BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 850| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 850 Author: Escutia (D) Amended: 1/24/06 Vote: 21 SENATE ENERGY, UTIL. & COMMUNICATIONS COMM. : 8-2, 4/5/05 AYES: Escutia, Alarcon, Bowen, Cox, Dunn, Kehoe, Murray, Simitian NOES: Battin, Campbell NO VOTE RECORDED: Morrow SENATE APPROPRIATIONS COMMITTEE : 7-5, 1/19/06 AYES: Murray, Alquist, Escutia, Florez, Ortiz, Romero, Torlakson NOES: Aanestad, Ashburn, Battin, Dutton, Poochigian NO VOTE RECORDED: Alarcon SUBJECT : Broadband telecommunications service SOURCE : Author DIGEST : This bill requires the State Chief Information Officer to submit a report to the Legislature, by January 1, 2008, that analyzes the need for making broadband service accessible in all areas of the state, and makes related legislative findings. ANALYSIS : Existing law declares that it is state policy to: CONTINUED SB 850 Page 2 1. Encourage the development and deployment of new technologies and the ubiquitous availability of state-of-the-art services. 2. Assist in the bridging of the digital divide by encouraging expanded access to state-of-the-art technologies for rural, inner-city, low-income and disabled Californians. 3. Promote economic growth, job creation, and the substantial social benefits that result from the rapid implementation of advanced information and communications technologies. Existing law creates the Digital Divide Account within the California Teleconnect Fund Administrative Committee Fund. 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. This bill finds that the President of the United States has declared that the country should have universal, affordable broadband access by 2007. This bill requires the State Chief Information Officer (SCIO) to prepare and submit to the Legislature, by January 1, 2008, a report that analyzes making broadband telecommunications service accessible in all areas of the state. The report shall include an analysis of the state's broadband needs, the extent of the digital divide, a description of alternatives for financing the network, and an analysis of the cost-effectiveness of these financing alternatives. This bill declares that the state's universal service policy should include the concept of availability of broadband services to all areas of the state and authorizes money from the Digital Divide Account to be utilized to fund the costs incurred by the SCIO to prepare and submit the report. Background CONTINUED SB 850 Page 3 California has a long-standing policy of encouraging the deployment and use of advanced telecommunications services, including high-speed, or broadband, services. Examples of broadband service include DSL service as offered by SBC and Verizon, and cable modem services. SB 1563 (Polanco), Chapter 674, Statutes of 2002, required the Public Utilities Commission (PUC) to look at ways of encouraging the widespread availability of broadband infrastructure. In response the PUC has issued a draft report on broadband deployment in California. Among the recommendations are making broadband deployment and accessibility a priority, in the form of an Executive Order or statute, creating a Broadband Task Force, and integrating broadband capabilities into the way the state performs its functions. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No The bill finances the costs of the report from the Teleconnect Administrative Committee Fund. SUPPORT : (Verified 1/23/06) California Community Technology Policy Group NC:mel 1/25/06 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED