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Minutes for HB2618 - Committee on Utilities
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 Wed, Mar 11, 2020
Chairman Masterson opened the hearing on HB2618
Staff gave an explanation of the bill.(Attachment 1)
Proponents
John Idoux, CenturyLink stated that through its extensive global fiber network, Century Link provides secure and reliable services to meet the growing digital demands of businesses and consumers. (Attachment 2) CenturyLink strongly supports the legislative intent of HB2618 to ensure that every Kansan and every appropriate location in Kansas has access to high speed broadband services. CenturyLink has long advocated for a properly structured state broadband grant program and the main concept of this bill is the creation of a broadband program for rural broadband deployment. If properly structured and administered, a state broadband grant program has the potential to promote rural broadband deployment.
Mr. Idoux said that although HB2618 does not explicitly codify that state broadband grant funding only be used for unserved areas, the legislative intent and scoring criteria will likely ensure state assistance does not go to areas where private investment has been deployed. It is important to provide the Department of Commerce with enough flexibly to implement and modify the program as needs are identified, refined and changed over the course of the 10-year initiative.
In conclusion Mr. Idoux said CenturyLink agrees that increased deployment of broadband services and infrastructure will improve the long-term quality of life for all Kansans and will ensure that Kansas continues to compete locally and globally.
Molly Kocour Boyle, AT&T stated that they are committed to working collaboratively with all levels of government, private industry and customers to expand and enhance our networks to reach Kansas' rural areas. (Attachment 3) AT&T is working with similar federal programs designed to expand broadband access in rural communities nationwide. As an example, through the Connect America Fund (CAF) initiative, we're committed to offering internet service to 1.1 million additional rural homes and small businesses nationally by the end of 2020. In Kansas, we've expanded high-speed internet service to underserved rural areas of the state, now reaching more than 28,000 homes and small business locations in parts of 67 Kansas counties in AT&T Kansas' service territories.
In continuing work to deliver broadband service to rural Kansas,AT&T has announced plans to expand access to ultra-fast connectivity over our Next Generation Fixed Wireless Internet service using the Citizens Broadband Radio Service spectrum band.
In conclusion we know that improved access to broadband can fuel economic development and improved healthcare and education.
Jeff Wick, on behalf of Kansas Rural Independent Telecommunication Coalition stated that KRITC attended all the meetings and listened to a variety of people that pointed out that broadband is no longer a luxury item for residents or companies. (Attachment 4) It has become necessity for business, education, health care, agriculture and our own personal lives.
Mr. Wick said he supports HB2618 because it establishes a broadband program that incorporates a number of themes that were widely supported by the task force members: 1) housing the program in Department of Commerce; 2) creates a challenge process so the funds will not be used to duplicate what is already deployed by a provider; 3) allows the Department of Commerce the flexibility to set minimum speed standards so that these standards can change as technology changes.
HB2618 fits well with the FORWARD bill (SB375) which focuses on addressing infrastructure issues.
Stephen Duerst, on behalf of the Kansas Cable Telecommunications Association said that KCTA took the lead several years ago, and worked with other stakeholders and legislators to help push for the creation of a Broadband Task Force to join the growing number of states that were implementing statewide broadband deployment plans. (Attachment 5) He said they believe HB2618 is a good start in helping to fix the 'digital divide' in the state of Kansas.
Jarad Falk, Charter Communications said they support the creation of a Kansas Broadband Grant Program in HB2618, but would suggest a few changes to ensure taxpayer dollars are spend in a prudent manner. (Attachment 6)
- First, the Legislature should ensure that taxpayer dollars are only used in unserved areas of the state. Any taxpayer funds used in areas that already have access to high speed broadband are wasted.
- Second, the grant program should not provide a grant in an area where another federal, state or local grant has already been awarded-if the grant recipient has committed to building out the area with such grant.
- Third, if taxpayer dollars are to be used to subsidize broadband expansion, the Legislature should ensure that the infrastructure deployed meets a minimum speed requirement (25/3 Mbps) and is scalable to higher speeds in the future.
- Fourth, the Department of Commerce should promulgate rules and regulations in advance of accepting grant applications to provide additional guidance for applicants and to ensure the rules conform to HB2618.
- The grant program should sunset in 5 years.
Paul Snider, IdeaTek stated they are a competitive service provider of broadband and voice services that does not receive funding from the Kansas Universal Service Fund. (Attachment 7) He said creating a grant program, which is competitively available to all broadband operators on an equal playing field and potentially to be matched with funding proposed in HB2588 and SB375 (FORWARD), is an effective way to increase broadband deployment. The funding proposed is short of what providers need, but it's a positive step that benefits underserved Kansas residents.
Mr. Snider said there are two changes, for the committee's consideration, they believe would improve the bill:
- The Office of Broadband Deployment should receive authority and direction from the Legislature to advance concepts in the Broadband Task Force Final Report, such as drafting a broadband goal, addressing right-of-way access and other issues.
- There is no current qualification criteria or definition of "Broadband". Qualifying areas should be defined as those unserved or underserved areas identified using the Kansas Connected Nation Map, and the federal standard and the newly adopted speed standard of the Kansas Broadband Deployment Taskforce of 25 Mbps download / 3 Mbps upload.
Stanley Adams, Kansas Department of Commerce stated the Task Force recommendations that are incorporated in the bill are a positive step forward to improving access to broadband infrastructure in Kansas. (Attachment 8)
Mr. Adams said there are a few areas in the bill that he would highlight for consideration:
- The bill provides for the grant program to be competitive.
- The bill includes a challenge process provision.
- There is a requirement for us to provide annual progress reports to the legislature as well as publishing the applications and funding awards information online for full transparency.
- This bill provides flexibility for the office of broadband development to promote the adoption of new technologies and work across state government to achieve efficiencies.
Mr. Adams answered question from the committee.
Proponent Written Only: Erik Sartorius, The League of Kansas Municipalities (Attachment 9); Jay Hall, Kansas Association of Counties (Attachment 10) ; Ben Pinkston, Kansas Farm Bureau (Attachment 11) ; Colin Hansen, Kansas Municipal Utilities (Attachment 12); Shahira Stafford, Kansas Cooperative Council (Attachment 13); Doug Shepherd, Kansas Electric Cooperatives, Inc. (Attachment 14); Patrick Fucik on behalf of Sprint (Attachment 15).
The Chairman closed the hearing on HB2618 then reopened the hearing for questions to other conferees. When all questions were answered the Chairman closed the Hearing on HB2618
Meeting adjourned at 2:13pm.
Next meeting is March 17, 2020
