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Minutes for HB2701 - Committee on Commerce
Short Title
Establishing the statewide broadband expansion task force.
Minutes Content for Fri, Mar 9, 2018
Chairperson Lynn opened the hearing on HB 2701 and requested Revisor Chuck Reimer to provide an overview of the bill.
Chairperson Lynn recognized John Federico, Kansas Cable Telecommunications Association, who provided testimony in support of the bill. There are concerns about inadequate broadband services in different areas of the state. It is time to move forward with a plan for Kansas to expand broadband in areas of the state that are currently unserved or underserved. According to information contained in the FCC's Annual Broadband Progress Report, the national average of the population without access to broadband is 10 percent. In Kansas, the average is 15 percent. According to the FCC, the lack of access to suitable broadband is not just a "rural" problem, as 5 percent of the population in urban areas in Kansas are without options versus 4 percent nationally. The mission of the statewide task force is appropriate to move the state forward with the semblance of a plan for the 2019 Legislature to consider. (Attachment 1)
Chairperson Lynn recognized Alex Orel, Kansas Electric Cooperatives, Inc. (KEC), who provided testimony in support of the bill. KEC is a voluntary membership association that serves 28 not-for-profit distribution electric cooperatives and three generation and transmission electric cooperatives in Kansas. Rural Kansans are eager for access to broadband in order to improve quality of life, bring in economic development opportunities, meet the needs of local business, and provide service for schools to expand educational opportunities. Electric cooperatives can bring important economic and other resources to the broadband effort. KEC membership operates close to 90,000 miles of poles and wire in rural Kansas and broadband expansion often engages pole attachment agreements between parties. There are unique issues with pole attachment and easement rights that need to be considered, which is another reason why it is appropriate and valuable to have the electric cooperative community represented on the task force. (Attachment 2)
Chairperson Lynn recognized Mike Bosch, RG Fiber, who provided testimony in support of the bill. RG Fiber is an entrepreneurial venture that provides internet, phone and video services via an all-fiber network. Since 2014, the company has invested millions to bring gigabit internet to businesses and residents in Baldwin City, rural Douglas County, Eudora, and Lawrence, Kansas. A 21st-century communications infrastructure is critical to the future of our small-town communities and deployment of reliable, extremely fast, and affordable networks can not happen soon enough. RG Fiber supports the bill and strongly advises the Committee to add an 18th voting member to represent the hard-working innovators and entrepreneurs who are bringing gigabit-capable broadband via an all-fiber network. (Attachment 3)
Chairperson Lynn recognized Daniel Friesen, IdeaTek Telecom, who provided testimony in support of the bill. Providing broadband and voices services, IdeaTek has been headquartered in Buhler, Kansas for nearly 15 years, and using private investment has built over 2,400 miles of fiber optic infrastructure across the state. He shared the following information:
- Kansas ranks 40th in the Union for overall connectivity.
- Over a half million Kansans have no access to a fast broadband connection.
- Another half a million Kansans only have access to a single wired provider, with no options to switch.
- Nearly 200,000 Kansans have no option of a wired provider today.
- 29 percent of Kansas farms do not have internet access today and 8 percent are still on dial-up.
Mr. Friesen suggested the state's lack of progress in broadband connectivity can be attributed to the following:
- Failure to invest in long term solutions.
- Failure to support competition under the auspices that monopolies are best for rural and remote service.
- A lack of cooperation between our different government agencies and providers.
- A lack of creativity in support programs to make rural service business models sustainable.
This bill is an important first step in starting a real and open conversation about the issues facing broadband deployment in Kansas. Mr. Friesen encouraged the Committee to include a voting seat on the task force for rural independent competitive fiber providers. (Attachment 4)
Written only testimony in support of the bill was submitted by:
Melissa Wangemann, General Counsel and Director of Legislative Services, Kansas Association of Counties (Attachment 5)
John Donley, Kansas Farm Bureau (Attachment 6)
Doug Taylor, Legal Counsel, The League of Kansas Municipalities (Attachment 7)
Ernie Kutzley, Advocacy Director, AARP Kansas (Attachment 8)
Andy Schlapp, Executive Director of Operations, Wichita State University (Attachment 9)
Leah Filter, Kansas Association of School Boards (Attachment 10)
Josh Powell, Legislative and Public Outreach Coordinator, Kansas Department of Transportation (Attachment 11)
Mandy Roe, Director of Member Services, Kansas Cooperative Council (Attachment 12)
There was no testimony submitted in opposition to the bill.
Chairperson Lynn recognized Catherine Moyer, Pioneer Communications, who provided testimony neutral to the bill. Ms. Moyer appeared on behalf of the Kansas Rural Independent Telecommunications Coalition (KRITC) and the State Independent Telephone Association of Kansas (SITA). The following three concerns were listed:
First, we do not know what we have, or do not have, for broadband deployment in Kansas. There are many broadband service providers in Kansas and most measure broadband deployment and availability differently. None of the maps concerning broadband deployment and availability are correct. We need accurate data in order to determine what Kansas needs.
Second, there are several sources of federal funding that are just beginning to make their way to Kansas, or that will be making their way soon. How does this money, and substantial investment, change the landscape of broadband deployment and availability in Kansas?
Third, the task force would be required to submit a report concerning the work and recommendations in January 2019. Nine months is a short amount of time during which to craft recommendations and there is no defining direction for what the recommendations should be.
In keeping with federal standards for communications support, any new incentive program must be sufficient and predictable. Broadband providers will not be persuaded to invest in expensive facilities if state policy is not stable and reliable. In order to be productive, this task force needs the policy framework in which to work to submit a recommendation that will be beneficial. No discussion will be accurate until there is a complete picture of where Kansas stands today, and what the anticipated influx of federal dollars means to broadband deployment in the near future. (Attachment 13)
Chairperson Lynn recognized Patrick Fucik, Sprint, who provided testimony neutral to the bill. Mr. Fucik indicated Sprint is neutral to the bill but could support the bill with a few minor changes. He reviewed the changes. He reiterated Sprint supports efforts to encourage broadband expansion in all states and stands ready to work with policy makers in Kansas on whatever course is determined to be the best path forward to encourage broadband deployment in Kansas. (Attachment 14)
Written only testimony neutral to the bill was provided by:
Mike Koss, Attorney, City of Overland Park (Attachment 15)
John Idoux, Kansas Government Affairs Director, CenturyLink (Attachment 16)
Chairperson Lynn stated the hearing would remain open and would continue at a Senate Commerce Committee meeting the following week. The meeting was adjourned at 9:33 a.m. The next meeting is scheduled for March 12, 2018.
