BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE ALEX PADILLA, CHAIR AB 1012 - V. Manuel Perez Hearing Date: July 7, 2009 A As Amended: June 25, 2009 FISCAL/Urgency B 1 0 1 2 DESCRIPTION Current federal law , as contained in the American Recovery and Reinvestment Act of 2009 (ARRA), establishes a $4.7 billion competitive grant and loan program to encourage adoption of broadband technology and a similar $2.5 billion program targeted to rural telephone companies. This bill requires California's Chief Information Officer (CIO) to administer any monies received from the ARRA for broadband projects. The CIO shall, within 30 days, develop a strategy to expedite accessing and allocating such monies. Within 60 days of the completion of the strategy, it shall be provided to the relevant policy and fiscal committees of the Legislature. This bill is an urgency statute. BACKGROUND On March 26, 2009 the Governor created the California Federal Economic Stimulus Task Force. California's Chief Information Officer (CIO) was charged with leading the broadband effort. The CIO's office has enlisted the assistance of the California Public Utilities Commission (CPUC) and the California Emerging Technology Fund. The ARRA authorizes federal agencies to consult with states on projects within their jurisdictions. States will be given the opportunity to prioritize projects that pass the initial federal screening. On July 1 the federal government released its Notice of Funds Availability for the ARRA broadband grants. On July 10 the CPUC will hold a workshop on how to apply for those funds. COMMENTS 1. Author Statement - The author believes that this bill will ensure that California is proactively engaged in the federal broadband programs, adequately prepared to provide the federal government with feedback for improving and expanding California's broadband infrastructure, and able to identify funding sources to secure California's fair share of ARRA broadband funding. 2. A Good Job so Far - The efforts of the CIO and the CPUC to plan for and organize California's efforts to access the ARRA broadband funding have been generally recognized as timely, competent and inclusive. Given that, is there still a need for this bill? ASSEMBLY VOTES Assembly Floor (78-0) Assembly Appropriations Committee (15-0) Assembly Utilities and Commerce Committee (14-0) POSITIONS Sponsor: Author Support: None on file Oppose: None on file Randy Chinn AB 1012 Analysis Hearing Date: July 7, 2009