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Minutes for HB2563 - Committee on Energy, Utilities and Telecommunications
Short Title
Requiring broadband providers to contribute to the Kansas universal service fund and authorizing disbursements from such fund to promote broadband development.
Minutes Content for Mon, Feb 5, 2018
Chair Seiwert opened the hearing.
Nick Myers, Assistant Revisor of Statutes presented a brief of the bill. (Attachment 1) This bill would require any company that provides broadband internet services to contribute to the Kansas Universal Service Fund (KUSF) based upon the company's in-state revenues generated from the provision of broadband internet services. Additionally, the bill would require internet content providers that generate $500,000 or more of in-state revenues to contribute to the KUSF. He stood for questions.
Proponent testimony was presented by Rep Tom Sloan. (Attachment 2) Rural residents lack the same broadband opportunities as urban residents because of the high cost to serve low population density areas. The bill opens the discussion about how broadband can be achieved financially. The technologies exist to provide ubiquitous connectivity. He stood for questions.
The Chair closed the proponent portion of the hearing. The Chair temporarily closed the hearing. The Chair subsequently re-opened the hearing.
Opposition testimony was presented by John Idoux, Kansas Government Affairs Director, CenturyLink. (Attachment 3) He indicated that the bill (1) fails to promote broadband development, (2) creates a state broadband grant fund that lacks proper structure and (3) advances a new state program that will certainly result in prolonged legal challenges. Legislating a poorly structured state broadband fund is not in the public interest and will create a false hope for rural broadband availability. For these reasons, CenturyLink urged the Committee to reject the bill. He stood for questions.
Opposition Testimony was presented by Catherine Moyer. (Attachment 4) Her testimony indicated that she found it ironic that while we are discussing ways to improve broadband service in our rural areas, the bill proposes to reduce funding for one program, KUSF, that focuses on providing quality service to the rural areas of our state. She stood for questions.
Written only opposition testimony was provided by Patrick Fucik, National Director, State Legislative Affairs, Sprint. (Attachment 5)
The Chair closed the opponent portion of the hearing.
Written only neutral testimony was provided by John Federico, President, Kansas Cable Telecommunications Association (Attachment 6) and Christine Aarnes, Chief of Telecommunications, Utilities Division, Kansas Corporation Commission (KCC). (Attachment 7)
The Chair closed the neutral portion of the hearing. The Chair closed the hearing.
