BILL ANALYSIS
AB 1391
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Date of Hearing: May 9, 2001
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Carole Migden, Chairwoman
AB 1391 (Cardoza) - As Amended: April 19, 2001
Policy Committee:
J.,E.D.&E.Vote:9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes a grant and loan program to finance the
expansion of telecommunications infrastructure in the San
Joaquin Valley. Specifically, this bill:
1)Establishes a Communications Leadership and Information Center
(CLIC), under the oversight of the Secretary of the Trade,
Technology, and Commerce Agency, to promote and facilitate
telecommunications infrastructure development in the San
Joaquin Valley.
2)Establishes a 15-member board of directors for the CLIC.
3)Requires the CLIC to oversee the grant and loan program.
4)Authorizes the California Infrastructure and Economic
Development Bank to issue up to $100 million in revenue bonds
to finance loans under the program.
Entities eligible for loans are cities with more than 60,000
residents, public education institutions, and nonprofit
organizations with expertise, as specified.
5)Appropriates $27.25 million from the General Fund for the
grants, which would be allocated to the CLIC in equal amounts
AB 1391
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over the next five fiscal years ($5.45 million per year).
Entities eligible for grants are cities with less than 60,000
residents and counties servicing unincorporated communities
with less than 40,000 residents, as well as non-profit
organizations with expertise and public education
institutions.
6)Requires a 50 percent local match against grant funds, or a 10
percent match for projects serving low-income areas, as
specified.
7)Makes up to $1 million of the annual grant allocation
available for operating costs of the CLIC.
8)Sunsets the above program on January 1, 2007.
FISCAL EFFECT
1)Appropriates $27.25 million General Fund for the next five
fiscal years.
2)On-going special fund costs of about $300,000 for the
infrastructure bank to administer the loan program.
[Communications Leadership and Information Center Account,
within the California Infrastructure Bank Fund]
COMMENTS
1)Purpose . 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...".
2)Related Legislation . AB 1725 (Jobs, Economic Development, and
the Economy Committee) establishes a regional technology
alliance in the Central Valley.
AB 1391
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Analysis Prepared by : Chuck Nicol / APPR. / (916)319-2081