Legislature(2025 - 2026)BARNES 124
02/03/2025 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HJR6 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HJR 6 | TELECONFERENCED | |
| *+ | HB 80 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HJR 6-SUPPORT UNIVERSAL SERVICE FUND
3:16:25 PM
CO-CHAIR FIELDS announced that the only order of business would
be HOUSE JOINT RESOLUTION NO. 6, Urging the United States
Congress to safeguard the Universal Service Fund to ensure
continued funding for essential programs that support critical
broadband and telecommunication infrastructure and services for
low-income rural residents of the state.
3:17:16 PM
AMY EAKIN, Director of Technology, Northwest Arctic Borough
School District, noted that she was speaking on behalf of the
Northwest Arctic Leadership Team (NWALT). She began her invited
testimony by stating that NWALT is comprised of the Maniilaq
Association, the Northwest Alaska Native Association (NANA), the
Northwest Arctic Borough (NWAB), and the Northwest Arctic
Borough School District (NWABSD). She stated that the universal
service fund (USF) was created to ensure that every community
could stay connected to the rest of the world. Since
establishment, USF has become a lifeline for many rural
communities across the nation, including Alaska, and funds
services like broadband for rural hospitals/clinics, Internet
access for schools/libraries, and affordable connectivity for
low-income families. Ms. Eakin asserted that the impacts of
losing USF funds would be "catastrophic." She said Alaska's
broadband infrastructure projects, like NANA's $73 million
initiative to bridge the digital divide in the most remote areas
of Alaska, would be significantly impacted by the loss of USF.
Additionally, she stated that [NWABSD] would lose $19 million,
and the Maniilaq Association would lose over $24 million
annually from the rural health's clinic program. Without the
USF funds, healthcare access would decline, schools would lose
connectivity, and rural economies would decline.
Regarding educational impacts, Ms. Eakin stated that USF has
allowed school districts to improve technological infrastructure
and enable high-quality Internet access in schools, ensuring
that every student, regardless of location, has the opportunity
to participate in digital learning. She stated that without
USF, the 13 schools in the NWABSD would be reduced to
approximately 2 megabytes per second, far below the standard for
households across the country. She emphasized that 2 megabytes
per second would not support essential business or educational
services such as phones, timeclocks, accounting software, or
PowerSchool [a student information system]. She stated that
currently, with USF monies, students can access online virtual
resources, participate in digital classrooms, and collaborate
with other students on digital projects. Teachers can leverage
digital tools to create lessons, provide personal feedback to
students, and foster collaborative learning environments.
MS. EAKIN cited John Hattie's research on Visible Learning,
which stresses the importance of effective teaching practices
and the impact of technology on academic achievement. She
reported that Mr. Hattie's meta-analyses revealed the average
effect size of educational interventions is 0.4, with a higher
effect size indicating more significant impacts on student
learning. She explained that any item scored higher than 0.4
indicates a gain of "more than a year's worth of growth and a
year's worth of time." Ms. Eakin stated that Mr. Hattie found
that student/teacher relationships have an effect size of .57,
underscoring the importance of positive relationships between
educators and their students. She stated that Mr. Hattie's
research emphasized the importance of Internet access for
implementing high-impact teaching strategies. For example,
collaborative learning, with an effect size of .46, is heavily
reliant on digital tools and online platforms to facilitate
student interaction. Additionally, she stated that feedback,
with an effect size of .5, and student self-verbalization, with
an effect size of .58, are greatly augmented by online tools.
MS. EAKIN concluded that USF is a crucial investment in the
future of Alaska's students and communities. She asserted that
USF funding is vital to ensuring that all students, regardless
of geographical location, have the same high-quality educational
opportunities. She urged the committee to support HJR 6 and
consider the profound impacts entailed by a loss of funding.
3:25:37 PM
BOB ONDERS, MD, Medical Director, Maniilaq Association, as an
invited testifier, stated that he has worked for 17 years in
Alaska tribal health systems. He currently practices at the
Maniilaq Health Center, located in Kotzebue, Alaska. He stated
that the Maniilaq Association performs over 1,000 patient-
related visits annually, all of which require online access. He
asserted that USF is essential to providing a high level of
patient care in the Northwest Arctic Region. He stated that,
although the Maniilaq Association still uses historical
[radiotelegraphy] names, broadband and telecommunication
infrastructure have transformed the process.
DR. ONDERS provided the following anecdote, illustrating how
technology is critical to healthcare in rural Alaska. A patient
presented recently with complaints of chest pain in a remote
village. Following guidelines available online, the village
community health aide recorded vitals and transferred them
electronically to an emergency physician in Kotzebue, Alaska,
who authorized a medical evacuation. During the flight, the
physician was able to monitor vitals through Zoom. Dr. Onders
noted that physicians frequently access clinics via Zoom to
provide support and care. An electrocardiogram (EKG) and
radiograph obtained at the emergency department in Kotzebue,
Alaska, were electronically transmitted to a cardiologist and
radiologist in Anchorage, Alaska. The emergency doctor in
Kotzebue continued to follow recommendations, sent via
electronic communications from the cardiologist in Anchorage,
for subsequent EKG and imaging until a second medical evacuation
was authorized to Anchorage. The receiving physician in
Anchorage had all of the records prior to the patient's arrival
via electronic delivery systems, whilst the Maniilaq doctor in
Kotzebue was able to track the patients progress via electronic
delivery systems.
DR. ONDERS concluded that the aforementioned technology-
dependent process occurs for all patients in rural healthcare
settings, from minor issues to major health emergencies. He
offered his support for HJR 6 and urged the committee to shore
up statutory and regulatory foundations, to prevent regression
back to times before telecommunications.
3:30:32 PM
CO-CHAIR FIELDS thanked Dr. Onders and Ms. Eakin for their
testimonies.
3:30:41 PM
REPRESENTATIVE SADDLER asked whether USF is the only source of
funding for Internet service for NWABSD.
3:30:55 PM
MS. EAKIN responded that USF is not the only source of funding.
She stated that NWABSD currently receives $2 million through the
Alaska School Broadband Assistance Grant (BAG). She noted the
rest of the funds were "basic, general funds." In response to
clarifying questions from Representative Saddler, Ms. Eakin
stated the remainder of the funds are received from the state
general fund and totaled a little less than $500,000. She
explained that there is not a lot of local funding.
REPRESENTATIVE SADDLER asked about the funding sources for
Internet connectivity for the Maniilaq Association.
3:32:16 PM
DR. ONDERS responded that the Maniilaq Association is funded
through Indian Health Services and other third-party revenues,
like other health systems, to support Internet availability not
funded through USF.
3:32:29 PM
REPRESENTATIVE SADDLER asked for the total dollar amount not
funded through USF.
3:32:35 PM
DR. ONDERS responded that he did not have that detail.
3:33:02 PM
GARRET SPARGO, Director of Enterprise Architecture, Alaska
Native Tribal Health Consortium (ANTHC), as an invited
testifier, stated that ANTHC is a statewide tribal health
organization that services all 229 tribes and all Indigenous
populations across the state. He stated that ANTHC provides a
wide range of state, public health, and community programs. He
noted that due to approximately [only] 20 percent communities in
Alaska having road access to Anchorage, ANTHC has developed a
unique delivery system that relies heavily on [Internet]
connectivity in order to provide an array of services. He
stated that ANTHC provides specialty care that is not provided
by regional tribal healthcare partners, such as the Maniilaq
Association. Internet connectivity is critical to hospital
operations, including medical imaging, medical record access,
pharmacy lab management, patient communications, and
telemedicine. He noted that, unlike many other states, patients
in Alaska commonly have to fly in small planes to access care,
due to lack of road access. He remarked that a routine follow-
up appointment could require days of travel. He stated that
reliable, high-speed connectivity allows the tribal health
system to avoid unnecessary travel by sending patient data
rather than the patients themselves. Mr. Spargo stated that the
Universal Services Administration Company's (USAC's) rural
healthcare program, whose funds come from USF, provides
subsidies for infrastructure and services to increase
accessibility to healthcare in rural areas of Alaska. Across
Alaska, 22 tribal health organizations use funds from USAC to
provide clinics in 192 communities with secure communications
infrastructure. In total, Mr. Spargo reported, tribal health
organizations and clinics depend on over $193 million in annual
subsidy from USF. He explained that the funding from USF goes
toward guaranteed bandwidth with limited latency and adequate
upload/download speeds, which are necessary to support the wide
medical networks essential for electronic health record systems,
telemedicine, remote patient monitoring, continuing education
for providers, training for community health aide programs,
telepharmacy, teleradiology, videoconferencing, provider and
emergency services, and communication systems.
MR. SPARGO said that prior to USF, patients were forced to
ration network usage and could not schedule concurrent
screenings [receiving a mammogram during a CT scan]. He
asserted that the long-term support of USAC has allowed the
rural healthcare system to grow, and rationing network usage is
a thing of the past. Without funds covering ongoing networking
costs, Mr. Spargo maintained that tribal health partners would
not be able to afford the network and connectivity that enables
modern healthcare delivery. He warned that defraying the
increased costs for connectivity would require a reduction of
staffing and impact clinical services. He concluded that
critical health infrastructure would fully cease operations in
some communities, due to the multi-million increase in
networking expenses. He supported HJR 6.
3:37:58 PM
REPRESENTATIVE COULOMBE asked how many of the 192 communities
are using Starlink.
MR. SPARGO responded that he is unsure of the exact number, but
there are many communities using Starlink, and that he will
follow-up with a written response. He noted that communities
using Starlink do not receive USF funding through
telecommunications programs to pay for Starlink.
REPRESENTATIVE COULOMBE asked whether there was a difference in
consistency between the legacy systems and Starlink.
MR. SPARGO explained that the ability of Starlink to guarantee
network connectivity and performance, historically, has not been
consistent. Starlink does "best effort connectivity," while the
services funded under USF are on dedicated connections.
Additionally, he noted, there are periods of degraded
performance dependent on community use.
REPRESENTATIVE COULOMBE asked why USF is not used for Starlink
costs.
MR. SPARGO offered his belief it has to do with [Starlink's]
inability to guarantee connectivity. He stated that he will
submit a response to the committee afterward.
3:39:54 PM
REPRESENTATIVE SADDLER asked whether satellite communications,
like Starlink, would be a good substitute for fiber optics
communications.
MS. EAKIN answered that NWABSD experienced two quintillion fiber
breakages that significantly affected the NWAB regions. She
noted that [NWABSD] connected Starlink satellites after the
first break. Within one week, a Starlink was damaged by a
student, and the district ordered another one. She noted that
Starlink systems have been a little more reliable since the
first quintillion fiber break. She explained that because of
the harsh weather and conditions, when a satellite is broken,
there are no services. She gave an example, stating that a
broken satellite mounted on the district office cannot be
repaired until the summer due to the icy conditions. She argued
that if they were to rely 100 percent on satellite services and
experienced a break during the winter, they would be out of
service for months. Additionally, Ms. Eakin stated that they do
not have the personnel necessary to support Starlink by
themselves.
3:43:08 PM
DR. ONDERS stated that village clinics have a system of three
redundant backups. Historically, satellite systems have acted
as a third backup. He noted that all village clinics are moving
to Starlink as the backup satellite system. He explained that
the bandwidth necessary for the operations of village clinics
would require multiple Starlinks. He echoed Ms. Eakin's
concerns, voicing that they [Maniilaq Association] have dealt
with broken Starlinks due to harsh weather. He asserted that
the healthcare facilities need a redundant backup system, given
a loss of connectivity could be life-threatening.
3:44:45 PM
REPRESENTATIVE SADDLER stated that he does not presume that
satellites are an appropriate substitute for all legacy systems.
3:45:10 PM
CO-CHAIR FIELDS opened public testimony on HJR 6.
3:45:31 PM
DAVID NEES, representing self, testified during the hearing on
HJR 6. He stated that the library in Cooper Landing, Alaska, is
serviced by TeleAlaska. He shared that he installed a personal
Starlink. He opined that it is good to advocate for funding but
asked committee members what they might do in the event that the
Supreme Court does not turn over the Fifth Circuit Court's
decision, that USF is a tax and therefore unconstitutional.
3:46:57 PM
CO-CHAIR FIELDS, after ascertaining that there was no one else
who wished to testify, closed public testimony on HJR 6.
3:47:01 PM
REPRESENTATIVE SADDLER stated that the decision lies with the
federal court system. He asked what might happen should the
Fifth Circuit Court decision stand.
3:47:32 PM
CHRISTINE O'CONNOR, Executive Director, Alaska Telecom
Association, offered her understanding that there are multiple
possibilities, including: upholding the Fifth Circuit Court
decision; changing the way in which the program is administered;
or declaring USF unconstitutional. Additionally, she offered
her belief that it is unlikely that USF will be declared
unconstitutional. However, in this worst-case scenario, she
warned, there would be catastrophic impacts across all of rural
America, and Alaska would be the first to experience the impact.
3:48:31 PM
REPRESENTATIVE SADDLER asked how that [worst-case scenario]
might affect Alaska's telecommunications industry.
MS. O'CONNOR stated that most, if not all, companies would "go
dark."
3:48:48 PM
REPRESENTATIVE COULOMBE clarified that USF is going to
telecommunication companies and asked what the
telecommunications companies in Alaska might do. She remarked
that many companies, such as General Communications Incorporated
(GCI), have invested a lot of money into the telecommunications
industry in Alaska.
3:49:57 PM
MS. O'CONNOR stated that it would vary from company to company.
The cashflow impacts on every company would be significant. She
stated that half of the telecommunication companies in Alaska
are not-for-profit cooperatives serving hub communities such as
Dillingham or Cordova. Their scope to navigate a challenge of
such magnitude [as the loss of USF] is limited. She offered her
belief that larger companies could absorb impact longer, but
many communities are unable to support the necessary
infrastructure on their own.
3:50:50 PM
CO-CHAIR FIELDS stated that members may act on HJR 6 if they
wish, or the committee could consider the bill again the
following week.
3:51:13 PM
REPRESENTATIVE COULOMBE clarified that this resolution does not
provide a solution but acts as a statement against halting USF.
3:51:39 PM
CO-CHAIR FIELDS explained that HJR 6 was written in such a way
to highlight the importance of USF in Alaska. He explained that
HJR 6 could be used both by the Supreme Court in its
deliberation or, if the federal court ruled in a way that was
damaging to Alaska, by the congressional delegation before
Congress to restore USF.
3:52:24 PM
MS. O'CONNOR stated that the goal is to build awareness [of the
importance of USF] with HJR 6. She argued that immediate action
would be necessary in the worst-case scenario.
3:53:01 PM
REPRESENTATIVE SADDLER asked Ms. O'Connor what decision she
anticipated from the Supreme Court.
3:53:18 PM
MS. O'CONNOR responded that she is "cautiously optimistic." She
stated that there is a lot of groundwork and a brief filed by
the Federal Communications Commission (FCC) that made a very
strong case to overturn the Fifth Circuit Court decision.
Notwithstanding, she acknowledged that the Supreme Court is
taking a fresh look at many old cases. She reiterated that she
is optimistic, but that there are many hard-working people
laying the safety nets.
3:54:32 PM
CO-CHAIR HALL moved to report HJR 6 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HJR 6 was reported out of the House
Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR006A.pdf |
HL&C 2/3/2025 3:15:00 PM |
HJR 6 |
| HJR 6 - Sponsor Statement.pdf |
HL&C 2/3/2025 3:15:00 PM |
HJR 6 |
| HJR 6 Supporting Document - State of AK Amicus Brief.pdf |
HL&C 2/3/2025 3:15:00 PM |
HJR 6 |
| HJR 6 Supporting Document - 2025.01.16 Members of Congress Amicus Brief.pdf |
HL&C 2/3/2025 3:15:00 PM |
HJR 6 |
| HJR 6 - Supporting Document - Letters of Support 2.3.2025.pdf |
HL&C 2/3/2025 3:15:00 PM |
HJR 6 |
| HJR 6 - Universal Service Fund Presentation - 1.24.25 Final.pdf |
HL&C 2/3/2025 3:15:00 PM |
HJR 6 |
| HJR 6 Supporting Document - One-Page Overview.pdf |
HL&C 2/3/2025 3:15:00 PM |
HJR 6 |