State Legislative - Week of June 18, 2010

The legislative Conference Committee on the State budget met this week and discussed funding issues related to education, higher education, public safety, human services, and local government and revenues.  Late Thursday afternoon, June 17th, during their discussion on tax credits and income apportionment, the Conference Committee decided that it needed more information in order to have a complete conversation on corporate taxes.  The proposal before the committee is the delayed implementation of several business incentives approved as part of last year’s budget, including the elective single sales factor.  There was very little consensus on this issue among the Committee members.  Delaying the implementation of last year’s business incentives would save the state $2.1 billion.

The Conference Committee also discussed a proposal that would require Internet retailers to report to the Board of Equalization sales information regarding out-of-state purchases by California residents.  Also lacking any consensus on the issue, this budget agenda item was also put over for future discussion.  Budget Committee staff estimate the adoption of this proposal would generate roughly $10 million annually.
 

 

Creation of the California Broadband Council.  Senate Bill 1462 (Padilla) would create the California Broadband Council.  According to the Author, the intent of this bill is to maximize California’s opportunities for federal funding under the National Broadband Plan, increase coordination of state resources for broadband networks, and ensure continuation of California’s leadership in broadband deployment and adoption.  The Council would be charged with meeting no less than three times per year, with the first meeting to take place prior to March 1, 2011.

 

The membership of the council currently includes representatives from government agencies, a member of the Senate and Assembly and the President of the California Emerging Technology Fund. 

 

AB 1462 was heard in the Assembly Utilities & Commerce Committee on Monday June 14th.  CCTA testified that the association is supportive of the creation of the council but suggested that the membership either be expanded to include a representative from the cable industry or narrowed to only include governmental agencies.  Other industries suggested that the council should be expanded to include businesses in the broadband and tech business.  The Author stated that he would reconsider the makeup of the council and establishing advisory groups to ensure a more inclusive process.  SB 1462 was approved (10-3) and moves to the Assembly Appropriations Committee.

 

Telecommunications Universal Service Programs: California Advanced Services Fund (CASF).  In 2007, the California Public Utilities Commission (CPUC) created the CASF Program to help promote the deployment of broadband infrastructure in unserved areas of the state.  The program, funded by a ratepayer telephone surcharge, has a $100 million funding cap, and will sunset in 2013.  Senate Bill 1040 (Padilla) would raise the funding cap from $100 million to $225 million and would extend the CASF program indefinitely.  This bill was approved (9-3) in the Assembly Utilities & Commerce Committee on Monday, June 14th.

 

Moore Universal Telephone Services Act.  Assembly Bill 2213 (Fuentes) would allow alternative technologies, like wireless, to participate in the California Lifeline Program.  AB 2213 was approved (8-0) in the Senate Energy, Utilities and Communications Committee on Tuesday, June 15th and moves to Senate Appropriations Committee.

 

Warm Line Legislation hopes to solve “Phantom 9-1-1 Call” Problem.  Senator Price’s Senate Bill 1375 is a telecommunications industry supported bill hoping to find a solution to the problems created by aging warm lines and phantom 9-1-1 calls.  A warm line is a telephone connection for which there is no customer account, but which allows a person to make an outbound call to 9-1-1.  While this bill initially was expected to receive support from telecommunications providers, Public Safety Answering Services (PSAP’s) as well as Local Law Enforcement agencies, The Utilities Reform Network (TURN) has come out in opposition of this bill and convinced the PSAP’s and Local Law Enforcement that this issue should be addressed at the Public Utilities Commission.  This latest TURN (excuse the pun) of events now has drawn a clear line between telecommunications providers and consumer and public safety groups.  Senator Price is expected to continue moving this bill through the Assembly and it will next be heard in Assembly Utilities & Commerce on June 28, 2010.