to                                                                    
illustrate  the question.  He exemplified  a business   that                                                                    
wanted to  increase its bandwidth  from 10 mbps to  25 mbps.                                                                    
The business would  go to a provider for a  quote to know if                                                                    
it  had the  money available  to  pay for  the increase.  He                                                                    
declared that  the state had  the opposite process  and paid                                                                    
over  $8  million  without  knowing  the  actual  costs.  He                                                                    
characterized the process as  "backwards." He contended that                                                                    
a  district should  know what  the  increased service  would                                                                    
cost.  He  wanted to  know  what  the  actual cost  was  but                                                                    
discerned  that the  costs  were  unknown. Ms.  Frederickson                                                                    
agreed that  the costs were  unknown. She restated  that the                                                                    
cost was  based on  the current  program "and  some cocktail                                                                    
napkin figures" and  noted that "it was the  best they could                                                                    
come up with."                                                                                                                  
                                                                                                                                
Ms.  Boario  understood  the  statements  and  questions  by                                                                    
Representative Carpenter.  She explained that  the confusion                                                                    
sprang  from receiving  federal funding  first. She  thought                                                                    
that  knowing how  the E-rate  contracts went  to bid  might                                                                    
provide more clarity.                                                                                                           
                                                                                                                                
Co-Chair Wilson  stated that her  issue was why the  BSA did                                                                    
not  cover  the  costs.  Additionally,  the  federal  e-rate                                                                    
program required  to know whether the  districts could cover                                                                    
the  remaining costs.  It was  her understanding  the school                                                                    
districts  had the  money for  the  increased bandwidth  and                                                                    
they  relied  on the  BAG  program  to cover  the  remaining                                                                    
costs.  Ms.  Boario  clarified  that  it  was  rural  school                                                                    
districts that could  not cover the costs on  their own. Co-                                                                    
Chair  Wilson cited  prior  districts'  testimony that  they                                                                    
could cover  the costs.  In addition,  she was  unaware that                                                                    
the costs were ongoing each year.                                                                                               
                                                                                                                                
11:05:03 AM                                                                                                                   
                                                                                                                                
Representative  Josephson asked  for  clarity regarding  the                                                                    
proprietary  information.  Ms.  Frederickson  answered  that                                                                    
when the  school districts utilize the  E-rate computer they                                                                    
enter  each  school  and the  amount  of  broadband  service                                                                    
desired  for each  school.  The  internet service  providers                                                                    
submitted  the   bids  for  each   school,  which   was  the                                                                    
proprietary information  the state did not  have. They could                                                                    
not tease out the information  that answered what the actual                                                                    
costs were. She added that in  the first year of the program                                                                    
they had received  $5 million from the  legislature and only                                                                    
$3.5 million had been used.                                                                                                     
                                                                                                                                
Co-Chair Wilson  requested that the sponsor  provide further                                                                    
information regarding the committees questions.                                                                                 
                                                                                                                                
Representative Josephson asked  whether Regional Educational                                                                    
Attendance  Area  (REAA)  schools  absorbed  internet  costs                                                                    
through the BSA  or if they dropped out of  the BAG program.                                                                    
Ms.  Frederickson  replied  in the  affirmative,  but  asked                                                                    
members to  bear in  mind that  if a  district chose  not to                                                                    
apply it was because the competition had driven cost down.                                                                      
                                                                                                                                
Co-Chair Wilson  recognized the many questions  and concerns                                                                    
about the  bill. She  asked members  to keep  an eye  on the                                                                    
schedule for future hearings.                                                                                                   
                                                                                                                                
CSSB 74(FIN) was HEARD and HELD in committee for further                                                                        
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 87 CS WORKDRAFT FIN v.U.pdf HFIN 5/11/2019 9:00:00 AM
HB 87
HB 87 SETS Loan Funds Interior.pdf HFIN 5/11/2019 9:00:00 AM
HB 87
SB 74 Additional Document - FY15-FY19 School BAG By District - DEED 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Additional Document - FY 2019 School BAG Awards by District and School - DEED 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Additonal Document - AK Broadband and Satellite Networks Map 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Additonal Document - FY2019 Schools Under 25 - DEED_FCC 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 AK Networks through 2010.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 AK Networks through 2017.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Oppose Document 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Sectional Analysis 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Sponsor Statement 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Summary of Changes 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Supporting Document (2) 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
SB 74 Supporting Document 5.10.19.pdf HFIN 5/11/2019 9:00:00 AM
SB 74
HB139 Sponsor Statement 4.17.19.pdf HFIN 5/11/2019 9:00:00 AM
HB 139
HB139 Supporting Information- APFC 4.17.19.pdf HFIN 5/11/2019 9:00:00 AM
HB 139