BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 745 (Hueso) - Telecommunications: universal service: California Advanced Services Fund ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: January 4, 2016 |Policy Vote: E., U., & C. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: January 19, 2016 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: SB 745 would expand the types of consortium that are specifically eligible for grants from the California Advanced Services Fund (CASF) and would require the California Public Utilities Commission (CPUC) to provide additional information in its annual report to the Legislature. Fiscal Impact: Workload increases likely in the tens of thousands of dollars from the CASF (special) for additional reporting requirements. Background: The CASF was established to encourage deployment of broadband services to all Californians that will promote economic growth, job creation, and substantial social benefits of advanced information and communications technologies. It is funded by a SB 745 (Hueso) Page 1 of ? surcharge rate on revenues collected by telecommunications carriers from end-users of intrastate services. The CASF is split into four accounts, one of which is the Rural and Urban Regional Broadband Consortia Grant Account, which funds grants to eligible consortia to fund the cost of broadband deployment activities other than the capital cost of facilities. Eligible consortia are specified by the CPUC and may include, but are not limited to, representatives from the following types of organizations: local and regional government, public safety, elementary and secondary education, health care, libraries, postsecondary education, community-based organizations, tourism, parks and recreation, agricultural, and business. Existing law requires the CPUC to annually report to the Legislature on the status of the CASF activities. Required information includes the amount of funds expended, the recipients of expended funds, the geographic regions affected by funds expended, and the expected benefits from the expenditures. Proposed Law: This bill would explicitly add representatives from workforce organizations and air pollution control or air quality management districts as eligible members of eligible consortium for grants from the Rural and urban Regional Broadband Consortia Grant Account. This bill would also expand the required information in the CPUC's annual report to the Legislature on CASF activities to provide details on efforts to leverage non-CASF funds. The report would also be required to provide information regarding impacts of expenditures on a county level in addition to a regional level. Staff Comments: The CPUC notes that there are currently 17 consortia, most of which contain multiple counties. To report on expenditures and impacts by county instead of region will take coordination with the consortia to provide additional information and data tracking. The CPUC estimates that this additional work load would be approximately $90,000 annually for SB 745 (Hueso) Page 2 of ? one PY. Staff believes that these costs are likely to be an upper limit and should decrease with time once new data collection processes are established. -- END --