SENATE BILL NO. 140 "An Act relating to funding for Internet services for school districts; and providing for an effective date." 9:08:16 AM MARIDON BOARIO, STAFF, SENATOR LYMAN HOFFMAN, introduced the legislation. She read from the Sponsor Statement (copy on file): SB 140 increases broadband share for eligible schools from 25 megabits per second (Mbps) to 100 Mbps of download speed and provides funding to help those schools reach 100 Mbps through the School Broadband Assistance Grant (BAG). The Alaska School Broadband Assistance Grant (BAG) program was created to assist schools to increase internet download speeds. Established in 2014 by the Alaska State Legislature, this grant originally allowed schools to reach download speeds of 10 Mbps. In 2020, the State Legislature revised the statute to help schools reach 25 Mbps download speeds. SB 140 seeks to increase the download speeds to 100 Mbps. Co-Chair Olson asked Ms. Boario to slow down. Ms. Boario continued: Schools that qualify for a discounted rate for internet services under The Universal Service Administrative Company, Schools and Libraries Program, commonly known as "E-rate," are eligible for the School Broadband Assistance Grant (BAG). The E-rate program provides discounts of up to 90 percent to help eligible schools and libraries obtain affordable broadband. New and improved technologies and increases to internet services have allowed for more and faster delivery of internet services. Because the cost of internet in some rural districts has decreased, the annual internet costs have fallen below benchmarks established by state law. To allow school districts to utilize these advances, SB 140 will increase the minimum requirement of Mbps from 25 to 100 which will increase the amount of Broadband Assistance Grants (BAG) to help school districts reach increased download speeds. Increasing the funding available through the BAG program in future years will allow schools to leverage more E-Rate funds to bring Alaskan schools in line with national standards for broadband connectivity. In 2023, 151 Alaskan schools in 27 school districts benefited from the school BAG awards. The funding leverages federal E-rate funds at approximately 8:1. The program allows for up to 9:1 based on a formula for free and reduced lunch calculation by district. 9:10:15 AM Senator Kiehl wondered whether a district was able to get help with the high cost of maintenance. Ms. Boario replied that the district would still qualify for the discount through the federal government. Senator Kiehl wondered whether the state provided any partial match to that discount. Ms. Boario replied in the negative. Co-Chair Hoffman noted that there had been some questions about the fiscal note, and remarked that the committee may want to change the effective date. He stressed that the intention was not to implement it in the current school year. Co-Chair Olson wondered whether the administration supported the bill. Co-Chair Hoffman replied that the department could respond to that question. 9:13:59 AM Co-Chair Olson OPENED public testimony. 9:14:31 AM CHRISTINE O'CONNOR, ALASKA TELECOM ASSOCIATION, JUNEAU, testified in support of the bill. 9:16:58 AM HEIDI TESHNER, SELF, ANCHORAGE (via teleconference), discussed the fiscal note for the bill. Co-Chair Olson wondered whether the administration was in favor of the bill. Ms. Teshner replied that the administration was in favor of adequate education for students. 9:18:07 AM LACEY SANDERS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, discussed the fiscal note. 9:19:29 AM DR. AMY PHILIPS CHAN, DIRECTOR, LIBRARY AND ARCHIVES MUSEUM, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, introduced herself. Senator Wilson wondered whether the Lower Yukon School District needed assistance. Ms. Teshner agreed to provide that information. 9:22:40 AM DR. LISA PARADY, EXECUTIVE DIRECTOR, ALASKA COUNCIL OF SCHOOL ADMINISTRATORS, spoke in support of the bill. 9:25:52 AM LON GARRISON, EXECUTIVE DIRECTOR, ASSOCIATION OF ALASKA SCHOOL BOARDS, spoke in support of the legislation. 9:28:02 AM ARIEL BURR, QUINTILLION, ANCHORAGE (via teleconference), testified in support of the bill. 9:30:31 AM JIM WILSON, SUPERINTENDENT, UNALASKA SCHOOL DISTRICT, UNALASKA (via teleconference), testified in support of the legislation. 9:32:30 AM WILLY KEPPEL, SELF, QUINHAGAK (via teleconference), testified against the legislation. Co-Chair Olson CLOSED public testimony. 9:36:06 AM AT EASE 9:39:35 AM RECONVENED SB 140 was HEARD and HELD in committee for further consideration.