BILL NUMBER: AB 1391	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 31, 2001
	AMENDED IN ASSEMBLY  APRIL 19, 2001
	AMENDED IN ASSEMBLY  APRIL 5, 2001

INTRODUCED BY   Assembly Members Cardoza, Cogdill, Cohn, Diaz,
Oropeza, and Reyes

                        FEBRUARY 23, 2001

   An act to add Section 63051 to, and to add and repeal Article
 4   3.8  (commencing with Section 
15350   15347  ) of Chapter 1 of Part 6.7 of
Division 3 of Title 2 of, the Government Code, relating to
telecommunications, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1391, as amended, Cardoza.  San Joaquin Valley:  Communications
Leadership and Information Center.
   Under the Bergeson-Peace Infrastructure and Economic Development
Bank Act, the California Infrastructure and Economic Development Bank
is established within state government to make secured loans and
undertake related activities for the purpose of financing projects
that relate to infrastructure improvements.
   This bill would require the Technology, Trade, and Commerce Agency
to establish, until January 1, 2007, the Communications Leadership
and Information Center (CLIC) in the Technology, Trade, and Commerce
Agency for the purposes of promoting the expansion of the
telecommunications infrastructure in the San Joaquin Valley,
facilitating the creation of a technology leadership team in the 8
counties within the San Joaquin Valley, acting as a liaison on
communications infrastructure matters with state and local entities,
championing private sector telecommunications investments in the San
Joaquin Valley, and overseeing a grant and loan program for public
investments in the telecommunications infrastructure of the San
Joaquin Valley.
   This bill would require the Secretary of the Technology, Trade,
and Commerce Agency to oversee  the  CLIC and would require
 the  CLIC to be administered by a 15-member board of
directors to be appointed or selected, as specified.  The bill would
prescribe the duties and responsibilities of the board of directors
with respect to communications infrastructure and related economic
development.
   This bill would establish the San Joaquin Valley Communications
Leadership and Information Center Grant and Loan Program as a 5-year
program  to   .  The bill would declare the
Legislature's intent that the program  provide $22,250,000 in
grants to eligible entities, as described, including small cities and
rural communities  ,  and $100,000,000 in loans to eligible
entities, as described, including large cities.  The grant portion
of the program would include a local match component.
   This bill would establish the Communications Leadership and
Information Center Account as an account within the California
Infrastructure Bank Fund.  The bill would authorize the sale of a
sufficient amount of revenue bonds to generate $100,000,000 of bond
proceeds.  The bond proceeds would be deposited into the account and
would be used for the purposes of funding the loan portion of the
program established by these provisions.  The bill would require the
Infrastructure and Economic Development Bank to administer the
financial aspects of the loan program in accordance with this bill.
   This bill would appropriate  $27,250,000  
$5,450,000  from the General Fund for the 2001-02 fiscal year to
the Technology, Trade, and Commerce Agency for allocation to CLIC to
fund the grants authorized by these provisions and the operational
expenses of CLIC.  The bill would  allocate  
also declare the Legislature's intent to appropriate  $5,450,000
for these purposes for each of  5   the next 4
 fiscal years.  Up to $1,000,000  from the annual
allocation each   of the money appropriated in any 
fiscal year would be made available for the operation of CLIC,
including staffing, equipment and supplies, travel and expenses, with
the remaining funds  allocated each fiscal year  to
be used to fund grants.
   Vote:  2/3.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article  4   3.8  (commencing
with Section  15350   15347)  is added to
Chapter 1 of Part 6.7 of Division 3 of Title 2 of the Government
Code, to read:

      Article  4.   3.8.   Communications
and Leadership Information Center

   15350.   
   15347.   The Legislature finds and declares as follows:
   (a) The San Joaquin Valley is a large and complex region that is
undergoing tremendous growth and change.  These pressures are
compounded by geographic separation and daunting social and economic
forces.
   (b) Current data indicate significant challenges must be overcome
if the area is to reduce unemployment and increase wages.  The region'
s response to these challenges will determine the future of the San
Joaquin Valley, its economic sustainability, and the quality of life
for its residents.  The San Joaquin Valley, in turn, will affect the
entire State of California, either as a positive contributor or as an
economic drain.
   (c) The eight-county region that includes the Counties of Fresno,
Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare,
which has been historically dependent on the mono-culture of
agriculture, is increasingly recognizing the necessity for economic
diversification, the opportunities presented by the new economy, and
the enabling prospects that technology offers.  The region is
beginning a process of long-term systemic change that goes to solving
long-existing issues.
   (d) However, as our society becomes increasingly information-based
and knowledge-driven, opportunities for equal participation through
education, jobs, and community become skewed among socioeconomic and
geographically distributed groups.  Enhancing the number and
diversity of those who have access to and are motivated to use the
new technology will help the region as a whole.
   (e) The "digital divide" is particularly evident in the San
Joaquin Valley, where access to technology and computer use is
significantly lower than in the high tech centers of Los Angeles, the
San Francisco Bay area, and Sacramento.
   (f) The project seeks to put in place the enabling infrastructure
that will support new and better paying jobs and close the digital
divide in the San Joaquin Valley.
   (g) The project will increase the utilization of information and
advanced communications technologies across the diversity of the San
Joaquin Valley and focus on encouraging and facilitating the use of
and access to those technologies in all its communities.
   (h) The grant and loan program will encourage and enable
communities to determine and implement their own course of technology
utilization, a course consistent with locally driven priorities and
requirements while coordinated with regional initiatives and a
nonduplicative and nonredundant structure.
   (i) A new and more comprehensive process of regional collaboration
and information sharing based on a coordinated and cooperative
overall telecommunications strategy can be accomplished through the
establishment of a regional Communications Leadership and Information
Center (CLIC) and creating a CLIC Board of Directors for the
purposes of providing a long-term strategy, structure, and
coordination for telecommunications infrastructure with a focus on
regional communications technologies, policy, and applications.

   15350.1.   
   15347.1.   This article shall be known and may be cited as
the San Joaquin Valley Communications Leadership and Information
Project.  
   15350.2.   
   15347.2.   (a) The Technology, Trade, and Commerce Agency
shall establish a Communications Leadership and Information Center
(CLIC) in accordance with this article.
   (b) CLIC is created for the following purposes:
   (1) To promote the expansion of the telecommunications
infrastructure in the San Joaquin Valley by acting as a clearinghouse
for technical information.
   (2) To facilitate the creation of a technology leadership team in
the eight counties within the San Joaquin Valley that include the
Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin,
Stanislaus, and Tulare.
   (3) To act as a liaison on communications infrastructure matters
with state and local entities.
   (4) To champion private sector telecommunication investments in
the San Joaquin Valley.
   (5) To oversee a grant and loan program for public investments in
the telecommunications infrastructure of the San Joaquin Valley,
including programs that bridge the digital divide, in order to expand
the availability of broadband services in furtherance of economic
development.
   (c) The Secretary of the Technology, Trade, and Commerce Agency
shall oversee CLIC.  
   15350.3.   
   15347.3.   (a) CLIC shall be administered by a board of
directors comprised of the following 15 members:
   (1) The Secretary of Technology, Trade, and Commerce.
   (2) Fourteen members who shall be appointed as follows:
   (A) Six members shall be appointed by the Governor.
   (B) Four members shall be appointed by the Senate Committee on
Rules.
   (C) Four members shall be appointed by the Speaker of the
Assembly.
   (b) The appointing authority shall seek recommendations for
nominations of potential members for the board of directors from
local governments, universities, economic development organizations,
nonprofit organizations, and businesses, including agriculture.

   15350.4.   
   15347.4.   The board of directors shall do all of the
following:
   (a) Set regional goals for communication infrastructure projects
and related economic development issues and activities.
   (b) Design and administer a grant program focused on attracting
advanced communications services to the San Joaquin Valley.
   (c) Assist in coordinating local and regional initiatives
pertaining to communications infrastructure and connectivity.
   (d) Approve the allocation and dissemination of funds appropriated
or allocated to CLIC.  
   15350.5.   
   15347.5.   CLIC shall do all of the following:
   (a) Act as a clearinghouse for information related to
telecommunications infrastructure and advanced telecommunications
services and provide a library of technical information including
resources for identifying and applying for grants.
   (b) Facilitate the creation of a technology leadership team in
each of the eight counties in the San Joaquin Valley with
responsibility for encouraging local implementation of local
initiatives that support their communications objectives and
strategies.
   (c) Create a regional forum for public and private sector and
regional technology leaders providing opportunities to share best
practices and stay up to date on new technologies and policies.
   (d) Assist local economic development corporations, workforce
training boards, and others charged with job creation.
   (e) Act as liaison on communications infrastructure matters
between local entities and the state, as represented by the
Technology, Trade, and Commerce Agency.
   (f) Oversee the implementation and coordination of projects such
as those designed to make the San Joaquin Valley a world-recognized
center for research and development of communications technologies to
enhance the productivity of growers, processors, and distributors.
   (g) Encourage and support mechanisms such as community technology
centers and computer recycling programs that make information
technologies, equipment, and the acquisition of related skills more
accessible to disadvantaged and low-income communities.
   (h) Encourage and support technology training programs to build an
information literate workforce.
   (i) Encourage community technology assessment efforts.
   (j) Partner with appropriate agencies and organizations to develop
a distributed network of centers to assist local small business to
adopt electronic commerce.  
   15350.6.   
   15347.6.   (a) There is hereby established the San Joaquin
Valley Communications Leadership and Information Center Grant and
Loan Program.   The   It is the intent of the
Legislature that the  program shall provide during its five-year
duration an aggregate of twenty-two million two hundred fifty
thousand dollars ($22,250,000) in grants to eligible entities,
including small cities and rural communities and one hundred million
dollars ($100,000,000) in loans to eligible entities, including large
cities.
   (b) In addition to the amount of bonds authorized to be
outstanding at any one time pursuant to Section 63071 and
notwithstanding any other provision of law, the California
Infrastructure and Economic Development Bank may issue revenue bonds
in an amount sufficient to generate one hundred million dollars
($100,000,000) in bond proceeds for the purposes of funding the loan
portion of the program established in subdivision (a).  
   (c) From the General Fund appropriation made by the act enacting
this article, the sum of twenty-seven million two hundred fifty
thousand dollars ($27,250,000) shall be available for the purposes of
funding the grants authorized by this article and the operational
expenses of CLIC and allocated over a period of five fiscal years.
The sum of five million four hundred fifty thousand dollars
($5,450,000) shall be allocated to CLIC from the amount appropriated
for each of the following fiscal years:
   (1) The 2001-02 fiscal year.
   (2) The 2002-03 fiscal year.
   (3) The 2003-04 fiscal year.
   (4) The 2004-05 fiscal year.
   (5) The 2005-06 fiscal year.
   (d) From the money allocated each fiscal year to CLIC 

   (c) From the money allocated in any fiscal year to CLIC 
pursuant to subdivision  (b)   (a)  , up to
one million dollars ($1,000,000) shall be made available to fund the
operational expenses of CLIC, including staffing, equipment and
supplies, travel, and expenses and the remaining allocated funds
shall be used to fund grants for the development of infrastructure
and economic development projects and community technology programs
to address the digital divide.  
   15350.7.   
   15347.7.   (a) For the purposes of the San Joaquin Valley
Communications Leadership and Information Center Grant and Loan
Program, the following entities shall be eligible for grants:
   (1) Cities in the San Joaquin Valley with fewer than 60,000
residents.
   (2) Counties serving unincorporated communities in the San Joaquin
Valley with fewer than 40,000 residents.
   (3) Nonprofit organizations with telecommunications expertise
serving the San Joaquin Valley.
   (4) Public educational institutions serving the San Joaquin
Valley.
   (b) Under the program, the following entities shall be eligible
for loans:
   (1) Cities in the San Joaquin Valley with greater than 60,000
residents.
   (2) Nonprofit organizations with telecommunications expertise
serving the San Joaquin Valley.
   (3) Public educational institutions.
   (c) Except as otherwise provided in this subdivision, projects
with a public purpose and that are eligible for a grant under this
article shall provide at least 50 percent cash or in-kind local
contributions as matching funds.  However, projects in low-income
areas, as determined by the board of directors of CLIC, shall be
subject to a reduced local matching requirement and shall be required
to provide at least 10 percent cash or in-kind local contributions
as its share of matching funds.
   (d) Grants shall be awarded and loans shall be made based on both
the actual and potential size and demonstrated need of the community
or organization as well as leadership and implementation capacity,
community support, and collaborative efforts.  
   15350.8.   
   15347.8.   This article shall remain in effect only until
January 1, 2007, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2007, deletes or
extends that date.
  SEC. 2.  Section 63051 is added to the Government Code, to read:
   63051.  (a) There is hereby established as an account within the
California Infrastructure Bank Fund, the Communications Leadership
and Information Center Account.  Proceeds from the sale of revenue
bonds authorized by subdivision (b) of Section  15350.5
  15347.5  shall be deposited into this account and
may be used for the purposes of funding loans authorized and issued
pursuant to Article  4   3.8  (commencing
with Section  15350)   15347)  of Chapter 1
of Part 6.7 of Division 3 of Title 2.
   (b) The Infrastructure and Economic Development Bank shall
administer the financial aspects of the loan portion of the San
Joaquin Valley Communications Leadership and Information Center Grant
and Loan Program as established and described in Sections 
15350.5 and 15350.6   15347.5 and 15347.6  .
  SEC. 3.   The sum of twenty-seven million two hundred fifty
thousand dollars ($27,250,000)   (a) The sum of five
million four hundred fifty thousand dollars ($5,450,000)  is
hereby appropriated from the General Fund for the 2001-02 fiscal year
to the Technology, Trade, and Commerce Agency for allocation to the
Communications Leadership and Information Center established 
pursuant to Section 15350.1 of the Government Code over a five-year
period as specified in subdivisions (c) and (d) of Section 15350.4 of
that code.   pursuant to Section 15347.2 of the
Government Code.
   (b) It is the intent of the Legislature to also appropriate the
sum of five million four hundred fifty thousand dollars ($5,450,000)
for allocation to the center in each of the fiscal years from 2002-03
to 2005-06, inclusive.