BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Kevin Murray, Chairman

                                           850 (Escutia)
          
          Hearing Date:  1/19/06          Amended: 1/5/06
          Consultant:  John Decker        Policy Vote: EU&C, 8-2
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          BILL SUMMARY:   SB 850 requires the state's Chief Information  
          Officer to develop a strategy for making broadband service  
          accessible in all areas of the state. 
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                            Fiscal Impact (in thousands)

           Major Provisions         2006-07      2007-08       2008-09     Fund
           Develop strategy       $200                             Special*

          *California Teleconnect Fund Administrative Committee Fund

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          STAFF COMMENTS:  The bill meets the criteria for referral to the  
          Suspense File.
          
          The bill requires the Administration to develop a strategy for  
          making broadband accessible to all parts of the state.  In  
          particular, the strategy must address ways to encourage  
          privately-financed infrastructure.  To the extent private  
          financing will not be available, the strategy is to include ways  
          to "encourage" public and public/private financing.

          The bill finances the cost of the bill, at least $200,000 from  
          the Teleconnect Administrative Committee Fund.  This fund was  
          created last  year.  This fund derives its revenues from a  
          statutory earmark that allocates 15 percent of all revenue from  
          leases on state property to wireless communications providers.   
          Currently, all revenue in the fund must be used for pilot  
          wireless projects.

          Staff Note:  The bill appears to be interested in developing a  
          cost-effective approach to extending broadband communications  
          statewide.   Staff recommend that the report requirement specify  
          an analysis of the state's broadband needs, the costs for  










          securing the statewide network, and alternatives for financing  
          the network.