BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2292|
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THIRD READING
Bill No: AB 2292
Author: Bonta (D)
Amended: 6/11/14 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/18/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
ASSEMBLY FLOOR : Not relevant
SUBJECT : Infrastructure financing districts: broadband
SOURCE : Author
DIGEST : This bill adds public capital facilities or projects
that include broadband to the types of facilities that an
infrastructure financing district (IFD) can finance.
ANALYSIS : Cities and counties can create IFDs and issue bonds
to pay for community-scale public works. To re-pay the bonds,
an IFD diverts property tax increment revenues from other local
governments for 30 years. However, an IFD can't divert property
tax increment revenues from schools. Every other local agency
that will contribute its property tax increment revenue to the
IFD must approve the plan. Unlike former redevelopment project
areas, the property in an IFD doesn't have to be blighted, but
an IFD can't overlap a redevelopment project area. Existing law
declares, but does not require, that an IFD should include
substantially undeveloped areas.
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AB 2292
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Existing law allows cities to establish, purchase and operate
works to furnish inhabitants with light, water, power, heat,
transportation, or means of communication (California
Constitution, Article XVI, Section 9). Existing law also allows
some special districts, including municipal utility districts
and public utility districts to provide works for supplying
inhabitants with communications services. In 2008, the
Legislature implemented one of the California Broadband Task
Force's recommendations by allowing community services districts
to provide broadband facilities and services in an area where a
private provider is either unable or unwilling to provide those
facilities and services (SB 1191, Alquist, Chapter 70, Statutes
of 2008).
This bill directs that any IFD may finance public capital
facilities or projects that include broadband. This bill
defines "broadband" as communications network facilities that
enable high-speed Internet access.
Comments
According to the author, "AB 2292 would provide cities and
counties with new tools to expand broadband projects that would
bring high-speed communications, jobs, and new businesses to
local communities.
"Many cities in the Bay Area have lost manufacturing companies
in recent years, resulting in the loss of jobs for local
residents and economic stagnation. The dissolution of
redevelopment agencies throughout the state has only compounded
economic problems for local governments by eliminating one of
the tools used to generate funding for projects.
"Infrastructure financing districts have the potential to
provide an alternative for local governments to stimulate
economic development. However, existing law only permits a
limited number of project types to be financed, such as
transportation-related projects, water treatment facilities,
parks, and solid waste stations. Although these projects are
important for basic infrastructure within cities, they do not
inevitably bring in new businesses for future economic growth
within cities and counties.
"Studies by the federal government and international
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organizations have demonstrated that broadband is a key driver
of economic growth and national competitiveness, in addition to
being able to contribute to social and cultural developments.
By increasing local access to broadband services, cities and
counties can incentivize high-tech companies and businesses to
move into their communities, and increase access to
telecommunications services for schools and residents."
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 6/19/14)
City of San Leandro (source)
California Library Association
California State Association Counties
AB:e 6/20/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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