BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 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  
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          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  







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          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  







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          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









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          DLW:do  9/8/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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