BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       SB 331
          AUTHOR:        Liu  
          AMENDED:       April 1, 2013
          FISCAL COMM:   Yes            HEARING DATE:  April 3, 2013
          URGENCY:       No             CONSULTANT:Lenin Del Castillo

           SUBJECT  :  California Library Services Act.

           SUMMARY  

          This bill expands the statewide delivery network and  
          resource sharing under the California Library Services Act  
          (CLSA) by allowing funding requests from libraries to  
          include high-speed broadband capacity upgrades and allow  
          the California State Library (CSL) to enter into a  
          cooperative agreement with a high-speed broadband network  
          to provide internet services to all public libraries  
          throughout the state.  
           
           BACKGROUND  

          The CLSA was enacted in 1977 and designed to enhance equal  
          access to library materials for all Californians.  It funds  
          several programs which encourage interlibrary cooperation  
          and participation among local public libraries throughout  
          the state.  The CLSA is administered by the California  
          State Library under the direction of the California Library  
          Services Board, which consists of thirteen members-nine of  
          which are appointed by the Governor, two by the Senate, and  
          two by the Assembly.  The programs within the CLSA include:

          1)   Systems Reference program:  The Systems Reference  
               Program supports coordinated reference services  
               provided through eight CLSA Cooperative Library  
               Systems.  These services include basic and  
               interlibrary references to local libraries and  
               underserved populations and training to local  
               libraries.  The purpose of the program is to provide  
               services at the local level and cost effective back up  
               resources for libraries.





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          2)   Transactions Based Reimbursement:  The Transactions  
               Based Reimbursement program provides access to library  
               materials by efficiently facilitating interlibrary  
               loans of materials among participating public  
               libraries.  Individuals can borrow materials from  
               anywhere in the system, directly or indirectly through  
               their local library.  The state provides reimbursement  
               for the handling cost incurred when a library loans  
               materials to another library or to a resident of  
               another library's jurisdiction.  However, funding for  
               this program is subject to an appropriation in the  
               annual budget act and if funding is insufficient to  
               fully fund all transactions, 

               the reimbursement rates are prorated.  The Budget Act  
               of 2012 includes $1.9 million for this program, which  
               will be unlikely to cover the full cost of  
               transactions.
           
          ANALYSIS
           
          This bill expands the statewide delivery network and  
          resource sharing under the California Library Services Act  
          (CLSA) by allowing funding requests from libraries to  
          include high-speed broadband capacity upgrades and allow  
          the California State Library (CSL) to enter into a  
          cooperative agreement with a high-speed broadband network  
          to provide internet services to all public libraries  
          throughout the state.  

          More specifically, this bill: 

          1)   Allows funding requests from cooperative library  
               systems to include grant assistance for broadband  
               capacity upgrades and the electronic delivery of  
               library materials and information, to the extent that  
               funds are available,

          2)   Allows the CSL to enter into a cooperative agreement  
               with a high-speed broadband network to provide  
               internet services to all public libraries throughout  
               the state.   

          3)   Requires the California Library Services Board to  
               develop formulas for the equitable allocation of state  
               funds associated with a library system's participation  




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               in the statewide broadband network and costs  
               pertaining to broadband capacity upgrades.    

          4)   Makes technical, clarifying amendments related to the  
               California Library Services Board's requirement to  
               establish and maintain a statewide communications and  
               delivery network among cooperative library systems.

           STAFF COMMENTS  

           1)   Need for the bill  .  According to information provided  
               by the author's office, there are provisions of the  
               CLSA that have become outdated or irrelevant for the  
               operation of modern library systems.  The CLSA was  
               designed to help public libraries and cooperative  
               public library systems provide coordinated information  
               services, support communication and delivery among  
               libraries, and provide reimbursement for interlibrary  
               loans of materials and direct loans to non-resident  
               borrowers.  Library supporters have recently been  
               looking for ways to expand the use of broadband  
               digital connections between libraries and schools.   
               The increased use of internet services at libraries,  
               expanded distribution of ebooks and digital portable  
               reader devices, and other technological changes have  
               expanded beyond the original definitions and terms  
               used in the CLSA.  This bill would increase  
               opportunities for digital broadband connections for  
               public libraries by allowing the CSL to enter into an  
               agreement with a statewide high-speed broadband  
               network for the purpose of providing an infrastructure  
               "backbone" of broadband services.  The California  
               State Library (CSL) has indicated it has been in  
               discussions with the Corporation for Education Network  
               Initiatives for California to join their statewide  
               network. 
                 
           2)   Lack of funding priority mechanism  .  It is unclear  
               whether funding requests for broadband upgrades would  
               be prioritized over the transactions based  
               reimbursements for library loans and other allowable  
               expenditures currently funded under the California  
               Library Services Act (CLSA).  Absent language that  
               specifies any funding priorities, staff assumes that  
               the CSL and the California Library Services Board  
               would have the discretion to decide what is funded.   




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               Since the amount of funds provided in the annual  
               budget in recent years has only covered a small  
               fraction of eligible CLSA program costs, this bill  
               could have an unintended consequence of further  
               diluting one of the CLSA's primary functions of  
               encouraging the sharing of materials among libraries.   


           3)   Fiscal effect  .  According to the California Library  
               Association, this bill would result in General Fund  
               cost pressure of $4.25 million of which approximately  
               $2 million would be for one-time activities.

           4)   Prior related legislation  .  SB 1044 (Liu), Chapter  
               219, Statutes of 2012, aligned statute with the  
               current needs and practices of California's public  
               library systems by repealing the Library of California  
               Act and amending various sections of the CLSA.  These  
               changes streamlined existing library system operations  
               and removed statutory references that are outdated.

           SUPPORT  

          American Federation of State, County, and Municipal  
          Employees
          California Library Association

           OPPOSITION

           None on file.