Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Broadband Access And Financing topic
No spam. Unsubscribe anytime.
Committee hears bill to limit public broadband bonds to unserved, underserved areas
Summary
Rep. Caleb Hinkle told the Senate Energy Committee that House Bill 650 would reserve publicly backed broadband bond financing for unserved and underserved communities to avoid taxpayer‑funded overbuilding.
Representative Caleb Hinkle presented House Bill 650 to the committee, saying the bill would authorize public bonding for broadband facilities but restrict the use of those bonds to unserved and underserved areas so taxpayer‑backed finance does not duplicate existing private networks. Hinkle said the measure aligns with a goal to prioritize scarce public financing for locations lacking reliable high‑speed service.
Supporters included large incumbent providers, the Montana Chamber of Commerce and taxpayer groups who argued public financing should not be used to overbuild areas already served by private industry. The Montana Taxpayers Association and Charter representatives urged using the Connect Montana definitions so federal and state grant programs coordinate and taxpayer dollars focus on first‑time connections.
Several community and not‑for‑profit broadband providers, notably Yellowstone Fiber, opposed the bill as drafted. Yellowstone Fiber described its business as a not‑for‑profit that has used industrial revenue bonds and private capital to expand fiber in Bozeman. Its chairman, Bruce Parker, told the committee the bill would effectively bar similar providers from seeking bond financing to expand into areas the bill would classify as "served" under the proposed standards, even where demand and higher quality service exist.
Department of Administration Director Misty Anne Giles explained the state's larger BEAD (Bipartisan Infrastructure Law / BEAD) allocation and the Connect Montana definitions; she said federal rules prioritize unserved locations and the state will follow federal standards in awarding BEAD funds. Committee members asked how HB 650 would interact with federal programs; Giles said the statute cited in the bill already aligns with federal minimum standards and that BEAD rules prohibit overbuilding federally funded locations.
During the hearing, proponents and opponents negotiated a "friendly amendment" to ensure satellite service and other defined low‑capacity providers are treated consistently with Connect Montana definitions; after review the sponsor said the amendment could address some opponents' concerns. The committee closed the hearing without taking a final vote that day.
