BILL NUMBER: AB 1825 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Strom-Martin
FEBRUARY 3, 2000
An act to repeal and add Article 3 (commencing with Section
15399.48) of Part 6.7 of Division 3 of Title 2 of the Government
Code, to amend Section 739.3 of, to add Sections 276.5 and 277.5 to,
and to amend, repeal, and add Sections 270, 276, 277, and 879 of, the
Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1825, as introduced, Strom-Martin. Rural telecommunications
infrastructure.
(1) Existing law establishes the California Rural Policy Task
Force within the Office of Planning and Research in the Governor's
office. The task force is composed of state officers and oversees
the mobilization and effective delivery of resources to rural
California.
This bill would, until January 1, 2005, establish the Rural
Telecommunications Infrastructure Task Force within the California
Rural Policy Task Force. The Rural Telecommunications Infrastructure
Task Force would develop resources and programs to facilitate
community efforts to deploy telecommunications infrastructure in
areas not currently served. This task force would administer a grant
program to provide community-based groups with resources to build
telecommunications infrastructure, as prescribed. The Trade and
Commerce Agency would provide administrative support, and the Public
Utilities Commission would provide technical assistance, as
prescribed.
(2) Existing law provides for a program to provide transfer
payments to telephone corporations providing local exchange services
in high-cost areas to create fair and equitable rate structures, and
a program to ensure lifeline telephone service is available to the
people of the state that are administered by the Public Utilities
Commission, and paid for in the utility rates authorized by the
commission. Existing law also provides for advisory boards that
advise the commission regarding these programs, and creates a fund
for each advisory board in the State Treasury in which funds
generated by each of these programs is deposited. Existing law
limits the expenditure of the moneys in these funds to the specified
programs and upon appropriation in the annual Budget Act.
This bill would, under the Public Utilities Act, until January 1,
2005, expand each of these programs to include funding a grant
program to build telecommunications infrastructure in rural areas, as
prescribed. Upon appropriation, half of the funding would be
derived from the interest earnings of each fund up to a specified
annual limit, as prescribed, and would be transferred to the Rural
Telecommunications Infrastructure Task Force, as prescribed. The
bill would require the commission to ensure adequate funding of the
grant program and to form a working group to develop technical
criteria for evaluating the grants. Because, under the act, a
violation of these provisions would be a crime, this bill would
impose a state-mandated local program by creating new crimes.
This bill would result in a change in state taxes for the purpose
of increasing state revenues within the meaning of Section 3 of
Article XIIIA of the California Constitution, and thus would required
for passage the approval of 2/3 of the membership of each house of
the Legislature.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 3 (commencing with Section 15399.48) of Part
6.7 of Division 3 of Title 2 of the Government Code is repealed.
SEC. 2. Article 3 (commencing with Section 15399.48) is added to
Part 6.7 of Division 3 of Title 2 of the Government Code, to read:
Article 3. Rural Telecommunications Infrastructure Task Force
15399.48. (a) The Rural Telecommunications Infrastructure Task
Force is hereby created in the California Rural Policy Task Force, to
be composed of members appointed by the California Rural Policy Task
Force.
(b) The purpose of the task force is to develop programs and
resources that facilitate community efforts to deploy
telecommunications infrastructure in areas not currently served by
existing carriers.
(c) The task force shall administer a grant program funded by
interest earnings from universal service programs as set forth in
Sections 276.5 and 277.5 of the Public Utilities Code. The Trade and
Commerce Agency shall provide administrative support for the task
force and the grant program.
(d) On or after July 1, 2001, any community-based group may apply
for and receive grants to build an original telecommunications
infrastructure that will serve an area with not less than 20 families
that currently lacks basic telecommunications services. The task
force shall establish eligibility criteria for community-based groups
to qualify to apply for telecommunications infrastructure grants.
(e) Grant proposals shall be submitted to the task force in
accordance with procedures prescribed by the task force and evaluated
and awarded by the task force using technology criteria developed by
the government-industry working group established by Section 276.5
of the Public Utilities Code.
(f) The procedures developed for awarding grants shall ensure that
the grants awarded do not exceed annual moneys available to support
the program, and that no one applicant receive more than 25 percent
of amounts transferred to the task force in a single fiscal year.
(g) This chapter shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2005, deletes or extends that
date.
SEC. 3. Section 270 of the Public Utilities Code is amended to
read:
270. (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.
(b) Moneys in the funds may only be expended pursuant to this
chapter and upon appropriation in the annual Budget Act.
(c) Moneys in each fund may not be appropriated, or in any other
manner transferred or otherwise diverted, to any other fund or entity
, except as provided for in Sections 276.5 and 277.5 .
(d) Notwithstanding Section 7550.5 of the Government Code, on or
before July 1, 2000, the Public Utilities Commission, in consultation
with the Department of Finance, shall report to the Governor and the
Legislature regarding a transition plan for programs associated with
funds to be established within the State Treasury, as specified in
subdivision (a). The transition plan report shall include
information regarding the annual revenue to be deposited in, and the
annual estimated expenditure for, each fund specified in subdivision
(a). Advisory committees created by Sections 275, 276, 277, 278,
279, and 280 shall provide information and input to the commission in
development of the specified transition plan.
(e) This section shall remain in effect only until January 1, 2005,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2005, deletes or extends that date.
SEC. 4. Section 270 is added to the Public Utilities Code, to
read:
270. (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.
(b) Moneys in the funds may only be expended pursuant to this
chapter and upon appropriation in the annual Budget Act.
(c) Moneys in each fund may not be appropriated, or in any other
manner transferred or otherwise diverted, to any other fund or
entity.
(d) Notwithstanding Section 7550.5 of the Government Code, on or
before July 1, 2000, the Public Utilities Commission, in consultation
with the Department of Finance, shall report to the Governor and the
Legislature regarding a transition plan for programs associated with
funds to be established within the State Treasury, as specified in
subdivision (a). The transition plan report shall include
information regarding the annual revenue to be deposited in, and the
annual estimated expenditure for, each fund specified in subdivision
(a). Advisory committees created by Sections 275, 276, 277, 278,
279, and 280 shall provide information and input to the commission in
development of the specified transition plan.
(e) This section shall become operative on January 1, 2005.
SEC. 5. Section 276 of the Public Utilities Code 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, and the
development of a grant program for the construction of
telecommunications infrastructure as set forth in Section 15399.48 of
the Government Code, and to carry out the program
programs 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
programs specified in subdivision (a), including all costs of
the board and the commission associated with the administration and
oversight of the program programs and
the fund.
(d) This section shall remain in effect only until January 1, 2005,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2005, deletes or extends that date.
SEC. 6. Section 276 is added to the Public Utilities Code, 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, 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, 2005.
SEC. 7. Section 276.5 is added to the Public Utilities Code, to
read:
276.5. (a) Upon appropriation, an amount not to exceed three
million dollars ($3,000,000) per year, shall be transferred from the
California High-Cost Fund-B Administrative Committee Fund to the
Rural Telecommunications Infrastructure Task Force to fund the
telecommunications infrastructure grant program established by
Section 15399.48 of the Government Code. The transferred funds shall
be limited to the interest earned on the moneys maintained in the
fund.
(b) Of the moneys transferred pursuant to subdivision (a),
seventy-five thousand dollars ($75,000) shall be transferred to the
Trade and Commerce Agency for the administration of the grant program
established by Section 15399.48 of the Government Code.
(c) The commission shall establish a sufficient surcharge to
ensure that the moneys maintained in the fund generate adequate
interest to support the grant program established by Section 15399.48
of the Government Code.
(d) The commission shall establish a procedure that allows any
telecommunications provider subject to commission jurisdiction that
is capable of providing telephone service to the grant funded service
area an opportunity to provide the interconnection to the public
switched telephone network.
(e) 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.
(f) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2005, deletes or extends that
date.
SEC. 8. Section 277 of the Public Utilities Code is amended to
read:
277. (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 the development of a grant program for the construction of
telecommunications infrastructure as set forth in Section 15399.48 of
the Government Code, and to carry out the program
programs 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
programs 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 Universal Lifeline Telephone Service
Trust 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 Universal Lifeline
Telephone Service Trust Administrative Committee 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
programs 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 remain in effect only until January 1, 2005,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2005, deletes or extends that date.
SEC. 9. Section 277 is added to the Public Utilities Code, to
read:
277. (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. The commission shall
transfer the moneys received 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. 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 Universal Lifeline Telephone Service Trust
Administrative Committee 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.
(d) This section shall become operative on January 1, 2005.
SEC. 10. Section 277.5 is added to the Public Utilities Code, to
read:
277.5. (a) Upon appropriation, an amount not to exceed three
million dollars ($3,000,000) per year, shall be transferred from the
Universal Lifeline Telephone Service Trust Administrative Committee
Fund to the Rural Telecommunications Infrastructure Task Force to
fund the telecommunications infrastructure grant program established
by Section 15399.48 of the Government Code.
(b) Of the moneys transferred pursuant to subdivision (a),
seventy-five thousand dollars ($75,000) shall be transferred to the
Trade and Commerce Agency for the administration of the grant program
established by Section 15399.48 of the Government Code.
(c) The commission shall establish a sufficient surcharge to
ensure that the moneys maintained in the fund generate adequate
interest to support the grant program established by Section 15399.48
of the Government Code.
(d) The provisions of subdivisions (d) and (e) of Section 376.5
are also applicable to this section.
(e) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2005, deletes or extends that
date.
SEC. 11. Section 739.3 of the Public Utilities Code is amended to
read:
739.3. (a) The commission shall develop, implement, and maintain
a suitable program to establish a fair and equitable local rate
structure aided by transfer payments to small independent telephone
corporations serving rural and small metropolitan areas. 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.
(b) For purposes of this section, small independent telephone
corporations means those independent telephone corporations serving
rural areas, as determined by the commission.
(c) The commission shall develop, implement, and maintain a
suitable, competitively neutral, and broadbased
broad-based program to establish a fair and equitable
local rate support structure aided by transfer payments to telephone
corporations serving areas where the cost of providing services
exceeds rates charged by providers, as determined by the commission.
The commission shall develop and implement the program on or before
October 1, 1996. 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. The commission shall structure
the program required by this subdivision so that the amount of each
transfer payment reasonably equals the value of the benefits of
universal service to the transferor entity and its subscribers.
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 transferring entities in structuring the
program.
(d) Not later than December 15, 1996, the commission shall report
to the Governor, the Joint Legislative Budget Committee, and the
fiscal committees of the Senate and the Assembly regarding the
results of the commission's universal telephone service proceeding
and recommended program. The Legislature may, at its discretion,
assess whether any identified problems in the universal telephone
service program are issues that warrant modifications to this chapter
during the 1997-98 Regular Session.
(e) Not later than December 1, 1999, the commission shall prepare
a report to the Governor, the Joint Legislative Budget Committee, and
the fiscal committees of the Senate and the Assembly regarding the
status of the universal telephone service fund and program. The
report shall consider all of the following:
(1) The effectiveness of the universal service funding mechanism
in establishing equitable and nondiscriminatory contributions by all
telecommunications providers to support the preservation and
advancement of universal service.
(2) The extent to which the current universal telephone service
program provides the continued availability of current
telecommunications and information services on a competitively
neutral basis, while providing adequate flexibility for provision of
new services and network capabilities as technology advances.
(3) The success of the universal telephone service program in
ensuring universal access, in rural and high cost areas, to services
that are reasonably comparable, both in content and cost, to those
services provided in urban areas.
(f) The commission shall investigate subsidy reduction, or
elimination of subsidies in service areas with demonstrated
competition, and report on service area auctions for high cost areas
as part of the commission's universal telephone service program
report required in accordance with subdivision (e).
(g) Not later than February 1, 2000, the Legislative Analyst shall
conduct a review of the state's universal telephone service program,
including subsequent modifications as appropriate, and report to the
Governor and the Legislature as part of the Legislative Analyst's
analysis of the Budget Bill to be issued in February 2000. In
evaluating the program, the Legislative Analyst shall consider all of
the following:
(1) The findings of the report required by subdivision (e).
(2) An assessment of whether any identified problems are issues
that affect the continued implementation of this chapter or issues
that warrant revisions of statutes or regulations.
(h) The commission shall participate in and authorize rates
for the development and implementation of a grant program for the
construction of telecommunications infrastructure as set forth in
Sections 276 and 276.5 and Section 15399.48 of the Government Code.
(i) This section shall remain in effect until January 1,
2001 2005 , and as of that date is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2001 2005 ,
deletes or extends that date.
SEC. 12. Section 879 of the Public Utilities Code is amended to
read:
879. (a) The commission shall, at least annually, initiate a
proceeding to set rates for lifeline telephone service. All
telephone corporations providing lifeline telephone service shall
annually file, on a date set by the commission, proposed lifeline
telephone service rates and a statement of projected revenue needs to
meet the funding requirements to provide lifeline telephone service
to qualified subscribers, together with proposed funding methods to
provide the necessary funding. These funding methods shall include
identification of those services whose rates shall be adjusted to
provide the necessary funding. The commission shall participate
in and authorize rates for the development and implementation of a
grant program for the construction of telecommunications
infrastructure as set forth in Sections 277 and 277.5 and Section
15399.48 of the Government Code.
(b) The commission shall commence a proceeding within 30 days
after the date set for the filings required in subdivision (a),
giving interested parties an opportunity to comment on the proposed
rates and funding requirements and the proposed funding methods. The
commission may change the rates, funding requirements, and funding
methods proposed by the telephone corporations in any manner
necessary, including reasonably spreading the funding among the
services offered by the telephone corporations, to meet the public
interest. Within 60 days of the annual filing, the commission shall
issue an order setting lifeline telephone service rates and funding
methods for each telephone corporation making a filing as required in
subdivision (a). The commission may establish a lifeline service
pool composed of the rate adjustments and surcharges imposed by the
commission pursuant to this section for the purpose of funding
lifeline telephone service.
(c) Any order issued by the commission pursuant to this section
shall require telephone corporations providing lifeline telephone
service to apply the funding requirement in the form of a surcharge
to service rates which may be separately identified on the bills of
customers using those services. The commission shall not allow any
surcharge under this section on the rates charged by those telephone
corporations for lifeline telephone service.
(d) The commission shall permit telephone corporations operating
between service areas to adjust the rates of any service which may be
affected by any surcharge imposed by this section.
(e) This section shall remain in effect only until January 1, 2005,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2005, deletes or extends that date.
SEC. 13. Section 879 is added to the Public Utilities Code, to
read:
879. (a) The commission shall, at least annually, initiate a
proceeding to set rates for lifeline telephone service. All
telephone corporations providing lifeline telephone service shall
annually file, on a date set by the commission, proposed lifeline
telephone service rates and a statement of projected revenue needs to
meet the funding requirements to provide lifeline telephone service
to qualified subscribers, together with proposed funding methods to
provide the necessary funding. These funding methods shall include
identification of those services whose rates shall be adjusted to
provide the necessary funding.
(b) The commission shall commence a proceeding within 30 days
after the date set for the filings required in subdivision (a),
giving interested parties an opportunity to comment on the proposed
rates and funding requirements and the proposed funding methods. The
commission may change the rates, funding requirements, and funding
methods proposed by the telephone corporations in any manner
necessary, including reasonably spreading the funding among the
services offered by the telephone corporations, to meet the public
interest. Within 60 days of the annual filing, the commission shall
issue an order setting lifeline telephone service rates and funding
methods for each telephone corporation making a filing as required in
subdivision (a). The commission may establish a lifeline service
pool composed of the rate adjustments and surcharges imposed by the
commission pursuant to this section for the purpose of funding
lifeline telephone service.
(c) Any order issued by the commission pursuant to this section
shall require telephone corporations providing lifeline telephone
service to apply the funding requirement in the form of a surcharge
to service rates which may be separately identified on the bills of
customers using those services. The commission shall not allow any
surcharge under this section on the rates charged by those telephone
corporations for lifeline telephone service.
(d) The commission shall permit telephone corporations operating
between service areas to adjust the rates of any service which may be
affected by any surcharge imposed by this section.
(e) This
section shall become operative on January 1, 2005.
SEC. 14. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.