BILL ANALYSIS
AB 2758
Page 1
ASSEMBLY THIRD READING
AB 2758 (Berg)
As Amended February 20, 2004
Majority vote
UTILITIES AND COMMERCE 12-0 APPROPRIATIONS 21-0
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|Ayes:|Reyes, Bogh, Calderon, |Ayes:|Chu, Runner, Bates, Berg, |
| |Campbell, Canciamilla, | |Calderon, Corbett, |
| |Diaz, Jerome Horton, La | |Correa, Daucher, |
| |Malfa, Levine, | |Firebaugh, Goldberg, |
| |Ridley-Thomas, | |Haynes, Keene, Leno, |
| |Strickland, Wesson | |Nation, Negrete McLeod, |
| | | |Oropeza, Pavley, |
| | | |Ridley-Thomas, Wesson, |
| | | |Wiggins, Yee |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Extends the sunset date from 2006 to 2008 for the
Rural Telecommunication Infrastructure Grant Program,
administered by the California Public Utilities Commission
(CPUC), funded out of an existing surcharge on telephone
services, to extend telecommunications services to specified low
income communities. Specifically, this bill extends the sunset
from 2006 to 2008.
FISCAL EFFECT : Potential special fund cost of up to $10 million
in 2006 and in 2007 (California High-Cost Administrative
Committee Fund-A and Fund-B).
COMMENTS :
1)Background: AB 140 (Strom-Martin) Chapter 903, Statutes of
2001 created the Rural Telecommunication Infrastructure Grant
Program administered by CPUC with a funding level capped at
$10 million per year and specifies that only one grant per
community may be awarded and no grant my exceed the $2.5
million cap.
The program authorizes annual expenditures of up to $10
million with the money being taking from either of two state
programs which subsidize the cost of telephone service, the
California High Cost Fund A and California High Cost Fund B.
AB 2758
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These programs are funded by a surcharge on telephone bills.
The program is needs based in that median income of the
community to be served cannot exceed the top level used in the
Universal Lifeline Telephone Service Index. Grant applicants
must also seek federal resources.
The grants are awarded in two rounds before the program
sunsets in 2006. The first round is for 2003 through 2004 and
the second round is for 2004 through 2006.
2)Why does the program need an extension? According to the 2002
Supplemental Budget Report on Implementation of AB 140, the
program was slow to start as a result of the Budget crisis.
Funding for the program's first year was eliminated in March
2002, and staff resources were reallocated to other active
project areas. When program funding was included in the
proposed budget for fiscal year 2003-04 staff resumed work on
the program. Currently, program staff is conducting another
round of statewide meetings to inform interested parties of
the grant program and application process since the commission
approved its rulemaking on September 18, 2003 (D. 03-09-071).
Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083
FN: 0005596