BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 850|
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                                 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:

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                                                                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  

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                                                                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

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