State Legislative - Week of June 25, 2010

Although the legislative Conference Committee on the state budget met this week, they made little progress in addressing the budget deficit. The budget conference committee does not plan on meeting this weekend.
 

The Senate Democrats released a multi-year budget proposal that would shift approximately $3-$4 billion worth of public safety, human services, and health investments to counties to administer along with a revenue stream that would increase the existing tax burden on regular Californians.  A key component of this plan is a two-year delay of the recently adopted corporate tax credits and changes in apportioning income for multistate businesses (elective singles sales factor).  CCTA is attempting to clarify whether this proposal would also delay the elimination of the cost-of-performance.

 

 

Creation of the California Broadband Council.  Senate Bill 1462 would create the California Broadband Council.  According to the Author, Senator Alex Padilla, the intent of this bill is to maximize California’s opportunities for federal funding under the National Broadband Plan, increase the coordination of state resources for broadband networks, and ensure the 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 council would include representatives from government agencies, a member of the Senate and Assembly and the President of the California Emerging Technology Fund.  Responding to interest from the business, education, and non-profit communities, the Author amended his proposal to provide opportunities for stakeholder groups to provide input about broadband deployment and adoption at its regular public meetings, roundtables, advisory committees, or other means, as determined by the council.

 

CCTA continues to work with the Author to ensure that the representation of the council is fair and balanced.  SB 1462 will be heard in the Assembly Appropriations on Wednesday, June 30th. 

 

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, current 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.

 

Senate Bill 1040 will be heard in Assembly Appropriations on Wednesday, June 30th.  CCTA remains neutral on this bill.

 

Residential Telephone Service: Warm Lines.  Under current law, local telephone corporations are required to provide a residential telephone connection with no customer account attached access to “911” emergency service.  This law was adopted when residential telephone service was provided exclusively by incumbent wireline providers operating within their franchise service territories.  When a residential telephone subscriber selects an alternative provider, the pre-existing telephone corporation, now disconnected, occasionally shorts, triggering an unintended “911” call, known as a “phantom 911” call.

 

Senate Bill 1375 (Price) would require telephone corporations to provide “911” emergency services for at least 90 days after the disconnection of residential basic exchange services due to nonpayment.  This bill would also require the telephone corporations to inform residential subscribers about the availability of “911” service for 90 days, options to avoid disconnection of service, and other options for obtaining access to “911” service.  In addition, SB 1375 would also authorize telephone corporations to disconnect the over 2 million existing warm lines after providing a 90-day notice.

 

SB 1375 is supported by the entire telecommunications industry.  The Utilities Reform Network (TURN) and several local Public Safety Answering Services (PSAPs) are opposed to the proposal, preferring that this issue be dealt with at the California Public Utilities Commission.  The bill will be heard on Monday, June 28th, in the Assembly Utilities & Commerce Committee.

 

Split Roll Tax Bill Receives Another Chance.  Assembly Bill 2492 (Ammiano) would require a “change-of-ownership” reassessment of property taxes when a hundred percent of the ownership interest in a corporation, limited liability company, partnership, or other legal entity holding the property is sold or transferred in a single transaction or in multiple transactions occurring over a period of up to three years.

 

CCTA recently reported that AB 2492 was held in committee and appeared “dead” for the year.  However, Assembly Member Ammiano was recently granted a rule waiver, allowing the bill to again be reconsidered by the Assembly Appropriations committee in an “off the floor” committee hearing.  The bill was approved and is now eligible to be heard on the Assembly Floor next week.