BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           2758 (Berg)
          
          Hearing Date:  8/04/04          Amended: 6/30/04       
          Consultant:  Lisa Matocq            Policy Vote: E, U & C  
          8-1                      
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          BILL SUMMARY: 
          
          AB 2758 extends the sunset, from January 1, 2006 to January  
          1, 2009, on the Rural Telecommunications Infrastructure  
          Grant (RTIG) Program, administered by the Public Utilities  
          Commission (PUC), for the construction of  
          telecommunications infrastructure in areas where local  
          telephone service does not currently exist.  
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                          Fiscal Impact (in thousands)

           Major Provisions                    2004-05             2005-06   
                      2006-07            Fund

          RTIG Program                --                 Up to  
          $10,000 annually           Special*
          PUC administration              --                 Unknown,  
          potentially $200     Special*
                                              annually      

          *California High-Cost Administrative Committee Fund-A  
          and/or Fund-B.
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          STAFF COMMENTS:  This bill meets the criteria for referral  
          to the Suspense File. 

          AB 140 (Strom-Martin, Ch. 903, St. of 2001) established the  
          RTIG Program.  Current law, until January 1, 2006,  
          authorizes the expenditure of up to $10 million annually  
          from the California High-Cost Administrative Committee  
          Fund-A and/or Fund-B for this program.  The revenues in  
          Fund-A and Fund-B are derived from a surcharge imposed on  
          telephone bills. 











          This bill extends the sunset on the grant program for three  
          years. 

          The bill is contingent upon enactment of SB 1276 (Bowen),  
          pending in Assembly Appropriations Committee, which extends  
          the sunset, from January 1, 2005 to January 1, 2009, on the  
          California High-Cost Fund-A and Fund-B programs, and makes  
          related changes.  These programs authorize the surcharge on  
          telephone bills, and the allocation of subsidy payments to  
          telephone companies in order offset high service costs in  
          mostly rural areas.