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Committee hears HB 650 to limit private‑activity broadband bonds to unserved areas; bill tabled
Summary
Rep. Caleb Hinkle told the House Energy committee HB 650 would expressly allow private industry activity bonds to fund broadband in unserved and underserved parts of Montana while protecting private providers from taxpayer‑backed overbuilding. Supporters said the bill directs scarce financing to where it’s needed; opponents raised market‑distortion and financial risk concerns. The committee later voted to table the bill.
Representative Caleb Hinkle opened testimony for House Bill 650, saying the bill clarifies state law to explicitly permit private‑industry activity bonds for broadband projects in unserved and underserved communities and to prevent taxpayer‑backed financing from being used to overbuild areas already served by private providers. “Montanans deserve access to reliable, high‑speed internet no matter where they live,” Hinkle said, adding the measure aims to focus public financing where the market has not delivered.
Industry witnesses and policy groups urged support. Melissa Lewis, testifying for Charter Communications and on behalf of BroadbandMT, said the bill “provides a very clear framework on how these bonds can be used, ensuring that the financing tools remain focused on meaningful broadband expansion rather than duplicating or overbuilding existing infrastructure.” Tanner Avery of the Frontier Institute and the Montana Taxpayers Association’s witnesses described past local government projects where bond‑backed initiatives failed to meet projections and argued safeguards are needed to protect taxpayers and preserve private investment incentives.
Opponents included individual commenters who questioned whether expanding high‑speed internet is an unalloyed public good; one opponent argued more broadly about cognitive impacts of high‑speed internet. Informational witnesses and committee members pressed for technical clarifications about definitions of “unserved” and “underserved,” and how the bill would interact with existing federal and state broadband programs.
Committee members asked for statutory cross‑references and for staff to supply cited definitions. Hinkle and proponents said the bill does not block local governments from bonding for broadband but channels limited bond authority to areas that lack adequate service.
After questions and discussion, the committee considered motions and ultimately voted to table the bill. The tabling motion carried by recorded voice/roll calls in committee, leaving HB 650 without a committee do‑pass recommendation at this time.
Next steps: HB 650 was tabled in committee; sponsors and advocates may request follow‑up materials and clarifying amendments if they revive it in a future session.
