BILL NUMBER: AB 1825 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 6, 2000
INTRODUCED BY Assembly Member Strom-Martin
FEBRUARY 3, 2000
An act to repeal and add repeal, add, and
repeal 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 amend,
repeal, and add Sections 270 and 280 of, and to add and repeal
Section 280.5 of, the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1825, as amended, 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
2006 , 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 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, the California Teleconnect Fund
Administrative Committee Fund to provide discounted rates
for qualifying schools, libraries, health clinics, and community
organizations and paid for in the utility rates authorized by
the commission. Existing law also provides for an
advisory boards board that advise the
commission regarding these programs this
program , 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 this fund to the specified
programs program and upon appropriation
in the annual Budget Act.
This bill would, under the Public Utilities Act, until January 1,
2005 2006 , expand each of
these programs this program
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 majority .
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 local exchange 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 needs-based
grant program funded by a portion of the California Teleconnect Fund
as set forth in Sections 280 and 280.5 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
representing a qualifying community may apply for and receive
grants to build an original telecommunications infrastructure that
will serve an area with not less than 20
families that meets the grant program's population
criteria and that currently lacks basic telecommunications
services. The task force , in conjunction with the Public
Utilities Commission, 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
276.5 280.5 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, that not more than five grants are awarded per
year, 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 2006 , and as of that date is
repealed, unless a later enacted statute that is enacted before
January 1, 2005 2006 , 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
280 and 280.5 .
(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 2006 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2005 2006 , 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 2006 .
SEC. 5. Section 276 of the Public Utilities Code is
SEC. 5. Section 280 of the Public Utilities Code is amended to
read:
280. (a) There is hereby created the California Teleconnect Fund
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program programs to
advance universal service by providing discounted rates to
qualifying schools, libraries, hospitals, health clinics, and
community organizations, consistent with Chapter 278 of the Statutes
of 1994, and to carry out the program pursuant to the commission's
direction, control, and approval . Consistent with
Chapter 278 of the Statutes of 1994, the programs provide discounted
rates to qualifying schools, libraries, hospitals, health clinics,
and community organizations, and funds for the development of a grant
program for the construction of telecommunications infrastructure as
set forth in Section 15399.48 of the Government Code. The
California Teleconnect Fund Administrative Committee shall carry out
these 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 Teleconnect Fund 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 Teleconnect Fund Administrative Committee Fund.
(c) Moneys appropriated from the California Teleconnect Fund
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,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
SEC. 6. Section 280 is added to the Public Utilities Code, to
read:
280. (a) There is hereby created the California Teleconnect Fund
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to advance universal service by providing
discounted rates to qualifying schools, libraries, hospitals, health
clinics, and community organizations, consistent with Chapter 278 of
the Statutes of 1994, and to carry out the program pursuant to the
commission's direction, control, and approval.
(b) All revenues collected by telephone corporations from 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 Teleconnect Fund 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 Teleconnect Fund Administrative Committee Fund.
(c) Moneys appropriated from the California Teleconnect Fund
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. 7. Section 280.5 is added to the Public Utilities Code, to
read:
280.5. (a) The Rural Telecommunications Infrastructure Task
Force, upon appropriation of funds from the California Teleconnect
Fund Administrative Committee Fund, not to exceed ten million dollars
($10,000,000) per year, may fund the telecommunications
infrastructure grant program established by Section 15399.48 of the
Government Code.
(b) Of the moneys appropriated pursuant to subdivision (a), one
hundred fifty thousand dollars ($150,000) shall be transferred by the
Controller 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 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 network.
(d) 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.
(e) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted statute
enacted before January 1, 2006, deletes or extends that date.
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 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 programs specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the 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 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 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 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 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, 2005, and
as of that date is repealed, unless a later enacted statute, which
becomes effective on or before January 1, 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.
SEC. 8. 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.