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Minutes for SB68 - Committee on Utilities

Short Title

Prohibiting cities from requiring a valid contract franchise ordinance for the provision of wireless telecommunications services.

Minutes Content for Wed, Feb 6, 2019

Chairperson Masterson opened the Hearing on SB 68.

Staff provided an overview of the bill. (Attachment 1)

Mike Scott, AT&T spoke in support of the bill. He started off by saying SB68 is necessary to prevent municipalities from circumventing both the provisions of the Kansas Wireless Siting Act ("WSA") (K.S.A.66-2019) and the legislature's previously expressed intention to streamline and speed the process by which wireless service and infrastructure providers could deploy new and advanced small cell and wireless technologies to Kansas communities and consumers.  (Attachment 2)

Mr. Scott explained that small cells are small wireless facilities attached to utility poles, traffic lights, light poles or even the sides of buildings, and are designed to boost network capacity and lay the foundation for future innovations such as 5G technology.  He continued to speak on the Wireless Siting Act and the Franchise Act as well as the need for SB68. 

Mr. Scott summarized by saying that allowing wireless franchises defeats the purpose of the WSA and discourages wireless service providers from deployment/investment.   SB68 will not alter any of the existing authority that municipalities already have to reasonably manage and administer the public ROW, as explicitly stated in the WSA. 

Mr. Scott addressed questions from the members and all questions were answered.

Michael Bagley, Director of State Public Policy for Verizon spoke in support of the SB68. (Attachment 3)  Mr. Bagley said that Verizon is currently moving forward throughout the United States to deploy the technology infrastructure that will serve as the foundation for 5G services.  The densification of small wireless facilities, or small cells, creates the framework by which 5G will be possible.  Small cells are needed to meet the exploding consumer demand for data, spur economic development, fuel innovation, and to drive innovation for smart cities, connected care, intelligent traffic solutions, and a variety of other consumer-demanded needs. 

SB68 simply reinforces the Wireless Siting Act's intent to create a uniform framework to ensure that the deployment of small wireless facilities occurs predictably and expeditiously in the context of reasonable costs, which results in a better wireless experience and faster speeds for Kansas consumers, and ensuring that Next Generation 5G happens in Kansas sooner rather than later.

Patrick Fucik on behalf of Sprint Corporation spoke in support of the SB68.  (Attachment 4)  Kansas became the first state in the nation to pass what is known as "small cell" legislation, known in Kansas as the Kansas Wireless Siting Act.  He stated that 20 other states have enacted similar small cell bills. 

Mr. Fucik stated that SB68 has been introduced by the industry to better align the Kansas small cell law with other states and the FCC on the issue of city-imposed franchise fees.  The legislature consciously recognized the value of bringing vital 5G technology to Kansans, and enacted the Wireless Siting Act to make small cell technology a priority by creating a uniform framework to streamline deployment of landline facilities in their cities.  City-imposed franchise fees hinder the effectiveness of the 2016 law by allowing unnecessary impediments and burdensome processes to remain in place.  Franchise fees can vary significantly from city to city, creating a cumbersome negotiation process that slows down the deployment of much-needed wireless technology.

All conferees answered questions from members.

Gerard Keegan, Vice President State Legislative Affairs, CTIA had written testimony only. (Attachment 5)