Chapter 1.5. Advisory Boards of California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 1.5.
(a) The following funds are hereby created in the State
Treasury:
(1) The California High-Cost Fund-A Administrative Committee Fund.
(2) The California High-Cost Fund-B Administrative Committee Fund.
(3) The Universal Lifeline Telephone Service Trust Administrative
Committee Fund.
(4) The Deaf and Disabled Telecommunications Program
Administrative Committee Fund.
(5) The Payphone Service Providers Committee Fund.
(6) The California Teleconnect Fund Administrative Committee Fund.
(7) The California Advanced Services Fund.
(b) Moneys in the funds are held in trust and may only be expended
pursuant to this chapter and upon appropriation in the annual Budget
Act or upon supplemental appropriation.
(c) The commission, in administering the universal service program
funds listed in subdivision (a), and in administering state
participation in federal universal service programs, is encouraged,
consistent with the state's universal service policies and goals, to
maximize the amount of federal funding to California participants in
the federal programs.
(d) Moneys in each fund shall not be appropriated, or in any other
manner transferred or otherwise diverted, to any other fund or
entity, except as provided in Sections 19325 and 19325.1 of the
Education Code.
(a) Notwithstanding any other provision of law, the
commission may authorize the trustee of the California High-Cost
Fund-B Trust to transfer to the Deaf Equipment Acquisition Fund Trust
(DEAF Trust) money sufficient to cover the costs of the programs as
specified in subdivision (a) of Section 278, including, but not
limited to, all costs specified in subdivision (c) of Section 278.
The amount of any transfer of money authorized may not exceed the
cost of operating the programs for six months. The commission shall
also establish other terms of the transfer, as it determines to be
appropriate.
(b) The commission shall reimburse the California High-Cost Fund-B
Trust for any transfer of money to the DEAF Trust authorized
pursuant to subdivision (a), with interest as determined by the
commission.
(c) A sum equivalent to the amount of money transferred to the
Deaf Equipment Acquisition Fund Trust (DEAF Trust) pursuant to
subdivision (a) is hereby appropriated from the Deaf and Disabled
Telecommunications Program Administrative Committee Fund to the
commission, for allocation to the California High-Cost Fund-B Trust,
for purposes of subdivision (b).
(d) Funds may not be transferred from the California High-Cost
Fund-B Trust to the DEAF Trust pursuant to subdivision (a) after
September 30, 2001.
(e) Commencing on October 1, 2001, and until a date not later than
June 30, 2002, reimbursements made to the California High-Cost
Fund-B Trust pursuant to subdivisions (b) and (c) shall be deposited
in a separate memorandum account within the DEAF Trust, subject to
the terms specified in subdivision (b).
(f) On July 1, 2002, any funds in the DEAF Trust deposited in the
memorandum account for purposes of reimbursing the California
High-Cost Fund-B Trust shall revert to the Controller for deposit in
the California High-Cost Fund-B Trust Committee Fund in the State
Treasury rather than the Deaf and Disabled Telecommunications Program
Administrative Committee Fund.
(g) Commencing on July 1, 2003, any funds remaining in the DEAF
Trust, exclusive of those identified in subdivision (f), shall revert
to the Deaf and Disabled Telecommunications Program Administrative
Committee Fund in the State Treasury.
For each advisory board created pursuant to this chapter all
of the following are applicable:
(a) The commission shall establish the number of, and
qualifications for, persons to serve as members of each board, and
shall appoint the members of each board. In determining the
qualifications of persons who will serve as members of each board,
the commission shall consider the purpose of the program, and shall
attempt to achieve balanced public participation, for each board. The
membership of each board shall reflect, to the extent possible, and
consistent with existing law, the ethnic and gender diversity of the
state.
(b) Each board shall determine, subject to approval by the
commission, the time, location, and number of monthly meetings for
each board.
(c) A majority of the number of members of each board constitutes
a quorum.
(d) A board cannot act at a meeting without the presence of a
quorum.
(e) The affirmative vote of a majority of those members present at
the meeting of a board is necessary in order to pass any motion,
resolution, or measure.
(f) The commission shall determine for each board whether the
board members shall receive expense reimbursement pursuant to Section
19820 of the Government Code and a per diem allowance, as specified
in Section 11564.5 of the Government Code, or as established by the
commission. Each member of a board who is not a commission or public
utility employee, or who is not otherwise compensated by an employer
for service on the board, shall be entitled to make a claim for and
to receive a per diem allowance, if authorized by the commission.
Each member of a board who is not a public utility employee, or who
is not otherwise reimbursed by an employer for expenses incurred when
serving on the board, shall be entitled to make a claim for and to
receive expense reimbursement, if authorized by the commission. The
commission shall allow all reasonable expense and per diem claims.
The payments in each instance shall be made only from the fund that
supports the activities of the board and shall be subject to the
availability of money in that fund. The claims shall be filed by the
board with the commission.
Each advisory board created pursuant to this chapter shall do
both of the following:
(a) Submit an annual budget to the commission. Within 90 calendar
days after receiving a board's annual budget, the commission shall
either accept, accept with conditions, or reject the submitted
budget.
(b) Notwithstanding Section 7550.5 of the Government Code, submit,
in accordance with procedures established by the commission, a
report that shall describe the activities of the board during the
prior reporting period. The report shall be submitted on an annual or
more frequent basis, as ordered by the commission.
The commission may on its own order, whenever it determines it
to be necessary, conduct financial audits of the revenues required
to be collected and submitted to the commission for each of the funds
specified in Section 270. The commission may on its own order,
whenever it determines it to be necessary, conduct compliance audits
on the compliance with commission orders with regard to each program
subject to this chapter. The commission shall conduct a financial and
compliance audit of program-related costs and activities at least
once every three years. The first three-year period for a financial
and compliance audit commences on July 1, 2002. The second and
subsequent three-year periods for financial audits commence three
years after the completion of the prior financial audit. The second
and subsequent three-year periods for compliance audits commence
three years after the completion of the prior compliance audit. The
commission may contract with the Bureau of State Audits or the
Department of Finance for all necessary auditing services. All costs
for audits shall be paid from the fund that supports the activities
of the board audited and shall be subject to the availability of
money in that fund.
(a) There is hereby created the California High-Cost Fund-A
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to provide for transfer payments to small
independent telephone corporations providing local exchange services
in high-cost rural and small metropolitan areas in the state to
create fair and equitable local rate structures, as provided for in
Section 275.6, and to carry out the program pursuant to the
commission's direction, control, and approval.
(b) All revenues collected through surcharges authorized by the
commission to fund the program specified in subdivision (a) shall be
submitted to the commission pursuant to a schedule established by the
commission. The commission shall transfer the moneys received to the
Controller for deposit in the California High-Cost Fund-A
Administrative Committee Fund. All interest earned by moneys in the
fund shall be deposited in the fund.
(c) Moneys appropriated from the California High-Cost Fund-A
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
(d) The Legislature finds and declares that, because maintenance
of universal public switched telephone network service throughout the
state and maintenance of public safety answering points in high-cost
areas of the state rely on appropriations from the California
High-Cost Fund-A Administrative Committee Fund, maintaining adequate
funding levels for the fund is critical to public health and safety.
(a) The commission shall exercise its regulatory authority
to maintain the California High-Cost Fund-A Administrative Committee
Fund program (CHCF-A program) to provide universal service rate
support to small independent telephone corporations in amounts
sufficient to meet the revenue requirements established by the
commission through rate-of-return regulation in furtherance of the
state's universal service commitment to the continued affordability
and widespread availability of safe, reliable, high-quality
communications services in rural areas of the state.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "Carrier of last resort" means a telephone corporation that is
required to fulfill all reasonable requests for service within its
service territory.
(2) "Rate base" means the value of a telephone corporation's plant
and equipment that is reasonably necessary to provide regulated
voice services and access to advanced services, and upon which the
telephone corporation is entitled to a fair opportunity to earn a
reasonable rate of return.
(3) "Rate design" means the mix of end user rates, high-cost
support, and other revenue sources that are targeted to provide a
fair opportunity to meet the revenue requirement of the telephone
corporation.
(4) "Rate-of-return regulation" means a regulatory structure
whereby the commission establishes a telephone corporation's revenue
requirements, and then fashions a rate design to provide the company
a fair opportunity to meet the revenue requirement.
(5) "Revenue requirement" means the amount that is necessary for a
telephone corporation to recover its reasonable expenses and tax
liabilities and earn a reasonable rate of return on its rate base.
(6) "Small independent telephone corporations" are rural incumbent
local exchange carriers subject to commission regulation.
(c) In administering the CHCF-A program the commission shall do
all of the following:
(1) Continue to set rates to be charged by the small independent
telephone corporations in accordance with Sections 451, 454, 455, and
728.
(2) Employ rate-of-return regulation to determine a small
independent telephone corporation's revenue requirement in a manner
that provides revenues and earnings sufficient to allow the telephone
corporation to deliver safe, reliable, high-quality voice
communication service and fulfill its obligations as a carrier of
last resort in its service territory, and to afford the telephone
corporation a fair opportunity to earn a reasonable return on its
investments, attract capital for investment on reasonable terms, and
ensure the financial integrity of the telephone corporation.
(3) Ensure that rates charged to customers of small independent
telephone corporations are just and reasonable and are reasonably
comparable to rates charged to customers of urban telephone
corporations.
(4) Provide universal service rate support from the California
High-Cost Fund-A Administrative Committee Fund to small independent
telephone corporations in an amount sufficient to supply the portion
of the revenue requirement that cannot reasonably be provided by the
customers of each small independent telephone corporation after
receipt of federal universal service rate support.
(5) Promote customer access to advanced services and deployment of
broadband-capable facilities in rural areas that is reasonably
comparable to that in urban areas, consistent with national
communications policy.
(6) Include all reasonable investments necessary to provide for
the delivery of high-quality voice communication services and the
deployment of broadband-capable facilities in the rate base of small
independent telephone corporations.
(7) Ensure that support is not excessive so that the burden on all
contributors to the CHCF-A program is limited.
(d) In order to participate in the CHCF-A program, a small
independent telephone corporation shall meet all of the following
requirements:
(1) Be subject to rate-of-return regulation.
(2) Be subject to the commission's regulation of telephone
corporations pursuant to this division.
(3) Be a carrier of last resort in their service territory.
(4) Qualify as a rural telephone company under federal law (47
U.S.C. Sec. 153(44)).
(e) Upon request from the commission, a small independent
telephone corporation that receives support from the CHCF-A program
shall provide information regarding revenues derived from the
provision of unregulated Internet access service by that corporation
or its affiliate within that corporation's telephone service
territory. The commission shall treat as confidential any information
provided pursuant to this subdivision.
(f) The commission shall structure the CHCF-A program so that any
charge imposed to promote the goals of universal service reasonably
equals the value of the benefits of universal service to contributing
entities and their subscribers.
(g) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
(a) There is hereby created the California High-Cost Fund-B
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to provide for transfer payments to
telephone corporations providing local exchange services in high-cost
areas in the state to create fair and equitable local rate
structures, as provided for in Section 276.5, and to carry out the
program pursuant to the commission's direction, control, and
approval.
(b) All revenues collected through surcharges authorized by the
commission to fund the program specified in subdivision (a) shall be
submitted to the commission pursuant to a schedule established by the
commission. The commission shall transfer the moneys received to the
Controller for deposit in the California High-Cost Fund-B
Administrative Committee Fund. All interest earned by moneys in the
fund shall be deposited in the fund.
(c) Moneys appropriated from the California High-Cost Fund-B
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
(a) The commission shall develop, implement, and maintain a
suitable, competitively neutral, and broad-based program to establish
a fair and equitable local rate support structure aided by universal
service rate support to telephone corporations serving areas where
the cost of providing services exceeds rates charged by providers, as
determined by the commission. The program shall be known, and may be
cited, as the California High-Cost Fund-B Administrative Committee
Fund program or CHCF-B program. The purpose of the program shall be
to promote the goals of universal telephone service and to reduce any
disparity in the rates charged by those companies. Except as
otherwise explicitly provided, this subdivision does not limit the
manner in which the commission collects and disburses funds, and does
not limit the manner in which it may include or exclude the revenue
of contributing entities in structuring the program.
(b) The commission shall structure the CHCF-B program so that any
charge imposed to promote the goals of universal service reasonably
equals the value of the benefits of universal service to contributing
entities and their subscribers.
(c) The commission shall investigate reducing the level of
universal service rate support, or elimination of universal service
rate support in service areas with demonstrated competition.
(d) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
(a) There is hereby created the Universal Lifeline Telephone
Service Trust Administrative Committee, which is an advisory board to
advise the commission regarding the development, implementation, and
administration of a program to ensure lifeline telephone service is
available to the people of the state, as provided for in Article 8
(commencing with Section 871) of Chapter 4 of Part 1 of Division 1,
and to carry out the program pursuant to the commission's direction,
control, and approval.
(b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. Commencing on October 1,
2001, and continuing thereafter, the commission shall transfer the
moneys received, and all unexpended revenues collected prior to
October 1, 2001, to the Controller for deposit in the Universal
Lifeline Telephone Service Trust Administrative Committee Fund. All
interest earned by moneys in the fund shall be deposited in the fund.
(c) Moneys appropriated from the Universal Lifeline Telephone
Service Trust Administrative Committee Fund to the commission shall
be utilized exclusively by the commission for the program specified
in subdivision (a), including all costs of the board and the
commission associated with the administration and oversight of the
program and the fund.
(a) (1) Commencing on July 1, 2003, there is hereby created
the Telecommunications Access for Deaf and Disabled Administrative
Committee, formerly the Deaf and Disabled Telecommunications Program
Administrative Committee, as an advisory board to advise the
commission regarding the development, implementation, and
administration of programs to provide specified telecommunications
services and equipment to persons in this state who are deaf or
disabled, as provided for in Sections 2881, 2881.1, and 2881.2.
(2) In addition to the membership qualifications established by
the commission pursuant to subdivision (a) of Section 271, the
commission shall establish qualifications for persons to serve as
members of the Telecommunications Access for Deaf and Disabled
Administrative Committee so that consumers of telecommunications
services for the deaf and disabled comprise not less than two-thirds
of the membership of the committee. To the extent feasible, one of
those members shall have experience in the administration of programs
similar to those provided for in Sections 2881, 2881.1, and 2881.2.
(3) As part of its advisory role, as specified in paragraph (1),
the Telecommunications Access for Deaf and Disabled Administrative
Committee shall advise the commission regarding contracts and
agreements related to the Deaf and Disabled Telecommunications
Program as specified in subdivisions (d) and (e) of Section 2881.4.
(b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. Commencing on July 1, 2003,
and continuing thereafter, the commission shall transfer the moneys
received, and all unexpended revenue collected prior to July 1, 2003,
to the Controller for deposit in the Deaf and Disabled
Telecommunications Program Administrative Committee Fund. All
interest earned by moneys in the fund shall be deposited in the fund.
Those revenues that are collected pursuant to subdivision (g) of
Section 2881 shall be accounted for separately, as required by
subdivision (b) of Section 2881.2, and deposited in the fund created
by the commission pursuant to subdivision (b) of Section 2881.2.
(c) Moneys appropriated from the Deaf and Disabled
Telecommunications Program Administrative Committee Fund to the
commission shall be utilized exclusively by the commission for the
programs specified in subdivision (a), including all costs of the
committee and the commission associated with the administration and
oversight of the programs and the fund.
(d) Commencing on July 1, 2003, staffing costs incurred by the
commission for oversight and administration of the programs described
in subdivision (a) shall be funded by moneys appropriated from the
Deaf and Disabled Telecommunications Program Administrative Committee
Fund.
(a) There is hereby created the Payphone Service Providers
Committee, which is an advisory board to advise the commission
regarding the development, implementation, and administration of
programs to educate pay phone service providers, ensure compliance
with the commission's requirements for pay phone operations, and
educate consumers on matters related to pay phones, as provided for
in commission Decision 90-06-018.
(b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. Commencing on October 1,
2001, and continuing thereafter, the commission shall transfer the
moneys received, and all unexpended revenues collected prior to
October 1, 2001, to the Controller for deposit in the Payphone
Service Providers Committee Fund. All interest earned by moneys in
the fund shall be deposited in the fund.
(c) Moneys appropriated from the Payphone Service Providers
Committee Fund to the commission shall be utilized exclusively by the
commission for the program specified in subdivision (a), including
all costs of the board and the commission associated with the
administration and oversight of the program and the fund.
(a) The commission shall develop, implement, and administer a
program to advance universal service by providing discounted rates to
qualifying schools maintaining kindergarten or any of grades 1 to
12, inclusive, community colleges, libraries, hospitals, health
clinics, and community organizations, consistent with Chapter 278 of
the Statutes of 1994.
(b) There is hereby created the California Teleconnect Fund
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to advance universal service by providing
discounted rates to qualifying schools maintaining kindergarten or
any of grades 1 to 12, inclusive, community colleges, libraries,
hospitals, health clinics, and community organizations, consistent
with Chapter 278 of the Statutes of 1994, and to carry out the
program pursuant to the commission's direction, control, and
approval.
(c) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. The commission shall transfer
the moneys received to the Controller for deposit in the California
Teleconnect Fund Administrative Committee Fund. All interest earned
by moneys in the fund shall be deposited in the fund.
(d) Moneys appropriated from the California Teleconnect Fund
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
(e) Moneys loaned from the California Teleconnect Fund
Administrative Committee Fund in the Budget Act of 2003 are subject
to Section 16320 of the Government Code. If the commission determines
a need for moneys in the California Teleconnect Fund Administrative
Committee Fund, the commission shall notify the Director of Finance
of the need, as specified in Section 16320 of the Government Code.
The commission may not increase the rates authorized by the
commission to fund the program specified in subdivision (b) while
moneys loaned from the California Teleconnect Fund Administrative
Committee Fund in the Budget Act of 2003 are outstanding unless both
of the following conditions are satisfied:
(1) The Director of Finance, after making a determination pursuant
to subdivision (b) of Section 16320 of the Government Code, does not
order repayment of all or a portion of any loan from the California
Teleconnect Fund Administrative Committee Fund within 30 days of
notification by the commission of the need for the moneys.
(2) The commission notifies the Director of Finance and the
Chairperson of the Joint Legislative Budget Committee in writing that
it intends to increase the rates authorized by the commission to
fund the program specified in subdivision (a). The notification
required pursuant to this paragraph shall be made 30 days in advance
of the intended rate increase.
(f) Subdivision (e) shall become inoperative upon full repayment
or discharge of all moneys loaned from the California Teleconnect
Fund Administrative Committee Fund in the Budget Act of 2003.
(a) Of the revenues from fees collected pursuant to Section
14666.8 of the Government Code after the operative date of this
section, except for revenues from fees from a lease agreement for
access to Department of Transportation property or a lease agreement
existing prior to the operative date of the section, 15 percent shall
be available, upon appropriation by the Legislature, for the purpose
of addressing the state's digital divide.
(b) Revenues described in subdivision (a) shall be deposited in
the Digital Divide Account, which is hereby established in the
California Teleconnect Fund Administrative Committee Fund established
pursuant to Section 270, to be used only for digital divide pilot
projects. Not more than 5 percent of the revenues described in
subdivision (a) may be used to pay the costs incurred in connection
with the administration of digital divide pilot projects by the
commission.
(c) (1) The Digital Divide Grant Program is hereby established
subject to the availability of funding pursuant to this section. The
commission may not implement the grant program until the commission
projects that at least five hundred thousand dollars ($500,000) will
be available in the Digital Divide Account during the calendar year
following implementation, based on money collected pursuant to
Section 14666.8 of the Government Code.
(2) The commission shall provide grants pursuant to this
subdivision on a competitive basis subject to criteria to be
established by the commission and in a way that disburses the funds
widely, including urban and rural areas. Grants shall be awarded to
community-based nonprofit organizations that are exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code for the purpose
of funding community technology programs.
(3) Recipients of grants pursuant to this subdivision shall report
to the commission annually on the effectiveness of the grant
program.
(d) For purposes of this section, "community technology programs"
means a program that is engaged in diffusing technology in local
communities and training local communities in the use of technology,
especially local communities that otherwise would have no access or
limited access to the Internet and other technologies.
(e) For purposes of this section, "digital divide projects" means
community technology programs involved in activities that include,
but are not limited to, the following:
(1) Providing open access to and opportunities for training in
technology.
(2) Developing content relevant to the interests and wants of the
local community.
(3) Preparing youth for opportunities in the new economy through
multimedia training and skills.
(4) Harnessing technology for e-government services.
(a) The commission shall develop, implement, and administer
the California Advanced Services Fund program to encourage deployment
of high-quality advanced communications services to all Californians
that will promote economic growth, job creation, and the substantial
social benefits of advanced information and communications
technologies, consistent with this section.
(b) (1) The goal of the program is, no later than December 31,
2015, to approve funding for infrastructure projects that will
provide broadband access to no less than 98 percent of California
households.
(2) In approving infrastructure projects, the commission shall
give priority to projects that provide last-mile broadband access to
households that are unserved by an existing facilities-based
broadband provider. The commission shall provide each applicant, and
any party challenging an application, the opportunity to demonstrate
actual levels of broadband service in the project area, which the
commission shall consider in reviewing the application.
(c) The commission shall establish the following accounts within
the fund:
(1) The Broadband Infrastructure Grant Account.
(2) The Rural and Urban Regional Broadband Consortia Grant
Account.
(3) The Broadband Infrastructure Revolving Loan Account.
(4) The Broadband Public Housing Account.
(d) (1) All moneys collected by the surcharge authorized by the
commission pursuant to Decision 07-12-054 shall be transmitted to the
commission pursuant to a schedule established by the commission. The
commission shall transfer the moneys received to the Controller for
deposit in the California Advanced Services Fund. Moneys collected on
and after January 1, 2011, shall be deposited in the following
amounts in the following accounts:
(A) One hundred ninety million dollars ($190,000,000) into the
Broadband Infrastructure Grant Account.
(B) Fifteen million dollars ($15,000,000) into the Rural and Urban
Regional Broadband Consortia Grant Account.
(C) Ten million dollars ($10,000,000) into the Broadband
Infrastructure Revolving Loan Account.
(2) All interest earned on moneys in the fund shall be deposited
in the fund.
(3) The commission shall not collect moneys, by imposing the
surcharge described in paragraph (1) for deposit in the fund, in an
amount that exceeds one hundred million dollars ($100,000,000) before
January 1, 2011. On and after January 1, 2011, the commission may
collect an additional sum not to exceed two hundred fifteen million
dollars ($215,000,000), for a sum total of moneys collected by
imposing the surcharge described in paragraph (1) not to exceed three
hundred fifteen million dollars ($315,000,000). The commission may
collect the additional sum beginning with the calendar year starting
on January 1, 2011, and continuing through the 2020 calendar year, in
an amount not to exceed twenty-five million dollars ($25,000,000)
per year, unless the commission determines that collecting a higher
amount in any year will not result in an increase in the total amount
of all surcharges collected from telephone customers that year.
(e) (1) All moneys in the California Advanced Services Fund shall
be available, upon appropriation by the Legislature, to the
commission for the program administered by the commission pursuant to
this section, including the costs incurred by the commission in
developing, implementing, and administering the program and the fund.
(2) Notwithstanding any other law and for the sole purpose of
providing matching funds pursuant to the federal American Recovery
and Reinvestment Act of 2009 (Public Law 111-5), any entity eligible
for funding pursuant to that act shall be eligible to apply to
participate in the program administered by the commission pursuant to
this section, if that entity otherwise satisfies the eligibility
requirements under that program. Nothing in this section shall impede
the ability of an incumbent local exchange carrier, as defined by
subsection (h) of Section 251 of Title 47 of the United States Code,
that is regulated under a rate of return regulatory structure, to
recover, in rate base, California infrastructure investment not
provided through federal or state grant funds for facilities that
provide broadband service and California intrastate voice service.
(3) Notwithstanding subdivision (b) of Section 270, an entity that
is not a telephone corporation shall be eligible to apply to
participate in the program administered by the commission pursuant to
this section to provide access to broadband to an unserved or
underserved household, as defined in commission Decision 12-02-015,
if the entity otherwise meets the eligibility requirements and
complies with program requirements established by the commission.
These requirements shall include all of the following:
(A) That projects under this paragraph provide last-mile broadband
access to households that are unserved by an existing
facilities-based broadband provider and only receive funding to
provide broadband access to households that are unserved or
underserved, as defined in commission Decision 12-02-015.
(B) That funding for a project providing broadband access to an
underserved household shall not be approved until after any existing
facilities-based provider has an opportunity to demonstrate to the
commission that it will, within a reasonable timeframe, upgrade
existing service. An existing facilities-based provider may, but is
not required to, apply for funding under this section to make that
upgrade.
(C) That the commission shall provide each applicant, and any
party challenging an application, the opportunity to demonstrate
actual levels of broadband service in the project area, which the
commission shall consider in reviewing the application.
(D) That a local governmental agency may be eligible for an
infrastructure grant only if the infrastructure project is for an
unserved household or business, the commission has conducted an open
application process, and no other eligible entity applied.
(E) That the commission shall establish a service list of
interested parties to be notified of California Advanced Services
Fund applications.
(f) Moneys in the Rural and Urban Regional Broadband Consortia
Grant Account shall be available for grants to eligible consortia to
fund the cost of broadband deployment activities other than the
capital cost of facilities, as specified by the commission. An
eligible consortium may include, as specified by the commission,
representatives of organizations, including, but not limited to,
local and regional government, public safety, elementary and
secondary education, health care, libraries, postsecondary education,
community-based organizations, tourism, parks and recreation,
agricultural, and business, and is not required to have as its lead
fiscal agent an entity with a certificate of public convenience and
necessity.
(g) Moneys in the Broadband Infrastructure Revolving Loan Account
shall be available to finance capital costs of broadband facilities
not funded by a grant from the Broadband Infrastructure Grant
Account. The commission shall periodically set interest rates on the
loans based on surveys of existing financial markets.
(h) (1) For purposes of this subdivision, the following terms have
the following meanings:
(A) "Publicly subsidized" means either that the housing
development receives financial assistance from the United States
Department of Housing and Urban Development pursuant to an annual
contribution contract or is financed with low-income housing tax
credits, tax-exempt mortgage revenue bonds, general obligation bonds,
or local, state, or federal loans or grants and the rents of the
occupants, who are lower income households, do not exceed those
prescribed by deed restrictions or regulatory agreements pursuant to
the terms of the financing or financial assistance.
(B) "Publicly supported community" means a publicly subsidized
multifamily housing development that is wholly owned by either of the
following:
(i) A public housing agency that has been chartered by the state,
or by any city or county in the state, and has been determined to be
an eligible public housing agency by the United States Department of
Housing and Urban Development.
(ii) An incorporated nonprofit organization as described in
Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)
(3)) that is exempt from taxation under Section 501(a) of that code
(16 U.S.C. Sec. 501(a)), and that has received public funding to
subsidize the construction or maintenance of housing occupied by
residents whose annual income qualifies as "low" or "very low" income
according to federal poverty guidelines.
(2) Notwithstanding subdivision (b) of Section 270, moneys in the
Broadband Public Housing Account shall be available for the
commission to award grants and loans pursuant to this subdivision to
an eligible publicly supported community if that entity otherwise
meets eligibility requirements and complies with program requirements
established by the commission.
(3) Not more than twenty million dollars ($20,000,000) shall be
available for grants and loans to a publicly supported community to
finance a project to connect a broadband network to that publicly
supported community. A publicly supported community may be an
eligible applicant only if the publicly supported community can
verify to the commission that the publicly supported community has
not denied a right of access to any broadband provider that is
willing to connect a broadband network to the facility for which the
grant or loan is sought.
(4) (A) Not more than five million dollars ($5,000,000) shall be
available for grants and loans to a publicly supported community to
support programs designed to increase adoption rates for broadband
services for residents of that publicly supported community. A
publicly supported community may be eligible for funding for a
broadband adoption program only if the residential units in the
facility to be served have access to broadband services or will have
access to broadband services at the time the funding for adoption is
implemented.
(B) A publicly supported community may contract with other
nonprofit or public agencies to assist in implementation of a
broadband adoption program.
(5) To the extent feasible, the commission shall approve projects
for funding from the Broadband Public Housing Account in a manner
that reflects the statewide distribution of publicly supported
communities.
(6) In reviewing a project application under this subdivision, the
commission shall consider the availability of other funding sources
for that project, any financial contribution from the broadband
service provider to the project, the availability of any other public
or private broadband adoption or deployment program, including tax
credits and other incentives, and whether the applicant has sought
funding from, or participated in, any reasonably available program.
The commission may require an applicant to provide match funding, and
shall not deny funding for a project solely because the applicant is
receiving funding from another source.
(7) (A) To provide funding for the purposes of this subdivision,
the commission shall transfer to the Broadband Public Housing Account
twenty million dollars ($20,000,000) from the Broadband
Infrastructure Grant Account and five million dollars ($5,000,000)
from the Broadband Revolving Loan Account. Any moneys in the
Broadband Public Housing Account that have not been awarded pursuant
to this subdivision by December 31, 2016, shall be transferred back
to the Broadband Infrastructure Grant Account and Broadband
Infrastructure Revolving Loan Account in proportion to the amount
transferred from the respective accounts.
(B) The commission shall transfer funds pursuant to subparagraph
(A) only if the commission is otherwise authorized to collect funds
for purposes of this section in excess of the total amount authorized
pursuant to paragraph (3) of subdivision (d).
Any revenues that are deposited in funds created pursuant to
this chapter shall not be used by the state for any purpose other
than as specified in this chapter. Notwithstanding any other
provision of law, the Controller may use the funds created pursuant
to this chapter for loans to the General Fund as provided in Sections
16310 and 16381 of the Government Code.
(a) As used in this section, "interconnected Voice over
Internet Protocol (VoIP) service" has the same meaning as in Section
9.3 of Title 47 of the Code of Federal Regulations.
(b) The Legislature finds and declares that the sole purpose of
this section is to require the commission to impose the surcharges
pursuant to this section to ensure that end-use customers of
interconnected VoIP service providers contribute to the funds
enumerated in this section, and, therefore, this section does not
indicate the intent of the Legislature with respect to any other
purpose.
(c) The commission shall require interconnected VoIP service
providers to collect and remit surcharges on their California
intrastate revenues in support of the following public purpose
program funds:
(1) California High-Cost Fund-A Administrative Committee Fund
under Section 275.
(2) California High-Cost Fund-B Administrative Committee Fund
under Section 276.
(3) Universal Lifeline Telephone Service Trust Administrative
Committee Fund under Section 277.
(4) Deaf and Disabled Telecommunications Program Administrative
Committee Fund under Section 278.
(5) California Teleconnect Fund Administrative Committee Fund
under Section 280.
(6) California Advanced Services Fund under Section 281.
(d) The authority to impose a surcharge pursuant to this section
applies only to a surcharge imposed on end-use customers for
interconnected VoIP service provided to an end-use customer's place
of primary use that is located within California. As used in this
subdivision, "place of primary use" means the street address where
the end-use customer's use of interconnected VoIP service primarily
occurs, or a reasonable proxy as determined by the interconnected
VoIP service provider, such as the customer's registered location for
911 purposes.
(e) (1) For the purposes of determining what revenues are subject
to a surcharge imposed pursuant to this section, an interconnected
VoIP service provider may use any of the following methodologies to
identify intrastate revenues:
(A) The inverse of the interstate safe harbor percentage
established by the Federal Communications Commission for
interconnected VoIP service for federal universal service
contribution purposes, as these percentages may be revised from time
to time.
(B) A traffic study specific to the interconnected VoIP service
provider allocating revenues between the federal and state
jurisdictions.
(C) Another means of accurately apportioning interconnected VoIP
service between federal and state jurisdictions.
(2) The methodology chosen pursuant to paragraph (1) shall be
consistent with the revenue allocation methodology the provider uses
to determine its federal universal service contribution obligations.
(3) It is the intent of the Legislature that a traffic study
described in subparagraph (B) of paragraph (1) is excluded from
public inspection pursuant to Public Utilities Commission General
Order 66-C, because the disclosure of these studies would place the
provider at an unfair business disadvantage.