BILL ANALYSIS Ó
SB 740
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Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 740 (Padilla) - As Amended: August 7, 2013
Policy Committee: Utilities and
Commerce Vote: 11-4
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill expands eligibility in the California Advanced
Services Fund (CASF), establishes a program goal, and increases
the program funding. Specifically, this bill:
1)Specifies the goal of the CASF program is to approve funding
for infrastructure projects that contribute to expanding
broadband access to no less than 98% of California households
no later than December 31, 2015.
2)Increases the amount the PUC is authorized to collect to an
amount not to exceed $215 million, and requires that $190
million be deposited into the Broadband Infrastructure Grant
Account.
3)Requires the Public Utilities Commission (PUC) to give
priority to projects that provide last-mile broadband access
to households that are unserved by an existing
facilities-based broadband provider.
4)Allows an entity that is not a telephone corporation to apply
to participate in the CASF program to provide access to
broadband to an unserved or underserved household, as defined,
if the entity meets the eligibility requirements and complies
with program requirements established by the PUC.
FISCAL EFFECT
Unknown cost pressures, potentially in the hundreds of thousands
of dollars from the CASF (special fund) for expanded grantee
eligibility
SB 740
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COMMENTS
1)Purpose. According to the author, this bill modifies the CASF
to support broadband infrastructure in the most remote areas
of the state that still lack the high-speed Internet access.
It is intended to advance state policy to ensure that all
Californians are served.
1)Background. In 2008, SB 1193 (Padilla) authorized the PUC to
assess a surcharge on telephone ratepayers to fund the CASF.
Existing law now requires $100 million collected by the
surcharge to be deposited into the Broadband Infrastructure
Account. The PUC is authorized to collect an additional sum
not to exceed $125 million after January 1, 2011 through the
2015 calendar year.
The CASF provides funding to encourage deployment of
high-quality advanced communications services to all
Californians. The program is designed to promote economic
growth, job creation, and substantial social benefits of
advanced information and communications technologies.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081