State Legislature - Week of September 18, 2009

State Legislative Update

Regulatory Update

The CPUC released the 2009 Annual DIVCA REPORT.  Because the Report only reflects statistics from providers’ state franchises, the data in the report should not be assumed to reflect the reality of video and broadband competition in California.  Nevertheless, one interesting statistic in the report is the fact that Verizon has exceeded its two year build out requirement to build to at least 25% of households in the state franchise area. The Report is silent as to AT&T’s build out, and instead only notes that AT&T’s build out requirement is not scheduled until the third year of the state franchise. The Annual DIVCA Report is available on-line at:  ftp://ftp.cpuc.ca.gov/videofranchisetemplate/DIVCA%202009%20Annual%20Report_7%20MB.pdf

Cost of Performance Fix.  During the final hours of the 2009 Legislative Year, Senate Republicans held up twenty legislative proposals that required two-thirds votes.  Although the minority party, the Senate Republicans, attempted to negotiate compromises on several issues including amendments to February 2009 Single Sales Factor budget deal that, among other things, will repeal the Cost of Performance methodology for calculating corporate taxes, effective January 1, 2011,  it became clear by the early morning hours that Senate Democrats would not negotiate on any of the Senate Republican legislative priorities.  As a result, Senate Republicans killed several high profile profiles including bills that would have kept domestic violence shelters from closing and a new hospital fee that would have qualified the state for $2 billion in federal funds.