BILL NUMBER: AB 2758 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY AUGUST 24, 2004
PASSED THE SENATE AUGUST 19, 2004
AMENDED IN SENATE JUNE 30, 2004
INTRODUCED BY Assembly Member Berg
FEBRUARY 20, 2004
An act to amend Sections 275, 276, and 276.5 of the Public
Utilities Code, relating to telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
AB 2758, 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, 2009.
The bill would make technical and conforming changes. The bill would
provide that these provisions will not be operative unless SB 1276
of the 2003-04 Regular Session is enacted, amends specified
provisions, and becomes effective on or before January 1, 2005.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 275 of the Public Utilities Code, as added by
Section 4 of Chapter 903 of the Statutes of 2001, is amended to read:
275. (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 739.3, the development of a grant program for the
construction of telecommunications infrastructure as set forth in
Section 276.5, 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. 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.
Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California High-Cost Fund-A Administrative Committee 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) This section shall become operative on January 1, 2006.
SEC. 2. Section 276 of the Public Utilities Code, as added by
Section 6 of Chapter 903 of the Statutes of 2001, is amended to read:
276. (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 739.3, the development of a
grant program for the construction of telecommunications
infrastructure as set forth in Section 276.5, 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. 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.
Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California High-Cost Fund-B Administrative Committee 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.
(d) This section shall become operative on January 1, 2006.
SEC. 3. 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,
2009, and as of that date is repealed, unless a later enacted statute
enacted before January 1, 2009, deletes or extends that date.
SEC. 4. This act shall not become operative unless Senate Bill
1276 of the 2003-04 Regular Session is enacted, amends Section 739.3
of the Public Utilities Code, and becomes effective on or before
January 1, 2005.