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Minutes for HB2515 - Committee on Energy, Utilities and Telecommunications

Short Title

Income tax deduction for releases of telephone service territory.

Minutes Content for Mon, Feb 5, 2018

Chair Seiwert opened the hearing.

Matt Sterling, Assistant Revisor of Statutes presented a brief of the bill. (Attachment 8) The bill would allow any taxpayer that holds certificated telephone service territory in a rural area to release those customers through the filing with the Kansas Corporation Commission (KCC) to be eligible for a tax deduction..  The deduction would be from the taxpayer's adjusted gross income in an amount equal to the amount of the value of the existing customers in that area.  He stood for questions.

Proponent testimony was presented by Rep Tom Sloan. (Attachment 9) He stood for questions.

The Chair temporarily closed the hearing.  Chair Seiwert subsequently re-opened the hearing.  The Chair closed the proponent portion of the hearing.

Opposition Testimony was presented by Mike Scott. (Attachment 10) One area of considerable concern is the undefined role of the Kansas Corporation Commission (KCC) in the relinquishment process; all of which could lead to unwanted and unnecessary burdens that could also conflict with federal efforts in this area.  AT&T Kansas believes the bill is unnecessary and creates multiple concerns.   He stood for questions.

The Chair closed the opponent portion of the hearing.

Neutral testimony was presented by John Idoux. (Attachment 11) CenturyLink does not dispute the fact that broadband is a vitally important service nor does CenturyLink dispute the fact that there are areas of the state lacking sufficient broadband.  CenturyLink has been, and will continue to be a strong partner at the discussion table on how to advance broadband into rural areas of the state, but HB2515 does nothing to advance the serious challenges facing rural broadband deployment.  He stood for questions.

Written only neutral testimony was provided by Mary Jane Stankiewicz, Executive Director, Kansas Rural Independent Telecommunications Coalition (KRITC). (Attachment 12)

The Chair closed the neutral portion of the hearing.  The Chair then closed the hearing.

The next meeting will be Wednesday, February 7 at 9:00.

The meeting was adjourned at 10:17 am.