BILL NUMBER: SB 850 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 9, 2006
AMENDED IN SENATE JANUARY 24, 2006
AMENDED IN SENATE JANUARY 5, 2006
AMENDED IN SENATE MARCH 30, 2005
INTRODUCED BY Senator Escutia
FEBRUARY 22, 2005
An act to add Section 12019.5 to the Government Code, and
to amend Section 280.5 of, and to add Section 871.9 to, the Public
Utilities Code, relating to telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
SB 850, as amended, Escutia Broadband telecommunications service.
(1) Under existing law, the State Chief Information Officer is
part of the Governor's Office, and acts as the special advisor to the
Governor on information technology issues.
This bill would require the State Chief Information Officer, on or
before January 1, 2008, to prepare and submit to the Legislature a
report that analyzes the need for broadband telecommunications
service accessible in all areas of the state and which assesses, by
area, the extent of the digital divide. The bill would require that
specified information relating to financing alternatives also be
included in the report.
(2) Under existing law, the
Public Utilities Commission has regulatory authority over public
utilities, including telephone corporations. Existing law imposes
various duties on the commission with regard to the provision of
universal telephone and telecommunications service.
Existing law requires the Director of General Services to compile
and maintain an inventory of state-owned real property, excluding
certain property, that may be available for lease to providers of
wireless telecommunications services for location of wireless
telecommunications facilities, and authorizes the director to
negotiate and enter into an agreement for the lease of certain
department-managed and state-owned real property to any provider of
wireless telecommunications services for location of its facilities,
subject to specified conditions.
Existing law creates the Digital Divide Account within the
California Teleconnect Fund Administrative Committee Fund in the
State Treasury. Existing law requires that 15% of the revenues from
fees collected from the lease of state-owned real property to the
providers of wireless telecommunication services pursuant to the
above-described provisions, except for revenues from fees collected
from a lease agreement for access to Department of Transportation
property or a lease agreement existing prior to January 1, 2004, be
deposited in the Digital Divide Account, to be available, upon
appropriation by the Legislature, to finance digital divide projects
through the Digital Divide Grant Program.
This bill would declare that the state's universal service policy
should include the concept of universal availability of broadband
service to all areas of the state, and would authorize moneys
appropriated from the Digital Divide Account to be utilized to fund
the costs incurred by the State Chief Information Officer to prepare
and submit the broadband service strategy.
This bill would make Legislative findings and declarations
relating to telecommunication services, and would state the intent of
the Legislature to enact legislation relating to encouraging fair
competition in the provision of video service, encouraging the
widespread build-out of state-of-the-art video service, providing for
a state-issued franchise as an alternative to obtaining a local
franchise, and permitting existing cable operators to transition to a
new state-issued franchise, as provided. The bill would also state
the Legislature's intent that legislation enacted to achieve those
purposes not alter local governmental control of the local right of
way with regard to the construction of telephone lines, as provided.
Vote: majority. Appropriation: no. Fiscal committee: yes
no . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares
all of the following:
(1) California telecommunications policy has encouraged the
ubiquitous availability of a wide choice of state-of-the-art services
for more than 10 years.
(2) California telecommunications policy also encourages the
removal of barriers to open and competitive markets and promotes fair
competition to encourage lower prices and more consumer choice.
(3) California and federal law require that access to cable
television service not be denied to any area because of the income of
residents in that area.
(4) California law also requires any competing cable television
provider to offer service in a sequence that does not discriminate
against lower income or minority residents.
(b) It is the intent of the Legislature to enact legislation that
does all of the following:
(1) Encourage fair competition in the provision of video service
by establishing a level playing field so that all competitors bear
similar burdens and are offered similar opportunities.
(2) Encourage the widespread build-out of state-of-the-art video
networks so that all communities, whether rich or poor, or urban or
rural, have access to broadband service and competitive video
service. Legislation enacted to achieve this purpose should apply to
all providers of video service, though the mechanism for ensuring
this outcome need not be identical for all competitors.
(3) Provide for a state-issued franchise as an alternative to
obtaining a local franchise. Under a state-issued franchise, a
telephone company should be permitted to obtain a franchise for its
entire telephone service area, pay a 5 percent franchise fee payable
directly to the local government, provide monetary payments directly
to the local government in lieu of other monetary franchise
obligations that the incumbent provider bears, carry existing public
education and government channels, and comply with existing customer
service standards.
(4) Permit existing cable operators to transition to a new
state-issued franchise.
(c) It is further the intent of the Legislature that legislation
enacted pursuant to subdivision (b) not alter local governmental
control of the local right of way with regard to the construction of
telephone lines by telephone corporations.
SECTION 1. Section 12019.5 is added to the
Government Code, to read:
12019.5. (a) Notwithstanding Section 7550.5, the State Chief
Information Officer shall prepare and submit to the Legislature, on
or before January 1, 2008, a report that analyzes making broadband
telecommunications service accessible in all areas of the state. That
report shall include all of the following:
(1) An assessment of the need for broadband telecommunications
that are accessible in all areas of the state. The report shall also
assess, by area, the extent of the digital divide.
(2) A description of the alternatives for private and public
financing of the need identified pursuant to paragraph (1). The
description shall include partnerships or cooperative arrangements of
public and private financing.
(3) An analysis of the cost-effectiveness of the financing
alternatives identified in paragraph (2).
SEC. 2. Section 280.5 of the Public Utilities
Code is amended to read:
280.5. (a) Of the revenues from fees collected pursuant to
Section 14666.8 of the Government Code after the operative date of
this section, except for revenues from fees from a lease agreement
for access to Department of Transportation property or a lease
agreement existing prior to the operative date of the section, 15
percent shall be available, upon appropriation by the Legislature,
for the purpose of addressing the state's digital divide.
(b) Revenues described in subdivision (a) shall be deposited in
the Digital Divide Account, which is hereby established in the
California Teleconnect Fund Administrative Committee Fund established
pursuant to Section 270, to be used only for digital divide pilot
projects and payment of the cost incurred to prepare and submit the
broadband service strategy incurred pursuant to Section 12019.5 of
the Government Code. Not more than 5 percent of the revenues
described in subdivision (a) may be used to pay the costs incurred in
connection with the administration of digital divide pilot projects
by the commission.
(c) (1) The Digital Divide Grant Program is hereby established
subject to the availability of funding pursuant to this section. The
commission may not implement the grant program until the commission
projects that at least five hundred thousand dollars ($500,000) will
be available in the Digital Divide Account during the calendar year
following implementation, based on money collected pursuant to
Section 14666.8 of the Government Code.
(2) The commission shall provide grants pursuant to this
subdivision on a competitive basis subject to criteria to be
established by the commission and in a way that disburses the funds
widely, including urban and rural areas. Grants shall be awarded to
community-based nonprofit organizations that are exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code for the purpose
of funding community technology programs.
(3) Recipients of grants pursuant to this subdivision shall report
to the commission annually on the effectiveness of the grant
program.
(4) The commission shall report to the Legislature and the
Governor annually on the effectiveness of the program administered
pursuant to this subdivision.
(d) For purposes of this section, "community technology programs"
means a program that is engaged in diffusing technology in local
communities and training local communities in the use of technology,
especially local communities that otherwise would have no access or
limited access to the Internet and other technologies.
(e) For purposes of this section, "digital divide projects" means
community technology programs involved in activities that include,
but are not limited to, the following:
(1) Providing open access to and opportunities for training in
technology.
(2) Developing content relevant to the interests and wants of the
local community.
(3) Preparing youth for opportunities in the new economy through
multimedia training and skills.
(4) Harnessing technology for e-government services.
SEC. 3. Section 871.9 is added to the Public
Utilities Code, to read:
871.9. (a) The Legislature finds and declares all of the
following:
(1) California has long had a policy of universal telephone
service that resulted in programs that helped individuals obtain
affordable access to basic telephone service.
(2) Broadband telecommunications service, whether provided by
cable, fiber optic line, or wirelessly, provides much greater
capability than basic telephone service.
(3) Broadband telecommunications service has been rapidly adopted,
with about 30,000,000 broadband customers nationwide.
(4) However, broadband service is not offered in many areas of
this state. About 25 percent of cities in this state do not have any
broadband access.
(5) Broadband service is the foundation for our nation's continued
technological and economic leadership.
(6) The absence of broadband is a barrier to economic development.
(7) The President of the United States has declared that the
country should have universal, affordable broadband access by 2007.
(b) The Legislature further finds and declares that this state's
universal service policy should include the concept of universal
availability of broadband service to all areas of the state.