HOUSE BILL NO. 193 "An Act relating to funding for Internet services for school districts; and providing for an effective date." 2:26:55 PM REPRESENTATIVE BRYCE EDGMON, CO-CHAIR, HOUSE FINANCE COMMITTEE, SPONSOR, reviewed that the bill that would allow for improved internet services for schools qualifying for the federal E-rate across the state. The E-rate program flowed down through the federal Communication Commission Universal Services Fund to the state broadband programs. The federal matching rate for Alaska was $8 to $9 for every state dollar put forward. He explained the program got its start in Alaska with the state Broadband Assistance [Grant] (BAG) program put into law in 2014 to implement a speed of 10 megabytes [megabits] per second. For context, he referenced individuals in the Capitol Building who could not access their internet recently. He had been told their current speed was about 5 megabytes per second. He asked members to imagine how slow 10 megabits would be. He relayed that in 2020 the legislature upped the 10 megabits per second threshold to 25 megabits per second. The bill proposed to increase the number to 10 megabytes. Co-Chair Edgmon asked committee members to keep in mind that the committee heard a bill setting up the Alaska Broadband Office, the advisory committee, and establishing the framework in statute to open opportunities for a massive amount of incoming federal money to provide high speed, affordable, and equitable broadband services to all user groups across the state. The current bill before the committee addressed the numerous schools hampered by slow internet without the ability to do videoconferencing, standardized testing, basic emails and coursework. The bill proposed to increase the threshold from 25 megabits per second to 100 megabits per second. He was told there would be a bill from the other body possibly coming to the committee soon. The intent of the current hearing was to explain the big picture to the committee. 2:30:47 PM Representative Coulombe stated that she had chaired the Department of Education and Early Development subcommittee and it was obvious the upgrade needed to take place. She noted schools were really struggling. She observed that a backup document primarily showed GCI and ACS [as service providers]. She asked if Starlink could be used with the grants or if the BAG program was limited to certain providers. LAIB ALLENSWORTH, STAFF, REPRESENTATIVE BRYCE EDGMON, replied that the contracts were individually bid upon by school districts and districts were able to choose their provider. He was not certain about Starlink's involvement and whether it had the capacity to provide the level of service provided for a school district. Co-Chair Edgmon added that the program would provide the flexibility to work with GCI or ACS and to ensure the 100 megabits per second threshold included download speeds (the signal coming to the school) and upload speeds (the signal leaving the school). He stated that perhaps in some cases Starlink could provide the service, but there were other instances where GCI and ACS would provide the service. Representative Hannan was startled to learn the specific download rate was set in statute. She reasoned that the statute would need to be updated every couple of years because no one decreased in speed needs. She recalled as a teacher when there had been mandatory state testing conducted online, but schools had been unable to plug their students in on the same day or time. She supported and believed faster internet and a grant program were needed. She asked if there was a mechanism to avoid having to make a statutory change every two to four years. She wondered if the adjustment could be made via regulation and grants in the budgetary process. Co-Chair Edgmon replied that ideally there would be fiberoptic cable available in the next several years in the middle and final mile capacity to schools far and wide. He remarked there was a fiscal note attached to the bill that was eyepopping in number, but it was a number that built in all of the schools qualifying for the program if they could get infrastructure in place. He considered the current E- rate program as a bridge program so that going into the future there should not have to be numerous iterations of the bill going forward. He thought it could be the case for some small schools that could not take advantage of the federal funding coming in through the federal Infrastructure Investment and Jobs Act (IIJA). 2:34:45 PM Co-Chair Foster noted that Representative Stapp had joined the meeting. Representative Galvin stated the topic was relatively new to her, although she was familiar with E-rate and its importance to rural Alaska. She believed the legislation referred to more than 20 school districts. She presumed they were school districts that had historically used and needed extra support for internet. She asked if her statement was accurate. Co-Chair Edgmon replied affirmatively. He explained that much of the internet had been satellite driven or through microwave transmission and perhaps fiberoptic in some smaller instances for online school. He elaborated that fiberoptic cable was finding its way down the Yukon- Kuskokwim (YK) region in the next couple of years. He added that Quintillion line was being laid around the state up north and in Co-Chair Foster's region. He remarked that it would be fiber optic driven and a lot of schools would be able to enjoy the same amount of broadband that schools in urban Alaska provide. He had been told recently that the broadband used in the Capitol Building was several hundred megabytes per second. The bill talked about getting a school (e.g., Nome-Beltz High School with 500 plus students) to maybe 100 megabytes. He stated there was still a lot of catching up to do. He was optimistic because hopefully in the future it would not be as funding source challenged as it was in the past. 2:36:52 PM Representative Galvin surmised the bill aimed to ensure the minimum speed was met in the school districts and that funding was available. Co-Chair Edgmon answered, "To qualify through the E-rate program." He added there may be other means that schools used. He explained they were talking about a lot of schools across the state. He relayed that his staff could provide an exact number. Representative Galvin underscored the importance of the issue. She knew that many districts would like to participate in opportunities for online learning, but after signing up they did not have the bandwidth to make it happen. She appreciated providing a bit more equity for all of Alaska's students. Co-Chair Foster noted Co-Chair Johnson had joined the meeting. Representative Cronk looked at the fiscal note and asked if the installation of fiber optic would eliminate or decrease the need for the funds in the note. Co-Chair Edgmon answered that the number [in the fiscal note] projected outward as if every school qualified for the federal E-rate program and had the infrastructure to participate in the delivery of service. He relayed that a provider had cautioned earlier in the day that it would take time. The number was at the ceiling of what could be out there. In the meantime, fiber optic cable was going through the Dillingham region and extended up through the YK region and Bethel area. He remarked it would take some of the schools off the list that would otherwise be competing for the federal E-rate money. 2:39:01 PM Co-Chair Edgmon thanked the committee for hearing the bill. He stressed the importance of the issue and hoped and looked forward to an additional hearing perhaps of the Senate bill. HB 193 was HEARD and HELD in committee for further consideration. 2:39:49 PM AT EASE 2:42:45 PM RECONVENED