BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 909
                                                                  Page  1

          Date of Hearing:   September 8, 2005

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Lloyd E. Levine, Chair
                   SB 909 (Escutia) - As Amended:  August 18, 2005
                      AS PROPOSED TO BE AMENDED BY RN 05 20616

           SENATE VOTE  :   Senate vote not relevant.
           
          SUBJECT  :   Broadband access.

           SUMMARY  :   Creates the California Broadband Access Council which  
          will develop a broadband access strategy to promote the  
          ubiquitous use of high-speed internet communications and create  
          a nonprofit entity to implement the strategy.  Specifically,  
           this bill  :   

          1)Creates the California Broadband Access Council (CBAC) which  
            consists of 15 members appointed as follows:

               a)     Eleven members appointed by the Governor.
               b)     Two members appointed by the Speaker of the  
                 Assembly.
               c)     Two members appointed by the Senate Committee on  
                 Rules. 

          2)Provides that the members of the CBAC shall serve without  
            compensation but may receive reasonable per diem.

          3)Provides that the CBAC shall not receive any funds through an  
            appropriation in the annual Budget Act for any purpose. 

          4)Requires the CBAC to develop a broadband access strategy to  
            promote the ubiquitous use of high-speed internet  
            communications by all Californians. The plan shall recognize  
            the need for access to computer software and training; the  
            need to encourage access to low-income, non-English speaking,  
            rural, and disabled communities; and the need for technology  
            to help meet the state's goals of economic development, health  
            care and education.

          5)Requires the CBAC to establish a nonprofit entity to implement  
            a grant program to fund projects consistent with the broadband  
            access strategy.









                                                                  SB 909
                                                                  Page  2

          6)Provides that the nonprofit entity shall be self-sustaining  
            and may solicit and receive funds from any source, including  
            public and private funds. 

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   According to the author, the purpose of this bill is  
          to help bridge the digital divide in California and promote the  
          development of high speed communications to improve the delivery  
          of education, health care, workforce training and government  
          services. 

          The concept is to create the CBAC that would develop a statewide  
          plan on how to assure universal access to high speed  
          communications and access to the software and education training  
          that is needed to make effective use of high speed  
          communications. The CBAC would then create a nonprofit entity  
          that would implement the plan. The author believes that the  
          nonprofit will be funded through private grants from technology  
          companies and community foundations that have an interest in  
          promoting statewide development of high speed communications. 

           Make up of the CBAC  : The CBAC is composed of 15 members each of  
          whom must represent a specified community or have a specified  
          area of expertise.  The bill also provides that 11 of the  
          members be appointed by the Governor, 2 of the members are  
          appointed by the Speaker, and 2 of the members are appointed by  
          the Senate Rules Committee.  This make up gives the Governor  
          control of over 70% of the CBAC members.   The committee may want  
          to consider whether  giving the Governor such strong functional  
          control of the CBAC will assure that the intent of the  
          Legislature in creating CBAC is carried out  . 


           Yet another Commission and plan:  Recently the California Public  
          Utilities Commission (PUC) issued the "Broadband Report" which  
          looked at the status of broadband deployment in California and  
          made recommendations on how to better promote the development of  
          high speed internet access in California.  Privately funded  
          groups like Technet, and the Bay Area Forum have, over the  
          years, issued reports on broadband deployment.  As recently as  
          this week the ZeroDivide Fellowship policy group issues a  
          roadmap of recommendations on how to foster broadband deployment  
          in California. This bill appears to require one more study on  
          top of the reports already conducted.  Additionally, there are a  








                                                                  SB 909
                                                                  Page  3

          number of nonprofit organizations in California that already  
          work toward bridging the digital divide.   This committee may  
          wish to consider why another, state created, nonprofit is need  
          to help foster ubiquitous broadband deployment  . 

           Is this really only private money  :  The author's staff has  
          indicated that the intent of the bill is that neither the CBAC  
          nor the nonprofit be funded through state funds.  The bill  
          specifically provides that the CBAC shall not receive an  
          appropriation in the annual budget act. However, the bill does  
          not contain the same limitation on the nonprofit entity and  
          instead provides that the nonprofit may receive public funds.  To  
          assure that the intent of the bill is consistent, the committee  
          and the author may wish to consider amending the bill to provide  
          that the nonprofit entity also may not receive funds out of the  
          state budget  .

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          AeA
          Bay Area Video Coalition
          California Community Technology Policy Group
          California Manufacturing and Technology Association
          Google
          Technet
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083