BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                          Senator Carole Migden, Chairwoman

                                           850 (Escutia)
          
          Hearing Date:  4/18/05          Amended: 3/30/05
          Consultant:  Lisa Matocq        Policy Vote: E, U & C 8-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   

          SB 850 (1) requires the Public Utilities Commission (PUC) to  
          determine the availability of, and degree of competition for,  
          two-way broadband service, by census tract, and report to the  
          Legislature and the State Chief Information Officer (SCIO) by  
          July 1, 2006, (2) requires the SCIO to develop a strategy for  
          making broadband telecommunications service accessible to all  
          areas of the state, and report to the Legislature by January 1,  
          2007, and (3) makes related legislative findings.  
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions               2005-06     2006-07    2007-08    Fund
                                                                   
          PUC                                 $155                  --      
                      --    Special*
                                                 
          SCIO                                                 Probably  
          $150                 --      General

          *Public Utilities' Reimbursement Account (PURA)
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.   

          Examples of broadband service include such things as DSL service  
          and cable modem technologies. 
          
          The bill contains legislative findings that, among other things,  
          declare that "the state's universal service policy should  
          include the concept of universal availability of broadband to  
          all areas of the state". As part of the strategy required to be  
          developed by the bill, the SCIO is required to determine whether  










          any state-owned or controlled facilities can be used in  
          furtherance of the state's universal service policy.   

          SB 1563 (Polanco, Ch. 674, St. of 2002) required the PUC to  
          develop a plan for encouraging widespread availability and use  
          of advanced communications infrastructure. The draft report was  
          recently released, which includes data on broadband  
          availability, and number of broadband providers, by zip code.
           
          Staff recommends an amendment on page 2, line 8, after  
          "following", insert ":"

          PURA revenues are derived from an annual fee imposed on public  
          utilities.  Therefore, any increased costs to the PUC should be  
          offset by fee revenues.  Increased costs to the SCIO to develop  
          the strategy are unknown but could be $150,000 to hire a  
          consultant.