Legislature(2021 - 2022)BELTZ 105 (TSBldg)

05/11/2022 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 363 BROADBAND: OFFICE, GRANTS, PARITY TELECONFERENCED
Moved SCS CSHB 363(L&C) Out of Committee
+= SB 181 IDENTIFICATION OF CONTRACTOR IN ADS TELECONFERENCED
Moved CSSB 181(CRA) Out of Committee
*+ SB 237 AMBULATORY SURGICAL EMPLOYEES: OVERTIME TELECONFERENCED
Moved SB 237 Out of Committee
+= SB 232 INTELLECTUAL PROPERTY OF EMPLOYEES TELECONFERENCED
Scheduled but Not Heard
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
            HB 363-BROADBAND: OFFICE, GRANTS, PARITY                                                                        
                                                                                                                                
1:45:13 PM                                                                                                                    
CHAIR COSTELLO announced  the consideration of 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."                                                                                                                
                                                                                                                                
She advised  the listening public  that this  committee sponsored                                                               
and considered  a version  of this legislation  this year  so the                                                               
topic was familiar. She asked  the sponsor to introduce the bill,                                                               
after  which  the committee  would  consider  a Senate  committee                                                               
substitute.                                                                                                                     
                                                                                                                                
1:46:06 PM                                                                                                                    
REPRESENTATIVE  BRYCE EDGMON,  Alaska State  Legislature, Juneau,                                                               
Alaska, sponsor  of HB  363, stated that  he introduced  the bill                                                               
because the  state is on  the cusp of receiving  an unprecedented                                                               
amount of federal  money for broadband due to the  passage of the                                                               
federal Infrastructure  Act in November  2021. Because  there are                                                               
no  Alaska statutes  addressing broadband,  the bill  follows the                                                               
recommendations  from  the  Governor's Broadband  Taskforce  that                                                               
convened  from May  to November  2021. Both  the House  Labor and                                                               
Commerce and  Finance committees made  slight changes as  it went                                                               
through  the committee  process. He  continued to  paraphrase the                                                               
following sponsor statement:                                                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                       Sponsor Statement:                                                                                     
        CSHB 363(FIN) Broadband: Office, Grants, Parity                                                                         
                                                                                                                                
     "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."                                                                                       
                                                                                                                                
     Last  May, Gov.  Dunleavy  issued Administrative  Order                                                                    
     No. 322,  establishing the Task  Force on  Broadband to                                                                    
     develop  policy  objectives   and  steps  necessary  to                                                                    
     prepare Alaska for a massive  infusion of federal money                                                                    
     through  the  federal Infrastructure,  Investment,  and                                                                    
     Jobs   Act  (IIJA)   The  goal   of   the  task   force                                                                    
     recommendations  and IIJA  is to  move Alaska  into the                                                                    
     21st century  for broadband, and provide  for essential                                                                    
     services  by creating  the opportunity  for communities                                                                    
     to do  things like routine two-way  video conferencing,                                                                    
     advanced  telemedicine  and educational  opportunities,                                                                    
     public safety improvements, and economic development.                                                                      
                                                                                                                                
     House Bill 363 is written  directly from the task force                                                                    
     recommendations and as  enabling legislation does three                                                                    
     things:  creates  a  broadband  office,  establishes  a                                                                    
     Broadband   Parity  Adjustment   Fund,   and  forms   a                                                                    
     Statewide Broadband Advisory Board.                                                                                        
                                                                                                                                
     To  be eligible  for  federal funding  each state  must                                                                    
     establish a broadband office.  In consultation with the                                                                    
     administration, it  was decided  that the  office would                                                                    
     be  housed in  the  Commerce,  Community, and  Economic                                                                    
     Development  (DCCED). It  will initially  contain three                                                                    
     staff and will focus during  the first year on planning                                                                    
     activities  and working  with the  FCC to  complete the                                                                    
     mapping process for the state.  In alignment with IIJA,                                                                    
     as times goes on,  the office will prioritize broadband                                                                    
     service  expansion  in  the following  priority  order:                                                                    
     unserved   areas,   underserved   areas,   and   anchor                                                                  
     institutions.                                                                                                            
                                                                                                                                
     The  Broadband Parity  Adjustment  Fund  is a  separate                                                                    
     fund  in  the state  treasury  to  be a  repository  of                                                                    
     federal  funds  for  the  purposes  of  deploying  high                                                                    
     quality,  affordable broadband  across the  Alaska. The                                                                    
     Office may  develop a program  in the Fund  to directly                                                                    
     offset the costs of broadband for eligible consumers.                                                                      
                                                                                                                                
     Finally,  HB   363  creates  the   Statewide  Broadband                                                                    
     Advisory Board  advise to the  Office of  Broadband and                                                                    
     to  facilitate  statewide stakeholder  engagement.  The                                                                    
     Board is  composed of nine public  members appointed by                                                                    
     the Governor,  two ex-officio legislative  members, and                                                                    
     the Commissioners  of DCCED and the  Dept. of Education                                                                    
     & Early  Development (DEED). The  Board shall  create a                                                                    
     technical working  group to provide  recommendations to                                                                    
     the Board  comprised of members  who have  expertise in                                                                    
     the  different  technologies   that  provide  broadband                                                                    
     service and  who manage and deliver  broadband projects                                                                    
     in Alaska.                                                                                                                 
                                                                                                                                
REPRESENTATIVE EDGMON said  it's important to note  that the bill                                                               
references "technology  neutral" and  "tribes" several  times. He                                                               
conveyed that  as much as  Alaska is reacting to  this once-in-a-                                                               
lifetime  opportunity, federal  agencies are  similarly reactive.                                                               
The plan currently is for at  least one federal employee to be in                                                               
the state to work with the broadband office and stakeholders.                                                                   
                                                                                                                                
REPRESENTATIVE EDGMON said he looked at the draft Senate CS                                                                     
briefly and it appeared to have some very good changes. He                                                                      
looked forward to working with the committee.                                                                                   
                                                                                                                                
1:50:39 PM                                                                                                                    
CHAIR  COSTELLO  said  she appreciates  his  commitment  to  this                                                               
topic. She agreed  with his statement that this  was a once-in-a-                                                               
lifetime opportunity  that will  make a tremendous  difference in                                                               
the quality of life for many Alaskans.                                                                                          
                                                                                                                                
CHAIR COSTELLO solicited  a motion to adopt  the Senate committee                                                               
substitute.                                                                                                                     
                                                                                                                                
1:51:22 PM                                                                                                                    
SENATOR MICCICHE moved  to adopt the CS for House  Bill 363, work                                                               
order 32-LS1527\D, as the working document.                                                                                     
                                                                                                                                
1:51:42 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:51:51 PM                                                                                                                    
CHAIR  COSTELLO reconvened  the  meeting  and recognized  Senator                                                               
Micciche.                                                                                                                       
                                                                                                                                
SENATOR  MICCICHE restated  the  motion. He  moved  to adopt  the                                                               
Senate CS  for CSHB 363,  work order 32-LS1527\D, as  the working                                                               
document.                                                                                                                       
                                                                                                                                
1:52:09 PM                                                                                                                    
CHAIR COSTELLO objected for a description of the changes.                                                                       
                                                                                                                                
1:52:18 PM                                                                                                                    
KATIE  MCCALL,   Staff,  Senator   Mia  Costello,   Alaska  State                                                               
Legislature,  Juneau,  Alaska,  presented the  following  changes                                                               
from version W to version D for HB 363:                                                                                         
                                                                                                                                
     Page 1, Lines 1-4                                                                                                      
     Amends the  title of  the bill to  "An Act  relating to                                                                    
     broadband;  establishing   the  office   of  broadband;                                                                    
     providing  for  a  broadband grant  and  loan  program;                                                                    
     establishing  the Statewide  Broadband Advisory  Board;                                                                    
     establishing  community  engagement  task  forces;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
     Sec. 1  Page 1, Lines 6-14 & Page 2, Lines 1-31                                                                        
     Adds  legislative  findings   and  intent  language  to                                                                    
     convey  the critical  need for  broadband, particularly                                                                    
     in unserved  and underserved areas  of the  state. This                                                                    
     section also highlights the importance of:                                                                                 
        • affordable and quality broadband service  in the                                                                      
          state                                                                                                                 
        • designing policies that ensure robust competition                                                                     
          and  maximize  consumer welfare,  innovation,  and                                                                    
          investment                                                                                                            
        • deploying broadband  in   high-cost  areas   and                                                                      
          ensuring  that low-income  individuals can  afford                                                                    
          broadband                                                                                                             
        •                                                                                                                       
     The  language  in  this section  also  notes  that  the                                                                    
     purpose of  this Act is  to establish a grant  and loan                                                                    
     program that  will support  the extension  of broadband                                                                    
     infrastructure in  unserved and underserved  areas, and                                                                    
     outlines  the legislature's  intent that  any grant  or                                                                    
     loan  to a  private  entity will  be  conditioned on  a                                                                    
     guarantee  that the  infrastructure  will be  developed                                                                    
     and  maintained for  public  use for  a  minimum of  30                                                                    
     years.                                                                                                                     
                                                                                                                                
1:56:28 PM                                                                                                                    
     Sec. 2    AS  44.33.910 Page  3, Lines  1-31 &  Page 4,                                                                
     Lines 1-13                                                                                                             
     Amends  the   powers  and  duties  of   the  office  of                                                                    
     broadband, established  in the Department  of Commerce,                                                                    
     Community, and Economic  Development, by outlining that                                                                    
     the  office serves  as the  central  planning body  for                                                                    
     broadband in the state and has the power and duty to:                                                                      
        • coordinate with local governments, tribes, public                                                                     
          and  private  entities,  nonprofit  organizations,                                                                    
          and  consumer-owned  and investor-owned  utilities                                                                    
          on broadband deployment and access plans                                                                              
        • review existing broadband initiatives, policies,                                                                      
          and public and private investments                                                                                    
        • develop a statewide   plan  to  encourage  cost-                                                                      
          effective broadband access,  particularly in rural                                                                    
          and other unserved and underserved areas                                                                              
        • update broadband  goals   and  definitions   for                                                                      
          broadband  service  in  unserved  and  underserved                                                                    
          areas   as   technology   advances,   though   the                                                                    
          definition  for broadband  service must  be actual                                                                    
          speeds  of   at  least  25  Megabits   per  second                                                                    
         download and three Megabits per second upload                                                                          
        • encourage public-private partnerships to increase                                                                     
          deployment                                                                                                            
        • review and consider the  recommendations of  the                                                                      
          Statewide  Broadband  Advisory  Board  established                                                                    
          under AS 44.33.920                                                                                                    
     This section also states that  when developing plans or                                                                    
     strategies  for broadband  deployment, the  office must                                                                    
     consider the following:                                                                                                    
        • partnerships  between    communities,    tribes,                                                                      
          nonprofit   organizations,    local   governments,                                                                    
          consumer-owned  and investor-owned  utilities, and                                                                    
          public and private entities                                                                                           
        • funding opportunities  that   provide  for   the                                                                      
          coordination  of   public,  private,   state,  and                                                                    
          federal   funds  for   the   purposes  of   making                                                                    
          broadband  available to  unserved and  underserved                                                                    
          areas                                                                                                                 
        • barriers to deployment,  adoption,  and  use  of                                                                      
          broadband,  including  affordability  and  project                                                                    
          logistics                                                                                                             
        • requiring the minimum  broadband service  of  25                                                                      
          Megabits  per second  download and  three Megabits                                                                    
          per second upload                                                                                                     
     This section also states that the office:                                                                                  
        • may assist applicants  for the  grant  and  loan                                                                      
          program  established  in   this  bill  in  seeking                                                                    
          federal  funding  or  matching  grants  and  other                                                                    
          grant opportunities for deploying broadband                                                                           
        • may take all appropriate steps to seek and apply                                                                      
          for federal  funds or grants for  which the office                                                                    
          is eligible, and may accept donations                                                                                 
        • shall adopt regulations under AS 44.62  to carry                                                                      
          out its duties                                                                                                        
                                                                                                                                
1:59:54 PM                                                                                                                    
     Sec. 44.33.915 Page 4, Lines 14-28                                                                                     
     Removes the  parity adjustment fund found  in Version W                                                                    
     of the  bill and creates  the broadband grant  and loan                                                                    
     program in  the office  of broadband. The  program will                                                                    
     award funding  to eligible applicants to  expand access                                                                    
     to  broadband  service   in  unserved  and  underserved                                                                    
     areas. This  section stipulates  that the  office shall                                                                    
     work  in  collaboration  with the  Statewide  Broadband                                                                    
     Advisory  Board   to  review  applications   and  award                                                                    
     grants.                                                                                                                    
     Additionally:                                                                                                              
        • grants and loans may be awarded to assist in                                                                          
          funding     acquisition,     installation,     and                                                                    
          construction   of  middle   mile  and   last  mile                                                                    
          infrastructure,   and   to   assist   in   funding                                                                    
          strategic  planning  for  deploying  broadband  in                                                                    
          unserved and underserved areas                                                                                      
     The office:                                                                                                                
        • may fund all or part of an application                                                                              
        • shall award funds to qualified applicants in all                                                                      
          regions of the state                                                                                                
        • shall consider affordability and quality of                                                                           
          service    in   making   determinations    on   an                                                                    
          application                                                                                                           
                                                                                                                                
2:01:13 PM                                                                                                                    
     Sec. 44.33.920 Page  4, Lines 29-31 & Page  5, Lines 1-                                                                
     20                                                                                                                     
     Amends  the  membership   of  the  Statewide  Broadband                                                                    
     Advisory Board  and stipulates that the  advisory board                                                                    
     shall work  with the  community engagement  task forces                                                                    
     established  in this  version of  bill to  consider the                                                                    
     challenges  and   opportunities  related   to  regional                                                                    
     connectivity.   The   following   eight   members   are                                                                    
     appointed by the governor to  serve three-year terms on                                                                    
     the advisory board:                                                                                                        
        • a mechanical engineer                                                                                                 
        • a civil engineer                                                                                                      
        • an aerospace engineer                                                                                                 
      • one member with expertise in telecommunications                                                                         
        • one member with expertise in fiber optics                                                                             
        • one member with expertise in satellite technology                                                                     
        • one member with expertise in microwave technology                                                                     
        • a technology neutral consultant                                                                                       
     This  section  provides  that  the  technology  neutral                                                                    
     consultant receives a Range 27  salary, while all other                                                                    
     members of the advisory board  receive $307 a day while                                                                    
     attending   meetings  and   are   entitled  to   travel                                                                    
     expenses.                                                                                                                  
                                                                                                                                
2:03:00 PM                                                                                                                    
     Sec. 44.33.930 Page  5, Lines 21-31 & Page  6, Lines 1-                                                                
     16                                                                                                                     
     Establishes  community  engagement   task  forces.  The                                                                    
     director  of  the  office of  broadband  shall  appoint                                                                    
     state residents  to serve as needed,  and shall include                                                                    
     members representing:                                                                                                      
        • a tribe                                                                                                               
        • a broadband user                                                                                                      
        • a heath care provider                                                                                                 
        • a member of the Alaska Search and Rescue                                                                              
          Association or an operational member organization                                                                     
        • the social services sector                                                                                            
        • a tribal or state governmental employee with                                                                          
          access to judicial records                                                                                            
        • the transportation industry                                                                                           
        • a member of a regional development organization                                                                       
        • a local government public servant                                                                                     
        • a state government public servant                                                                                     
     This  section  provides  that members  of  a  community                                                                    
     engagement  task   force  receive  $307  a   day  while                                                                    
     attending   meetings  and   are   entitled  to   travel                                                                    
     expenses.                                                                                                                  
                                                                                                                                
     Sec. 44.33.940 Page 6, Lines 17-25                                                                                     
     Provides definitions for:                                                                                                  
         • office                                                                                                               
         • underserved area                                                                                                     
         • unserved area                                                                                                        
                                                                                                                                
     Sec. 3 Page 6, Lines 26-27                                                                                             
     Lists sections repealed on June 30,2030                                                                                    
                                                                                                                                
     Sec. 4 Page 6, Line 28                                                                                                 
     Has an immediate effective date                                                                                            
                                                                                                                                
2:05:14 PM                                                                                                                    
CHAIR COSTELLO removed her objection; finding no further                                                                        
objection, the Senate CS for HB 363, version D, was adopted.                                                                    
                                                                                                                                
SENATOR STEVENS joined the committee.                                                                                           
                                                                                                                                
2:05:36 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on HB 363.                                                                               
                                                                                                                                
2:05:55 PM                                                                                                                    
CHAD  RUPE,   Broadband  Program   Manager,  State   of  Montana,                                                               
described  his experience  standing up  and working  on broadband                                                               
programs at  both the  state and local  levels. Most  recently he                                                               
completed  the application  for the  Connect Montana  program for                                                               
the American Rescue  Plan Act (ARPA) section 602  State and Local                                                               
Fiscal Recovery Funds.                                                                                                          
                                                                                                                                
MR. RUPE offered the following suggestions and observations                                                                     
based on what he had learned through the Montana process                                                                        
                                                                                                                                
   • Work to ensure that the state legislation does not                                                                         
     overprescribe  because  it  can create  more  problems  than                                                               
     solutions.                                                                                                                 
   • Align  state    law     with    the    federal    National                                                                 
     Telecommunications  and  Information  Administration  (NTIA)                                                               
     requirements  for  deployment of  Infrastructure  Investment                                                               
     and Jobs Act (IIJA) funds.                                                                                                 
   • Creating a definition for "underserved" and including low                                                                  
     latency in the model are very important                                                                                    
   • Ensure the state is able to appropriately fund the                                                                         
     deployment  of  broadband  and fund  contractors  to  enable                                                               
     monitoring throughout the life cycle                                                                                       
        • Flex the different contractors for different purposes                                                                 
        • Montana chose to focus exclusively on a grant program                                                                 
          to pay for monitoring because the burden of a loan                                                                    
          program is much higher                                                                                                
        • Ensure there is a robust location-level statewide                                                                     
          broadband mapping system, such as Montana has                                                                         
          established                                                                                                           
          • Readily identify areas as "served," "unserved,"                                                                     
             "under-served" and "frontier"                                                                                      
          • Think through decisions before disbursing funds                                                                     
          • Ensure special funding is available to address fraud                                                                
          • Ensure compliance with NTIA for eligibility for                                                                     
             funding                                                                                                            
     • Develop a small but effective staff to deploy the funds                                                                  
     • Have an independent consultant  with experience  working                                                                 
        with the different agencies at the state and federal                                                                    
        level who will understand the technical, financial, and                                                                 
        managerial components of sustainability                                                                                 
     • Reduce the guaranteed term for  providing service  to an                                                                 
        area from 30 years to 15 years                                                                                          
        • This would match the lifecycle of the hard assets                                                                     
          deployed with the grant funding                                                                                       
   • Ensure the advisory board has someone who has been a                                                                       
     provider                                                                                                                   
     • They will be uniquely qualified to identify issues                                                                       
   • Include language to streamline permitting                                                                                  
     •  Coordination between state  and  federal agencies  will                                                                 
        facilitate getting to the construction phase                                                                            
     • Coordinate with Native villages                                                                                          
                                                                                                                                
CHAIR  COSTELLO expressed  appreciation  for the  review and  his                                                               
experience.                                                                                                                     
                                                                                                                                
2:15:21 PM                                                                                                                    
MARK GOLDSTEIN,  President, International Research  Center (IRC),                                                               
Phoenix, Arizona, advised that IRC  is a 30-year-old company that                                                               
works  in the  areas  of broadband,  and  smart technologies  for                                                               
homebuilding   and  cities   and  things   that  intersect   with                                                               
broadband. He  recounted his professional credentials  related to                                                               
broadband.                                                                                                                      
                                                                                                                                
[Mr.  Goldstein's  testimony  was interrupted  due  to  technical                                                               
difficulties.]                                                                                                                  
                                                                                                                                
2:16:45 PM                                                                                                                    
MR. GOLDSTEIN recounted his Alaska-focused  client work with both                                                               
Quintillion Networks and through a  firm that writes grants for a                                                               
number of Alaska Native tribes.                                                                                                 
                                                                                                                                
MR. GOLDSTEIN  echoed Mr. Rupe's  comments about the  efforts the                                                               
Alaska broadband office  will need to undertake and  how to staff                                                               
for those efforts.  He agreed that adequate  staffing is critical                                                               
to ensure compliance  between the state and the  grantees and the                                                               
state  and  the  federal  government.  He  also  highlighted  the                                                               
importance  of  using  technical resources  to  inform  strategic                                                               
processes  and   evaluate  the   technical  viability   of  grant                                                               
applications. He  voiced support  for the  paid position  for the                                                               
technologist and dedicating substantial bandwidth to the effort.                                                                
                                                                                                                                
2:18:43 PM                                                                                                                    
MR. GOLDSTEIN  turned his attention  to the issue of  mapping. He                                                               
questioned  having   a  mechanical  engineer  on   the  technical                                                               
advisory committee and  emphasized the need for  the committee to                                                               
have expertise  in mapping and socioeconomic  analysis. He agreed                                                               
that  the  amount  of  money  Alaska  is  slated  to  receive  is                                                               
unprecedented, but  pointed out that  it will not bring  fiber to                                                               
all areas of the state. Some  areas will be oversubscribed in the                                                               
grants received  and some will be  left out. The idea  of mapping                                                               
and  a socioeconomic  analysis  is to  ensure  a methodology  for                                                               
allocating  spending  for  both  fiber and  wireless.  He  voiced                                                               
support for the technology agnosticism in that regard.                                                                          
                                                                                                                                
MR. GOLDSTEIN highlighted that Alaska  is unique among all states                                                               
in  the number  of  Native villages  and  entities interested  in                                                               
Educational Broadband  Service (EBS) frequencies. He  opined that                                                               
the Commerce authority was the right track.                                                                                     
                                                                                                                                
MR.  GOLDSTEIN  provided  specific  recommendations  on  the  363                                                               
language. Under the  powers to make grants and  loans he strongly                                                               
suggested:                                                                                                                      
                                                                                                                                
   • In addition to unserved and under-served communities, add                                                                  
     the  term "community  anchor  institutions."  Both the  U.S.                                                               
     Treasury   and  IIJA   allow  grant   programs  and   grants                                                               
     specifically to schools, libraries  and higher education. In                                                               
     some  circumstances health  care  is also  allowed. He  said                                                               
     that category is  in statute for both of the  large pools of                                                               
     money,  so   it  makes  sense  to   recognize  the  granting                                                               
     authority for those kinds of institutions directly.                                                                        
   • In addition to the focus on infrastructure deployment, he                                                                  
     suggested  mentioning the  power  and scope  to develop  and                                                               
     manage digital equity initiatives  and grant programs in the                                                               
     digital  equity  space. For  example,  $3  billion in  block                                                               
     grants  and $15  billion for  consumer monthly  subsidies is                                                               
     moving to  the state.  Digital equity  that is  not consumer                                                               
     subsidies  is usually  for things  like giving  away devices                                                               
     and services and paying for community centers.                                                                             
                                                                                                                                
CHAIR   COSTELLO  thank   him  for   the  review   and  expressed                                                               
appreciation for his expertise.                                                                                                 
                                                                                                                                
2:23:50 PM                                                                                                                    
MARK SPRINGER, representing self,  Bethel, Alaska, stated that he                                                               
is a  private consultant who  currently is working in  the tribal                                                               
broadband arena. He  mentioned Ms. McCall's review  of the latest                                                               
version  and said  he  was  pleased that  the  provision for  the                                                               
parity adjustment  fund was removed. There  is no need for  it if                                                               
the  extension  of   fiber  to  rural  areas   results  in  costs                                                               
comparable  to what  Anchorage  is paying.  He  commented on  and                                                               
provided suggestions in the following areas:                                                                                    
                                                                                                                                
   • It will be a huge job for the broadband office to write                                                                    
     regulations,   particularly  in   the   area  of   applicant                                                               
     qualifications for the loans.                                                                                              
   • He suggested the advisory board specifically have a                                                                        
     telecommunications  representative   and  a  community-based                                                               
     taskforce                                                                                                                  
   • He urged including capacity for Alaska Public Broadcasting                                                                 
     and  the   Public  Broadcasting  System  (PBS)   to  improve                                                               
     programming into rural Alaska.                                                                                             
   • He mentioned the authority of the broadband office and                                                                     
     urged respect for the inherent  sovereignty of Alaska Native                                                               
     tribes  to  develop  and  carry   out  their  own  broadband                                                               
     planning for the federal funding  they receive. There should                                                               
     be no concern that a state  plan may override a tribe's plan                                                               
     to provide service.                                                                                                        
     • Regardless of the system a village has, the Middle Mile                                                                  
        will be reaching back to connect to all the other                                                                       
        networks in Alaska and the country so that shouldn't be                                                                 
        an issue.                                                                                                               
                                                                                                                                
2:27:38 PM                                                                                                                    
MR. SPRINGER concluded  his comments saying his wish  is that the                                                               
final  bill  does  not  contain  the  provision  for  the  parity                                                               
adjustment fund and  that it does maintain the  neutrality of the                                                               
advisory board.                                                                                                                 
                                                                                                                                
CHAIR COSTELLO thanked him for his testimony.                                                                                   
                                                                                                                                
2:28:30 PM                                                                                                                    
SHAWN WILLIAMS, Vice President of Government Affairs and                                                                        
Strategy, Pacific Dataport, Anchorage, Alaska, provided the                                                                     
following prepared testimony on HB 363:                                                                                         
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     We   are  the   locally-owned  satellite   middle  mile                                                                    
     provider     located  in   Anchorage     launching  two                                                                    
     satellites  over 100%  of  Alaska  and connecting  more                                                                    
     than 110,000  rural Alaskans with broadband.  Our first                                                                    
     of two satellites will launch  in August and the second                                                                    
     will launch in 2024.                                                                                                       
                                                                                                                                
     I'm going  to keep my  testimony short and  simple. The                                                                    
     committee substitute  (CS) version that  Chair Costello                                                                    
     is  bringing   forward  today   is  supported   by  the                                                                    
     stakeholders who previously had  concerns about HB 363.                                                                    
     It  takes into  consideration  what  other states  have                                                                    
     actually  done   to  simply  establish  an   office  of                                                                    
     broadband.  This  CS  has   several  changes  that  are                                                                    
     important to us:                                                                                                           
                                                                                                                                
         •  Removes the non-sensical parity fund                                                                                
         •  Adjusts for better provider representation and                                                                      
           community engagement                                                                                                 
         •  Includes all the IIJA requirements known to date                                                                    
         •  Promotes competition                                                                                                
         •  Does not deprioritize the tribes in the award                                                                       
           consideration process                                                                                                
         •  Includes all technologies possible and                                                                              
         •  Establishes a broadband office with the goal of                                                                     
           serving every household in Alaska                                                                                    
                                                                                                                                
     Finally, Chair Costello's CS has  the changes we needed                                                                    
     and  wanted.   We  appreciate  that  this   CS  version                                                                    
     prioritizes   the  unserved   and  works   to  organize                                                                    
     Alaska's broadband funding. We  encourage the spirit of                                                                    
     competition  and   anything  that   promotes  broadband                                                                    
     expansion,  efficiency, lower  prices, better  service,                                                                    
     competition, and a free market    we believe the new CS                                                                    
     version does this.                                                                                                         
                                                                                                                                
     I  would like  to  thank this  committee  and our  bill                                                                    
     sponsor  for  addressing  such a  major  challenge  for                                                                    
     Alaska.                                                                                                                    
                                                                                                                                
2:30:35 PM                                                                                                                    
LESIL  MCGUIRE,  Consultant,  OneWeb, Anchorage,  Alaska,  stated                                                               
that OneWeb  was the  first company  to build  a low  earth orbit                                                               
(LEO) constellation  for more  powerful connections  for Alaskans                                                               
and others. She noted that she  was also testifying as a lifelong                                                               
Alaskan  who  cares  deeply  about  the  policies  that  will  be                                                               
established for broadband. She advised  that she joined OneWeb in                                                               
the  belief that  having capacity  from the  first LEO  satellite                                                               
constellation is  one of the  many solutions needed to  close the                                                               
digital divide.                                                                                                                 
                                                                                                                                
To  date,   she  said  OneWeb   has  successfully   launched  423                                                               
satellites so  it now  fully covers Alaska  and the  Arctic. They                                                               
also have four meaningful partnerships  with Alaska companies and                                                               
tribes. She  invited the  members to the  Anchorage office  for a                                                               
demonstration.                                                                                                                  
                                                                                                                                
She  provided  the following  comments  on  the Senate  committee                                                               
substitute for HB 363:                                                                                                          
                                                                                                                                
   • Carefully consider the composition of the broadband office                                                                 
     and Broadband Advisory Board to ensure a subjective                                                                        
     outlook.                                                                                                                   
   • She liked the way the SCS interweaves a strong broadband                                                                   
     office mission in the findings section.                                                                                    
   • An advisory board that is scientifically oriented will make                                                                
     objective decision making more likely.                                                                                     
   • Ensure the grant process is overseen by people with the                                                                    
     expertise to understand the difficulties associated with                                                                   
     building broadband projects.                                                                                               
     • Ensure sufficient capital and technology underpinnings to                                                                
        move to fruition                                                                                                        
   • She voiced support for the community-engagement taskforce                                                                  
     pulling in a myriad of stakeholders.                                                                                       
   • Importantly, the SCS provides a strong framework and a good                                                                
     interweaving of legislative objectives with flexibility in                                                                 
     the IIJA regulation process.                                                                                               
   • She voiced   support    for   the   definitions   section,                                                                 
    particularly for "underserved area" and "unserved area."                                                                    
   • She liked the adherence to the Administrative Procedures                                                                   
     Act because it gives the public the opportunity to see the                                                                 
     proposed regulations throughout the process.                                                                               
                                                                                                                                
MS. MCGUIRE  expressed appreciation for the  open-minded, curious                                                               
technology approach  of the Senate  CS for HB 363  and emphasized                                                               
the importance  of laying the  right foundation for  awarding the                                                               
grants.                                                                                                                         
                                                                                                                                
CHAIR COSTELLO  thanked her for her  service to the state  in her                                                               
current capacity and also as a former member of the Senate.                                                                     
                                                                                                                                
SENATOR STEVENS  said he was  pleased to  hear her voice  and her                                                               
presence as a member of the Senate was missed.                                                                                  
                                                                                                                                
MS. MCGUIRE thanked him for the warm comments.                                                                                  
                                                                                                                                
SENATOR MICCICHE said he too appreciated hearing her voice.                                                                     
                                                                                                                                
CHAIR   COSTELLO  listed   the  individuals   online  to   answer                                                               
questions.                                                                                                                      
                                                                                                                                
2:39:25 PM                                                                                                                    
BRITTANY  WOODS-ORRISON,  Broadband   Specialist,  Alaska  Public                                                               
Interest Research  Group and Native Movement,  Fairbanks, Alaska,                                                               
stated that  her position was  created recently to  educate users                                                               
on  broadband  issues  and  create  a  network  of  advocates  to                                                               
overcome the digital  divide. She described Alaska as  one of the                                                               
most  disconnected states  in  the nation  and  pointed out  that                                                               
indigenous  communities  are   disproportionately  affected.  She                                                               
conveyed  her belief  that the  2.5  gigahertz spectrum  licenses                                                               
that  the FCC  has  awarded  to Alaska  tribes  were  the key  to                                                               
helping  tribes  employ  their  own  people,  control  their  own                                                               
networks,  and  resolve their  own  issues.  She highlighted  the                                                               
importance of  knowing the geography  of an area  to successfully                                                               
build out  broadband and  pointed out that  the people  living in                                                               
these indigenous communities already possess that knowledge.                                                                    
                                                                                                                                
2:41:40 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on HB 363.                                                                               
                                                                                                                                
2:41:47 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:45:45 PM                                                                                                                    
CHAIR COSTELLO reconvened  the meeting and stated  she would hold                                                               
HB 363 in  committee to allow the members to  review the SCS. She                                                               
noted that she  would not adjourn the meeting until  later in the                                                               
day.                                                                                                                            
                                                                                                                                
            HB 363-BROADBAND: OFFICE, GRANTS, PARITY                                                                        
                                                                                                                                
6:54:58 PM                                                                                                                    
CHAIR COSTELLO announced  the consideration of 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."                                                                                                                
                                                                                                                                
She solicited a motion to adopt Amendment 1.                                                                                    
                                                                                                                                
6:55:13 PM                                                                                                                    
SENATOR MICCICHE moved Amendment 1 to HB 363.                                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     HB 363                                                                                                                     
     Version D                                                                                                                  
                                                                                                                                
     Page 2, line 31:                                                                                                           
         Remove "30"                                                                                                            
         Insert "15"                                                                                                            
                                                                                                                                
6:55:30 PM                                                                                                                    
CHAIR COSTELLO  objected for  discussion purposes.  She explained                                                               
that   the   amendment  reduces   the   time   to  maintain   the                                                               
infrastructure  for  a broadband  project  from  30 years  to  15                                                               
years. Earlier in the meeting  the committee heard testimony that                                                               
the lifecycle of  broadband infrastructure is about  15 years and                                                               
that 30 years didn't align with the federal legislation.                                                                        
                                                                                                                                
CHAIR  COSTELLO   removed  her  objection;  finding   no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
6:56:29 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
6:56:49 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting  and voiced support for the                                                               
bill.                                                                                                                           
                                                                                                                                
SENATOR  MICCICHE  commented that  the  federal  money to  extend                                                               
broadband throughout the  state was unprecedented and  HB 363 was                                                               
an important piece to make it happen.                                                                                           
                                                                                                                                
SENATOR  GRAY-JACKSON said  she was  excited about  the bill  and                                                               
what  it   will  mean  to   citizens  in  rural   communities  in                                                               
particular.                                                                                                                     
                                                                                                                                
6:57:55 PM                                                                                                                    
SENATOR  MICCICHE   moved  to   report  the   [Senate]  committee                                                               
substitute for HB  363, work order 32-LS1527\D,  as amended, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
6:58:11 PM                                                                                                                    
CHAIR  COSTELLO found  no  objection and  SCS  CSHB 363(L&C)  was                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 

Document Name Date/Time Subjects
HB 363 v. W.PDF SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Sponsor Statement.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Sectional Analysis v. W.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Explanation of Changes.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Fiscal Note 3379 - DCCED.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 State of Alaska NTIA Comment 02.04.22.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Written Testimony received by 5.5.22.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
SB 181 v. G.PDF SL&C 5/11/2022 1:30:00 PM
SB 181
SB 181 Sponsor Statement.pdf SL&C 5/11/2022 1:30:00 PM
SB 181
SB 181 Sectional Analysis v. G.pdf SL&C 5/11/2022 1:30:00 PM
SB 181
SB 181 Explanation of Changes v. B to v. G.pdf SL&C 5/11/2022 1:30:00 PM
SB 181
SB 181 Fiscal Note 2360 - DCCED.pdf SL&C 5/11/2022 1:30:00 PM
SB 181
SB 237 v. A.PDF SL&C 5/11/2022 1:30:00 PM
SB 237
SB 237 Hearing Request 4.15.22.pdf SL&C 5/11/2022 1:30:00 PM
SB 237
SB 237 Fiscal Note 345 - DOL.PDF SL&C 5/11/2022 1:30:00 PM
SB 237
SB 237 Letter of Support AK Surgery Center.pdf SL&C 5/11/2022 1:30:00 PM
SB 237
SB 237 Written Testimony as of 4.24.22.pdf SL&C 5/11/2022 1:30:00 PM
SB 237
SB 232 v. A.PDF SL&C 5/11/2022 1:30:00 PM
SB 232
SB 232 Sponsor Statement.pdf SL&C 5/11/2022 1:30:00 PM
SB 232
SB 232 Sectional Analysis v. A.pdf SL&C 5/11/2022 1:30:00 PM
SB 232
SB 232 Fiscal Note 345 - DOL.pdf SL&C 5/11/2022 1:30:00 PM
SB 232
HB 363 Work Draft v. D.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Shawn Williams Written Testimony 5.11.22.pdf SL&C 5/11/2022 1:30:00 PM
HB 363