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Minutes for HB2618 - Committee on Energy, Utilities and Telecommunications
Short Title
Establishing a state broadband grant program under the department of commerce to encourage the deployment of broadband in the state.
Minutes Content for Thu, Feb 13, 2020
Chairperson Seiwert opened the hearing on HB2618.
Heather O'Hara from Legislative Research provided an overview of the work process of the Statewide Broadband Expansion Task Force.
Matt Sterling, Revisor's Office, provided an overview of the bill and responded to questions from the Committee. (Attachment 1)
Chairperson Seiwert introduced the Co-Chair for the meeting, Representative Adam Smith (Rural Revitalizaton Committee Chair), who spoke briefly about the significance of broadband service to rural Kansas.
Proponents who spoke in favor of the bill included:
Patty Clark, Department of Commerce, expressed appreciation for the opportunity to comment, the opportunity to work on the task force in a collaborative approach on a far reaching, complex and complicated subject. Best practices in other states, learned through the process, can help inform the design, development and implementation of a broadband grant program. The challenge process in the program helps ensure that funds flow effectively and cost efficiently. Development of a scoring matrix in the application process will add to the transparency in the application and administration of the grant program and performance accountability of the grantees. Awards should be outcome-based, provide details regarding premises served, timeliness of construction and requisite actions Commerce should take if performance measures are not met. The Conferee responded to questions from the committee about implementation. The bill will allow Department of Commerce to apply for funding for grants and appropriations. (Attachment 2)
Catherine Moyer chaired the subcommittee on funding and mapping. She was the Kansas Rural Independent Telecommunication Coalition (KRITC) representative on the task force. Broadband is a necessity, establishing an office and program will allow Kansas to apply for and receive federal funds currently not being received. The broadband grant program fits well with the FORWARD bill (HB2588) which addresses infrastructure issues. The conferee asked for favorable passage of the bill out of committee. (Attachment 3)
Erik Sartorius chaired the task force subcommittee on deployment. Mr. Sartorius spoke as a proponent of the bill saying broadband service is long overdue in Kansas. The reality is that broadband can determine whether a home-based business can survive, data critical to efficient agriculture production can be transferred, telemedicine can reach out to those lacking a local specialist, and students can take classes otherwise unavailable to them. (Attachment 4)
Molly Kocour Boyle sat on third subcommittee looking at the opportunities and funding mechanisms to support broadband expansion. The subcommittee identified state general funds as the appropriate mechanism to start the program under the Department of Commerce. AT&T continues to invest in operations in Kansas through participation in the Connect America Fund (CAF) and it's successor the Rural Digital Opportunity Fund (RDOF). (Attachment 5)
Doug Shepherd sat on task force subcommittee chaired by Eric Sartorius. Kansas Electric Cooperative (KEC) recognizes broadband is an economic and quality of life issue but will require public funds and central leadership in the Department of Commerce. (Attachment 6)
John Idoux, CenturyLink, spoke as a proponent having served on the mapping and funding subcommittee. A properly structured state broadband grant program would need to serve areas not currently served or receiving funding from other sources, and would not compete with private investment in the marketplace. It is a misnomer that it is a one-time build, there is the initial deployment as well as ongoing maintenance. Some parts of the state won't be able to benefit if there is a 50% cap based upon density. The Department of Commerce needs flexibility to adjust the cap. The conferee responded to questions from the committee. (Attachment 7)
Chairperson Seiwert referenced written-only testimony had been submitted, and each conferee who submitted written-only testimony was offered the opportunity to speak for one minute.
- Colleen R. Jamison, State Independent Telephone Association of Kansas (SITA) spoke in favor of HB2618. (Attachment 8)
- Colin Hansen, Kansas Municipal Utilities (KMU) spoke in favor of HB2618. (Attachment 9)
- Jay Hall, Kansas Association of Counties (KAC) spoke in favor of HB2618. (Attachment 10)
- Ben Pinkston, Kansas Farm Bureau spoke in favor of HB2618. (Attachment 11)
- Paul Snider, representing Ideatek spoke in favor of HB2618. (Attachment 12)
- John Federico, Kansas Cable Telecommunications Association (KCTA) was Neutral on HB2618 (Attachment 13)
- Mary Jane Stankiewicz, Kansas Rural Telecos, spoke in favor of HB2618.
Chairperson Seiwert closed the hearing on HB2618.