BILL ANALYSIS
AB 1391
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Date of Hearing: April 17, 2001
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT AND THE ECONOMY
Sarah Reyes, Chair
AB 1391 (Cardoza) - As Amended: April 5, 2001
SUBJECT : Communications and Leadership Information Project:
San Joaquin Valley
SUMMARY : Creates the San Joaquin Valley Communications
Leadership and Information Center Grant and Loan Program in the
Technology, Trade and Commerce Agency (TTCA). Specifically,
this bill :
1)Creates the Communications Leadership and Information Center
(CLIC) in the TTCA and states its the duties as to:
a) Oversee a telecommunications grant and loan program and
the implementation and coordination of projects that
address the "digital divide" and expand availability of
information technologies, including broadband services, to
growers, processors, distributors, community technology
centers, and disadvantaged and low income communities in
the San Joaquin Valley.
a) Provide a library of and act as a clearinghouse for
technical information that promotes the expansion of
telecommunications infrastructure.
a) Facilitate the creation of an implementation leadership
team in each of the counties of Fresno, Kings, Kern,
Madera, Merced, San Joaquin, Stanislaus, and Tulare.
a) Act as a liaison between state and local entities and
assist local economic development corporations, workforce
training boards, and other entities charged with job
creation.
a) Create a regional technology forum for public and
private sector technology leaders to share best practices
and to stay abreast of new technologies.
a) Develop a network through partnerships to promote
e-commerce in small businesses.
AB 1391
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a) Support technology training programs.
1)Creates a fifteen-member CLIC board of directors composed of
the Secretary of TTCA, six members appointed by the Governor,
four members appointed by the Senate Rules Committee, and four
members appointed by the Speaker of the Assembly.
2)Specifies the following duties of the CLIC board:
a) Set goals for and assist in coordinating regional
communications infrastructure and related economic
development.
a) Design and administer a grant program for attracting
advanced communications services to the Valley.
1)Stipulates the following entities as eligible for program
grants administered by the CLIC:
a) Cities in the eight county Valley area having less than
60,000 residents.
a) Counties serving unincorporated Valley communities
having less than 40,000 residents.
a) Nonprofit organizations with telecommunications
expertise serving the Valley.
a) Public education institutions serving the Valley.
a) Demonstrated need, leadership and implementation
capacity, and community support.
1)Requires a 50 percent matching cash or in-kind local
contribution for grants except, if deemed by the CLIC board to
be a low-income area. Low-income areas require 10 percent
matching cash or in-kind local contribution.
2)Stipulates the following entities as eligible for program
loans administered by the CLIC:
a) Cities in the eight county Valley area having more than
60,000 residents.
a) Nonprofit organizations with telecommunications
AB 1391
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expertise serving the Valley.
a) Public education institutions.
1)Creates the Communications Leadership and Information Center
Account in the California Infrastructure and Economic
Development Bank Fund to receive proceeds from bond sales to
be used for program loans .
FISCAL EFFECT : Makes a one-time appropriation of $27,250,000
from the General Fund. Beginning with 2001-2002 and ending in
the 2005-2006 fiscal year, the bill expends $5,450,000 for
grants to small cities and rural communities and $1,000,000 for
CLIC administrative expenses, yearly. The bill authorizes the
California Infrastructure and Economic development Bank to issue
bonds sufficient to generate $100,000,000 for loans to eligible
large cities.
COMMENTS : According to the author, "The San Joaquin Valley has
been unable to participate fully in the 'New Economy' because
its communications infrastructure is deficient?. Establishing
the regional CLIC will ensure that there is long term strategy,
structure, and coordination of improvements to the
communications structure?. The grant and loan program will
encourage and enable communities to determine and implement
their own course of technology utilization?.".
Staff notes the leadership provided by New Valley Connexions in
providing leadership to promote technology-based clusters in the
San Joaquin Valley. New Valley Connexions is an existing
partnership of the Great Valley Center and the Division of
Science, Technology, and Innovation of TTCA.
Related legislation : AB 1725 (JEDE Committee) to establish a
regional technology alliance in the Central Valley.
SUPPORT:
The Great Valley Center (sponsor).
Boards of Supervisors of Fresno, Merced, San Joaquin and
Stainislaus counties.
OPPOSITION:
None on file.
AB 1391
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Analysis Prepared by : Pedro Villegas / J., E.D. & E. / (916)
319-2090