BILL NUMBER: AB 2758 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Berg
FEBRUARY 20, 2004
An act to amend Section 276.5 of the Public Utilities Code,
relating to telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
AB 2758, as introduced, Berg. Telecommunications: grants to
areas not served by local exchange carriers.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations.
The commission is required until January 1, 2006, to establish a
grant program to aid in the establishment of telecommunications
service in areas not currently served by existing local exchange
carriers.
This bill would extend the grant program until January 1, 2008.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 276.5 of the Public Utilities Code is amended
to read:
276.5. (a) The commission shall establish a grant program to aid
in the establishment of telecommunications service in areas not
currently served by existing local exchange carriers. The program
shall be funded out of either the California High-Cost Administrative
Committee Fund-A or the California High-Cost Administrative
Committee Fund-B, or both, as determined by the commission, and the
funding level may not exceed ten million dollars ($10,000,000) per
year.
(b) On or after July 1, 2002, any community-based group
representing a qualifying community may apply for and receive grants
to build an original telecommunications infrastructure that can
provide basic telecommunications service that will serve an area that
meets the grant program's population criteria with consideration
given to communities with schools, hospitals, and health clinics, as
set forth in Decision 96-10-066, and that currently lacks basic
telecommunications services, as described in Decision 96-10-066 of
the commission. A community-based group representing a qualifying
community may alternatively apply for and receive a grant to
subsidize the cost of the telecommunications service itself, if the
group determines that this would be more cost-effective than
subsidizing the building of an original telecommunications
infrastructure. On or before June 30, 2002, the commission, shall
establish eligibility criteria for community-based groups to qualify
to apply for telecommunications infrastructure grants. The criteria
shall include a requirement that a local agency, as defined by
Section 50001 of the Government Code, or a town, as defined by
Section 21 of the Government Code, shall act as the community-based
group's fiscal agent for the receipt and distribution of funds.
Qualifying communities shall have a median household income no
greater than the income level used in the Universal Lifeline
Telephone Service index for a family of four. The commission shall
require that the telecommunications carrier that provides the service
has the obligation to serve the community.
(c) Grant proposals shall be submitted in accordance with
procedures prescribed by the commission and evaluated and awarded by
the commission using technology criteria developed by the
government-industry working group established by subdivision (h).
Grant proposals shall contain all of the following:
(1) A letter from a local agency or town agreeing to act as a
fiscal agent for the receipt and distribution of funds.
(2) Preliminary engineering feasibility studies conducted in
cooperation with the local service providers that include all of the
following:
(A) Topographical maps indicating the location of all existing
residences.
(B) Schematic maps of the proposed network facilities.
(C) Recommendations and justifications for the preferred
technologies.
(D) Network compatibility statements from one or more
interconnecting carriers.
(E) Cost projections for the infrastructure facilities.
(F) Cost projections for the interconnection and recurring service
provisions.
(G) Projected budget for engineering feasibility studies.
(3) Recommendations and letters of support from all of the
following:
(A) The county board of supervisors.
(B) Other affected local governments.
(C) Affected school districts.
(D) Affected emergency service providers.
(E) Affected law enforcement agencies.
(4) Letters of commitment from 75 percent of the unserved
population.
(5) A project schedule, including timeline and budget.
(6) A management plan that assures the proper utilization of grant
funds.
(7) Evidence that competing providers and competing technologies
have been considered and evaluated.
(d) Grant applicants that are rejected by the commission may be
reimbursed for the cost of their preliminary engineering feasibility
studies, including, but not limited to, any approved cost of a local
telecommunications carrier that contributes to the studies, from the
grant program.
(e) The procedures developed for awarding grants shall ensure that
the grants awarded do not exceed annual moneys available to support
the program, that not more than one grant is awarded to a qualifying
community, and that no one applicant receive more than 25 percent of
the designated program funds in a single fiscal year.
(f) In evaluating grant applications, the commission shall
consider the cost effectiveness of the application, the number of
people served, the level of local support, the ability of the
community served to pay for the services delivered, and the effect on
public health and safety.
(g) The commission shall establish a government-industry working
group to develop the technical criteria to be used in evaluating
grant awards. The working group shall be composed of, but not
limited to, the following:
(1) Representatives of the commission.
(2) Representatives of the incumbent local exchange carrier
industry.
(3) Representatives of the competitive local exchange carrier
industry.
(4) Representatives of the wireless carrier industry.
(h) Grant applicants shall seek to secure federal sources of
funding in conjunction with local subsidies for the construction of
telecommunications infrastructure.
(i) This section shall remain in effect only until January 1,
2006 2008 , and as of that date is
repealed, unless a later enacted statute enacted before January 1,
2006 2008 , deletes or extends that
date.