SB 82-BROADBAND DISCOUNTS FOR SCHOOLS                                                                          
                                                                                                                                
8:00:49 AM                                                                                                                    
CHAIR  STEVENS announced  the consideration  of SB  82. He  noted                                                               
that CSSB  82, version O, was  before the committee. He  said the                                                               
fiscal note was updated and is now about $11 million.                                                                           
                                                                                                                                
8:01:06 AM                                                                                                                    
DAVID SCOTT,  Staff, Senator Donny  Olson, explained  the changes                                                               
in version O  of SB 82 on  behalf of the sponsor.  He stated that                                                               
one-third of  all schools  in Alaska are  below 10  mega-bits per                                                               
second,  roughly  170  schools.  The  fiscal  note  reflects  the                                                               
expense of roughly $7.3 million to  bring those schools up to the                                                               
minimum  of 10  mega-bits per  second. Under  the current  E-rate                                                               
Program, for every dollar spent  in Alaska, the Universal Service                                                               
Fund  pays  $4.  That  totals about  $29  million  leveraged  for                                                               
additional internet services for schools.                                                                                       
                                                                                                                                
He stated that  the increase in broadband is  necessary to assist                                                               
with distance delivery courses and  on-line state assessments. He                                                               
concluded  that SB  82 would  bring all  schools in  Alaska to  a                                                               
minimum  level  of internet  service  and  allow them  to  better                                                               
educate Alaska's children.                                                                                                      
                                                                                                                                
8:03:47 AM                                                                                                                    
LES  MORSE,  Deputy  Commissioner, Department  of  Education  and                                                               
Early Development (DEED), answered questions related to SB 82.                                                                  
                                                                                                                                
LINDA THIBODEAU,  Director, Division of Libraries,  Archives, and                                                               
Museums, Department  of Education  and Early  Development (DEED),                                                               
answered questions related to SB 82.                                                                                            
                                                                                                                                
MR.  MORSE  requested  that Ms.  Thibodeau  explain  the  federal                                                               
funding component of the bill.                                                                                                  
                                                                                                                                
MS.  THIBODEAU  explained  that the  E-rate  Program  provides  a                                                               
percentage discount for internet services.                                                                                      
                                                                                                                                
MR.  MORSE  noted  that  federal   dollars  are  not  subject  to                                                               
sequestration.                                                                                                                  
                                                                                                                                
SENATOR HUGGINS asked what percentage E-rate provides.                                                                          
                                                                                                                                
MS. THIBODEAU  replied that  the Alaska  discount ranges  from 60                                                               
percent to 90 percent with an average of 75 percent.                                                                            
                                                                                                                                
CHAIR STEVENS removed his objection.                                                                                            
                                                                                                                                
8:05:59 AM                                                                                                                    
SENATOR DUNLEAVY  SENATOR moved  to report  CSSB 82,  version 28-                                                               
LS0637\O  from  committee  with  individual  recommendations  and                                                               
attached fiscal note.                                                                                                           
                                                                                                                                
CHAIR STEVENS announced that without  objection, CSSB 82(EDC) was                                                               
reported from the Senate Education Standing Committee.