Brief ⁽¹⁾

Senate Sub. for HB 2035 would establish a broadband technology-based network called KAN-ED for schools, libraries, and hospitals. The bill includes the following provisions:

Participating Schools, Libraries, and Hospitals. Eligible network participants would include: school districts; school district interlocal cooperatives; school district cooperatives; accredited nonpublic schools; Kansas independent colleges; the Regents universities; Washburn University; community colleges; technical colleges; area vocational schools; area vocational-technical schools; public libraries; regional library systems; and licensed Kansas hospitals.

Purpose of the KAN-ED Network. The stated purpose of the KAN-ED network is to operate and maintain a broadband technology-based network to which schools, libraries, and hospitals may connect for broadband Internet access and intranet access for distance learning.

Restrictions on the KAN-ED Network. The network would be assembled from facilities owned or constructed by the private sector. Moreover, existing contracts could not be abrogated for telecommunications services and Internet services provided through this network to schools, libraries, and hospitals. The bill also prohibits the network from offering switched voice access and transmission of voice over Internet or voice over Internet protocol (except to the extent needed to provide interactive two-way video service).

Governance of the KAN-ED Network. The Information Technology Executive Council (ITEC), through the Chief Information Technology Architect, would have ultimate responsibility for governance of the network. ITEC is the senior information technology council for the state. ITEC falls administratively under the umbrella of Department of Administration. It is composed of 17 members--the Secretary of Administration who serves as chairman; two cabinet agency heads; one noncabinet agency head; the Director of the Budget; the Executive Chief Information Technology Officer; the Legislative Chief Information Technology Officer; the Judicial Chief Information Technology Officer and the Judicial Administrator of the Kansas Supreme Court; the Executive Director of the Kansas Board of Regents; the Commissioner of Education; one representative of cities; one representative of counties; the Network Manager of the Information Network of Kansas (INK); and three representatives from the private sector who are chief executive officers or chief information technology officers. The Chief Information Technology Architect is a nonvoting member of the council. The two cabinet agency heads, the noncabinet agency head, the representative of cities, the representative of counties, and the representatives from the private sector are appointed by the Governor for a term not to exceed 18 months. The members receive no compensation, subsistence, or mileage beyond what their respective agencies allow.

ITEC would be responsible for contracting for the creation and maintenance of the network. These contracts would be let by competitive bidding according to state statute. The Division of Information Systems and Communications (DISC) would provide staff and other resources necessary for the development and maintenance of the network. The bill would also create the KAN-ED Advisory Board to advise ITEC and DISC on technical, content, and policy issues to ensure that the KAN-ED network benefits from a broad spectrum of experience and expertise.

KAN-ED Advisory Board. A board consisting of 11 members would be established to advise ITEC and DISC regarding the development of this network. The membership would include: the Commissioner of Education or designee; the State Librarian or designee; the Chief Executive Officer of the Board of Regents or designee; the Chief Information Technology Architect or designee; three members from the telecommunications or cable communications industries appointed by the Governor (one member to represent a small telecommunications service provider, one member to represent a large telecommunications service provider, and one member to represent the cable industry); one member representing hospitals appointed by the Governor; three members representing elementary and secondary education appointed by the Governor. The board could appoint such other advisory committees as necessary. Members of these additional committees would be entitled to mileage and expenses in accordance with state law.

Responsibilities of ITEC. ITEC, with technical support from DISC and advice from the KAN-ED Advisory Board, would be responsible for planning, implementing, and administering all aspects of the network. These responsibilities would include the following:

• •Develop a plan to ensure that all institutions participating in the network have broadband Internet access and access to distance learning. ITEC would determine the standards for both quality and affordability. ITEC could request and receive assistance from any participating institution, the Kansas Corporation Commission, any other state agency, or any affected telecommunications or cable provider to gather the necessary data to implement such a plan. ITEC would be required to develop a methodology for updating and validating any data collected for periodic revisions of such a plan and standards.
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• •Establish technical standards for network operation and maintenance.
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• •Determine the appropriate method of monitoring of the network's operations and the appropriate method or methods of increasing capacity on the network to accommodate changes in the content demands of participating institutions.
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• •Identify any potential regulatory impediments to implementation of the network and propose measures to address those impediments.
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• •Receive state appropriations and gifts, donations, contributions, and grants from any source. These moneys would be credited to the KAN-ED fund established in the bill. Expenditures from that fund would be subject to appropriations.
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• •Assess the need of network participants for full-motion video connectivity. Based on its findings, ITEC could develop a plan to provide such connectivity. The plan could require users of such connectivity to bear part of its cost.
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Reporting Requirement. ITEC would be required to publish an annual report, to be presented to the Legislature, Governor, and the Department of Education. This report would include a financial audit, an account of how the KAN-ED network's statutorily-prescribed purpose has been realized, and recommendations on changes needed for ITEC and state government activities to better address that purpose. ITEC would also be required to submit to the Governor and the Legislature annually a recommendation for an appropriate funding level for the network.

Effective Date of Legislation. The bill would take effect upon publication in the Kansas Register.

Background

The Senate Committee of the Whole amended the bill to place the authority to appoint other advisory committees under the KAN-ED Advisory Board as opposed to ITEC.

The Senate Committee recommended a substitute for HB 2035. This substitute changes the bill in several areas, the most significant of which is the governance structure of the KAN-ED network. Where the original bill would have created a new agency called KAN-ED, governed by the KAN-ED board, the Senate substitute provides for governance of the network by the already

existing ITEC with assistance from DISC and advice from the proposed KAN-ED Advisory Board.

The Senate substitute bill also:

• •Eliminates mandatory implementation dates for the network;
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• •Adds two additional representatives of elementary and secondary education to the KAN-ED Advisory Board and specifies that of the three members representing the industry, one represent a small telecommunications service provider, one represent a large telecommunications service provider, and one represent the cable industry;
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• •Adds prohibitions against the network offering switched voice access, and transmission of voice over Internet or voice over Internet protocol; and
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• •Makes a variety of technical changes.
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The original bill, HB 2035, was recommended by the State Education Technology-Based Network Task Force. This 15-member task force was established in SR 1848, which was adopted on April 28, 2000. The Task Force's report is included in the Kansas Legislative Research Department's publication, Committee Reports to the 2001 Legislature, and also may be accessed from the Department's website.

The House Committee on Utilities amended the bill to include as network participants Kansas independent colleges and Washburn University. The Committee further amended the bill to authorize the KAN-ED Board to request and receive assistance from any state agency in gathering the necessary data for development of a network plan.

Proponents of the bill included: the Commissioner of Education; a spokesperson for the Kansas National Education Association and the Unified School Finance Coalition; a spokesperson for the Kansas Cable Telecommunications Association; the President of the Kansas Telecommunications Industry Association; two Task Force members from Sprint and Pioneer Communications; and the Executive Director of the Kansas Independent College Association. Written testimony in support of the KAN-ED proposal was submitted by the Senior Vice President of the Kansas Hospital Association. There were no opponents.

The Governor recommended $500,000 from the State General Fund in the Kansas State Department of Education's budget to assess and clarify existing bandwidth capacity and the needs of the education community.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi