BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1012 (V Perez)
          
          Hearing Date:  8/17/2009        Amended: 8/17/2009
          Consultant:  Bob Franzoia       Policy Vote: E,U&C 11-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 1012, an urgency measure, would require the  
          Office of the Chief Information Officer (OCIO) to establish a  
          strategy to maximize federal funds from the American Recovery  
          and Reinvestment Act (ARRA) and the Broadband Date Improvement  
          Act that are directed for broadband related activities,  
          programs, or projects.  This bill would require the OCIO, no  
          later than 30 days after the effective date of the bill, to  
          include in the strategy specific information relating to  
          broadband development and deployment and the obtaining of  
          federal funds.  The OCIO would be required to submit the  
          strategy to the Legislature within 60 days of the preparation of  
          the strategy.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions        2009-10      2010-11       2011-12     Fund
           Development of strategyUp to $125                       Federal
          to expand broadband
          access                                                  
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 

          In March 2009, the Governor created the California Federal  
          Economic Stimulus Task Force and charged the OCIO with receiving  
          and administering ARRA funds for broadband projects.  According  
          to the OCIO, it is working with the Public Utilities Commission  
          and the Emerging Technology Fund to develop the strategy and has  
          already executing a strategy for public awareness of the  
          regulations and has held workshops to inform people on the rules  
          and how they can apply for federal funding.  At this time, it is  
          unclear if additional statutory requirements are needed. 

          The Emerging Technology Fund (ETF) was established as a  
          non-profit corporation pursuant to orders from the PUC in  










          approving the mergers of SBC-AT&T and Verizon-MCI in 2005.  As a  
          condition of approval of the mergers, AT&T and Verizon are  
          required to contribute to ETF a total of $60 million over five  
          years for broadband access, particularly in underserved  
          communities.