BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1391
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1391 (Cardoza)
          As Amended May 31, 2001
          2/3 vote

           ECONOMIC DEVELOPMENT    9-0     APPROPRIATIONS      14-7        
           
           ----------------------------------------------------------------- 
          |Ayes:|Reyes, Cogdill, Ashburn,  |Ayes:|Migden, Alquist, Aroner,  |
          |     |Chan, Cohn, Correa, Diaz, |     |Cedillo, Corbett, Correa, |
          |     |Liu, Oropeza              |     |Goldberg, Papan, Pavley,  |
          |     |                          |     |Simitian, Thomson,        |
          |     |                          |     |Wesson, Wiggins, Wright   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Bates, Ashburn, Daucher,  |
          |     |                          |     |Maldonado, Robert         |
          |     |                          |     |Pacheco, Runner, Zettel   |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes 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 TTCA to administer a grant and loan program to  
            expand availability of information technologies to growers,  
            processors, distributors, community technology centers, and  
            disadvantaged and low income communities in the San Joaquin  
            Valley. 

          2)Appropriates $5,450,000 from the General Fund (GF) to be  
            distributed as grants to eligible cities of less than 60,000  
            residents, counties serving unincorporated communities of less  
            than 40,000 residents, nonprofit organizations, and public  
            education institutions in the eight-county Valley area.

          3)Requires a 50% local match contribution for grants except in  
            the case of low-income areas.  Low-income areas require 10%  
            matching cash or in-kind local contribution.

          4)Declares legislative intent to appropriate $5,450,000 from the  
            GF in each succeeding fiscal year through 2005-2006 for the  
            purpose of continuing the grant program.








                                                                  AB 1391
                                                                  Page  2


          5)Declares legislative intent to authorize the California  
            Infrastructure and Economic Development Bank to issue up to  
            $100 million in revenue bonds to finance loans to eligible  
            cities with more than 60,000 residents, public education  
            institutions, and nonprofit organizations with specified  
            expertise.  

          6)Establishes a 15-member CLIC board of directors composed of  
            the TTCA Secretary and appointees made by the Assembly  
            Speaker, the Senate Rules Committee, and the Governor.

           FISCAL EFFECT  :  According to the Appropriations Committee, the  
          program established under this measure will be funded by a  
          one-time appropriation of $5,450,000 from the GF. 



           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."


           Analysis Prepared by  :    Pedro Villegas / J., E.D. & E. / (916)  
          319-2090 


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