BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 331 (Liu) - California Library Services Act
          
          Amended: April 1, 2013          Policy Vote: Education 8-0
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2013      Consultant: Jacqueline  
          Wong-Hernandez
          
          SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          

          Bill 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 authorizes the  
          California State Librarian (CSL) to enter into a cooperative  
          agreement with a high-capacity Internet service provider to  
          provide network services to all public libraries throughout the  
          state.  

          Fiscal Impact: 
              Cost pressure: CLSA - Expands the scope of permissible  
              funding requests from local libraries to include funding  
              their local high-speed broadband capacity upgrades, which  
              are not currently eligible for funding . 
              Cost pressure: Statewide  network services contract - the  
              CSL estimates that contracting  to provide network services  
              to all public libraries would cost $4.5 million in contract  
              costs for a third party to set up the system, as well as  
              significant ongoing funding to maintain network services.

          Background: The CLSA, enacted in 1977, funds several programs to  
          facilitate interlibrary cooperation and to enhance local public  
          libraries throughout the state. The CLSA is administered by the  
          CSL under the direction of the California Library Services  
          Board. Those entities administer state funding for the Systems  
          Reference Program, which supports coordinated reference services  
          provided through eight CLSA Cooperative Library Systems and for  
          Transactions Based Reimbursement, which facilitates interlibrary  
          loans of materials among participating public libraries.

          Proposed Law: This bill expands resource sharing under the CLSA,  
          by allowing funding requests from libraries to include  








          SB 331 (Liu)
          Page 1


          high-speed broadband capacity upgrades.  
          It also authorizes 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.   

          Related Legislation: SB 1044 (Liu) Ch. 219/2012 repealed the  
          Library of California Act, and made related statutory revisions  
          to streamline the administration of the state's public  
          libraries.

          Staff Comments: This bill would allow local libraries to apply  
          to the California State Library Board for funding to upgrade  
          broadband capacity. While this bill does not provide additional  
          funding for this purpose, it expands the purposes for which  
          existing state funds (which provide a small portion of library  
          funding) annually appropriated in the Budget Act can be used,  
          and creates cost pressure to provide additional funding to  
          libraries for those activities.

          This bill also authorizes the CSL to enter into a contract to  
          establish a statewide broadband network, but provides no funding  
          mechanism to implement the contract. The CSL estimates would  
          cost $4.5 million in contract costs to connect public libraries  
          to an existing Corporation for Education Network Initiatives in  
          California (CENIC) network, which is what the CSL intends to do  
          with the authority granted by this bill. The CSL indicates that  
          half of the funding ($2.25 million) could be accessed in  
          matching funds from the California Teleconnect Fund. 

          The bill's language does not, however, require any particular  
          service provider or system (such as CENIC). The statutory change  
          gives broad authority the CSL (with Board approval) to enter  
          into any similar contract. Specifically authorizing a statewide  
          contract creates cost pressure to fund both the one-time  
          activities to establish a statewide high-speed broadband  
          network, and unknown ongoing costs to keep it operational.


          AS PROPOSED TO BE AMENDED: Amend per author to specify that the  
          authorized contract will be between the State Librarian and  
          CENIC, and subject to an appropriation in the Budget Act.











          SB 331 (Liu)
          Page 2