BILL ANALYSIS
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THIRD READING
Bill No: AB 1012
Author: V. Manuel Perez (D), et al
Amended: 6/25/09 in Senate
Vote: 27 - Urgency
SENATE ENERGY, U.&C. COMMITTEE : 11-0, 7/7/09
AYES: Padilla, Benoit, Calderon, Corbett, Cox, Kehoe,
Lowenthal, Simitian, Strickland, Wiggins, Wright
SENATE APPROPRIATIONS COMMITTEE : 8-0, 8/17/09
AYES: Kehoe, Cox, Corbett, Denham, Leno, Price, Runner,
Wolk
NO VOTE RECORDED: Hancock, Oropeza, Walters, Wyland, Yee
ASSEMBLY FLOOR : 78-0, 5/28/09 - See last page for vote
SUBJECT : Broadband communications
SOURCE : Author
DIGEST : This bill requires 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 requires 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 is required to submit the strategy
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to the Legislature within 60 days of the preparation of the
strategy.
ANALYSIS : 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.
According to the author's office, this bill is intended to
ensure that California is proactively engaged in new
federal broadband programs and able to secure the state's
fair share of ARRA funding for the development and/or
expansion of broadband infrastructure. Since all grant
awards are to be made by the end of September 30, 2010, and
grants are to be completed within two years of their
approval, the strategy required in this bill should be
developed as soon as possible, thus the bill includes an
urgency clause. In designating the PUC as the state agency
to access and administer ARRA broadband funds, the bill is
consistent with a recommendation of the Legislative
Analyst's Office in its March report on the ARRA.
The $787 billion ARRA includes two sources of broadband
funding: 1) The Broadband Technology Opportunities Program
(BTOP) provides $4.4 billion in competitive grants, and
contains several set-asides, including $250 million for
innovative programs to encourage sustainable development of
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broadband services, $200 million to upgrade technology and
capacity at public computing centers, and $350 million for
to support efforts to ensure access to affordable
broadband. Priority for grants is given to states that can
provide matching funds and there must be a single,
centralized agency that applies on behalf of all grant
recipients under this program. 2) The Distance Learning,
Telemedicine, and Broadband Program is a $2.5 billion
competitive grant program aimed at building broadband
infrastructure in rural areas that do not have sufficient
access to high-speed broadband service. Priority for
grants is given to projects that will deliver end-users a
choice of more than one service provider and provide
service to the highest proportion of rural residents that
do not have access to broadband.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/19/09)
California School Library Association
California Library Association
California Special District Association
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu,
Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,
Nava, Nestande, Niello, Nielsen, John A. Perez, V. Manuel
Perez, Portantino, Price, Ruskin, Salas, Silva, Skinner,
Smyth, Solorio, Audra Strickland, Swanson, Torlakson,
Torres, Torrico, Tran, Villines, Yamada, Bass
NO VOTE RECORDED: DeVore, Saldana
DLW:do 8/19/09 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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