BILL ANALYSIS
AB 1012
Page 1
ASSEMBLY THIRD READING
AB 1012 (V. Manuel Perez)
As Amended May 5, 2009
2/3 vote. Urgency
UTILITIES AND COMMERCE 14-0
APPROPRIATIONS 15-0
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|Ayes:|Fuentes, Duvall, Tom |Ayes:|De Leon, Nielsen, |
| |Berryhill, Blakeslee, | |Ammiano, |
| |Carter, Fong, Fuller, | |Charles Calderon, Davis, |
| |Furutani, Huffman, | |Duvall, Fuentes, Hall, |
| |Krekorian, Skinner, | |Harkey, John A. Perez, |
| |Smyth, Swanson, Torrico | |Price, Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the Public Utilities Commission (PUC) to
administer monies received by the state, pursuant to the
American Recovery and Reinvestment Act (ARRA), for
broadband-related activities. PUC is to meet within 30 days of
the effective date of this bill to develop a strategy to
expedite accessing ARRA funds, and to submit this strategy to
the Legislature within 60 days of its first meeting pursuant to
these requirements. Specifically, this bill:
1)Recognizes the establishment of the task force and requires it
to meet no later than 30 days after the effective date of this
bill to develop a strategy to expedite accessing funds
provided under ARRA.
2)Requires the task force to submit the strategy to the relevant
policy and fiscal committees in each house of the Legislature
within 60 days of its first meeting.
3)Contains an urgency clause, allowing this bill to take effect
immediately upon enactment.
FISCAL EFFECT : PUC anticipates costs of $770,000 for at least
two years to administer and monitor ARRA funds received by the
state for six full-time positions and part-time legal support.
AB 1012
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These administrative costs would presumably be an allowable
expenditure of the federal ARRA monies provided to California.
COMMENTS : According to the author's office, this bill is
intended to ensure that California is proactively engaged in new
federal broadband programs and able to secure the state's fair
share of ARRA funding for the development and/or expansion of
broadband infrastructure. Since all grant awards are to be made
by the end of September 30, 2010, and grants are to be completed
within two years of their approval, the strategy required in
this bill should be developed as soon as possible, thus the bill
includes an urgency clause. In designating the PUC as the state
agency to access and administer ARRA broadband funds, the bill
is consistent with a recommendation of the Legislative
Analyst's Office in its March report on the ARRA.
The $787 billion ARRA includes two sources of broadband funding:
1) The Broadband Technology Opportunities Program (BTOP)
provides $4.4 billion in competitive grants, and contains
several set-asides, including $250 million for innovative
programs to encourage sustainable development of broadband
services, $200 million to upgrade technology and capacity at
public computing centers, and $350 million for to support
efforts to ensure access to affordable broadband. Priority for
grants is given to states that can provide matching funds and
there must be a single, centralized agency that applies on
behalf of all grant recipients under this program. 2) The
Distance Learning, Telemedicine, and Broadband Program is a $2.5
billion competitive grant program aimed at building broadband
infrastructure in rural areas that do not have sufficient access
to high-speed broadband service. Priority for grants is given
to projects that will deliver end-users a choice of more than
one service provider and provide service to the highest
proportion of rural residents that do not have access to
broadband.
Analysis Prepared by : Nina Kapoor / U. & C. / (916) 319-2083
FN: 0000965