BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1012| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1012 Author: V. Manuel Perez (D), et al Amended: 9/4/09 in Senate Vote: 27 - Urgency SENATE ENERGY, U.&C. COMMITTEE : 11-0, 7/7/09 AYES: Padilla, Benoit, Calderon, Corbett, Cox, Kehoe, Lowenthal, Simitian, Strickland, Wiggins, Wright SENATE APPROPRIATIONS COMMITTEE : 8-0, 8/17/09 AYES: Kehoe, Cox, Corbett, Denham, Leno, Price, Runner, Wolk NO VOTE RECORDED: Hancock, Oropeza, Walters, Wyland, Yee ASSEMBLY FLOOR : 78-0, 5/28/09 - See last page for vote SUBJECT : Broadband communications SOURCE : Global Green USA DIGEST : This bill requires the Office of the Chief Information Officer (OCIO) to establish a strategy to maximize federal funds from the American Recovery and Reinvestment Act (ARRA) and the Broadband Date Improvement Act that are directed for broadband related activities, programs, or projects. This bill requires the OCIO, no later than 30 days after the effective date of the bill, to include in the strategy specific information relating to broadband development and deployment and the obtaining of federal funds. The OCIO is required to submit the strategy CONTINUED AB 1012 Page 2 to the Legislature within 60 days of the preparation of the strategy. Senate Floor Amendments of 9/4/09 clarify the bill so that it is consistent with the Governor's directive, to the California Public Utilities Commission (CPUC) concerning broadband communications funding, including the CPUC will administer the state's broadband mapping effort. ANALYSIS : In March 2009, the Governor created the California Federal Economic Stimulus Task Force and charged the OCIO with receiving and administering ARRA funds for broadband projects. According to the OCIO, it is working with the CPUC and the Emerging Technology Fund to develop the strategy and has already executing a strategy for public awareness of the regulations and has held workshops to inform people on the rules and how they can apply for federal funding. At this time, it is unclear if additional statutory requirements are needed. The Emerging Technology Fund (ETF) was established as a non-profit corporation pursuant to orders from the CPUC in approving the mergers of SBC-AT&T and Verizon-MCI in 2005. As a condition of approval of the mergers, AT&T and Verizon are required to contribute to ETF a total of $60 million over five years for broadband access, particularly in underserved communities. 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 CPUC 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 AB 1012 Page 3 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. This bill requires the State Chief Information Officer to establish a strategy to maximize federal funding opportunities pursuant to the federal American Recovery and Reinvestment Act of 2009 (Recovery Act) and the federal Broadband Data Improvement Act that are directed for broadband-related activities, programs, or projects. The bill requires the State Chief Information Officer, no later than 30 days after the effective date of this bill, to develop the strategy and requires that the strategy include specific information for purposes of broadband development and deployment in the state and the obtaining of federal funding for those purposes. The State Chief Information Officer will be required to submit the strategy to the relevant policy and fiscal committees in each house of the Legislature within 30 days of the preparation of the strategy. The bill requires the State Chief Information Officer to administer, expend, and distribute broadband-related funding received under the Recovery Act in a manner consistent with federal law and specified policy goals. The bill requires the CPUC, as the designated recipient for a grant under the federal State Broadband Data and AB 1012 Page 4 Development Grant Program of the Broadband Data Improvement Act, to administer and expend funding received under that program in a manner consistent with federal and state law. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/19/09) Global Green USA (source) American Lung Association of California Breathe California California Association of Realtors California Business Properties Association Dow Chemical Ella Baker Center fro Human Rights Environmental Defense Fund Environmental Health Coalition Planning and Conservation League San Diego Coastkeeper Sierra Club California South Coast Air Quality Management District The Utility Reform Network Union of Concerned Scientists US Green Building Council (Northern Cal and LA) ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello, Nielsen, John A. Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas, Silva, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, Bass NO VOTE RECORDED: DeVore, Saldana AB 1012 Page 5 DLW:do 9/8/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****