State Legislative - Week of February 19, 2010

 

 

Senate Hearing on Availability of Broadband Services and DIVCA.  The Senate Energy, Utilities & Communications Committee, chaired by Senator Alex Padilla (D-Pacoima) held an informational hearing on the availability of broadband services in California and the implementation of the Digital Infrastructure Video Competition Act of 2006 (DIVCA).”

 

In his opening remarks, Senator Padilla noted that the deployment of broadband services is a critical element in our daily lives and modern economy, therefore, access and affordability to broadband services is essential. The first half of the committee agenda focused on status of broadband deployment statewide, the types of adoption (penetration) rates among Californians, the level of investments made by broadband service providers, and information on industry workforce. The second half of the hearing focused on implementation of DIVCA. Chairman Padilla stated that the proper implementation of DIVCA has a key role in broadband deployment and customer choice.

 

The California Public Utilities Commission (CPUC) noted that the residential wireline broadband penetration rate for 2008 was 62 percent. Representatives from CCTA (Carolyn McIntyre), AT&T, and Verizon made brief presentations on their significant investments in funding broadband infrastructure. The CPUC also reported on broadband projects approved and funded by either the California Advanced Services Fund (CASF) or the California Teleconnect Fund (CTF). The CPUC Division of Ratepayer Advocates was critical of how ratepayer funded broadband projects were selected with little oversight. And the California Community Technology Policy Group (non-profit) testified that the state needs to have stronger DIVCA oversight to prevent discriminatory infrastructure deployment.

 

The primary topic for discussion during DIVCA panel was workforce. While representatives from CCTA, AT&T and Verizon reported on services provided under state franchise agreements, representatives from the Communications Workers of America (CWA) reported that while they had been promised new job increases with DIVCA, they have only experienced significant union job losses over the last couple of years. The CPUC reported the video franchise employment percentage change from 2007 to 2008 by company:

 

AT&T                   -12%
Charter                    -4%
Comcast                   2%
Cox                          2%
Time Warner             8%
Verizon                  -13%

 

CCTA took this opportunity to highlight the undisputed fact that even in this most recent economic recession; the California Cable Industry has maintained its significant investment in infrastructure. 

 

The hearing ended with no action or follow-up requirement. However, Chairman Padilla did note that he continues to be interested in universal access for broadband services.

 

Budget Update.  The Senate approved $5 billion worth of budget actions on the Senate Floor this week to help reduce the current $19.9 billion budget deficit (ABx8 8). Specifically, the budget package expands the sales tax nexus for out-of-state retailers (“Amazon Tax” or internet tax); suspends the professional licenses of delinquent California taxpayers; requires financial institutions to identify delinquent California taxpayers and report them to the state Franchise Tax Board; and expands the definition of “abusive tax avoidance transactions,” increases the penalties on amended returns and prevents judicial review.

 

The Assembly will most likely take up the budget items next Monday.

 

California Legislative Deadline for Bill Introduction. Today is the last day for the California Legislature to introduce legislation.  CCTA will continue to monitor bill introductions throughout the weekend and into next week as they become available in print.