AB693 - Broadband: state oversight.

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 693 Introduced by Assembly Member Boerner February 14, 2025 An act to amend and repeal Section 11549.52 of, to amend, repeal, and add Sections 6547.7 and 11011.2 of, to add Section 8889.1 to, to add Chapter 13.1 (commencing with Section 8890) to Division 1 of Title 2 of, and to repeal Chapter 13 (commencing with Section 8885) of, the Government Code, to amend, repeal, and add Section 1720 of the Labor Code, and to amend and repeal Sections 281, 281.2, 281.6, and 912.2 of, and to amend, repeal, and add Sections 281.1 and 285 of, the Public Utilities Code, relating to communications. LEGISLATIVE COUNSEL'S DIGEST AB 693, as introduced, Boerner. Broadband: state oversight. Existing law establishes the Department of Technology, which is supervised by the Director of Technology, within the Government Operations Agency. Existing law requires the department, in consultation with the public, the Public Utilities Commission (PUC), and the California Broadband Council, by January 1, 2024, to develop a state digital equity plan that includes specified elements, including the identification of barriers to digital equity faced by covered populations in this state. This bill would create the Broadband and Digital Equity Commission with specified membership, and would, on July 1, 2027, repeal the California Broadband Council and establish the members of the council as a committee of the commission, as specified. The bill would provide that each member of the commission, excluding ex officio members, receive compensation of $100 per day, but not to exceed $400 for any commission business authorized by the commission during any month, and the necessary expenses incurred by the member in the performance of the member’s duties. The bill would establish the Department of Broadband and Digital Equity in the Government Operations Agency for the purpose of promoting ubiquitous and universal broadband deployment in unserved and underserved areas of the state and to increase broadband adoption throughout the state for the benefit of all Californians. The bill would, on and after July 1, 2027, declare the department to be the only centralized state department for broadband and digital equity activities within the state authorized to establish rules or regulations for broadband internet access service and internet service providers, as provided. The bill would require the commission to appoint the executive director of the department, who shall serve at the pleasure of the commission, as specified, and would authorize the executive director to appoint, with the approval of the commission, necessary staff, as provided. Existing law requires the PUC to develop, implement, and administer the California Advanced Services Fund to encourage deployment of high-quality advanced communications to all Californians, as specified. Existing law establishes the Broadband Loan Loss Reserve Fund in the State Treasury, and continuously appropriates moneys in the fund to the PUC to be available to fund costs related to the financing of the deployment of broadband infrastructure by a local governmental agency or nonprofit organization, as provided. Existing law requires the PUC to maintain and update a statewide, publicly accessible, and interactive map showing the accessibility of broadband service in the state. Existing law requires the Office of Broadband and Digital Literacy to oversee the acquisition and management of contracts for the development and construction of a statewide open-access middle-mile broadband network to provide an opportunity for last-mile providers, anchor institutions, and tribal entities to connect to, and interconnect with other networks and other appropriate connections to, the statewide open-access middle-mile broadband network to facilitate high-speed broadband service. Existing law requires the office to retain a third-party administrator to manage the development, acquisition, construction, maintenance, and operation of a statewide open-access middle-mile broadband network, as specified. Existing law requires the office, with the third-party administrator, to develop and construct a statewide open-access middle-mile broadband network that prioritizes last-mile connections to unserved and underserved areas and locations. Existing law requires the office and third-party administrator to work directly with last-mile project grant awardees to ensure that network segments, including prioritized stand-alone Department of Transportation construction projects, support last-mile connections, and requires the office and the third-party administrator, to the extent feasible, to minimize disruption due to excavations, as provided. This bill would delete the provisions described in the above paragraph. The bill would, on and after July 1, 2027, require the department to assume all administrative functions of the California Advanced Services Fund and the Broadband Loan Loss Reserve Fund, and require the department to administer and maintain the interactive map showing the accessibility of broadband service in the state and the statewide open-access middle-mile broadband network, as specified. The bill would authorize the department to perform work, at the request of the commission, that the commission deems necessary to carry out its duties and responsibilities, but requires the commission to consider the expertise and resources available to the department, and specifies that the commission is not prohibited from using the services of other public or private entities. The bill would require the commission to advise and assist the department, the agency, and the Legislature in formulating and evaluating state policies and plans for broadband and digital equity programs in the state, and would authorize the commission to participate in relevant federal government rulemakings to advocate on behalf of the department and the state’s interests. The bill would require the department to report to the Legislature by July 1, 2028, and at least annually thereafter, on the activities of the department and actions taken by the commission, and would require the report to include, among other things, the number of unserved and underserved households in the state, and progress toward increasing connectivity. The bill would require the department to establish a process to enable California residents, consumer advocates, and local governments to make complaints regarding any activity that may result in digital discrimination of access. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following: (a) California is one of the only states in the nation without a dedicated state agency or department to undertake and implement broadband programs within the state. (b) Under the current administrative structure for broadband programs, essential duties are split between the Public Utilities Commission and the Department of Technology, which has created issues with interagency coordination and stakeholder engagement and has caused delays that have made the goal of universal and ubiquitous broadband service difficult to attain. (c) While the Public Utilities Commission staff have extensive experience regulating monopoly industries, telephone service, and administering broadband grant programs, the commission is not the most appropriate agency to continue this work into the future for various reasons, including: (1) The commission’s resources are already spread thin tackling existential threats such as climate change, and other high-stakes issues such as the reliability of the electrical grid, utility wildfire safety, and rising electricity rates for California consumers. (2) Almost all of the commissioners appointed to the commission in recent years have had little experience working on telecommunications or broadband policy issues before being appointed to the commission. Additionally, because the composition of the commission has its basis in the California Constitution, the Legislature or the Governor cannot easily augment it with additional commissioners. (3) As an independent constitutional agency, the commission’s commissioners are not directly accountable to the Governor or the Legislature. For example, at a recent hearing of the Assembly Budget Subcommittee No. 7 on Accountability and Oversight in which the commission was invited to participate, no commissioners decided to make themselves available to testify about the commission’s progress to implement billions of dollars of broadband funding that was appropriated by the Legislature. (4) The commission’s convoluted and obscure public rulemaking process is a burden for interested stakeholders to participate, especially for grassroots organizations, local governments, and tribes. The commission’s procedures and requirements lead to lower levels of public engagement in rulemakings and prevent interested stakeholders from having a meaningful seat at the table with decisionmakers. (d) The California Constitution supports, and there is recent precedent for, divesting the commission of specific responsibilities over consumer services and functions that are not explicitly referenced in the Constitution, such as broadband internet access service. (e) Historically, the Department of Technology has not been a public-facing agency with regular public engagement responsibilities and duties. While the department has made progress toward more effective public engagement, the department’s mission is still fundamentally about statewide information technology strategic planning, project delivery, procurement, policy and standards, and enterprise architecture. (f) An agency dedicated to broadband and digital equity, overseen by a commission with representatives from relevant stakeholder groups, would better serve the needs of Californians and put the state on a better path toward universal and ubiquitous broadband service. SEC. 2. Section 6547.7 of the Government Code is amended to read: 6547.7. (a) A joint powers entity created pursuant to this chapter may issue mortgage revenue bonds pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, revenue bonds for the deployment of broadband infrastructure by a public entity or nonprofit organization that are supported in whole or in part by funding granted pursuant to Section 281.2 of the Public Utilities Code, and industrial development bonds pursuant to the California Industrial Development Financing Act (Title 10 (commencing with Section 91500)). (b) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed. SEC. 3. Section 6547.7 is added to the Government Code, to read: 6547.7. (a) A joint powers entity created pursuant to this chapter may issue mortgage revenue bonds pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, revenue bonds for the deployment of broadband infrastructure by a public entity or nonprofit organization that are supported in whole or in part by funding granted pursuant to Section 8890.7, and industrial development bonds pursuant to the California Industrial Development Financing Act (Title 10 (commencing with Section 91500)). (b) This section shall become operative on July 1, 2027. SEC. 4. Section 8889.1 is added to the Government Code, immediately following 8889, to read: 8889.1. This chapter shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed. SEC. 5. Chapter 13.1 (commencing with Section 8890) is added to Division 1 of Title 2 of the Government Code, to read: CHAPTER 13.1. Department of Broadband and Digital Equity 8890. For purposes of this chapter, unless the context requires otherwise, the following definitions apply: (a) “Agency” means the Government Operations Agency. (b) “Commission” means the Broadband and Digital Equity Commission. (c) “Department” means the Department of Broadband and Digital Equity. 8890.1. (a) There is hereby established the Department of Broadband and Digital Equity in the Government Operations Agency. (b) The department is established in the agency for the purpose of promoting ubiquitous and universal broadband deployment in unserved and underserved areas of the state and to increase broadband adoption throughout the state for the benefit of all Californians. (c) On and after July 1, 2027, the department is the centralized state department for broadband and digital equity activities within the state and, notwithstanding any other law, is the only state agency authorized to establish rules or regulations for broadband internet access service and internet service providers. 8890.2. On July 1, 2027, upon the California Broadband Council’s dissolution pursuant to Section 8889.1 of the Government Code, the members of the California Broadband Council shall collectively become a committee under the administration of the commission. 8890.3. (a) The commission consists of 11 voting members and 2 ex officio members as follows: (1) (A) Seven members appointed by the Governor with the advice and consent of the Senate. (B) Two members appointed by the Speaker of the Assembly and two members appointed by the Senate Committee on Rules, not subject to confirmation by the Senate. (C) A member appointed pursuant to this paragraph shall not simultaneously hold an elected public office, or serve on any local or regional public board or commission with business before the commission. (D) A member appointed pursuant to this paragraph shall hold office for a term of six years, and until their successor is appointed, except as otherwise provided in this section. (2) (A) One Member of the Senate appointed by the Senate Committee on Rules and one Member of the Assembly appointed by the Speaker of the Assembly shall be ex officio members without votes and shall participate in the activities of the commission to the extent that their participation is not incompatible with their positions as Members of the Legislature. (B) Ex officio members shall hold office for terms of four years, and until their successors are appointed. (3) Vacancies shall be filled by the appointing authority for the unexpired portion of the terms in which they occur. (b) (1) When making an appointment to the commission, the Governor shall make every effort to ensure that there is a geographic balance to the membership of the commission, including that the commission as a whole includes members from the northern and the southern areas of the state and from the urban and the rural areas of the state. (2) Of the members of the commission appointed by the Governor pursuant to subdivision (a), the appointments shall include the following: (A) One member with a background in consumer advocacy in telecommunicat [Text truncated for display. Full text available on Congress.gov.]