Legislature(2021 - 2022)SENATE FINANCE 532

05/14/2022 10:00 AM Senate FINANCE

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Audio Topic
10:02:20 AM Start
10:03:31 AM HB363
04:42:07 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 114 EDUCATION & SUPPLEMENTAL LOAN PROGRAMS TELECONFERENCED
Scheduled but Not Heard
+= HB 127 MUNI BOND BANK: UA, LOAN AND BOND LIMITS TELECONFERENCED
Scheduled but Not Heard
+= HB 172 MENTAL HEALTH FACILITIES & MEDS TELECONFERENCED
Scheduled but Not Heard
+= HB 265 HEALTH CARE SERVICES BY TELEHEALTH TELECONFERENCED
Scheduled but Not Heard
+ HB 363 BROADBAND: OFFICE, GRANTS, PARITY TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
Bills Previously Heard/Scheduled
+= HB 19 LIMITED TEACHER CERTIFICATES; LANGUAGES TELECONFERENCED
Scheduled but Not Heard
                 SENATE FINANCE COMMITTEE                                                                                       
                       May 14, 2022                                                                                             
                        10:02 a.m.                                                                                              
                                                                                                                                
10:02:20 AM                                                                                                                   
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Bishop called the  Senate Finance Committee meeting                                                                    
to order at 10:02 a.m.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lyman Hoffman                                                                                                           
Senator Natasha von Imhof                                                                                                       
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Donny Olson                                                                                                             
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Bryce Edgmon,  Sponsor; Amory  Lelake, Staff                                                                    
to   Representative  Edgmon;   Nils  Andreassen,   Executive                                                                    
Director, Alaska Municipal League.                                                                                              
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Christine  O'Conner,  Executive   Director,  Alaska  Telecom                                                                    
Association;   Lesil   McGuire,  OneWeb,   Anchorage;   Mark                                                                    
Springer,  Self,  Bethel;  Paul  Johnson,  Self,  Anchorage;                                                                    
Brittany  Woods,  Alaska  Public  Interest  Research  Group,                                                                    
Fairbanks;   Harold   Johnson,  Self,   Anchorage;   Michael                                                                    
Williams, Self, Akiak; Sean Williams, Self, Anchorage.                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 19(EDC)                                                                                                                    
          LIMITED TEACHER CERTIFICATES; LANGUAGES                                                                               
                                                                                                                                
          CSHB 19(EDC) was HEARD and HELD in committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
HB 114    EDUCATION & SUPPLEMENTAL LOAN PROGRAMS                                                                                
                                                                                                                                
          HB 114 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 127    MUNI BOND BANK: UA, LOAN AND BOND LIMITS                                                                              
                                                                                                                                
          HB 127 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CSHB 172(FIN) am                                                                                                                
          MENTAL HEALTH FACILITIES & MEDS                                                                                       
                                                                                                                                
          CSHB 172(FIN) am was HEARD and HELD in committee                                                                      
          for further consideration.                                                                                            
                                                                                                                                
CSHB 265(FIN)                                                                                                                   
          HEALTH CARE SERVICES BY TELEHEALTH                                                                                    
                                                                                                                                
          CSHB 265(FIN) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
CSHB 363(FIN)                                                                                                                   
          BROADBAND: OFFICE, GRANTS, PARITY                                                                                     
                                                                                                                                
          CSHB 363(FIN) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 363(FIN)                                                                                                
                                                                                                                                
     "An Act establishing the  office of broadband; creating                                                                    
     the broadband parity  adjustment fund; establishing the                                                                    
     Statewide Broadband  Advisory Board; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
10:03:31 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop  relayed that it  was the first  hearing for                                                                    
CSHB 363 (FIN).  It was the committee's intention  to hear a                                                                    
bill introduction  and sectional analysis, take  invited and                                                                    
public testimony, and set the bill aside.                                                                                       
                                                                                                                                
10:04:09 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  BRYCE  EDGMON,  SPONSOR, gave  a  high-level                                                                    
overview of HB 363.  He commented that putting high-quality,                                                                    
affordable,  reliable broadband  into every  possible corner                                                                    
of  the   state  was   a  transformative   opportunity.  The                                                                    
legislation  would  provide the  framework  to  the put  the                                                                    
Office of  Broadband into  place as  a mechanism  to receive                                                                    
federal funds that  would come to the state.  The bill would                                                                    
set up  a process  that would involve  a lot  of stakeholder                                                                    
engagement,   partnerships,    and   working   relationships                                                                    
necessary to bring about the changes.                                                                                           
                                                                                                                                
Representative Edgmon  detailed that the original  bill that                                                                    
he introduced  was taken from the  governors  Broadband Task                                                                    
Force, which  had been commissioned  in May of  the previous                                                                    
year and  had finished its  work in November 2021.  The task                                                                    
force had come  forward with a set  of recommendations, from                                                                    
which the  sponsor drew from  exclusively when the  bill was                                                                    
drafted  in  February  2022.  He  stated  he  had  taken  no                                                                    
creative license and  the bill had been  slightly amended in                                                                    
two committees in  the House. He thought the  task force had                                                                    
focused on  mirroring federal  law with  broadband language,                                                                    
which was  very prescriptive.  He noted  that the  bill that                                                                    
emerged  from the  Senate Labor  and Commerce  Committee had                                                                    
tried to  achieve similar  goals to  the bill  as originally                                                                    
introduced but went in a  different direction in a number of                                                                    
ways that  his staff  would address  in their  testimony. He                                                                    
discussed  the  process  of  changes  to  the  bill  in  the                                                                    
previous committee.                                                                                                             
                                                                                                                                
10:07:45 AM                                                                                                                   
                                                                                                                                
AMORY LELAKE,  STAFF TO  REPRESENTATIVE EDGMON,  discussed a                                                                    
Sectional  Analysis  (copy  on  file).  She  explained  that                                                                    
Section  1 of  the  bill created  a  new uncodified  section                                                                    
providing  legislative findings,  purpose,  and intent.  The                                                                    
section had  detailed information  on the  states  broadband                                                                    
program.  The section  also established  that the  grant and                                                                    
loan programs referenced  in Section 2 were  meant to extend                                                                    
broadband  infrastructure  into   unserved  and  underserved                                                                    
areas,  and  that such  programs  would  provide support  to                                                                    
private entities  only under the  assurance that  assets and                                                                    
infrastructure  funded   by  grants   and  loans   would  be                                                                    
developed  and maintained  for public  use for  at least  15                                                                    
years.                                                                                                                          
                                                                                                                                
Ms. Lelake  continued that in  the codified sections  of the                                                                    
bill,  Section  2 added  new  sections.  She cited  that  AS                                                                    
44.33.910  established  the  Office   of  Broadband  in  the                                                                    
Department of Commerce,  Community and Economic Development.                                                                    
The  office   would  be  an  essential   planning  body  for                                                                    
broadband  in  the  state,  and  the  section  detailed  the                                                                    
offices     purpose,   powers,    and   duties,    including                                                                    
implementation of a statewide plan.                                                                                             
                                                                                                                                
Ms. Lelake detailed  that the bill proposed  that the Office                                                                    
of Broadband  may also assist  applicants for the  grant and                                                                    
loan program established  by the bill, as  they sought other                                                                    
funding opportunities. The office  may also accept donations                                                                    
and  seek  out  funding   opportunities  for  which  it  was                                                                    
eligible.  She  listed  that   AS  44.33.915  established  a                                                                    
Broadband Grant  and Loan program.  The Office  of Broadband                                                                    
would  work  with  the statewide  Broadband  Advisory  Board                                                                    
established by the bill, to  review applications and provide                                                                    
support  to  applicants  for planning  and  construction  of                                                                    
broadband infrastructure in unserved and underserved areas.                                                                     
                                                                                                                                
Ms. Lelake  continued that AS 44.33.920  created a Broadband                                                                    
Advisory Board,  which would work with  community engagement                                                                    
task forces  also established by  the legislation  and would                                                                    
examine  challenges and  opportunities relating  to regional                                                                    
connectivity. The  board would be composed  of eight members                                                                    
appointed  by the  governor  for  three-year terms.  Members                                                                    
would   have  experience   in  telecommunications,   various                                                                    
engineering disciplines  and broadband technologies.  One of                                                                    
the   members   would   serve  as   the   technology-neutral                                                                    
consultant, which would  be entitled to a  monthly salary at                                                                    
range  27. All  other advisory  board members  would receive                                                                    
compensation  of   $307  per   day  while   attending  board                                                                    
meetings,  as  well  as  authorized   travel  and  per  diem                                                                    
expenses.                                                                                                                       
                                                                                                                                
Ms. Lelake  cited that  Section 44.33.930  created Community                                                                    
Engagement Task  Forces. The number  of task forces  was not                                                                    
established in the  bill, and the director of  the Office of                                                                    
Broadband  would appoint  state  residents to  serve on  the                                                                    
task forces. The groups would  include members who represent                                                                    
tribes,   health   care   providers,   search   and   rescue                                                                    
organizations, social service  providers, the transportation                                                                    
industry, and  regional development organizations.  The task                                                                    
forces would also include state  and local public government                                                                    
officials  and tribal  or  state  government employees  with                                                                    
access  to judicial  records. The  task force  members would                                                                    
receive compensation  of $307 per  day while  attending task                                                                    
force meetings,  as well as  authorized travel and  per diem                                                                    
expenses.  Section  44.33.930  was  definitions,  Section  3                                                                    
sunset the bill on June  30, 2030, and Section 4 established                                                                    
an immediate effective date.                                                                                                    
                                                                                                                                
10:11:21 AM                                                                                                                   
                                                                                                                                
Senator von  Imhof asked if  there was a  difference between                                                                    
the bill  that left the House  and the bill that  passed out                                                                    
of the  Senate Labor and  Commerce Committee with  regard to                                                                    
parity.  She thought  parity was  an issue  that people  had                                                                    
been  focusing on,  and she  thought the  original bill  had                                                                    
addressed the issue.                                                                                                            
                                                                                                                                
Representative  Edgmon stated  that  the  original bill  had                                                                    
parity adjustment,  which had been  a recommendation  of the                                                                    
governors    Broadband  Task   Force,  and   the  CS   being                                                                    
considered  by the  committee  did not.  He  noted that  the                                                                    
Infrastructure  Investment  and  Jobs  Act  (IIJA)  had  $65                                                                    
billion set  aside for broadband,  with the  funds separated                                                                    
into different buckets. He thought  one bucket addressed the                                                                    
affordability  of  reliable  and  high-speed  broadband.  He                                                                    
thought members  of the Broadband  Task Force  members would                                                                    
testify  on  the subject.  He  thought  the task  force  was                                                                    
cognizant about setting  up a fund that would not  only be a                                                                    
repository and pass-through location  for federal funds, but                                                                    
also   considered  funds   that  might   be  available   for                                                                    
equalizing the cost of broadband.                                                                                               
                                                                                                                                
Representative  Edgmon discussed  the expense  of broadband,                                                                    
which  increased  the  further  the location  was  from  the                                                                    
internet  source.  He  thought the  parity  or  equalization                                                                    
would  come  into play  after  other  work  was done  to  do                                                                    
mapping,  planning, relationship  building, and  determining                                                                    
the unserved and underserved parts of the state.                                                                                
                                                                                                                                
Representative  Edgmon  continued  to  address  Senator  von                                                                    
Imhof's question. He reminded that  the program was also new                                                                    
in  the  federal  government.  He  clarified  that  the  new                                                                    
version of  the bill did  not address the  parity adjustment                                                                    
fund.                                                                                                                           
                                                                                                                                
10:13:50 AM                                                                                                                   
                                                                                                                                
Senator von Imhof thought Representative  Edgmon gave a good                                                                    
example.  She had  been to  a  couple of  meetings with  the                                                                    
Broadband  Task   Force  and  staff  from   DCCED,  who  had                                                                    
discussed work  that had  been done  in the  previous years.                                                                    
She thought that  the bill that left the  House had followed                                                                    
the IJJA  parameters very closely, including  parity and the                                                                    
tremendous  work  the Broadband  Task  Force  had done.  She                                                                    
wanted to ensure it was on  the record that the version that                                                                    
left the  House was  the result of  significant work  by the                                                                    
task force, and  followed the most recent  set of guidelines                                                                    
from IIJA.                                                                                                                      
                                                                                                                                
Representative  Edgmon  affirmed  that Senator  von  Imhof's                                                                    
statements were accurate. He reminded  that the deadline for                                                                    
personal legislation was  February 18, and there  had been a                                                                    
short  amount of  time to  put the  bill together.  He noted                                                                    
that the task force came  before the House Finance Committee                                                                    
on February 1,  after which it had seemed  integral that the                                                                    
legislature   should   be   involved  in   putting   forward                                                                    
parameters  for the  task  force groups  and  any fund  that                                                                    
might be created. He commented  that there was no section of                                                                    
law  that addressed  the  subject, and  the  bill was  drawn                                                                    
exclusively from the task force.                                                                                                
                                                                                                                                
10:16:11 AM                                                                                                                   
                                                                                                                                
Senator    Hoffman     mentioned    that     the    National                                                                    
Telecommunications  and  Information  Administration  (NTIA)                                                                    
was reviewing $6  billion worth of requests in  an area that                                                                    
only had $1 billion. He  asked how the sponsor would address                                                                    
unserved and  underserved areas,  and thought the  topic was                                                                    
being  discussed at  the  national level  in  order to  have                                                                    
criteria   for  awarding   the  limited   funds  that   were                                                                    
available. He  wondered how the  sponsor saw the  task force                                                                    
addressing the issue and interfacing  with the funds and all                                                                    
of  the  proposals  that  could  overlap.  He  wondered  how                                                                    
underserved and unserved areas were defined in the state.                                                                       
                                                                                                                                
Representative  Edgmon thought  Senator Hoffman  had touched                                                                    
on an  important point,  with reference  to how  the mapping                                                                    
would occur  to delineate undeserved and  underserved areas.                                                                    
He detailed that there were  technical definitions that were                                                                    
written into the  original bill as well as  the federal act.                                                                    
He  mentioned  that  one  the  first  steps  the  Office  of                                                                    
Broadband would  take would be  to work in concert  with the                                                                    
FCC and other  entities (such as telecom  providers that had                                                                    
done some mapping) to put  together a comprehensive detailed                                                                    
map of the state to  pinpoint the different internet service                                                                    
levels.  He  qualified  that the  thrust  of  the  broadband                                                                    
program in  federal law was  to address areas in  a priority                                                                    
ranking,  starting  with  those  at  the  lowest  levels  of                                                                    
service or  no internet  at all. He  mentioned areas  of the                                                                    
state that experienced spotty internet connection.                                                                              
                                                                                                                                
10:18:50 AM                                                                                                                   
                                                                                                                                
Senator Hoffman thought  it would be a daunting  task to get                                                                    
internet  in  the  first  place,   and  thought  the  larger                                                                    
question  was how  individual households  would  be able  to                                                                    
afford  the internet  on a  long-term  basis. He  recognized                                                                    
that many areas  in the state were struggling  with the high                                                                    
cost of  energy and food.  He questioned how  certain people                                                                    
would be  able to  afford broadband  internet if  access was                                                                    
accomplished.                                                                                                                   
                                                                                                                                
Representative  Edgmon  thought   Senator  Hoffman  made  an                                                                    
excellent point,  which dovetailed with Senator  von Imhof's                                                                    
point about  the parity adjustment fund.  He reiterated that                                                                    
the bill was drawn up  using the task force recommendations,                                                                    
which had been as technology  neutral as possible. The House                                                                    
Finance  Committee  had  added an  additional  reference  to                                                                    
technology  neutral,  because  there were  some  areas  that                                                                    
would not be  able to receive fiber  optic cable immediately                                                                    
or possibly  ever. He described  other technologies  such as                                                                    
satellites  and  microwave  transmission, which  he  thought                                                                    
should be deployed  as well. He affirmed that  cost would be                                                                    
an issue. He  thought that it was apparent  from reading the                                                                    
federal language  that United States Senator  Lisa Murkowski                                                                    
and others had written a lot  of the language with Alaska in                                                                    
mind. He  asserted that  funding should  not be  the primary                                                                    
impediment and  mentioned other issues that  could slow down                                                                    
the delivery of good internet at affordable rates.                                                                              
                                                                                                                                
Senator von Imhof  referenced a section in  the Senate Labor                                                                    
and  Commerce Committee  version of  the bill  that iterated                                                                    
 such programs  would provide support to  private entities.                                                                     
She thought  it odd  that the  language was  so prescriptive                                                                    
and  wondered about  non-profits  and  public entities.  She                                                                    
asked if  the House version  of the bill had  something that                                                                    
specifically stated that grant  and loan programs would only                                                                    
be given to private entities, or  if the version of the bill                                                                    
was more open-ended.                                                                                                            
                                                                                                                                
Representative Edgmon acknowledged that  he was not involved                                                                    
in the drafting of the  Labor and Commerce Committee version                                                                    
of the bill.  He reiterated that the  House version followed                                                                    
the Broadband Task Forces  recommendations,  and he tried to                                                                    
make  it the  least  prescriptive as  possible. He  reminded                                                                    
that there  would be three  different federal  agencies that                                                                    
would  be involved  and working  with compliance  issues. He                                                                    
thought  the   original  version   of  the  bill   was  less                                                                    
prescriptive and more open-ended.                                                                                               
                                                                                                                                
10:22:40 AM                                                                                                                   
                                                                                                                                
Co-Chair  Bishop commented  that  whatever  happened to  the                                                                    
bill, he could  almost guarantee the bill would  be added to                                                                    
the following  year since the  federal government  was still                                                                    
writing guidance and things would evolve.                                                                                       
                                                                                                                                
Senator von  Imhof asked if it  was necessary to have  it in                                                                    
statute to require communities to  create local task forces.                                                                    
She   asked    if   communities   could    organically   and                                                                    
independently  establish  task  forces as  they  wished,  in                                                                    
order to  apply for  grants and attract  the task  force and                                                                    
technical advisory group to visit  the area and make a plan.                                                                    
She wondered  if people were  incentivized to do  so because                                                                    
of the opportunity.                                                                                                             
                                                                                                                                
Representative Edgmon  thought Co-Chair Bishop had  "hit the                                                                    
nail on the  head," and that the bill would  be an iterative                                                                    
process.  He  commented  on  the  new  section  of  law  and                                                                    
unanticipated  developments  that  would  come  forward.  He                                                                    
explained that the  bill had left open-ended  enough so that                                                                    
the Office  of Broadband  or technical  group could  come up                                                                    
with   a  relationship   with  local   regional  areas.   He                                                                    
emphasized  the  need  for engagement  with  local  entities                                                                    
during   the   mapping    process.   He   mentioned   anchor                                                                    
institutions  like health  clinics, schools,  hospitals, and                                                                    
others. He  thought the mapping  would need to  involve many                                                                    
parties and be similar to  acquiring census data. He thought                                                                    
a  regional area  would be  well-served to  be involved.  He                                                                    
noted that the  original bill did not  preclude what Senator                                                                    
von Imhof mentioned from happening.                                                                                             
                                                                                                                                
Co-Chair  Bishop emphasized  that redundancy  was important,                                                                    
whether via a satellite or landline.                                                                                            
                                                                                                                                
10:26:43 AM                                                                                                                   
                                                                                                                                
NILS  ANDREASSEN,   EXECUTIVE  DIRECTOR,   ALASKA  MUNICIPAL                                                                    
LEAGUE, shared that  he had been a member  of the governor's                                                                    
Broadband Task  Force. He explained  that he would  speak to                                                                    
two  aspects of  the task  force work  that he  thought were                                                                    
very important. He mentioned  the advisory board recommended                                                                    
by the  task force, which  was there  to set the  vision and                                                                    
goals for the Office of  Broadband. He understood that at an                                                                    
agency level,  staff would  be fulfilling  obligations under                                                                    
statute under  federal guidelines,  while an  advisory board                                                                    
would  be  in  place   to  consider  the  economic,  social,                                                                    
community,     cultural,     environmental,    and     other                                                                    
considerations across the state  that would inform statewide                                                                    
planning efforts.                                                                                                               
                                                                                                                                
Mr. Andreassen  thought the advisory board  activities would                                                                    
be  very  different  than  a grant  review  committee  or  a                                                                    
technical  committee, for  which the  department could  work                                                                    
closely   with   technical   consultants  and   others.   He                                                                    
summarized the importance  of having a separate  body to set                                                                    
visions and goals  in a way that was  meaningful, that could                                                                    
drive the  work of the  Office of Broadband. He  thought the                                                                    
idea  was  accomplished  within the  task  forces   efforts,                                                                    
which was reflected  in the version of the  bill that passed                                                                    
the House.                                                                                                                      
                                                                                                                                
Mr. Andreassen added  that the version of the  bill that had                                                                    
passed the  House was broad  enough to incorporate a  lot of                                                                    
what might  be coming  from the federal  government, setting                                                                    
the  stage for  opportunity without  being prescriptive.  He                                                                    
thought the Parity Adjustment Fund  was an important element                                                                    
that  came from  the task  force. He  emphasized that  every                                                                    
Broadband Task  Force report had  included something  like a                                                                    
subsidy  to  help  with  broadband  and  communications.  He                                                                    
listed  laudable aspects  of the  version of  the bill  that                                                                    
passed the House: it did  not commit to resourcing the fund,                                                                    
it  did not  produce  a  methodology, and  it  did not  have                                                                    
numbers in  it. He  emphasized that it  was not  possible to                                                                    
know what the numbers would be.                                                                                                 
                                                                                                                                
Mr. Andreassen continued to discuss  the original version of                                                                    
the bill, which  he thought set up the state  to be prepared                                                                    
for what  might come  from the  federal government  to lower                                                                    
broadband  costs. He  noted that  the parity  adjustment was                                                                    
not long-term  and reasoned  that the  work would  take time                                                                    
before underserved and unserved  communities were served. He                                                                    
discussed  the  use  of  a parity  fund  and  mentioned  the                                                                    
possibility of  a sunset  date or  timeline. He  thought the                                                                    
parity adjustment would not be  long term. He emphasized the                                                                    
need for  having everything  in place at  a state  level for                                                                    
planning,  deployment,  and  support   in  relation  to  the                                                                    
federal government  and the states  priorities  to implement                                                                    
broadband effectively.                                                                                                          
                                                                                                                                
10:31:12 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop asked Mr. Andreassen  to provide any written                                                                    
testimony to his office to pass on to members.                                                                                  
                                                                                                                                
Senator  Wielechowski   was  curious   to  hear   about  Mr.                                                                    
Andreassen's  specific concerns  with the  Senate Labor  and                                                                    
Commerce Committees version of the bill.                                                                                        
                                                                                                                                
Mr. Andreassen  offered to  follow up  in writing.  He noted                                                                    
that the two  items he mentioned were very  different or not                                                                    
present in  the CS,  which were  a different  composition of                                                                    
the statewide Broadband  Advisory Board and the  lack of the                                                                    
Parity Adjustment Fund.                                                                                                         
                                                                                                                                
10:32:19 AM                                                                                                                   
                                                                                                                                
CHRISTINE  O'CONNER,  EXECUTIVE   DIRECTOR,  ALASKA  TELECOM                                                                    
ASSOCIATION (via  teleconference), spoke  in support  of the                                                                    
House  version of  the bill.  She  noted that  the bill  was                                                                    
created  in alignment  with the  Broadband  Task Force,  and                                                                    
also  aligned  with IIJA.  She  detailed  that recently  the                                                                    
notice of  funding opportunity (including the  rules for the                                                                    
large  amount  of  broadband   funding)  was  released.  She                                                                    
relayed that an initial look  over the rules showed that the                                                                    
House version of bill was  aligned. She underscored that the                                                                    
House  version  of  the  bill created  a  strong  Office  of                                                                    
Broadband that  would have the  assistance and support  of a                                                                    
multi-stakeholder board.  She stressed  that IIJA  came with                                                                    
requirements  for  extensive   stakeholder  engagement.  She                                                                    
emphasized the importance of  the multi-stakeholder board in                                                                    
implementing the priorities of the task force.                                                                                  
                                                                                                                                
Ms. O'Connor  asserted that  the House  version of  the bill                                                                    
had strong priorities,  such as to serve  all unserved areas                                                                    
without 25-megabit service. She  mentioned the importance of                                                                    
provision  in  the House  version  of  the bill  that  grant                                                                    
funding would  be open to  all interested  parties including                                                                    
non-profits, tribes,  other native organizations,  or anyone                                                                    
interested  to deploy  and  provide  broadband service.  She                                                                    
explained that  the Alaska Telecomm  Association represented                                                                    
15  telecommunication  companies   and  broadband  providers                                                                    
which unanimously  supported the bill. She  thought the bill                                                                    
was a once in a lifetime opportunity.                                                                                           
                                                                                                                                
Senator Wielechowski asked if  Ms. O'Connor would oppose the                                                                    
Senate version of the bill.                                                                                                     
                                                                                                                                
Ms. O'Connor  shared that ATA had  significant concerns with                                                                    
the  Senate version  of the  bill. Specifically,  she listed                                                                    
that the  new proposed structure  of the board as  being not                                                                    
suited  to  the   consultation  obligations.  She  mentioned                                                                    
references  to dated  federal planning  and policy  that was                                                                    
not tied directly to the new federal law with IIJA.                                                                             
                                                                                                                                
Co-Chair Bishop  thought he heard Ms.  O'Connor comment that                                                                    
the House  version mirrored the most  recent guidance issued                                                                    
from  the federal  office  of  NTIA, as  recently  as a  day                                                                    
previously.                                                                                                                     
                                                                                                                                
Ms. OConnor  relayed that the  notice of funding opportunity                                                                    
from NTIA,  the administrator for  the vast majority  of the                                                                    
broadband funds, had released  their rules the previous day.                                                                    
The rules equaled  about 98 pages in length.  In her initial                                                                    
read, the rules aligned very  well with the House version of                                                                    
the bill.                                                                                                                       
                                                                                                                                
10:36:59 AM                                                                                                                   
                                                                                                                                
Senator   Wielechowski   was   trying  to   understand   the                                                                    
difference  with   the  Parity  Adjustment  Board   and  its                                                                    
importance versus  what was  put into  the Senate  Labor and                                                                    
Commerce Committees version of the bill.                                                                                        
                                                                                                                                
Ms. O'Connor explained that the  House version of the bills                                                                     
statewide  Broadband   Advisory  Board  was  based   on  the                                                                    
Broadband  Task Forces   recommendation and  was a  group of                                                                    
stakeholders   representing   user    groups.   She   listed                                                                    
education,  healthcare, and  commerce  as  a description  of                                                                    
user  groups.  The  Senate   version  listed  engineers  and                                                                    
technical experts  rather than  stakeholders she  thought of                                                                    
as  uber users  of  broadband technology. She continued that                                                                    
the House  version of the  bill had the advisory  board with                                                                    
user  groups,  but  also adopted  a  technical  subgroup  to                                                                    
advise  the  Broadband  Advisory   Board  on  the  important                                                                    
technical issues  but would not  be tasked with  doing broad                                                                    
engagement.                                                                                                                     
                                                                                                                                
Senator Wielechowski  clarified that  his question  was with                                                                    
regard to  the Parity Adjustment Board.  He interpreted that                                                                    
there was  a replacement of the  Broadband Parity Adjustment                                                                    
Fund with the Broadband Grant and Loan Program.                                                                                 
                                                                                                                                
Ms. O'Connor affirmed  that in the House  version, there was                                                                    
a Broadband  Parity Adjustment Fund,  which allowed  for the                                                                    
establishment of  a fund to  support the offset  to consumer                                                                    
costs if  there were  funds identified.  There was  no board                                                                    
directly  tasked with  the Broadband  Parity Adjustment.  In                                                                    
the Senate Labor and Commerce  Committee version of the bill                                                                    
there was no Broadband Parity Adjustment.                                                                                       
                                                                                                                                
Senator Wielechowski wanted  greater understanding regarding                                                                    
parity  adjustment.   He  wondered  who   parity  adjustment                                                                    
helped. He noted that he  represented low-income Alaskans in                                                                    
East Anchorage,  and he  wanted to  know which  bill version                                                                    
would help his constituents to get low-cost internet.                                                                           
                                                                                                                                
Ms. O'Connor emphasized  that the House version  of the bill                                                                    
would  allow for  what Senator  Wielechowski described.  She                                                                    
continued that the broadband  parity adjustment was modelled                                                                    
after  a federal  program called  the  Lifeline Program,  as                                                                    
well  as  after a  program  in  IIJA called  the  Affordable                                                                    
Connectivity  Program. The  program simply  meant that  if a                                                                    
consumer  had income  at or  lower than  200 percent  of the                                                                    
poverty  level, they  would qualify  for a  credit on  their                                                                    
broadband  bill.   She  cited  that  under   the  Affordable                                                                    
Connectivity Program there was a $75 credit.                                                                                    
                                                                                                                                
Senator  von Imhof  thought one  of the  differences was  on                                                                    
page 4, line 15, "the Broadband  Grant and Loan Program is a                                                                    
competitive  grant  and loan  program  to  award funding  to                                                                    
eligible applicants to award  funding to eligible applicants                                                                    
to promote  access to broadband.   She thought  the language                                                                    
indicated that Senator  Wielechowski's constituents would be                                                                    
competing  against other  constituents, and  perhaps whoever                                                                    
had  the  best  application  would receive  the  funds.  She                                                                    
thought a  competitive grant program  came down  to whomever                                                                    
could write the best grant.                                                                                                     
                                                                                                                                
Ms.  O'Connor stated  that  the way  the  House version  was                                                                    
structured allowed for the parity  adjustment, which was not                                                                    
competitive but based on  low-income qualification. The bill                                                                    
also allowed for a grant  program for deployment activities,                                                                    
which  would reach  unserved locations.  She noted  that the                                                                    
grant program  was required for  federal funding.  The House                                                                    
version  of the  bill  had both,  while  the Senate  version                                                                    
dropped the broadband parity adjustment opportunity.                                                                            
                                                                                                                                
10:41:56 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop OPENED public testimony.                                                                                        
                                                                                                                                
10:42:10 AM                                                                                                                   
                                                                                                                                
LESIL  MCGUIRE,  ONEWEB,   ANCHORAGE  (via  teleconference),                                                                    
spoke  in support  of the  bill. She  noted that  she was  a                                                                    
lifelong Alaskan  that had served  the state  alongside many                                                                    
of the members  in the room. She thought  the sponsor should                                                                    
be  commended.  She emphasized  that  Alaska  was the  least                                                                    
connected  state in  the nation  for a  variety of  reasons,                                                                    
including   lack   of   competition,  new   providers,   and                                                                    
acceptance of new technologies.  She thought the bill should                                                                    
be  a  combination  of  the   two  versions  that  had  been                                                                    
discussed. She  agreed with  Co-Chair Bishop's  comment that                                                                    
there would be change  associated with further emerging IJJA                                                                    
regulations. She  lauded the findings section  in the Senate                                                                    
version of the bill.                                                                                                            
                                                                                                                                
Ms. McGuire  continued her testimony. She  thought the board                                                                    
process  outlined  in the  House  version  of the  bill  was                                                                    
problematic.  She stated  that her  organization was  in the                                                                    
emerging technology  area of broadband  and were  doing work                                                                    
outside  the  mainstream  of  the  industry.  She  mentioned                                                                    
OneWebs  work with satellites.  She explained that broadband                                                                    
members were  not allowed to  be part of the  Alaska Telecom                                                                    
Association  (ATA). She  emphasized that  OneWeb served  the                                                                    
unserved and  underserved. She advocated adopting  a version                                                                    
of the bill  with either no industry  representative, or two                                                                    
industry  representatives. She  thought  the Senate  version                                                                    
had  a  creative way  of  involving  community members.  She                                                                    
summarized that  she hoped for  the creation of  an advisory                                                                    
board that was more inclusive.                                                                                                  
                                                                                                                                
10:45:41 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:47:20 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
MARK SPRINGER,  SELF, BETHEL (via teleconference),  spoke in                                                                    
support  of  the  bill.  He  was  a  consultant  for  tribal                                                                    
broadband,  working with  the  Yukon-Kuskokwim Delta  Tribal                                                                    
Broadband   Consortium  (YKDTBC)   which  consisted   of  17                                                                    
federally recognized tribes. He  expanded that YKDTBC had an                                                                    
application with  NTIA for a multi-purpose  broadband system                                                                    
and were  currently testing OneWeb  in Bethel and  Akiak. He                                                                    
mentioned  a tribal  recognition bill  recently voted  on by                                                                    
the  legislature.  He  thought  it was  important  that  the                                                                    
committee recognize  that the first  funding coming  in from                                                                    
NTIA  for  broadband in  Alaska  would  be directed  towards                                                                    
tribes. He  supported Version  D of the  bill by  the Senate                                                                    
Labor and Commerce Committee.                                                                                                   
                                                                                                                                
Mr.   Springer   expressed   concerns   about   the   parity                                                                    
adjustment,  which  he thought  could  be  looked at  as  an                                                                    
industry subsidy. He thought there  was no evidence in rural                                                                    
Alaska that  subsidies reduced cost. He  echoed the comments                                                                    
of Ms.  McGuire regarding less-than-equal  representation by                                                                    
industry segments  in the planning process  within the House                                                                    
version  of the  bill. He  commented  that he  had lived  in                                                                    
rural  Alaska for  over 40  years. He  supported the  Senate                                                                    
version of the bill, which  he thought created somewhat of a                                                                    
"brain  trust," with  the inclusion  of engineers  and local                                                                    
advisory  groups.  He  reminded that  the  Broadband  Office                                                                    
would  be  developing  a  set  of  regulations  to  run  the                                                                    
process. He  thought the office  should be trusted  with its                                                                    
regulatory responsibility.                                                                                                      
                                                                                                                                
10:50:07 AM                                                                                                                   
                                                                                                                                
PAUL   JOHNSON,   SELF,  ANCHORAGE   (via   teleconference),                                                                    
testified in support  of the bill. He worked  in telecom. He                                                                    
had grown  up in  rural Alaska and  worked in  Yakutat doing                                                                    
broadband consultation.  He wanted  to commend  the governor                                                                    
on  his  task force  membership  selection.  He thought  the                                                                    
previous  commenter was  correct in  that the  first funding                                                                    
coming for broadband would be  for tribes. He thought it was                                                                    
important  to  keep  people  in rural  Alaska  in  mind.  He                                                                    
expressed  concern about  public money  being used  to build                                                                    
the assets of privately held companies that could be sold.                                                                      
                                                                                                                                
Mr. Johnson continued his remarks.  He understood the demand                                                                    
for fiber-optic  technology. He  remarked on  the importance                                                                    
of  timing and  permitting  issues in  capital projects.  He                                                                    
wanted there to be a focus  on immediacy and using tribes as                                                                    
a conduit. He discussed  parity adjustment and was concerned                                                                    
that there would  be no economic forces to  contain costs if                                                                    
fiber-optic cable  was used as  the final mile to  homes. He                                                                    
asserted  that  there  would  not  be  multiple  fiber-optic                                                                    
operators  going to  a  community.  He supported  provisions                                                                    
related to community engagement.                                                                                                
                                                                                                                                
10:52:48 AM                                                                                                                   
                                                                                                                                
HAROLD  JOHNSON,   SELF,  ANCHORAGE   (via  teleconference),                                                                    
supported  the  bill.  He was  president  of  Alaska  Tribal                                                                    
Broadband,  which  was a  30  tribal  member consortium.  He                                                                    
cited that  29 of the  tribes did  not have access  to fiber                                                                    
optic  technology and  would  not for  many  years, and  the                                                                    
tribes were using  satellite via OneWeb. He  stated that the                                                                    
tribes were putting in fixed  wireless networks, which could                                                                    
be interfaced with  fiber when it arrived.  He supported the                                                                    
Senate Labor  and Commerce Committees  version  of the bill.                                                                    
He  thought the  bill version  alleviated many  concerns. He                                                                    
thought  it was  untrue that  the  tribes could  not put  in                                                                    
telephone networks.  He mentioned lobbying from  the telecom                                                                    
industry  and suggested  that the  telecom industry  did not                                                                    
want  competition. He  echoed the  comments of  the previous                                                                    
testifier.  He stressed  that there  were opportunities  for                                                                    
telecom companies  to work  with tribes.  He shared  that he                                                                    
was  attending  a  conference with  a  newly  formed  tribal                                                                    
telecom council. He wanted tribes to have a voice.                                                                              
                                                                                                                                
10:55:03 AM                                                                                                                   
                                                                                                                                
MICHAEL  WILLIAMS, SELF,  AKIAK (via  teleconference), spoke                                                                    
in support of  the bill. He worked with  the Yukon Kuskokwim                                                                    
Tribal  Broadband  Consortium.  He relayed  that  there  was                                                                    
OneWeb service to Akiak. He  noted that there were 17 tribes                                                                    
looking  to  NTIA  grants  to  make  sure  the  tribes  were                                                                    
connected. He relayed that there  were plans for fiber optic                                                                    
cable in  the future. He cited  that 98 homes in  Akiak were                                                                    
connected,  and  there  was  a  lot  of  difference  in  the                                                                    
community. He  echoed the  comments of  Ms. McGuire  and Mr.                                                                    
Springer   that  were   advocating  for   providers  to   be                                                                    
represented equally.                                                                                                            
                                                                                                                                
Mr. Williams  continued his testimony. He  wanted to promote                                                                    
competition  by  allowing  all  technologies  and  broadband                                                                    
providers   access   to   funds.    He   did   not   support                                                                    
deprioritizing tribes. He  emphasized compensating technical                                                                    
experts for  their time. He  supported the Senate  Labor and                                                                    
Commerce Committees version of the bill.                                                                                        
                                                                                                                                
10:57:16 AM                                                                                                                   
                                                                                                                                
BRITTANY  WOODS,  ALASKA  PUBLIC  INTEREST  RESEARCH  GROUP,                                                                    
FAIRBANKS  (via teleconference),  spoke  in  support of  the                                                                    
Senate  CS.  She  thought  the  Senate  Labor  and  Commerce                                                                    
Committees    version  of   the   bill  improved   community                                                                    
engagement,  promoted  competition,   and  supported  tribes                                                                    
owning their own network.                                                                                                       
                                                                                                                                
Co-Chair Bishop  asked Ms. Woods  to provide  any additional                                                                    
testimony in writing.                                                                                                           
                                                                                                                                
10:58:15 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:58:23 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
SEAN WILLIAMS,  SELF, ANCHORAGE (via  teleconference), spoke                                                                    
in support  of the Senate  Labor and Commerce  Committee CS.                                                                    
He was Vice President of  Government Affairs and Strategy at                                                                    
Pacific Dataport.  He noted  that Pacific  Dataport launched                                                                    
two  satellites over  Anchorage to  provide connections  for                                                                    
110,000  rural Alaskans  with broadband.  He clarified  that                                                                    
the  ATA  did  not  represent  internet  service  providers,                                                                    
middle-mile providers,  or satellite  providers. It  had not                                                                    
participated  in the  writing  the original  version of  the                                                                    
bill. He  supported the  Senate CS for  the bill,  which had                                                                    
several  important changes.  He asserted  that the  proposed                                                                    
parity fund was  nonsensical. He listed the  term  in state                                                                     
which would  require the  use of  incumbent telecoms  to get                                                                    
funding.                                                                                                                        
                                                                                                                                
Mr.  Williams asserted  that the  Senate Labor  and Commerce                                                                    
Committees   CS did  not deprioritize  tribes  in the  award                                                                    
process, it  compensated technical  experts for  their time,                                                                    
promoted competition,  and was  perfectly in line  with IIJA                                                                    
rules. He  discussed the proposed  parity fund  and reasoned                                                                    
that the fund would need to  be started with $168 billion to                                                                    
achieve true parity.                                                                                                            
                                                                                                                                
Co-Chair  Bishop asked  Mr. Williams  to provide  additional                                                                    
testimony in writing.                                                                                                           
                                                                                                                                
11:01:37 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:02:28 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Bishop CLOSED public testimony.                                                                                        
                                                                                                                                
Senator von Imhof referenced  public testimony and discussed                                                                    
the version  of the bill  that passed the House  in contrast                                                                    
with the  Senate Labor and  Commerce Committee  version. She                                                                    
thought  public testimony  had indicated  the membership  of                                                                    
the advisory  board was one  of the differences  between the                                                                    
versions. She  listed members  from stakeholder  groups. The                                                                    
House  version  of  the bill  iterated  that  the  Broadband                                                                    
Advisory  Board   shall  establish  a   Broadband  Technical                                                                    
Working Group  to provide  technical recommendations  to the                                                                    
advisory board.  She thought the  Senate Labor  and Commerce                                                                    
Committees  version  appeared to  propose that  the advisory                                                                    
board  itself was  the technical  working group.  She listed                                                                    
technical  experts  that  would  be part  of  the  technical                                                                    
working  group, including  engineers  and  experts in  fiber                                                                    
optics,  telecommunications,  and  satellite  and  microwave                                                                    
technology.  She  asked  if  the   House  version  had  more                                                                    
geographical  and  stakeholder  representation,  versus  the                                                                    
Senate Labor  and Commerce Committee  version that  had more                                                                    
technical representation. She wondered  how to blend the two                                                                    
groups to have a balance.                                                                                                       
                                                                                                                                
Ms.  O'Connor thought  Senator von  Imhof had  described the                                                                    
differences in the two board  structures proposed in the two                                                                    
bills. She continued that in  the House version of the bill,                                                                    
the two  concepts were already  blended. She  commented that                                                                    
the  categories  of  those  listed  for  membership  on  the                                                                    
advisory  board  were  high  level  positions  in  commerce,                                                                    
education,  healthcare, and  other  categories. She  thought                                                                    
the stakeholders would bring vision  and guidance on policy.                                                                    
She noted that the task  force had developed a similar broad                                                                    
stakeholder group with the  addition of technical expertise.                                                                    
She  believed  the  House version  melded  the  concepts  by                                                                    
having a  stakeholder group provide vision  with the support                                                                    
of technical expertise in the working group.                                                                                    
                                                                                                                                
11:05:44 AM                                                                                                                   
                                                                                                                                
Senator von Imhof  noted that the House version  of the bill                                                                    
mentioned a   technical working  group who  collectively had                                                                    
expertise  in different  technologies.   She wondered  about                                                                    
using  language  from  the  Senate  CS  to  provide  a  more                                                                    
detailed description  of membership.  She thought  there was                                                                    
concern about different industries  in the state making sure                                                                    
they have a  seat at the table. She thought  there seemed to                                                                    
be specific reference to compensation  in the Senate CS. She                                                                    
referenced public testimony  that supported paying technical                                                                    
experts and  noted that  the House version  of the  bill had                                                                    
proposed  that  members  of  the  advisory  board  were  not                                                                    
entitled to compensation.                                                                                                       
                                                                                                                                
Ms. O'Connor  thought it would  be simple to define  some of                                                                    
the various technical  experts. She pointed out  that all of                                                                    
the   telecom  providers   in  the   state  were   broadband                                                                    
providers, and  they used all the  varying technologies. She                                                                    
addressed   Senator    von   Imhof's    question   regarding                                                                    
compensation.  She thought  the  House version  of the  bill                                                                    
appeared  to model  what the  task  force had  accomplished,                                                                    
which  was done  without compensation.  She remarked  on the                                                                    
diverse  representation on  the task  force and  noted there                                                                    
were  extensive  hearings  in  which  many  of  the  current                                                                    
testifiers offered  remarks. She  pointed out that  the task                                                                    
force meetings were  open to anyone that  wanted to present,                                                                    
and every  meeting was  public. The task  force was  able to                                                                    
accomplish a  strong report based  on a volunteer  effort of                                                                    
the stakeholders,  which she thought  was a valuable  way to                                                                    
move forward.  She thought the  legislature should  weigh in                                                                    
about compensation.                                                                                                             
                                                                                                                                
Co-Chair  Bishop observed  that  there  were many  engineers                                                                    
listed to be on the board  as proposed in the Senate version                                                                    
of the  bill but did  not observe any clients.  He recounted                                                                    
that   many  school   districts  had   visited  during   the                                                                    
legislative session  and commented on the  price of internet                                                                    
connectivity. He thought  there was more work to  be done on                                                                    
the bill. He thought a  non-engineer, either rural or urban,                                                                    
needed to be included.                                                                                                          
                                                                                                                                
Co-Chair Bishop set the bill aside.                                                                                             
                                                                                                                                
Co-Chair Bishop CLOSED public testimony.                                                                                        
                                                                                                                                
11:10:32 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
                                                                                                                                
11:10:52 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Bishop relayed that the  amendment deadline was the                                                                    
following day at noon.                                                                                                          
                                                                                                                                
CSHB 363(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
11:11:07 AM                                                                                                                   
RECESSED                                                                                                                        
                                                                                                                                
[The meeting was adjourned at 4:42 p.m.]                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
4:42:07 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 4:42 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects