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Bill

HB 2586

Requiring revenues received by telecommunications service providers for the provision of broadband services to be calculated when determining gross receipts under a city franchise.

2025-2026 Regular Session

Kansas bill requires cities to include broadband service revenues when calculating telecommunications franchise fees, increasing municipal revenue collection from providers.

Died in Committee
#cities #telecommunications
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WeVote Research Nonpartisan
Bill Summary · HB 2586

Legislative bill overview

HB 2586 requires Kansas cities to include broadband service revenues in their calculations of gross receipts when determining franchise fees from telecommunications providers. Currently, some cities may exclude or undercount broadband revenues when calculating the fees they can charge providers for using municipal infrastructure.

Why is this important

Franchise fees are a significant revenue source for cities, funding local infrastructure and services. This bill directly affects how much money municipalities can collect from telecom providers, potentially increasing city revenues while also impacting what providers pay and possibly consumer costs.

Potential points of contention

  • Municipal revenue vs. broadband expansion: Cities may argue broadband revenues should be taxed to fund infrastructure, while providers may contend that including these revenues increases costs and could discourage broadband expansion in less profitable areas
  • Definition and calculation clarity: The bill's language on what constitutes "broadband services revenue" and how to calculate it when services are bundled with other offerings may create administrative disputes
  • Competitive impact: Providers serving multiple Kansas cities could face inconsistent fee structures if interpretations vary, potentially disadvantaging smaller providers or rural broadband initiatives

Compiled from official sources — confirm details with the bill’s official record.

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