House debate: bill would explicitly allow private activity bonds for broadband in unserved areas

Representative Caleb Hinkle opened the committee hearing on House Bill 650, saying the bill would expressly authorize private industry activity bonds for broadband expansion in unserved and underserved areas of Montana.

Hinkle said the clarification would preserve a level playing field by directing taxpayer‑backed financing to places without adequate service, rather than subsidizing government networks in already served markets. “This bill provides a fair preserves a fair and competitive market that encourages private sector driven broadband expansion,” Hinkle said during the hearing.

Why it matters: Supporters told the House Energy, Technology and Federal Relations Committee the measure would help channel financing to rural and underserved areas, protect private investors and avoid duplicative government overbuilds that can discourage private expansion.

Proponents included Tanner Avery, policy director at the Frontier Institute, who said local government entry into the Internet business has in some cases led to projects that overbuild private networks or fall short of promises. Avery cited Gallatin County as an example, saying a government‑backed project that initially aimed to connect 22,000 homes had connected “barely half” of that target and requested additional bonds. “HB 650 introduces reasonable safeguards to ensure bonding for broadband is directed where it is truly needed,” Avery said.

Melissa Lewis, representing Charter Communications and speaking also on behalf of Broadband MT, said private Montana internet companies already are investing “millions” to expand service and supported the bill’s focus on unserved and underserved areas. Patrick Yawaki, representing Blackfeet, Fort Belknap and Chippewa Cree communities, testified in support, saying broadband is critical for education, health and public services in tribal and rural areas.

Opposition testimony included Timothy Jabs, who said he opposed broader expansion of high‑speed broadband on public‑interest or health grounds; Jabs argued increased Internet speeds change how people process information and expressed concern about societal effects.

Committee questions focused on how the bill defines “unserved” and “underserved.” Melissa Lewis pointed the committee to the bill language that references thresholds (for example, a 100/20 Mbps benchmark was discussed during testimony as the FCC speed standard), and she summarized that the bill directs bonding toward homes and businesses that lack adequate service.

Outcome and next steps: The committee later took procedural action on several bills that day; the formal committee motion to table or otherwise dispose of HB 650 occurred later in the session record (see Votes at a glance). The hearing on HB 650 concluded after public and industry testimony and questions for the sponsor and informational witnesses.